Ann: DEL Enters Landmark Collaboration Agreement with Brickworks, page-122

Hi,

I don't get that impression with DEL management - that is as you would describe - ''sitting back and collecting exorbitant cheques for little effort''. I look back through the 2021 Annual report (released on 27 September 2021 to the market) and I see Hamish took a salary as executive Chairman of $276k (this excludes super etc.) and Joe took a salary of $318k (for position of MD and excluding super etc.). Whilst Steve took home $22k for non-executive directors fees. On balance I think these numbers are reasonable. Furthermore, given the substantial skin-in-the-game I do believe they are highly incentivised to deliver long term shareholder value - we just have not seen it yet.

And so I don't think we a rogue management team here. They are trying to deliver but they are inexperienced in a listed environment and they have limited track record operating as a unit. They may have a lot of prior experience but they have delivered little to date.

As to your question around lifestyle investors - my key point here is at the time of IPO DEL had a choice. They had a choice to let Regal onto the share register or not. DEL choose to sell 10% of their company to Regal. I'm assuming they had a number of other choices in terms of institutional investors that would have been more patient and longer term capital (in fact if you take a step back from their DEL probably had a choice to go private equity/private market capital of listed market and they chose the latter). This business is a development business at heart and development requires long term patient capital to support growth. Not hedge fund capital. Regal has done nothing but sell down its holding since IPO. Big lessons to be learned here from DEL management I can tell you that.