Announcement PDF DUXTON WATER LIMITED 2025 HALF-YEAR RESULTS PRESENTATION 2025 HALF-YEAR RESULTS PRESENTATION Duxton Water Limited | ASX:D2O Disclaimer This presentation is prepared by Duxton Water Limited [ACN 611 976 517] (“Duxton Water”). This presentation has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in Duxton Water. Information from this presentation must not be issued in any jurisdiction where prohibited by law and must not be used in any way that would be contrary to local law or regulation. The terms of Duxton Water are set out in the prospectus of Duxton Water (“Prospectus”), and should there be any conflict between the terms set out in this presentation and the Prospectus, the terms in the Prospectus shall prevail. The forecasts provided are based upon Duxton Water’s opinion of the market as at this date and are subject to change, dependent on future changes in the market. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. Investments are subject to risks, including possible loss of principal amount invested. The value of shares/ units and their derived income may fall as well as rise. Past performance or any prediction or forecast is not necessarily indicative of future performance. No assurance is given that the investment objective or the targets will be met. This document does not constitute investment, tax, legal or any other form of advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. Investors should study all relevant information and consider whether the investment is appropriate for them. If you require investment or financial advice please contact a regulated financial adviser. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this presentation. Although the information was compiled from sources believed to be reliable, no liability for any error or omission is accepted by Duxton Water or its affiliates or any of their directors or employees. The information and opinions contained may also change. Copyright protection exists in this presentation. To the extent permitted by applicable law, none of Duxton Water, Duxton Capital (Australia) Pty Ltd, their respective affiliates, or any of their respective officers or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this presentation or its contents, including for negligence. This presentation has been authorised for release by the Board of Duxton Water Limited. 2 Duxton Water Limited | 2025 Half-Year Results Presentation Contents 2025 Half-Year Highlights Financial Results Portfolio Performance Outlook Key Contacts HALF-YEAR 2025 SNAPSHOT Duxton Water Limited provides investors with a direct and pure exposure to Australian water markets. The Company’s primary business activity is to build a diversified portfolio of water entitlements, and through active management, generate a return by offering a range of water supply products to Australian water users. 2. 11.0% $291M $1.84 $1.65 59.0GL 52% 3.7 PORTFOLIO RETURNS (6 MONTHS) 1 WATER PORTFOLIO VALUE 2 NAV/SHARE (PRE-TAX) 2 NAV/SHARE (POST-TAX) 2 TOTAL WATER OWNED LEASED PORTFOLIO YEARS WALE 3 Upcoming Dividend: A fully franked Interim 2025 dividend of 3.72 cents per share will be paid to shareholders on Friday, 31 October 2025. 1. Total portfolio return is based on post-tax non-statutory Net Asset Value (“NAV”) movements and includes franked dividends for the 6-month period to 30 June 2025. Non-statutory NAV, adjusting for water entitlements held at cost in the Financial Statements of $228.5m. This includes permanent water entitlement acquisitions that are contracted but not yet settled. 3. Weighted Average Lease Expiry (“WALE”) at 1 July 2025. DUXTON WATER HALF-YEAR 2025 Half-Year 2025 Highlights The first-half of 2025 has been a transformational period for Duxton Water Limited (“the Company” or “Duxton Water”). NAV vs Share Price (Since Inception) Record Financial Performance: Delivered a record half-year net profit before tax of $35.3 million (HY2024: $11.8 million). This strong result was supported by a 6-month total portfolio return of 11% (post-tax), or 15% (pre-tax). 