Ann: LAU DRP Price Notification, page-9

Thanks again Hopeful9.

Lindsay Transport is the key profit contributor, with HY22 EBITDA of $34.8m on revenue of $195.1m. Lindsay Rural is EDITDA profitable and Lindsay Fresh is underwater. Transport profitability has been materially boosted with the rail expansion, with further expansion underway for 2H22. Presumably this will drive some further growth in rail profitability.

While LAU doesn’t operate it’s owns trains, the 30 September 2021 announcement of a five year extension of the deal with Pacific National presumably locks in access and a pricing basis that enables LAU to profitably operate in this space. I assume a National delivery offering is crucial to locking in customer contracts. The December 2021 appointment of Mr Cantwell as a director with his tail sector credentials is a positive move.

While SOL maintains its shareholding, I assume they will always be on the lookout to adding value through industry rationalisation. With LAU’s current fundamentals, it would be hard for it to be earnings accretive to one of the large players who are no doubt valued at significantly higher multiples.