Etrion Corp. · OTC:ETRXF
Etrion — Q2 2019 Earnings Presentation
27 slides from Etrion's earnings presentation, Aug 7, 2019
Slide 1: Q2-19 Operations and Finance Update
Q2-19 Operations and Finance Update August 7th 2019 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: Q2-19 Highlights
etnon Q2-19 Highlights
Slide 4: Q2-19 highlights
Q2-19 highlights ▪ Commenced construction of our 45 MW Niigata project after closing a very attractive project bond 45 MW Niigata project under construction financing ▪ Very strong unrestricted cash position as a result of the collection of the Niigata development fee and anticipated land lease, inc
Slide 5: Operational Update
etnon Operational Update
Slide 6: Mito – 9.3 MW operational
Mito – 9.3 MW operational MITO comparison (MWh) Mito 1400 Utility Tepco 1200 Capacity 9.3 MW Ownership 87% 1000 Technology Fixed-tilt 800 Module Canadian Solar Inverters Hitachi 600 EPC / O&M Hitachi High-Tech 400 Irradiation Yield 1,120 kWh/kWp 200 FiT: ¥40/kWh Revenue Stream Term: 20 years 0 Produ
Slide 7: Shizukuishi – 24.7 MW operational
Shizukuishi – 24.7 MW operational Shizukuishi comparison (MWh) Shizukuishi 4500 Utility Tohoku 4000 Capacity 24.7 MW 3500 Ownership 87% Technology Fixed-tilt 3000 Module Canadian Solar 2500 Inverters Hitachi 2000 EPC / O&M Hitachi High-Tech 1500 Irradiation Yield 1,088 kWh/kWp 1000 FiT: ¥40/kWh Reve
Slide 8: Misawa – 9.5 MW operational
Misawa – 9.5 MW operational Misawa MISAWA comparison (MWh) Utility Tohoku 1600 Capacity 9.5 MW 1400 Ownership 60% 1200 Technology Fixed-tilt Module AOU 1000 Inverters Hitachi 800 EPC / O&M Hitachi High-Tech 600 Irradiation Yield 1,126 kWh/kWp 400 FiT: ¥36/kWh Revenue Stream Term: 20 years 200 Produc
Slide 9: Komatsu – 13.2 MW operational
Komatsu – 13.2 MW operational Komatsu Utility Hokuriku Komatsu comparison (MWh) 2500 Capacity 13.2 MW Ownership 85% 2000 Technology Fixed-tilt Module Canadian Solar 1500 Inverters Hitachi EPC / O&M Hitachi High-Tech 1000 Irradiation Yield 1,087 kWh/kWp 500 FiT: ¥32/kWh Revenue Stream Term: 20 years
Slide 10: Niigata
Niigata
Slide 11: 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 12: Niigata Sites Construction Progress Curve
Niigata Sites Construction Progress Curve （as of 30st June 2019） WIP On time and on budget VIG 12 www.etrion.com | TSX: ETX
Slide 13: Sites Construction status photo (June 2019)
Sites Construction status photo（June 2019） 1 5 2 4 3 1 13 www.etrion.com | TSX: ETX
Slide 14: Sites Construction status photo (June 2019)
Sites Construction status photo（June 2019） 2 3 4 5 14 www.etrion.com | TSX: ETX
Slide 15: Business Development Update
Business Development Update 15
Slide 16: Mie 60 MW Project
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 to take 100% ownership once project reaches ready to build status • Etrion commenced litigation in Q4-20
Slide 17: Growth Opportunity
Growth Opportunity • The Company continue to pursue new opportunities in Japan and remains working on different opportunities with aggregate capacity of about 200 MW • Given latest FiT changes, several projects with FiT awarded still under development are at risk of losing FiT • This situation has c
Slide 18: Other upsides
etnon Other upsides 18
Slide 19: PV Salvador divesting efforts
PV Salvador divesting efforts • Phase I concluded with strong indication of interest from a variety of different potential investors • Handful of parties selected for second round • Management remains on target to fully diversify this asset by Q4-19 • Sales process has minimum disruption on day to d
Slide 20: Update of Tremonti tax credit
Update of Tremonti tax credit • Tranche 1 – taxes (2010-2013) €6.2M share to Etrion. • Factoring options are currently being negotiated with a potential favorable outcome during late Q3 • Tranche 2 – taxes (2014-2017) €3M share to Etrion • Tranche 2 filing has been achieved for three out of the four
Slide 21: Financial results
etnon Financial results 21
Slide 22: Financial results
Financial results Etrion consolidated results Q2-19 Segment information Q2-18 Q2-19 US$ millions Japan Corp TOTAL Revenues 7.7 - 7.7 8.0 7.0 +21% Operating expenses (1.4) - (1.4) 6.0 G&A expenses (0.1) (1.0) (1.1) 5.0 Other income - 0.9 0.9 4.0 EBITDA 6.2 (0.1) 6.1 7.7 US$ millions 3.0 6.4 +27% 6.2
Slide 23: Financial position
Financial position Consolidated Balance Sheet June 30, 2019 ▪ Etrion has a working capital of $149.1 US$ millions Japan Corp TOTAL million and a consolidated cash position Property, plant and equipment 174.0 0.1 174.1 of $168.5 million, of which $5.3 million is Intangible assets 6.9 4.8 11.7 unrestr
Slide 24: Cash and liquidity
Cash and liquidity Unrestricted cash reconciliation H1-19 G&A plus year end bonuses and accrued expenses paid 12 1.9 3.3 10 9.3 1.7 8 US$ millions 1.4 6 0.9 0.3 5.2 0.2 On July 1, 2019, Etrion charged the 45 MW Niigata project with a net 4 development fee of approximately ¥600 million ($5.5 million)
Slide 25: Summary
Summary 25
Slide 26: Summary
Summary • Strong Q2-2019 financial performance in all key operating metrics demonstrating excellent execution in all operational activities • Niigata 45 MW project on track to be completed by Q4-21 • Fully funded with no additional capital required to build Niigata project • Significant upside beyon
Slide 27: 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 27