Download - October 2019 - Jade Power: Home
0TSX.V: JPWR.UN
Emerging Markets Power Generation
Investor PresentationOctober 2019
TSX.V: JPWR.UN
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CAUTIONARY NOTES
This presentation (the “Presentation”) has been prepared by Jade Power Trust (the “Trust”) and is being delivered for informationpurposes only. The Presentation is confidential and is made available strictly on the basis that it will not be reproduced, redistributed ordisclosed, in whole or in part, to any other person at any time, nor its contents disclosed or used for any purpose, without the prior writtenconsent of the Trust. The Presentation does not contain all information that a prospective investor may require. It is an overview only anddoes not contain all information necessary for investment decisions. Unless otherwise specified in the Presentation, informationcontained in the Presentation may not always be current. No reliance may be placed for any purpose whatsoever on the informationcontained in the Presentation or on its completeness, and no liability whatsoever is accepted for any loss howsoever arising from any useof the presentation or its contents or otherwise in connection therewith. For further information on the Trust visit its profile atwww.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’sactual results to differ materially from those projected in any forward-looking statements included in the presentation. Any statements thatexpress, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but notalways, 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 differmaterially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to becorrect, and such forward-looking statements included in the Presentation should not be relied upon. In addition, the Presentation maycontain forward-looking statements attributed to third party industry sources. Accordingly, any such statements are qualified in theirentirety by reference to, and are accompanied by, the information and factors discussed throughout the Presentation and on the Trust’sSEDAR 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. Byaccepting the Presentation, the recipient represents and warrants that it is a person to whom the presentation may be delivered ordistributed without a violation of the laws of any relevant jurisdiction. No securities commission or other regulatory authority in anyjurisdiction has passed upon this information. The Presentation and the information do not constitute an offer of securities for sale in theUnited 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 GLANCETotal Operating Projects
Total Installed Capacity
Revenues
Production1
81 MW
6
2018 - $17.3 M2019 H1 - $9.0M
2018 – 147,544 MWh2019 H1 – 84,698 MWh
1Production from continuing operations
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JADEPOWER Overview
2018 & 2019 H1 QUICK FACTS
Operating Cashflow
2018: $4.2M2019 H1: $7.3M
Assets
$80M(2018a)
EBITDA
2018: $5.9M2019 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: $17.3M2019 H1: $9.0M
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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
20172014-2016 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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StrategyFocused 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
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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
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Performance Metrics
October 2019
1Includes only pre-acquisition production; prior periods have been restated to exclude discontinued operations
CASH: $1.3MEBITDA: $5.9M
2018 PERFORMANCE
Gross RevenueMW 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: $3.4MEBITDA: $4.0M
$9.0M
84,698
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Debt Profile
Corporate Level: $3.8MPowerLive: $11.1MCorabia: $8.1MBaia: $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
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CAPITAL STRUCTURE as at June 30, 2019
TSX-V: JPWR.UN$0.135230MNil45M @ $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 SymbolShare Price Shares OutstandingOptions OutstandingWarrants Outstanding
Market Cap Debt Enterprise Value
Capital Structure
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Ravi is the Chairman and co-founder of Jade Power Trust. He isan entrepreneur and previously was CEO of an investmentmanagement company. He has closed over $1.5B in equity anddebt financings and has concluded acquisitions and divestitureson 5 continents. He holds a degree in Mathematics from theUniversity of Waterloo where he was a Descartes Fellow andthe recipient of numerous scholarships and awards.
LeadershipManagement and Board of Directors
Ravi SoodChairman
J. Colter EadieCEO
Colter is the Chief Executive Officer and co-founder of JadePower Trust. He has lived in Romania since 2013. He took theTrust public as well as negotiated and concluded 7acquisitions/business integrations subsequent to the go publiceffort. Colter has a background in large-scale projectdevelopment including permitting, procurement, andconstruction.