2. Significantly Improved Balance Sheet: Reduced debt from 31% to 5% by repaying $98 million in debt during the half-year period, significantly enhancing balance sheet flexibility, and reducing on-going interest expenses. 3. Strategic Portfolio Rebalancing: Sold $135.2 million of water entitlements to the Australian Government at above previous valuations, generating substantial gains for shareholders while maintaining a diversified portfolio. 4. Internalisation of Management: Obtained shareholder approval to internalise management, eliminating ongoing management and performance fees while maintaining operational continuity. 5. Improving Market Conditions: High security lease yields have improved to 4-6% p.a. due to drier conditions and lower storage levels. The Company has 52% of the portfolio leased, providing a stable income stream. 2.40 2.10 $ PER SHARE 1. $1.84 1.80 $1.65 1.50 $1.52 1.20 0.90 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 NAV per Share (Post-tax) Jun-21 Share Price Jun-22 Jun-23 Jun-24 Jun-25 NAV per Share (Pre-tax) Portfolio Performance 6 Months 12 Months Inception Annualised NAV Return (post-tax) 11.0% 16.6% 118.4% 9.3% NAV Return (pre-tax) 15.0% 21.9% 130.0% 10.0% ^These figures are based on NAV movements and include franked dividends for the period. 5 Duxton Water Limited | 2025 Half-Year Results Presentation Financial Results DUXTON WATER HALF-YEAR 2025 Financial Results (P&L) Duxton Water is pleased to report its highest half-year net profit before tax of $35.3 million. Key Items HY2025 HY2024 Difference % Change Revenue $8.9m $5.1m + $3.8m +75% Gain on entitlement sales $34.3m $15.0m + $19.3m +129% IMA termination fee $3.3m - + $3.3m n/a Impairment reversal / (impairment) on water entitlements $1.2m ($2.6m) + $3.8m n/a • Revenue increased to $8.9 million (HY2024: $5.1 million), primarily reflecting stronger allocation prices. • $34.3 million capital gain on entitlement sales (HY2024: $15.0 million) as noncore assets were sold as part of the Company’s rebalancing strategy. • Recognition of a one-off $3.3 million IMA termination fee associated with internalisation (no comparable item in HY2024). • $1.2 million impairment reversal on entitlements providing a positive impact the P&L (HY2024: $2.6 million impairment expense). Earnings Summary HY2025 HY2024 Difference % Change Net profit before tax $35.3m $11.8m + $23.5m + 199% Net profit after tax $24.5m $8.3m + $16.2m + 195% Earnings per share1 15.8 cps 5.3 cps + 10.5 cps + 198% Dividends per share 3.71 cps 3.6 cps + 0.11 cps + 3% 1. Basic undiluted earnings per share 7 Duxton Water Limited | 2025 Half-Year Results Presentation • Net profit before tax of $35.3 million for the half-year ended 30 June 2025 (HY2024: $11.8 million). This reflects a 199% increase from the previous corresponding period. • This result was largely underpinned by capital gains on the sale of water entitlements, as well as leasing revenue and proceeds from allocation sales. • Strong performance resulted in a record half-year Earnings per Share of 15.8 cps during the half (HY2024: 5.3 cps). DUXTON WATER HALF-YEAR 2025 Financial Results (Balance Sheet) Cents per share The Company is pleased to deliver a stronger balance sheet and higher NAV per share following strategic portfolio rebalancing. Balance Sheet Summary HY2025 FY2024 Permanent water assets (fair value) 1 $290.6m $387.1m - $96.5m Temporary water assets (fair value) 1 $0.1m $4.4m - $4.3m - 98% Net assets (fair value) 1 $257.0m $240.2m + $16.8m + 7% NAV per share (post-tax) 2 $1.65 $1.54 + $0.11 + 7% NAV per share (pre-tax) 2 $1.84 $1.65 + $0.19 + 12% Shares on issue 155.7m 156.4m - 0.7m - 0.4% 1. 