Etrion Corp. · OTC:ETRXF
Etrion — Pareto Securities Power and Renewable Energy Conference 2018
28 slides from Etrion's conference presentation, Jan 11, 2018
Slide 1: Capitalizing on Opportunities as a Key Solar Player in Japan
Pareto Securities: Power and Renewable Energy Conference OSLO - JANUARY 11, 2018 Capitalizing on Opportunities as a Key Solar Player in Japan 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: Corporate Overview
Corporate Overview
Slide 4: Etrion - The Renewable Platform of the Lundin Group
ETRION-THE RENEWABLE PLATFORM OF THE LUNDIN GROUP THE LUNDIN GROUP WORLDWIDE OPERATIONS The information on this slide is in CAD and as of Nov 30, 2017 www.etrion.com | TSX: ETX
Slide 5: Etrion Corporation
ETRION CORPORATION COMPANY OVERVIEW FINANCIAL SUMMARY FINANCIAL SUMMARY C$0.25 / Japan focused Independent power producer (IPP) that Recent Share Price (TSX/OMX: ETX) SEK 1.6 develops, builds, owns and operates ground-based solar photovoltaic (PV) power generation plants Shares Outstanding 334.1MM
Slide 6: Key Highlights of 2017
KEY HIGHLIGHTS OF 2017 • Advanced on the construction of the 13.2 MWs Komatsu Three months Nine months project in northern Japan, reaching 75% completion. Plant Q3-17 Q3-16 Q3-17 Q3-16 on target to be operational by end of Q2-18 Electricity production (GWh) 49.2 41.7 141.6 120.0 Financial performanc
Slide 7: Greater Control of Value Chain with HHT Partnership
GREATER CONTROL OF VALUE CHAIN WITH HHT PARTNERSHIP RAW PARTS SERVICES PROJECT ASSET (MODULES, (ENGINEERING, DEVELOPMENT MATERIALS FINANCE MANAGEMENT INVERTERS) CONSTRUCTION) Manufacturing Best in Class Identify sites and Debt and Equity Optimize Polysilicon and of electronic Engineering
Slide 8: Japan Overview
JAPAN OVERVIEW
Slide 9: Japan – Country Snapshot
JAPAN – COUNTRY SNAPSHOT Moody’s A1 rating, outlook stable from all Big Three credit rating agencies Real GDP Growth vs Inflation Q3-2017 nominal GDP growth 0.6% quarterly, 2.5% annually 3 Consumer prices in 0.6% year-on-year in November of 2017 2.5 Quantitative easing – JPY 80trn/annum sinc
Slide 10: Etrion Position in Japan
ETRION POSITION IN JAPAN # Name MW Japan – Cumulative PV Market Capacity 1 Orix Corporation 520 2 SB Energy 278 70 3 Eurus Energy HD 237 60 4 Mitsui & Co. 232 5 Marubeni Corp. 202 50 GWp 6 NTT Facilities 200 40 7 Mitsubishi Corp. 136 30 8 Pacifico Energy 131 Japan Renewable 20 9 Energy 123 10 10 Ren
Slide 11: Renewable Energy Market in Japan
RENEWABLE ENERGY MARKET IN JAPAN Installed Approved Category Balance (MWp) Capacity (MWp) Capacity (MWp) PV Solar (House) 5,588 6,459 871 PV Solar 33,824 60,459 26,635 (Industrial) Wind 929 8,200 7,271 Biomass 1,000 14,612 13,612 Sources: METI, BNEF. 26.6 GW represents the total aggregated solar pro
Slide 12: Focus in Japan
FOCUS IN JAPAN MISAWA - 9.5 MW SHIZUKUISHI – 24.7 MW Partner: Hitachi High-Tech & Partner: Hitachi High-Tech Tamagawa Holdings KOMATSU – 13.2 MW MITO – 9.3 MW Partner: Hitachi High-Tech Partner: Hitachi High-Tech Operating Under Construction BACKLOG PIPELINE Backlog Pipeline 190 MW 200 MW www.etrion
Slide 13: Etrion's Partnership with Hitachi High-Tech
ETRION’S PARTNERSHIP WITH HITACHI HIGH-TECH Partnership Highlights Since 2013 Working together through the full development cycle Brings invaluable contributions when dealing with - Land owners - Utilities - Government authorities Hitachi provides - Best in class technology - Construction, o
Slide 14: Projects Description
PROJECTS DESCRIPTION
Slide 15: Operational Assets in Japan
OPERATIONAL ASSETS IN JAPAN MITO SHIZUKUISHI MISAWA Utility Tepco Utility Tohoku Utility Tohoku Capacity 9.3 MW Capacity 24.7 MW Capacity 9.5 MW Ownership 87% Ownership 87% Ownership 60% Technology Fixed-tilt Technology Fixed-tilt Technology Fixed-tilt Module Canadian Solar Canadian Module AOU Modul
