RENU ENERGY LIMITED
ABN 55 095 006 090
ANNUAL REPORT 2017
VISIONMISSION generate change.deliver innovative clean energy products and services, creating sustainable value for our customers and shareholders. Contents
RENU ENERGY LIMITED | ANNUAL REPORT 2017 1
MISSIONFY18 - Strategic objectives 2FY17 - Laying the foundations for growth4About ReNu Energy6Chairman’s Letter7Managing Director’s Letter8Operations Review 11Health, Safety and Environment16Financial Report 201717 2 RENU ENERGY LIMITED | ANNUAL REPORT 2017
FY18Strategic Establish the brand• Establish ReNu Energy as a “first choice” independent power producer in our target markets• Demonstrate the customer value proposition by securing and delivering additional projects• Successful completion of the first four solar PV embedded network projects and the Goulburn Bioenergy project Develop the pipeline• Acquire new projects from VivoPower and build on the Alliance Agreement• Develop additional solar PV embedded network projects • Leverage strong market conditions and develop new paths to market RENU ENERGY LIMITED | ANNUAL REPORT 2017 3
Objectives Build the organisation• Develop a team that embraces a culture of innovation, stretch performance, accountability and zero harm• Embed efficient corporate and organisational structures to support business growth• Identify further opportunities and partners to build scale Create shareholder value • Secure assets and funding to support business growth • Maximise value to shareholders of circa $250 million of carry forward tax losses• Achieve positive EBITDA on a run rate basis in calendar year 2018As we move further into FY18, ReNu Energy is on track to create sustainable value for customers and shareholders by delivering the following strategic objectives. 4 RENU ENERGY LIMITED | ANNUAL REPORT 2017
GROWTHAt the 2016 Annual General Meeting, the Board outlined ReNu Energy’s key objectives for FY17. While the targets were ambitious, they were achieved. The Company also raised capital, attracted new shareholders supportive of the strategy and appointed Steve McLean and Anton Rohner to the Board as Non-Executive Directors, joining Chris Murray as Managing Director and Richard Brimblecombe as Non-Executive Director.Supported by our new brand, a strong team and a clear focus, ReNu Energy moves into FY18 with a solid foundation for growth. – Laying the Foundations forFY17 RENU ENERGY LIMITED | ANNUAL REPORT 2017 5
Stated objectiveKey achievementsStrengthen the Company’s position as a diversified clean energy company Re-launched the Company as ReNu EnergyExpanded into solar PV, battery storage and hybrid energy solutions Acquisition of 600 kW Amaroo Solar PV projectSecure a transformational opportunityAlliance Agreement with VivoPower Pty Ltd and conditional acquisition of Amaroo Solar PV projectSolar PV and embedded network agreement with SCA Property Group Limited Secure and strengthen the balance sheet Surface remediation of Cooper Basin geothermal facilities materially complete and final well remediation well progressedCompleted $1.42 million capital raise Identified reduction in overheads and improvement in efficiency to deliver 10% reduction in costsEstablish ReNu Energy as the brand of choice for energy generation in the agricultural sectorUpgraded the AJ Bush Bioenergy generation project Secured $2.1 million ARENA Grant Funding for 1.6 MW Goulburn Bioenergy projectDeveloped opportunities for additional projects ReNu Energy Limited (ASX: RNE) 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. The projects either generate electricity at our customer’s premises
and deliver directly to the customer behind the meter, or export electricity
under long term power purchase agreements, feed in tariffs or for sale
to the National Electricity Market. 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 has recently acquired the Amaroo Solar PV project, a
600 kW solar PV project in the ACT, and is developing 2.4 MW of solar PV
embedded network projects across four regional shopping centres. The
Company owns and operates a 1.1 MW bioenergy project in Queensland,
is constructing a 1.6 MW bioenergy project in NSW and has a pipeline of
project opportunities across the National Electricity Market.
Headquartered in Brisbane, Queensland, ReNu Energy’s team has
strong experience and capability in the renewable energy, utility and
infrastructure sectors.
ReNu Energy listed as Geodynamics Limited on the Australian Securities
Exchange (ASX) in September 2002. In October 2016, the Company
announced it would rebrand to ReNu Energy, and the new name was
approved by shareholders at the AGM on 25 November 2016.
6 RENU ENERGY LIMITED | ANNUAL REPORT 2017
AboutReNu Energy Chairman’s Letter
RENU ENERGY LIMITED | ANNUAL REPORT 2017 7
Dear ShareholderIt is a great pleasure to open the 2017 Annual Report in my first year as Chairman of ReNu Energy, at what is a time of tremendous opportunity for the Company and the renewables sector more broadly.Having watched the development of the solar industry in the US over recent years I am very pleased to see a level of traction and awareness within Australia that appears both unprecedented and irrevocable. I believe the sector will continue to present attractive commercial and investment opportunities for the foreseeable future.The recent increased levels of public discussion regarding energy costs are unlikely to abate and we look forward to ongoing government support for renewables. In June this year, Australia’s Chief Scientist Dr Alan Finkel presented the final report of the Independent Review into the Future Security of the National Electricity Market which reviewed the way Australia, with the world’s longest connected grid network, must modify its approach to energy generation and consumption to serve the needs of today and rise to the challenges of tomorrow. As burgeoning populations require more energy, innovative solutions to our energy requirements must be developed. ReNu Energy generally supports the recommendations of the Finkel report which fall into line with our vision to generate change through the provision of low cost, renewable energy to our customers. The transition of ReNu Energy to an independent power producer is well on track. We are delighted with the commercial arrangements we have secured with VivoPower and SCA Property Group and look forward to a long and mutually beneficial relationship with both parties. These arrangements reflect the capacity for ReNu Energy to tailor solar solutions in today’s market place; however we are totally committed to establishing a business framework that is suitable to a rapidly evolving renewables landscape.Alongside our operational achievements, significant corporate events in the period included Board repositioning and a well-supported capital raise. The capital raise, conducted via a placement and an entitlement offer, raised $1.42 million before costs and resulted in the entry of new investors supportive of our strategic direction. Alongside Managing Director, Chris Murray, I am joined on the Board by Mr Richard Brimblecombe who commenced in 2015 and by Mr Anton Rohner who commenced with me in March 2017, I thank them for their support. Mr Keith Spence, who was Chairman for 6 years retired at our Annual General Meeting in November 2016. We also announced the retirement of Mr Jack Hamilton and Mr George Miltenyi from the Board at the time of the capital raising. On behalf of ReNu Energy I extend our sincere appreciation to Keith, Jack and George for their long-standing service to the Company and its shareholders. Our greatest asset continues to be the dedicated and talented employees of ReNu Energy who have displayed outstanding commitment during what has been a dynamic and exciting period for the Company. On behalf of the Board, I’d like to thank the team, led by Chris Murray for their efforts.As a board we are committed to delivering value to our long standing and many new shareholders. I look forward to meeting those shareholders who can attend our 2017 Annual General Meeting and further sharing our plans to sustainably deliver upon our vision to generate change.STEVE MCLEANChairman“Our electricity system is entering an era where it must deal with changing priorities and evolving technologies. If the world around us is changing, we have to change with it. More of the same is not an option, we need to aim higher.” Dr Alan Finkel, Final Report of the Independent Review into the Future Security of the National Electricity Market 8 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Dear ShareholderIn this, my second annual report since being appointed Managing Director, I am very pleased to report the progress that ReNu Energy has made over the past 12 months. We really have lived our vision – to generate change! The most obvious example of change is the Company’s rebranding to ReNu Energy Limited, which was strongly supported by shareholders at the 2016 Annual General Meeting. We believe that ReNu Energy is a brand that is aligned with the needs and objectives of our customers and with our own corporate objectives. Feedback on the new brand has been positive and while it remains relatively new, it is being well adopted and recognised in our target markets.Delivering on our milestonesTwelve months ago, the Company set itself a number of strategic objectives for FY17 and I am pleased to confirm we delivered on those targets. The agreements announced in May 2017 with VivoPower Pty Ltd (VivoPower) and in June 2017 with SCA Property Group Limited have been transformational. These agreements establish ReNu Energy as an owner of solar PV and embedded network projects. They also set the Company on a path to developing and owning a portfolio of renewable energy projects that will deliver stable long term returns.Macro factors support adoption of ReNu Energy’s solutionsThe energy sector in Australia is facing many challenges - reliability of supply, increasing electricity and gas costs and the growing community desire for renewable energy. These challenges, coupled with the ongoing technology advancements and price reductions in solar PV and energy storage have created significant demand from energy consumers who want to take charge of their energy costs and emissions. Our customer proposition to meet this demand is simple – we provide renewable energy, at a lower price, with no upfront cost. While we are at an early stage with selling ReNu Energy’s solutions to customers, we are buoyed by the customer feedback to date that our proposition is compelling. We are targeting strong customer growth through the FY18 period. ReNu Energy strongly supports the four key outcomes outlined in the Independent Review into the Future Security of the National Electricity Market; Increased Security; Future Reliability; Reward Consumers; and Lower Emissions. Our Solar PV, embedded network and bioenergy projects already reward our customers with lower energy costs and lower emissions, and the bioenergy projects provide base load renewable electricity, supporting the reliability of the system. As the recommendations of the review are adopted we will ensure that we adapt to meet the requirements and look to deploy technologies and systems such as battery storage and demand side management to add further value to our customers. Safety remains key as we deliver across multiple projects At ReNu Energy nothing is so important that it cannot be done safely. The Company is pleased to report that for the twelve months to June 2017, it has recorded zero lost time injuries and zero medical treatment injuries. This is a great achievement and testament to the diligence of our staff and contractors. The following is an overview of the progress achieved across our key business areas during FY17.Managing Director’s LetterOur customer proposition to meet this demand is simple – we provide renewable energy, at a lower price, with no upfront cost. RENU ENERGY LIMITED | ANNUAL REPORT 2017 9
Solar PVIn May 2017 we announced a strategic alignment with VivoPower under which ReNu Energy would have first right of refusal to acquire solar projects up to 5 MW in size sourced by VivoPower in Australia. As part of the VivoPower agreement, ReNu agreed to the acquisition of the 600 kW Amaroo solar PV project. In August 2017, ReNu Energy completed confirmatory due diligence and executed the sale and purchase agreement for the project. The Amaroo solar PV project is the largest solar PV rooftop project in the Australian Capital Territory. It is operational and is underpinnned by a 20 year ACT Government Feed-in Tariff scheme, which made it an ideal project with which to launch ReNu Energy’s solar PV business. It will deliver an estimated average annual contracted 20 year cash yield of 12% per annum, delivering positive cash flow to ReNu Energy.Since entering the alliance, VivoPower has delivered a number of proposals for ReNu Energy to evaluate and we are very pleased with the project pipeline.Following the announcement in June 2017 of our agreement to provide embedded network and solar PV solutions to ASX listed SCA Property Group Limited, construction of the first of the embedded network projects, at Griffin Plaza in Griffith NSW began and the project is expected to commence commercial operation in 2017. The next three projects are expected to commence construction in coming months. We are thrilled to be working with SCA Property Group and to have the opportunity, subject to satisfactorily performance on the first four projects, to install solar PV and embedded networks in another seven shopping centres in regional Australia. The agreements with VivoPower and SCA Property Group are the cornerstone of ReNu Energy’s solar PV business. From this base we plan to own a portfolio of projects based on long-dated power purchase or embedded network agreements with good counterparties. Our first priority is behind the meter projects, where the renewable generation is installed, and the electricity produced is utilised on the premises of our customers. We are also considering utility projects which may be supported by long term power purchase agreements or the sale of electricity on a merchant basis.BioenergyFollowing a disappointing result in FY17, the bioenergy business is now operating well.The upgrade of the generators at the AJ Bush project in Beaudesert, Queensland has been completed, resulting in higher and more reliable generation for our customer and increased revenue for ReNu Energy. ReNu Energy and the Australian Renewable Energy Agency finalised the funding agreement for the 1.6 MW Goulburn Bioenergy project in May 2017. Project construction is underway and commercial operation of the project is scheduled for early 2018.The opportunities for bioenergy projects continue to expand as agricultural facilities are faced with increasing energy costs and environmental requirements. GeothermalThe Company has exited all geothermal activities with the exception of the final remediation of the Cooper Basin facilities. Geothermal Retention Licences covering areas that have had no work programme or where the works have been completed were surrendered in FY17, and in some cases converted to Geothermal Exploration Licences.The monitoring of Habanero 3 and Habanero 4 wells continued during the period and ReNu Energy is currently working with the Government of South Australia Department of Premier and Cabinet (DPC) in conjunction with the DPC’s independent expert to finalise the procedure for final plug and abandonment of these wells. Based on the work to date it is forecast that the cost of abandonment will be higher than previously envisaged. As a result the Company has increased its provision for the works from $0.77 million to $1.1 million net of the contribution from Origin Energy. Based on this provision, ReNu Energy’s cost after receipt of the R&D tax rebate will be $0.6 million.Financial ResultsThe Company reported a closing cash balance of $10.89 million for the year ending 30 June 2017. The cash balance was boosted by a placement and an entitlement offer which raised $1.42 million before costs. The value of property, plant and equipment increased by $2.79 million as a result of the upgrade on the AJ Bush Bioenergy project and the work in progress of the Goulburn Bioenergy project.The Company received an R&D tax incentive payment of $3.79 million during the year with respect to FY16 Cooper Basin expenditure. A claim of $0.31 million has been lodged with respect to research and development expenditure on the biogas business in FY16 and is expected to be received prior to the end of this calendar year. 10 RENU ENERGY LIMITED | ANNUAL REPORT 2017
The Company recorded a loss of $6.7 million, down from $10.56 million for the prior year. Key expenditure included employee expenses, bioenergy rectification costs and other project costs which were all significantly down year on year when compared to FY16. General administrative expenses included a number of one off costs such as legal and advisor fees. Management has identified and is implementing further reductions in overheads which will result in savings to the corporate business overheads of approximately 10% on a run rate basis. ReNu Energy has carry forward tax losses of circa $250 million. The tax losses are able to be used to offset taxable income, subject to compliance with relevant legislation, thus increasing the equity returns for ReNu Energy shareholders.A key objective for the Company is to achieve positive Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) on a run rate basis, in calendar year 2018.FundingThe Company has adequate cash reserves to complete the Goulburn Bioenergy project, as well as the first four SCA Property Group projects and fund the equity portion of the Amaroo project acquisition. At the time of writing we are seeking debt funding for the portfolio, ideally based on a facility that will allow capital release on the commencement of commercial operation of projects. To support the growth of the portfolio beyond those projects already announced, the Company may seek further debt and equity funding and may need to establish working capital facilities to support project construction. Outlook and strategic objectives for FY18 We move into FY18 with a solid footing and an exciting outlook, ready for growth in a dynamic sector. Through our agreements with SCA Property Group and VivoPower, the completion of the AJ Bush upgrade and the pending completion of the Goulburn Bioenergy project we are on the path towards positive EBITDA and further profitable growth. We have a strong pipeline of earnings and value accretive projects to evaluate and are receiving strong feedback from customers on our solar PV value proposition. We have set four strategic objectives for FY18 which are further detailed in this report:• Establish the brand• Develop the pipeline• Build the organisation• Create shareholder valueWe begin the financial year with a promising start on each of our four objectives and are excited by what the future holds for ReNu Energy and its shareholders.Thank youI would like to close by sincerely thanking all of our shareholders, customers and employees who have supported ReNu Energy throughout this year. It is their efforts and dedication that have positioned the Company so well.It has been a pleasure to welcome a number of new shareholders onto the register and to meet and talk with a number of our longer term shareholders during the year. I thank you for your support of the Company and look forward to continuing to share the growth of ReNu Energy with you.CHRIS MURRAYManaging DirectorManaging Director’s Letter continued... Operations Review
RENU ENERGY LIMITED | ANNUAL REPORT 2017 11
Rebrand to ReNu EnergyThe 2016 Annual General Meeting marked a significant point in the Company’s operating history with shareholders approving the rebrand to ReNu Energy. We believe that ReNu Energy is a brand that is aligned with the needs and objectives of our customers and with our own corporate objectives.With the new brand came a new focus and the execution of two transformational opportunities: the Alliance Agreement with VivoPower and a solar PV embedded network agreement with SCA Property Group Limited. These agreements provide a strong platform from which to grow the solar PV business, and enable the accelerated development of our portfolio of renewable energy projects. The projects will utilise proven technologies such as solar PV, typically operating under long term contracts generating sustainable cash flows and creating shareholder value. The projects either generate electricity at our customers’ premises and deliver directly to the customer behind the meter, or export electricity under long term power purchase agreements, feed in tariffs or for sale to the National Electricity Market. 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.Solar PV Power Purchase AgreementsReNu Energy’s Solar PV Power Purchase Agreement (PPA) product, ReNu Solar PPA, provides customers with renewable energy at a lower price with no capital outlay or ongoing maintenance costs.• With ReNu Solar PPA, we supply and install a solar PV system on our customers’ premises at zero cost to the customer. We own, operate, and maintain the solar system for the term of the agreement. We simply sell the electricity which is generated from the solar system back to the customer, at lower rates than ordinary retail electricity.• ReNu Solar PPA is a competitive alternative to current retail prices. Customers benefit from: – Tailored solution – Seamless delivery – Quick and easy installation – No upfront costs – Savings from day one of system generation – Locked in prices for length of the term – Reduced carbon emissions – Increased green credentials – Ongoing remote monitoring and maintenance at no cost – Maintenance program designed to safeguard and optimise solar assetsSolar PV Embedded NetworksReNu Energy 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, with no capital outlay or ongoing maintenance costs.ReNu Energy’s solar PV embedded networks, are the ideal solution for properties containing a number of tenants, either business or residential, who wish to take advantage of solar energy.• We install, own and operate a solar PV system on the property’s roof and also establish an embedded network within the building, metering tenants and managing all the billing. • By aggregating electricity consumption through a single parent meter, ReNu Energy is able to negotiate better retail electricity tariffs than individual tenants would be able to access. These rates are made available to embedded network customers through our ReNu Solar Connect product.• With the addition of solar power to the building during the day, overall energy consumption and cost is reduced for the property owner and tenants.• Reduces the buildings greenhouse gas emissions and potentially increases energy star ratings. Solar Solutions 12 RENU ENERGY LIMITED | ANNUAL REPORT 2017
VivoPower Alliance Agreement In May 2017, ReNu Energy announced an Alliance Agreement with global solar power company, VivoPower Pty Ltd, a wholly owned subsidiary of NASDAQ listed VivoPower International PLC. The agreement, which is for a period of 5 years, will see VivoPower originate new projects, complete design and costing, secure relevant project agreements and approvals and secure power purchase agreements, before offering these to ReNu Energy on a first right of refusal basis. If acquired, ReNu Energy will assume responsibility for the construction and commissioning of each project.ReNu Energy will pay an upfront origination fee for each new project acquired together with an alliance fee for a period of five years. ReNu Energy will also enter into a long-term power services agreement with VivoPower for the operation and maintenance of the projects.The Agreement covers new behind the meter solar PV projects operating under PPAs and utility scale solar PV projects up to 5 MW in Australia. VivoPower may also offer existing projects on a first right of refusal basis and, if acquired, ReNu Energy will pay a purchase price for each existing project. Under this arrangement ReNu Energy has acquired the 600 kW Amaroo solar PV project. Acquisition of Amaroo Solar PV ProjectReNu Energy has acquired its first solar asset, the Amaroo solar PV project. Following the announcement of the signing of a binding term sheet for the project in May 2017, a sale and purchase agreement was executed in September. Novation of the project agreements to ReNu Energy is a condition subsequent to the sale and purchase agreement.Operating since 2015, the project receives a long term premium rate for electricity under an ACT Government Feed-in Tariff scheme, and is expected to deliver an average annual cash yield of approximately 12% per annum, delivering positive cash flow to ReNu Energy.ReNu Energy will pay $2.38 million to VivoPower for the project which will initially be funded from cash reserves. A project debt facility for the project is being sought. The ongoing operations and maintenance of the Amaroo project will continue to be provided through VivoPower.Image: The Amaroo solar PV project is the largest rooftop solar PV system in the ACT.Operations Review continued... RENU ENERGY LIMITED | ANNUAL REPORT 2017 13
