Member Info for Andii

Question 62:

The revenue and profit miss in combination with the need for a rights issue implies that the business model is not as profitable as you believed. With only circa $60 revenue in the first year of subscription/installation giving a free device and free plumbing repairs, isn't it time to bring in an additional charge for repairs and the device to increase profitability to ONDO?

As explained in this presentation, the unit economics of the business in the US are attractive and highly investable, already at a 3 to 1 lifetime value per customer as a ratio against customer acquisition costs. Against any SaaS benchmark, this is already highly attractive. As we explained in the investor presentation, the unit economics already look good today, despite the lack of density in the US, and this will only improve over time.

Question 63:

How many (i.e. what percentage) of installations require free plumbing repairs in the first year following installation? Are repairs in subsequent years also provided by ONDO for free?

The % varies by Insurance partner and country but we have previously stated 8 - 10% in Year 1 with this frequency reducing by circa half in year 2 and staying at that level for subsequent years. Y2 repairs are provided for free as long as the monthly fees are being paid and if so we will provide Leak , Locate and repair service to the customer in response to a device alerting.

Question 64:

Given the weak state of the balance sheet and the fact that the fundraising is at a steep discount to the share price, wouldn't it have been better to raise more funding at this stage. Shareholders will now be extremely nervous about the need for future funding, despite any management statements to the contrary.

See Question 34

Question 65:

If I recall correctly, research into the warm weather / multi home device has been ongoing for some time and I thought that there had been hints of a major step forwards. Why is this project suddenly needing further funding via a rights issue and will take another 18 months?

The All weather project was funded for R&D via IAG in Australia. The R&D and testing has been completed with the further funding required for the commercialisation and industrial design stage to deployment. This is in line with the original project development plan

Question 66:

Whilst I admire your customer-focus, isn't it the case that the financial business model is a "no-brainer" to US insurers, but at the expense of profitability to ONDO?

Margin and EBITDA is impacted by the year one deployment costs , In the H1 interims 90+% of devices are within their first year impacting the margin .

Question 51:

could you reiterate the reasons for the subdued traction in Sweden?

Our Swedish partner switched from the free to customer model to a paid by customer model which significant slowed rollout in the existing regions and stopped new regions. The partner developed their own new mobile app to install the LeakBot which also delayed the rollout. It should also be noted that we do not have an plumbing services in Sweden as they are provided by the carriers 3rd party repair network or contractors

Question 52:

Hi Craig, What is the weekly install rate averaging at the moment? When is this expected to ramp up?

We don’t disclose weekly trading information

Question 53:

At the AGM we were told no more capital was required and we would be EBITA positive by March 2026. What has gone wrong? Do I need to go back into hiding?

See Question 19

Question 54:

When will we become EBITA positive?

See Question 19

Question 55:

Should Craig relocate to the US?

The center of gravity of the business is definitely shifting to the US. We expect to make a range of decisions over the next year or two to orient the business as a truly US centred business, which may include changes to how and where the leadership team is based, but no specific relocation decisions have been taken at this stage.

Question 56:

Will the emphasis on the US mean that our UK business will suffer?

Answer from Meeting:Will our UK business suffer with the focus on the US? No, I don't think so

Question 57:

Why was the equity raise not done at a higher level to have provision to cover the loan repayment in 2027 to avoid uncertainty over how this is going to be paid and share price drag on speculation of a future raise to cover this payment.

See Question 34

Question 58:

With the US becoming such a big contributor, do you expect do adopt USD accounting at some point to avoid currency fluctuations in your numbers

Answer from Meeting:There's one, the one on there that says, would we switch to US accounting standards, and we start reporting in dollars. Reporting in dollars, I would, as the US business grows, I would say yes, US accounting standards, not yet

Question 59:

Given that you identify that economics have changed, is there now rationale for US manufacture?

