Successful Canadian Investor in Ukraine October 2018 Disclaimer - - PowerPoint PPT Presentation

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Successful Canadian Investor in Ukraine October 2018 Disclaimer - - PowerPoint PPT Presentation

Successful Canadian Investor in Ukraine October 2018 Disclaimer THIS PRESENTATION HAS BEEN PREPARED BY TIU GROUP OF COMPANIES (TIU) PURELY FOR INFORMATIONAL PURPOSES. THE INFORMATION IN THIS PRESENTATION IS SUBJECT TO UPDATING, COMPLETION,


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Successful Canadian Investor in Ukraine

October 2018

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THIS PRESENTATION HAS BEEN PREPARED BY TIU GROUP OF COMPANIES (“TIU”) PURELY FOR INFORMATIONAL

  • PURPOSES. THE INFORMATION IN THIS PRESENTATION IS SUBJECT TO UPDATING, COMPLETION, REVISION AND
  • AMENDMENT. THIS PRESENTATION DOES 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 INTEREST IN THE

  • COMPANY. NEITHER IT NOR ANY PART OF IT SHALL FORM THE BASIS OF, OR BE RELIED ON IN CONNECTION WITH,

ANY CONTRACT TO PURCHASE OR SUBSCRIBE FOR ANY INTEREST IN THE COMPANY. NO RELIANCE MAY BE PLACED FOR ANY PURPOSE WHATSOEVER ON THE INFORMATION CONTAINED IN THIS PRESENTATION OR ON ITS COMPLETENESS. YOU MAY BE REQUIRED TO RETURN THIS PRESENTATION TO TIU AND MAY NOT RETAIN ANY COPIES THEREOF. AT ANY TIME, THE COMPANY MAY TERMINATE ALL DISCUSSIONS AND NEGOTIATIONS WITH CERTAIN OR ALL POTENTIAL INVESTORS. THE DISTRIBUTION OF THIS PRESENTATION MAY BE RESTRICTED IN CERTAIN JURISDICTIONS. IT IS THE RESPONSIBILITY OF ANY PERSONS IN POSSESSION OF THIS PRESENTATION TO INFORM THEMSELVES OF, AND TO OBSERVE, ALL APPLICABLE LAWS AND REGULATIONS OF ANY RELEVANT JURISDICTION.

Disclaimer

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Background

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▪ Calgary - based family office managing the high risk portion of the Yurkovich family investment portfolio ▪ Investing equity and venture debt into high growth opportunities in North America and internationally ▪ Preferred industries:

  • Energy, including renewables
  • Defense
  • Ag. Technology

▪ Typical investment $3-10 million ▪ TIU is an investment vehicle into the energy sector in Ukraine currently developing a portfolio of renewable projects

Refraction Asset Management Ltd. Fund Manager Refraction 1 Fund GP Ltd. General Partner Refraction 1 Fund LP Limited Partners TIU Group of Companies (CA, NL, UA)

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Investment Attractiveness of Renewables in Ukraine

▪ Opportunities under by the Canada- Ukraine Free Trade Agreement ▪ Ukrainian feed-in tariff (FIT) regime provides attractive returns and guaranteed comfort:

– FIT is fixed in EUR and recalculated quarterly – No localization requirement but additional premium for using local components – PPA guarantees purchase of 100% of the renewable energy produced until the end of 2029 at the set FIT – FIT for ground mounted SPPs is currently set at EUR 0.1502 (C$ 0.225) per KWh

▪ Availability of debt financing from IFIs and local banks

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Investment Attractiveness (cont’d)

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Ukraine 14.3%

IRR

Levered IRR for TIU solar projects in Ukraine is 20%+

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Challenges of Investing in Renewables in Ukraine

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▪ Excessive bureaucracy ▪ Attempts to amend relevant legislation ▪ Obtaining land ownership / lease rights and land re-zoning ▪ Obsolete grid requires upgrades at the point of connection (could be costly) ▪ No bankable PPA at the beginning

  • f construction
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Our presence in Ukraine

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▪ Initial focus on privatization of state-

  • wned energy assets

▪ Subsequently re-focused on investing and developing greenfield renewable energy projects ▪ Manage a fully operational 10.5 MW (DC) SPP in Nikopol, Dnipro region ▪ Have an additional portfolio of solar projects of over 100 MW (DC) in solar projects under construction / development ▪ Reviewing other opportunities in agriculture, energy and other sectors

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Our presence in Ukraine

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Nikopol 10.5 MW SPP -

  • perational

Mykolaiv cluster: 45.5 MW, including 13.5 MW currently under construction Odessa cluster: 65 MW

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Our presence in Ukraine

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Signing the sister city agreement between Nikopol and Lloydminster Nikopol students and teachers touring our facility

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The Ask

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▪ Equity co-investors in approx. 100 MW of solar projects shovel ready by year end 2018 ▪ Cheaper sources of debt financing, specifically project financing To learn more about this investment opportunity, please contact Vladimir Lizunov, CFA VP Finance and Corporate Development TIU Group of Companies 202 6 Ave SW Suite 1110, Calgary, AB T2P 2R9 +1 (403) 613-6085 vlizunov@tiucanada.com