SCA Property Group Embedded Network Agreement In June 2017, ReNu Energy announced that it would supply solar PV and embedded network systems to shopping centres in the portfolio of SCA Property Group Limited. This agreement was a significant milestone in the development of the solar business, and marked ReNu Energy’s first solar PV embedded network. The initial stage of the agreement between ReNu Energy and SCA will see the delivery of four solar PV and embedded network systems to shopping centres in rural and regional areas. The first four systems located in Griffith NSW, Mt Gambier SA, Murray Bridge SA and Lismore NSW, will range in size from 180 kW to 1,000 kW totalling approximately 2 MW. ReNu Energy will install, own and operate the solar PV and embedded network systems within each centre for an initial period of 10 years, after which ReNu Energy has an additional three, five year options (potentially up to 25 years in aggregate). The agreement also provides ReNu Energy with the first right of refusal, subject to due diligence and satisfactory performance, to evaluate delivery of a further seven projects to centres owned by SCA Property Group.Under the agreement, ReNu Energy will execute cornerstone electricity supply contracts with centre management in each individual shopping centre, enabling ReNu Energy to build a pathway to long term contracted revenue streams from a high quality counterparty. Shopping centre tenants will also have the option to use ReNu Energy’s electricity supply contract which may provide them with a reduction in their electricity costs.The construction of the first four projects is forecast to cost $4.45 million which will be funded from existing cash reserves, with debt funding expected to be secured, post completion. The projects are forecast to generate approximately $725,000 EBITDA in their first full year of operation.These agreements provide a strong platform from which to grow the solar PV business, and enable the accelerated development of our portfolio of renewable energy projects. 14 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Bioenergy Over the course of FY17, the focus for the bioenergy business has been the delivery of the Goulburn Bioenergy project and the upgrade of the AJ Bush Bioenergy generation facility. With ever rising energy prices increasing the cost of production for the agricultural sector, and increasing environmental controls, the bioenergy business has continued to see strong interest from a range of potential customers. Bioenergy projects are able to access several revenue streams including behind the meter electricity sales under long term power purchase agreements, Large Scale Generation Certificates and Australian Carbon Credit Units. We continue to believe that these projects present good opportunities for investment. Goulburn Bioenergy ProjectIn November 2016, ReNu Energy announced that the Australian Renewable Energy Agency (ARENA) Board had confirmed it would negotiate and finalise terms of a funding agreement for the Goulburn Bioenergy project. The project is located at the Southern Meats abattoir, one of Australia’s leading sheep meat exporters. Under the long term power purchase agreement with Southern Meats, ReNu Energy will supply approximately 4,000 MWh of energy annually, representing over 50% of the abattoir’s power consumption. The funding agreement for $2.1 million in grant funding for the construction of a covered anaerobic lagoon, biogas processing and power generation facility was finalised in May this year. Construction on the project commenced in June with the excavation and creation of the anaerobic lagoon. The project will operate under a Build Own Operate Maintain (BOOM) model whereby ReNu Energy will own the digester, gas conditioning and generation equipment, with the Southern Meats abattoir obtaining on-site renewable energy under a power purchase agreement with no upfront costs and without the need to operate and maintain the plant and equipment.The project which has a dual fuel generation capacity of approximately 1.6 MW has a capital cost of $5.75 million. Following ARENA grant funding of $2.1 million and project spend to date, ReNu Energy has a remaining project cost of $1.5 million for the 2018 financial year. Commissioning of the generators and integration of the facility into the Southern Meats’ operation is scheduled for completion in January 2018. ReNu Energy acknowledges the critical role ARENA plays in assisting businesses to successfully demonstrate and commercialise emerging renewable energy technologies. With ever rising energy prices increasing the cost of production for the agricultural sector, and increasing environmental controls, the bioenergy business has continued to see strong interest from a range of potential customers.Operations Review continued... RENU ENERGY LIMITED | ANNUAL REPORT 2017 15
AJ Bush Bioenergy ProjectThe AJ Bush rendering facility at Beaudesert in QLD hosts the Company’s first BOOM project, commissioned in 2011. The project, which has a power purchase agreement in place until 2021, underwent an upgrade to replace one of the two existing generators and improve gas conditioning. The upgrade will ensure increased reliability and performance of the generators with a nameplate capacity of 1.1 MW, to the site for the remaining term of the power purchase agreement. The covered anaerobic lagoons produce sufficient biogas for in excess of 4,000 MWh of electricity annually. The project will continue to create revenue for ReNu Energy through electricity sales and the generation of Large Scale Generation Certificates.The Company successfully bid at the April Emissions Reduction Fund Auction to deliver 180,000 Australian Carbon Credit Units from a proposed additional digester at the AJ Bush facility and is in discussions with AJ Bush regarding the potential delivery of the project. Geothermal Remediation The Company has exited all geothermal activities with the exception of the final remediation of the Cooper Basin facilities. Geothermal Retention Licences covering areas that have had no work programme or where the works have been completed were surrendered in FY17, and in some cases converted to Geothermal Exploration Licences.The monitoring of Habanero 3 and Habanero 4 wells continued during the period and ReNu Energy is currently working with the Government of South Australia Department of Premier and Cabinet (DPC) in conjunction with the DPC’s independent expert to finalise the procedure for final plug and abandonment of these wells. Based on the work to date it is forecast that the cost of abandonment will be higher than previously envisaged. As a result the Company has increased its provision for the works from $0.77 million to $1.1 million net of the contribution from Origin Energy. ReNu Energy’s cost after receipt of the R&D tax rebate is forecast to be $0.6 million.Image: Griffin Plaza, Griffith N.S.W, Solar PV panel installation. Health, Safety and Environment
16 RENU ENERGY LIMITED | ANNUAL REPORT 2017
ReNu Energy is pleased to report that for the twelve months to June 2017, it recorded zero lost time injuries and zero medical treatment injuries. This is a great achievement and testament to the diligence of our staff and contractors. As the Company’s operations are developing, construction and operations activities will be primarily conducted by specialist contractors. ReNu Energy will continue to maintain and improve its own safety systems and will select contractors that have appropriate health and safety systems in place and are in alignment with our strong safety focus.EnvironmentAs a renewable energy generator, environmental sustainability is at the heart of every activity ReNu Energy undertakes. The projects that ReNu Energy is currently operating, developing and acquiring will generate approximately 10,000 MWh of renewable energy per annum and abate 30,000 tonnes of CO2e, the equivalent of taking 12,000 cars off the road.The Company will continue to meet its obligations for the final remediation of the Cooper Basin facility and is committed to minimising the impact of activities on the natural landscape, waterways, flora and fauna in a manner consistent with environmental best practice standards.Nothing is so important, that it cannot be done safely. Contents
Appendix 4E
Directors’ Report
Auditors’s Independence Declaration
to the Directors of ReNu Energy Limited
Corporate Governance Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
to the Members of ReNu Energy Limited
Shareholder Information
Corporate Directory
18
19
31
32
38
39
40
41
42
60
61
66
68
RENU ENERGY LIMITED | ANNUAL REPORT 2017 17
2017Financial ReportRENU ENERGY LIMITED Appendix 4E
PRELIMINARY FINAL REPORT
FINANCIAL YEAR ENDED 30 JUNE 2017
RENU ENERGY LIMITED ABN 55 095 006 090
Results for announcement to the market
RESULTS
Loss from ordinary activities after tax attributable to members
Net loss for the period attributable to members
FY17
$’000
(6,707)
(6,703)
FY16
$’000
(10,562)
(10,559)
CHANGE
$’000
3,855
3,856
%
CHANGE
36%
37%
DIVIDENDS
The Directors do not propose to recommend the payment of a dividend in respect of the period.
BRIEF EXPLANATION OF ANY OF THE FIGURES REPORTED ABOVE:
The loss from ordinary activities represents administrative overheads, a net loss from the Bioenergy business associated with the rectification works
and cost associated with securing transformational opportunities, offset by interest income received. In addition to this the Directors have also
decided to recognise an impairment expense to goodwill of $1,000,000 as detailed in Note 8 to the accounts.
Please refer to the attached Directors Report for a full commentary on the results for the period and refer to the 2017 Financial Report for the detailed
financial statements and explanatory notes to the accounts
FY17
$0.016
FY16
$0.029
NTA BACKING
Net tangible asset backing per ordinary security
COMPLIANCE STATEMENT
This report is based on accounts which have been audited.
TIM PRITCHARD
Company Secretary
31 August 2017
18 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Directors’ Report
Director Profiles
Your Directors submit their report for the period ended 30 June 2017. The names and details of the Directors of ReNu Energy Limited in office during
the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.
NAME & QUALIFICATIONS
EXPERIENCE
STEVE MCLEAN
B.Economics
Non-executive Chairman
(Appointed 14 March 2017)
CHRISTOPHER MURRAY
BE (Hons), MEAust, GAICD, AMP
Managing Director & CEO
RICHARD BRIMBLECOMBE
MBA & MAICD
Non-executive Director
ANTON ROHNER
B.Bus, CPA
Non-executive Director
(Appointed 14 March 2017)
Steve McLean has over twenty years’ experience in investment banking and equity capital markets. He
commenced his career with Ernst & Young Corporate Finance, before working with J.P. Morgan in Australia
and Europe. He has led equity transactions which have raised over $50 billion. Mr McLean is also a Non-
Executive Director of ASX Listed Litigation Capital Management Ltd since November 2015.
Mr McLean is the Chair of the Company’s Remuneration and Nominations Committee.
Mr Christopher Murray was appointed Chief Executive Officer and Managing Director of the Company
in December 2015 and officially commenced in the role on 11 January 2016. Most recently he was the
Chief Executive Officer of Solar Systems Pty Ltd, a renewable energy technology developer. Prior to Solar
Systems Mr Murray spent eleven years as a senior executive with Energy Developments Limited in roles
including Executive General Manager Australia, Executive General Manager Remote Energy, Project Director
West Kimberley Power Project and Group General Manager Technical Services.
With over 30 years’ experience, Mr Murray’s expertise includes strategy, business development, research,
finance and operations. He holds an honours degree in Mechanical Engineering from the University of New
South Wales, is a graduate member of the Australian Institute of Company Directors, a graduate of the
Harvard Business School, a member of Engineers Australia and a member of the Board of the Leukaemia
Foundation of Australia.
Mr Brimblecombe is an experienced executive in the agri-business and finance sectors, with a deep
industry knowledge of agribusiness, renewable energy and financial services. Mr Brimblecombe has
experience in operation of agri-business gained through senior leadership roles at Namoi Cotton,
Australia’s leading cotton processing and marketing organisation, and as General Manager for Qld / NT for
Landmark Services, a leading rural services business.
Mr Brimblecombe has also served in senior executive roles in the finance industry, specialising in lending
to the rural sector, including as Head of Specialised Agribusiness Solutions (Qld/NT) for Commonwealth
Bank of Australia and currently as Chief Executive Officer of StockCo (Australia) Pty Ltd, Australia’s and
New Zealand’s largest specialist livestock financier.
Mr Brimblecombe’s experience in the renewable energy sectors has been developed through roles as Managing
Director and subsequently Executive Chairman of Quantum Power Limited. Mr Brimblecombe holds an
Executive MBA from Bond University and is a Member of the Australian Institute of Company Directors.
Mr Brimblecombe is a member of the Company’s Remuneration and Nominations Committee and Audit and
Risk Management Committee and has been a director of the Company since 1 September 2015.
The Company notes that, due to his previous role as Managing Director of Quantum Power, Mr Richard
Brimblecombe is not considered by the ASX Corporate Governance Principles to be independent.
Mr Rohner currently holds the position of Chief Executive Officer for UPC Renewables Australia, and has
over twenty years’ experience in management, development and finance in the renewable energy and
resources sectors. For over five years, he held CFO roles for ASX200 listed companies.
Mr Rohner was Managing Director for Renewable Energy and Utilities at Macquarie Bank in Hong Kong where
he was responsible for advising and securing developments in renewable energy and utilities across Asia
and Africa. He was also Managing Director, Asia, for Roaring 40s, a partnership between China Light & Power
and Hydro Tasmania, to develop and operate sources of renewable energy throughout Asia and Australia.
This partnership developed and financially closed over 2000MW of wind projects in Asia and Australia.
Mr Rohner is the Chair of the Company’s Audit and Risk Management Committee.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 19
Directors’ Report continued...
NAME & QUALIFICATIONS
EXPERIENCE
JACK HAMILTON
B.Eng. (Chem), Ph.D, FAICD
Non-executive Director
(Resigned 31 March 2017)
GEORGE MILTENYI
LLB, BSW, FAICD
Non-executive Director
(Resigned 14 March 2017)
KEITH SPENCE
B.Sc (Hons), FAIM
Non-executive Chairman
(Resigned 25 November 2016)
Company Secretary
TIM PRITCHARD
B.Bus, MCom, MIT, CPA, GIA (Cert)
Dr Hamilton was until February 2012, Chief Executive Officer of Exergen Pty Ltd, a low emission coal
resource development company and formerly, Director of NWS Ventures with Woodside Energy. Dr Hamilton
is also a Non-executive Director of Calix Ltd. Dr Hamilton was until May 15 a Non-executive Director of
DUET Group Ltd and a previous Non-Executive Director of Federation Training. Dr Hamilton graduated from
Melbourne University with a Bachelor of Chemical Engineering and Doctorate of Philosophy in 1981.
He has over 28 years’ experience both locally and internationally in operations management, in refining,
petrochemicals and gas production, marketing, strategy and LNG project management.
Mr Miltenyi has been owner, investor and director in a wide range of commercial ventures including
companies engaged in organisational development, marketing, immigration, education, life insurance,
water distillation technology, recruitment and geothermal energy. Since 1989, Mr Miltenyi has been the
Managing Director of an organisation development and strategy company, EMD Workforce Development
which consults to some of Australia’s largest corporations.
Mr Miltenyi was instrumental in building one of Australia’s largest English language educational companies
(ACL). Recently, he was a director of Australian Life Insurance Pty Ltd, a unique company specialising in
the provision of life and home contents insurance through mortgage brokers. Mr Miltenyi was involved in
floating a recruitment firm (Rubicor), which aggregated 19 separate recruitment companies.
He founded and managed such business as Multicultural Marketing and Management, Immigration
Australia and Clean Water Technology. Mr Miltenyi has a passion for commercialising renewable energy and
low carbon emission power ventures. He was a founding director of Kuth Energy, he served on the Board
till the sale to Geodynamics. Mr Miltenyi holds a Bachelor of Law and Bachelor of Social Work from the
University of New South Wales and is a fellow of the Australian Institute of Company Directors.
Mr Spence has over 30 years’ experience in the oil and gas industry, including 18 years with Shell and has
a broad knowledge of the resources sector. He retired from Woodside in 2008 after a 14 year tenure in top
executive positions in that company. Mr Spence held many roles during his period with Woodside, including
Chief Operating Officer and Acting Chief Executive Officer.
Mr Spence is a Non-executive Director of Oil Search, Murray and Roberts Holdings Ltd and Independence
Group. He is Chairman of Base Resources Limited and the Industry Advisory Board of the Australian Centre
for Energy and Process Training.
Corporate Structure
ReNu Energy Limited is a company limited by shares, incorporated and
domiciled in Australia. It listed as Geodynamics Limited on the Australian
Securities Exchange (ASX) in September 2002. In October 2016, the
Company announced it would rebrand to ReNu Energy Limited, and the
new name was approved by shareholders at the Annual General Meeting
(AGM) on 25 November 2016.
Its registered office and principal place of business is Level 1, 9 Gardner
Close, Milton QLD 4064.
The Directors present this financial report on ReNu Energy Limited (the
Company) and its subsidiaries (collectively the Group) for the financial
year ended 30 June 2017.
Mr Tim Pritchard joined ReNu Energy in 2010 as Financial Controller and
became Chief Financial Officer in May 2011 responsible for managing all
financial activities of the Company as well as leading the information
technology team. He was appointed Company Secretary in March 2012.
Mr Pritchard has over 20 years management experience in finance,
accounting, consulting, project management and information technology.
In addition to extensive accounting experience, he has led a number
of successful business transformation and system implementation
assignments that have resulted in significantly improved financial
processes and business systems.
Before joining ReNu Energy, Mr Pritchard was most recently engaged
by leading institutional investment company, QIC as Head of
Management Information.
Post the period in review the Company announced that Mr Pritchard was
leaving the company and that Mr Damian Galvin had been appointed as
Chief Financial Officer and Company Secretary effective 4 September 2017.
20 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Principal Activities
Review and Results of Operations
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. The projects either generate electricity at our customer’s premises
and deliver directly to the customer behind the meter, or export
electricity under long term power purchase agreements, feed in tariffs
or for sale to the National Electricity Market. 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 is completing the acquisition of the Amaroo solar PV
project, a 600 kW solar PV project in the ACT, and is developing 2.2 MW
of solar PV embedded network projects across four regional shopping
centres. The Company owns and operates a 1.1 MW bioenergy project in
Queensland, is constructing a 1.6 MW bioenergy project in NSW and has a
pipeline of project opportunities across the National Electricity Market.
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.
The Company realised a loss before tax for the financial period as
set out below:
Loss before income
tax expense
Net loss attributable
to members of ReNu
Energy Limited
EARNINGS PER SHARE
Basic and diluted loss
per share
FY17
$
FY16
$
(6,706,608)
(10,843,606)
(6,702,608)
(10,559,086)
(CENTS)
(CENTS)
(1.12)
(1.98)
Supported by our new brand, a strong team and a clear focus,
ReNu Energy moves into FY18 with a solid foundation for growth
Highlights of FY17
STATED OBJECTIVE
KEY ACHIEVEMENT
Strengthen the Company’s position as
a diversified clean energy company
Re-launched the Company as ReNu Energy
Expanded into solar PV, battery storage and hybrid energy solutions
Appointed two new Board members with significant corporate finance and renewable
energy experience
Conditional acquisition of 600 kW Amaroo solar PV project
Secure a transformational opportunity
Alliance Agreement with VivoPower Pty Ltd and conditional acquisition of Amaroo Solar PV project
Secure and strengthen the balance sheet
Surface remediation of Cooper Basin geothermal facilities materially complete and final well
remediation plans are well progressed
Solar PV and embedded network agreement with SCA Property Group Limited
Completed $1.42 million capital raise
Identified reduction in overheads and improvement in efficiency to deliver 10% reduction in costs
Establish ReNu Energy as the brand
of choice for energy generation in the
agricultural sector
Upgraded the AJ Bush Bioenergy generation project
Secured $2.1 million ARENA Grant Funding for 1.6 MW Goulburn Bioenergy project
Developed opportunities for additional projects
The agreements with VivoPower and SCA Property Group are the cornerstone of ReNu Energy’s solar PV business. From this base we plan to own a
portfolio of projects based on long-dated power purchase or embedded network agreements with good counterparties. Our first priority is behind the
meter projects, where the renewable generation is installed, and the electricity produced is utilised on the premises of our customers. We are also
considering utility projects which may be supported by long term power purchase agreements or the sale of electricity on a merchant basis.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 21
Directors’ Report continued...
Dividend
No dividends were declared or paid during the year ending 30 June 2017.
The Directors do not propose to recommend the payment of a dividend
in respect of the period ended 30 June 2017.
Directors’ Interests in the Shares and Options
of the Company
As at the date of this report, the interests of the Directors in the shares
of ReNu Energy Limited were:
DIRECTOR
S. McLean
C. Murray
R. Brimblecombe
A. Rohner
FULLY PAID
ORDINARY
SHARES
-
4,736,996
28,192,979
-
SHARE
APPRECIATION
RIGHTS
-
20,000,000
-
-
Significant Changes in the State of Affairs
Significant changes in the state of affairs of the Company during the
financial period were as follows:
• Re-launched the Company as ReNu Energy Limited and expanded
offering to solar PV, battery storage and hybrid energy solutions.
• Alliance Agreement with VivoPower Pty Ltd and conditional
acquisition of Amaroo solar PV project.
• Solar PV and embedded network agreement with SCA Property
Group Limited.
• The review of the projects on foot for the Bioenergy business and the
likely role out of new projects resulted in a pre tax impairment charge
of $1 million to goodwill.
There were no other significant changes in the state of affairs of the
Company during the financial period.
Significant Events After the Balance Date
There has not arisen between 30 June 2017 and the date of this report
any item, transaction or event of a relevant and unusual nature likely,
in the opinion of the Directors of the Company, to affect significantly
the operations
Likely Developments and Expected Results
ReNu Energy moves into FY18 with a solid footing and an exciting
outlook, ready for growth in a dynamic sector.