Answer from Meeting:I think it is the right emphasis for us, not just that it's a big market, but the unit economics in the US, work for our preferred proposition, which is the recurring revenue model across the US

Question 60:

I note Ondo were pleased to announce a registered Office change... what are the implications of this move on expenses etc?

No implications or additional costs

Question 61:

Do we have a forecast for units to be deployed in the coming year?

Yes but this is not something that we can disclose

Question 44:

The nature of growth paired with the now negative EBITDA of new customer acquisitions would imply that unless below a certain threshold of new customer acquisitions, recurring revenue will not be enough to fund said growth. Has the direction of management now locked the company into business model where fund raising will be a perpetual requirement to grow.

No. While in these results you can see a reported loss for each new customer acquired of -$25 the cash profile of every customer in Year 1 is a few dollars positive. So the prepayments do fund the working capital strain of US growth.

Question 45:

Why has the company not pushed Nationwide and other partners to show commitment by significantly expanding their Leakbot roll outs in existing states which will have a lower short term cost due to existing infrastructure, instead of allowing them to have minimal coverage and pushing Ondo to assume all the risk by venturing into more states. What is to say market penetration won’t be equally poor in all these new states, and if their ROI is so good surely this type of deal would benefit them too

Nationwide has been an excellent partner and has really tried to look for a win win and help us to expand. The strategy has been to coordinate expansion with other insurers, which has worked well so far

Question 46:

Why are you ignoring the questions about future raises?

See question 24

Question 47:

If debt balance is still at 6.2 million (as per Kevins statement I believe), how do you intend to manage this from here?

See question 34

Question 48:

Growing into additional white space states (and expanding the light green) sounds like it will need further investment beyond the current raise and incoming revenue. Is that correct? And where would you expect that to come from, e.g. future raises, loans or customer orders?

No that is not correct - this was reason for this fundraise.

Question 49:

Growth has not accelerated sufficiently to finance the business. Even post close, the business still only adding 6k devices per month. How confident are you that you can significantly accelerate this?

Obviously this is the key focus of management and the fundraise just announced gives the team the ability to give US partners what they are asking for.

Question 50:

Can you give a breakdown on how much of the current capital raise is for extendings network into new states vs leakbot edge developement vs ongoing operating spend?

We see the raise as part of the US expansion plans as it provides funding for Leakbot Edge which adds a new sensor technology that can link into our existing platform and plumbing services next work as give us a solution for all US states both warm and cold states

Question 40:

If prioritising rapid roll out into new states over increasing market uptake in existing states is driven by Nationwide, why could a deal not be negotiated in which they provide Ondo with a bigger upfront payment to share the risk rather than dilute at a steep discount? The risks taken to placate Länsförsäkringar in the same manner with software has for example not yielded results so how is the company mitigating a similar risk again?

Nationwide has been and remains an excellent partner for Ondo. We intend to continue to work closely with Nationwide and this will form a cornerstone of our US expansion.

Question 41:

The results explicitly state that to remain a going concern, further raises are required in the next 12 months. How much additional capital is required and when is this expected to be required?

The statement makes clear that he Board believes that the Group should have sufficient working capital to support the business for at least the next 12 months. In undertaking the Going Concern review the Directors are required to consider possible downside scenarios, should the Company’s performance fall materially below existing expectations. In such circumstances a possible fund raise might then be necessary, although alternative mitigating actions might also be appropriate.

Question 42:

Considering the cash burn over the 6 month period and the expected cost of customer acquisition, the amount raised seems incredibly small to be able to expand into new states, satisfy the EBITDA loss from all the new customers as well as fund the new leakbot device. Is the amount raised really a realistic amount of what is needed or more a reflection of the limit they could raise at this price?

This was a fully costed plan and is the amount of financing required.

Question 43:

What has broken in the recurring revenue model that is leading to revenue in the Nordics no longer being recurring (down significantly). What is the company doing differently to ensure that the exact same doesn’t happen in the states where negative EBITDA is being used to acquire new customers.

