25 Nov

2021 AGM presentation

2021 Annual General Meeting 25 November 2021 Meeting Agenda • Chairman’s Introduction • CEO’s Address • Resolutions • Close of Meeting • Questions & Answers • Refreshments • Voting Results released to ASX Chairman’s Introduction Boyd White CEO Presentation Greg Watson Disclaimer The material in this presentation has been prepared by ReNu Energy Limited (ABN 55 095 006 090 ) and is general background information about ReNu Energy’s activities current as at the date of this presentation . This information is given in summary form and does not purport to be complete . Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs . Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice . All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk . This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to ReNu Energy’s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices . Readers are cautioned not to place undue reliance on these forward looking statements . ReNu Energy does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events . While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner . Forecasts and hypothetical examples are subject to uncertainty . All references to $ are references to Australian dollars unless otherwise specifically marked . Corporate snapshot Overview ASX code: RNE Shares on issue: 132.8m Options on issue: 20.8m Market capitalisation: (at $ 0.12) per share $ 16m 52 week range: $0.155 - $0.031 Debt: Nil Cash at bank: (as at 30 Sep 2021) $1.12m Board & management Non - executive Chairman Boyd White Executive Director Tim Scholefield CEO & Company Secretary Greg Watson Non - executive Director Tony Louka Share price and volume (Nov 2020 – Nov 2021) June 2021 Completion of $1.46m capital raise to advance clean energy incubator strategy Agreement with Uniflow Power secured for maiden investment 7 April 2021 Final abandonment of the Habanero 3 and 4 wells completed with workover rig released July 2021 First $250,000 investment made into Uniflow Power via convertible note Independent consultant engaged to model carbon credit potential for Uniflow Power technology September 2021 Second investment in clean energy incubator strategy secured Agreement signed with Enosi for total investment of $500,000 October 2021 First $250,000 investment into Enosi completes Emissions intensity for Uniflow Cobber shown to be 90% lower than small diesel generator and 95% lower than small petrol generator Unfilow Power collaboration agreement with Argentina’s INTI Operational review Board & management have accelerated progress • Divested underperforming assets • Repaid all debt and reset cost base • Abandoned wells and addressed geothermal legacy • Set and implemented new strategy November 2021 Announced third investment, 100% acquisition of Countrywide Renewable Hydrogen, in the green hydrogen sector Pursuing further opportunities, including in the battery technology sector Uniflow Cobber commissioning at Mugga Mugga renewable energy development site - Canberra FY21 financial results FY21 financial results reflect the benefit of corporate cost reductions following completion of the strategic review of the Group’s cost base Metric 2021 ($) 2020 ($) Movement ($) Operating costs (1,434,623) (4,570,328) 3,135,705 Total Group EBITDA (1,087,646) (2,514,809) 1,427,163 Loss after tax (1,001,885) (4,507,591) 3,505,706 Earnings per share (0.75) (3.74) 2.99 Cash 2,468,210 2,448,803 (19,407) Potential tax benefit of unused tax losses* 68,098,555 76,037,352 (7,938,797) * For which no deferred tax asset has been recognised (2021 at 26%, 2020 at 27.5%) ReNu Energy’s incubator and accelerator strategy One of the only ASX listed renewable and clean energy incubator/accelerator companies Focused on acquiring strategic stakes and nurturing renewable and clean energy technologies and projects Adding value to shareholders through asset revaluation, moving to a controlling interest and consolidating revenue, supporting through to IPO or exiting via trade sale Targeting multiple sectors to unlock value including Solar Hydrogen Energy storage Vehicle technologies Carbon reduction Energy as a Service Waste to energy Biogas 2 10 Deloitte Australian CleanTech Index (points) Global new investments in clean energy Strong sector tailwinds Record equity raised by clean energy companies in H 12021 – total of $ 28 . 2 Bn, a 509 % increase on 2020 Large scale renewable energy projects in Australia accounted for over $ 18 . 6 Bn in investments during 2020 – with little exposure for ASX investors Cleantech investments are outperforming – Deloitte Australian CleanTech Index has shown 117 % growth over five years In Australia renewable energy accounts for 27 . 