Slide 1: Q1-19 Operations and Finance Update
Q1-19 Operations and Finance Update May 8th 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: Corporate Overview
etnon Corporate Overview
Slide 4: Etrion Corporation
Etrion Corporation Company Overview Financial Summary FINANCIAL SUMMARY • Solar development platform focused on Japan, third largest Recent Share Price (TSX/OMX: ETX) C$0.21 / SEK 1.55 energy market in the world Shares Outstanding 334.1MM • 11 solar plants operational with aggregate capacity of 57 M
Slide 5: Key Q1-19 Highlights
Key Q1-19 Highlights • Production, Revenues and EBITDA up above 40% relative to Q1-18 • Niigata 45 MW project on target to reach financial close in Q2-19 Project is fully funded. No additional equity will be needed at financial close • Yokkaichi 60 MW project on litigation with developer to enforce
Slide 6: Operational Update
etnon Operational Update
Slide 7: Mito – 9.3 MW operational
Mito – 9.3 MW operational Mito Production (MWh) Mito 1400 Utility Tepco Capacity 9.3 MW 1200 Ownership 87% 1000 Technology Fixed-tilt Module Canadian Solar 800 Inverters Hitachi 600 EPC / O&M Hitachi High-Tech Irradiation Yield 1,120 kWh/kWp 400 FiT: ¥40/kWh Revenue Stream Term: 20 years 200 Product
Slide 8: Shizukuishi – 24.7 MW operational
Shizukuishi – 24.7 MW operational Shizukuishi Production (MWh) Shizukuishi 4000 Utility Tohoku 3500 Capacity 24.7 MW Ownership 87% 3000 Technology Fixed-tilt 2500 Module Canadian Solar Inverters Hitachi 2000 EPC / O&M Hitachi High-Tech 1500 Irradiation Yield 1,088 kWh/kWp 1000 FiT: ¥40/kWh Revenue S
Slide 9: Misawa – 9.5 MW operational
Misawa – 9.5 MW operational Misawa Production (MWh) Misawa 1400 Utility Tohoku Capacity 9.5 MW 1200 Ownership 60% 1000 Technology Fixed-tilt Module AOU 800 Inverters Hitachi 600 EPC / O&M Hitachi High-Tech Irradiation Yield 1,126 kWh/kWp 400 FiT: ¥36/kWh Revenue Stream Term: 20 years 200 Production
Slide 10: Komatsu – 13.2 MW operational
Komatsu – 13.2 MW operational Komatsu Production (MWh) Komatsu 2000 Utility Hokuriku 1800 Capacity 13.2 MW Ownership 85% 1600 Technology Fixed-tilt 1400 Module Canadian Solar 1200 Inverters Hitachi 1000 EPC / O&M Hitachi High-Tech 800 Irradiation Yield 1,087 kWh/kWp 600 FiT: ¥32/kWh 400 Revenue Stre
Slide 11: Business Development Update
Business Development Update 11
Slide 12: Niigata – 45 MW
Niigata – 45 MW Size 45.0 MWp Ownership share 100% Region / Utility Tohoku Expected: NTP / COD Q2-2019 / Q4-2021 Revenue FIT: ¥36/kWh METI FiT secured Irradiation 1,050 kWh/kWp Development Period Since Q2-2016 O&M Contractor TAG EPC Contractor Toyo Engineering Project Development Status Task Status
Slide 13: Niigata Project Timeline
Niigata Project Timeline 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ready to Build Stage Pre-Construction Project Finance Grid connection works Civil Works – water management – 3 Zones Foundation for facilities and PCS Financial Close NTP Electric cable work COD Grid Substation Delivery Grid
Slide 14: 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 15: 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 16: Other Activities / initiatives
Other Activities / initiatives • Divesture of Kumamoto – Expect next payment to be received before end of May-2019 and final payment within Q3-2019. • Divesture of Chilean 70 MW PV Salvador project – Company retained financial advisor – Target closing by Q4-19 • Italy tax recovery initiative – Tremo
Slide 17: Financial results
etnon Financial results 17
Slide 18: Financial results
Financial results Etrion consolidated results Q1-19 Segment information Q1-18 Q1-19 US$ millions Japan Corp TOTAL 5.0 Revenues 4.2 - 4.2 4.0 +45% Operating expenses (1.3) - (1.3) 3.0 G&A expenses (0.1) (0.9) (0.9) Other income (0.3) 0.0 (0.2) 4.2 US$ millions 2.0 EBITDA 2.6 (0.8) 1.7 2.9 +49% 2.6 1.
Slide 19: Financial position
Financial position Consolidated Balance Sheet March 31, 2019 ▪ Etrion has a working capital of $20.3 US$ millions Japan Corp TOTAL million and a consolidated cash position Property, plant and equipment 153.6 0.1 153.6 of $23.2 million, of which $6.9 million is Intangible assets 10.4 4.2 14.6 unrestr
Slide 20: Cash and liquidity
Cash and liquidity Unrestricted cash reconciliation 10 9 2.5 8 9.3 0.2 0.4 7 1.7 2.4 6 US$ millions 5 6.9 4 3 2 Liquidity to fund the growth of the business 1 in Japan in 2019 - Dec-18 Operating CF Dev Costs Kumamoto Taxes Exchange Mar-19 reimbursement differences Unrestricted cash Decrease Increase
Slide 21: Summary
Summary 21
Slide 22: Summary
Summary • Strong Q1-2019 financial performance in all key operating metrics demonstrating excellent execution in all operational activities • Niigata 45 MW project on track to financial close by Q2- 2019. Terrific execution of the team on a very complex project • Fully funded with no additional capi
Slide 23: 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 23