ReNu Energy : CEO Presentation – 2020 AGM

2020 Annual General Meeting

26 November 2020

Disclaimer

The material in this presentation has been prepared by ReNu Energy Limited (ABN 55 095 006 090) and is general background information about ReNu Energy's activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transactions, currency risk.

This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to ReNu Energy's businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. ReNu Energy does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty.

All references to $ are references to Australian dollars unless otherwise specifically marked.

2

Chairman's Introduction

Boyd White

CEO & Executive Director Presentation

Greg Watson & Tim Scholefield

FY20 operational review

Year of transition, change and renewed focus

Sale of solar operations

• Completed September 2019 for $5.775m
• Enabled ReNu to repay all debt, continue operations and assess geothermal remediation options

Cost structure reset, Board and management changes

• Completed by the end of 2019: Board rationalisation, executive renewal, reduction in staffing and resourcing
• Secured skills and experience necessary to finalise geothermal remediation and assess strategic opportunities

Geothermal remediation prioritised

• Progressed abandonment of the 2 remaining geothermal wells

Mixed outcomes for bioenergy operations

• Successfully completed additional generator installation works at the Beaudesert project
• Beaudesert and Goulburn bioenergy projects underperformed due to external factors at each site (including drought, bushfires and processing plant infrastructure damage)
• Ceased provision of O&M services to the bioenergy projects in January 2020 (as part of the strategy to reduce costs and optimise operations) with handover to Hydroflux Utilities

FY20 operational review (cont.)

Year of transition, change and renewed focus

Executed the decision to divest the bioenergy assets

• Adverse operating conditions were expected to continue into and beyond FY21 with a capital contribution needed to meet ongoing operational requirements
• Board and management entered into discussions with Resonance (Alliance partner) for it to acquire ReNu's 30% interest
• Announced the sale of the bioenergy projects for $500,000 in July 2020
• Sale proceeds represented a multiple on FY2020 EBITDA of more than 8 times
• Sale completed in August 2020 with further payments of $280,000 received (second generator project, accrued interest and other services)

Actively sought future opportunities

• Following the bioenergy divestment, ReNu is well positioned to complete the geothermal remediation and actively seek new opportunities
• KPMG Corporate Finance appointed as financial advisor to assist with the identification of potential merger or acquisition opportunities financed with ReNu scrip and/or external capital
• A number of transformative opportunities are being explored
• Discussions are at an early stage, confidential and incomplete

FY20 financial results

Divestments and one-off restructuring costs influenced FY20 financial result

EBITDA by business segment	2020	2019	Movement
	$	$	$
Bioenergy*	(4,179)	(414,121)	409,942
Solar*	(11,152)	(79,348)	68,196
Geothermal	(6,477)	117,961	(124,438)
Corporate overheads	(2,493,001)	(2,406,050)	(86,951)
Total Group EBITDA	(2,514,809)	(2,781,558)	266,749
(Loss)/gain on sell down of subsidiary	(17,516)	321,351	(338,867)
Share of loss from associate	(155,463)	(80,669)	(74,794)
Depreciation	(147,925)	(315,228)	167,303
Impairment	(1,327,539)	(508,000)	(819,539)
Borrowing transaction costs	(306,851)	(39,504)	(267,347)
Interest expense	(37,488)	(83,584)	46,096
Income tax expense	-	-	-
Loss after tax	(4,507,591)	(3,487,192)	(1,020,399)

• EBITDA improvement from FY19 due to realisation of corporate cost reductions
• Available cash of $2.45m at 30 June 2020 ($2.68m at 30 Sept 2020)
• Available tax losses of A$276m for which no deferred tax asset has been recognised
• FY21 results will benefit from the cost base reset and will be influenced by geothermal remediation works
• At 30 June 2020, a provision of
  A$1.4m has been set aside for ReNu's share of the geothermal remediation, partially offset by a R&D tax incentive amount of A$0.7m

* Includes discontinued operations

Geothermal operations

Progressing closeout of historical geothermal activities

Progressed the abandonment of the 2 remaining geothermal wells during FY20

• Brought together a highly experienced team of experts from both licensees and external consultants to undertake a comprehensive review of Habanero 3 and 4 well history and status
• Collected new data at site
• Determined the preferred way to permanently abandon the wells in a safe, environmentally responsible and cost effective manner
• Obtained prices and availability of services to determine the timeline to undertake the activities
• Agreed in principle with the Regulator (South Australian Department for Energy and Mining) the activities proposed to be undertaken

Current status - abandonment programs being finalised

• Long lead items in the process of being ordered - 8 week delivery on some items
• Well programs undergoing final review prior to submission to Regulator for approval
• Discussions ongoing with 3rd parties to share services
• Discussions ongoing with the other licensee (Origin Energy) regarding commercial arrangements

Geothermal operations (cont.)

Progressing closeout of historical geothermal activities

Forward plan - first half of CY21

• Abandon the wells
• Undertake any monitoring (if required) as a condition of the abandonment
• Rehabilitate the site including transfer of items no longer required
• Surrender GRL 3

Looking Ahead

Close out the remediation and transact a new project, corporate combination or acquisition

• Abandon the 2 remaining geothermal wells and surrender GRL3
• • Program identified and costs estimated
  • Long lead item procurement underway
  • Submit well programs to Regulator
  • Finalise commercial arrangements with Origin Energy
  • Target abandonment during first half CY21
• Progress new projects, a corporate combination or acquisition
• • Experienced Board & management
  • 121 million shares on issue and ~11,000 shareholders
  • Cash on hand
  • Leverage KPMG's market reach and knowledge
  • ReNu provides an ASX listed platform
• Maintain cost discipline

Thank you Questions