Renu Energy : 31 December 2018 Half Year Report »

Half Year Report 31 December 2018

Release Statement

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ReNu Energy Limited, Level 1, 9 Gardner Close, Milton, QLD 4064

Phone: [phone] | Fax: [phone] | Email:[e-mail]

ABN: 55 095 006 090

APPENDIX 4D

HALF YEAR REPORT

Name of entity

RENU ENERGY LIMITED

ABN

Half year ended

55 095 006 090

31 December 2018

Previous corresponding period: 31 December 2017

Results for announcement to the market

Results	HY Dec	HY Dec
2019	2018	Change	Change
$'000	$'000	$'000	%
Revenues from ordinary activities(1)	795	334	461	138%
Loss from ordinary activities after tax attributable to	(1,374)	(2,928)	1,554	53%
members
Net loss for the period attributable to members	(1,374)	(2,928)	1,554	53%

(1)Includes revenues from discontinued operations, but excludes ReNu Energy's share of revenues of associated companies

Net Tangible Asset Backing	As at 31 December 2018	As at 31 December 2017
Net tangible asset backing per ordinary security	$0.076	$0.12*
* The number of shares used in the calculation of net tangible asset backing per share have been adjusted to reflect the 1:10 share consolidation undertaken in December 2018

Brief explanation of any of the figures reported above:

The commencement of operations at ReNu Energy's newly-completed / acquired bioenergy and solar projects in 2018 has resulted in an increase in income from the corresponding period in the previous year.

The loss for the period was significantly lower than in the corresponding period in the previous year due to:

• •Earnings from new bioenergy and solar assets which were commissioned / acquired in 2018;

• •One-off gains of $347,000 from the sale of a 70% interest in the Group's bioenergy business;

• •Reduced business development costs; and

• •Realisation of the benefits of corporate cost reductions.

Please refer to the attached Director's Report for a full commentary on the results and activities for the period and refer to the attached Half Year Financial Report for the detailed financial statements.

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APPENDIX 4D(Continued)

Details of entities over which control has been gained or lost during the period:

The Company disposed of a 70% interest in the following entitieswhich owned one of the Group's bioenergyassets, effective 17 July 2018:

• •RE Holding Company One Pty Ltd (as trustee for RE Holding Trust One)

• •SM Project Company Pty Ltd (as trustee for SM Project Trust)

These entities contributed $26,000of profit to the Group's loss from ordinary activities prior to their disposal ($nilin the December 2017 half year) and a profit of $167,000 was realised upon the sale of the entities.

Details of associate entities:

Ownership

InterestContributions to net profit / (loss)

Dec	June	HY Dec	HY Dec
2018	2018	2018	2017
Name	%	%	$'000	$'000
RE Holding Company One Pty Ltd (as trustee for RE Holding Trust One)	30%	100%	(27)	-
SM Project Company Pty Ltd (as trustee for SM Project Trust)	30%	100%	(4)	-
AJB Energy Projects Pty Ltd (as trustee for AJB Energy Projects Trust)	30%	-	1	-
Aggregate share of losses	(30)	-
Dividends

The Directors do not propose to recommend the payment of a dividend in respect of the period.

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DIRECTORS' REPORT

Your Directors submit their report for the half year ended 31 December 2018.

DIRECTORS

The names of the Directors of ReNu Energy Limited in office during the half year and until the date of this report are as follows.

Steve McLean (Non-executive Chairman)

Craig Ricato (Managing Director & CEO) (appointed 6 July 2018)

Richard Brimblecombe (Non-executive Director)

Anton Rohner (Non-executive Director)

Tony Louka (Non-executive Director) (appointed 5 October 2018)

Directors were in office for this entire period unless otherwise stated.

COMPANY SECRETARY

Damian Galvin

CORPORATE STRUCTURE

ReNu Energy Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is Level 1, 9 Gardner Close, Milton, QLD, 4064.

PRINCIPAL ACTIVITIES

ReNu Energy Limited is an independent power producer which delivers clean energy products and services using a build, own, operate and maintain model. The Company provides its customers with renewable energy, at a lower price, with no upfront cost.

The Company is building a portfolio of projects which utilise proven technologies such as solar PV, typically operating under long term contracts generating sustainable cash flows and creating shareholder value. Theprojects either generate electricity at our customer's premises and deliver directly to the customer behind themeter, or export electricity under long term power purchase agreements or feed in tariffs. ReNu Energy also provides solar PV and embedded networks to multi tenanted properties such as shopping centres, allowing property owners and tenants to receive the benefits of lower cost renewable energy.

ReNu Energy owns and operates several solar PV projects, including a 600 kW solar PV project in the ACT, and solar PV embedded network projects across four regional shopping centres in New South Wales and South Australia. The Company has a 30% interest in two bioenergy projects: a 1.1 MW bioenergy project in Queensland; and a 1.6 MW bioenergy project in NSW, and has a pipeline of new project opportunities.

The Company has continued to progress activities required for the remediation of its geothermal tenements in the Cooper Basin in accordance with the relevant state regulations and environmental requirements.

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DIRECTORS' REPORT(Continued)

REVIEW AND RESULTS OF OPERATIONS

Operational review

During the six months to 31 December 2018, ReNu Energy's activities were centred around thecommissioning of the last three of the shopping centre embedded networks and the ongoing development ofthe Company's bioenergy and solar project development pipelines.Key achievements included:

• •Electricity supplied to customers increased to 5,309 MWh, a 44% increase from the preceding six months and up 158% from the corresponding half year in FY2018

• •Commenced electricity supply to three new shopping centres

• •Completed the restructure of the bioenergy business, with Resonance Industrial Water Infrastructure Fund taking a 70% interest, realising net proceeds of $3,500,000

• •Signed term sheet for integrated solar / bioenergy project totalling 3.1MW in Western Australia

• •Execution of HoA with GrainCorp for the evaluation and development of three solar pilot projects

• •Raised $1.2 million in new equity from a successful entitlement offer to shareholders

• •Completed a ten for one share consolidation

Bioenergy

Operations

ReNu Energy's two bioenergy facilities operated throughout the period until the Christmas shutdowns, with a minor interruption in August while scheduled plant maintenance was undertaken by our customer at Goulburn.

Gas production increased with warmer conditions and the installation of improved gas distribution infrastructure at the Beaudesert bioenergy site. Electricity generated from site-produced biogas increased by 19% from the June half year and 38% from the corresponding half year, reflecting the commencement of generation at Goulburn in February 2018.

Total electricity supplied in the period (including generation from mains gas) increased 15% to 3,503 MWh (ReNu interest 2,207 MWh) from the preceding half year and 70% from December 2017.

Business development - bioenergy

In October 2018, ReNu Energy announced the execution of a Term Sheet with Western Australian Meat Marketing Co-operative Limited (WAMMCO) to develop an integrated 3.1MW bioenergy and solar PV facilityat WAMMCO's Katanning WA abattoir.

The Term Sheet for the Katanning site follows on from ReNu Energy's successful delivery of the 1.6MWbioenergy facility at WAMMCO's Southern Meats site in Goulburn, NSW earlier in 2018. While similar in size to Goulburn, the Katanning project will seek to integrate 2.5 MW of solar with 600 kW of biogas generationto deliver approximately 50% of the site's energy demand.

ReNu Energy is currently working with WAMMCO to complete detailed project site due diligence, front end engineering & design (FEED) and to finalise binding contracts.

In February 2019, ReNu Energy announced that it had reached agreement with German bioenergy specialist, AGO Bioenergy GmbH (AGO) to unlock further waste-to-energy opportunities across Australia and the Asia Pacific region.

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