We have always had a different pricing structure in the Nordics business where we charge an upfront device fee for a shipped unit and then a much smaller ongoing recurring revenue stream. This is not new and has always been in place. The reason why that has gone down significantly is that we have not shipped as many new devices in the period, specifically in Sweden, which is why you get the year on year effect. In a way, this is a demonstration of why we believe the right model is the recurring revenue model that we have since migrated to.

Question 29:

Why can't you tell us what Natiowide extended rollout what look like in terms of new numbers

This is a commercially sensitive matter and we have to respect our partners wishes on what can and cannot be disclosed

Question 30:

You told us no need for placing, but did one yesterday. Any more needed in the future

See Question 24

Question 31:

Why is the customer acquisition cost so high when the cost of the device is much lower? What other costs are included?

The customer acquisition costs is the cost of all LeakBot shipped ( device and postage to customer) so this includes all LeakBot where activated or not

Question 32:

what is the time line for the new model

12 - 18 months inline with the presentation

Question 33:

Is the new device being released in Australia

IAG have an option and a period of exclusivity for a deployment of LeakBot Edge in Australia and New Zealand once it is ready to be deployed

Question 34:

How realistic is it that the repayment of the homserve loan can come from existing operating income or will more capital likely need to be raised. It’s difficult to see how a further raise won’t be required

We have sufficient working capital on the back of this raise. Also, a reminder that HomeServe is our largest shareholder and, in the past, they have been very willing to restructure the terms of the loan twice, as our interests are aligned with theirs as shareholders.

Question 35:

What's the position with AIG - have they lost interest?

Answer from Meeting:A couple of questions have just come in about IAG in Australia and would they roll out the all-weather. LeakBot by Edge. Yeah, so obviously they're the partner that we've been developing with this in, Australia. They're, they are keen and, the testing's obviously been going well, over there in Australia

Question 36:

Is the reduction in ROI (135% vs 188% noted in the full year results) a concern?

No with the planned expansion of the Plumbing network we expect the ROI to steadily improve

Question 37:

The external Leakbot looks very different and more expensive, will it be priced differently?

As the next stage of the project progresses we will review the price point but the expectation is that we can keep the manufacture costs and price point similar to the existing Leakbot

Question 38:

Can you give us an update on cashflow breakeven : it was due end of this calendar year. How far has it been pushed out and what ARR is essentially breakeven?

See Question 19

Question 39:

Is Indiana a good benchmark for comparison or is it an outlier in density? What gives you confidence that this can be achieved in other states?

Yes Indiana is a good initial benchmark in the medium term but we would expect to get above the key average of 2 visit per day for each plumber as deployment density continues to improve across the various states we operate in

Question 22:

When can we expect the warm weather Leakbot to actually be in deployment ?

In line with the presentation 12 - 18 months is the plan

Question 23:

what data do you have that supports the average lifetime value in the US of 4.9 years?

The numbers are all disclosed within the presentation. The monthly churn rate is 1.7%. So 1 divided by 1.7% gives 59 months, so just under 5 years. The 1.7% was verified like every other statistic in the investor presentation, verified by the lawyers. This is based on a data set of over 300,000 live device years, and some of the devices have been live for well over 5 years. So we have a robust data set that drives 4.9 years.

Question 24:

under what circumstances would you need to raise further funds

Following this fundraise the board believes that the Company has sufficient working capital for at least the next 12 months. We have no plans to raise further capital beyond that.

Question 25:

you said in the statement you now expect 4.5-5m revenues and -5-5,5m EBITDA. How does that compare especially on the revenue number to your previous expectation and where is the difference comping from?

See Question 19

Question 26:

Could you implement a recorded delivery system then ask for a device to be returned if it is not installed? Surely you have the mac address of each leakbot, can you blacklist leakbots that have been sold on the black market?

