Emerging Markets Power Generation Investor Presentation October - - PowerPoint PPT Presentation
Emerging Markets Power Generation Investor Presentation October - - PowerPoint PPT Presentation
Emerging Markets Power Generation Investor Presentation October 2019 TSX.V: JPWR.UN TSX.V: JPWR.UN 0 CAUTIONARY NOTES This presentation (the Presentation) has been prepared by Jade Power Trust (the Trust) and is being delivered
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CAUTIONARY NOTES
This presentation (the “Presentation”) has been prepared by Jade Power Trust (the “Trust”) and is being delivered for information purposes only. The Presentation is confidential and is made available strictly on the basis that it will not be reproduced, redistributed or disclosed, in whole or in part, to any other person at any time, nor its contents disclosed or used for any purpose, without the prior written consent of the Trust. The Presentation does not contain all information that a prospective investor may require. It is an overview only and does not contain all information necessary for investment decisions. Unless otherwise specified in the Presentation, information contained in the Presentation may not always be current. No reliance may be placed for any purpose whatsoever on the information contained in the Presentation or on its completeness, and no liability whatsoever is accepted for any loss howsoever arising from any use
- f the presentation or its contents or otherwise in connection therewith. For further information on the Trust visit its profile at
www.sedar.com. Certain statements contained in the Presentation constitute forward-looking statements and forward-looking information (collectively, “forward-looking statements”) and the Trust cautions recipients of the presentation about important factors that could cause the Trust’s actual results to differ materially from those projected in any forward-looking statements included in the presentation. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “will likely result”, “are expected to”, “expects”, “will continue”, “is anticipated”, “anticipates”, “believes”, “estimated”, “intends”, “plans”, “forecast”, “projection” and “outlook”) are not historical facts and may be forward- looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct, and such forward-looking statements included in the Presentation should not be relied upon. In addition, the Presentation may contain forward-looking statements attributed to third party industry sources. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the information and factors discussed throughout the Presentation and on the Trust’s SEDAR profile at www.sedar.com. Neither the Presentation nor any copy of it may be taken or transmitted except in compliance with the applicable securities laws. By accepting the Presentation, the recipient represents and warrants that it is a person to whom the presentation may be delivered or distributed without a violation of the laws of any relevant jurisdiction. No securities commission or other regulatory authority in any jurisdiction has passed upon this information. The Presentation and the information do not constitute an offer of securities for sale in the United States. All amounts are in Canadian Dollars, unless otherwise noted.
October 2019
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JADEPOWER Highlights
- Revenue & profit generating
- Tax efficient trust structure
- 100% clean energy production
- Long-term offtakes on all production
- Newly re-named Jade Power Trust
(TSX-V: JPWR.UN) to align with the core strategy of focusing on emerging markets clean energy generation
October 2019
AT A GLANCE
Total O l Operatin ing P Projects Total I l Installe lled C Capacit ity Rev even enues es
Pr Prod
- duction
- n1
81 MW 6 2018 - $17.3 M 2019 H1 - $9.0M 2018 – 147,544 MWh 2019 H1 – 84,698 MWh
1Production from continuing operations
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JADEPOWER Overview
2018 & 2019 H1 QUICK FACTS
Operating Cashflow
2018: $4.2M 2019 H1: $7.3M
Assets
$80M(2018a)
EBITDA
2018: $5.9M 2019 H1: $4.0M
- Publicly Listed on the TSX Venture Exchange (Symbol: JPWR.UN)
- Generates and sells electricity to licensed suppliers in Romania
- Diversified portfolio of wind (81% of production), solar (15%), and hydro (4%) assets
- Generates revenue through EU subsidies (Green Certificates) tied to renewable energy
generation
Revenue
2018: $17.3M 2019 H1: $9.0M
October 2019
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TSX.V: JPWR.UN INVESTMENT HIGHLIGHTS
Long-term Stable Cash Flows from Diversified Portfolio
- Long-term stable and predictable cash flows from long-term power contracts.
- Diversified portfolio with little variation in annual output.
Tax Optimization through Income Trust Structure
- Tax advantaged structure that maximized after-tax cash flows available to be
returned to investors with no taxes payable in Canada on active business income generated around the world.
- Long-term competitive advantage through lower cost-of-capital.
Value Proposition
Capitalizing on Growth Opportunities in Emerging Markets
- Infrastructure and team in place to capitalize on opportunities in emerging
markets with higher return potential than the equivalent opportunities in developed markets.
- Management team with a track record of sourcing, financing and operating
companies in emerging markets.
- Management believes that a portfolio of generation assets by generation type,
geographic location, functional currency, and jurisdiction will a achieve a low risk profile.
