Slide 1: 2020 Second Quarter Operations and Finance Update
2020 Second Quarter Operations and Finance Update August 6th 2020 Powered by the Sun Developing, building and operating solar power generation plants 1 www.etrion.com | TSX: ETX
Slide 2: Disclaimer
Disclaimer These materials and the information contained herein are being presented by Etrion Corporation (the “Company”). These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor sh
Slide 3: Etrion Corporation
Etrion Corporation Company Overview Financial Summary • Solar development platform focused in Japan, among the Recent Share Price (TSX/OMX: ETX) (1) (2) C$0.245 / SEK 1.62 top 5 largest energy markets in the world • 11 solar plants operational and 1 under construction with Shares Outstanding (3) 334
Slide 4: Operational Update
Operational Update 4
Slide 5: Q2-20 Highlights
Q2-20 Highlights • Etrion’s solar platform continues to deliver strong operational results without interruption as a result of COVID-19 • The company maintains its full year guidance for 2020 • The 45 MW Niigata solar project under construction: – is on schedule and budget; modules being delivered o
Slide 6: Our presence
Our presence Misawa – 9.5MW EPC: Hitachi High-Tech Shizukuishi – 24.7MW EPC: Hitachi High-Tech Niigata – 45 MW Under Construction Mito – 9.3 MW Komatsu – 13.2 MW EPC: Hitachi High-Tech EPC: Hitachi High-Tech Operating Under Construction Backlog Mie – 60MW Backlog 6 www.etrion.com | TSX: ETX
Slide 7: Mito – 9.3 MW Operational
Mito – 9.3 MW Operational MITO (MWh) Mito Utility Tepco 1400 Capacity 9.3 MW 1200 Ownership (as of now) 100% 1000 Technology Fixed-tilt Module Canadian Solar 800 Inverters Hitachi 600 Hitachi High-Tech/ EPC / O&M 400 Hitachi LTD Irradiation Yield 1,191 kWh/kWp 200 FiT: ¥40/kWh 0 Revenue Stream Term:
Slide 8: Shizukuishi – 24.7 MW Operational
Shizukuishi – 24.7 MW Operational Shizukuishi (MWh) Shizukuishi 4000 Utility Tohoku Capacity 24.7 MW 3000 Ownership (as of now) 100% 2000 Technology Fixed-tilt Module Canadian Solar 1000 Inverters Hitachi 0 Hitachi High- EPC / O&M Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Slide 9: Misawa – 9.5 MW Operational
Misawa – 9.5 MW Operational MISAWA (MWh) Misawa Utility Tohoku 1500 Capacity 9.5 MW 1000 Ownership (as of now) 100% 500 Technology Fixed-tilt 0 Module AOU Inverters Hitachi Hitachi High-Tech/ Expected Actual EPC / O&M Hitachi Systems Irradiation Yield 1,135 kWh/kWp FiT: ¥36/kWh 5000 Revenue Stream T
Slide 10: Komatsu – 13.2 MW Operational
Komatsu – 13.2 MW Operational Komatsu (MWh) Komatsu 2000 Utility Hokuriku 1500 Capacity 13.2 MW Ownership (as of now) 100% 1000 Technology Fixed-tilt 500 Module Canadian Solar 0 Inverters Hitachi Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Hitachi High-
Slide 11: Niigata
Niigata
Slide 12: Niigata – 45 MW
Niigata – 45 MW Key project metrics Ownership 100% ETX Capacity 45 MW Region / Utility Tohoku PPA Price ¥36/kWh - FiT until March 2040 Irradiation 1,050 kWh/kWp Total Capex US$ 154.2M BBB Green Project Bond, US$ Finance Structure 146.5M (JPY 15.9 billion) Debt tenor Construction period plus 16.8 yea
Slide 13: Niigata Project Timeline (Planned = Actual; 50.3% WIP)
Niigata Project Timeline (Planned = Actual; 50.3% WIP) 2019 2020 2021 MAR APR MAY JUN JUL AUG SEP --- --- --- JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Pre-Construction Land Development Mounting Structures & Modules NTP Electric cable work Foundation for facilities
