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 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 of 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. TSX.V: JPWR.UN 1 October 2019
JADE POWER Highlights AT A GLANCE Total O l Operatin ing P Projects 6 • Revenue & profit generating • Tax efficient trust structure Total I l Installe lled C Capacit ity • 100% clean energy production 81 MW • Long-term offtakes on all production • Newly re-named Jade Power Trust Rev even enues es (TSX-V: JPWR.UN) to align with the 2018 - $17.3 M core strategy of focusing on emerging 2019 H1 - $9.0M markets clean energy generation Pr Prod oduction on 1 2018 – 147,544 MWh 2019 H1 – 84,698 MWh 1 Production from continuing operations TSX.V: JPWR.UN 2 October 2019
JADE POWER Overview • 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 2018 & 2019 H1 QUICK FACTS Revenue EBITDA Assets Operating Cashflow 2018: $17.3M 2018: $5.9M 2018: $4.2M $ 80M (2018a) 2019 H1: $9.0M 2019 H1: $4.0M 2019 H1: $7.3M TSX.V: JPWR.UN 3 October 2019
Value Proposition INVESTMENT HIGHLIGHTS Long-term Stable • Long-term stable and predictable cash flows from long-term power contracts. Cash Flows from • Diversified portfolio with little variation in annual output. Diversified Portfolio • Tax advantaged structure that maximized after-tax cash flows available to be Tax Optimization returned to investors with no taxes payable in Canada on active business through Income Trust income generated around the world. Structure • Long-term competitive advantage through lower cost-of-capital. • Infrastructure and team in place to capitalize on opportunities in emerging markets with higher return potential than the equivalent opportunities in developed markets. Capitalizing on • Management team with a track record of sourcing, financing and operating Growth Opportunities companies in emerging markets. 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. TSX.V: JPWR.UN 5 October 2019
Corporate History Feb 2014 Jun 2014 Jul 2015 Oct 2015 Sep 2016 Dec 2017 Oct 2019 Trust Equity Equity Raise Equity Debenture Equity Financing: Name Change to Launched Raise: CAD $13m Raise: Financing: CAD $43m Jade Power from CAD $21m CAD $4m CAD $3m Blockchain Power 2014-2016 2017 2018 H1 2019 Dec 2017: Jul 2018: H1 2019: Jun 2014 : Acquired Wind Farm Commenced OPERATING TO PLAN Acquired Three Producing crypto mining East Wind: 45.0MW for 18.0m Renewable Hydro Power Assets. NET INCOME = by way of Cash $0.04M or $Nil / Unit 1) Suha: 2.0MW for €4.0m Oct 1, 2018: OPCF = $7.3M 2) Zagra: 0.8MW for €4.0m Sep 2016: Ceased Crypto Operations 3) Rott: 1.7MW for €3.85m Acquired Wind Farm. Dec 31, 2018: Baia: 17.0MW for €14.76m (Comprised of Stock, Debt & Cash) 95% YOY INCREASE IN PRODUCTION 42% YOY INCREASE IN REVENUES Jul 2015: Acquired two Solar Farms Oct 2015: $78.6M WORKING CAPITAL IMPROVEMENT 1) Corabia: 7.0MW for €11.2m Acquired listed shell with $4.0m cash NET INCOME = $5.6M or $0.03 / Unit 2) PowerLive: 9.6MW for €15.36m for 4m units of the Trust OPERATING CASH FLOW (“OPCF”) = $4.2M TSX.V: JPWR.UN 6 October 2019
Strategy Focused on Sustainable Power Generation CORE BUSINESS: Revenue from Clean Power Generation SOLAR HYDRO WIND Corabia: 7.0 MW Rott: 1.7 MW Baia: 17.0 MW PowerLIVE: 9.6 MW Zagra: 0.7 MW East Wind: 45.0 MW Total Capacity: 81MW TSX.V: JPWR.UN 7 October 2019
EU Green Certificates Explained EUROPEAN GREEN CERTIFCATE PROGRAM EXPLAINED • 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 BENEFITS TO JADEPOWER • 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 TSX.V: JPWR.UN 8 October 2019
Performance Metrics ENERGY GENERATION 1 REVENUE PERFORMANCE 2018 PERFORMANCE 147,544 CASH: $1.3M 2018: 2018: $17.3M 96% YOY Increase 42% YOY Increase EBITDA: $5.9M 84,698 75,152 $12.3M 2019 H1 PERFORMANCE $9.0M 43,277 $8.7M $3.5M 17,277 CASH: $3.4M 5,068 $0.4M EBITDA: $4.0M 2014 2015 2016 2017 2018 2019H1 2014 2015 2016 2017 2018 2019H1 MW Produced Gross Revenue MW 1 Includes only pre-acquisition production; prior periods have been restated to exclude discontinued operations TSX.V: JPWR.UN 9 October 2019
Debt Profile NET ASSETS & TOTAL DEBT Q2 2019 DEBT SUMMARY $44.4M $7.8M Corporate Level: $3.8M $4.7M $(1.6)M PowerLive: $11.1M Corabia: $8.1M Baia: $4.9M $97.6M Total Debt: $27.9M $(37.5)M Debt Repayment: under 5 years $59.7M $44.9M $31.1M $27.9M $11.4M 2014 2015 2016 2017 2018 Q2 2019 Net Assets Debt TSX.V: JPWR.UN 10 October 2019
Capital Structure CAPITAL STRUCTURE as at June 30, 2019 Capital Structure Key Shareholders Management & Insiders 2.2% Ticker Symbol TSX-V: JPWR.UN Renovatio Group Limited 22.8% Share Price $0.135 MMCAP International Inc. 16.1% Shares Outstanding 230M Widely Held 58.9% Options Outstanding Nil --------- 100% Warrants Outstanding 45M @ $0.80 (Exp. 08/20) Market Cap $31.1M Debt $27.8M Enterprise Value $58.9M TSX.V: JPWR.UN 11 October 2019
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