Answer from Meeting:As we have stated, the cost of manufacturing and distributing a LeakBot which is then not activated, and for which we therefore cannot recognise ongoing revenues, is a real cost to the company and impacts our year 1 gross margin. We are therefore constantly seeking the seeking initiatives to minimise the number of devices that are not activated, and also the most cost effective ways to recover these non-activated devices

Question 27:

Can you increase the life expectancy of a leakbot beyond 4 to 5 years? Maybe used units could be returned and serviced?

Answer from Meeting:Absolutely. So part of that is to do with the insurer churn as they cancel policies. Part of it is to do with what we call technical churn. If a device runs out of batteries and the customer doesn't replace it, that kind of thing, there are definitely opportunities that we'll announce fairly soon that will have a significant increase on that, on that lifetime as well

Question 28:

Have you considered delisting and moving your primary listing to the US? It may grant access to deeper and more liquid markets

We have looked at this opportunity and based on the investment advice we have received the current market cap is too small for a US listing. We are pleased with the interest and support from existing and prospective new institutional investors both here in the UK from outside of the UK.

Question 15:

Morning Gents, previously we had been told of line of sight to breakeven and no requirement to raise. The Placing with the results has therefore wrongfooted some investors and will be seen as breaking a promise. What can you say around this please?

Answer from Meeting:We said previously we did not need to raise money get to cash flow breakeven. However we did make this decision to execute this fundraise to enable us to accelerate the US infrastructure buildout and to finance the next stage of LeakBot Edge. This was due to (i) having an inbound interest from a US strategic investor (also a customer - Indiana Farm Bureau) and also being at the stage where we were ready (both technically and having sufficient demand from US partners) to move ahead with LeakBot Edge.

Question 16:

Why did IFB subscribe in the placing? Was there interest from other carriers, why not Nationwide?

IFB approached Ondo about investing in the business, in particular to support LeakBot Edge development and the expansion of our Plumbing network into new states. They are also interested in introducing LeakBot to other farm bureaus which will be part of our ongoing state infill strategy

Question 17:

Kevin, Inventories had built to £1,029,000 at 30th Sep 2025. Where are we now and what do the Company believe to be the right level of Inventory to be held on average in future?

As at the end of November 2025 the inventories have reduced and this is expected to continue as we approach the March year end. Our view is the optimum level of inventory for the business at this time is nearer 25k (circa £0.5m) but it will be dependent on the deployment order books

Question 18:

Did Nationwide ask Ondo to withhold rollout numbers in the latest expansion?

We comply with our obligations as a listed company. Nationwide like all of our partners will have their own internal guidance on what we can and cannot disclose. We have not disclosed any order sizes with Nationwide.

Question 19:

When do you now expect to become EBITDA positive on a run-rate basis?

Our previous guidance was that we expected to be EBITDA positive on an annualise basis in the current financial year. Following our successful fundraise we are now planning to increase investment in the business over the next 12-18 months and this expenditure will mean that we do not now expect to be EBITDA positive in the current financial year.

Question 20:

With progress slower than expected in the Nordics, what is being done to correct this/realign the relationships with those carriers to the benefit of Ondo?

Our Customer Success Director has been in Nordics this week working with our Nordic customers to progress deployment plans for 2026

Question 21:

With the expansion of the share register through this raise and the recent Danish fund taking 3.59% Can you divulge the identities or the nature of these new or expanding investors ?

We will issue the required regulator announcements and update the website as appr

Question 8:

Using carriers for distribution in the U.S. "works," since large aggregators have a significant financial incentive to reduce claims, are the Acrisure, Hub, SIAA, Goosehead and similar, approaching you so you're not so carrier dependent and at the mercy of regulators. Part 2, are your devices sharing customers data with carriers like telematics devices?

Yes device data is shared with carrier partners , subject to compliance with GDPR legislation

Question 9:

Depending on carriers, some are more focused on the owners characteristics others on the house, what is the average year built of a home carriers are putting leakbot in? Are carriers looking more at existing customers or new customers when pitching your device?hone

It really does vary on the Insurance Partner and country , in the UK the focus is more on HNW whereas in the USA it is the whole market

Question 10:

Are there any plans to train our own plumbers from scratch if necessary, to ensure a steady stream of high quality people?

