Announcement PDF DUXTON WATER LIMITED DECEMBER 2024 ANNUAL REPORT PROUDLY SUPPORTING AUSTRALIAN IRRIGATORS AND FARMERS ACN 611 976 517 FULL-YEAR 2024 SNAPSHOT Duxton Water provides water supply solutions to Australian irrigators. These products enable businesses to manage water risk, while allowing irrigators to take a multi-year approach to water security. Each year, Duxton Water supports hundreds of customers across diverse industries, including tree nuts, grapes, dairy, citrus, potatoes, cotton, wheat, cereals and rice. 1.2% $392M PORTFOLIO RETURN1 (12 MONTHS) WATER PORTFOLIO VALUE3 1 Total Portfolio Return is based on NAV movements and includes franked dividends for the 12 month period to 31 December 2024. 2 Weighted Average Lease Expiry. Non-statutory value, adjusting for water entitlements held at cost in Financial Statements of $308.6m. This includes permanent water entitlement acquisitions that are contracted but not yet settled. 3 $1.54 PER SHARE NON-STATUTORY NET ASSET VALUE3 (POST-TAX) 91.5GL 37% TOTAL WATER OWNED LEASED % 2.8 YEARS WALE2 “We use our geographically diverse portfolio of Australian Water Entitlements to provide irrigation water to a wide range of Australian farming businesses. Our long-term water leases can allow Australian farming businesses to access water at a fraction of the cost of owning the same water licences outright.” CONTENTS Chairman’s Letter to Shareholders 8 Portfolio Managers’ Report 16 Directors’ Report 25 Information of Directors & Company Secretary 38 Remuneration Report 42 Lead Auditor’s Independence Declaration 47 Statement of Profit or Loss and Other Comprehensive Income 48 Statement of Financial Position 49 Statement of Changes in Equity 50 Statement of Cash Flows 51 Notes to the Financial Statements 52 Directors’ Declaration 75 Independent Auditor’s Report 76 ASX Additional Information 80 Corporate Directory 82 CHAIRMAN’S LETTER TO SHAREHOLDERS - Ed Peter On behalf of the Board, I am delighted to present the 2024 Annual Financial Report for Duxton Water Limited (“D2O” or “the Company”). Since its inception in 2016, D2O has consistently supported many Australian agricultural businesses by providing a range of water supply solutions. Our products (leases, forwards, carry-over, and allocation) are designed to empower irrigators to effectively manage their annual water requirements. Over the years, we have partnered with hundreds of Australian farming businesses across many agricultural sectors to provide choice and flexibility when it comes to water. Water security remains a critical focus area for Australian irrigators, particularly given Australia’s variable and, at times, harsh climate. The past decade has been a reminder of this variability, marked by extreme droughts and almost unprecedented wet conditions. Amid these challenges, we have consistently emphasised the critical importance of irrigators having a well-defined and comprehensive water strategy. We believe a clear and proactive approach enables our customers to better navigate the uncertainty of climate variability with resilience and confidence. In 2024, we continued to reinforce our commitment to disciplined portfolio management. We expanded our water portfolio, issued long-term leases, and provided our shareholders with two fully franked dividends during the year. Our efforts are underpinned by the belief that water entitlements are a resilient asset class capable of delivering value to shareholders across the climatic cycle. With a strong foundation and what we believe is a positive outlook for water assets generally, our business is well-placed to capitalise on future opportunities as they present. PAGE 8 DUXTON WATER LIMITED ANNUAL REPORT DUXTON WATER LIMITED ANNUAL REPORT PAGE 9 CHAIRMAN’S LETTER TO SHAREHOLDERS PERFORMANCE D2O remained resilient during a year of variable weather conditions across the southern Murray Darling Basin (“sMDB”). While parts of the sMDB experienced wet conditions during the year, other areas experienced drought-like conditions, especially in South Australia and Victoria. These drier conditions resulted in dam storages reducing to their lowest levels since 2020. While allocation prices remained below their