Ann: Trading Update and FY22 Full Year Guidance, page-7

"Madam, I suspect the perceived negatives associated with the industry is what keeps the market away (you know: legacy, old world, cyclical, capital heavy, competitive, low barriers to entry etc etc etc).

But my sense (and I think that if I'm right, it's beautiful thing - though I may have it wrong) is that these negatives, and the perception of terminal decline, is not only what has provided the attractive purchase prices, it also keeps new competition away. The wonderful thing is that it has provided an incumbent with capital allocation skill (and the right incentives) with the perfect arena to consolidate the market and create attractive economics in an unlikely place."

Mars,

The imperfections I perceive are not so much in the competitive landscape which - I agree with you - is benign for the reasons you mention.

Capital has exited this sector - almost indiscriminately, with little regard for value of the business being sold - and IVE has been the counter-party on the other side of that trade.

Which has been value-accretive for IVE shareholders.

So I've no carp with that side of things.

Instead, the aspect of the business which I see as a limitation on the valuation multiple that will ever be afforded to the company is the market'perception around balance of pricing power between IVE and its customer base, which includes some very large and dominant leading Australian enterprises.

I don't believe IVE is able to dictate terms to many of its customers; but even of that view is inaccurate, I can't ever see the market valuing the stock in a manner that suggests otherwise, so I think the stock will always be priced at discounted valuation ratings.

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