Slide 1: Town Hall Presentation
Town Hall Presentation May 7, 2015 1
Slide 2: Disclaimer
DISCLAIMER These materials and the information contained herein are being presented by Etrion Corporation (the “Company”). By attending a meeting where these materials are presented, or by reading them, you agree to be bound by the following limitations and notifications. These materials are strictl
Slide 3: Corporate Overview
CORPORATE OVERVIEW 3
Slide 4: The Lundin Group
THE LUNDIN GROUP Etrion is part of the Lundin Group of Companies, 10 publicly-traded companies in the mining and energy sectors The companies range from exploration stage to advanced development and production, operating in over 30 countries worldwide with a combined market capitalization of ove
Slide 5: Etrion Corporation
ETRION CORPORATION Company Overview Financial Summary • Independent power producer (IPP) that develops, builds, owns and operates ground-based solar photovoltaic (PV) power generation plants Recent Share Price (TSX/OMX: ETX) C$0.46 / SEK 2.95 in three key markets (Italy, Chile and Japan) Shares Outs
Slide 6: Q1-2015 Highlights
Q1-2015 Highlights USD'000 (unless otherwise stated) Q1-15 Q1-14 Tangible Growth FINANCIAL DATA Revenue (1) 10'387 8'367 24% increase in revenue Gross profit 2'379 868 46% increase in EBITDA EBITDA 5'504 3'773 290% increase in electricity production Net loss -2'483 -8'208 117% increase in in
Slide 7: Utility-Scale Solar Power Generation
UTILITY-SCALE SOLAR POWER GENERATION Goal: Build, own and operate solar electricity plants at lowest cost per kWh Borgo Piave, Lazio, Italy – 3.5 MW Etrion Lazio Atacama, Chile – 70 MW Salvador Montalto, Lazio, Italy – 24 MW Cassiopea and 8.8 MW Centauro Competitive Advantages of Solar Power Easy to
Slide 8: Downstream Player in the Solar Energy Market
DOWNSTREAM PLAYER IN THE SOLAR ENERGY MARKET PARTS SERVICES RAW PROJECT ASSET (MODULES, (ENGINEERING, DEVELOPMENT MATERIALS FINANCE MANAGEMENT INVERTERS) CONSTRUCTION) • Solar facilities are developed in new markets Raw materials (e.g., Solar cells are then Third parties polysilicon) assembled
Slide 9: Solar Project Value Creation
SOLAR PROJECT VALUE CREATION Example of Leveraged Solar Project Value Creation Non-Recourse Project Debt Equity Total Investment Development Distributions Asset Management Residual Value Total Value Premium Notes: (1) Total investment assumes illustrative project in Etrion’s pipeline with 75% levera
Slide 10: Industry Overview
INDUSTRY OVERVIEW 10
Slide 11: Price Evolution of Energy Sources
PRICE EVOLUTION OF ENERGY SOURCES 11
Slide 12: Paradigm Shift
PARADIGM SHIFT Global Power Generation Growth Forecast (GW) Source: Bloomberg New Energy Finance. Solar makes up less than 1% of electricity generated today (3% of installed capacity) but could be the biggest single source by 2050 (IEA) 12
Slide 13: Global Solar Installed Capacity (2014)
GLOBAL SOLAR INSTALLED CAPACITY (2014) Total global solar installed capacity of 195 gigawatts (GW) in 2014 Solar represents less than 3% of global installed power generation capacity Annual solar installation growth projected at close to 60 GW in 2015 Source: Bloomberg New Energy Finance. Note
Slide 14: Strong Outlook for Solar PV Industry
STRONG OUTLOOK FOR SOLAR PV INDUSTRY Cumulative Solar PV Installed Capacity (GW) Solar PV has experienced significant growth over the past decade and is on the way to becoming a 370 mature and mainstream source of electricity 320 European countries have historically dominated the solar PV market
Slide 15: Asset Overview
ASSET OVERVIEW 15
Slide 16: Etrion's Global Platform
ETRION’S GLOBAL PLATFORM Geographic diversification across Italy, Chile and Japan Revenue diversification across FiT, PPAs and spot (merchant) pricing Etrion is constantly evaluating new opportunities in high-growth regions 16
Slide 17: Italy: Operating Assets
ITALY: OPERATING ASSETS 17
Slide 18: Italian Operating Assets
ITALIAN OPERATING ASSETS Project Sites Capacity Technology EPC/O&M Modules Inverters (MW)(2) Contractor Cassiopea 1 24.0 Single axis SunPower SunPower SMA Helios ITA-3 2 10.0 Single axis ABB Yingli Bonfiglioli Centauro 1 8.8 Single axis SunPower SunPower SMA Helios ITA 7 6.4 Single axis Solon/ABB So
Slide 19: Chile: Operating Asset and Pipeline
CHILE: OPERATING ASSET AND PIPELINE 19
Slide 20: Chilean Power Market