long-term averages, the recent drier conditions have resulted in higher prices compared to the previous 2-3 years. The recent rise in allocation prices and lower rainfall suggest that, for the time being, we may have shifted away from the extremely wet phase of the climatic cycle that has persisted since 2021/2022. D2O generated total leasing revenue of $7.0 million in 2024 and ended the year with a leased percentage of 37%. Considering forward contracts entered into prior to 30 June 2024, the Company had 54% of its portfolio committed either through leases or forward contracts for the year. Forwards offer certainty around price for both the Company and our customers. For Duxton Water, this provides spot price hedging against wet conditions and lower allocation prices should they present. Primary revenue streams were driven by steady demand for the Company’s water supply products and prudent management of unleased water allocations. This supported more stable cash flows for the business and a reliable water supply for our lessees. In 2024, operational cashflows were supplemented by capital gains recorded on the sale of water entitlements. This was primarily driven by the sale of 2,799 ML of water entitlements for $25.2 million, as announced in 1H2024. The Company realised a $14.95m accounting profit from this transaction, which has supported the Company’s strong P&L result in 2024. The Company used the sale proceeds from this transaction of $25.2 million to offset its drawn debt. The Company recorded a total profit before tax of $13.3 million for the year ended 31 December 2024 (2023: $9.0 million). This was a strong result in a year of below average yields and variable economic and market conditions. During the year, we paid fully franked dividends totalling 7.3 cents per share to shareholders. This strong result underpins the Company’s commitment to delivering long-term value to shareholders. The strength of D2O’s statement of financial position remains central to its ability to support growth and manage market variability. At 31 December 2024, the Company’s net asset value (“NAV”) stood at $1.54 per share (post-tax), supported by a diversified portfolio of high security and general security water entitlements. Our portfolio is structured with the view to delivering balanced returns to shareholders across a range of climatic and market conditions, reinforcing D2O’s ability to adapt to climatic and economic shifts. At 31 December 2024, the Company has $63.4 million of unrealised gains based on an independent valuation of the water portfolio that are included in the Company’s non-statutory post-tax NAV1. Due to the application of Australian accounting standards, these unrealised gains are excluded from these statutory accounts. 1 PAGE 10 DUXTON WATER LIMITED ANNUAL REPORT This includes permanent water entitlement acquisitions that are contracted but not yet settled. DUXTON WATER LIMITED ANNUAL REPORT PAGE 11 CHAIRMAN’S LETTER TO SHAREHOLDERS -$2m Contracted water entitlement acquisitions at cost2 $19m - +$19m Water portfolio fair market value adjustment $64m $79m -$15m Water portfolio independent valuation $392m $390m +$2m Water owned (GL) 91.5GL 90.5GL +1 GL Leased % 37% 60% -23% 3 1. A reconciliation of statutory NAV to non-statutory (post-tax) NAV is provided on page 28. 2. Relates to water entitlement acquisitions that were contracted in 2024 and are excluded from the Company’s statutory financial statements. Settlement is expected to occur in 1HY2025. 3. Includes permanent water entitlement acquisitions that are contracted but not yet settled. Despite recent economic and climatic conditions, the fundamentals for water as an asset class remain strong. We continue to see a divergence between the long-term demand and supply of water. Permanent plantings across various regions of the sMDB continue to be developed, further increasing the long-term inelastic demand for water. Concurrently, the Government continues its campaign to buyback water entitlements from holders, further reducing the supply of water available to agriculture. While recent wet conditions have moderated the impact of this demand-supply imbalance on water pricing, it is well understood that Australia experiences significant climatic variability, including periods of extreme drought. In drier conditions, the underlying imbalance between demand and supply is expected to become more pronounced. This highlights the critical importance of irrigators adopting well defined water strategies to manage climate variability risks effectively. By planning proactively, irrigators can improve resilience against the unpredictable nature of water availability and its implications for their operations. 