Through the Company’s agreements with SCA Property Group Limited
and VivoPower Pty Ltd, the completion of the AJ Bush upgrade and the
pending completion of the Goulburn Bioenergy project it is on a path
towards positive EBITDA and further profitable growth. The Company
has a strong pipeline of additional revenue generative projects to
evaluate and is receiving strong feedback from customers on its solar PV
value proposition.
ReNu Energy has set four strategic objectives for FY18:
• ESTABLISH THE BRAND
• DEVELOP THE PIPELINE
• BUILD THE ORGANISATION
• CREATE SHAREHOLDER VALUE
Environmental Regulations and Performance
As a renewable energy generator, environmental sustainability is at the
heart of every activity ReNu Energy undertakes.
The Group is required to carry out its activities in accordance with
the relevant laws and regulations. The Group will continue to meet its
obligations for the final remediation of the Cooper Basin facility and
is committed to minimising the impact of its activities on the natural
landscape, waterways, flora and fauna in a manner consistent with
environmental best practice standards.
Indemnification and Insurance of Directors
and Officers
During the financial year, the Company paid premiums in respect
of contracts insuring directors, secretaries, and executive officers
of the Group and related entities against liabilities incurred as
director, secretary or executive officer to the extent permitted by the
Corporations Act 2001, subject to the terms, conditions, limitations
and exclusions of the policy. Under the terms of the policy, the Group
is precluded from disclosing details of premiums paid.
The Company has entered into deeds of indemnity, insurance and access
with each person who is, or has been, a director of the Company. To the
extent permitted by law and subject to the restrictions in s199A of the
Corporations Act 2001, the Company must continually indemnify each
director against liability (including liability for costs and expenses) for an
act or omission in the capacity as director, subject to certain exclusions.
No payment has been made to indemnify a director during or since the
end of the financial year.
22 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Company has agreed to indemnify
its auditors, Ernst & Young, as part of the terms of its audit engagement
against claims by third parties arising from the audit (for an unspecified
amount). No payment has been made to indemnify Ernst & Young during
or since the financial year.
Rounding
The amounts contained in this report and in the financial report have
been rounded to the nearest $1,000 (unless otherwise stated) under the
option available to the Company under ASIC Corporations (Rounding in
Financial/Directors’ Reports) Instrument 2016/191. The Company is an
entity to which the Class Order applies.
Share Options
UNISSUED SHARES UNDER OPTION
As at the date of this report, there are no unissued ordinary shares or
interests of the Company under option (2016 – NIL).
SHARES ISSUED ON EXERCISE OF OPTIONS
There were no ordinary shares of the Company issued during or since the
end of the financial year ended 30 June 2017 on the exercise of options
granted over unissued shares or interests (2016 – Nil).
SHARE APPRECIATION RIGHTS
As at 30 June 2017 and as at signing this report, there are 20,000,000
share appreciation rights on issue which were granted to the Managing
Director during the reporting period. No ordinary shares of the Company
have been issued during or since the end of the financial year ended 30
June 2017 on the exercise of share appreciation rights.
Directors’ Meetings
During the period, there were thirteen directors’ meetings held. The number of directors’ meetings and the number of meetings attended by each of
the Directors of the Company during the financial period are as follows:
DIRECTORS’ MEETINGS
AUDIT & RISK MANAGEMENT
COMMITTEE MEETINGS
REMUNERATION & NOMINATIONS
COMMITTEE MEETINGS
NUMBER HELD
WHILST IN OFFICE
NUMBER
ATTENDED
NUMBER HELD
WHILST IN OFFICE
NUMBER
ATTENDED
NUMBER HELD
WHILST IN OFFICE
NUMBER
ATTENDED
S. McLean
C. Murray
R. Brimblecombe
A. Rohner
K. Spence
J. Hamilton
G. Miltenyi
4
13
13
4
5
11
9
4
13
13
4
4
11
9
-
-
3
1
-
2
2
-
-
3
1
-
2
2
2
-
2
-
1
1
1
2
-
2
-
1
1
1
The Company had two committees during the year. Committee memberships as at 30 June 2017 and as at the date of this report are:
Audit & Risk Management Committee – Membership comprises two Non-executive Directors being Messrs Rohner (Chair) and Brimblecombe.
Remuneration & Nominations Committee – Membership comprises two Non-executive Directors being Messrs McLean (Chair) and Brimblecombe.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 23
Directors’ Report continued...
Auditor Independence
1. INTRODUCTION
In accordance with section 307C of the Corporations Act 2001, the
Directors received a declaration of independence from the auditor of
ReNu Energy Limited which is listed immediately after this report and
forms part of this Directors’ report and can be found on page 31.
Non-Audit Services
The remuneration report details the remuneration arrangements for Key
Management Personnel (KMP) who are defined as those persons having
authority and responsibility for planning, directing and controlling the
major activities of the Company directly or indirectly including any Director.
For the purposes of this report, the term ‘executive’ encompasses the
Managing Director and the executive management team of the Company.
The KMP covered in this report are set out in the table below.
There were no non-audit services provided by the Company’s auditor,
Ernst & Young, during the financial year ended 30 June 2017.
NON-EXECUTIVE DIRECTORS (NEDS)
S. McLean (appointed 14 March 2017)
Chairman
Proceedings on behalf of the Company
R. Brimblecombe
As far as the Directors are aware, no proceedings have been brought
or intervened in on behalf of the Company with the leave of the Court,
nor has any application for leave been made in respect of the Company,
under section 237 of the Corporations Act 2001.
Corporate Governance
The Directors recognise the need for the highest standards of corporate
behaviour and accountability and therefore support and have adhered
to the principles of Corporate Governance. The Company’s Corporate
Governance Statement is printed immediately following this Directors’
Report on page 32.
Remuneration Report (Audited)
This remuneration report for the year ended 30 June 2017 outlines
the remuneration arrangements in place for Directors and Executives
of ReNu Energy Limited in accordance with the requirements of the
Corporations Act 2001 and its Regulations. This information has been
audited as required by section 308(3C) of the Act.
The remuneration report is presented under the following sections:
1. Introduction
2. Remuneration governance
3. Executive remuneration arrangements
A. Remuneration principles and strategy
B. Approach to setting remuneration
C. Detail of Incentive Plans
4. Executive remuneration outcomes for FY17
(including link to performance)
5. Executive contracts
6. Non-executive Director remuneration
(including statutory remuneration disclosures)
7. Additional statutory disclosures
24 RENU ENERGY LIMITED | ANNUAL REPORT 2017
A. Rohner (appointed 14 March 2017)
Director
Director
K. Spence (resigned 25 November 2016)
Chairman
J. Hamilton (resigned 31 March 2017)
G. Miltenyi (resigned 14 March 2017)
Director
Director
EXECUTIVE DIRECTORS
C. Murray
OTHER EXECUTIVES
T. Pritchard
Managing Director and CEO
Chief Financial Officer
& Company Secretary
A. Mills
(ceased employment 5 August 2016)
Project Engineering
Team Leader
2. REMUNERATION GOVERNANCE
Remuneration Committee
The Remuneration & Nominations Committee comprises two Non-executive
Directors (NEDs). The Remuneration and Nominations Committee has the
primary objective of assisting the Board in developing and assessing the
remuneration policy and practices of the Directors, Chief Executive Officer
(CEO) and Senior Executives who report directly to the CEO.
Specifically, the Board approves the remuneration arrangements
of the CEO, the aggregate annual fixed remuneration salary review,
the level of the short-term incentive (STI) pool and the methodology
for awards made under the long-term incentive (LTI) plan, following
recommendations from the Remuneration & Nominations Committee.
The Board also sets the aggregate remuneration of NEDs, which is then
subject to shareholder approval, and NED fee levels.
Committee assessments incorporate the development of remuneration
policies and practices which will enable the Group to attract and retain
executives who will create value for shareholders. Executives will be fairly
and responsibly rewarded having regard to the performance of the Group,
the performance of the executive and the general market environment.
The Committee also assists the Board in its own self-evaluation by
annually reviewing the process for self-evaluation. This considers
attributes such as the qualitative and quantitative nature of the review,
and the mix between total Board review and individual Director review.
Financial Report The Remuneration & Nominations Committee meets regularly through
the year. The CEO attends remuneration committee meetings by
invitation, where management input is required. The CEO is not present
during any discussions related to his own remuneration arrangements.
Further information on the Remuneration & Nomination Committee’s
role, responsibilities and membership can be found on the Company’s
web site at www.renuenergy.com.au.
Use of Remuneration Consultants
The Company did not appoint remuneration consultants for
remuneration recommendations during the financial year.
Remuneration Report approval at FY16 AGM
The FY16 remuneration report received positive shareholder support at
the FY16 AGM with a vote of 85.2% in favour.
3. EXECUTIVE REMUNERATION ARRANGEMENTS
3A. Remuneration principles and strategy
ReNu Energy’s executive remuneration strategy is designed to attract,
motivate and retain highly skilled executives and align the interests of
executives and shareholders.
To this end, the company embodies the following principles in its
remuneration framework:
• Provide competitive salaries to attract high calibre executives;
• Link executive performance rewards to medium and longer-term
shareholder value creation through the KPI linked Short Term
Incentive Plan (STIP), and;
• Establish appropriate share price performance hurdles under its
long-term incentive plan to align executive reward with shareholder
value creation, the achievement of which will depend on the Group
achieving key corporate milestones that are integral to the Group’s
successful completion of its business plan.
The Group aims to reward its Executives with a level and mix of
remuneration commensurate with their position and responsibilities
within the Group and so as to:
• Reward Executives for Group, business division and
individual performance against targets set by reference to
appropriate benchmarks;
• Link reward with the strategic goals and performance
of the Group; and
• Ensure total remuneration is competitive by market standards.
3B. Approach to setting remuneration
The Managing Director’s and key executives’ emoluments are structured
to retain and motivate Executives by offering a competitive base
salary, a short term annual cash-based performance related component
together with longer term performance incentives through the ReNu
Energy Limited Share Appreciation Rights Plan which allow executives to
align with the success of ReNu Energy Limited.
For the year ended 30 June 2017, remuneration consists of the following
key elements:
• Fixed Remuneration – base salary and superannuation;
• Variable Remuneration under the ReNu Energy STIP – payable in cash
at the end of the financial year; and
• Variable Remuneration under the ReNu Energy Limited Share
Appreciation Rights Plan payable in Shares or equivalent cash
payment subject to satisfaction of performance conditions in
accordance with the Plan.
The level of fixed remuneration is set so as to provide a base level
of remuneration which is both appropriate to the position and is
competitive in the market. Fixed remuneration of the Managing Director
is reviewed annually by the Remuneration and Nominations Committee
and approved by the Board. Factors considered include the Group
and individual performance, relevant comparative remuneration in
the market and internal and, where appropriate, external advice. The
Remuneration and Nominations Committee has access to external
advice independent of management.
Senior Executives receive their fixed (primary) remuneration in cash.
The fixed remuneration component of senior executives who are KMP is
detailed in Table 1 of this report.
3C. Details of Incentive Plans
Short Term Incentive Plan
The objectives of the ReNu Energy STIP are to:
• Reward employees for their contribution in ensuring that ReNu Energy
achieves the corporate key deliverables;
• Encourage team work;
• Enhance ReNu Energy attracting and retaining high calibre and high
performing employees; and
• Link remuneration directly to the achievement of key annual
organisational objectives.
The Company has in place an annual STIP that establishes a pool of
funds adjusted in size according to the achievement of key company
business plan milestones in a year.
The distribution of the pool is to be determined by team achievement in
delivering the team business plan milestones.
On an annual basis, after consideration of performance against KPIs, the
Board, in line with their responsibilities, determine the amount, if any, of
the short-term incentive to be paid from the pool of funds.
ReNu Energy Share Appreciation Rights Plan
The ReNu Energy Share Appreciation Rights (SARs) Plan was approved
by the Board in October 2013. The first issue of SARs under the approved
plan rules was approved by shareholders at the November 2013 AGM.
A Share Appreciation Right is a right to receive shares in the Company or
an equivalent cash payment based on the increase in the ReNu Energy
Limited share price over a specified period, subject to satisfying certain
conditions (including a performance condition).
RENU ENERGY LIMITED | ANNUAL REPORT 2017 25
Directors’ Report continued...
The objective of the ReNu Energy SARs Plan is to:
4. EXECUTIVE REMUNERATION OUTCOMES FOR FY17
• Align the interests of eligible employees with those of shareholders;
• Provide incentives to attract, retain and/or motivate eligible
employees in the interests of the company; and
• Provide eligible employees with the opportunity to acquire Share
Appreciation Rights, and ultimately Shares, in accordance with the
plan rules.
The Board may, at its discretion, grant to an eligible employee or may
invite an eligible employee to apply for a grant of SARs. The vesting of
SARs is subject to conditions determined at the time of each issue.
Loan Share Plan
Following the end of the 2017 financial year, the Board adopted a Loan
Share Plan (Plan) to retain, motivate and attract executives and to
better align the interests of employees with those of the Group and
its shareholders by providing an opportunity for employees to acquire
shares subject to the terms and conditions of the Plan (Plan Shares).
The Plan Shares will be issued or transferred to the participants in the
Plan at market value, determined by the Board in its absolute discretion.
The Group may provide a limited recourse loan to eligible employees
who are invited to participate in the Plan to assist them to purchase
Plan Shares (Loan).
The Plan Shares will vest on the satisfaction of any applicable
performance condition, service requirement or other conditions specified
at the time of issue.
The Company intends to seek shareholder approval for the Plan and
the issue of Plan Shares to the Managing Director at the 2017 Annual
General Meeting.
The Board intends to issue Plan Shares to the Group’s incoming Chief
Financial Officer, Mr Damian Galvin, as part of his remuneration package.
Hedging of shares and options risk
Currently no Director or officer uses hedging instruments to limit their
exposure to risk on either shares or options in the Company. The Company’s
policy is that the use of such hedging instruments is prohibited.
Company performance and its link to the Company’s remuneration
principles and strategy
Under the Company’s STIP, executives are rewarded for the achievement
of certain milestones that are both measurable and outcomes based.
These milestones are set by the Board as they represent key drivers for
the creating short term shareholder value.
During the year, a cash bonus of $67,000 including superannuation was
paid to the Managing Director for achievement of his STI performance
criteria of securing transformational opportunities that would build on
the bioenergy business and deliver shareholder value.
The Company’s SARs plan has vesting conditions that are designed to
align the interests of the executives and shareholder through the delivery
of increased shareholder value, through the Company’s share price.
During FY17, the Group had limited earnings and negative earnings
per share, due to FY17 being a year where the Group completed its
transformation into a clean energy company and foundations were
laid for future growth. Consequently, the Group considers that its
performance cannot be gauged by reference to financial measures.
Instead, the Directors consider the Group’s performance should be based
on the achievement of strategic objectives during the year. During the
year, the Group achieved its stated objectives of:
• strengthening the Group’s position as a diversified clean
energy company;
• securing a transformational opportunity;
• securing and strengthening the balance sheet; and
• establishing the Group as the brand of choice for energy generation in
the agricultural sector.
The loss per share from continuing operations for the last five years
was as follows: 2012/13 - $0.26, 2013/14 - $0.03, 2014/15 - $0.03,
2015/16 - $0.02, 2016/17 - $0.01.
The closing share price for the last five years was as follows:
2012/13 - $0.086, 2013/14 - $0.047, 2014/15 - $0.036, 2015/16 - $0.023,
2016/17 - $0.016
26 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Table 1 – Remuneration of senior executives of the Group for the year ended 30 June 2017
SHORT-TERM
POST
EMPLOYMENT
SHARE BASED PAYMENT2
TOTAL
PERFORMANCE
RELATED
C. Murray
T. Pritchard
A. Mills 1
Totals
SALARY
317,246
259,085
102,170
678,501
CASH BONUS
– SHORT TERM
INCENTIVE 3
SUPERANNUATION
SHARES
(AMORTISED
COST)
SARS
(AMORTISED
COST)
61,187
-
-
61,187
40,813
24,605
2,583
68,001
-
-
-
-
47,842
-
47,842
467,088
283,690
104,753
855,531
14%
0%
0%
1 A. Mills ceased employment on 5 August 2016.
2 The share and SARs amortised cost relate to those shares and SARs issued to the CEO as approved by shareholders at the November 2016 Annual General Meeting.
3 $67,000 STI paid to C. Murray of which $5,813 was superannuation.
Table 2 – Remuneration of senior executives of the Group for the year ended 30 June 2016
SHORT-TERM
POST
EMPLOYMENT
SHARE BASED PAYMENT
TOTAL
PERFORMANCE
RELATED
G. Ward 1
C. Murray 2
T. Pritchard
A. Mills
Totals
SALARY
233,970
144,507
259,115
252,442
890,034
CASH BONUS
– SHORT TERM
INCENTIVE
SUPERANNUATION
SHARES
(AMORTISED
COST)
SARS
(AMORTISED
COST)
-
-
-
-
-
17,500
13,728
24,605
23,982
79,815
-
-
-
-
-
-
-
-
-
-
251,470
158,235
283,720
276,424
969,849
0%
0%
0%
0%
1 G. Ward ceased employment on 31 January 2016 and forfeited all SARs. Share based payment expenses of $131,825, previously recognised under AASB 2, have been reversed.
2 C. Murray was appointed on 11 January 2016.
5. SUMMARY OF EXECUTIVE CONTRACTUAL ARRANGEMENTS
Remuneration arrangements for KMP are formalised in employment agreements. Details of these contracts agreements are provided below.
Managing Director and Chief Executive Officer
Mr Christopher Murray was appointed Managing Director on 11 January 2016. Mr Murray’s remuneration package is formalised in an open ended
executive service agreement, the details of which were disclosed to the ASX in an announcement on 11 January 2016. The key terms of Mr Murray’s
contract are as follows:
• He currently receives a base remuneration including superannuation of $335,000 per annum;
• Short Term Incentive – Up to $67,000 including superannuation per annum which is only payable on the achievement of certain performance
milestones. The Managing Director’s key performance indicators are aligned to the corporate objectives set out on page 21. The Board considered
the Managing Director’s performance against the objectives for FY17 and determined that the maximum STI would be paid.
• Long term incentive (Share Appreciation Rights) –the Company granted the Managing Director a total of 20 million Share Appreciation Rights (SARs)
on 16 December 2016 (as approved by shareholder at the 2016 AGM). All SARs granted under this LTI will have a performance condition threshold of
ReNu Energy Limited achieving a minimum share price of $0.05 per share. This performance condition was selected as it provides strong alignment
with shareholders’ interests. The Board will assess whether the performance condition has been satisfied having regard to the closing share prices
on the ASX, this method has been chosen due to its transparency. No SARs will vest if the growth in the ReNu Energy share price is below threshold.
The SARs will be initially tested against the performance condition on the earliest vesting date applicable (on 11 January 2018 being 2 years from
the date Mr Murray commenced employment).
RENU ENERGY LIMITED | ANNUAL REPORT 2017 27
Directors’ Report continued...
The CEO’s termination provisions are as follows:
Resignation
NOTICE PERIOD
6 months
Termination for cause
14 days
PAYMENT IN LIEU
OF NOTICE
TREATMENT OF STI
ON TERMINATION
TREATMENT OF LTI
ON TERMINATION
6 months
None
Unvested awards forfeited
Unvested awards forfeited
Unvested awards forfeited
Unvested awards forfeited
Termination in cases
of long term illness,
disablement, or notice
without cause
Change of
strategic direction
6 months
6 months
Maybe prorated for time
and performance subject
to Board discretion
Maybe prorated for time
and performance subject
to Board discretion
14 days
6 months
Prorated for time
and performance
Prorated for time
and performance
Other Key Management Personnel
All other KMP have rolling contracts.
Other standard KMP provisions are as follows:
NOTICE PERIOD
PAYMENT IN LIEU
OF NOTICE
TREATMENT OF STI
ON TERMINATION
TREATMENT OF LTI
ON TERMINATION
Resignation
3 months
Termination for cause
None
Termination in cases of
death, disablement, or
notice without cause
3 months
3 months
None
3 months
Unvested awards forfeited
Unvested awards forfeited
Unvested awards forfeited
Unvested awards forfeited
Maybe prorated for time
and performance subject to
board discretion
Maybe prorated for time
and performance subject
to board discretion
6. NON-EXECUTIVE DIRECTOR REMUNERATION ARRANGEMENTS
Remuneration Policy
The Board seeks to set aggregate remuneration at a level which provides the Group with the ability to attract and retain directors of the highest
calibre, whilst incurring a cost which is acceptable to shareholders.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst Directors is
reviewed annually. The Board considers advice from external consultants as well as the fees paid to Non-executive Directors of comparable companies
when undertaking the annual review process. The amounts are set at a level that compensates the Directors for their significant time commitment in
overseeing the progression of the Company’s business plan.
