Ann: Annual Report to shareholders, page-155

The company has responded to some of my questions as follows:

Q: Some commentators have suggested that selling and distribution expenses have also been moved out of COGS to align with management incentives. Please comment…

"Management is measured on the overall performance of the business, the selling and distribution expenses and where the accounting standards and/or auditors allocate costs. Does not impact incentives."

Q: Could you please confirm whether the covenants of CLGs major debt facility are tied to the value of its intangibles? I imagine it's unlikely, given it's largely goodwill, but some I have spoken to have posed the question, so I thought I would ask.

"That is right, intangibles have no impact on the covenants that the company is required to comply with."

Q: I have reviewed the materials and I'm wondering if you would be able to comment on the reduced profitability in the second half, compared to the first half earnings? What were the factors that caused this outcome?

"Mainly one-off adjustments in the 2H that impacted profitability, these are not expected to recur in FY25 (a bad debt, some stock adjustments and etc)."

Q: Secondly, some shareholders expressed disappointment that the compensation for insurance litigation was included in the adjusted earnings. Could you please shed some light on why the decision was made to include this in adjusted earnings, being a 1-off?

"It is a requirement of the accounting standards and up to the auditors, the income from the insurance was offset by the additional cost incurred during the reporting period. It would not be appropriate to adjust for the income component without adjusting for the costs."