3.50 3.00 2.50 2.00 2.30 2.40 2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50 3.60 3.70 3.71 1.50 1.00 0.50 0.00 Dec-17 The Ricardo Entitlement Index (formerly Aither Entitlement Index) tracks the value of a group of major water entitlement types within the sMDB. During 2024, this index increased by 0.14%. We believe the sideways movement in water entitlement values seen in 2024 can largely be attributed to sustained higher interest rates and suppressed yields on high-security water assets due to continued lower allocation prices. 4.00 Cents per share WATER MARKETS Active management of D2O’s water portfolio remains the cornerstone of our business. At year-end, the portfolio comprised 91.5 gigalitres (GL) of water entitlements across 19 different entitlement types (diversified by region, class, and type). Our strategically constructed portfolio offers diversification and enhanced flexibility when it comes to managing day to day operations such as lease and forward deliveries to our customers. SINCE INCEPTION Jun -25 $311m Dec-24 $309m Dividend paid Dividend announced DIVIDENDS The Company delivered on both its dividend targets in 2024. This resulted in the Company paying two fully franked dividends totalling 7.3 cents per share during 2024 (FY2023: 6.9 cents per share). Since its inception, the Company has paid total dividends of 45 cents per share. This consistent dividend stream closely reflects our disciplined approach to portfolio management and our ability to generate consistent profits from our water portfolio. Since inception, we have maintained a strong track record of dividend growth through our strategic management of a diversified portfolio of Australian water entitlements. Jun-24 Water portfolio statutory cost Dec-23 +0.4 Cps Jun-23 6.9 cps Dec-22 7.3 cps Jun-22 Dividends paid Dec-21 -$0.08 Jun-21 $1.62 Dec-20 $1.54 Jun-20 Non-statutory NAV (post-tax) Dec-19 Difference Jun-19 FY2023 Dec-18 FY2024 1 Jun-18 Over the last 12 months: Dividend target We acknowledge that operational performance has been subdued due to the recent wet conditions and depressed water markets. However, our ability to generate capital gains from our water entitlement portfolio has allowed us to keep our dividend stable. While we strive to maintain a reliable dividend stream, our ability to do so will depend on prevailing market conditions. The Board remains committed to monitoring this strategy going forward. The Company will continue to offer its Dividend Reinvestment Plan (“DRP”) to all eligible shareholders. The DRP discount of 5% will remain in place. The Company maintains its intention to continue delivering shareholders with a reliable dividend stream. Therefore, the Board is pleased to declare a fully franked final 2024 dividend of 3.71 cents per share, to be paid to shareholders on 24 April 2025. PAGE 12 DUXTON WATER LIMITED ANNUAL REPORT DUXTON WATER LIMITED ANNUAL REPORT PAGE 13 CHAIRMAN’S LETTER TO SHAREHOLDERS DEBT MANAGEMENT At 31 December 2024, Duxton Water has debt drawn of $116 million, equating to an Loan to Value Ratio (“LVR”) of 31%. The Company has an effective interest rate of 5.8%, consisting of facility fees and margins of 1.3%, plus 90-day floating BBSY. While the Company does not presently have any interest rate hedging in place, the Company continues to monitor interest rate markets for appropriately priced hedging opportunities. D20 Debt Summary FY2024 FY2023 Difference $116.0 $116.5 -$0.5m 31% 29% +2% - - - Total Variable Debt $116.0 $116.5 -$0.5m Effective Cost of Borrowings 5.80% 5.20% +0.6% Total Debt Drawn Total LVR Total Fixed Debt OUTLOOK As we look to 2025, several key themes will shape D2O’s strategic