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Corporate History
Jun 2014: Acquired Three Producing Renewable Hydro Power Assets. 1) Suha: 2.0MW for €4.0m 2) Zagra: 0.8MW for €4.0m 3) Rott: 1.7MW for €3.85m Dec 2017: Acquired Wind Farm East Wind: 45.0MW for 18.0m by way of Cash Jun 2014 Equity Raise: CAD $21m Feb 2014 Trust Launched Sep 2016: Acquired Wind Farm. Baia: 17.0MW for €14.76m (Comprised of Stock, Debt & Cash) Jul 2015: Acquired two Solar Farms 1) Corabia: 7.0MW for €11.2m 2) PowerLive: 9.6MW for €15.36m Jul 2018: Commenced crypto mining Jul 2015 Equity Raise CAD $13m Oct 2015: Acquired listed shell with $4.0m cash for 4m units of the Trust Sep 2016 Debenture Financing: CAD $3m Dec 2017 Equity Financing: CAD $43m Oct 2015 Equity Raise: CAD $4m Oct 1, 2018: Ceased Crypto Operations
2017 2014-2016 2018
H1 2019: OPERATING TO PLAN NET INCOME = $0.04M or $Nil / Unit OPCF = $7.3M Dec 31, 2018: 95% YOY INCREASE IN PRODUCTION 42% YOY INCREASE IN REVENUES $78.6M WORKING CAPITAL IMPROVEMENT NET INCOME = $5.6M or $0.03 / Unit OPERATING CASH FLOW (“OPCF”) = $4.2M
October 2019
Oct 2019 Name Change to Jade Power from Blockchain Power
H1 2019
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Strategy
Focused on Sustainable Power Generation
Total Capacity:
81MW
CORE BUSINESS: Revenue from Clean Power Generation WIND
Baia: 17.0 MW East Wind: 45.0 MW
HYDRO
Rott: 1.7 MW Zagra: 0.7 MW
SOLAR
Corabia: 7.0 MW PowerLIVE: 9.6 MW October 2019
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EU Green Certificates Explained
EUROPEAN GREEN CERTIFCATE PROGRAM EXPLAINED BENEFITS TO JADEPOWER
- Romania has incentivized the construction and use of renewable energy by implementing a green certificate program.
- EU mandate of 20 by 2020 - 20% of energy from renewable sources by 2020.
- Renewable energy companies are issued a number of Green Certificates dependent on the type and amount of
energy produced.
- The renewable energy companies sell the Green Certificates to electricity suppliers to receive a secondary revenue
stream, improving project returns.
- Green Certificates are priced according to market dynamics subject to a ceiling and floor price:
- Ceiling price of EUR59.80
- Floor price of EUR29.30
- Floor and ceiling price subject to inflation adjustments
- Revenue from Green Certificates exceeds that of the energy sold to market.
- With Jade Power’s current portfolio (as at Dec 2018):
- 35% of Revenue has come from the sale of electricity
- 65% of Revenue comes from the Green Certificate incentive
October 2019
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Performance Metrics
October 2019
1Includes only pre-acquisition production; prior periods have been restated to exclude discontinued operations
CASH: $1.3M EBITDA: $5.9M
2018 PERFORMANCE
Gross Revenue
MW MW Produced
ENERGY GENERATION1 REVENUE PERFORMANCE
2014 2015 2016 2017 2018 2019H1
17,277 43,277 75,152 5,068 147,544
2018: 96% YOY Increase
2014 2015 2016 2017 2018 2019H1
$3.5M $8.7M $12.3M $0.4M
2018: 42% YOY Increase
$17.3M
2019 H1 PERFORMANCE
CASH: $3.4M EBITDA: $4.0M
$9.0M 84,698
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Debt Profile
Corporate Level: $3.8M PowerLive: $11.1M Corabia: $8.1M Baia: $4.9M Total Debt: $27.9M Debt Repayment: under 5 years NET ASSETS & TOTAL DEBT Q2 2019 DEBT SUMMARY
Net Assets Debt 2014 2015 2016 2017 2018 Q2 2019 $11.4M $44.9M $59.7M $97.6M $(37.5)M $44.4M $(1.6)M $7.8M $4.7M $27.9M $31.1M October 2019
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CAPITAL STRUCTURE as at June 30, 2019 TSX-V: JPWR.UN $0.135 230M Nil 45M @ $0.80 (Exp. 08/20) $31.1M $27.8M $58.9M
Capital Structure
Key Shareholders Management & Insiders 2.2% Renovatio Group Limited 22.8% MMCAP International Inc. 16.1% Widely Held 58.9%
- 100%
Ticker Symbol Share Price Shares Outstanding Options Outstanding Warrants Outstanding Market Cap Debt Enterprise Value Capital Structure
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Ravi is the Chairman and co-founder of Jade Power Trust. He is an entrepreneur and previously was CEO of an investment management company. He has closed over $1.5B in equity and debt financings and has concluded acquisitions and divestitures
- n 5 continents. He holds a degree in Mathematics from the
University of Waterloo where he was a Descartes Fellow and the recipient of numerous scholarships and awards.
Leadership
Management and Board of Directors
Ravi Sood Chairman
- J. Colter Eadie
CEO
Colter is the Chief Executive Officer and co-founder of Jade Power Trust. He has lived in Romania since 2013. He took the Trust public as well as negotiated and concluded 7 acquisitions/business integrations subsequent to the go public effort. Colter has a background in large-scale project development including permitting, procurement, and construction.
