Rubicon Water Limited · ASX:RWL
Rubicon Water — H1 FY2024 Earnings Presentation
26 slides from Rubicon Water's earnings presentation, Feb 29, 2024
Slide 1: Rubicon Water 1H FY24 Results Presentation
California, USA RUBICON WATER 1H FY24 Results Presentation 29 February 2023 Presenters: Bruce Rodgerson CEO / Andrew Bendall CFO ASX:RWL 1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by Rubicon Water Limited (Company) to provide summary information ‒ if you are outside Australia, you are a person to whom the provision of the information in this presentation is about the Company and its associated entities which
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER None of the Advisers have authorised, permitted or caused the issue or lodgement, submission, dispatch or Company. None of the Company, or any other Limited Party, makes any representation or warranty as to the provision of this presentation and there is no statement
Slide 4: Dedicated to addressing water scarcity
Dedicated to addressing water scarcity by providing innovative solutions to governments, water management utilities, and growers. Our mission is to increase water availability and agricultural productivity through improved water-use efficiency. With advanced technology and a focus on precision water
Slide 5: Overview
OVERVIEW Negative operating cashflow in H1 H1 FY24 On track to return to FY24 of $8.5m, as a result of profitability in delayed payments of greater than Revenue of $33.3m - up FY24 and achieve $10m. 23% on pcp. sustainable growth Underlying EBITDA moving forward. Forecast to be cashflow positive in
Slide 6: 1H FY24 Results
1H FY24 RESULTS 6
Slide 7: 1H FY24 Results
1H FY24 RESULTS 1H FY24 1H FY23 Underlying EBITDA loss of $0.7m consistent with $'m $'m expectation to return to profitability for the full year. Included recognition of some Asian segment Revenue 33.3 27.2 contract revenues previously delayed at the FY23 results. Gross margin 14.3 9.6 Gross margin
Slide 8: Revenue Performance
REVENUE PERFORMANCE 1H FY24 1H FY23 1H FY24 1H FY23 BY SEGMENT BY TYPE $'m $'m $'m $'m ANZ 9.8 9.4 Hardware 24.8 20.6 Asia 8.9 5.1 Software & Support 3.5 3.7 ROW 14.6 12.7 Other Components & Support 5.0 2.9 Total 33.3 27.2 Total 33.3 27.2 ANZ Asia ROW Recurring Revenue ANZ up $0.4m (3.8%) vs pcp: As
Slide 9: Cash Flow
CASH FLOW Strategic Investments International Contracts SUMMARY 1H FY24 1H FY23 $’000 $’000 c.$10m negative impact Higher sales led to an Cash receipts from key to cash flow from increase in contract assets markets forecast to operations from delay and a corresponding improve in Q3 FY24. Cash flows
Slide 10: Balance Sheet
BALANCE SHEET Business maintains a significant asset base of c.$111m, with net 31 Dec 30 Jun 2023 assets of c.$60m. 2023 $’000 $’000 $4.6m reduction in inventory, as excess safety levels due to COVID- Current assets 84,608 93,058 related supply chain issues continued to be unwound. Non-current asset
Slide 11: Global Thematics in Key Markets
GLOBAL THEMATICS IN KEY MARKETS 11 Source: FAO AQUASTAT; https://www.wri.org/applications/aqueduct/water-risk-atlas
Slide 12: USA Market Position
USA MARKET POSITION Rubicon Water is well-positioned to make a substantial impact to drought affected river basins. Signed over AUD$18m Well-regarded and Strong of projects in FYTD, recognised throughout competitive exceeding record FY the US. position. revenue result by 40%. Technology delivered to
Slide 13: Increasing Value of Water in the USA
INCREASING VALUE OF WATER IN THE USA Value of water per acre-foot in the Colorado River Basin is between USD$300-800. 13
Slide 14: US Committing $15.4bn for Drought Resiliency
US COMMITTING $15.4BN FOR DROUGHT RESILIENCY Marking the largest investment for climate resilience in the nation’s history. USD$15.4bn USD$4bn Anticipating (2023-2026) increased investment Signed for drought Allocated in 2023, with an estimated of the funding from resiliency measures. $2.8bn dedicat
Slide 15: USA – A Familiar Narrative Unfolding