priorities. The Government’s ongoing efforts to purchase water entitlements for the environment may continue to influence water markets in the coming years. Climatic variability may also continue to influence market dynamics. While wetter conditions have dominated recent years, a recent return to more normal weather conditions underscores the importance of water security for Australian agriculture. Our strategic priorities for 2025 include: • Continue to deliver value to shareholders by focusing on a sustainable dividend stream. • Expand the lease portfolio by seeking new opportunities while strengthening relationships with existing Lesees. • Actively manage the portfolio to enhance its value, including targeting well priced acquisitions in high demand regions. • Maintain our leadership in offering a wide range of water access solutions to irrigators. I sincerely thank our board and management team for all their efforts and hard work in 2024. I would also like to express my gratitude to our shareholders for their continued investment in our business. We look forward to delivering on our strategic objectives in 2025. Yours faithfully, Ed Peter Chairman PAGE 14 DUXTON WATER LIMITED ANNUAL REPORT DUXTON WATER LIMITED ANNUAL REPORT PAGE 15 PORTFOLIO MANAGERS’ REPORT - Lachlan Campbell - Lachlan Beech “We have focused on expanding our water portfolio, forming strategic partnerships, and strengthening our ties with Australian irrigation communities” Dear Shareholders, We are pleased to present the Company’s 2024 Portfolio Managers’ Report. This year, Duxton Water has demonstrated its ability to continue delivering returns to shareholders in an everchanging market environment. While we were considered to be in a wetter-than-average part of the climatic cycle in early 2024, recent drier conditions have resulted in a significant reduction to dam storage levels when compared to previous years. Lower dam storages have resulted in higher allocation prices and improved lease yields on the Company’s high security water assets when compared to the previous 24-36 months. Combined with Government policies focused on returning water to the environment, the Company’s diversified portfolio and strategic management ensured another year of resilient performance in challenging conditions. PORTFOLIO SUMMARY At 31 December 2024, D2O’s portfolio comprised 91.5 gigalitres (“GL”) of permanent water entitlements across 19 different entitlement types and regions. Diversification remains a key pillar of our strategy, providing stability, and balanced returns across varied climatic cycles. The portfolio includes high security, general security, and groundwater entitlements. While our leased percentage is sitting below our long-term target of 70-80%, it remains a primary focus for us. We anticipate increasing our leased percentage back towards our target range as weather conditions normalise. At 31 December 2024, we had 37% of the portfolio leased, with a weighted average lease expiry (“WALE”) of 2.8 years. Leases provide D2O with visibility to future revenue at the same time as providing water security to our customers. WATER PORTFOLIO CHANGE IN MARKET VALUE1 (5 YEARS) $450 $400 $20 $350 $300 $335 -$15 Dec -19 2020Δ $37 $13 $2 $392 $250 $200 $150 $100 $50 $- 2021Δ 2022Δ 2023Δ 2024Δ Dec-24 Non-statutory value, adjusting for water entitlements held at cost in Financial Statements of $308.6m. This includes permanent water entitlement acquisitions that are contracted and expected to settle in 1HY2025. 1 PAGE 16 DUXTON WATER LIMITED ANNUAL REPORT DUXTON WATER LIMITED ANNUAL REPORT PAGE 17 PORTFOLIO MANAGERS’ REPORT Throughout the year, we focused on expanding our portfolio through strategic acquisitions. Notably, we secured 3,250 ML of Zone 10 NSW high security water entitlements towards the end of 2024. Settlement is expected to occur in 1HY2025 and is therefore excluded from the Company’s statutory financial statements. Increasing our holdings in this zone adds further diversification to our portfolio and will provide enhanced flexibility as we move through the climatic cycle. WATER PORTFOLIO DIVERSIFICATION In addition to this, we sold a 2,799ML parcel of NSW Zone 11 high security water