Göran Mörnhed President & CEO

Transcription

1 1 Göran Mörnhed President & CEO

2 2 Forward-Looking Statements This presentation contains forward-looking statements relating to expected future events and financial and operating results of the Fund that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund s securities filings including the final prospectus filed with the Canadian securities regulatory authorities on March 29, Due to the potential impact of these factors, the Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. Non-GAAP Measures EBITDA and distributable cash are non-gaap measures, but management believes they are useful in calculating the Fund s performance. Readers are cautioned that these measures should not be construed as alternatives to net income or loss or other comparable measures determined in accordance with GAAP as an indicator of the Fund s performance or as a measure of the Fund s liquidity and cash flow. The Fund s method of calculating non-gaap measures may differ from the measures used by other issuers and accordingly, the Fund s non-gaap measures may not be comparable to similarly titled measures used by other issuers. Countryside PIF Reliable Cash Distributions Growth Potential

3 3 Introduction to Countryside Launched fund in April 2004 Investments in Renewable Power and Utility Infrastructure in U.S. and Canada Growth strategy centered in U.S. market Internal management with industry experience Objectives Stable Cash Distributions Distribution Growth Internal growth & expansion New power projects

4 4 Achievements in 2004 Reported Solid Financial Results Stable Operations Completed Improvements for District Energy Systems Delivered Unitholder Distributions Fund Structure The Fund USEB Loans USEB Royalty Interest 100% Unitholders Countryside Canada 22 U.S. Renewable Projects 100% PEI System DISTRICT ENERGY London System 100%

5 5 Cornerstones of Strength Long-term Revenue & Fuel Supply Agreements Diversified Portfolio of Assets Fund Structure Conservative Capital Structure Corporate Governance Independent Board makes all major decisions Independent Audit and Governance Committees Compliance with TSX Guidelines Committed to updating practices

6 6 O V E R V I E W O F I N V E S T M E N T S Investment Portfolio 2004 Revenue Utility Infrastructure Renewable Energy AZ 58% 42% IL ON LONDON PEI CHARLOTTETOWN NY PA VA VT NH MA NJ

7 7 Utility Infrastructure District Energy Characteristics High Reliability High Customer Retention High Barriers to Entry Low Marginal Cost to Add Customers Low Operating Costs District Energy Systems Customers Government Hospitals Schools & Apt. Buildings Commercial & Industrial

8 8 PEI System Products Capacity Fuel Contracts Steam Hot Water Electricity 63 Mw Biomass & Waste Long-Term Pass-through of Fuel Prices London System Products Capacity Fuel Contracts Steam Chilled Water Electricity 59 Mw Natural Gas Long-Term Pass-through of Fuel Prices

9 9 District Energy Systems Production on Target MWh PEI London 300, , , , ,000 50, District Energy Growth Opportunities Growth Completed to Date Improvements completed at both systems $300k to $500k in incremental annual cash flow Near-Term Growth Opportunities Convert London System to biomass fuel Conversion will increase margins Seek Ontario renewable qualification

10 10 District Energy Investment Meets Our Investment Criteria Strong Asset Quality Cost Competitiveness Stable Cash Flows Creditworthy Customers Advantages of Renewable Power Low Cost Fuel Environmental Benefits Premium Value of Power Government Support

11 11 U.S. Energy Biogas Corp. (USEB) USEB Renewable Portfolio Capacity 22 biogas fuelled renewable projects 51 MW of electric power 750,000 mmbtu annually of biogas sales U.S. Energy Biogas Corp. (USEB) Countryside s Investment in USEB $105 MM Secured Loan 95% of 2004 investment income Priority cash flow $7.5 MM Convertible Royalty Interest Upside sharing in USEB growth Convertible option maintains perpetual cash flow

12 12 USEB Production MWh 400, , , , , , ,000 50,000 0 Stable Operating Performance Electricity Gas Sales mmbtu Biogas Production Long Production Life Open Closed Biogas Flow Y E A R S

13 13 Renewable Power Investment Meets Our Investment Criteria Strong Asset Quality Cost Competitiveness Stable Cash Flows Creditworthy Customers Ed Campana Executive VP & CFO

14 14 F I N A N C I A L R E V I E W Fund Structure 2004 Cash Flow Utility Infrastructure Cash Flow 29% USEB Renewable Power Priority Loan: Cash Flow 68% Royalty: Cash Flow 3% USEB Shareholders Equity (subordinated) The Fund Unitholder Distributions

15 15 Fund Financial Review 9-Month Period Ended December 31, 2004 Cdn $ M USEB Loans USEB Royalty DE Systems Revenue EBITDA Net Income DE Systems Financial Review Cdn $ M Periods Ended Dec. 31, 2004 EBITDA Revenues 9 Months Months 2004

16 16 USEB Financial Review 9 Months Ended December 31, 2004 (US$) Financial Performance Cdn $ M Recurring Non-recurring Revenue EBITDA Debt Service Fund - Q Financial Review Cdn $ M USEB Loans DE Systems Revenue EBITDA Net Income

17 17 Fund - Distributable Cash LTM Ended 03/31/05 Cdn $ M % Payout Ratio Distributable Cash Distributions Declared Financial Strategy Make Capital Structure More Competitive for Growth Hedge Interest Rate & Foreign Exchange Risk Maintain Ample Level of Liquidity

18 18 Göran Mörnhed President & CEO G R O W T H F O C U S

19 19 Growth Strategy Internal Growth Expand existing customer base Improve efficiency Increase production and sales External Growth Acquire power and utility infrastructure assets Focus on U.S. market Diversify by fuel source & technology Acquisition Strategy Leverage Market & Technology Expertise Cogeneration District Energy Green Energy

20 20 Market Overview Growing support for renewable power Kyoto Protocol obligations in Canada State & federal support in U.S. Trend toward energy independence in U.S. Offset rising price of oil & natural gas Shift in ownership of unregulated assets Offers consolidation & partnership opportunities Renewable Energy Business Power Generation From Renewable Resources 000s GWh P Source: Energy Information Administration, Annual Energy Outlook 2004

21 21 Summary Solid Operating Results & Fund Structure Long-Term Revenue & Fuel Contracts Strong Foundation for Cash Flow Sustainability Sound Corporate Governance Accretive Growth Opportunities