The Constitution of ReNu Energy and the ASX Listing Rules specify that the aggregate remuneration of Non-executive Directors shall be determined
from time to time by a general meeting. An amount not exceeding the amount determined is then divided between the directors as agreed. The latest
determination was at the Annual General Meeting held on 28 November 2007 when shareholders approved an aggregate remuneration of $700,000 per year.
A this stage the Board will not seek any increase for the NED fee pool at the 2017 Annual General Meeting.
Structure
Each Non-executive Director receives a fee for being a Director of the Company. The current fee structure is to pay Non-executive Directors a gross
annual remuneration of $50,000 p.a. with the Chairman paid $65,000 p.a. There are no additional fees paid for committee memberships. There are no
retirement benefits offered to Non-executive Directors. In accordance with good corporate governance practice, the Non-executive Directors do not
participate in share and share option based remuneration plans of the Company.
The remuneration of Non-executive Directors for the year ending 30 June 2017 is detailed in Table 3 of this report and the remuneration for the
comparative year ending 30 June 2016 is detailed in Table 4 of this report.
28 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Table 3 – Non-executive Directors’ Remuneration
for the year ended 30 June 2017
Table 4 – Non-Executive Directors’ Remuneration
for the year ended 30 June 2016
DIRECTORS FEES
SUPERANNUATION
S. McLean 1
R. Brimblecombe
A. Rohner 1
J. Hamilton 2
G. Miltenyi 3
K. Spence 4
Totals
17,156
50,000
15,036
42,500
34,247
24,140
178,741
1 Appointed 14 March 2017
2 Resigned 31 March 2017
3 Resigned 14 March 2017
4 Resigned 25 November 2016
1,630
-
-
-
3,253
2,293
11,514
TOTAL
18,786
K. Spence
50,000
R. Davies 1
15,036
42,500
37,500
26,433
J. Hamilton
M. Marier 1
A. Stock 1
G. Miltenyi
190,255
R. Brimblecombe 2
DIRECTORS FEES
SUPERANNUATION
59,302
6,719
47,552
5,375
6,719
43,427
42,941
5,634
638
-
511
638
4,126
2,530
TOTAL
64,936
7,357
47,552
5,886
7,357
47,553
45,471
Totals
212,035
14,077
226,112
1 Resigned 31 August 2015
2 Appointed 1 September 2015
7. ADDITIONAL STATUTORY DISCLOSURES
Shares granted to executives as part of remuneration for the year ended 30 June 2017
During the financial year, no shares were granted to executives.
Table 5 – Share appreciation rights over equity instruments granted to Key Management Personnel
Table 5 shows the movements of the share appreciation rights, held directly, indirectly or beneficially by each key management personnel member,
including their related parties during the financial year ended 30 June 2017.
BALANCE AT
BEGINNING OF
PERIOD
RIGHTS
GRANTED
DURING THE
REPORTING
PERIOD
FAIR VALUE
OF RIGHTS
GRANTED
DURING THE
YEAR
RIGHTS
EXERCISED
DURING THE
REPORTING
PERIOD
GRANT
DATE
RIGHTS VESTED/
LAPSED DURING
THE REPORTING
PERIOD
BALANCE AS
AT THE END OF
THE REPORTING
PERIOD
KMP
C. Murray
Total
-
-
20,000,000
20,000,000
80,500
16/12/2016
80,500
-
-
-
-
20,000,000
20,000,000
The SARs have been issued in two tranches. The first tranche totalled 10,000,000 SARs with a fair value of $0.00347 per share and with the earliest
vesting date being 11 January 2018. The second tranche totalled 10,000,000 SARs with a fair value of $0.00458 and with the earliest vesting date
being 11 January 2019. The performance conditions are based on growth in the Company’s share price.
Related party transactions with Directors
The Group has engaged FinClear Execution Limited to provide services in relation to corporate finance advisory services. The key resource from
FinClear is S. McLean (Non-executive Chairman). The mandate is for a period of four months commencing 1 May 2017 at $25,000 per month. At 30 June
2017 three payments totalling $75,000 remained to be made.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 29
Directors’ Report continued...
Table 6 - Shareholdings of Key Management Personnel
Table 6 shows the movements of the Company’s ordinary shares, held directly, indirectly or beneficially by each key management personnel member,
including their related parties during the financial year ended 30 June 2017.
DIRECTORS
S. McLean
C. Murray
A. Rohner
R. Brimblecombe
J. Hamilton
K. Spence
G. Miltenyi
EXECUTIVES
T. Pritchard
A. Mills
Total
BALANCE AT
BEGINNING OF
PERIOD
01/07/16
-
-
-
23,494,149
856,708
212,413
2,648,152
284,685
301,136
PURCHASED ON
MARKET
ACQUIRED
UNDER THE
RIGHTS ISSUE 1
OTHER
MOVEMENTS 2
BALANCE AT END
OF PERIOD
30/06/17
-
-
4,436,996
300,000
-
-
-
-
-
-
-
-
4,698,830
-
-
-
56,937
-
-
-
-
-
(856,708)
(212,413)
(2,648,152)
-
(301,136)
-
4,736,996
-
28,192,979
-
-
-
341,622
-
27,797,243
4,436,996
5,055,767
(4,018,409)
33,271,597
1 Shares taken up under the rights issue on 26 April 2017 open to all existing shareholders
2 Ceased being key management personnel
Signed in accordance with a resolution of the Directors.
S. MCLEAN
Chairman
Brisbane, 31 August 2017
30 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Auditor’s Independence
Declaration to the Directors
of ReNu Energy Limited
As lead auditor for the audit of ReNu Energy Limited for the financial year ended 30 June 2017,
I declare to the best of my knowledge and belief, there have been:
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of ReNu Energy Limited and the entities it controlled during the
financial year.
ERNST & YOUNG
MIKE REID
Partner
Brisbane
31 August 2017
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
RENU ENERGY LIMITED | ANNUAL REPORT 2017 31
Corporate Governance Statement
The Board of Directors of ReNu Energy Limited is responsible for the
corporate governance of the Company and is committed to achieving
and demonstrating the highest standards of corporate governance.
The ReNu Energy Limited Corporate Governance Statement is
structured with reference to the Australian Securities Exchange
Corporate Governance Council’s Corporate Governance Principles and
Recommendations 3rd Edition the Principles of which are as follows:
Principle 1. Lay solid foundations for management and oversight
Principle 2. Structure the Board to add value
Principle 3. Promote ethical and responsible decision making
Principle 4. Safeguard integrity in financial reporting
Principle 5. Make timely and balanced disclosure
Principle 6. Respect the rights of shareholders
Principle 7. Recognise and manage risk
Principle 8. Remunerate fairly and responsibly
This Corporate Governance Statement contains certain specific information
and discloses the extent to which the Company has followed the guidelines
during the period. Where a recommendation has not been followed, that
fact is disclosed, together with the reasons for the departure.
ReNu Energy Limited’s corporate governance practices were in place
throughout the year ended 30 June 2017 and were fully compliant with
the Council’s recommendations except for the following:
Recommendation 1.5(a) - Companies should disclose in each annual
report the measurable objectives for achieving gender diversity set
by the Board in accordance with the diversity policy and progress
towards achieving them. The Company has adopted a Diversity Policy
that encourages the participation and provision of opportunity to all
interested in working at ReNu Energy. As the Company has a relatively
small work-force with many requiring specific skills that may not be
widely available, the Company has not deemed it appropriate to set
specific numeric targets as these could be inappropriately skewed by
the small sample size. ReNu Energy currently has participation from a
diverse workforce.
Recommendation 1.5(a)(1) - Companies should disclose in each annual
report the proportion of women employees in the whole organisation,
women in senior executive positions and women on the Board.
The Company has adopted a Diversity Policy that encourages the
participation and provision of opportunity to all interested in working
at ReNu Energy. As the Company has a relatively small work-force with
many requiring specific skills that may not be widely available, the
Company has not deemed it appropriate to publish specific employment
numbers as Company does not believe this information adds any
meaningful value due to its small workforce.
Recommendation 2.4 – A majority of the Board should be independent.
The Company does not satisfy this condition, as 50% of its directors
are not independent. However, it believes that it is currently structured
to act in the best interest of the shareholders and its composition is
appropriate at the current time.
32 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Recommendations 4.1 and 7.1 – The Board of a listed entity should have an
audit and risk committee which has at least three members, all of whom are
non-executive directors and a majority of whom are independent directors.
The Company does not satisfy this recommendation as its audit and risk
committee has two members both of whom are non-executive directors
and one of which is an independent director. The Company considers that
given the size and composition of the Board, the current members of the
committee are sufficient to exercise independent judgement in relation to
the Company’s corporate reporting processes to satisfy its responsibilities.
Recommendation 8.1 - The Board of a listed entity should have a
remuneration committee which has at least three members, all of whom are
non-executive directors and a majority of whom are independent directors.
The Company does not satisfy this recommendation as its remuneration
and nomination committee has two members both of whom are non-
executive directors and one of which is an independent director. The
Company considers that given the size and composition of the Board, the
current members of the committee are sufficient to exercise independent
judgement in order to satisfy its responsibilities.
For further information on corporate policies adopted by ReNu Energy
Limited, please refer to “Governance” under the Our Company tab on our
website located at www.renuenergy.com.au.
For 2017, the Company’s reporting against the Principles is as follows:
1. Lay Solid Foundations for Management
and Oversight
Companies should establish and disclose the respective roles and
responsibilities of Board and management.
The Board operates in accordance with the following principles
and guidelines.
• The Chairperson is an independent Director.
• The Board does comprise Directors with an appropriate range of
qualifications and expertise.
• The terms and conditions of the appointment of Non-executive
Directors are set out in a letter of appointment. The appointment
letter covers the following matters:
– the level of remuneration;
– the tenure of appointment;
– the expectation of the Board in relation to attendance and
preparation for all Board meetings;
– the Directors code of conduct;
– the procedures dealing with conflicts of interest; and
– the availability of independent advice - The Board has agreed a
procedure for Directors to take independent professional advice
at the expense of the Company. Prior approval of the Chairman is
required, but this will not be unreasonably withheld.
• The Board meets as often as required to attend to the affairs of the
Company and follow meeting guidelines set down to ensure all Directors
are made aware of, and have available to them all necessary information
enabling them to participate in an informed discussion of all agenda items.
• The Chairman of the Board meets regularly with the Managing Director.
Financial Report The Board is responsible for the direction and supervision of the Company’s
business on behalf of the shareholders, by whom they are elected and to
whom they are accountable. This includes ensuring that internal controls and
reporting procedures are adequate and effective. The Directors recognise
the need to maintain the highest standards of behaviour, ethics and
accountability. The primary functions of the Board include responsibility for:
• Approving objectives, goals and strategic direction for management;
• Monitoring financial performance including adopting annual budgets
and approving the Company’s financial statements;
• Ensuring that adequate systems of internal control exist and are
appropriately monitored for compliance;
• Selecting, appointing and reviewing the performance of the Managing
Director and Chief Executive Officer and reviewing the performance of
senior operational management;
• Ensuring significant business risks are identified and appropriately
managed; and
• Reporting to shareholders on performance.
To assist the Board with carrying out its responsibility and functions,
certain powers have been delegated to management, including the
authority to undertake transactions and incur expenditure on behalf of
the Company up to specified thresholds.
Management is specifically responsible for:
• Implementing the strategic objectives and operating within the
parameters set by the Board and for all other aspects of the day to
day running of the Company; and
• Providing the Board with accurate, timely and clear information to
enable the Board to perform its responsibilities.
The Company Secretary is accountable directly to the Board, through the
Chair. Each director is able to communicate directly with the Company
Secretary and vice versa.
The Company’s Managing Director’s performance and remuneration is
reviewed annually by the Non-executive Directors. The performance
criteria against which executives are assessed is aligned with the
financial and non-financial objectives of ReNu Energy Limited. Further
details of the process for evaluating performance are set out in the
Remuneration Report. The Managing Director’s performance was
evaluated during the year ended 30 June 2017.
The Board may determine from time to time to establish specific
purpose sub-committees to deal with specific issues. All matters
determined by committees are submitted to the full Board as
recommendations for Board decision. Minutes of committee meetings
are tabled at the immediate subsequent Board meeting.
2. Structure the Board to Add Value
Companies should have a board of an effective composition, size and commitment to adequately discharge its responsibilities and duties.
SKILLS, EXPERIENCE AND EXPERTISE OF DIRECTORS
The Directors in office at the date of this statement are:
NAME
POSITION
INDEPENDENT
TERM IN OFFICE
EXPERTISE
Steve McLean
Non-executive Chairman
Christopher Murray
Managing Director
Anton Rohner
Non-executive Director
Richard Brimblecombe
Non-executive Director
Yes
No
Yes
No
0.5 years
Investment banking and equity capital markets
1.6 years
Energy, renewables, risk management and project delivery
0.5 years
Finance, investment banking and renewables
2 years
Agribusiness, renewables and finance
INDEPENDENT DIRECTORS
Directors of ReNu Energy Limited are considered to be independent when they are independent of management and free from any business or other
relationship that could materially interfere with, or could reasonably be perceived to materially interfere with the exercise of their unfettered and
independent judgement.
In the context of director independence, ‘materiality’ is considered from both the Company and individual director perspective. The determination
of materiality requires consideration of both quantitative and qualitative elements. Qualitative factors considered include whether a relationship is
strategically important, the competitive landscape, the nature of the relationship and the contractual or other arrangements governing it and other
factors which point to the actual ability of the Director in question to shape the direction of the Company’s loyalty.
In accordance with the definition of independence above, and the materiality thresholds set, the Directors as marked in the previous table are
considered to be independent. Therefore, there are three Non-executive Directors, two of whom are deemed independent, and one Executive Director.
One Non-executive Director who is not deemed independent was an Officer of Quantum Power Limited purchased by ReNu Energy in September 2015.
Further details of the members of the Board including their experience and expertise are set out in the Directors’ Report.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 33
Corporate Governance Statement continued...
NON-EXECUTIVE DIRECTORS
The three Non-executive Directors periodically meet for a period of
time, without the presence of management, to discuss the operation
of the Board and a range of other matters including those relating to
Remuneration and Directors’ Nominations. Relevant matters arising from
these meetings are shared with the full Board.
• All Directors periodically complete a structured self-evaluation
questionnaire that aims to evaluate the performance of the Board as
a whole. These responses are collated and subsequently discussed by
the Board to improve the functional operations of the Board;
• The Chairman meets privately with each Director as appropriate to
discuss their individual performance; and
TERM OF OFFICE
The Company’s constitution specifies that all Directors (with the
exception of the Managing Director) must retire from office no later
than the third Annual General Meeting following their last election.
Where eligible, a Director may stand for re-election. When candidates
are submitted to shareholders for election or re-election, the Company
includes in the notice of meeting all information in its possession that is
material to the decision whether to elect or re-elect the candidate.
NOMINATIONS
The Company has established a combined Remuneration and
Nominations Committee. Membership and composition of the Committee
is discussed at the end of this Corporate Governance Statement. With
regard to the Nominations charter of the Committee, the main functions
of the Committee are to:
• Devise criteria (necessary and desirable competencies) for Board
membership for approval by the full Board;
• Identify specific individuals for nomination;
• Make recommendations to the Board for new Directors and
membership of committees being always mindful that any
recommendation should ensure there is a complementary mix of
necessary skills;
• Annually, assist the Chairman of the Company in advising Directors
about their performance and tenure;
• Oversee management succession plans, including the Managing
Director and Chief Executive Officer and first line managers;
• Review of the Board succession plan; and
• Critically examine the Committee’s performance and recommend
any changes to the responsibilities to the Board.
In devising criteria for Board membership, the Company uses a Board
skills matrix to identify any gaps in the skills and experience of the
Directors on the Board. In addition, the Company uses a combination of
professional intermediaries to identify and assess candidates as well as
the network of contacts within the Board itself.
Appropriate recruitment processes, enquiries and reference checks are
carried out to satisfy the Board that the candidate is of sound character
and has the relevant attributes required by the Board to be a director of
the Company.
PERFORMANCE
In order to ensure that the Board continues to discharge its responsibilities
in an appropriate manner, the practice of the Board is as follows:
• The performance of all Non-executive Directors is reviewed
periodically by the Chairman;
34 RENU ENERGY LIMITED | ANNUAL REPORT 2017
• The Chairman’s performance is reviewed by the Board.
During the year ended 30 June 2017, two new Board members (including
a new Chairman) with significant corporate finance and renewable
energy experience were appointed and three Board members retired.
As a result, the usual Board evaluation process outlined above was
not carried out. The Board intends to recommence its performance
evaluation process in FY18.
INDUCTION AND CONTINUING EDUCATION
Directors are expected to maintain knowledge and skills required to
discharge their duties and obligations.
All new directors participate in an induction process co-ordinated by the
Company Secretary, which assists in providing a smooth transition for
new Board members.
3. Promote Ethical and Responsible Decision-Making
Companies should actively promote ethical and responsible decision-making
The Company supports and has adopted the Code of Conduct published
by The Australian Institute of Company Directors in 2005. This code
recognises the need for Directors and employees to observe the highest
standards of behaviour and business ethics and its commitment to
ensuring compliance with the insider trading laws.
The Company has established a policy regarding Diversity that is
underpinned by four key principles:
• Fairness: Every person will have the opportunity to work and succeed
at ReNu Energy - regardless of their gender, nationality, background,
age, physical ability or sexual orientation.
• Support: The Company will support the varying needs of its diverse
workforce by providing flexible working conditions and ensuring
programs are in place to enable every ReNu Energy employee to reach
their career potential.
• Respect: Every ReNu Energy employee will be treated with dignity
and respect, recognising that success depends upon the commitment,
capabilities and diversity of the Company’s employees.
• Leadership: The Board and senior leaders will be ultimately
responsible for instilling a culture that embraces and values diversity
amongst the workforce.
At least once every 12 months, the Remuneration and Nominations
Committee will review the Diversity Policy including a review of the
diversity objectives and initiatives to ensure they remain current and
appropriate and a review of progress on the achievement of diversity
objectives over the preceding year.
Financial Report 4. Safeguard Integrity of Financial Reporting
5. Make Timely and Balanced Disclosure
Companies should have a structure to independently verify and safeguard
the integrity of their financial reporting.
Companies should promote timely and balanced disclosure of all material
matters concerning the company.
The Board has adopted an Audit & Risk Committee Charter to ensure the
truthful and factual presentation of the Company’s financial position and
to review and advise on the company’s risk management processes.
Audit & Risk Committee meetings will be held periodically throughout
the year. It is the policy of the Board that the members of the committee
shall be a minimum of two Non-executive Directors. The Audit & Risk
Committee will be chaired by a Non-executive Director.
The Chief Executive Officer and Chief Financial Officer may attend the
committee meetings by invitation.
The main functions of the committee are to:
The Board has adopted a Listing Rule 3.1 Compliance Policy, which has
been designed to ensure compliance with the ASX Listing Rule disclosure
requirements and to ensure accountability at a senior management level
for that compliance. The Company’s continuous disclosure policy can be
found at http://renuenergy.com.au/our-company/governance/.
The Company Secretary has been nominated as the person responsible
for communications with the Australian Securities Exchange (ASX). This
role includes responsibility for ensuring compliance with the continuous
disclosure requirements in the ASX listing rules and overseeing and
co-ordinating information disclosure to the ASX, analysts, brokers,
shareholders, the media and the public.
• Assess the appropriateness of accounting policies, practices and
disclosures and whether the quality of financial reporting is adequate;
The Company rigorously polices its continuous disclosure responsibilities
to ensure a fully informed market at all times.
•
Review the scope and results of internal, external and compliance audits;
• Maintain open lines of communication between the Board and
external auditors and the Company’s compliance officers;
• Review and report to the Board on the annual report, the half-year
financial report and all other financial information published by the
Company or released to the market;
•
Assess the adequacy of the Company’s internal controls and make informed
decisions regarding compliance policies, practices and disclosures;
• Ensure effective deployment of risk management processes;
• Nominate the external auditors and review the terms of their
engagement, the scope and quality of the audit and the auditor’s
independence; and
•
Review the level of non-audit services provided by the external auditors
and ensure that it does not adversely impact on auditor independence.