entitlements during the year, for approximately $25.2 million. This was part of the acquisition and leaseback that was announced to the market on 3 July 2023. Although the cash net profit/loss recorded on this transaction was immaterial, the Company realised a significant accounting profit. Entitlement Holding Type 31/12/2023(ML) ML Change (ML) 31/12/2024 (ML) VIC 1A Goulburn HR 13,564 (450) 13,114 VIC 1A Goulburn LR 1,401 - 1,401 VIC 1B Boort HR 376 - 376 VIC 3 Goulburn HR 421 - 421 VIC 6 Murray HR 5,817 - 5,817 VIC 6 Murray LR 313 - 313 VIC 7 Murray HR 7,337 - 7,337 VIC 6B Murray HR 1,344 - 1,344 NSW Murray 10 HS 3,010 3,250 6,260 NSW Murray 10 GS 14,491 - 14,491 NSW Murray 11 HS 9,249 (2,599) 6,650 NSW Murray 11 GS 7,225 - 7,225 NSW Murray 11 Supp 83 - 83 NSW Murrumbidgee 13 HS 2,390 - 2,390 NSW Murrumbidgee 13 GS 8,822 (1,500) 7,322 NSW Lachlan Valley – GS 4,504 - 4,504 NSW Lachlan Valley – Jemalong Irrigation GS 2,660 - 2,660 SA Murray HS 4,901 1,348 6,248 SA MalleePrescribed Wells Area – Parilla Red Zone 500 - 500 SA Mallee Prescribed Wells Area – Parilla Green Zone 2,046 1,000 3,046 Total 90,453 1,049 91,502 “100% of our water is used to produce Australian agricultural commodities” PAGE 18 DUXTON WATER LIMITED ANNUAL REPORT OPERATIONS Leasing income and gain on entitlement sales remained the cornerstone of D2O’s financial performance for the year. The Company generated $7.0 million in leasing revenue across the year, reflecting both the reliability of our long-term agreements and the resilience of our lessee base. It is our intention to significantly increase the lease percentage closer to our long-term target of 70-80% as weather conditions normalise. With wetter conditions persisting through early 2024, our general security entitlements continued to yield strong returns, highlighting the importance of our balanced portfolio composition. 37% 63% Leased Allocation sales and forward contracts played a corresponding role, with revenues reflecting market dynamics. While wetter conditions in early 2024 influenced spot allocation prices, our approach ensured that unleased allocations were sold at optimal times. Drier conditions towards the end of 2024 resulted in improved water allocation prices. Notably, Murrumbidgee allocations touched $250/ML in December 2024. Unleased WATER SECURITY BREAKDOWN During the year, we also focused on engaging with lessees to renew or extend existing agreements. While demand for long-term water leases was below average for the first half of 2024, appetite for leases to commence 1 July 2025 began to increase towards the end of 2024. 20% In addition, strategic acquisitions of water entitlements during the year enhanced our portfolio’s long-term potential. These additions were contracted at attractive valuations and in regions where we expect demand for water supply to grow, further strengthening the portfolio’s value proposition. 78% 2% MARKET OVERVIEW The water market experienced notable shifts throughout the year, reflecting changing seasonal supply and demand dynamics. The year commenced with improved water supply, aided by significant rainfall and high storage levels from the year prior. However, by the end of 2024, conditions had altered considerably, resulting in lower dam storages. High Security General Security Groundwater By the end of 2024, spot water prices were trading at between $145-$150/ML in the lower Murray, $120-$130/ML in the upper Murray, $105-$110/ML in the Goulburn, and $200-$235/ML in the Murrumbidgee. The Murrumbidgee continues to trade at a considerable premium to other zones. Particularly, the price for Murrumbidgee allocations increased by 80% in the month of December 2024, due to lower general security allocations and increased summer plantings. ENTITLEMENT VALUE BY REGION 10% 14% 3% 71% Murray Murrumbidgee Goulburn Lachlan Mallee 2% Improving allocation prices typically comes with an increase in demand for longer-term water leases. This tends to improve lease yields on high security entitlements which is what we saw take place towards the end of 2024. This trend was supported by irrigators seeking long-term security amid weather and price volatility. Forward contracts for the 2024/2025 