CHILEAN POWER MARKET Overview Chile – Installed Capacity by Source 2013 In 2013, Chile had 18 GW of total installed power capacity, of 17% Wind 21% 2% which large hydro and natural gas made up more than 50% Biomass & Waste Renewables accounted for approximately 8% of installed capacity, 2% 8% wi
Slide 21: Chilean Operating Asset
CHILEAN OPERATING ASSET SALVADOR (70 MW) Project Details Sites 1 Region Atacama Capacity 70 MW Ownership 70%(1) Technology Single axis Module SunPower EPC SunPower O&M SunPower Irradiation Yield 2,916 kWh/kWp Atacama, Chile – 70 MW Salvador Merchant project in SIC network with 15- Revenue Stream yea
Slide 22: Chilean Solar Pipeline
CHILEAN SOLAR PIPELINE CONTRACT # COUNTRY REGION PROJECT NAME SITES MW STATUS OWNERSHIP SHOVEL-READY REGIME - Land concession assigned; decree expected in four months. SING Aguas Blancas Merchant + - Environmental impact assessment received. 1 Chile 1 32 100% Q1-2015 (Northern) 2A PPA - Interconnect
Slide 23: Japan: Assets Under Construction and Development
JAPAN: ASSETS UNDER CONSTRUCTION AND DEVELOPMENT 23
Slide 24: Japanese Power Market
JAPANESE POWER MARKET Overview Japan – Installed Capacity by Source 2013 1% 7% Japan is one of the largest solar PV markets in the world today with 21% 25.9 GW of installed capacity in 2014 10% Relatively low-risk jurisdiction with an attractive solar FiT 2% 1% program (¥40 / US$0.40, ¥36 / US$0
Slide 25: Japanese Assets Under Construction
JAPANESE ASSETS UNDER CONSTRUCTION SHIZUKUISHI MITO Sites 1 5 Region North (Iwate) Central (Ibaraki) Capacity 24.7 MW 9.3 MW Ownership 87%(1) 87%(1) Technology Fixed-tilt Fixed-tilt SHIZUKUISHI, 24.7MW Module Canadian Solar Canadian Solar EPC Hitachi High-Tech Hitachi High-Tech O&M Hitachi High-Tech
Slide 26: Etrion's Partnership with Hitachi
ETRION’S PARTNERSHIP WITH HITACHI Partnership Scope Development agreement to build an IPP business in Japan Hitachi High-Tech to provide: Technology EPC and O&M services Relationship with utilities and local communities Etrion to provide: Project development platform Asset management
Slide 27: Mito - 9.3 MW Under Construction
MITO - 9.3 MW UNDER CONSTRUCTION Mito, Japan – 9.3 MW Mito project under construction, site 1. Completion of project expected in Q3-2015 27
Slide 28: Mito - 9.3 MW Under Construction
MITO - 9.3 MW UNDER CONSTRUCTION Mito, Japan – 9.3 MW Mito project under construction, site 4. Completion of project expected in Q3-2015 28
Slide 29: Japanese Solar Pipeline
JAPANESE SOLAR PIPELINE CONTRACT # COUNTRY REGION PROJECT NAME SITES MW STATUS OWNERSHIP SHOVEL-READY REGIME - FiT secured. Greenfield 1 Japan South ¥36 FiT 1 25 - Land contract secured. 85% Q1-2016 Project 1 - Grid impact studies in progress. - FiT secured. Greenfield 2 Japan Central ¥32 FiT 1 14 -
Slide 30: Corporate Responsibility and Sustainable Investments
CORPORATE RESPONSIBILITY AND SUSTAINABLE INVESTMENTS Our approach Understand community and regional needs Communicating, educating and listening with local stakeholders such as mayors, farmers, etc. Building trust and winning repeat business Master the detailed local dynamics Project devel
Slide 31: Etrion Committed to the Environment
ETRION COMMITTED TO THE ENVIRONMENT Respecting the country's history and nature Honoring wildlife - e.g. in Chile for one of our projects we can only start construction in April as the “garuma gull” bird is nesting in October/ November and birds breed during the month of March Respecting local h
Slide 32: Summary
SUMMARY ( etrion
Slide 33: Overall Project Portfolio – Potential Growth
OVERALL PROJECT PORTFOLIO – POTENTIAL GROWTH MW Net Installed Capacity Evolution (3) 119 (2) 357 350 More than 5x growth in installed capacity 300 250 27 72 200 24 Aguas Blancas 2B (2) 48 Aguas Blancas 2A&C 150 22 (1) (2) 49 8 100 60 50 0 Italy Chile Japan Japan Chile Chile Japan Total Salvador Mito
Slide 34: Conclusion
CONCLUSION Attractive returns in downstream solar power generation sector Global Platform Well positioned to expand within Europe, Asia and the Americas Systems in place to effectively manage operations across multiple jurisdictions Proven ability to secure high-return projects and attract s
Slide 35: Contact Details
Contact Details Etrion Corporation Rue de la Rôtisserie 1 1204 Geneva Switzerland Phone: +41 22 715 20 90 Email: info@etrion.com Website: www.etrion.com 35