Slide 14: Progress Curve (as of 30th June 2020)
Progress Curve (as of 30th June 2020） WIP On schedule & budget ➢ The WIP reached 50.3%. slightly ahead of the 50.2% forecasted ➢ Initial Modules delivery arrived on site in mid July 14 www.etrion.com | TSX: ETX
Slide 15: Sites Construction status photo (Jun 2020)
Sites Construction status photo（ Jun 2020 ） 1 3 5 4 6 1 15 www.etrion.com | TSX: ETX
Slide 16: Sites Construction status photo (Jun 2020)
Sites Construction status photo（ Jun 2020 ） 3 4 5 6 16 www.etrion.com | TSX: ETX
Slide 17: Modules Arriving on Site
Modules Arriving on Site 17 www.etrion.com | TSX: ETX
Slide 18: Business Development Update
Business Development Update 18
Slide 19: Growth Opportunity
Growth Opportunity • MIE 60 MW Project. – Etrion has a development agreement in place with local developer. Terms of agreement outlines responsibility of the parties to develop the project. Under this contract, Etrion is to take 100% ownership once project reaches ready to build status – Etrion comm
Slide 20: Financial results
Financial results 20
Slide 21: Q2-20 highlights
Q2-20 highlights Q2-20 Highlights US$ millions otherwise indicated Q2-20 Q2-19 Q2-20 Q2-19 ▪ Q2-20 production (-9%), revenue (-7.5%) and Three months Six months project-EBITDA (-4.2%) vs Q2-19 driven by lower solar irradiation compared to same Production KWh millions 20.5 22.6 33.0 34.9 period 2019
Slide 22: Performance of Japanese assets
Performance of Japanese assets Revenue from electricity sales Project-level EBITDA 10.00 8.00 9.00 7.00 15.6% increase 8.00 13% increase 6.00 1.1 7.00 1.4 5.00 1.0 US$ millions 6.00 0.9 0.9 US$ millions 1.2 1.1 1.2 4.00 5.00 3.00 5.9 4.00 0.7 0.5 0.7 7.1 5.1 0.4 0.4 6.3 0.7 2.00 4.0 4.2 4.3 3.00 5.2
Slide 23: Financial results
Financial results Etrion consolidated results Q2-20 Segment information (3M) Gain on disposal of PV Salvador US$ millions Japan Corp TOTAL positively impacted the Q2-20 Revenues 7.1 - 7.1 Corporate EBIDTA and net Operating expenses (1.1) - (1.1) results G&A expenses (0.1) (2.0) (2.0) Gain on disposa
Slide 24: Financial position
Financial position Consolidated Balance Sheet June 30, 2020 US$ millions Japan Corp TOTAL ▪ Etrion has a working capital of $46.3 Property, plant and equipment 213.7 0.0 213.7 million and a consolidated cash position Intangible assets 12.1 2.2 14.2 of $86.6 million, of which $7.6 million is Cash and
Slide 25: Cash and liquidity
Cash and liquidity Unrestricted cash reconciliation Increase 14 2.8 Decrease 4.7 Unrestricted cash 12 3.3 1.4 10.6 1.1 10 1.5 0.3 US$ millions 8 0.1 7.6 6 4 2 - 25 www.etrion.com | TSX: ETX
Slide 26: Summary
Summary 26
Slide 27: Summary
Summary • Etrion well positioned for continued growth in one of the largest solar markets in the world • Strong financial performance in all key operating metrics demonstrating excellent execution in all operational activities • Restructuring in 2019 increased net operational capacity by 22%, improv
Slide 28: Contact Information
Contact Information Christian Lacueva Marco A. Northland Martin Oravec Chief Financial Officer Chief Executive Officer Chief Investment Officer clacueva@etrion.com mnorthland@etrion.com moravec@etrion.com Etrion Corporation Rue du Commerce 4 1204 Geneva, Switzerland info@etrion.com www.etrion.com 28