7 % of total power generation in 2020 Hydrogen market is expected to reach US$220Bn by 2028 amidst ongoing push for clean energy A defined strategy to unlock value Key investment criteria : • Investee companies must have access to a large addressable market • Pre - money valuation that allows ReNu to take a meaningful initial stake ( > 5 % ) and within its financial capacity • Option for ReNu to increase participation after the investee achieves milestones • Identified value creation pathway – IPO, consolidated revenue, exit via trade sale, net tangible asset revaluation • Investee has an experienced and capable Board and management team with the ability for ReNu to fill identified gaps • Intellectual Property is protected where relevant • Invest at a significant discount to NPV and/or with the potential to achieve multiples on invested capital ReNu has an experienced Board and management team with considerable sector experience to realise this strategy 12 Rigorous investment and due diligence process Phase one: • Initial approach – proactive and reactive opportunities • Determine if strategic fit • Initial scan with investment criteria Phase two: • Sign confidentiality deed and request initial information • Collate responses/queries • Initial due diligence (DD) Phase three: • Detailed DD (may include expert reports) • Non - binding terms sheet or indicative offer Phase four: • Finalise DD • Identify milestones to tie to investment amount & conditions precedent • Binding offer or term sheet Phase five: • Transaction documentation • Announce transaction & investment rationale • Investment funds released Investing in Australian ingenuity July 2021 investment Commercialising a patented, micro - renewable energy generator powered by agricultural waste, biomass and/or solar thermal Globally applicable technology for developed and developing economies Potential to displace fossil fuels with renewables Addresses multiple UN Sustainable Development goals ? Renewable ? Clean ? Carbon neutral September 2021 investment Enosi’s PowerTracer is an Energy as a Service ( EaaS ) software First of its kind grid scale trading and tracing solution Integrates seamlessly with retailer billing systems enabling : • 24 / 7 renewable energy tracing • Direct purchase of clean energy for individuals and businesses • Reduction of wholesale risk • Maximised renewable energy use ? Clean ? True carbon enabler November 2021 investment Focused on originating green hydrogen projects to provide sustainable, emissions - free energy Three green hydrogen projects in Australia focussing on domestic supply and building a pipeline of projects in Canada and USA Collaboration agreements in place with several large government owned and private companies (including ASX 100 listed entities) Transaction delivers access to the growing global hydrogen generation economy ? Clean ? Green ? Carbon neutral Looking ahead • Second tranche investment in Enosi ? End of November 2021 • Completion of Countrywide Renewable Hydrogen acquisition ? Targeting January 2021 ? Gain considerable experience of CRH team, with Geoff Drucker and Susan Oliver to join RNE Board • Investments made provide access to compelling market opportunities ? Each investee to progress pipeline of opportunities and accelerate delivery to next stage • Pursue additional investments ? Targeting the battery technology sector • Maintain cost discipline ? Prudent cash management Advancing as a renewable and clean energy incubator/ accelerator with a defined strategy to drive growth Supplementary slides Australian company that originates green hydrogen projects to develop them in collaboration with project partners and governments Provides ReNu Energy access to: • Growing green hydrogen industry through three Australian onshore green hydrogen opportunities • Point of differentiation in the hydrogen economy with the initial focus being on domestic supply with export to follow where viable • A pipeline of early - stage opportunities in Atlantic Canada and Pacific USA Underpinned by an experienced Board and management • Through the issue of 134,659,520 fully paid ordinary shares at $0.0688 each • 100% scrip , conserving ReNu Energy’s cash. • CRH will be debt free at completion and with cash to progress project opportunities • ReNu proposes to appoint CRH’s Managing Director Geoffrey Drucker and Non - Executive Chair, Ms Susan Oliver AM to Board of Directors • Completion of acquisition subject to satisfaction of conditions precedent First 100% acquisition for ReNu Energy Investment secured in November 2021 Countrywide Renewable Hydrogen 17 Enosi Investment secured in September 2021 Enosi has developed the PowerTracer – a first of its kind grid scale, renewable energy tracing and trading solution PowerTracer provides full traceability allowing consumers to see where energy is generated Platform matches units of energy produced by generators units consumed by customers Allows companies and individuals to confirm the purchase of 100% renewable energy 24/7 – providing true zero carbon outcomes Retailers are essential to uptake – five retailer agreements already in place • $ 500,000 investment in two equal tranches – first in October 2021 and second in November 2021 • Ability for ReNu to maintain or increase its stake in future capital raisings Two tranche placement for an initial 5.8% stake Uniflow Power Focused on