Slide 16: Komatsu – 13.2 MW Under Construction
KOMATSU – 13.2 MW UNDER CONSTRUCTION November 2016 Q1-2017 Q3&Q4-2017 April 2018 June 2018 EPC contract Land preparation Completion of PV modules, Plant completion Plant delivery. signed. completed. Fencing and Inverters and substation. and commissioning. June 30 th temporary offices. 2016 2017 2018
Slide 17: Target NTP – Brownfield TK-1
45 MWs BROWNFIELD TK-1 2018 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC PPA Land Secured TARGET NTP Permits incl. Forest Development TODAY Financial Close PROJECT HIGHLIGHTS Size 45 MWp ETX share 85% Region Southern Japan Expected: NTP / COD NTP: Q4-2018 COD: Q4-2020 Revenue FIT: ¥36/kWh Develop
Slide 18: Target NTP – Greenfield TK-2
45 MWs GREENFIELD TK-2 2017 2018 2019 OCT NOV DEC JAN FEB MAR APR MAY OCT NOV DEC JAN FEB PPA (done) Land Secured TARGET NTP All Necessary Permits for Construction Acquired incl. Forest Development TODAY Financial Close PROJECT HIGHLIGHTS Size 45 MWp ETX share 100% Region Central Japan Expected: NTP
Slide 19: Target NTP – Brownfield TK-3
60 MWs BROWNFIELD TK-3 2017 2018 OCT NOV DEC JAN FEB MAR OCT NOV DEC PPA (Done) Land Secured TARGET NTP Environmental Impact Assessment Completed Forest Development TODAY Financial Close PROJECT HIGHLIGHTS Size 60 MWp ETX share 50% Region South-Central Japan Expected: NTP / COD NTP: Q4-2018 – COD: Q
Slide 20: Today – Brownfield TK-4
40 MWs BROWNFIELD TK-4 2017 2018 2019 NOV DEC JAN FEB NOV DEC JAN PPA (Done) Land Secured (Done) Environmental Impact Assessment – Under consultation TODAY PROJECT HIGHLIGHTS Size 40 MWp ETX share 100% Region Central Japan Expected: NTP / COD NTP: open. Depends on EIA Revenue FIT: ¥24/kWh Developmen
Slide 21: Financial Summary
FINANCIAL SUMMARY
Slide 22: Financial Results
FINANCIAL RESULTS Revenues and project-level EBITDA up relative to Q3-16 Etrion consolidated results 8.0 due to positive operating performance and additional production in Japan. 7.0 6.0 +106% In Q3-17 electricity production in Japan increased 350% 5.0 quarter-over-quarter as a result of the new
Slide 23: Cash Flow Statement
CASH FLOW STATEMENT Unrestricted Cash Evolution US$ million Restricted Unrestricted Total 50 6.6 December 31, 2016 18.9 42.3 61.2 7.7 45 0.8 Project level EBITDA 10.0 10.0 2.0 Project cash distributions (8.9) 7.7 (1.2) USD millions 3.1 Corporate G&A (4.9) (4.9) 1.8 1.9 Taxes paid 40 (0.3) (0.7) (1.0
Slide 24: Success in Capital Raising
SUCCESS IN CAPITAL RAISING USD 80m Equity EUR 80m Senior EUR 222m Project Bond JPY 3,560m Project Private Placement Secured Bond Issue and Loan Refinancing Finance Loan for Komatsu (Corporate) (Corporate) (Italy) project (13.2 MW) (Japan) Dec 2013 Jan 2014 Apr 2014 Jul 2014 Sep 2015 Dec 2015 Nov - D
Slide 25: Summary
SUMMARY
Slide 26: Japan Project Portfolio – Potential Growth
JAPAN PROJECT PORTFOLIO – POTENTIAL GROWTH MW 500 57 MW operational & under construction 200 447 450 390 MW backlog & pipeline 400 350 300 40 250 60 200 45 150 45 100 13.2 9.5 50 24.7 9.3 0 Mito Shizukuishi Misawa Komatsu Brownfiled 1 Greenfield 2 Brownfield 3 Brownfield 4 Early Stage Total Unde
Slide 27: Well Positioned for Growth
WELL POSITIONED FOR GROWTH • 2018 presents a unique opportunity for Etrion to be a transformative year as a solar player in Japan • Fully funded through 2018 with US$42 million in cash as of end of Q3-17 and ample access to very competitive project level debt • Strong growth potential with target to
Slide 28: Contact Information
CONTACT INFORMATION Martin Oravec, CFA Chief Investment Officer moravec@etrion.com Etrion Corporation Rue du Commerce 4 1204 Genève Switzerland Phone: +41 22 715 2090 www.etrion.com www.etrion.com | TSX: ETX
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