RIVCO AUSTRALIA LTD — Net Asset Value 2018

Sep 13, 2018

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ASX CODE (Shares) D20
Shares on Issue (August) 89,529,624
Shares on Issue (September) 90,280,281
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The primary investment objective of Duxton Water is to generate annual income through capitalising on the increasing demand for scarce water resources. Duxton Water derives its income from a diversified portfolio of Australian Water Allocations and Water Entitlements.

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NET ASSET VALUE PER SHARE Entitlement Portfolio
Value by Region
Duxton Water’s NAV as at 31 August 2018 was $1.34 per share ex-div (2.5cents per share).
The after tax NAV figure takes into account the provision for deferred tax on set-up costs and estimates of net tax provisions that may arise should the entire
portfolio be disposed of on the above date. NAV is calculated based on an independent monthly portfolio valuation performed by Aither Pty Ltd (“Aither”). 9%
8%
NET ASSET VALUE PER SHARE – SINCE INCEPTION August
Dividend 2.5 cents 6%
April @ 75% Franked 1%
1.350 November Divi@ 60% Frankeddend 2.4 cents 1%
1.300 Dividend 2.3 cents 75%
1.250 @ 75% Franked
1.200 May & June
1.150 March 16.4 million
1.7 million Options Exercised
1.100
Options Exercised
1.050
1.000 Murray Lachlan
Murrumbidgee Macquarie
0.950 Goulburn Mallee
Water Portfolio
PERFORMANCE Diversification
1 Month 3 Months 6 Months 12 Months Inception Inception
0.02% 8.70% 11.06% 21.41% 25.31% 33.45%
These figures are based on NAV movements
This figure includes franked distributions since listing 16 Sept 2016
51% 49%
INVESTMENT UPDATE
At 31 August 2018, Duxton Water Ltd is invested in approximately $134.5 million of Water Entitlements
with the remainder of the portfolio held in cash and net current assets. Duxton Water holds contract over
a further $14.9 million of Water Entitlements as at 31 August 2018.
The ex-dividend NAV has remained steady as a result of a further 1.8% uplift through August in the value Unleased Leased
of Water Entitlements, higher allocations providing more temporary water from held Water Entitlements,
and an increase in the value of held allocation with higher temporary pricing across most regions. Full
details regarding the dividend can be found on the next page.
Water Security
Conditions remain dry across much of the Murray Darling Basin. The impact of low seasonal rainfall has Breakdown
seen inflows to storages fall well short of long term averages. With the lack of localised rainfall and higher
temperature across the Basin, irrigators have brought forward irrigation use, drawing on held reserves. 2%
23%
ENTITLEMENT MARKET
Duxton Water Ltd is engaged in building a targeted portfolio of Water Entitlements predominantly across
the Southern Murray Darling Basin. The Company has invested in both Surface and Ground Water assets.
As of the 31 August 2018 the Company hold over 46,000ML of Entitlement across 19 different asset types 75%
and classes.
Demand for Permanent Water Entitlement remains strong and has delivered further value uplift across
the portfolio. Aither Pty Ltd values the Duxton Water Ltd portfolio on a monthly bases on a dry (without
allocation) equivalent basis. HS GS Bore Supp
30/9/2016 31/12/2016 31/3/2017 30/6/2017 30/9/2017 31/12/2017 31/3/2018 30/6/2018
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DUXTON WATER LTD DUXTON HOUSE. 7 POMONA ROAD STIRLING SA AUSTRALIA 5152 [+61]8 8130 9500

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ASX CODE (Shares) D20
Shares on Issue (August) 89,529,624
Shares on Issue (September) 90,280,281
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Notable movements were seen in the following entitlements:

SOUTHERN BASIN

• Victorian Goulburn High Reliability increased 3% (7.8% of Portfolio) • Victorian Murray High Reliability increased 3% (26.5% of Portfolio) • NSW Murray High Security increased 2% (26.9% of Portfolio) • NSW Murrumbidgee High Security increased 1% (6.9% of Portfolio) • SA Murray High Security increased 3% (6.4% of Portfolio)

NORTHERN BASIN

There was no change in Northern Basin values through August.

allocation into the 2018/19 Water Year. This has enabled the Company to position itself ahead of stronger allocation pricing and to assist our irrigator customers through drier forecast conditions for the year ahead.

The allocation sales to date for 2018 amount to 56.9GL and as at 31 August the Company holds approximately 31GL of allocation.

LEASES

Based off market valuation, 49% of the Company’s portfolio is leased, with a weighted average term length of 4.8 years remaining. With the increase in allocation pricing, the Company has seen an increased interest for longer term water supply solutions. Expected yields align with the Company’s targets against the back drop of increased Water Entitlement values.

ALLOCATION MARKET

Allocation markets across the Southern Basin experienced price increases to close the month at $340 - $350/ML. Highs of up to $400/ML in the Murray were experienced mid-August following further announcements of low inflows and continuing dry conditions. This compares to allocation pricing of $120 - $140/ML experienced at the same time last year.

Allocation pricing within the Lachlan Valley remains relatively steady at $300/ML with low levels of activity above this at $320/ML. Duxton Water utilised its Entitlement Carry Over capability to take

DIVIDENDS

The Directors were pleased to announce the Company’s third dividend of 2.5 cents per share, payable in Australian dollars. The dividend will be franked to 75% for Australian Taxation purposes, payable on 14 September 2018. This was in keeping with the Directors’ intention to pay biannual dividends. Inclusive of the upcoming September Dividend, the Company has paid Shareholders a total of 7.2 cents plus franking since November 2017. 44.3% of Shareholders took up the recent DRP.