Answer from Meeting:We do train every plumber that joins us in the LeakBot way, our technology and processes and customer service standards

Question 11:

You've announced lots of contract wins recently. What is the typical time lag between an RNS announcing an order for say 10,000 units, and those units becoming revenue generating? Presumably it will be spread over a number of month?

This really depends on the carrier as they provide the initial marketing to the customer , The RNS is issued once the deal or order is signed . deployments is usually within 3-6 months

Question 12:

What is the key constraint to growth, especially in the USA? Is it number of plumbers, willingness of insurers to embrace the technology, cash.....?

The pace of growth is only limited by the pace at which Insurance partner wants to deploy to their customers, and this is partially restrained by which locations LeakBot is available. The recent fundraise as described is focussed on building infrastructure and launching the hot state solution so we can continue to expand with carriers and eventually have a US-wide solution

Question 13:

What is the biggest gating factor before seeing a bunch of home insurance companies jump on the LeakBot bandwagon?

The coverage of the in state plumbing service can be a factor for the biggest carriers committing to LeakBot deployments alongside having a product for the hot states.

Question 14:

What is the latest on the LeakBot being rolled out to all states in the US?

LeakBot Edge once available in 12-18 month will open up the remaining warm weather states to LeakBot deployments

Here are the typed Q & A from recent investor meets presentation

Question 1:

Are there any states in the USA where you think leakbot wont be rolled out?

No apart from Alaska and Hawaii, the rollout will continue as we expand with new and existing insurance partners inline with our strategy to open states and then backfill volumes with smaller insurance partners . The warm weather states will be covered when LeakBot Edge when it is available in the same way

Question 2:

Can leakbot warn users about potentially frozen pipes (i.e. it knows the absolute water / pipe temperature in addition to the differential to the air)?

Yes , LeakBot can identify frozen pipes risk, We have enhanced customer communications being launched before the end of the year

Question 3:

Whilst checking your support FAQs for a potential answer to the frozen pipe question, I noticed that it refers to leakbot detecting leaks using acoustic technology / sound signatures (with no mention of thermi-Q / temperature), which is presumably incorrect?

This is not a correct description and has been corrected

Question 4:

In your interview with Hugo Navarro a few months ago you referenced consumers paying us c.£2 a month if their insurer stopped paying and they wanted to continue using leakbot. This seems very low if the insurers are typically paying c.$5 a month, so it would be useful to understand why there's such a large differential please?

In this pricing model £2 - £3 per month , the maximum number of repairs is limited in the period to 1 per year

Question 5:

Presumably the registered customers number used in the average ongoing monthly revenue per registered customer calculation includes customers buying leakbot upfront / outright in addition to customers paying an ongoing monthly fee?

Answer from Meeting:

Correct, it includes all the registered devices. The 48k number registered is specifically the USA customers active on the newer >$5pm contracts giving a clearer picture of that cohort. We will continue to report on that cohort separately to make tracking progress easier for investors

Question 6:

Do our ROI calcs include indirect claims savings costs such as reductions in insurers' claims handling overheads, or do they just factor direct costs in?

Answer from Meeting:

So we haven't in the decks before talked about a lifetime value per customer. It's a really important, metric to understand the value of the, future cash flows that we're creating as we acquire these customers

Question 7:

Ting is available for consumers to purchase on their own, when will leakbot be available for purchase in the U.S.?