season were popular with irrigators in the earlier parts of 2024. Irrigators are increasingly prioritising securing water supply and locking in costs to mitigate market uncertainties. This growing demand underscores a shift in strategy among many agricultural stakeholders, aiming to manage water risks more effectively over longer time horizons. DUXTON WATER LIMITED ANNUAL REPORT PAGE 19 KEY HIGHLIGHTS 2024 The entitlement market presented variable conditions, resulting in somewhat of a sideways movement throughout the year. Early 2024 saw price softening, largely attributable to uncertainty surrounding Government buyback programs under the “Restoring our Rivers Act 2023”. This was aided by the wetter conditions and lower allocation prices that were observed in the early parts of 2024. The latter half of 2024 demonstrated stronger pricing and more transactional activity. Prices began to improve in alignment with the Australian Government providing updates on their environmental water buyback plans for 2024/2025. SYSTEM INFLOWS AND STORAGE LEVELS This year commenced with elevated storage levels across the sMDB, a trend that persisted throughout the early stages of the year due to above-average rainfall received in the preceding period. That being said, by 31 December 2024, the weighted average of the major dam storage levels (Dartmouth, Hume, Lake Eildon, Blowering, Burrinjuck, Menindee Lakes) was at 69%, the lowest observed for the end of December since 2020. Major Dam Storages Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dartmouth (Murray) 89% 73% 52% 62% 88% 101% 98% 89% Hume (Murray) 77% 41% 28% 68% 99% 97% 88% 54% Lake Eildon (Goulburn) 76% 57% 44% 67% 87% 99% 98% 83% Blowering (Murrumbidgee) 57% 48% 41% 88% 100% 100% 74% 55% Burrinjuck (Murrumbidgee) 70% 42% 32% 83% 97% 97% 92% 65% Menindee Lakes (Darling) 28% 5% 0% 21% 98% 100% 67% 40% Weighted Average (per capacity) 71% 50% 36% 64% 93% 99% 89% 69% The reduced dam storage levels are a function of dry conditions seen through large areas of south-eastern parts of the sMDB. While coastal areas of NSW and Victoria continued to see decent rainfall, this failed to have a material impact on dam storages. We believe rainfall over catchment areas will continue to be the strongest indicator of system inflows and therefore dam storage levels. This generally flows through to impact water allocation prices. We believe rainfall and dam storages levels will continue to be the strongest indicators of water entitlement spot and lease yields in any given season. MDB AUTHORITY STORAGE: JUNE 2000 TO END DECEMBER 2024 10,000 9000 7000 6000 5000 4000 3000 2000 2024 2024 2021 2024 2020 2019 2018 2017 2016 2015 2013 2014 2012 2011 2010 2009 2008 2007 2005 2006 2003 2004 2002 0 2001 1000 2000 End of Month Storage (GL) 8000 End of December Long-term Average Active Storage Active Storage Maximum Active Storage (at full supply level) Source: Murray Darling Basin Authority active storage as of 31 December 2024 PAGE 20 DUXTON WATER LIMITED ANNUAL REPORT DUXTON WATER LIMITED ANNUAL REPORT PAGE 21 PORTFOLIO MANAGERS’ REPORT WEATHER OUTLOOK Weather conditions over 2024 were variable. After a wet start to the year, parts of southAustralia and Victoria saw drought like conditions in the back-half of 2024. This reduced rainfall across the sMDB resulted in significantly lower inflows to major dam storages when compared to previous years. During 2024, Australia did not experience any significant prolonged weather events as a result of ENSO (El Niño/La Niña) and the Indian Ocean Dipole weather drivers being neutral for most of the year. Looking ahead, the Bureau of Meteorology is forecasting warmer temperatures and average rainfall conditions over the sMDB across the next three months. Parts of the sMDB are likely to experience below average rainfall conditions which may further lead to a reduction in dam storages. A wet winter period may assist with replenishing dam storages, and a dry winter period may keep dam storages low, therefore reducing the supply of water available for the 2025/2026 peak irrigation period. Dam storages will be a leading indicator of water availability and allocation price as we head into the summer of 2025/2026. 