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Interstate Water Trading Zones
1 – Greater Goulburn
3 – Lower Goulburn
4a – Part Campaspe
4c – Lower Campaspe
5a – Part Loddon
6 – Vic Murray above Barmah Choke
6b – Lower Broken Creek
7 – Vic Murray from Barmah Choke
to SA Border
10 – NEW Murray above Barmah Choke
11 – NSW Murray below Barmah Choke
12 – South Australia Murray
13 – Murrumbidgee
14 –Lower Darling
15 – Lachlan
16 – Lower Lachlan Groundwater
17 – SA Mallee Groundwater
Murray Darling Basin
River
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DUXTON WATER PORTFOLIO – SMDB EXPOSURE

DUXTON WATER LTD DUXTON HOUSE. 7 POMONA ROAD STIRLING SA AUSTRALIA 5152 [+61]8 8130 9500

ASX CODE (Shares) D20 Shares on Issue (August) 89,529,624 Shares on Issue (September) 90,280,281

STORAGE LEVELS IN MAJOR DAMS

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Total Murray Goulburn 60% 74%
Lake Eildon 63%69%
Menindee Lakes 10% 42%
Lake Victoria 49% 77%
Hume 51% 89%
Dartmouth 82% 89%
Total Murrumbidgee 63% 74%
Blwering 76% 83%
Burrinjuck 41% 59%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2018 2017
DAILY INFLOWS TO THE MDB
Murray System Daily Inflows (excl. Snowy Darling, inter-valley trade and
environmental inflows) - 5 day rolling average
100,000
80,000
2017-18
60,000
2018-19
40,000
Long term
average
20,000
0I-Jun I-Jul I-Aug I-Sep I-Oct I-Nov I-Dec I-Jan I-Feb I-Mar I-Apr I-May I-Jun
ML/day
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CHANCE OF ABOVE-AVERAGE RAINFALL SEPTEMBER – NOVEMBER

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80
75
70
65
60
55
50
45
40
35
30
25
20
Chance of exceeding median rainfall (%)
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MARKET UPDATE & OUTLOOK

Severe rainfall deficiencies continue across the Murray Darling Basin (“MDB”). Winter has remained drier than average with low levels of rainfall received for much of Australia and throughout the MDB. Large portions of the MDB have received less than half their average annual rainfall from the 1st of January. Clear skies have contributed to the above average temperatures experienced reducing the level of soil moisture and inflows throughout the MDB.

Storage levels across the MDB have increased by just 2% through August as a result of lower than average rainfall received across the Basin, closing the month at 55%. Northern Basin storages continued to decrease, experiencing a 1% loss, closing the month at 25% over a period where these storages have historically increased.

Lower beginning storage volumes and continued rainfall deficiencies have resulted in lower seasonal water allocations. On the 3rd of September VIC High Security Entitlements received a further 12% and 9% in the Murray and Goulburn respectively, increasing to 71% and 56%. NSW received no increase and the NSW Murray still has a significant deficit to make up before General Security allocations will occur. The disparity between the two states is a result of the higher reserves that Victoria had entering the 2018/2019 water year. However, any future allocation increase in Victoria is expected to rely on improvements to the available resource from further inflows.

The latest Bureau of Meteorology outlooks continue to suggest a drier than average Spring with a high chance (65% – 75%) for below median rainfall over the next quarter, alongside high probabilities (70% - 80%) to exceed he median maximum temperatures for this period.

Whilst the El Niño–Southern Oscillation is currently neutral, leading international climate models indicate that the recent warming of the Pacific Ocean will lead to an El Niño by November. An El Niño typically results in below average rainfall and above average temperatures across eastern Australia. Continual cooling observed within the Indian Ocean may result in a positive dipole event, which would further exacerbate the affects of an El Niño on rainfall.

VALUATION METHODOLOGY

Aither undertake a monthly valuation of the Duxton Water portfolio. Total assets of the Company are valued based on an assessment of fair market value. Aither has adopted the Australian Accounting Standards Board (AASB) 13 Fair Value Measurement definition of fair value. Further information can be found on www.duxtonwater.com.au

DISCLAIMER: This factsheet is prepared by Duxton Capital (Australia) Pty Ltd [ACN: 164 225 647; AFSL no. 450218] (“Duxton Capital (Australia)”). Duxton Capital (Australia) is the Investment Manager of Duxton Water Limited [ACN 611 976 517] (“Duxton Water”). This factsheet 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 factsheet 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 factsheet and the Prospectus, the terms in the Prospectus shall prevail. The forecasts provided are based upon our 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. The Duxton Group or its affiliates may hold positions in the securities referred. Where stocks are mentioned, it should not be construed that these are recommendations to buy or sell those stocks. You are not authorized to redistribute this document nor qualified to make any offer, representation or contract on behalf of Duxton Capital (Australia) or its affiliates. Although the information was compiled from sources believed to be reliable, no liability for any error or omission is accepted by Duxton Capital (Australia) 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 the Duxton Group, their affiliates, or any officer or employee of the Duxton Group accepts any liability whatsoever for any direct or consequential loss arising from any use of this factsheet or its contents, including for negligence.

DUXTON WATER LTD DUXTON HOUSE. 7 POMONA ROAD STIRLING SA AUSTRALIA 5152 [+61]8 8130 9500