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 owns and operates Recent Share Price (TSX/OMX: ETX) CAD 0.66 / SEK 4.00 60 megawatts (MW) of ground-based solar photovoltaic (PV) power…
UTILITY-SCALE SOLAR POWER GENERATION Goal: Build, own and operate solar electricity plants at lowest kilowatt-hour (kWh) cost Competitive Advantages of Solar Power Easy to permit Lowest marginal cost Fast to build Competitive…
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…
STRONG MANAGEMENT TEAM Marco A. Northland (Chief Executive Officer and Director) - has extensive experience leading growth companies. Prior to co-founding Etrion in 2008, he was responsible for establishing and overseeing European…
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 12
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 (USD / 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 16
ETRIONS GLOBAL PLATFORM Geographic diversification across Italy, Chile and Japan Revenue diversification across Feed-in-Tariffs (FiT), Power Purchase Agreements (PPAs) and spot (merchant) pricing Etrion is constantly evaluating…
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 19
ITALIAN SOLAR POWER MARKET Overview Italy is a leading producer of electricity from renewable energy sources, and it is the second largest producer of solar energy in the world behind Germany The solar PV sector has historically…
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 CONSTRUCTION COUNTRY REGION PROJECT NAME SITES MW STATUS PROBABILITY OWNERSHIP REGIME START - Application for land filed in April 2013 SING Merchant + 1 Chile Aguas Blancas 3 72 - Following…
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 23% over 14 GW of installed capacity 10% 1% Relatively low-risk jurisdiction…
HITACHI/ETRION PARTNERSHIP SHIZUKUISHI (24.7 MW) Project Details Capacity 24.7 (21.0 net) MW Irradiation Yield 1,027 kWh/kWp FiT (paid in ): 40 (USD 0.38)/kWh Revenue Stream Term: 20 years Production 24 (20.4 net) GWh/year…
JAPAN SOLAR PIPELINE CONTRACT CONSTRUCTION COUNTRY REGION PROJECT NAME SITES MW STATUS PROBABILITY OWNERSHIP REGIME START - JPY 40 FiT secure Iwate - Land agreement executed 1 Japan Shizukuishi FiT 1 24.7 P50 85% 2H-2014…
SUMMARY 31
OVERALL PROJECT PORTFOLIO POTENTIAL GROWTH (2) (3) (2) (1) Operating Notes: Under Construction (1) Etrions initial net capacity in 70 MW project. (2) Etrions net capacity in first two Japanese projects. Etrions goal is to…
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 34
ETRION EQUITY RESEARCH COVERAGE Target Target Broker Location Date of Last Report Price Price Recommendation (CAD) (SEK) 1 ABG Sundal Collier Stockholm May 11, 2014 0.75 4.50 Buy 2 Canaccord Genuity Vancouver May 9, 2014 0.90 5.42…
EQUITY PRIVATE PLACEMENT Comments Transaction Summary In January 2014, Etrion completed a USD 80 million equity private Issuer: Etrion Corporation placement at a price of SEK 4.15 (approximately CAD 0.70) per Amount: USD 80 million…
BOND REFINANCING Key Terms and Conditions Transaction Statistics Issuer: Etrion Corporation (Canada) Investor Demand by Type New vs Existing Investors Guarantor: Solar Resources Holding S.a.r.l (Luxembourg) Existing Fund / AM investors…
Contact Details Etrion Corporation Rue du Stand 60-62 CH - 1204 Geneva Switzerland Phone: +41 22 715 20 90 Email: infoetrion.com Website: www.etrion.com 38
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