Invinity Energy Systems Plc · LSE:IES
Invinity Energy Systems — Camco International — H1 2009 Earnings Presentation
21 slides from Invinity Energy Systems's earnings presentation, September 2009
Slide 1: Investor Presentation Interim Results 30 June 2009
Investor Presentation Interim Results 30 June 2009 Jeff Kenna, CEO Scott McGregor, CFO/CIO Yariv Cohen, CCO September 2009
Slide 2: Important Disclaimer
Important Disclaimer These presentation materials (the "Presentation Materials”) are being solely issued to and directed at (a) persons having professional experience in matters relating to investments and who are investment professionals as specified in Article 19(5) of the Financial Services and M
Slide 3: Contents
Contents 1. Summary 2. Industry update 3. Our business 4. Financial performance 5. Carbon 6. Investments 7. Advisory 8. Outlook Camco – A climate change and sustainable development company 2
Slide 4: Creating value in a low carbon economy
Creating value in a low carbon economy. Camco – A climate change and sustainable development company 3
Slide 5: 1. Summary
1. Summary Maturing of the carbon portfolio since 31 December 2008 Deliveries accelerating, 25% increase in issued tonnes 63% of the CER portfolio now registered ~100% increase in tonnes through first independent verification Performance of Advisory business below management expectations Net loss €1
Slide 6: 2. Industry Update - Legislative & Target Timeline
2. Industry Update - Legislative & Target Timeline Global United European United States New Australia Japan Kingdom Union Zealand Target 26-32% below 20–30% below 17% below 2005 10% below 4-14% below 25% below 1990 1990 1990 1990 1990 2020 Target 50% below 80% below 60–80% below 80% below 1990 100%
Slide 7: 3. Our Business
3. Our Business Camco remains focussed on leadership, leverage, value creation and long term clients Technical and commercial services Success fees by way of carbon share and commissions Investment management fees Focus on high value clients Returns on principal investments Time and success fees Age
Slide 8: 3. Our Business - Medium term strategy
3. Our Business Camco’s medium term strategy is to generate growth through an expanded Investments business Transition of Camco's business model Value 2009 2010 2011 2012 2013 2014 2015 Investment Advisory Carbon Camco – A climate change and sustainable development company 7
Slide 9: 4. Financial Performance – Income Statement
4. Financial Performance – Income Statement Camco’s earnings reflect our commercialisation strategy of maximising shareholder value. The business remains focussed on cash management and cost reduction 6 months to 30-Jun-09 (€m) Carbon Advisory Investments Total1 Revenue 1,789 3,498 62 5,349 Gross Pr
Slide 10: 5. Carbon Business Unit – Restructuring
5. Carbon Business Unit – Restructuring The CDM has matured with several bottlenecks being resolved. Unit undergone restructuring Internal turnaround Deep cost cuts in all regions - 39% compared to H2 2008 China & SE Asia Management changes Transition from eight regions into four regional hubs Comm’
Slide 11: 5. Carbon Business Unit – Portfolio
5. Carbon Business Unit – Portfolio The carbon portfolio is maturing with a ~100% increase in tonnes through 1st verification in YTD 2009. Stable pipeline and progress through the registration process Risk Risk Change Adjusted Adjusted % Stage 30-Jun-09 25-Sep-09 Jun-Sep Contracted 92.7 91.6 -1.3% S
Slide 12: 5. Carbon Business Unit - Portfolio
5. Carbon Business Unit - Portfolio Camco continues to grow its portfolio and to move projects through the CDM registration process 91.6 Carbon Share 36.4 remainder Basis Status Risked Tonnes1 Carbon Share Sold 3.4 Unsold2 27.3 Cash Share Sold 9.8 Carbon Unsold 7.1 Share in 30.6 VERs Sold 2.6 specie
Slide 13: 5. Carbon Business Unit – Issuance
5. Carbon Business Unit – Issuance Estimated CDM issuance over time % 91.6 35% 32% 30% 25% 22% 69.5 CERs 20% 20% 15% 11% 9% 10% 5% 3% VERs 7.7 1% 2% 14.4 0% ERUs 2006 2007 2008 2009 2010 2011 2012 2013 Ca m c o's Ca rbon P ortfolio (m tC0 2 e ) Camco – A climate change and sustainable development co
Slide 14: 5. Carbon Business Unit – Diversified Portfolio
5. Carbon Business Unit – Diversified Portfolio Camco’s portfolio is increasingly diverse with the focus of origination activities being on non-cyclical, low risk, power generation projects Breakdown of CER portfolio by technology Other Biomass Wind power 3% 6% 8% Waste heat to CMM to power power 22
Slide 15: 5. Carbon Business Unit - Regional Update
5. Carbon Business Unit - Regional Update Regional integrated approach China Healthy pipeline of new projects China & SE Asia Ongoing successful origination in the region US Comm’l Strong progress in establishing position through strategic projects and North EE/ME partners America New legislation is
Slide 16: 5. Carbon – CER Prices
5. Carbon – CER Prices Market participants have increased CER price forecasts as economic conditions have improved and regulators have flagged a favourable post-2012 policy environment Market Participants CER price forecasts for 2012 Societe Generale 18.00 Sagacarbon 12.00 Point Carbon 16.00 New Ene
Slide 17: 6. Investments Business Unit - Performance
6. Investments Business Unit - Performance Achieved first step towards establishment of an asset management business Agreement to place up to $200m into China clean tech investments Developed pipeline of investment opportunities in USA and China The Investments business is core to Camco’s strategy G
Slide 18: 7. Advisory Business Unit - Performance
7. Advisory Business Unit - Performance The Advisory business has underperformed during the first half of 2009 First half loss of €1.4m, performance below management expectations Recession in property sector continues Changes and delays in corporate spending patterns Headcount reduced from 134 staff
Slide 19: 7. Advisory Business Unit – Gross Margin
7. Advisory Business Unit – Gross Margin The business mix has shifted with substantial growth in carbon management. Cyclical areas including building and due diligence have declined in line with economic conditions Advisory Gross Margin by activity1 Project Develelopment Due Diligence Policy Plannin
Slide 20: 7. Advisory Business Unit – Performance Initiatives
7. Advisory Business Unit – Performance Initiatives The Advisory business continues to receive significant management attention with a focus on returning the business to profitability Team continues to win large contracts of strategic value and re-build order book Industrial Energy Efficiency Servic
Slide 21: 8. Outlook - 2009
8. Outlook - 2009 Camco is positioned with a strong platform and cash position for 2009 Carbon pipeline is stable and issuance is expected to Carbon increase in the 2nd half of 2009 Continue to pursue opportunities in Investments China and the US Expected to be loss making in the rest of 2009. Advis