USA – A FAMILIAR NARRATIVE UNFOLDING Water crisis, 19-year drought, increasing demand, national climate resiliency measures and value of water driving change throughout the USA – A similar narrative to Australia in the early 2000’s. Historical sales - Australia vs USA market ($AUD Million) 80 AUS pe
Slide 16: USA – National Value Proposition to Modernise
USA – NATIONAL VALUE PROPOSITION TO MODERNISE USA Country Data USA value proposition based on RWL Serviceable Addressable Market (SAM) ~28Mha Annual Annual value Total cost to Distribution System Present Value Total area equipped for distribution water of saving modernise Payback of saving irrigatio
Slide 17: Key Regional Serviceable Addressable Market
KEY REGIONAL SERVICEABLE ADDRESSABLE MARKET Anticipating market over the next 5-10 years. MANAGEMENT ESTIMATE BASED ON FAO DATA ($AUD) KAZ ITALY $0.84bn $0.74bn RWL SAM RWL SAM $1.86bn total investment* $2.1bn total investment* MOROCCO $0.26bn USA RWL SAM $3.23bn 27 RWL SAM $0.65bn total investment*
Slide 18: India Market Overview
INDIA MARKET OVERVIEW Pipeline positive. Notably A$91m in revenue generated and proven technology setting benchmark. USD$7.7bn Timing unpredictable, investment opportunities dedicated to undeniable. developing Market share irrigation. unaffected. AUD $90m NLBC project in revenue secured gaining posi
Slide 19: India – Market Opportunity
INDIA – MARKET OPPORTUNITY India Country Data RWL Serviceable Addressable Market (SAM) Serviceable Total cost to surface area modernise ~61.90Mha Total area equipped for ($AUD) irrigation ~22.50Mha 14.5Mha $18.14bn Total area serviced by surface water 54% Overall water requirement ratio (efficiency)
Slide 20: Egypt Market Overview
EGYPT MARKET OVERVIEW Emerging opportunities on the back of ambitious developments, exacerbating water pressures and increasing recognition of Rubicon’s technology. $50bn Ethiopian Dam development National Water placing pressure on Resources Plan. water availability. Signed MoU with Dedicated presen
Slide 21: Egypt – Opportunities Emerging
EGYPT – OPPORTUNITIES EMERGING Nile Delta presenting significant opportunities for modernisation. • >40,000kms of irrigation canals • National Water Resources Plan (NWRP 2037) amounts to USD$50 billion • MoU agreement to explore control systems across Egypt’s vast agricultural landscape • Water scar
Slide 22: Egypt – Opportunities Emerging
EGYPT – OPPORTUNITIES EMERGING New Delta, one of the world’s largest canal infrastructure projects. • US$5.25bn invested in the development of the new delta main canal • Construction of the world’s largest man-made river, spanning 114km with tributaries extending up to 170km • The project aims to cu
Slide 23: Egypt – Market Opportunity
EGYPT – MARKET OPPORTUNITY Egypt Country Data RWL Serviceable Addressable Market (SAM) Serviceable Total cost to surface area modernise ~3.40Mha Total area equipped for ($AUD) irrigation ~3.10Mha 2.00Mha $2.50bn Total area serviced by surface water 76% Overall water requirement ratio (efficiency). T
Slide 24: Summary and Outlook
SUMMARY AND OUTLOOK 1 2 3 First-half revenue $33.3m Funding being recognised, India and Egypt (+23% pcp); EBITDA -$0.7m released and awarded by federal opportunities significant (+84% pcp). governments. and evolving. 4 5 6 USA market a compelling Pipeline of opportunities Reconfirm guidance to inves
Slide 25: Contact
www.rubiconwater.com CONTACT Bruce Rodgerson Andrew Bendall CEO CFO Bruce.Rodgerson@rubiconwater.com Andrew.Bendall@rubiconwater.com © 2024 Rubicon Water. RUBICON logo and BayDrive, BladeMeter, BladeValve, CableDrive, FarmConnect, FerIT, FlumeGate, FlumeMeter, FormiPanel, MicronLevel, NeuroFlo, Piko
Slide 26: Appendix
APPENDIX [Ref#] Description Unit USA Description Inputs from FAO AQUASTAT DATA FAO 1 Water Requirement Ratio (efficiency) % 61.58% FAO 2 Irrigation Water Withdrawal km3/yr 177 FAO 3 Irrigation Water Requirement km3/yr 109 FAO 4 Total Irrigated Area Mha 28.40 FAO 5 Total Groundwater Area Mha 18.40 FA