Ann: Chairman's Address to AGM, page-12

Peter did a great job at recapitalising the balance sheet at the expense of previous equity and debt holders.

The asset sale process was a disaster and shows these businesses are not worth much in the current environment.

As I have been saying for a long time, IMO an investment decision needs to me made on the underlying business. In particular the companies ability to open new stores and sign up new franchisee. I suspect nothing has changed in the 6mths to Dec 19 and a significant amount of stores have closed and next to no new ones opened.

The macro environment for food based franchisees is the toughest I have seen for many many years. With huge increases in raw material costs, mandatory wages increases and high rents, margins are very tight.

Reglatory risk is a concern if the government ever responses to the senate enquire into the franchise industry.

I must say, on my travels around regional and metro NSW and VIC I only saw a handful of RFG stores, only Donut King and Crust. Plus the amount of retail vacancies is not good either.

I also am a little surprised at the low volumes given the amount of shares on issue.

Overall, the next half yearly update will be interesting.