2. Difference % Change - 25% Fair Market Value is prepared in accordance with the Company’s monthly NAV statement. The water portfolio is evaluated on a monthly basis by the Company’s independent valuer, “Ricardo Plc”. Fair Market Value is a nonIFRS measure that is not reviewed or audited by the Company’s auditor. Non-statutory NAV • Permanent water assets decreased from $387.1 million to $290.6 million, as non-core entitlements were divested during the period as part of the Company's portfolio rebalancing strategy. • Temporary water assets were substantially disposed of during the period, bringing the carrying amount down to $0.1 million (previously $4.4 million at 31 December 2024). This contributed to the increased allocation sales reported during the period. • Net assets (fair value) increased 7% to $257.0 million, reflecting gains on entitlement sales and operating earnings. • NAV per share (post-tax) increased from $1.54 per share to $1.65 per share (+7%) during the period. • NAV per share (pre-tax) increased by 19 cents to $1.84 per share during the period (+12%). This follows the 3.71 cps dividend that was paid in April 2025. • Shares on issue declined to 155.7 million from 156.4 million, modestly enhancing per-share outcomes. 8 Duxton Water Limited | 2025 Half-Year Results Presentation DUXTON WATER HALF-YEAR 2025 Capital Management The Company repaid $98 million in debt during the period, reducing gearing from 31% to 5%. 9 Debt Summary HY2025 FY2024 Difference % Change Total debt drawn $18m $116m - $98m -85% Total gearing 5% 31% - 26% n/a Total variable debt $18m $116m - $98m -85% Effective cost of borrowings 5.80% 5.85% - 5bps n/a Interest Summary HY2025 HY2024 Difference % Change Cash interest expenses $2.6m $3.2m - $0.6m - 19% Share Buybacks HY2025 HY2024 Difference % Change Shares bought back 1.5m - + 1.5m n/a Volume Weighted Average Price $1.50 $1.39 + $0.11 +8% Duxton Water Limited | 2025 Half-Year Results Presentation • The Company repaid $98 million in debt from proceeds received from entitlement sales recognised during the period. • This has substantially reduced the Company’s gearing from 31% at the end of 2024, to 5% at 30 June 2025, providing enhanced balance sheet flexibility. • The Company had an effective cost of borrowings of 5.8% during the period, which has since fallen due to recent interest rate cuts. • $2.6 million in interest expenses were paid during the period (HY2024: $3.2 million). The Company will benefit from lower interest costs in FY2025, following the repayment of $98 million in debt during the period. • The Company bought back 1.5 million shares during the period for a total consideration of $2.2 million (VWAP = $1.50 per share). • The Company conducts on-market share buybacks when it believes there is value in the share price relative to the fair market value of the Company’s net assets. Portfolio Performance DUXTON WATER HALF-YEAR 2025 Portfolio Performance The Company is pleased to report a total portfolio return of 11% (post-tax) or 15% (pre-tax) in the 6 months to 30 June 2025. WATER PORTFOLIO CHANGE IN VALUE (5 YEARS) 1 • The fair market value of Duxton Water’s portfolio ended 30 June 2025 at $291 million (30 June 2024: $354 million). 1 $20.8 • This decline in total portfolio valuation reflects the sale of 32.6 GL of water entitlements in the first-half of 2025. $450.0 $400.0 $70.8 $350.0 $300.0 -$47.3 $309.8 • The remaining portfolio increased in value during the period, broadly in-line with the 2.7% uplift that was observed in the Ricardo Entitlement Index over the first-half. $290.6 -$63.5 $250.0 • Increasing entitlement prices and sales of entitlements at above previous valuations have contributed to the Company’s post-tax NAV increasing 11cents during the period, to $1.65 per share. $200.0 $150.0 $100.0 • Duxton Water remains confident in the strategic value of water as an asset class. The Company believes the long-term demand and supply drivers that underpin water entitlement prices remain strong. $50.0 $Jun-21 Δ to Jun-22 Δ to Jun-23 Δ to Jun-24 Δ to Jun-25 Jun-25 1. 