LeakBot is not available to purchase in the USA as we want to control where devices are deployed to ensure that we have an appropriate level of plumbing support to customers

Didnt he and the team at Neo broker a deal with Silbyne to aquire an asset with in-situ value around £30b of gold and uranium and with a processing plant worth £200m? Also the bonuses were awarded in 2024 before Neo was suspended in 2025. Bonuses and salary awarded in 2023 = nil. I do agree they are hefty but there are plenty of bigger renumerations being paid out there. I guess we now know where the cash came from to buy those shares from AUO back in may/june

Topscot;

This is also possible-

"Annualised contracted recurring revenue reached £6.0 million by H1, (and surpassed £7m by the end of H1)

From the full year results;

Ondo have also made some important advances on a new product: LeakBot AC (All Climate). Following

successful alpha testing, our All- Climate solution is now being trialled across Australia with new patents

filed. We believe this new version of LeakBot represents a potential breakthrough in hot-climate

territories, with applicability well beyond the current Australian test region.

From the FY results Q&A

Question 23:

what are your coming R&D initatives?

The main R&D initiative is the All Weather version we are testing in Australia. The testing is going well and we are ramping up the number of houses that the new solution is in. This solution allows us to locate a sensor external to the property in hot weather climates where the shut off valve tends to be outside . We foresee other potential applications for the new soltution too."

*********

Ondo have repeatedly told us that they will become Ebitda positive on a run rate basis 2H of current FY. That means, spoiler alert - they could be EBITDA negative from April to december, then flip to EBITDA positive sometime between now and march.

This means that we will register Ebitda negative on the HY results tomorrow, and on the FY results next July. BUT we will have flipped to Ebitda positive on a runnrate basis sometime around now to end of march.

We have warrant cash and we had £3m in the bank last update so Ebitda negative current FY doesnt mean we run out of cash.

********

Installed devices

Last count was 185k in September

Average increase has been about 7k per month

What the actual installed devices count will be as of today (if they tell us) will depend on

- appetite From insurers, and this appears to be accelerating over time going by the upbeat announcements

- spare capacity of employed plumbers in the 26 states now supported

- European growth

- The install rate of posted devices, it was 70% but a lot of work has been done in the back groundnuts insurers to improve this number as devices posted and not installed is bad for Ondo and the insurer who has pre paid for the devices

200k would be a low figure IMO if they haven't increased the speed of installed devices. Maybe 210k would be a realistic upper target for registered devices installed as of today. Anything higher means a step change in rate of rollout.

---------

Best you go watch the FY results youtube again and go read the Q&A on the investor meets company to get yourself up to speed

Interms tomorrow likely 7am

Presentation Thursday 11am

Time to submit Questions based on results before the presentation

More might join with posts like this

$WeShop Holdings Ltd ​ US buyers should be using Interactive brokers (IBKR) to buy UK stock ticker WCAP(WeCap).

They hold ~13% of Weshop As their only investment, current UK market unaware and only has MCAP of $15m. Huge arbitrage opportunity ​

https://www.webullapp.co.uk/s/post/891853497858478080?hl=en

NPV of new project looks solid. No indication of timeframe to get to 1MT a year production and cost of a processing plant

Yeah, might explain some of the large sells. Last tally it was somewhere under 5m warrants at 20p that expire 22nd may 2026.

Maybe a whole batch will be exercised early may and some large holder has the cash sitting in a bank account or bond earning interest until that date!

"Weak buy"

No sorry "weak sell"

Sorry again changed my mind, 'hold"

Anyone in the USA want some ondo? Head to Webull

https://www.webullapp.co.uk/s/post/890511722784333824?hl=en

Sorry for the abstract nature of post but details of what you are asking are noted here. (Not my words)

https://ibb.co/0jvdvhKN

Must be for a lot of shares? getting 2.88 vs 2.94 on IG

Author calims the real cost per leak in northern europe is over €12k for the insurer when admin costs are included. This makes a compelling case for a leakbot rollout with plumber service

https://www.linkedin.com/posts/ken-o-shea-84626538_insuranceclaims-riskmanagement-claimsmanagement-activity-7399356283650277376-Nf7l?utm_medium=ios_app&rcm=ACoAAAmFqLYBU1PwHqclybfLUV6PLeNjs0Zg6P0&utm_source=social_share_send&utm_campaign=share_via