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 develops, builds, owns Recent Share Price (TSX/OMX: ETX) CAD0.44 / SEK 3.15 and operates ground-based solar photovoltaic (PV) power…
ETRION AT A GLANCE 60 MW of installed capacity in Italy fully operational since 2011 17 solar power plants in Italy consistently perform above plan with OPERATIONAL 99.7% availability in 2014 EXCELLENCE Centralised monitoring system…
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…
DOWNSTREAM PLAYER IN THE SOLAR ENERGY MARKET PARTS SERVICES RAW PROJECT ASSET (MODULES, (ENGINEERING, DEVELOPMENT MATERIALS FINANCE MANAGEMENT INVERTERS) CONSTRUCTION) Raw materials (e.g., Solar cells are then Third parties…
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 PPA) REVENUE 2. Solar irradiation Annual solar…
SOLAR PROJECT CASH FLOW CREATION Example of Solar Project Cash Flow 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 PROJECT VALUE CREATION Example of Leveraged Solar Project Value Creation Notes: (1) Total investment assumes illustrative project in Etrions pipeline with 70% leverage. Development fee is received by Etrion at first drawdown…
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 NON-EXECUTIVE BOARD MEMBERS Ian H. Lundin (Chairman) - co-leads the investment initiatives of the Lundin Group and serves on the board of several Lundin companies, specifically, Chairman of Lundin Petroleum AB. In 1984, he…
INDUSTRY OVERVIEW 14
GLOBAL SOLAR INSTALLED CAPACITY (2014) Total global solar installed capacity of 195 gigawatts (GW) in 2014 Solar represents less than 4% 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 370 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 18
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 19
COUNTRY SNAPSHOT ITALY CHILE JAPAN S&P: BBB- S&P: AA- S&P: AA- Sovereign Credit Rating Moodys: Baa2 Moodys: Aa3 Moodys: A1 Fitch: BBB+ Fitch: A+ Fitch: A+ 10-Year Bond Yield 1.61% 4.23% 0.41% Inter-annual CPI (Dec-2014) 0.0%…
ITALY: OPERATING ASSETS 21
ITALIAN 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…
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) Atacama, Chile 70 MW Salvador Project Details Capacity 70 (49 net) MW Irradiation Yield 2,916 kWh/kWp Merchant project in the SIC (spot market pricing Revenue…
CHILEAN SOLAR PIPELINE CONTRACT COUNTRY REGION PROJECT NAME SITES MW STATUS PROBABILITY OWNERSHIP SHOVEL-READY REGIME - Land concession decree signed. - Environmental impact assessment received. SING Aguas Blancas Merchant + 1…
JAPAN: ASSETS UNDER CONSTRUCTION AND DEVELOPMENT 28
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…
HITACHI HIGH-TECH/ETRION PARTNERSHIP SHIZUKUISHI MITO 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…
JAPANESE SOLAR PIPELINE CONTRACT COUNTRY REGION PROJECT NAME SITES MW STATUS PROBABILITY OWNERSHIP SHOVEL-READY REGIME - Project secured. Greenfield 1 Japan South FiT 1 24 - FiT secured. P50 85% Q1-2016 Project 1 - Land contract…
SUMMARY 32
OVERALL PROJECT PORTFOLIO POTENTIAL GROWTH MW Net Installed Capacity Evolution 300 56.1 (2) 293+ (3) Almost 5x growth in installed capacity 250 27 72 200 150 (2) 21.5 (2) (1) 8.1 49 100 60 50 0 s r ly…
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 35
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 February 2, 2015…
Contact Details Etrion Corporation Rue de la Rtisserie 1 1204 Geneva Switzerland Phone: +41 22 715 20 90 Email: infoetrion.com Website: www.etrion.com 37
Loading...
