Pure Cycle Corporation · NASDAQ:PCYO
Pure Cycle — Investor Presentation (April 2021)
28 slides from Pure Cycle's investor presentation, Apr 15, 2021
Slide 1: Pure Cycle Corporation
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Slide 2: Safe Harbor Statement
Overview SAFE HARBOR STATEMENT So ote oe a ee ee Iookng statements" CFLS" within the meaning ofthe Private Secures Ligation Reform het of 199, Section 27A a = the Serles net f 1889 and Secon 21 ofthe Secures Exchange Act af Stay amende, FLSivowe rts and WY Crore le Du Goi Clas’ ea al Gu Olle Fear Pi
Slide 3: Water and Wastewater Resource Development Segment
Water and Wastewater Resource Development Segment + Own a large and valuable portfolio of water rights + Sustainable ground and surface water rights we estimate can serve up to 60,000 SFEs + Denver metro land development requires developers to have water service asa condition of zoning, offering us
Slide 4: Pure Cycle Corporation
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Slide 5: Wholesale Water and Wastewater at a Glance
WHOLESALE WATER AND WASTEWATER Wells/Diversion AT A GLANCE | Oe Wastewater Collection Irrigation reuse Use
Slide 6: Reclamation Facility construction completed
+ Construction of this $10 million investment completed in February + Comprised of a state-of-the-art two-story 30’ x 60’ pretreatment building and a two- story 69’ x 167’ main plant structur RECLAMATION FACILITY (100% Reuse Facility) ctive odor control technology. + Provides highly treated irrigati
Slide 7: Water Services Monthly Water Customers
Water Services Monthly Water Customers 5,000 5,000 Growth from: a0 4570 New Residential 4,000 4070 New service customers added 3570 with every neighborhood 3,500 5 3,000 3.070 New Commercial Future Sky Ranch 2,500 2570 commercial phases 2,000 2,070 Existing Residential 1,500 1,570 Elbert and hwy 86
Slide 8: Water/WW Tap Fees
Water/WW Tap Fees Inmillions (Current Rates)
Slide 9: Pure Cycle Corporation
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Slide 11: Sky Ranch Phase 1: all lots delivered (509)
+ All lots delivered (509) PHASE 1 + Nearly 300 residents + 115 homes under construction + Estimated that homes will be fully sold out by December 2021 + Recognized $36.7 million in lot revenue to date + Recognized $11.5 million in tap fees to date 5 taylor | POW RGITERS morrison .... @ RICHVIOND AM
Slide 12: Sky Ranch Filing 2 lots and partnering homebuilders
+ Approximately 900 lots in total + 800 lots under contract with home builders + 100+ lots reserved for BTR purposes (In yellow) + Broke ground February 2021 + Initial lots expected to be delivered late calendar 2021 + Estimated lot revenues of $72.6 million + Estimated tap fees of $21.5 million + E
Slide 13: Sky Ranch Filing 1 and Filing 2 comparison
SKY RANCH " ve Filing 1-506 Lots Revenues (nt Sales $36.7 million Current Reimbursables $10.5 million 200m 900 Lots Future Reimbursements $21.1 million* 506 Lots Tapfees, $14.9 million** 1008 sgnn00 Costs $35.8 million sa = illog 1Revenoes Flog Revenues Remaining Revenver Filing 2-900 Lots eee Lot S
Slide 14: Pure Cycle Corporation
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Slide 15: Build-to-Rent
BUILD-TO-RENT Build-to-Rent (BTR) is the construction of single family homes with the intent to retain them for long-term rental purposes. Pure Cycle is working with experienced home builders to construct these houses, which Pure Cycle will own and maintain these properties, taking on a new role as
Slide 16: Market
| Market ‘a RE@COLORADO’ With cise es ‘#7 % Howes cose i aie assy 518 Inte Dever Mtoe heh, 5169 r 4529 BA 15% prices B3%NEwusn Tesuhouthemonth sterstgtt G37 "Housing demand in the Denver area continues to outpace supply, and as a result of increasing costs and the need for large down payments, the s
Slide 17: Sky Ranch - Life Within Reach
Sky Ranch - Life Within Reach 17.
Slide 18: Pro Forma
Pro Forma Single house Monthly 2,800 $ Rental income $ Operations, repairs and maintenance Property Taxes and insurance Interest Expense Cash flow Pro Forma Single house Annualized 33,600 1,800 4,780 11,337 15,683 Assumptions + Rental income is estimated based on average rental rate: + Optional addi
Slide 19: Per House Estimates
PER HOUSE ESTIMATES Capitalized costs Financed costs Fair market value $342K $317K $450K Assumptions 15 Year Forecast - 100 Homes + Flexible debt usage, up to 80% of appraised value + Low cost capital (3.75%) + House fair market value estimated at $450,000 based on homes sold in Sky Ranch per NMLS +
Slide 20: Pure Cycle Corporation
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Slide 21: Five Possible Formations
Five Possible Formations Pad Development: 40 Acre spacing 16 wells/mile formation Over 10,000 well capacity Average $250,000 per well __— A sty Ranch — GaeCateton ‘Water Tresiton P_wWensDrite to ite 2019 Sky Ranch Arapahoe County Fairgrounds 21.
Slide 22: Pure Cycle Corporation
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Slide 23: Revenue
Revenue vo 25708 © um segen @ Unsdedtepmet Since the inception of Sky Ranch we have recognized: $29.4 sunionin other income from Reimbursables* ‘$18.9 in Q2-2021" Six Months Ended February 28, 2021 Gross Margin (oo Net Income ow sa35 Pee SGGb eas rea ens prezon7 Peete During the three months ended F
Slide 24: Summary Balance Sheet Information
SUMMARY BALANCE SHEET INFORMATION ASSETS: February 28, 2021 August 31,2020 (Unaudited) Land development Phase 2 151 Allother current assets: i u fe 30,730, E Current Liabilities: All other current liabilities é FS es Total liabilities g TINT ‘Total shareholders’ equity : :
Slide 25: Summary Income Statement Information
SUMMARY INCOME STATEMENT INFORMATION “Three Months Endod ‘Six Months Ended Fopruary 782021 February 292070 February 262021 February 292020 Tonaudited) Tonaudited) i i i ‘Wastewater treatment revenues i a | i i : i i qi Ps i | i 3 ee am E- & ie ‘Lot fee construction cost incurred 3 i i | i i H 4 ‘ 10
Slide 26: Leadership and Board of Directors
SHIP AND BOARD OF DIRECTORS Mark W. Harding Kevin B. McNeill President and CEO Vice President and CFO rick A. Fendel Ill or Daniel R. Kozlowski : Director 26.
Slide 27: Contact and Company Information
CONTACT AND COMPANY INFORMATION CORPORATE HEADQUARTERS Questio ns2 34501 E. Quincy Ave, BLDG 34, Watkins, CO 80137 CONTACT INFO info@purecyclewater.com Stock Price Range 303-292-3456 www.purecyclewater.com “ 2 f Follow us on twitter y me [ ir @PureCycleCorp | ‘ STOCK INFO x = Ticker symbol (NASDAQ C
Slide 28: Pure Cycle Corporation
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