11 Duxton Water Limited | 2025 Half-Year Results Presentation Fair Market Value is prepared in accordance with the Company’s monthly NAV statement. Fair Market Value is a non IFRS measure that is not reviewed or audited by the Company’s auditor. This chart does not take into account water entitlements purchased or sold and is solely intended as a representation of the scale of the Company’s activities. DUXTON WATER HALF-YEAR 2025 Portfolio Diversification Duxton Water continues to maintain diversity across its portfolio of southern Murray Darling Basin water entitlements. WATER PORTFOLIO DIVERSIFICATION ENTITLEMENT VALUE BY REGION WATER SECURITY BREAKDOWN • The Company remains committed to maintaining a diversified portfolio with the intention of providing shareholders with balanced returns across various climatic scenarios. • Sold $135.2 million (or 32.6 GL) of water entitlements during the period. The Company continues to maintain diversity across its portfolio of Australian water entitlements. • The Company continues to ensure sufficient diversification within the leased portfolio in terms of commodity exposure, entitlement type, and lease duration. • The Company is refining its portfolio mix following recent entitlement sales, targeting an optimal balance that delivers through a broad range of climatic cycles. 12 Duxton Water Limited | 2025 Half-Year Results Presentation DUXTON WATER HALF-YEAR 2025 Leases The Company has a Weighted Average Lease Expiry of 3.7 years from 1 July 2025. 5-YEAR ANNUALISED LEASING REVENUE (MILLIONS) $10.0 $9.1 $9.0 $8.0 $7.4 • During the period, the Company secured approximately 5,000 ML of new leases to commence 1 July 2025. These leases were spread across multiple zones and were to both new and existing counterparties. $7.6 Millions $7.0 $6.0 $5.5 $5.3 • These new lease agreements have enabled the Company to maintain its leased percentage at 52% from 1 July 2025. Without these agreements, the Company’s leased percentage would have dropped to 38%. $5.0 $4.0 $3.0 • While the Company has recorded lower leasing revenue over the last two years, forward contracts have been used to offset this drop in leasing revenue to provide income visibility and certainty. $2.0 $1.0 $0.0 1-Jul-21 1-Jul-22 1-Jul-24 1-Jul-25 Lease Portfolio HY2025 HY2024 Difference % Change Lease revenue $2.9m $4.2m - $1.3m - 31% Leased percentage 52% 61% - 9% n/a WALE 1 3.7 yrs 2.6 yrs +1.1 yrs + 42% 1. Weighted Average Lease Expiry from 1 July 2025. 13 1-Jul-23 Duxton Water Limited | 2025 Half-Year Results Presentation • Based on current contracts, the Company is expecting to generate approximately $1 million in forward contract sales in the 2025-2026 water year. • The Company’s Weighted Average Lease Expiry (“WALE”) from 1 July 2025 is 3.7 years. This is the Company’s highest 1 July WALE since inception. DUXTON WATER HALF-YEAR 2025 Dividends The Company is pleased to have paid its 16th consecutive dividend of 3.71 cps (fully franked) during the period. Company Dividend History • The Company paid a 3.71 cent per share (fully franked) dividend to shareholders on 24 April 2025. This dividend was the Company’s 16th consecutive and increasing dividend paid to shareholders since November 2017. • The Board is pleased to formally declare an interim 2025 dividend of 3.72 cents per share (fully franked), to be paid to shareholders on Friday, 31 October 2025. • The Company will continue to offer the Company’s Dividend Reinvestment Plan (“DRP”), however the Board has decided to remove the DRP discount that has historically been available to DRP participants. • The removal of the DRP discount reflects a commitment to disciplined capital management and fairness across the shareholder base, particularly while the share price remains below Net Asset Value per share. October 2025 Dividend – Key Dates 14 Duxton Water Limited | 2025 Half-Year Results Presentation Ex-Div Date Thursday, 9 October 2025 Record Date Friday, 10 October 2025 Last Day for DRP Elections Monday, 20 October 2025 Payment Date Friday, 31 October 2025 DRP Pricing Window 10 October 2025 – 16 October 2025 (inclusive) Outlook DUXTON WATER HALF-YEAR 2025 Dam Storage Levels Murray Darling Basin major dam storages remain significantly lower when compared to the previous 4-5 years. • Dam storages ended August 2025 at a weighted average of 62%. This is the lowest weighted average for the end of August since 2020. This reflects below-average rainfall, reduced inflows, and elevated demand from irrigators in the first half of 2025, in response to recent drier conditions. RAINFALL DECILE CHART (WINTER 2025) JUNE 2025 – AUGUST 2025 Source: The Bureau of Meteorology Source: Ricardo 2025 based on Bureau of Meteorology 2025 16 Duxton Water Limited | 2025 Half-Year Results Presentation DUXTON WATER HALF-YEAR 2025 Allocation Determinations (1 September 2025) Water allocation determinations remain low for this time of year when compared to prior years. Determinations 1 Goulburn VIC Murray NSW Murray SA Murray Murrumbidgee 1. 