Ann: Completion of Tyres4U Acquisition in Australia and NZ, page-13

A key difference in the Australian market is that all tyres are imported. This means that all operators in the market face the same issues in terms of FX movements. Also, without local factories, the supply of tires is not as volatile (i.e. it is easier to not ordering tyres than it is to shut down factories).

My guess is that Management will want to bed down this acquisition over the next 12 months before looking for any further acquisitions. I believe the existing acquisition is a real game-changer for this business and their focus will be on execution. There is so much upside on this acquisition.

The other point to add is that Management was very surprised from the share market’s reaction to their modest downgrade in late 2018. Since that time their announcements appear to be more conservative (under-promised and over-deliver style).

For example, the acquisition announcement indicated that the combined business had revenues of greater than $450 million…Reading the Forager monthly report (ASX announcement), they indicate the combined entity should generate over $480 million…That is a big difference, and I expect Forager as a major shareholder has done their research.