Slide 1: Q3-19 Operations and Finance Update
Q3-19 Operations and Finance Update November 18th 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: Etrion Corporation Company Overview and Financial Summary
Etrion Corporation Company Overview Financial Summary FINANCIAL SUMMARY • Solar development platform focused in Japan, third largest Recent Share Price (TSX/OMX: ETX) C$0.21 / SEK 1.52 energy market in the world Shares Outstanding 334.1MM • 11 solar plants operational and 1 under construction with a
Slide 4: Japan – Solar position in the world and growth perspectives
Japan – Solar position in the world and growth perspectives Figure 2: Japan solar PV market growth scenario 2019-2026 (GW) Source: JPEA Figure 1: Cumulative solar PV Capacity Globally as of 2018 Source: REN21 Figure 4: Electricity Generation by Fuel in Japan in 2030 Figure 3: Electricity Generation
Slide 5: Our focus is Japan
Our focus is Japan 1 3rd largest energy market in the world 2 Solar supported by a Feed-in-Tariff program 3 Among highest electricity prices in OECD 4 Strategic partnerships 5 Low cost financing 6 Energy sector deregulated in 2016 7 Strong institutional demand for yield 5 www.etrion.com | TSX: ETX
Slide 6: Operational Update
etnon Operational Update
Slide 7: Q3-19 highlights
Q3-19 highlights US$ mm Q3-19 Q3-18 Q3-19 Q3-18 45 indicated Otherwise MW Niigata project under construction ▪ Higher revenues (3%) and project-EBITDA (4%) relative to Q3-18 3-months 9-months Production kWh mm 18.4 18.3 53.2 44.6 ▪ Cash collections of US$1.8 million for final Revenue 6.4 6.2 18.3 15
Slide 8: Mito – 9.3 MW operational
Mito – 9.3 MW operational MITO comparison (MWh) Mito 1400 Utility Tepco Capacity 9.3 MW 1200 Ownership 87% 1000 Technology Fixed-tilt 800 Module Canadian Solar 600 Inverters Hitachi EPC / O&M Hitachi High-Tech 400 Irradiation Yield 1,120 kWh/kWp 200 FiT: ¥40/kWh Revenue Stream 0 Term: 20 years Aug-1
Slide 9: Shizukuishi – 24.7 MW operational
Shizukuishi – 24.7 MW operational Shizukuishi Shizukuishi comparison (MWh) Utility Tohoku 4500 Capacity 24.7 MW 4000 Ownership 87% 3500 Technology Fixed-tilt 3000 Module Canadian Solar 2500 Inverters Hitachi 2000 EPC / O&M Hitachi High-Tech 1500 Irradiation Yield 1,088 kWh/kWp 1000 500 FiT: ¥40/kWh
Slide 10: Misawa – 9.5 MW operational
Misawa – 9.5 MW operational Misawa MISAWA comparison (MWh) Utility Tohoku 1600 Capacity 9.5 MW 1400 Ownership 60% 1200 Technology Fixed-tilt 1000 Module AOU 800 Inverters Hitachi 600 EPC / O&M Hitachi High-Tech 400 Irradiation Yield 1,126 kWh/kWp 200 FiT: ¥36/kWh Revenue Stream 0 Term: 20 years Aug-
Slide 11: Komatsu – 13.2 MW operational
Komatsu – 13.2 MW operational Komatsu Komatsu comparison (MWh) Utility Hokuriku 2500 Capacity 13.2 MW 2000 Ownership 85% Technology Fixed-tilt 1500 Module Canadian Solar 1000 Inverters Hitachi EPC / O&M Hitachi High-Tech 500 Irradiation Yield 1,087 kWh/kWp 0 FiT: ¥32/kWh Revenue Stream Term: 20 year
Slide 12: Niigata
Niigata
Slide 13: Niigata – 45 MW
Niigata – 45 MW Key project metrics Ownership 100% ETX Capacity 45 MW Region / Utility Tohoku PPA Price ¥36/kWh - FiT until March 2040 Irradiation 1,050 kWh/kWp Total Capex US$ 154.2M BBB Green Project Bond, US$ Finance Structure 146.5M (JPY 15.9 billion) Debt tenor Construction period plus 16.8 yea
Slide 14: Sites construction progress curve (as of 30th Sep 2019)
Sites construction progress curve（as of 30th Sep 2019） WIP Project on schedule and on budget VIG 14 www.etrion.com | TSX: ETX
Slide 15: Sites construction status photo (September 2019)
Sites construction status photo（September 2019） 1 2 6 2 3 1 5 4 15 www.etrion.com | TSX: ETX
Slide 16: Sites construction status photo (September 2019)
Sites construction status photo（September 2019） 3 4 5 6 16 www.etrion.com | TSX: ETX
Slide 17: Business Development Update
Business Development Update 17
Slide 18: 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 19: Growth Opportunity
Growth Opportunity • The Company continue to pursue new opportunities in Japan and remains working on different opportunities. We will update the market as new opportunities are realized • Beyond FiT the Company is exploring bilateral agreements for PPA contracts. PPA market is at very early stage b
Slide 20: Financial results
etnon Financial results 20
Slide 21: Financial results: Etrion consolidated results
Financial results Etrion consolidated results Etrion's Growth in Japan Q3-19 Segment information 40,000 60 US$ millions Japan Corp TOTAL Revenues 6.4 - 6.4 Production (MWh) or Revenue/EBITDA (USD '000) 35,000 50 Operating expenses (1.4) - (1.4) MWp Installed at End of Period 30,000 40 G&A expenses (
Slide 22: Financial position
Financial position Consolidated Balance Sheet September 30, 2019 ▪ Etrion has a working capital of $137.9 US$ millions Japan Corp TOTAL million and a consolidated cash position Property, plant and equipment 184.1 0.1 184.2 of $143.9 million, of which $18.2 million Intangible assets 11.1 2.2 13.3 is
Slide 23: Cash and liquidity
Cash and liquidity Unrestricted cash reconciliation 20 2.8 0.3 0.2 18.2 18 16 1.4 14 0.6 4.2 3.1 3.9 US$ millions 12 9.3 10 5.6 8 6 4 2 - Liquidity to fund the growth of the business in Japan in 2019-2020 Unrestricted cash Decrease Increase 23 www.etrion.com | TSX: ETX
Slide 24: Summary
Summary 24
Slide 25: Summary
Summary • Etrion well position for continued growth in one of the largest solar markets in the world • Strong Q3-2019 financial performance in all key operating metrics demonstrating excellent execution in all operational activities • Niigata 45 MW project on track to be connected by Q4-21 • Fully f
Slide 26: 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 26