17 Class 1-Sep-21 1-Sep-22 1-Sep-23 1-Sep-24 1-Sep-25 High 71% 100% 100% 97% 60% Low 0% 0% 0% 0% 0% High 57% 100% 100% 79% 44% Low 0% 0% 0% 0% 0% High 97% 100% 100% 97% 97% General 30% 110% 110% 44% 5% High 100% 100% 100% 100% 100% General n/a n/a n/a n/a n/a High 95% 95% 95% 95% 95% General 52% 46% 39% 34% 21% Water allocation determinations as of 1 September 2025, as per the relevant state resource managers . Duxton Water Limited | 2025 Half-Year Results Presentation • Water allocation determinations reflect the volume of water issued to water entitlement owners each year. • Allocations are made by priority. First to high security/reliability entitlements, with general security (or low reliability) entitlements receiving allocations as a second priority. • Allocation determinations drive the supply of water available for irrigation. Storage volumes, captured inflows are the primary factors that influence allocation determinations. • At 1 September 2025, general security allocations in NSW Murray (5%) and Murrumbidgee (21%) are materially lower than the prior years, reflecting reduced dam storage levels and inflows. • Near-term allocation determinations will depend on inflows to major dam storages (e.g., Hume, Dartmouth, Burrinjuck, Blowering). Sustained inflows are the strongest indicator for further improvement in resource availability. DUXTON WATER HALF-YEAR 2025 Allocation Market Update (1 July 2025 to 31 August 2025) Drier conditions and lower allocation determinations have resulted in the highest opening allocation prices seen since 2020. Monthly southern MDB allocation price (July 2017 to August 2025) 1 Source: Ricardo (2025) • Lower Murray allocation prices reached ~$350/ML in the first two weeks of July 2025 before easing to ~$260/ML by month-end. These were the highest opening allocation prices seen in the lower Murray since 2020. • By the end of August, spot prices were $265/ML in the lower Murray, $235/ML in the upper Murray, $255/ML in the Murrumbidgee, and $205/ML in the Goulburn. • Historically, dry periods have coincided with elevated allocation prices, while wetter periods have generally been associated with lower prices. • This highlights the importance of having a well-diversified portfolio that can perform well under a range of different climatic scenarios. Wet Dry Wet Dry 1. Average of allocation prices across all major southern Murray-Darling Basin zones (Upper Murray, Lower Murray, Goulburn, & Murrumbidgee). 18 Duxton Water Limited | 2025 Half-Year Results Presentation • Limited inflows to dam storages over winter may continue to strain water availability. The Company anticipates that inflows to storages in the coming months will likely have a significant impact on water allocation prices during the peak irrigation season later this year, and early next year. DUXTON WATER HALF-YEAR 2025 Water Buybacks The Government has continued to progress its water recovery initiatives in the first-half of 2025. • The Commonwealth Government has continued to progress its water recovery efforts under the following initiatives: 1. Resilient Rivers 2. Sustainable Communities 3. Voluntary Water Purchases • Together these initiatives aim to recover ~450 GL of water entitlements for environmental purposes across the MDB. • The Government has three programs with respect to voluntary water purchases: • Tender 1 - Restoring our rivers selected catchment open tender (Completed) • EOI 1 - Remaining southern connected basin (Submissions Closed) • EOI 2 - Large portfolios (Submissions Closed) • With respect to future buybacks, the government is taking a