Rubicon Water (RWL) Investor Presentation summary

Executive summary and operational update

• Secured record $33 million in US orders for FY24, including a major 5-year FarmConnect contract, marking over 200% growth year-on-year in the US market.

• Strategic review of Chinese operations led to reversal of previously recognized revenue, increasing inventory by ~$3m for redeployment.

• FY24 underlying EBITDA loss expected between $5.3m and $5.8m, an improvement from FY23's $8.8m loss.

• Raising ~$16m via a fully underwritten two-tranche placement and up to $2m via a share purchase plan to reduce debt and support working capital.

• All directors and key management committed to participate in the placement, with $8.8m subject to shareholder approval.

Business overview and growth opportunity

• Over 29 years, delivered $1.08bn in infrastructure and services globally, with 70% of revenue from outside ANZ.

• Installed over 35,000 products in 22 countries, servicing ~2Mha of irrigated land.

• Agriculture must produce 56% more food by 2050, while 40% of the population will face severe water stress; Rubicon targets water losses in agriculture.

• Embedded global operations with manufacturing and assembly in USA, Chile, India, and China; personnel outside ANZ increased from 67 to 140 in five years.

• Signed MoU in Egypt and expanded project footprint to 7 new countries in recent years.

Financial highlights and capital raising

• FY24 revenue expected at $56–60m, with gross margin of 39–41%; pro forma net debt post-raising to reduce from $31.2m to ~$15.2m.

• Placement price set at $0.25 per share, a 21.9% discount to last close; 64m new shares to be issued, representing ~37.1% of current shares.

• Proceeds to repay director and HSBC loans, with facilities remaining in place for future working capital needs.

• Pro forma debt-to-equity ratio to improve from 59% to 22% post-raising.

• Joint Lead Managers are Wilsons Corporate Finance and Morgans Financial.