It is the Company’s policy for the lead audit engagement partner to be
present at the AGM to answer questions about the conduct of the audit
and the preparation and content of the Auditors’ Report. These policies
are consistent with the Corporations Act. Shareholders attending the
AGM are made aware they can ask questions of the auditor concerning
the conduct of the audit.
The Chairman of the Audit & Risk Management Committee reviews the
performance of the Committee with members and reports annually to
the Board.
The Company’s Audit and Risk Committee Charter can be found at
http://renuenergy.com.au/our-company/governance/.
The members of the Audit & Risk Committee during the year were:
Anton Rohner (Chairman from 14 March 2017)
Richard Brimblecombe
Jack Hamilton (Chairman until resignation on 31 March 2017)
George Miltenyi (until resignation on 14 March 2017)
For details on the qualifications of the audit & risk committee members,
the number of meetings of the Audit Committee held during the year and
the attendees at those meetings, refer to the Directors’ Report on page 19.
6. Respect the Rights of Shareholders
Companies should respect the rights of shareholders and facilitate the
effective exercise of those rights.
The Board of Directors aims to ensure that the shareholders, on behalf
of whom they act, are provided with all information necessary to assess
the performance of the Company. Information is communicated to the
shareholders through:
• The Annual Report, which will be distributed to all shareholders
(unless shareholders specifically indicate otherwise);
• The Annual General Meeting, and other meetings called to obtain
approval for Board action as appropriate; and
• The Company’s Corporate Internet site at www.renuenergy.com.au.
This web site is actively maintained and includes all market
announcements, research reports from analysts, briefings to
shareholders, full texts of notices of meeting and explanatory
material and compliance reports such as the quarterly cash flow
report and annual report.
Shareholders are actively encouraged to become ‘online shareholders’
by registering electronically with the Company to receive an email
notification of announcements as they are made. The Company
endeavours to respond to all shareholder queries on a prompt and
courteous basis.
The Company encourages shareholders to attend and participate in
AGMs to discuss relevant issues of interest by scheduling the AGM at an
appropriate time and CBD location. If shareholders are unable to attend
the AGM personally, they are encouraged to participate through the
appointment of a proxy or proxies. Notices of meeting are accompanied
by explanatory notes to provide shareholders with information to enable
them to decide whether or not to attend and how to vote upon the
business of the meeting.
All information disclosed to the ASX is posted on the Company’s website
as soon as it is disclosed to the ASX.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 35
Corporate Governance Statement continued...
7. Recognise and Manage Risk
Companies should establish a sound system of risk oversight,
management and internal control.
The Company is committed to having a culture of risk management and
has established a risk management system that supports a pro-active
approach to managing risk and to exploiting opportunity at all levels.
A risk review process is conducted for each component phase of the
Company’s business plan and these will continue to be conducted for
subsequent stages to highlight major risk areas and plan the treatment
to manage those risks. In addition, a formal risk management plan
is included as part of every major capital acquisition or procurement
decision and key risk/opportunity areas and their drivers are included in
the Management/Board reporting system.
Management, through the Managing Director and Chief Executive
Officer, is responsible for designing, implementing and reporting on
the adequacy of the Company’s risk management and internal control
system. Management reports to the Audit and Risk Committee and the
full Board on the Company’s key risks and the extent to which it believes
these risks are being managed. This is performed on a six-monthly basis
or more frequently as required by the Board or Committee.
The Board is responsible for satisfying itself annually, or more frequently
as required, that management has developed and implemented a sound
system of risk management and internal control. It reviews strategic,
operational and technical risks in conjunction with, and as a key input to
an annual corporate strategy workshop attended by senior management.
This workshop reviews the Company’s strategic direction in detail and
includes specific focus on the identification of business risks which could
prevent the Company from achieving its objectives. Management are
required to ensure that appropriate controls and mitigation strategies
are in place to effectively manage those risks. Compliance and reporting
risks are reviewed on an ongoing basis and independently audited from
time to time. The Audit and Risk Committee oversees the adequacy and
comprehensiveness of risk reporting from management.
The Company does not have an internal audit function. Given the
Company’s current size and nature of its operations, the Board considers
it appropriate to engage external advisers (independent of the external
auditor) as appropriate from time to time to undertake various tasks
that an internal audit function would perform. No external advisors were
engaged during the current reporting period to undertake activities that
would normally be undertaken by an internal audit function.
The Board receives a written assurance from the Chief Executive Officer
and the Chief Financial Officer that to the best of their knowledge and
belief, the declaration provided by them in accordance with section
295A of the Corporations Act is founded on a sound system of risk
management and internal control and that the system is operating
effectively in relation to financial reporting risks. The Board notes that
due to its nature, internal control assurance from the Chief Executive
Officer and Chief Financial Officer can only be reasonable rather than
absolute. This is due to such factors as the need for judgement, the use
of testing on a sample basis, the inherent limitations in internal control
and because much of the evidence available is persuasive rather than
conclusive and therefore is not and cannot be designed to detect all
weaknesses in control procedures.
36 RENU ENERGY LIMITED | ANNUAL REPORT 2017
The Company considers economic, environmental and social
sustainability factors as part of its consideration of both strategic and
operational risk. Each year, the Company undertakes an assessment
to determine those risks and opportunities that are most important
to its business and stakeholders. Following its annual assessment, the
Company has determined that it does not, at this time, have a material
exposure to environmental or social sustainability risks.
ECONOMIC RISKS
Information in respect of the Company’s assessment of the principal
economic risks that could have a material impact on the Company, and
the Company’s mitigation strategies for those risks is set out below.
•
Project development risk - The Company’s business model includes
involvement in power generation projects in various capacities,
including as an EPC contractor, in a builder, owner and operator
capacity and in a BOOM capacity (build, own, operate and maintain).
Accordingly, the following project risks apply to the Company:
– Design and Engineering – the Company outsources the majority of its
design and engineering services. If a design is ultimately defective,
this may have a material adverse effect on the Company’s reputation,
operations and financial performance. It may also make it difficult for
the Company to meet its obligations under its respective agreements.
– Procurement risk – the Company may procure the construction and
installation of its various projects. The quality of these supplied
products may not comply with specified requirements or be
acceptable or suitable for its intended use.
– Project construction risk – the projects have levels of project
construction risk comparable to projects of similar size and type,
these risks include the project not being completed on time and
within budget or to the agreed specifications. Accordingly, delays in
completion of a project and the resultant increase in funding costs
and delays in commencement of cash flows, increases in capital
required to complete construction and the insolvency of the head
contractor, a major sub-contractor and/or a key equipment supplier,
can all potentially have an adverse impact on the Company.
– Counterparty risk – the Company enters into long term contracts
with customers and is exposed to loss of revenue and stranded
assets if a counterparty has financial difficulties or becomes
insolvent. The Company mitigates this risk by conducting due
diligence on its counterparties and entering into contracts that
provide the Company with an appropriate level of protection.
•
•
Warranty and defects liability – the Company is required to
rectify defects during the defects liability period on projects it
has constructed on an EPC basis and provide a warranty period.
These rectifications may result in cost to the Company. The
Company mitigates these risks by conducting due diligence on its
counterparties and entering into contracts that provide an adequate
level of protection and obtaining insurance where available.
Business development risk – the success of the Company is
heavily reliant on its reputation and branding. There is a risk that
the Company may not be able to establish and maintain its brand
which is critical to attracting and growing a user base and creating
technology acceptance. The Company aims to address this risk by
closely monitoring the sector in which it operates and fostering strong
relationships with key stakeholders.
Financial Report •
•
Intellectual property – there is a risk that other individuals or
companies may claim to have an interest in intellectual property
used by the business. The Company may also acquire trade secrets
and other intellectual property rights that are important assets.
The Company mitigates this risk by relying on a combination of
confidentiality and license agreements with its consultants and third
parties with whom it has relationships, as well as domain name, trade
secret, copyright and patent laws, to protect its brand and other
intellectual property rights.
Government policy and regulation may change – the Company
operates in the energy industry which is subject to extensive laws
and regulations relating to, among other things, the conduct of
generation operations, participation in the National Electricity Market,
use of distribution systems and supply of energy to customers. The
Company receives revenue from mechanisms in the Renewable Energy
Target legislation and the Emissions Reduction Fund legislation.
Future changes in such policies or laws are beyond the control of
the Company. Changes in law or regulatory policy could adversely
affect the Company’s business. The adoption of recommendations in
the report of the Independent Review into the Future Security of the
National Electricity Market which was chaired Australia’s Chief Scientist
Dr Alan Finkel could adversely affect the Company’s business. The
Company mitigates these risks by: monitoring potential changes and
adjusting business models to suit; and by liaising with regulators and
legislators to garner and retain support for the industry.
8. Remunerate Fairly and Responsibly
Companies should ensure that the level and composition of remuneration is
sufficient and reasonable and that its relationship to performance is clear.
REMUNERATION
It is the Company’s objective to provide maximum stakeholder benefit
from the retention of a high-quality Board and executive team by
remunerating Directors and key executives fairly and appropriately with
reference to relevant employment market conditions. The Managing
Director’s and key executives’ emoluments are structured to retain and
motivate executives by offering a competitive base salary together with
short and long-term performance incentives through cash, shares and
options which allow executives to share in the success of ReNu Energy
Limited. The Board will assess the appropriateness of the nature and
amount of emoluments of such officers on a periodic basis by reference
to relevant employment market conditions with the overall objective of
ensuring maximum stakeholder benefit.
The Company currently has three Non-executive Directors and a Managing
Director. The Company’s Managing Director does not receive Directors’ fees
and his remuneration package is formalised in a service agreement. The
Non-executive Directors’ maximum aggregate remuneration as approved by
shareholders is currently $700,000 and is set at a level that compensates
the directors for their significant time commitment in overseeing the
progression of the Company’s business plan.
There are no retirement benefits offered to Non-executive Directors other
than statutory superannuation. For a full discussion of the Company’s
remuneration philosophy and framework and the remuneration received
by Directors and Executives in the current period, please refer to the
Remuneration Report which is contained within the Directors’ Report.
The Company has an equity based remuneration scheme for the
Managing Director and other senior executives. Currently no Director or
officer uses hedging instruments to limit their exposure to risk on either
shares or options in the Company. The Company’s policy is that the use
of such hedging instruments is prohibited.
REMUNERATION AND NOMINATIONS COMMITTEE
The Remuneration and Nominations Committee operates under a charter
approved by the Board. Remuneration and Nomination Committee
meetings are held at least semi-annually and otherwise as required
throughout the year. It is the policy of the Board that the members of
the Committee shall be a minimum of two Non-executive Directors.
The Remuneration and Nominations Committee will be chaired by an
independent Non-executive Director.
With regard to the Remuneration charter of the Committee, the main
functions of the Committee are to:
•
•
•
•
•
•
•
•
Set the terms and conditions of employment for the Chief
Executive Officer;
Set policies for Senior Executive remuneration including the Chief
Executive Officer and other Executive Directors (if any) and review
from time to time as appropriate;
Set policies for Non-executive Director remuneration and review and
recommend the level of remuneration with the assistance of external
consultants as appropriate;
Make recommendations to the Board on remuneration for the Chief
Executive Officer and Executive Director(s);
Review and approve the recommendations of the Chief Executive
Officer on the remuneration of Senior Executives;
Review all equity based plans and make recommendations to the
Board for approval;
Review and approve the design of Executive Incentive Plans ensuring
appropriate performance hurdles are in place;
Review transactions between the group and the Directors, or any
interest associated with the Directors, to ensure the structure and the
terms of the transaction are in compliance with the Corporations Act
2001 and are appropriately disclosed; and
•
Review and approve the annual Remuneration Report contained
within the Directors’ Report.
The Company’s Remuneration and Nomination Committee Charter can be
found at: http://renuenergy.com.au/our-company/governance/.
The members of the Remuneration and Nominations Committee during
the year were:
Steve McLean (Chairman from 14 March 2017)
Richard Brimblecombe (from 31 March 2017)
Keith Spence (Chairman until resignation on 25 November 2016)
Jack Hamilton (until resignation on 31 March 2017)
George Miltenyi (until resignation on 14 March 2017)
For details on the number of meetings of the Remuneration and
Nominations Committee held during the year and the attendees at those
meetings, refer to the Directors’ Report.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 37
Consolidated Statement
of Comprehensive Income
FINANCIAL YEAR ENDED 30 JUNE 2017
NOTE
Site Income
Project Income
Total Revenue
Interest Income
Other Income
Impairment of Assets Held for Sale
Impairment of Goodwill
Personnel Expenses
General & Administrative Expenses
Other Operating Expenses
Share of Loss in Associate
Total Expenses
Loss before Income Tax Expense
Income Tax Benefit
Loss after Income Tax Expense
Other Comprehensive Income
Items that may be reclassified subsequently to profit and loss
Exchange differences on translation of foreign operations
Other Comprehensive Income for the period
Total Comprehensive Loss for the period
Attributable to:
Equity holders of the Parent
Earnings Per Share
Basic and Diluted Loss per share (cents per share)
Basic and Diluted Loss per share attributable to the equity holders of the entity
(cents per share)
3A
3B
3C
3D
4
13
16
16
FY17
$’000
354
222
576
290
320
-
(1,000)
(2,566)
(3,685)
(642)
(7,283)
(6,707)
-
(6,707)
4
4
FY16
$’000
165
225
390
646
3,224
(1,594)
(3,096)
(3,191)
(2,313)
(4,644)
(266)
(11,234)
(10,844)
282
(10,562)
3
3
(6,703)
(10,559)
(6,703)
(10,559)
(1.12)
(1.12)
(1.98)
(1.98)
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes
38 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Consolidated Statement of Financial Position
AS AT 30 JUNE 2017
CURRENT ASSETS
Cash and Cash Equivalents
Inventories
Trade and Other Receivables
Assets Held for Sale
Total Current Assets
NON-CURRENT ASSETS
Property, Plant and Equipment
Intangible Assets
Total Non-Current Assets
Total Assets
CURRENT LIABILITIES
Trade and Other Payables
Provisions
Total Current Liabilities
NON-CURRENT LIABILITIES
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
EQUITY
Issued Capital
Other Reserves
Accumulated Losses
Total Equity
NOTE
21(A)
5
6
7
8
9
10
10
12
13
FY17
$’000
FY16
$’000
10,890
30
1,146
-
12,066
2,821
-
2,821
14,887
1,752
1,162
2,914
269
269
3,183
11,704
14,406
1,229
5,048
250
20,933
28
1,000
1,028
21,961
3,016
1,516
4,532
291
291
4,823
17,138
353,129
60
(341,485)
11,704
351,908
8
(334,778)
17,138
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 39
Consolidated Cash Flow Statement
FINANCIAL YEAR ENDED 30 JUNE 2017
Operating Activities
Customer Receipts
Net Goods and Services Tax Received
Payments to Suppliers and Employees
Net Interest Received
Net cash flows used in Operating Activities
Investing Activities
Proceeds from Government Grants
Proceeds from R&D Tax Incentive
Purchase of Property, Plant & Equipment
Payments for Rehabilitation expenditure
Payments for Quantum Projects and Rectification Costs
Payments for Quantum Acquisition (including working capital)
Proceeds from Sale of Property, Plant & Equipment
Cash Acquired from Business Acquisition
Net cash flow used in investing activities
Financing Activities
Proceeds from issue of shares
Net cash flow provided by financing activities
Net decrease in cash and cash equivalents
Add: Opening cash and cash equivalents at 1 July
Cash and Cash Equivalents at 30 June
NOTE
21(B)
21(A)
FY17
$’000
526
677
(6,080)
286
(4,591)
-
3,791
(1,830)
(1,450)
(883)
-
226
-
(146)
1,221
1,221
(3,516)
14,406
10,890
FY16
$’000
454
889
(4,816)
664
(2,809)
350
2,381
(735)
(7,724)
(4,148)
(1,527)
211
407
(10,785)
-
-
(13,594)
28,000
14,406
The above Consolidated Cash Flow Statement should be read in conjunction with the accompanying notes.
40 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Consolidated Statement of Changes in Equity
OTHER
CAPITAL
RESERVE
(NOTE 13)
$’000
FOREIGN
CURRENCY
TRANSLATION
RESERVE
(NOTE 13)
$’000
FINANCIAL YEAR ENDED 30 JUNE 2017
At 1 July 2016
Loss for the period
Other comprehensive income
Total loss for the period
Equity Transactions:
Shares issued
Transaction Cost on Share Issue
Share Based Payment
At 30 June 2017
FINANCIAL YEAR ENDED 30 JUNE 2016
At 1 July 2015
Loss for the period
Other comprehensive income
Total loss for the period
Equity Transactions:
Shares Issued
Share Based Payments
Employee Equity Benefits Reserve
transferred to Retained Earnings
ISSUED
CAPITAL
$’000
351,908
-
-
-
1,426
(205)
-
353,129
-
-
-
3,570
-
-
-
-
-
-
-
48
48
-
-
-
-
(132)
(11,098)
-
348,338
11,230
ACCUMULATED
LOSSES
$’000
(334,778)
(6,707)
-
(6,707)
-
-
-
8
-
4
4
-
-
-
12
(341,485)
5
-
3
3
-
-
-
8
(335,314)
(10,562)
-
(10,562)
-
-
11,098
(334,778)
TOTAL
EQUITY
$’000
17,138
(6,707)
4
(6,703)
1,426
(205)
48
11,704
24,259
(10,562)
3
(10,559)
3,570
(132)
-
17,138
At 30 June 2016
351,908
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 41
Note 1 – Corporate Information
The financial report of ReNu Energy Limited (formerly Geodynamics
Limited) and its subsidiaries (collectively the Group) for the year ended
30 June 2017 was authorised in accordance with a resolution of the
Directors on 29 August 2017.
ReNu Energy Limited is a for profit Company limited by shares,
incorporated and domiciled in Australia whose shares are publicly traded
on the Australian Securities Exchange. The nature of the operations and
principal activities of the Company are described in the Directors’ Report.
Note 2 – Summary of Significant Accounting Policies
A. BASIS OF PREPARATION
The financial report is a general purpose financial report which has
been prepared in accordance with the requirements of the Corporations
Act 2001, Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board. The
financial report has also been prepared on a historical cost basis. The
financial report is presented in Australian dollars and all values are
rounded to the nearest thousand dollars ($000) unless otherwise stated.
The Directors have adopted the going concern assumption in preparing
the financial report.
B. COMPLIANCE WITH IFRS
The financial report complies with Australian Accounting Standards
and International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board.
C. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS
Certain Australian Accounting Standards and interpretations have
recently been issued or amended but are not yet effective and have not
been adopted by the Company for the annual reporting period ended 30
June 2017.
The new standards and amendments to standards that are mandatory
for the first time for the financial year beginning 1 July 2016 are:
Certain new accounting standards and interpretations have been
published that are not mandatory for the 30 June 2017 reporting period.
The following new accounting standards and interpretations are not
likely to affect future periods:
• AASB 2016-1 Amendments to Australian Accounting Standards –
Recognition of Deferred Tax Assets for Unrealised Losses
(effective 1 July 2017);
• AASB 2016-2 Amendments to Australian Accounting Standards –
Disclosure Initiative (effective 1 July 2017);
• AASB 2017-2 Amendments to Australian Accounting Standards –
Further Annual Improvements 2014-2016 Cycle (effective 1 July 2018);
•
AASB 15 Revenue from Contracts with Customers (effective 1 July 2018);
AASB 15 provides a single, principles-based five-step model to be
applied to all contracts with customers. Guidance is provided on
topics such as the point at which revenue is recognised, accounting
for variable consideration, costs of fulfilling and obtaining a contract
and various related matters. New disclosures regarding revenue are
also introduced.
A detailed and complete impact assessment has not yet been finalised
and will be completed during the course of the next financial year;
• AASB 16 Leases (effective 1 July 2019);
AASB 16 provides a new lessee accounting model which requires a
lessee to recognise assets and liabilities for all leases with a term of
more than 12 months, unless the underlying asset is of low value.
A lessee measures right-of-use assets similarly to other non-financial
assets and lease liabilities similarly to other financial liabilities.
