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…
ETRION CORPORATION Company Overview Financial Summary Independent power producer (IPP) that builds, owns and Recent Share Price (TSX/OMX: ETX) CAD0.50 / SEK 3.31 operates ground-based solar photovoltaic (PV) power generation plants…
ETRION AT A GLANCE 60 MW of installed capacity in Italy Operating platform of 17 solar power plants in Italy consistently OPERATIONAL perform above plan with 99.6% availability (YTD) EXCELLENCE Centralised monitoring system and…
UTILITY-SCALE SOLAR POWER GENERATION Goal: Build, own and operate solar electricity plants at lowest kWh cost Competitive Advantages of Solar Power Easy to permit Lowest marginal cost Fast to build Competitive at all sizes…
BUSINESS MODEL KEY DRIVERS Key drivers Rationale STABLE REVENUES 1. Long-term contracts Premium price for solar electricity generation under long-term contracts (i.e., FiT or PPAs) REVENUE 2. Solar irradiation Annual solar…
SOLAR PROJECT CASH FLOW CREATION Example of Solar Project Value Creation 100% 15% 33% 17% 10% 25% Revenues Operating cost Interest payment Debt repayment State and local Free Cash Flow taxes to Equity High solar…
DOWNSTREAM PLAYER IN THE SOLAR ENERGY MARKET PARTS SERVICES IPP RAW PROJECT (MODULES, (ENGINEERING, DEVELOPMENT (BUILD, OWN, MATERIALS FINANCE INVERTERS) CONSTRUCTION) OPERATE) Raw materials (e.g., Solar cells are then Third…
EXPERIENCED BOARD MEMBERS Ian H. Lundin (Chairman) - co-leads the investment initiatives of the Garrett Soden (Director) - has experience across the natural resources Lundin Group and serves on the board of several Lundin companies,…
INDUSTRY OVERVIEW 13
GLOBAL SOLAR INSTALLED CAPACITY (2013) Total global solar installed capacity of 140 gigawatts (GW) in 2013 Solar represents less than 3% of global installed power generation capacity Annual solar installation growth projected at…
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 414 mature and mainstream source of electricity…
ACCELERATED DECREASE IN REQUIRED CAPEX Evolution of Utility-Scale Solar PV Capex (US / W) 5.85 As all-in solar installation costs have fallen significantly in recent years, solar PV is perfectly positioned to capitalize on the…
ASSET OVERVIEW 17
ETRIONS 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 18
COUNTRY SNAPSHOT ITALY CHILE JAPAN S&P: BBB S&P: AA- S&P: AA- Sovereign Credit Rating Moodys: Baa2 Moodys: Aa3 Moodys: Aa3 Fitch: BBB+ Fitch: A+ Fitch: A+ 10-Year Bond Yield 3.04% 4.97% 0.61% Inter-annual CPI (Dec-2013) 0.7%…
OPERATING ASSETS: ITALY 20
ITALIAN SOLAR POWER MARKET Overview Italy is a leading producer of electricity from renewable energy sources, and it is one of the largest producers of solar energy in the world The solar PV sector has historically been the dominant…
ITALIAN OPERATING ASSETS Revenue(3) EBITDA(3) Project(1) MW(2) US million US million Cassiopea 24.0 24.1 20.4 (Montalto, Lazio) Helios ITA-3 10.0 7.4 6.5 (Brindisi/Mesagne, Puglia) Centauro 8.8 8.2 6.9 (Montalto, Lazio)…
EXPANSION PLANS: CHILE 23
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…
PROJECT SALVADOR TOTAL/ETRION PARTNERSHIP SALVADOR (70 MW) Project Details Capacity 70 (49 net) MW Irradiation Yield 2,916 kWh/kWp Merchant project in the SIC (spot market pricing Revenue Stream with ability to secure…
CHILE SOLAR PIPELINE CONTRACT COUNTRY REGION PROJECT NAME SITES MW STATUS PROBABILITY OWNERSHIP SHOVEL-READY REGIME - Application for land filed in April 2013 SING Merchant + 1 Chile Aguas Blancas 3 72 - Following confirmation of…
EXPANSION PLANS: JAPAN 27
JAPANESE SOLAR 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% over 14 GW of installed capacity 10% Relatively low-risk jurisdiction with…
HITACHI/ETRION PARTNERSHIP SHIZUKUISHI(1) MITO(1) Capacity 24.7 (21.5 net) MW 9.3 (8.1 net) MW Irradiation Yield 1,047 kWh/kWp 1,118 kWh/kWp FiT (paid in JPY): JPY 40 FiT (paid in JPY): JPY 40 Revenue Stream (US0.40)/kWh…
SUMMARY 30
OVERALL PROJECT PORTFOLIO POTENTIAL GROWTH MW Net Installed Capacity Evolution 250 237+ (3) 27 Almost 4x growth in installed capacity 72 200 150 21.5 (2) (2) (1) 8.1 49 100 60 50 0 d e as or ito s…
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…
APPENDIX 33
ETRION EQUITY RESEARCH COVERAGE Target Target Broker Location Date of Last Report Price Price Recommendation (CAD) (SEK) 1 ABG Sundal Collier Stockholm August 11, 2014 0.60 3.8 Buy 2 Cormark Securities Toronto September 8, 2014…
Contact Details Etrion Corporation Rue de la Rtisserie 1 CH - 1204 Geneva Switzerland Phone: +41 22 715 20 90 Email: infoetrion.com Website: www.etrion.com 35
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