80 70 65 55 50 45 40 35 30 25 20 CHANCE OF EXCEEDING THE MEDIAN RAINFALL(%) CHANCE OF EXCEEDING THE MEDIAN RAINFALL FOR MARCH TO MAY 2025 GOVERNMENT WATER BUYBACKS Current legislation under the “Restoring Our Rivers” Act remained a significant theme in 2024. With a target of recovering 450GL of additional environmental water by 31 December 2027, the program has the potential to influence water entitlement markets in the coming years. In July 2024, the Government released the final framework and announced the first round of voluntary water entitlement buybacks. This first buyback was to acquire 70 GL of water entitlements through an open tender process. This tender was open from 15 July 2024 to 11 September 2024. In a press release on 8 November 2024, the Government announced it had received over 1,000 submissions for the 70 GL tender. The Government is yet to make a formal announcement on the outcome of the tender. Further to that, the Government opened two expressions of interest (“EOIs”) on 30 September 2024. The purpose of the EOIs is to gather information about the market’s willingness to sell water entitlements in 2025. This would support the design of the 2025 phase of the voluntary water purchase program. The first EOI invited responses from water entitlement owners who were ineligible for the July 2024 tender. This includes entitlement owners under irrigation infrastructure operators as well as unregulated entitlements. The second EOI was directed to portfolio volumes of 20 GL or greater. Both EOIs target entitlements in the southern connected basin catchments. These EOI’s closed on 27 November 2024 and the evaluation of submissions is expected to occur from March 2025. The increased focus on the recovery of water for the environment underscores the value of D2O’s role in providing flexible and cost-effective water access solutions to Australian farmers. The “Restoring Our Rivers” Framework for delivering the 450 GL of additional environmental water details how the Australian Government proposes to meet the 450 GL Murray-Darling Basin Plan target. THANK YOU We would like to extend our gratitude to our customers, lessees, and service providers for their support in 2024. Furthermore, thank you to our shareholders for your ongoing investment in our business. As we look to 2025, we remain focused on optimising our portfolio, strengthening relationships with customers, and delivering long-term value to our stakeholders. CHANCE OF EXCEEDING THE MEDIAN MAXIMUM TEMPERATURE FOR MARCH TO MAY 2025 80 70 65 55 50 45 40 35 30 25 20 CHANCE OF EXCEEDING THE MEDIAN MAX TEMPERATURE (%) Sincerely, Lachlan Campbell Portfolio Manager Lachlan Beech Portfolio Manager Source: The Bureau of Meteorology. Long-range forecast - 3 February 2025 PAGE 22 DUXTON WATER LIMITED ANNUAL REPORT DUXTON WATER LIMITED ANNUAL REPORT PAGE 23 DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Directors of Duxton Water Limited submit herewith their Directors’ Report, the financial report of Duxton Water Limited (“the Company”) for the year ended 31 December 2024, and the Auditors’ Report. In order to comply with the provisions of the Corporations Act 2001, the Directors’ Report as follows: DIRECTORS The names of the Directors of the Company that held office during and since the end of the financial year are: Mr Edouard Peter Mr Stephen Duerden Mr Dirk Wiedmann Mr Dennis Mutton Dr Vivienne Brand Mr Brendan Rinaldi The above named Directors held office during the whole of the financial year and since the end of the financial year unless otherwise stated. The office of Company Secretary is held by Mrs Katelyn Adams. PRINCIPAL ACTIVITIES The Company’s primary focus has been acquiring and managing a portfolio of Australian water entitlements in the southern Murray Darling Basin (“sMDB”). The Company generates income by providing water supply solutions to mainly primary producers through a combination of long-term lease arrangements and the sale of temporary water allocations to support Australian agricultural production. There haven’t been any significant changes in the nature of the Company’s activities during the year. PAGE 24 DUXTON WATER LIMITED ANNUAL REPORT DU