Ann: Impairment of US ledger book and amendment to FY24 guidance, page-50

Feel free anyone to provide input on the gearing post write down, fairly sure I'm on the right track but input is welcome. At June 30, CCP had had gearing of about 24%, in the past gearing has been as high as 40%+ and interestingly management incentives (the ROE gateway) is adjusted to a pro forma 30% gearing.

In othet words CCP was undergeared from the company's POV as of June 30. Tangible assets, excluding cash, so the ledgers and loans was ~1045m, net debt (314m less ~66m) of ~250m, so ~24% gearing.With this impairment of 45m post tax, ~64m pre tax I think? That reduces june 30 assets to 982m and gearing rising to 25.5%.

So, the balance sheet is still quite conservative, well under the convenants listed which I understand as under 60% geared and maintaining at least 85% of the previous period's tangible net worth. The debts levels are also within 3 years of NPAT to pay back and most debt is not due for over a couple of years.

The PDL gearing assuming about 200m debt drawn from the corporate facility (and net debt is much lower) is still well under 30%, however another similar sized impairment would approach 15% of the PDL book which was ~762m as at june 30. My read of that is that the company could end the period with 15% less than that and still be within the convenants? Obviously it will be wothing the gearing convenant short of some kind of catastrophe.