Assets and liabilities arising from a lease are initially measured on a
present value basis. The measurement includes non-cancellable lease
payments (including inflation-linked payments), and also includes
payments to be made in optional periods if the lessee is reasonably
certain to exercise an option to extend the lease, or not to exercise
an option to terminate the lease. AASB 16 contains disclosure
requirements for lessees.
• AASB 2014-4 Clarification of Acceptable Methods of Depreciation and
Amortisation (effective 1 July 2016);
A detailed and complete impact assessment has not yet been finalised
and will be completed during the course of the next financial year;
• AASB 2015-1 Amendments to Australian Accounting Standards – Annual
Improvements to Australian Accounting Standards (effective 1 July
2016); and
• AASB 2015-2 Amendments to Australian Accounting Standards –
Disclosure Initiative: Amendments to AASB 101 (effective 1 July 2016).
None of these amendments to standards affected any of the amounts
recognised in the current period or any prior period and are not likely to
affect future periods.
• AASB 9 Financial Instruments (effective 1 July 2018);
AASB 9 as issued replaces AASB 139 and includes a logical model for
classification, measurement and derecognition of financial assets,
a single, forward-looking “expected loss” impairment model and a
substantially reformed approach to hedge accounting.
A detailed and complete impact assessment has not yet been finalised
and will be completed during the course of the next financial year.
The following are yet to be assessed:
• AASB 2016-5 Amendments to Australian Accounting Standards –
Classification and Measurement of Share-based Payment Transactions
(effective 1 July 2018).
42 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Notes to the Financial StatementsFinancial Report
Generally, there is a presumption that a majority of voting rights results
in control. To support this presumption, and when the Group has less
than a majority of the voting or similar rights of an investee, the Group
considers all relevant facts and circumstances in assessing whether it
has power over an investee, including:
• The contractual arrangement(s) with the other vote holders
of the investee;
• Rights arising from other contractual arrangements; and
• The Group’s voting rights and potential voting rights.
The Group reassesses whether or not it controls an investee if facts and
circumstances indicate that there are changes to one or more of the
three elements of control. Consolidation of a subsidiary begins when the
Group obtains control over the subsidiary and ceases when the Group
loses control of the subsidiary. Assets, liabilities, income and expenses of
a subsidiary acquired or disposed of during the year are included in the
consolidated financial statements from the date the Group gains control
until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI)
are attributed to the equity holders of the parent of the Group and to
the non-controlling interests, even if this results in the non-controlling
interests having a deficit balance. When necessary, adjustments
are made to the financial statements of subsidiaries to bring their
accounting policies into line with the Group’s accounting policies. All
intra-group assets and liabilities, equity, income, expenses and cash
flows relating to transactions between members of the Group are
eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without a loss of
control, is accounted for as an equity transaction. If the Group loses
control over a subsidiary, it derecognises the related assets (including
goodwill), liabilities, non-controlling interest and other components of
equity while any resultant gain or loss is recognised in profit or loss. Any
investment retained is recognised at fair value.
D. GOING CONCERN
Due to the formative nature of the biogas and solar businesses in the
group, the ability of the group to continue as a going concern is uncertain
and dependent on its ability to secure appropriate projects and related
funding for project investment, and to manage cash resources effectively.
In the event that appropriate projects and funding is not secured, the
entity may not be able to realise the value of its assets and extinguish its
liabilities in the ordinary course of business as a going concern.
A major focus of the Board and management is on ongoing cash flow
management to ensure that the Group always has sufficient funds to
cover its planned activities and any ongoing obligations. At 30 June
2017, the Directors are satisfied the Group has sufficient funds to
extinguish creditors and liabilities in the ordinary course of business
for at least the next 12 months from the date of signing this report
which is further supported by the ReNu Energy net asset position. The
group has identified a pipeline of projects and is actively progressing
their evaluation and planning. As such the directors believe that the
combination of the expertise of management and progress to date
will result in the group securing and completing lucrative projects
and accordingly have applied the going concern basis of accounting in
preparing the financial statements. No adjustment has been made to
recorded assets and liability amounts and classifications should the
group not continue as a going concern.
ReNu Energy continues to actively monitor developments in clean energy
markets and technologies to assess opportunities to acquire interests
in projects or companies complimentary to its current projects where it
is able to utilise its skills and capacity to develop further clean energy
products and services that provide an acceptable return for shareholders.
E. BASIS OF CONSOLIDATION
The consolidated financial statements comprise the financial statements
of the Group as at 30 June 2017. Subsidiaries are all entities which the
Group controls. Control is achieved when the Group is exposed, or has
rights, to variable returns from its involvement with the investee and has
the ability to affect those returns through its power over the investee.
Specifically, the Group controls an investee if and only if the Group has:
• Power over the investee (i.e. existing rights that give it the current
ability to direct the relevant activities of the investee);
• Exposure, or rights, to variable returns from its involvement
with the investee; and
• The ability to use its power over the investee to affect its returns.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 43
Notes to the Financial Statements continued...
Controlled entity/subsidiaries
The consolidated financial statements include the financial statements
of the ultimate parent company, ReNu Energy Limited, and its controlled
entities listed in the following table:
NAME
PARENT ENTITY
ReNu Energy Limited
EQUITY INTEREST %
COUNTRY OF
INCORPORATION
FY17
FY16
Australia
100
100
DIRECTLY CONTROLLED BY RENU ENERGY LIMITED
Geodynamics (Savo Island) Pty Ltd
Geodynamics Share Plans Pty Ltd
KUTh Energy Limited
Quantum Power Limited
GDY Solar Pty Ltd
RE Holding Company One Pty Ltd
RE Holding Company Two Pty Ltd
RE Holding Company Three Pty Ltd
SP Project Company Pty Ltd
EN Project Company One Pty Ltd
SP Project Company One Pty Ltd
SP Project Company Two Pty Ltd
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
DIRECTLY CONTROLLED BY KUTH ENERGY LIMITED
KUTh Exploration Pty Ltd
KUTh Pacific Ltd
Australia
Australia
DIRECTLY CONTROLLED BY KUTH PACIFIC LTD
100
100
100
100
100
100
100
100
100
100
100
100
100
100
KUTh Exploration (Fiji) Limited
KUTh Energy (PNG) Ltd 1
Fiji
100
PNG
50.2
KUTh Energy (Vanuatu) Ltd
Vanuatu
100
DIRECTLY CONTROLLED BY QUANTUM POWER LIMITED
BioEnergy Projects
Quantum Gas Energy
Quantum Investment Holdings
Quantum Engine Power
Australia
Australia
Australia
Australia
Quantum Power (Africa)
South Africa
100
100
100
100
100
100
100
100
100
100
-
-
-
-
-
-
-
100
100
100
50.2
100
100
100
100
100
100
1
At 30 June 2016 KUTh Energy (PNG) Ltd is substantially dormant. Ongoing
administrative costs are incurred by ReNu Energy Limited (ultimate parent entity).
At 30 June 2017 the non-controlling interest amount is $nil (2016 - $nil).
44 RENU ENERGY LIMITED | ANNUAL REPORT 2017
F. SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS
The carrying amounts of certain assets and liabilities are often
determined based on judgement, estimates and assumptions of future
events. The key estimates and assumptions that have a significant risk
of causing a material adjustment to the carrying amounts of certain
assets and liabilities within the next annual reporting period are:
Provision for site rehabilitation
The Company reviews rehabilitation requirements for its geothermal
exploration tenements on a six-monthly basis by undertaking an in-house
analysis of the costs to rehabilitate the sites including the plugging and
abandoning of wells as appropriate. The costs include obligations relating
to abandonment of remaining wells and remediation of surface works.
Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The
cost of an acquisition is measured as the aggregate of the consideration
transferred, which is measured at acquisition date fair value, and the amount
of any non-controlling interests in the acquiree. For each business combination,
the Group elects whether to measure the non-controlling interests in the
acquiree at fair value or at the proportionate share of the acquiree’s identifiable
net assets. Acquisition-related costs are expensed as incurred and included
in administrative expenses. When the Group acquires a business, it assesses
the financial assets and liabilities assumed for appropriate classification and
designation in accordance with the contractual terms, economic circumstances
and pertinent conditions as at the acquisition date. This includes the separation
of embedded derivatives in host contracts by the acquiree.
Goodwill is initially measured at cost (being the excess of the aggregate
of the consideration transferred and the amount recognised for
non-controlling interests) and any previous interest held over the net
identifiable assets acquired and liabilities assumed.
After initial recognition, goodwill is measured at cost less any
accumulated impairment losses. For the purpose of impairment testing,
goodwill acquired in a business combination is, from the acquisition
date, allocated to each of the Group’s cash-generating units that are
expected to benefit from the combination, irrespective of whether other
assets or liabilities of the acquiree are assigned to those units.
Non-current assets held for sale.
The Group classifies non-current assets as held for sale if their carrying
amounts will be recovered principally through sale rather than through
continuing use. Such non-current assets are measured at the lower of
their carrying amount and fair value less costs to sell.
The criteria for held for sale classification is regarded as met only when
the sale is highly probable and the asset is available for immediate sale
in its present condition.
Property, plant and equipment and intangible assets are not depreciated
or amortised once classified as held for sale.
Assets classified as held for sale are presented separately as current
items in the statement of financial position.
At 30 June 2016 the assets held for sale represent certain surplus
geothermal assets. The assets were held at the Group’s best estimate
of their fair value less cost to sell. These assets were fully disposed of
during the period ended 30 June 2017.
Financial Report G. FOREIGN CURRENCY TRANSLATION
I. INTANGIBLES
Both the functional and presentation currency of ReNu Energy is
Australian dollars ($A). Transactions in foreign currencies are initially
recorded in the functional currency at the exchange rates ruling at the
date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the rate of exchange ruling at the
balance date.
Differences arising on the settlement or translation of monetary items are
recognised in the profit and loss. Non-monetary items that are measured
in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction. Non-monetary
items measured at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value was determined.
Exchange differences arising from the translation of financial
statements of foreign subsidiaries are taken to the foreign currency
translation reserve at the balance date.
H. PROPERTY, PLANT & EQUIPMENT
Property, plant and equipment is stated at cost less accumulated
depreciation and any impairment in value. Depreciation is provided on
a straight line basis on all property, plant and equipment. All classes are
depreciated over periods ranging from 3 to 15 years (comparable to prior
periods). The assets’ residual values, useful lives and amortisation methods
are reviewed, and adjusted if appropriate, at each financial year end.
Impairment
The carrying values of property, plant and equipment are reviewed
for impairment at each reporting date, with the recoverable amount
being estimated when events or changes in circumstances indicate the
carrying value may be impaired.
For an asset that does not generate largely independent cash inflows,
the recoverable amount is determined for the cash-generating unit to
which the asset belongs. An impairment exists when the carrying value
exceeds its estimated recoverable amount. The asset or cash-generating
unit is then written down to its recoverable amount.
The recoverable amount of plant and equipment is the greater of fair
value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset. Impairment
losses are recognised in the statement of comprehensive income in the
year the loss is recognised.
Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal
or when no further future economic benefits are expected from its
use or disposal. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or loss in the year the
asset is derecognised.
The useful lives of intangible assets are assessed to be either finite
or indefinite. Intangible assets with finite lives are amortised over the
useful life and assessed for impairment whenever there is an indication
that the intangible asset may be impaired. The amortisation period and
the amortisation method for an intangible asset with a finite useful
life is reviewed at least at each financial year-end. Changes in the
expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset are accounted for by changing
the amortisation period or method, as appropriate, which is a change
in accounting estimate. The amortisation expense on intangible assets
with finite lives is recognised in profit or loss in the expense category
consistent with the function of the intangible asset.
Indefinite intangibles are assessed for impairment annually.
At 30 June 2017 all finite life intangibles are fully amortised.
J. IMPAIRMENT OF ASSETS
At each reporting date, the Company assesses whether there is any
indication that an asset may be impaired. Where an indicator of
impairment exists, the Company makes a formal estimate of recoverable
amount. Where the carrying amount of an asset exceeds its recoverable
amount the asset is considered impaired and is written down to its
recoverable amount.
Recoverable amount is the greater of fair value less costs to sell and
value in use. It is determined for a cash-generating unit (CGU). In
assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific
to the CGU.
K. CASH AND CASH EQUIVALENTS
Cash and cash equivalents on the statement of financial position
comprise cash at bank and on hand and short-term deposits with an
original maturity of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of
change in value.
For the purposes of the Cash Flow Statement, cash includes cash on
hand and in banks and short term deposits with an original maturity of
three months or less, net of outstanding bank overdrafts.
L. INVENTORIES
Inventories include spare parts and consumable items used in operations
and are valued at the lower of cost and net realisable value.
M. CONTRIBUTED EQUITY
Ordinary shares are classified as equity. Any transaction costs arising
on the issue of ordinary shares are recognised directly in equity as a
reduction of the share proceeds received.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 45
Notes to the Financial Statements continued...
N. TRADE AND OTHER PAYABLES
Trade payables and other payables are carried at cost and represent
liabilities for goods and services provided to the Company prior to the
end of the financial year that are unpaid and arise when the Company
becomes obliged to make future payments in respect of the purchase of
these goods and services.
O. PROVISIONS
Provisions are recognised when the Group has a present obligation
(legal or constructive) as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount
of the obligation.
If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of
money and, where appropriate, the risks specific to the liability. Where
discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.
P. EMPLOYEE BENEFITS
(i) Wages, salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and
annual leave expected to be settled within 12 months of the reporting
date are recognised in other payables in respect of employees’ services
up to the reporting date. They are measured at the amounts expected
to be paid when the liabilities are settled. Liabilities for sick leave are
recognised when the leave is taken and are measured at the rates paid
or payable.
(ii) Long service leave
The liability for long service leave is recognised in the provision for
employee benefits and measured as the present value of expected
future payments to be made in respect of services provided by
employees up to the reporting date using the projected unit credit
method. Consideration is given to expected future wage and salary
levels, experience of employee departures, and periods of service.
Expected future payments are discounted using market yields at the
reporting date on national government bonds with terms to maturity
and currencies that match, as closely as possible, the estimated future
cash outflows.
Q. SHARE-BASED PAYMENT TRANSACTIONS
The Group provides benefits to employees (including executive directors)
in the form of share-based payment transactions, whereby employees
render services in exchange for rights over shares (‘equity-settled
transactions’). Employees (including senior executive) of the Group
receive remuneration in the form of share based payments, whereby
employees render services as consideration of equity instruments
(‘equity-settled transactions’).
The cost of equity-settled transactions is determined by the fair value at
the date when the grant is made using an appropriate valuation model.
That cost is recognised, together with a corresponding increase in other
capital reserves in equity, over the period in which the performance and/
or service conditions are fulfilled in employee benefits expense. The
cumulative expense recognised for equity-settled transactions at each
reporting date until the vesting date reflects the extent to which the
vesting period has expired and the Group’s best estimate of the number
of equity instruments that will ultimately vest.
The statement of profit or loss expense or credit for a period represents
the movement in cumulative expense recognised as at the beginning
and end of that period and is recognised in employee benefits expense.
No expense is recognised for awards that do not ultimately vest, except
for equity-settled transactions for which vesting is conditional upon a
market or non-vesting condition. These are treated as vesting irrespective
of whether or not the market or non-vesting condition is satisfied, provided
that all other performance and/or service conditions are satisfied.
When the terms of an equity-settled award are modified, the minimum
expense recognised is the grant date fair value of the unmodified
award provided the original terms of the award are met. An additional
expense is recognised for any modification that increases the total fair
value of the share-based payment transaction, or is otherwise beneficial to
the employee as measured at the date of modification. When the award is
cancelled by the entity or by the counterparty any remaining element of the
fair value of the award is expensed immediately through the profit and loss.
46 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report R. REVENUE RECOGNITION
U. INCOME TAX
Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Group and the revenue can be reliably
measured, regardless of when the payment is received. Revenue is
measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and
excluding taxes or duty. The specific recognition criteria described below
must also be met before revenue is recognised.
Interest income
Interest income is recorded as the interest accrues, using the effective
interest rate (EIR). The EIR is the rate that exactly discounts the
estimated future cash receipts over the expected life of the financial
instrument or a shorter period, where appropriate, to the net carrying
amount of the financial asset.
Site Income
Site income relates to electricity sales and renewable energy credits
from the government. Revenue from the sale of electricity is recognised
on delivery of the product. Renewable energy credits income is
recognised when earned.
Project Income
Project Income relate to income earned for the construction and delivery
of biogas energy systems to customers. Revenue is recognised by
reference to the stage of completion of a contract or contracts in progress
at reporting date or at the time of completion of the contract and billing
to the customer. Stage of completion is measured by reference to project
costs incurred to date as a percentage of total estimated costs for each
contract which is determined by a set quotation with the customer.
S. GOVERNMENT GRANTS
Government Grants (including R&D tax incentives) are recognised at their
fair value where there is reasonable assurance that the grant will be
received and all attaching conditions will be complied with. Government
grants relating to rehabilitation costs are recorded as an offset against
expenditure. To the extent the government grant is greater than the
associated expenditure the residual amount is recorded as other income.
When the grant relates to an expense item, it is recognised as income
over the periods necessary to match the grant on a systematic basis
to the costs that it is intended to compensate. Where the grant relates
to an asset or liability, the fair value is credited to a deferred income
account until such time as all conditions associated with the grant
are met. Once these conditions are achieved the credit is allocated
to the relevant asset or liability. The amount of the grant is then
released to net income over the expected useful life (by way of reduced
depreciation or amortisation) of the relevant asset.
T. EARNINGS PER SHARE
Basic earnings per share is determined by dividing the profit/(loss) after
tax by the weighted average number of ordinary shares outstanding
during the financial period. Diluted earnings per share is determined by
dividing the profit/(loss) after tax adjusted for the effect of earnings on
potential ordinary shares, by the weighted average number of ordinary
shares (both issued and potentially dilutive) outstanding during the
financial period.
Current income tax
Current income tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation authorities. The
tax rates and tax laws used to compute the amount are those that are
enacted or substantively enacted at the reporting date in the countries
where the Group operates and generates taxable income.
Current income tax relating to items recognised directly in equity
is recognised in equity and not in the statement of profit or loss.
Management periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax regulations are subject
to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary
differences between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary
differences, except:
• When the deferred tax liability arises from the initial recognition of
goodwill or an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and or
• In respect of taxable temporary differences associated with
investments in subsidiaries, associates and interests in joint
arrangements, when the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary
differences, the carry forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognised to the extent that it
is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax
credits and unused tax losses can be utilised, except:
• When the deferred tax asset relating to the deductible temporary
difference arises from the initial recognition of an asset or liability
in a transaction that is not a business combination and, at the time
of the transaction, affects neither the accounting profit nor taxable
profit or loss; and
• In respect of deductible temporary differences associated with
investments in subsidiaries, associates and interests in joint
arrangements, deferred tax assets are recognised only to the extent
that it is probable that the temporary differences will reverse in the
foreseeable future and taxable profit will be available against which
the temporary differences can be utilised.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 47
Notes to the Financial Statements continued...
The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilised. Unrecognised deferred tax assets are
re-assessed at each reporting date and are recognised to the extent
that it has become probable that future taxable profits will allow the
deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the year when the asset is realised or the liability
is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is
recognised outside profit or loss. Deferred tax items are recognised in
correlation to the underlying transaction either in other comprehensive
income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally
enforceable right exists to set off current tax assets against current tax
liabilities and the deferred taxes relate to the same taxable entity and
the same taxation authority.
Tax benefits acquired as part of a business combination, but not
satisfying the criteria for separate recognition at that date, are
recognised subsequently if new information about facts and
circumstances change. The adjustment is either treated as a reduction
in goodwill (as long as it does not exceed goodwill) if it was incurred
during the measurement period or recognised in profit or loss.
V. OTHER TAXES
Revenues, expenses and assets are recognised net of the amount
of GST except:
• where the GST incurred on a purchase of goods and services is not
recoverable from the taxation authority, in which case the GST is
recognised as part of the cost of acquisition of the asset or as part of
the expense item as applicable; and
• receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation
authority is included as part of receivables or payables in the statement
of financial position. Cash flows are included in the Cash Flow
Statement on a net basis and the GST component arising from investing
and financing activities, which is recoverable from, or payable to, the
taxation authority are classified as operating cash flows. Commitments
and contingencies are disclosed net of the amount of GST recoverable
from, or payable to, the taxation authority.
W. SEGMENT REPORTING
A business segment is a distinguishable component of the entity that
is engaged in providing products or services that are subject to risks
and returns that are different to those of other business segments.