Betty Soares CFO
Betty is the Chief Financial Officer of Jade Power with over 15 years experience in finance leadership, backed by operational & technological expertise. She’s been involved in numerous M&A and financing transactions. Additionally, she has led various transformation leadership projects. She is a CPA with a Bachelors of Business Administration (Honours) from Wilfrid Laurier University and is an MBA (candidate) from Rotman School of Management (University of Toronto) and from the School of Management (Bocconi University). John was previously President of Algonquin Power Corporation, a builder, developer and operator of power generation facilities in Canada & United States. He holds a Bachelor of Laws degree from Osgoode Hall Law School.
John Huxley Director
Amar is a private investor and real estate developer. Amar serves on the board of several public and private companies. He is a CFA charter holder, a member of the Institute of Corporate Directors, and holds a BA Economics from McGill University.
Amar Bhalla Director
Savneet in an entrepreneur and investor having co-founded GBI, the first digital platform that allows users to buy, store, and trade precious metals and backed several leading fintech platforms. Savneet has been named to the Forbes Top 30 under 30 and Crain’s Top 40 under 40. He received his B.S. in Applied Economics and Management from Cornell University
Savneet Singh Director
- Mr. Barclay is MD & Principal of B4 Capital, LLC, a private
investment company which invests in a diverse portfolio of asset classes. Mr. Barclay previously served for more than 12 years as Senior Vice President and General Counsel of Republic Services, Inc., a non-hazardous solid waste collection and disposal company listed on the NYSE.
David Barclay Director
- Mr. Steers career focused on the development of major
infrastructure projects in Latin America and Africa. He is Chair
- f Arht Media Inc., Director of PetroRio S.A., Lara Exploration
- Ltd. and Routemaster Capital Inc. Mr. Steers holds an HBA from
the University Western Ontario.
William C. Steers Director
October 2019
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RAVI SOOD Chairman rsood@jadepower.com Mobile: +1 647 987 7663 J.COLTER EADIE Chief Executive Officer jceadie@jadepower.com Mobile: +40 736 372 724 BETTY SOARES Chief Financial Officer bsoares@jadepower.com Mobile: +1 416 803 6760
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Energy Portfolio
Operations: Wind, Solar, Hydro
Unique Investment Vehicle Unique Investment Vehicle Unique Investment Vehicle
Project Name(s): East Wind, Baia Generation Type: Wind Installed Capacity: 62 MW Avg Annual Generation: 132,000 MWh Hardware (Turbines): 22 Vestas V90 Land Owned: 5 acres Date Acquired: Dec 2017 & Sep 2016 EU Subsidy Ends: 2028 Project Name(s): Corabia, PowerLIVE Generation Type: Solar Installed Capacity: 16.6 MW Avg Annual Generation: 21,100 MWh Hardware: REC Modules Land Owned: 126 acres Date Acquired: July, 2015 EU Subsidy Ends: 2035 Project Name(s): Zagra, Rott Generation Type: Run-of River Hydro Installed Capacity: 2.5 MW Avg Annual Generation: 10,500 MWh Hardware: Pelton Turbines Date Acquired: June, 2014 EU Subsidy Ends: 2028
- 81MW
capacity
- 2018
Operating Margin of $8.5M1
- 2019 H1
Operating Margin of $6.0M1
OPERATING CLEAN ENERGY PORTFOLIO
1Operating Margin is equal to revenues minus cost of sales excluding depreciation
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Romania Romania joined the European Union (EU) on 1 January 2007
Stable Electricity Infrastructure
- Total Energy Network capacity originally built
for 36 TWH; currently only being utilized at 12 TWH (1/3 Capacity).
- 400 KV Ring with strong interconnections with
neighboring countries means stable and on demand power as needed. Abundant natural resources and generation mix
- Stable and Mixed Generation Capacity including large
scale hydro, nuclear, wind, gas and coal means ability to deliver baseload energy under any circumstance. Reliable Internet infrastructure Rule of Law, Strong FDI and Investors Protection Rights
- Romania’s body of law is governed by European Union
“EU”
Ukraine
Serb ia
ermany Italy
Czech Rep
Slovakia Austria
Poland
Bulgaria
Romania
Croatia
Hungary
Greece
Slovenia
g
Low Corporate Tax Rate
- The standard tax rate is 16% for both Romanian and
foreign companies Highly Educated and Affordable Workforce
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Strategic Shareholder
Renovatio Group
- Renovatio Group is a strategic shareholder of Jade
Power Trust holding approximately 51.9M units (22% currently outstanding)
- Integrated operator (development, generation,
trading, asset management) in the renewable energy sector
- Has completed over 1,000 MW of projects in
Romania – over EUR 1 Billion in Capital Expenditures
- JV/Equity Partnership with World bank IFC, EBRD,
EDPR and others
- Project Development Pipeline globally in excess of
2,000 MW
- Headquartered in Cyprus and Portugal; key
- perating centers in Romania and Colombia
KEY FACTS
October 2019