commercialising the Cobber – an Australian invented micro renewable energy generator powered by agricultural waste, other biomass or solar thermal Designed for production of ~4.5kW electrical power and 20kW thermal energy – with potential to displace fossil fuels Patented in Australia and across major international markets Applications in developed and developing economies with multiple expressions of interests received from Southeast Asia and South America Emissions intensity ~90% less than a small diesel generator and ~95% less than a small petrol generator, per kWh of electricity produced • $250,000 in working capital via convertible note with option to add $50,000 increments on 1 December 2021 and 1 January 2022 • Equity investments (at RNE’s discretion) of $650,000 by 1 February 2022 and $500,000 by 1 March 2022 • 3 free attaching options for every share acquired at an option exercise price equal to the share issue price expiring at various dates Phased investment to realise up to 50% stake Investment secured in June 2021 18 19 Each opportunity fits our criteria Experienced Board & Management Susan Oliver AM (Chair) – 25 + years in global companies including serving on the Investment Committee for IFM investors . Awarded an Order of Australia for services to business and women . Geoffrey Drucker (MD) – Company founder with extensive expertise in the renewable sector including renewable project initiation experience Stephen Nossal (Finance & Project Director) – Extensive experience across the finance industry with JB Were, Goldman Sachs, Macquarie and Austock Inge Drucker (Operations Director) – Experienced in community, stakeholder, marketing and media relations with an issues, strategy and project management background Supported by experienced advisors . Board and management hold a total of ~ 75 % of share capital pre completion Large addressable market focus Green hydrogen Australian market initially domestic with potential for export to SE Asia Hydrogen market is expected to reach US $ 220 Bn by 2028 amidst ongoing push for clean energy RNE has a meaningful stake 100 % owned Protected IP Defined pathway to value creation Countrywide Renewable Hydrogen will originate and have the ability to retain equity in each project, providing exposure to the entire hydrogen value chain and revenue from Hydrogen and other products Options to use off – the - shelf technology or partner with electrolyser developers 20 Each opportunity fits our criteria (cont.) Experienced Board & Management Michael McCann – Lifetime involvement in technology development - has worked on core technology underpinning the Cobber since founding Uniflow Sylvia Tulloch – A materials scientist, early - stage investor and director of several ASX - listed companies in the cleantech sector John Mathieson – A specialist financial markets professional focused on early - stage businesses Founders hold 50 % of issued share capital (pre RNE investment) Large addressable market focus Technology is applicable globally, across developed and developing economies RNE has a meaningful stake 20 % stake and Board representation available initially . Options allow the ability to move to 50 % at RNE’s election Protected IP Technology is patented in Australia and across other major markets in Southeast Asia, Europe, North and South America Defined pathway to value creation Realise value through asset revaluation, ability to bring in an investment partner, access grant funding, IPO. Options provide potential to consolidate revenue Steve Hoy (CEO) – former Global Smart Grid Systems Leader at IBM . 35 + years energy and technology experience Bill Barden (COO) – 25 years investment banking with CBA, HSBC, 7 years venture capital experience Joel Courtney (CTO) – 14 years in power sector and energy management systems Ausgrid, Energylink Supported by experienced advisors Founders hold 37 % of issued share capital Australian addressable market estimated at 11 m accounts with over 1 Bn traceability accounts globally 5 . 8 % stake with the ability to retain or increase holding through future capital raises Software IP uses complex algorithms and cryptographic validation technology – very difficult to replicate Subsequent raisings will re - rate valuation, potential for exponential organic growth, access grant funding, IPO RNE Board & Management Non - executive Chairman – Mr Boyd White Mr White has an accomplished record in the energy, infrastructure and mining sectors . He has over 30 years of business experience and brings strong strategic, commercial, M&A, financing and entrepreneurial skills to the ReNu Energy Board . He has held executive roles internationally with US multinationals Halliburton Company and KBR Inc, and domestically with Tarong Energy, and Territory Generation . Mr White was a founding partner in ARC Developments International, providing energy advisory services and developing or acquiring renewable energy projects . He is currently the Principal of New Energy Capital and, amongst other things, is developing a € 300 m integrated