RIVCO AUSTRALIA LTD — Net Asset Value 2019

Jan 14, 2019

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ASX CODE (Shares) D20
Shares on Issue (December) 108,576,017
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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 December 2018 was $1.37 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”). 13%
9%
NET ASSET VALUE PER SHARE – SINCE INCEPTION August 5%
Dividend 2.5 cents 0%
@ 75% Franked 1%
1.400 April 72%
1.350 November Dividend 2.4 cents @ 60% Franked
1.300 Dividend 2.3 cents
1.250 @ 75% Franked October
& November
1.200 18.3 million
1.150 March May & June shares issue d
1.7 million 16.4 million
1.100 Options Exercised Options Exercised Murray Lachlan
1.050 Murrumbidgee Macquarie
Goulburn Loddon
1.000
Mallee
0.950
Water Portfolio
Diversification
PERFORMANCE
1 Month 3 Months 6 Months 12 Months Inception
0.40% 0.8 5 % 9.40% 21.64% 36.97%
These figures are based on NAV movements and include franked dividends for the period. 61% 39%
INVESTMENT UPDATE
At 31 December 2018, Duxton Water Ltd is invested in approximately ~$194.4 million of water assets and
holds net assets of ~$158.7 million. The Company currently has ~$15.1 million water entitlements in its
Unleased Leased
acquisition pipeline at 31 December 2018.
In December, rainfall throughout the basin varied greatly from north to south. The northern basins
receiving below average rainfall and some areas of the southern basins (particularly the Ovens catch-
Water Security
ment) receiving above average rainfall. Despite the Ovens catchment receiving above average rainfall, Breakdown
total inflows into the River Murray system during December were 234GL, which is ~48% below the long-
term average of 450GL. The volume of available water in active storages within the total Murray 1%
Goulburn Systems is 30% lower than the same time last year and ~40% lower than December 2016.
The MDBA’s drawdown of Dartmouth has continued through December. Dartmouth dam which acts as 32%
the Murray’s reserve storage, has had a further ~158GL of water released to support peak summer
irrigation demand, while the Hume reservoir has reduced by a further ~127GL over the course of the
month and is now at 39% capacity. No allocations have been made to NSW Murray general security 67%
entitlements, marking the first time since the 2007-08 water year that these entitlements have received
no allocation by the end of December, highlighting the severity of this year’s dry conditions.
Duxton Water Ltd is well positioned entering the peak irrigation period due to its portfolio composition
and exposure to high security entitlements, as well as its strategic allocation position which was HS GS Bore Supp
established at the start of the water year.
30/9/2016 31/12/2016 31/3/2017 30/6/2017 30/9/2017 31/12/2017 31/3/2018 30/6/2018 30/9/2018 31/12/2018
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Duxton Water Ltd is well positioned entering the peak irrigation period due to its portfolio composition and exposure to high security entitlements, as well as its strategic allocation position which was established at the start of the water year.

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 (December) 108,576,017
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ENTITLEMENT MARKET

Duxton Water Ltd is engaged in building a targeted portfolio of water entitlements predominantly across the Southern Murray Darling Basin in in both surface and ground water assets. As of the 31 December 2018, the Company holds ~61,100 GL of entitlement across 21 different asset types and classes.

The value of Duxton Water’s portfolio, based on the Company’s independent valuation, has remained relatively stable through December. However, demand has remained strong and observed pricing through market intermediaries and platforms has continued to show a firming trend.

SOUTHERN BASIN & NORTHERN BASIN

Whilst there was no material change in entitlement value through December, the Company was well positioned to benefit from a strengthening allocation market.

ALLOCATION MARKET

Allocation markets across the southern basin steadily increased through December from $410/ML at the start of the month to $420 - $430/ML in the Murray and $450 - $460/ML in the Murrumbidgee to close the month. Peak summer irrigation is expected to increase allocation demand, with higher than average maximum temperatures placing further strain on water reserves.

Allocation pricing into January has been influenced by an extended hot weather event.

Higher demand and limited volume availability have seen pricing increase to $430-$440/ML in the Murray and $550-$580/ML in the Murrumbidgee.

Allocation pricing within the Lachlan Valley remains relatively steady at $300 to 330/ML.

Duxton Water Ltd utilised its entitlement carry over capability to take 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.

LEASES

Currently, 39% of the Company’s portfolio is leased, with a Weighted Average Length of Expiry of 4.6 years remaining. The Company maintains its intention to move towards a higher proportion of its portfolio under lease. Increased allocation pricing has resulted in stronger interest for longer term water supply solutions and the Company has executed further lease agreements with irrigators that are to commence in the next water year. These yields align with the Company’s targets against the back drop of increased water entitlement values.

DIVIDENDS

The Company advised in December that it is targeting a fully franked dividend of 2.6 cents with an ex-dividend date of March 2019 and a proposed payment date early in April 2019. This will deliver to Shareholders a 4th dividend since listing in September 2016 which continues the Director’s intention to deliver bi-annual dividends. Full details of this update can be found on the ASX.

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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

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ASX CODE (Shares) D20
Shares on Issue (December) 108,576,017
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STORAGE LEVELS IN MAJOR DAMS

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Total Murray Goulburn 51% 73%
Lake Eildon 57% 75%
Menindee Lakes 4% 26%
Lake Victoria 82% 99%
Hume 40% 73%
Dartmouth 71% 89%
Total Murrumbidgee 45% 57%
Blwering 45% 51%
Burrinjuck 45% 67%
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 JANUARY – MARCH 20 1 9

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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

December 2018 was the warmest December on record for Australia with New South Wales, Victoria, Tasmania and the Northern Territory all posting new record highs. Aside from isolated pockets of rainfall within south western Victoria, December was a relatively dry month for the Murray Darling Basin as a whole receiving ~26% below mean rainfall.

These record high temperatures and strong winds have not been favourable for irrigators, due to increasing levels of evaporation and additional heat stress that must be managed.

Inflows into storages throughout December of 234GL are far below the long term average of 450GL, with inflows for the whole year of ~2,880GL being significantly lower than the 10 year average of ~7,400GL. Storages within the northern MDB are currently at ~20% capacity compared to ~48% at this time last year and storages within the southern MDB are currently at ~51% capacity compared to ~73% at the same time last year.

Stronger reserves and higher tributary flow has helped the Victorian Resource Manager provide increased Victorian high security entitlement allocation with a further 10% in the Murray and 8% in the Goulburn which takes allocations to 100% and 93% respectively. Both NSW high security and general security entitlements received no further allocation in December, marking the first summer since 2007-08 that no allocation has been received by general security entitlements. Allocation pricing during the 2007-08 summer reached highs of over $1,000/ML.

The latest Bureau of Meteorology outlooks forecast an average to below average chance (50%) for above median rainfall over the next quarter throughout the Southern Murray Darling Basin.

The BoM’s El Niño-Southern Oscillation outlook remains at an ‘El Niño Alert’, suggesting a high chance of an El Niño event forming in the coming months. Five of the eight surveyed climate models have predicted an El Niño event forming and remaining throughout Autumn. The positive Indian Ocean Dipole event which has been effect since September 2018, has since concluded with all six of the surveyed climate models forecasting that the Indian Ocean will remain neutral through the Autumn. An El Niño typically results in below average rainfall and above average temperatures across eastern Australia. A positive Indian Ocean Dipole event typically reduces spring rainfall in southern Australia and can further exacerbate the affects of an El Niño.

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