staged approach, with future purchases to be guided by program results, expert advice, and market analysis. Under the current legislation, all recoveries must be contracted to meet the 450 GL target by 31 December 2027. Current Progress – at 31 March 2025: Target Water recovery registered Water recovery contracted (not yet registered) Remaining recovery 450.0 GL/y 104.1 GL/y 53.2 GL/yr 292.7 GL/y https://www.dcceew.gov.au/water/policy/water-recovery/progress 19 Duxton Water Limited | 2025 Half-Year Results Presentation https://www.dcceew.gov.au/sites/default/files/documents/restoring-our-rivers-delivering-450-gl-implementation-plan-july-2025-update.pdf DUXTON WATER HALF-YEAR 2025 Notice of Extraordinary General Meeting – Name Change On 2 October 2025, the Company will hold an EGM to seek shareholder approval for a name change. • The Company is seeking shareholder approval to change its name from “Duxton Water Limited” to “Rivco Australia Limited". • Following the approval of the internalisaton of the Company’s management team at the Annual General Meeting held on Friday, 30 May 2025, the Board believes that the new name better aligns with the Company’s long-term strategy, vision, and independence as a dedicated Australian water business. • The Corporations Act requires shareholders to approve the change of name of the Company by passing a special resolution to adopt the new name. The name “Rivco Australia Limited” has been reserved by the Company. • If the name change is approved, the Company will also request that ASX change its ASX ticker code from ”D2O” to “RIV”. The ASX ticker code “RIV” has been reserved by the Company. • The Directors recommend that Shareholders vote in favour of Resolution 1. EGM Resolution 1: Current Name Proposed Name Company Name Duxton Water Limited Rivco Australia Limited ASX Ticker D2O RIV Link to Notice of Extraordinary General Meeting – 2 October 2025 20 Duxton Water Limited | 2025 Half-Year Results Presentation DUXTON WATER HALF-YEAR 2025 Internalisation Update The Company remains on-track to complete its internalisation within the transitionary period. • Internalisation remains on track for completion within the Transitional Services Agreement (“TSA”) period. • Conditional employment offers have been made to several key Duxton Capital staff, effective upon completion of the internalisation; no additional staffing costs are being incurred during the TSA period. • New city-fringe office lease executed with a future commencement date to support the post-internalisation operating model. • The Company is in the process of refining guidelines for dividends, debt usage, hedging, and formalising an internal capital management framework. • Near-term priorities include new systems set-up, data migration (including transfer of relevant intellectual property), establish new IT environment, and finalise relevant Company policies. • Further details of the Company’s internalisation progress and refined strategy will be shared in the second-half of this year. 21 Duxton Water Limited | 2025 Half-Year Results Presentation Thank you for your continued support and investment in Duxton Water Limited. “The combination of our strengthened balance sheet, improved market conditions, and enhanced operational control positions the Company exceptionally well for continued value creation. We remain on track to complete the internalisation within the Transitional Services Agreement period, and we look forward to sharing more details on our refined strategy in the second-half of 2025.” - Brendan Rinaldi, Chairman Thank you for your continued support and investment in Duxton Water Limited. DUXTON WATER HALF-YEAR 2025 Key Contacts Brendan Rinaldi Lachlan Campbell Lachlan Beech Independent Chairman Portfolio Manager Portfolio Manager lachlan.campbell@duxtonam.com lachlan.beech@duxtonam.com +61 410 107 158 +61 414 742 197 bprinaldi@gmail.com +61 415 299 711 23 Duxton Water Limited | 2025 Half-Year Results Presentation Duxton Water Limited 7 Pomona Road, Stirling SA 5152 +61 8 8130 9500 enquiries@duxtonwater.com.au duxtonwater.com.au