Etrion Corp. · OTC:ETRXF
Etrion — Q4 2019 Earnings Presentation
27 slides from Etrion's earnings presentation, Mar 10, 2020
Slide 1: 2019 Fourth Quarter and Full Year Operations and Finance Update
2019 Fourth Quarter and Full Year Operations and Finance Update March 10th 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 Company Overview Financial Summary
Etrion Corporation Company Overview Financial Summary FINANCIAL SUMMARY • Solar development platform focused in Japan, among the Recent Share Price (TSX/OMX: ETX) (1) (2) C$0.22 / SEK 1.43 top 5 largest energy markets in the world Shares Outstanding (3) 334.1MM • 11 solar plants operational and 1 un
Slide 4: Japan – Solar position in the world and growth perspectives
Japan – Solar position in the world and growth perspectives Figure 2: Japan solar PV market growth scenario 2019-2026 (GW) Source: JPEA Figure 1: Cumulative solar PV Capacity Globally as of 2018 Source: REN21 Figure 4: Electricity Generation by Fuel in Japan in 2030 Figure 3: Electricity Generation
Slide 5: Our focus is Japan
Our focus is Japan 1 Among top 5 largest energy markets in the world 2 Solar supported by a Feed-in-Tariff program 3 Among highest electricity prices in OECD 4 Strategic partnerships 5 Low cost financing 6 Energy sector deregulated in 2016 7 Strong institutional demand for yield 5 www.etrion.com | T
Slide 6: Operational Update
Operational Update 6
Slide 7: CoronaVirus impact on the business
CoronaVirus impact on the business • All IT systems in place enables the company to run the business remotely. Cloud base accounting, finance, email, file storage and video conference services enables the company to experience minimum disruption and operate business-as-usual • All employees have bee
Slide 8: 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 8 www.etrion.com | TSX: ETX
Slide 9: Full year operational performance of operating assets
Full year operational performance of operating assets 5000 1400 Shizukuishi Production (MWh) Mito Production (MWh) 1200 4000 1000 3000 800 2000 600 400 1000 200 0 0 Expected Actual Expected Actual Misawa Production (MWh) Komatsu Production (MWh) 1600 2500 1400 1200 2000 1000 800 1500 600 1000 400 20
Slide 10: Recap Japanese portfolio restructuring
Recap Japanese portfolio restructuring • The minority interest of Hitachi High-technologies and Tamagawa Holdings on our existing operating projects were acquired in Dec-2019 • All O&M contracts were renegotiated and ETX also took full control of the Asset Management Services (AMS) across all plants
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
Niigata Project timeline 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 / civil works Mounting Structures & Modules Focusing on: ✓ Tree cutting Electric cable work ✓ Soil Cut & Fill
Slide 14: Sites construction status photo (Jan 2020)
Sites construction status photo （ Jan 2020 ） 1 6 2 3 1 4 5 2 14 www.etrion.com | TSX: ETX
Slide 15: Sites construction status photo (Jan 2020)
Sites construction status photo （ Jan 2020 ） 3 4 5 6 15 www.etrion.com | TSX: ETX
Slide 16: Business Development Update
Business Development Update 16
Slide 17: 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 to take 100% ownership once project reaches ready to build status – Etrion commenc
Slide 18: Financial results
Financial results 18
Slide 19: 2019 Highlights
2019 Highlights US$ mm otherwise indicated Q4-19 Q4-18 2019 2018 2019 Highlights 3-m 3-m 12-m 12-m ▪ project 45 MW Niigata 100% underasset ownership after US$4.3 construction Production KWh mm 10.4 12.2 63.6 56.8 million HHT and Tamagawa interest acquisition in December 2019 Revenue 3.6 4.0 21.9 19.
Slide 20: Financial results
Financial results Etrion consolidated results 2019 Segment information US$ millions Japan Corp TOTAL Revenues 21.9 - 21.9 Etrion's Growth in Japan Operating expenses (5.3) - (5.3) 70,000 60 G&A expenses (0.4) (5.1) (5.5) Production (MWh) or Revenue/EBITDA (USD '000) 60,000 50 Additional termination
Slide 21: Financial position
Financial position Consolidated Balance Sheet December 31, 2019 US$ millions Japan Corp TOTAL ▪ Etrion has a working capital of $109.7 Property, plant and equipment 191.7 0.1 191.8 million and a consolidated cash position of $123.4 million, of which $10.6 million Intangible assets 12.5 2.3 14.8 is u
Slide 22: Cash and liquidity
Cash and liquidity Unrestricted cash reconciliation 20 18 16 2.7 0.5 4.3 14 3.0 2.9 US$ millions 12 2.7 10.6 9.3 3.8 10 4.2 8 5.6 6 4 2 - Liquidity to fund the growth of the business in Japan in 2020 Unrestricted cash Decrease Increase 22 www.etrion.com | TSX: ETX
Slide 23: 2019 Actual vs Guidance
2019 Actual vs Guidance LOW END GUIDANCE Energy generation (GWh) 46.8 ▪ In 2019, Etrion’s production and Revenue (US$ m) 15.9 revenue were higher than the high end of the guidance due to overall Project-level EBITDA (US$ m) 12.0 better than expected weather conditions and excellent performance of al
Slide 24: 2020 Guidance
2020 Guidance LOW END GUIDANCE The high end and low end guidance for year Energy generation (GWh) 59.9 2020 are based on the following assumptions Revenue (US$ m) 20.6 ▪ Capacity: Based on 100% capacity of each Project-level EBITDA (US$ m) 15.0 project, acquired from minority shareholders on Decembe
Slide 25: Summary
Summary 25
Slide 26: Summary
Summary • Etrion well positioned for continued growth in one of the largest solar markets in the world • Strong 2019 financial performance in all key operating metrics demonstrating excellent execution in all operational activities • Restructuring in 2019 increased net operational capacity by 22%, i
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