Betty SoaresCFO
Betty is the Chief Financial Officer of Jade Power with over 15years experience in finance leadership, backed by operational &technological expertise. She’s been involved in numerous M&Aand financing transactions. Additionally, she has led varioustransformation leadership projects. She is a CPA with aBachelors of Business Administration (Honours) from WilfridLaurier University and is an MBA (candidate) from RotmanSchool of Management (University of Toronto) and from theSchool of Management (Bocconi University).
John was previously President of Algonquin Power Corporation,a builder, developer and operator of power generation facilitiesin Canada & United States. He holds a Bachelor of Laws degreefrom Osgoode Hall Law School.
John HuxleyDirector
Amar is a private investor and real estate developer. Amarserves on the board of several public and private companies.He is a CFA charter holder, a member of the Institute ofCorporate Directors, and holds a BA Economics from McGillUniversity.Amar Bhalla
DirectorSavneet in an entrepreneur and investor having co-foundedGBI, the first digital platform that allows users to buy, store,and trade precious metals and backed several leading fintechplatforms. Savneet has been named to the Forbes Top 30under 30 and Crain’s Top 40 under 40. He received his B.S. inApplied Economics and Management from Cornell UniversitySavneet Singh
Director
Mr. Barclay is MD & Principal of B4 Capital, LLC, a privateinvestment company which invests in a diverse portfolio ofasset classes. Mr. Barclay previously served for more than 12years as Senior Vice President and General Counsel of RepublicServices, Inc., a non-hazardous solid waste collection anddisposal company listed on the NYSE.
David BarclayDirector
Mr. Steers career focused on the development of majorinfrastructure projects in Latin America and Africa. He is Chairof Arht Media Inc., Director of PetroRio S.A., Lara ExplorationLtd. and Routemaster Capital Inc. Mr. Steers holds an HBA fromthe University Western Ontario.
William C. SteersDirector
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RAVI [email protected]: +1 647 987 7663
J.COLTER EADIEChief Executive [email protected]: +40 736 372 724
BETTY SOARESChief Financial [email protected]: +1 416 803 6760
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Energy PortfolioOperations: Wind, Solar, Hydro
Unique Investment Vehicle
Unique Investment Vehicle
Unique Investment Vehicle
Project Name(s): East Wind, BaiaGeneration Type: WindInstalled Capacity: 62 MWAvg Annual Generation: 132,000 MWhHardware (Turbines): 22 Vestas V90 Land Owned: 5 acresDate Acquired: Dec 2017 & Sep 2016EU Subsidy Ends: 2028
Project Name(s): Corabia, PowerLIVEGeneration Type: SolarInstalled Capacity: 16.6 MWAvg Annual Generation: 21,100 MWhHardware: REC ModulesLand Owned: 126 acresDate Acquired: July, 2015EU Subsidy Ends: 2035
Project Name(s): Zagra, RottGeneration Type: Run-of River HydroInstalled Capacity: 2.5 MWAvg Annual Generation: 10,500 MWhHardware: Pelton TurbinesDate Acquired: June, 2014EU 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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RomaniaRomania joined the European Union (EU) on 1 January 2007
Stable Electricity Infrastructure
o Total Energy Network capacity originally builtfor 36 TWH; currently only being utilized at 12TWH (1/3 Capacity).
o 400 KV Ring with strong interconnections withneighboring countries means stable and ondemand power as needed.
Abundant natural resources and generation mix
o Stable and Mixed Generation Capacity including largescale hydro, nuclear, wind, gas and coal means ability todeliver baseload energy under any circumstance.
Reliable Internet infrastructure
Rule of Law, Strong FDI and Investors Protection Rights
o Romania’s body of law is governed by European Union“EU”
Ukraine
Serbia
ermany
Italy
Czech RepSlovakia
Austria
Poland
Bulgaria
RomaniaCroatia
Hungary
Greece
Slovenia
g
Low Corporate Tax Rate
o The standard tax rate is 16% for both Romanian andforeign companies
Highly Educated and Affordable Workforce
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Strategic ShareholderRenovatio 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 operating centers in Romania and Colombia
KEY FACTS
October 2019