bioenergy business in Europe and involved in executive management, clean energy and capital raising activities in the small cap resources sector . Mr White holds a Bachelor of Business (Accounting) from Queensland University of Technology and an MBA from the University of Queensland . Executive Director – Mr Tim Scholefield Mr Scholefield is a Director and senior executive with global experience in project delivery, operations, financial, governance and risk management . He has over 30 years’ experience across the resources and energy value chain including : exploration, production and operations ; conventional, unconventional and renewable fuel sources ; gas storage and offtake, power generation and the link to customers . Mr Scholefield is a Director and Principal of Pacific Energy Partners, a consultancy providing advice on renewable and clean energy solutions and opportunities in the Pacific and South East Asia . Mr Scholefield holds a Bachelor of Applied Science from the University of South Australia, a MBA from Deakin University, a Certificate in Governance and Risk Management from the Governance Institute of Australia and is a Graduate of the Australian Institute of Company Directors . Chief Executive Officer and Company Secretary – Mr Greg Watson Mr Watson joined ReNu Energy as CFO and Company Secretary in September 2019 and was appointed as CEO in February 2020 . He has a strong background in finance, tax, legal and company secretarial disciplines . Mr Watson has 13 years’ experience with listed and private companies in the resources sector . He previously worked as CFO and Company Secretary at Capricorn Copper and has also held corporate roles at Anglo American, Barrick Gold, Equinox Minerals and Fortescue Metals . He commenced his career at KPMG where he worked for 9 years . Mr Watson is a Chartered Accountant and holds a Bachelor of Laws and Bachelor of Commerce degrees, as well as a Graduate Diploma in Legal Practise . Non - executive Director – Mr Tony Louka Mr Louka has 23 years of industry experience in Board, executive and management roles in the energy supply chain, clean technology solutions as well as retail & industrial property sectors . He is the Managing Director of Maxify Consulting a bespoke ESG & asset management advisory to various ASX corporates & innovative start - ups in the Asia Pacific . He has held previous management and executive roles at Woolworths Group, Ergon Energy and Emerson Network Power . He has also served as a Board Member of the Energy Users Association of Australia and the Transgrid Advisory Council . Mr Louka was appointed to the Board as a Non Executive Director on 27 September 2018 . He was then appointed as interim Managing Director and Acting CEO on 20 September 2019 to oversee the company restructure . Mr Louka returned to his previous position of Non Executive Director effective 28 February 2020 . 22 Proposed Incoming Directors The acquisition of Countrywide Renewable Hydrogen provides for a strengthened Board CHR Managing Director, Mr Geoffrey Drucker to become Executive Director Mr Drucker has extensive experience in the renewables sector . He commenced his career with the State Electricity Commission of Victoria and has been successful in renewable project delivery . He has a strong political and industry network and has been instrumental in generating the CRH project pipeline . Mr Drucker previously held roles with PwC, the Education Department and a number of private consultancies . CRH Non - executive Chair, Ms Susan Oliver AM to become Non - executive Director Ms Oliver AM has extensive Board and governance experience with ASX - listed companies and also serves on the Investment Committee for IFM investors, was the Founding Chair of Scale Investors,and now chairs the Alice Anderson Fund investment committee for the Victorian Government . She was awarded an Order of Australia for services to business and women . Understanding terminology • Renewable – sources that can replenish themselves e.g., solar, wind, geothermal, biomass, hydro • Clean – renewable, zero carbon or carbon reduction e.g., nuclear, Carbon Capture and Storage (CCS), bioenergy, technologies that reduce or support to reduce CO 2 emissions • Green – renewable +/ - clean + lowest environmental footprint (highest environmental benefit) • Carbon Neutral or Net Zero Carbon – balancing or offsetting emissions/energy use (even if increasing), not necessarily reducing overall emissions e.g., purchasing RECs • Zero Carbon – sourcing energy from 100% renewables with zero emissions e.g., embedded solar networks • True Zero Carbon – traceability, confirming the purchase of 100% renewables 24/7 on regional networks e.g., the NEM ReNu Energy is investing in and nurturing early - stage renewable and clean energy projects and technologies Contact P: +61 7 2102 3654 E: info@renuenergy.com.au W: www.renuenergy.com.au A: Corporate House, Kings Row 1, Level 2, 52 McDougall Street, Milton QLD, 4064 Australia Thank you Questions
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