Operating segments are identified on the basis of internal reports that
are regularly reviewed and used by the Board of Directors in order to
allocate resources to the segment and assess its performance.
X. JOINT ARRANGEMENTS
In prior years the Company was a party to a joint operation with Kentor
Energy Pty Ltd (Kentor). The joint operation assets comprised the Savo
Island prospecting license and all property plant and equipment for
use on Savo Island. The joint operation was named the Savo Island
Geothermal Joint Venture.
As at 30 June 2017 the Savo Island Geothermal Joint Venture has
been dissolved.
In prior years the Company was also a party to two joint operations
named the Innamincka ‘Deeps’ Joint Venture and the Innamincka
‘Shallows’ Joint Venture. Although named ‘Joint Venture’ the
arrangements are accounted for as Joint Operations. The joint operations
with Origin Energy Limited were formed to explore and evaluate
enhanced geothermal systems in the Cooper/Eromanga basin in South
Australia. Under the Joint Venture agreement, Origin Energy remain liable
for their share of rehabilitation expenditure until rehabilitation has been
completed to the satisfaction of the South Australian Government.
Y. PARENT ENTITY FINANCIAL INFORMATION
The financial information for the parent entity, ReNu Energy, included
in Note 25, has been prepared on the same basis as the consolidated
financial statements.
Z. COMPARATIVE FIGURES
When required by Accounting Standards, comparative figures are
adjusted to conform to changes in presentation for the current financial
year. Certain comparative financial information presented in the
Statement of Comprehensive Income, and Statement of Cash Flows have
been reclassified in this financial report to improve the presentation of
information. The reclassification results in no net change to loss or cash
flows for the comparative period.
48 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Note 3a – Other Income
Origin recovery (share of rehabilitation costs)
R&D tax incentive received (bioenergy) *
Other
FY17
$’000
-
311
9
320
FY16
$’000
3,214
-
10
3,224
* Total R&D incentive received or receivable at 30 June 2017 is $3,896,000 (2016: $4,949,000) in relation to rehabilitation costs and $311,000 (2016: nil) in relation to bioenergy
costs. R&D incentive in respect of rehabilitation costs is recognised as a contra to the rehabilitation expenditure in the profit and loss to the extent it reduces the expense to nil.
To the extent the R&D incentive exceeds the rehabilitation costs, the residual amount is classified as other income. For the year ended 30 June 2017 no R&D incentive in respect of
rehabilitation costs is included in other income (2016: $3,713,000).
Note 3b – Personnel Expenses
Loss before income tax has been determined after charging/(crediting) the following specific items:
Share based Payments
Short Term Incentives
Employee Expenses
Note 3c – Other Expenses and Losses/(Gains)
General and administrative expenses have been determined after charging/(crediting)
the following specific items:
Depreciation of office equipment
Interest expense
Gain/(Loss) on disposal of plant & equipment
Inventory write-downs
Operating lease rentals paid
Foreign exchange loss/(gain)
Note 3d – Other Operating Expenses
Loss before income tax has been determined after charging/(crediting) the following specific items:
Amortisation of Intangibles
Depreciation of plant and equipment
Project Rectification Costs
Other Project Costs
FY17
$’000
48
107
2,411
2,566
FY17
$’000
6
5
47
161
127
1
FY17
$’000
-
96
286
260
642
FY16
$’000
(132)
-
3,323
3,191
FY16
$’000
17
4
88
34
151
5
FY16
$’000
1,000
462
2,194
988
4,644
RENU ENERGY LIMITED | ANNUAL REPORT 2017 49
Notes to the Financial Statements continued...
Note 4 – Income Tax
Income tax expense
FY17
$’000
FY16
$’000
The prima facie tax benefit on loss of 27.5% (2016 - 30%) differs from the income tax provided in the
financial statements as follows:
Prima facie tax benefit on loss
1,844
3,253
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
R&D Tax Incentive Receivable
Change in R&D Incentive for the prior year *
Impairment of Goodwill
Other income/(expenses)
Income tax benefit/(expense)
Deferred tax assets for tax losses and other temporary differences utilised
Deferred tax assets for tax losses and other temporary differences not recognised
Income tax benefit attributable to operating loss
* Change on R&D incentive represents amounts received in excess of carrying receivable balances
DEFERRED INCOME TAX
Deferred income tax at 30 June relates to the following:
Deferred tax liabilities
Other deferred tax liability
Deferred tax assets
Losses available for offset against future taxable income
Company2
Subsidiary3
Other deferred tax asset
Net deferred tax assets
Deferred tax asset for tax losses not recognised1
Gross deferred income tax assets
Deferred tax income/(expense)
STATEMENT OF
FINANCIAL POSITION
FY17
$’000
FY16
$’000
(24)
(70)
75,475
3,257
468
79,176
(79,176)
-
-
73,744
1,631
566
75,871
(75,871)
-
-
(213)
(320)
(275)
(16)
1,020
-
(1,020)
-
(3,471)
(1,478)
(929)
38
(2,587)
2,869
-
282
STATEMENT OF
COMPREHENSIVE INCOME
FY17
$’000
FY16
$’000
-
-
-
-
-
-
-
-
1
2
3
Deferred tax assets arising from tax losses and temporary differences are only brought to account to the extent that it offsets the Group’s deferred tax liabilities arising from
temporary differences. As the Group does not have a history of taxable profits and is not revenue generating, the deferred tax assets associated with tax losses and temporary
differences, in excess of the Group’s deferred tax liabilities arising from temporary differences, is not yet regarded as probable of recovery at 30 June 2017.
The Company’s tax losses for the 2016 financial year (reported above) have been adjusted to reflect the income tax return lodged during the 2017 financial year.
The subsidiary tax losses were acquired as part of the acquisition of KUTh Energy Limited and Quantum Power Limited. No fair value was allocated to the tax losses as part of the
business combination accounting as the tax losses are not considered probable of recovery. Given the change in ownership of KUTh Energy Limited and Quantum Power Limited
and their controlled entities, the recovery of the tax losses is likely to be subject to the same business test.
50 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Note 5 – Inventories (Current)
Gensets
Spares
FY17
$’000
-
30
30
Reduction in inventory is due to capitalisation of engines held in inventory to Property, Plant and Equipment during the period.
Note 6 – Receivables (Current)
GST Receivable
Interest Receivable
R&D Tax Incentive Receivable
Other Receivables
FY17
$’000
97
47
420
582
1,146
FY16
$’000
1,123
106
1,229
FY16
$’000
375
47
3,471
1,155
5,048
Accounts receivable, GST receivable, interest receivable and sundry receivables are non-interest bearing.
ALLOWANCE FOR IMPAIRMENT LOSS.
No allowance has been made for impairment loss and there are no past due nor impaired amounts. A provision for impairment loss is only recognised
when there is objective evidence that an individual receivable is impaired. None of the balances within receivables contain impaired assets.
Note 7 – Property, Plant & Equipment
Plant and Equipment at cost
Less: accumulated depreciation and impairment
Total Property, Plant and Equipment
Reconciliation of Plant & Equipment
Carrying amount at beginning
Additions 1
Acquisitions 2
Disposals
Reclassification to Assets Held for Sale
Depreciation/Amortisation Expense
Depreciation written back on disposal of assets
Carrying amount at the end
1 Additions relate to construction of solar PV and bioenergy projects and an upgrade to the operating bioenergy project.
2 These assets were acquired as part of the purchase of Quantum Power during the prior year.
FY17
$’000
25,948
(23,127)
2,821
28
2,895
-
-
-
(102)
-
2,821
FY16
$’000
23,053
(23,025)
28
1,364
7
483
(342)
(1,082)
(489)
87
28
RENU ENERGY LIMITED | ANNUAL REPORT 2017 51
Notes to the Financial Statements continued...
Note 8 – Intangibles
Intangibles (including goodwill) at cost
Less: accumulated amortisation and impairment
Total Intangibles
Reconciliation of Intangibles (including goodwill)
Carrying amount at beginning
Acquisitions – Customer Contracts
Acquisitions – Goodwill
Impairment
Amortisation of Customer Contracts
Carrying amount of goodwill at 30 June
FY17
$’000
5,096
(5,096)
-
1,000
-
-
(1,000)
-
FY16
$’000
5,096
(4,096)
1,000
-
1,000
4,096
(3,096)
(1,000)
1,000
The carrying amount of intangibles reflects goodwill within the Biogas segment. The goodwill relates to Quantum Power Business acquisition in the FY16 period.
The Group considers the relationship between its capitalisation and its book value, among other factors, when reviewing for indicators of impairment. As at
30 June 2017, the market capitalisation of the group was below the book value of its equity, indicating a potential impairment of goodwill and impairment
of the assets of the operating segment. In addition, the delays in conversion and execution of Biogas Energy projects has resulted in impairment indicators.
Consistent with prior periods, the fair value less cost of disposal (“FVLCD”) method has been used to assess the recoverable amounts of the Biogas
Energy CGU’s. FVLCD has been used to measure the recoverable amount because generating cash flows requires significant expansionary capital to
generate sustainable revenue and profit.
The Group has measured FVLCD using a discounted cash flow model which assumes the Biogas Energy CGUs develops a portfolio of Build, Own, Operate and
Maintain (“BOOM”) projects in the future. The forecast cash flows are discounted using a post-tax, equity rate of return of 12.5% for active projects and 15%
for prospective projects (30 June 2016: 20%). The recoverable amount is classified as a level 3 fair value measurement under the fair value hierarchy.
The forecast cash flows include a number of judgmental assumptions including:
• Capital cost of the BOOM facilities;
• Availability of debt and/or equity finance to fund the expansionary capital;
• Power Purchase Agreement revenues;
• Timing and number of BOOM projects identified and executed by the Group;
• Cash flows for the term of the projects; and
• Discount rate.
The results of the impairment testing indicated that the carrying value of each of the Biogas Energy CGUs’ property, plant and equipment is
supportable. However the carrying value of the goodwill at 30 June 2017 is not supportable, resulting in the recognition of an impairment charge of
$1,000,000 against the full goodwill balance.
The calculated FVLCD is highly sensitive to the above assumptions and any movement may result in a further impairment to the property, plant and
equipment held by the Biogas Energy CGUs. To illustrate the level of this sensitivity, any change in the discount rate utilised on the active projects
results in an impairment of the property, plant and equipment of the CGUs.
Note 9 – Accounts Payable
Current
Trade Creditors
Accrued Liabilities
Trade creditors and accruals
TERMS AND CONDITIONS
FY17
$’000
502
1,250
1,752
FY16
$’000
2,285
731
3,016
Accounts payable and accrued liabilities are non-interest bearing. Liabilities are recognised for amounts to be paid in the future for goods and services
received, whether or not billed to the Company. All amounts are normally settled within 30 days, and discounts for early payment are normally taken
where it is considered advantageous for the Company to do so. Due to the short term nature of these payables, their carrying value is assumed to
approximate their fair value.
52 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Note 10 – Provisions
At 1 July 2016
Arising during the year
Utilised
At 30 June 2017
Current 2017
Non current 2017
Current 2016
Non current 2016
At 30 June 2016
EMPLOYEE
ENTITLEMENTS
$’000
REHABILITATION
PROVISION
$’000
RECTIFICATION
PROVISION
$’000
OTHER
PROVISIONS
$’000
TOTAL
PROVISIONS
$’000
262
207
(277)
192
123
69
192
171
91
262
770
732
(377)
1,125
925
200
1,125
570
200
770
655
286
(827)
114
114
-
114
655
-
655
120
-
(120)
-
-
-
-
120
-
120
1,807
1,225
(1,601)
1,431
1,162
269
1,431
1,516
291
1,807
The rehabilitation provision relates to the remaining rehabilitation of the Cooper Basin site including the wells and surface rehabilitation.
The rectification provision relates to the remaining rectification of the Quantum Power projects.
Bank guarantees totalling $240,000 are held to cover South Australian and Tasmanian government’s tenement rehabilitation obligations.
The components of the provision for employee entitlements is detailed in note 15.
The rehabilitation provision as at 30 June 2017 is net of recoveries from Origin but not net of future R&D tax incentive receipts.
The Group plans to complete the abandonment of Habanero 4 during FY18 and will continue to monitor Habanero 3.
Note 11 – Financial Instruments
The Group’s principal financial instruments comprise of cash and cash equivalents, receivables and payables.
All financial assets are recognised initially at fair value plus transaction costs, and financial liabilities are recognised initially at fair value.
Subsequent measurement of financial assets and liabilities depends on their classification, summarised in the table below.
Financial Assets
Cash and Cash Equivalents
Receivables
Financial Liabilities
Payables
FY17
$’000
FY16
$’000
AMORTISED COST
AMORTISED COST
10,890
1,146
12,036
1,752
1,752
14,406
5,049
19,455
3,016
3,016
Financial assets and liabilities carried at amortised cost are measured by taking into account any discount or premium on acquisition, and fees or
costs associated with the asset or liability. Due to the short-term nature of these assets and liabilities, their carrying value is assumed to approximate
their fair value.
AASB7 Financial Instruments: Disclosures requires disclosures of fair value measurements by level of the following fair value measurement hierarchy:
Level 1 – the fair value if calculated using quoted market prices in active markets.
Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices).
Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 53
Notes to the Financial Statements continued...
Note 12 – Issued Capital
Authorised Shares
FY17
$’000
FY16
$’000
717,074,558 (2016 – 563,368,990) fully paid ordinary shares
353,129
351,908
MOVEMENT IN ORDINARY SHARE CAPITAL:
30/06/16
Balance end of financial year
20/03/17
Shares issued pursuant to share placement
26/04/17
Shares issued pursuant to rights issue
Share issue costs
30/06/17
Balance end of financial year
TERMS AND CONDITIONS OF CONTRIBUTED EQUITY
NUMBER
OF SHARES
ISSUE PRICE
$ PER SHARE
563,368,993
84,505,348
69,200,220
717,074,558
0.0095
0.0090
$’000
351,908
803
623
(205)
353,129
Ordinary Shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company. Effective 1 July 1998, the Corporations
legislation abolished the concepts of authorised capital and par value shares. Accordingly the Company does not have authorised capital nor par value
in respect of its issued capital.
CAPITAL MANAGEMENT
When managing capital, management’s objective is to ensure the entity continues as a going concern and to maintain a structure that ensures the
lowest cost of capital available to the entity. As the entity is not in position to be debt funded until it advances its projects to a completed feasibility
phase which has the support of financiers, it must rely totally on shareholders and government grants for its funding requirements.
UNISSUED SHARES – SHAREHOLDER OPTIONS
At 30 June 2017, there were no unissued ordinary shares under shareholder options (2016 – Nil). Option holders do not have any right, by virtue of the
option, to participate in any share issue of the Company or any related body corporate. There were no shareholder options granted during the financial
year ended 30 June 2017 (2016 – Nil).
Note 13 – Reserves
Share Based Payment Reserve
Foreign Currency Translation Reserve
Reconciliation of Reserves
Carrying amount at beginning
Recognition of SARs Expense
Recognition of Foreign Currency Translation Reserve
Transfer of Reserves to Retained Earnings
NATURE AND PURPOSE OF RESERVES
FY17
$’000
48
12
60
8
48
4
-
60
FY16
$’000
-
8
8
11,235
(132)
3
(11,098)
8
Share Based Payment Reserve
The employee share based payment reserve is used to record the value of share appreciation rights granted to employees, including key management
personnel, as part of their remuneration. Refer to Note 15 for further details.
Foreign currency translation reserve
This reserve records the differences arising as a result of translating the financial statements of subsidiaries recorded in foreign currencies to the
presentational currency.
54 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Note 14 – Expenditure Commitments
ENGINEERED GEOTHERMAL SYSTEMS (EGS) TENEMENT COMMITMENTS
In order to maintain current rights of its EGS tenements, the Company is required to outlay annual rentals and to meet certain expenditure
requirements of the department of State Development, South Australia. These obligations are subject to renegotiation upon expiry of the tenements.
The obligations are not provided for in the financial report and are payable as follows:
Payable not later than one year
OPERATING LEASES (NON-CANCELLABLE)
Payable not later than one year
Other Commitments (Open Purchase Orders)
Capital
Note 15 - Employee Benefits and Superannuation Commitments
Employee Benefits
The aggregate employee benefit liability is comprised of:
Provision for Annual Leave (current)
Provision for Long Service Leave (non-current)
FY17
$’000
50
42
2,757
FY17
$’000
122
69
191
FY16
$’000
127
48
-
FY16
$’000
171
91
262
SUPERANNUATION COMMITMENTS
The Company contributes to external accumulation funds for its employees which provide benefits for employees and their dependants on retirement,
disability or death. These funds provide benefits on a defined contribution basis. Contributions are enforceable to the extent of the contribution
required by the Superannuation Guarantee Levy.
Employer contributions paid or payable to the plans
226
311
SHARE APPRECIATION RIGHTS (SARS) PLAN
The ReNu Energy Share Appreciation Rights (SARs) Plan was approved by the Board in October 2013.
A Share Appreciation Right is a right to receive shares in the Company or an equivalent cash payment based on the increase in the ReNu Energy share
price over a specified period, subject to satisfying certain conditions (including a performance condition).
The objective of the ReNu Energy SARs is to:
• Align the interests of eligible employees with those of shareholders;
• Provide incentives to attract, retain and/or motivate eligible employees in the interests of the company; and
• Provide eligible employees with the opportunity to acquire Share Appreciation Rights, and ultimately Shares, in accordance with the plan rules.
The Board may, at its discretion, grant to an eligible employee or may invite an eligible employee to apply for a grant of SARs. The vesting of SARs is
subject to conditions determined at the time of each issue.
At the Annual General Meeting on 25 November 2016, the shareholders approved the Company to grant Mr Murray a total of 20 million Share
Appreciation Rights with a fair value of $80,500 at the grant date. Performance conditions for the vesting of the SARs at the testing dates are based
on growth in the ReNu Energy share price.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 55
Notes to the Financial Statements continued...
Note 16 - Earnings Per Share
Basic and diluted earnings/(loss) per share attributable to the equity holders (cents per share)
The following reflects the income and share data used in the calculations of basic
and diluted earnings per share:
FY17
$’000
(1.12)
FY16
$’000
(1.98)
Net loss attributable to equity shareholders ($’000)
(6,707)
(10,559)
Weighted average number of ordinary shares used in calculation of basic earnings per share
599,307,510
534,606,783
Note 17 - Segment Information
The Company operates in three segments, being geothermal energy exploration and evaluation, biogas energy and solar energy.
Operating segments are identified on the basis of internal reports that are regularly reviewed and used by the Managing Director and Board of
Directors (chief operating decision makers) in order to allocate resources to the segment and assess its performance. The financial information
presented in the Statements of Comprehensive Income and Financial Position is the same as that presented to the chief operating decision maker.
Unless otherwise stated, all amounts reported to the Managing Director and Board of Directors as the chief operating decision makers are in
accordance with the entity’s accounting policies.
For the year ended 30 June 2016 ReNu Energy operated in two segments. With the business expansion into solar energy the company now has 3
operating segments identified on the basis of internal reports that are regularly reviewed and used by the Board of Directors and key operating
decision makers for the purpose of making decisions about resource allocation and performance assessment.
No operating segments have been aggregated to form the reportable segments below.
Inter-segment revenues are eliminated upon consolidation and reflected in the ‘adjustments and eliminations’ column.
SEGMENT INFORMATION
The following table represents revenue and profit information for the Group’s operating segments for the year ended 30 June 2017.
