UPDATE on 12.12.2024: Investor Q&A
1. Pricing policy and sustainability: In the past, there have been repeated examples of companies such as Nestlé providing water in poor regions, but at very high prices that have made it virtually impossible for the people living there to afford this water in the long term. How does Rainmaker ensure that the prices for the drinking water provided are actually affordable for the local population and do not become a further burden for these people.
Rainmaker: Nestle is one of the larges providers of bottled water in the world, Nestle water branch focuses on premium brands for bottled water. One of their big costs is marketing. Rainmaker focuses on local water production, with less need for expensive marketing campaigns which lead to moderate priced bottled water. Our water kiosks provide an affordable and sustainable solution for communities without existing water distribution systems. Importantly, no one is obligated to use our services, but we aim to be the most cost-effective and accessible option available.
For projects which lack a proper business case Rainmaker supplies the water kiosks, through Stichting Sweet Water Foundation which can help to provide project financing.
2. Long-term impact on the local economy: Could the introduction of water kiosks potentially negatively impact local water sources or traditional water distribution systems? To what extent does Rainmaker consider the impact on the local economy and existing water supply infrastructure?
Rainmaker: Rainmaker’s solutions are designed to complement and protect local resources, not to disrupt them. Utilizing the Rainmaker Solutions in fact helps to protect natural water sources, it provides an alternative for traditional local water sources. The Rainmaker projects with local water distribution create a social hub in the local communities. The projects are operated and managed locally which stimulates local economic development.
3. Profitability and the common good: The project talks about turning the local water supply into a profitable business. How does Rainmaker ensure that the focus is on the common good and not just profit? How are the profits from the sale of the water reinvested in the local community to promote sustainable solutions for the region?
Rainmaker: For projects which lack a proper business case Rainmaker supplies the water kiosks, through Stichting Sweet Water Foundation which can help to provide project financing. Rainmaker donates 10% of its profit to the foundation to help fund these projects. The Sweet Water Foundation supports existing local communities to help them to become water independent.
4. These figures are presumably based on the assumption that analogues will be sold. Are there product descriptions? What are the costs for an installation? Are there ROIs for the plants, e.g. b. if it is assumed that the water produced will be used either as drinking water or for irrigation? Will the calculated target figures for 2024 be achieved? Is it already possible to make a well-founded statement today that the target figures for 2025 will be achieved and why?
Rainmaker: Yes; product descriptions are available, as well ROI and sales prices. The main goal of the Rainmaker equipment is drinking water, using smart water saving technology also the water can be used for irrigation. Based on the current order intake the expected turnover will be larger as budgeted.
5. Why the drop in turnover from 2023 to 2024? Can Rainmaker Holland give more info on the order book (LOIs twv 10 million)?
Rainmaker: Sales in 2023 were slightly higher than the conservative forecast for 2024. The current expectation is that it will not differ much.
6. I am reading through the documentation on the Rainmaker investment and have a question about the business model. The owners talk about technology to make clean drinking water accessible to all. At the same time, they talk about a strong competitive position because they have protected the technology with several patent families. It would help me if the owners explain how this (in my view) contradiction is put into practice. For example, is there a different revenue model if the Rainmaker technology is to be deployed by NGO:s or for acute emergency relief?
Rainmaker: Rainmaker Uses Stichting Sweet Water Foundation to bring water where it is not economically viable, but for on humanitarian ground needed. Having the patented technology in place means the Rainmaker's IP is protected and cant be copied, which allows it supply better performing machines compared to its competitors.