YEAR ENDED
30 JUNE 2017
Results
Revenue
Expense
Segment
Profit/(Loss)
Assets
Liabilities
GEOTHERMAL
$’000
BIOGAS ENERGY
$’000
SOLAR ENERGY
$’000
CORPORATE
OVERHEADS
$’000
ADJUSTMENTS
AND
ELIMINATIONS
$’000
CONSOLIDATED
$’000
-
(418)
(418)
259
1,545
576
(3,161)
(2,585)
3,368
1,692
-
(106)
(106)
40
18
-
(3,598)
(3,598)
11,883
591
-
-
-
(663)
(663)
576
(7,283)
(6,707)
14,887
3,183
56 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report
YEAR ENDED
30 JUNE 2016
GEOTHERMAL
$’000
BIOGAS ENERGY
$’000
SOLAR ENERGY
$’000
CORPORATE
OVERHEADS
$’000
ADJUSTMENTS
AND
ELIMINATIONS
$’000
CONSOLIDATED
$’000
Results
Revenue
Expense
Segment Profit/
(Loss)
Assets
Liabilities
-
1,372
1,372
5,115
2,919
391
(10,220)
(9,829)
8,169
7,160
-
-
-
-
-
-
(2,105)
(2,105)
14,517
629
Note 18 – Remuneration of Auditors
Amounts received or due and receivable by Ernst & Young Australia for:
An audit or review of the financial report of the entity
Other assurance services
Note 19 – Key Management Personnel
COMPENSATION OF KEY MANAGEMENT PERSONNEL
Short-term employee benefits
Post-employment benefits
Share based payment
-
-
(5,885)
(5,885)
FY17
$
126,205
20,632
146,837
FY17
$
918,429
79,515
47,842
391
(10,953)
(10,562)
21,916
4,823
FY16
$
131,450
4,600
136,050
FY16
$
1,102,069
93,892
-
Further information on remuneration of Key Management Personnel is shown in the Remuneration Report contained within the Directors’ Report.
1,045,786
1,195,961
Note 20 – Related Party Disclosures
TRANSACTIONS WITH ASSOCIATES
Quantum RCM
As part of the Quantum Power Limited business acquisition in the prior year the Group acquired a 50% interest in Quantum RCM (a 50/50 incorporated joint
venture). At 30 June 2017 Quantum RCM has been fully consolidated as part of the Group as the agreement with RCM Digesters has been terminated.
TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
FinClear
The Group has engaged FinClear Execution Limited to provide services in relation to corporate finance advisory services. The key resource from
FinClear is S. McLean (Non-executive Chairman). The mandate is for a period of four months commencing 1 May 2017 at $25,000 per month.
At 30 June 2017 three payments totalling $75,000 remained to be made.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 57
Notes to the Financial Statements continued...
Note 21 - Notes to the Cash Flow Statement
A. Reconciliation of Cash
Cash is defined in Note 2K to this financial report. Cash balance comprises:
Cash at Bank
Cash and Cash Equivalents 1
Total Cash
B. Reconciliation of the operating loss after tax with the net cash flows used in operations
Loss after income tax
Depreciation and amortisation
Net (profit)/loss on disposal of property, plant & equipment
SARs issued
Exploration and Evaluation Cost treated as an investing activity
Impairment of Goodwill
Impairment of Assets Held for Sale
Share of Loss in Associate
Changes in Assets & Liabilities
(Increase)/decrease in receivables and prepayments
Increase/(decrease) in other creditors and accruals
(Increase)/decrease in inventories
Increase/(decrease) in general provisions
Net Cash Flow used in Operating Activities
FY17
$’000
1,523
9,367
10,890
FY16
$’000
600
13,806
14,406
(6,707)
(10,562)
102
(1)
48
1,332
1,000
-
-
83
(260)
188
(376)
(4,591)
1,479
88
(132)
7,921
3,096
1,594
266
(2,674)
2,400
(278)
(6,007)
(2,809)
1
The Group has pledged $288k of its short term deposits to fulfil bank guarantee requirements. This amount has been excluded from the calculation of cash and cash equivalent
balance at 30 June 2017 shown on the balance sheet and statement of cash flows.
Note 22 – Contingent Liabilities
ReNu Energy Limited has been advised that the South Australian Geothermal Exploration Licences and Geothermal Retention Licences have been
granted by the Department of Primary Industries and Resources South Australia on the basis that the grant of a GEL or GRL is not an act which creates
a ‘right to mine’ and therefore ‘the right to negotiate’ process in the relevant native title legislation does not apply and the grant of the GELs and GRLs
are valid for native title purposes. The Company’s legal advice is that this is a sustainable position although it would be open to a Court to reach a
different conclusion. Any substantiated claim may have a financial ramification for the Company.
The Company has also been advised that none of the New South Wales tenements are invalid for native title purposes or attract the relevant right to
negotiate provisions in the applicable native title legislation.
Bank guarantees totalling $240,000 are held to cover South Australian and New South Wales governments’ tenement rehabilitation obligations. A
bank guarantee totalling $37,597 is held by the landlord for the lease of the Brisbane office premises. A bank guarantee totalling $10,000 is held by
Shopping Centres Australasia Property Group RE Limited for the lease of rooftop solar installation areas.
Note 23 – Subsequent Events
There has not arisen between 30 June 2017 and the date of this report any other item, transaction or event of a relevant and unusual nature likely,
in the opinion of the Directors of the Company, to affect significantly the operations of the Company, the results of those operations, or the state of
affairs of the Company.
58 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report Note 24 – Financial Risk Management Objectives and Policies
The Company’s principal financial instruments comprise cash and short-term deposits. The main purpose of these financial instruments is to manage
the finances for the Company’s operations. The Company has various other financial assets and liabilities such as trade receivables and trade
payables, which arise directly from its operations. It is, and has been throughout the period under review, the Company’s policy that no trading in
financial instruments shall be undertaken. The main risks arising from the Company’s financial instruments are credit risk and liquidity risk.
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on
which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 2
to the financial statements.
Primary responsibility for identification and control of financial risks rests with the board of directors, however the day-to-day management of
these risks is under the control of the Managing Director and Chief Financial Officer. The Board agrees the strategy for managing future cash flow
requirements and projections.
(A) CREDIT RISK
The Company’s maximum exposures to credit risk at balance date in relation to financial assets, is the carrying amount of those assets as recognised on
the statement of financial position. There are no derivative financial instruments currently being used by the Company to offset its credit exposure.
The Company trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the Company’s policy to
securitise its trade and other receivables.
(B) LIQUIDITY RISK
The Company’s objective is to maintain sufficient funds to finance its current operations with additional funds to ensure its long-term survival in the
event of a business downturn. The Company’s policy is that it is dependent on shareholder funds until such time as it commences generating revenue
from operations. It has no finance facilities in place and no borrowings. The contractual maturity of the Company’s financial liabilities are:
6 months or less
Note 25 – Information Relating to ReNu Energy Limited (The Parent)
Current Assets
Total Assets
Current Liabilities
Total Liabilities
Contributed Equity
Accumulated Losses
Other Reserves
Profit or loss of the Parent entity
Total comprehensive income of the Parent entity
FY17
$’000
1,752
FY17
$’000
13,811
14,710
2,717
3,006
353,129
(341,485)
60
11,704
(6,708)
(6,708)
FY16
$’000
3,016
FY16
$’000
20,765
20,781
3,351
3,642
351,908
(334,777)
8
17,139
(11,214)
(11,214)
SM Project Company Pty Ltd is the Recipient to the Advancing Renewables Programme Funding Agreement number G00892 with the Australian
Renewable Energy Agency (ARENA), whereby ARENA is contributing funding to the Goulburn Bioenergy Project. ReNu Energy Limited is Guarantor
under the Funding Agreement, guaranteeing the due and punctual payment of funds and any other money which the Recipient (whether alone or not)
is or at any time may become actually or contingently liable to pay to or for the account of ARENA (whether alone or not) for any reason whatever
under or in connection with the Funding Agreement.
The Parent has no contingent liabilities nor any contractual obligations on behalf of its subsidiaries at 30 June 2017.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 59
Directors’ Declaration
In accordance with a resolution of the Directors of ReNu Energy Limited, I state that:
1. In the opinion of the Directors:
The financial statements, notes and additional disclosures included in the Directors’ Report designated as audited of the Company are in
accordance with the Corporations Act 2001, including:
(a)
giving a true and fair view of the Company’s financial position as at 30 June 2017 and of their performance for the period ended on that date;
(b) complying with Accounting Standards and Corporations Regulations 2001;
(c)
the financial statements and notes also comply with International Financial Reporting Standards as disclosed in note 2; and
(d)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
2. This declaration has been made after receiving the declarations required to be made to the directors in accordance with section 295A of the
Corporations Act 2001 for the financial period ended 30 June 2017.
On behalf of the Board.
S. MCLEAN
Chairman
Brisbane 31 August 2017
60 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Independent Auditor’s Report
to the Members of ReNu Energy Limited
Report on the Audit of the Financial Report
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
report of the current year. This matter was addressed in the
context of our audit of the financial report as a whole, and in
forming our opinion thereon, but we do not provide a separate
opinion on this matter. For the matter below, our description of
how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s
Responsibilities for the Audit of the Financial Report section of
our report, including in relation to these matters. Accordingly,
our audit included the performance of procedures designed
to respond to our assessment of the risks of material
misstatement of the financial statements. The results of
our audit procedures, including the procedures performed
to address the matter below, provide the basis for our audit
opinion on the accompanying financial report.
OPINION
We have audited the financial report of ReNu Energy Limited
(the Company) and its subsidiaries (collectively the Group),
which comprises the consolidated statement of financial
position as at 30 June 2017, the consolidated statement of
comprehensive income, the consolidated statement of changes
in equity and the consolidated statement of cash flows for the
year then ended, notes comprising a summary of significant
accounting policies and other explanatory information and the
Directors’ Declaration.
In our opinion, the accompanying financial report of the Group is
in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the consolidated financial
position of the Group as at 30 June 2017 and of its
consolidated financial performance for the year ended on
that date; and
(ii)
complying with Australian Accounting Standards and the
Corporations Regulations 2001.
BASIS FOR OPINION
We conducted our audit in accordance with Australian Auditing
Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of
the Financial Report section of our report. We are independent
of the Group in accordance with the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES110 Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the
financial report in Australia; and we have fulfilled our other
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
RENU ENERGY LIMITED | ANNUAL REPORT 2017 61
Independent Auditor’s Report
to the Members of ReNu Energy Limited continued...
Goodwill Impairment Assessment
WHY SIGNIFICANT
HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
We involved our valuation specialists to assess the discounted
cash flow impairment model and key assumptions used by the
Group, in particular the forecast cash flows and discount rate.
We evaluated the Group’s board approved cash flow forecasts
and the process by which they were developed, including
checking the mathematical accuracy of the underlying
calculations. We performed a sensitivity analysis using a
range of discount rates that reflect the risk of investing
in companies in an early stage of development and the
inherent subjectivity of forecasting future cash flows in a
start-up business.
We assessed the adequacy of the financial report disclosures
concerning those key assumptions to which the outcome of
the impairment test is most sensitive.
Related disclosures in the Financial Report are included
in Note 8.
As at 30 June 2017, the goodwill carrying value was $1m
before impairment charges (nil after impairment charges) and
represented approximately 20% of total assets excluding cash
($10.9m) which was the largest asset on ReNu’s consolidated
statement of financial position. The goodwill arose from the
Group’s acquisition of Quantum Power Limited in the 2016
financial year.
This is a key audit matter due to the size of the goodwill
balance, the complexity of the impairment assessment
process, and the subjective nature of estimates used in the
impairment calculations given this is a new cash generating
unit for the Group.
Fair value less costs of disposal (“FVLCD”) was used to
measure recoverable amount. The Group measured FVLCD
using a discounted cash flow model. The forecast cash flows
included a number of judgmental assumptions including
the capital cost of future projects, availability of future
funding, power purchase agreement revenues, timing and the
number of projects identified and executed by the Group, and
discount rates. The calculated FVLCD was sensitive to these
key assumptions.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
62 RENU ENERGY LIMITED | ANNUAL REPORT 2017
DIRECTORS’ RESPONSIBILITIES FOR THE FINANCIAL REPORT
The Directors of the Company are responsible for the
preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and
the Corporations Act 2001 and for such internal control as the
Directors determine is necessary to enable the preparation of
the financial report that gives a true and fair view and is free
from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible
for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Directors
either intend to liquidate the Group or cease operations, or have
no realistic alternative but to do so.
INFORMATION OTHER THAN THE FINANCIAL REPORT AND
AUDITOR’S REPORT
The Directors are responsible for the other information. The
other information comprises the information in the Company’s
Annual Report for the year ended 30 June 2017, but does not
include the financial report and the auditor’s report thereon. We
obtained the Directors’ Report and the Corporate Governance
Statement that are to be included in the Annual Report, prior
to the date of this auditor’s report, and we expect to obtain the
remaining sections of the Annual Report after the date of this
auditor’s report.
Our opinion on the financial report does not cover the other
information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our
responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the financial report or our knowledge obtained
in the audit or otherwise appears to be materially misstated.
If, based upon the work we have performed on the other
information obtained prior to the date of this auditor’s report,
we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have
nothing to report in this regard.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
RENU ENERGY LIMITED | ANNUAL REPORT 2017 63
Independent Auditor’s Report
to the Members of ReNu Energy Limited continued...
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE
FINANCIAL REPORT
Our objectives are to obtain reasonable assurance about
whether the financial report as a whole is free from material
mistatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.
As part of an audit in accordance with Australian Auditing
Standards, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the financial report, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal
control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of
the going concern basis of accounting in the preparation of
the financial report. We also conclude, based on the audit
evidence obtained, whether a material uncertainty exists
related to events and conditions that may cast significant
doubt on the entity’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are
required to draw attention in the auditor’s report to the
disclosures in the financial report about the material
uncertainty or, if such disclosures are inadequate, to modify
the opinion on the financial report. However, future events
or conditions may cause an entity to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of
the financial report, including the disclosures, and whether
the consolidated financial statements represent the
underlying transactions and events in a manner that achieves
fair presentation.
We communicate with the Directors regarding, among other
matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide the Directors with a statement that we
have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
From the matters communicated to the Directors, we determine
those matters that were of most significance in the audit of
the financial report of the current year and are therefore the
key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our
report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits
of such communication.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
64 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Report on the Remuneration Report
OPINION ON THE REMUNERATION REPORT
We have audited the Remuneration Report included in pages 24 to 30 of the Directors’ Report for the year ended 30 June 2017.
In our opinion, the Remuneration Report of ReNu Energy Limited for the year ended 30 June 2017, complies with section 300A of the
Corporations Act 2001.
RESPONSIBILITIES
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with
section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our
audit conducted in accordance with Australian Auditing Standards.
ERNST & YOUNG
MIKE REID
Partner
Brisbane
31 August 2017
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
RENU ENERGY LIMITED | ANNUAL REPORT 2017 65
Shareholder Information
Distribution of Fully Paid Ordinary Shares
Analysis of number of equity security holders by size and holding as at 15 September 2017
RANGE
100,001 and Over
50,001 to 100,000
10,001 to 50,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
TOTAL
Unmarketable Parcels
Twenty Largest Holders - Ordinary Fully Paid Shares
1
2
3
4
5
6
7
8
9
Borneo Capital Pty Ltd
Tata Power International Pte Limited
Investor View Pty Ltd
Stockton Capital Management Pty Ltd
North Western Surveys Pty Ltd
Jasmiin Enterprises Pty Ltd
Mymoney Pty Ltd
Indevco Group Holdings Pty Limited
Ruminator Pty Limited
10 Hirlgrove Pty Ltd
11
Johan A Le Roux
12 Jetosea Pty Ltd
13 Anthony Australia Pty Ltd
14 Trinity Management Pty Ltd
15 J P Morgan Nominees Australia Limited
16 Bennanon Capital Pty Ltd
17
Taos Pty Ltd
18 Mr Mark Andrew Linney
19 Hirlgrove Pty Ltd
20 Invia Custodian Pty Limited
TOTAL
Substantial Shareholders
RANGE
NO. OF HOLDERS
584,605,294
41,334,812
64,685,277
14,073,562
11,102,775
1,272,838
717,074,558
62,183,181
32,944,943
29,400,000
21,340,000
19,819,824
18,910,486
18,480,000
18,180,000
15,660,001
13,289,203
11,615,468
10,376,311
9,935,266
9,000,000
8,373,155
8,299,697
6,846,418
5,051,460
5,000,000
4,914,966
4,736,996
740
575
2,816
1,890
4,005
2,231
12,257
10,195
4.59%
4.10%
2.98%
2.76%
2.64%
2.58%
2.54%
2.18%
1.85%
1.62%
1.45%
1.39%
1.26%
1.17%
1.16%
0.95%
0.70%
0.70%
0.69%
0.66%
272,174,194
37.96%
As at the 15 September 2017 ReNu Energy had no substantial shareholders in accordance with section 671B of the Corporations Act 2001.
66 RENU ENERGY LIMITED | ANNUAL REPORT 2017
Financial Report VOTING RIGHTS
NOTICE OF MEETING AND PROXY VOTING
The voting rights attaching to each class of equity securities are
set out below:
(a)
Ordinary shares:
On a show of hands every member present at a meeting in
person or by proxy shall have one vote and upon a poll each
share shall have one vote.
(b)
Options:
No voting rights.
SECURITIES EXCHANGE LISTING
The shares of the Company are listed under the symbol RNE on the
Australian Securities Exchange Limited. The Company’s home branch
is Sydney.
The Company offers online voting and shareholders may elect to receive
the Company’s notice of meeting and proxy form via email. The Company
encourages this form of electronic communication. Voting can be
undertaken online, by logging in to the Link website using the holding
details as shown on the proxy form. Shareholders who do not register
for online access will continue to receive these documents by post.
Shareholder who would like to opt in to receive these documents by
email should register their communication preferences at the share
registry’s web portal at www.linkmarketservices.com.au
CONSOLIDATION OF MULTIPLE SHAREHOLDINGS
If you have multiple shareholding accounts that you wish to consolidate
into a single account, please advise the Share Registry in writing.
If your holdings are broker sponsored, please contact the sponsoring
broker directly.
SHAREHOLDER ENQUIRIES
REGISTER FOR EMAIL ALERTS
Please note, that as a shareholder you can register through the ‘Email
Alerts’ section of our web site to receive electronic communications from
the Company. To do so, you should select the ‘Investor Centre’ tab on
our web site at www.renuenergy.com.au. Registration will provide you
with an email advice with a link to www.renuenergy.com.au each time a
relevant announcement is made by the company and posted on this site.
At www.renuenergy.com.au shareholders can view:
• Annual and half-year Reports
• Securities Exchange Announcements
• Renu Energy Share Price Information
• General Shareholder Information
Shareholders with queries about their shareholdings should contact the
Company’s Share Registry as follows:
Link Market Services
Locked Bag A14
Sydney South NSW 1235
Telephone Australia: 1300 554 474
Telephone International: +61 1300 554 474
Fax: +61 2 9287 0303
Email: registrars@linkmarketservices.com.au
CHANGE OF ADDRESS
Issuer sponsored shareholders should notify the share registry
immediately upon any change in their address quoting their
Securityholder Reference Number (SRN). This can be done by phoning
the share registry, by writing to them, or through their web portal
at www.linkmarketservices.com.au. Changes in addresses for broker
sponsored holders should be directed to the sponsoring brokers with the
appropriate Holder Identification Number (HIN).
ANNUAL REPORT
The Company’s Annual Report is posted on its web site immediately
upon release to ASX. Shareholders will not be mailed a copy of the
Annual Report unless they have specifically opted in to request one.
RENU ENERGY LIMITED | ANNUAL REPORT 2017 67
Corporate Directory
Board of Directors
Mr Steve McLean (Non-executive Chairman)
Mr Christopher Murray (Managing Director and CEO)
Mr Richard Brimblecombe (Non-executive Director)
Mr Anton Rohner (Non-executive Director)
Company Secretary
Mr Damian Galvin
Principal and Registered Office
Level 1, 9 Gardner Close, MILTON QLD 4064
Telephone: +61 7 3721 7500
Facsimile: +61 7 3721 7599
Postal Address
PO Box 2046, MILTON QLD 4064
Internet
www.renuenergy.com.au
Email
info@renuenergy.com.au
ABN
55 095 006 090
Banker
Westpac Banking Corporation
Auditor
Ernst & Young
Solicitor
Thomson Geer Lawyers
Share Registry
Link Market Services Limited
Phone: +61 1300 554 474
Fax: 02 9287 0303
Postal address: Locked Bag A14, Sydney South NSW 1235
Website: www.linkmarketservices.com.au
Email: registrars@linkmarketservices.com.au
Securities Exchange Listing
ReNu Energy Limited shares are listed on the ASX. Ticker: RNE
68 RENU ENERGY LIMITED | ANNUAL REPORT 2017
PRINCIPAL and REGISTERED OFFICE Level 1, 9 Gardner Close, MILTON QLD 4064 Telephone: +61 7 3721 7500 Facsimile: +61 7 3721 7599
POSTAL ADDRESS PO Box 2046, MILTON QLD 4064 Internet www.renuenergy.com.au Email info@renuenergy.com.au