At the investor presentation at 1000 AEST on 24 August 2021, MD...

At the investor presentation at 1000 AEST on 24 August 2021, MD Mr Scott Didier said that JLG has a record pipeline of work in hand (in Australia).

Importantly catastrophe-related work is only included in forecasts when it's contracted. This figure for FY 22 is a forecast of A$46.4 million but does not include any revenue from Bushfire Recovery Victoria. What JLG is finding is that in Victoria across 39 local government areas, there was more damage from the June 2021 storms than initially assessed. JLG does not yet have any work re non-residential buildings to be fixed re the storm damage but this may come. Public buildings (government I assume) work has yet to be quantified. State Emergency Service (SES) volunteers lack the scale and there's huge community pressure to get the work done. Many trees still apparently have not been cleared. (This was surprising, as the fallen large Australian native eucalypts may often have quite valuable hardwood timber that has a commercial value).

Storm surges in Western Australia have been 'recurring'.

Restricted access to properties due to COVID-19 has not been (adversely) material to JLG given the essential nature of rectification work.

JLG now has a larger geographical footprint so it's better able to respond.

In Tasmania, two builders have pulled out of insurance rectfication work - the business-as-usual bread'n'butter of JLG - as it involves compliance with complex matters such as Modern (anti) Slavery and cyber security. Similarly in Queensland, a builder competitor to JLG has exited this sector of the market.

In Adelaide, JLG was historically viewed as an outsider but now that it has a presence, the Royal Automobile Club (big provider of not just car but home insurance) may regard JLG as more 'local'.

The strata titles units management expansion is a three to five year journey. More are on the way.

In the USA, JLG has appointed a specialist firm to advise on mergers and acquisitions. It's probably reviewed 50 to 60 possibilities. About two are edging closer. In the USA, historically when buildings are damaged, individuals or the equivalent over there of strata title managers have had to contact three different entities to do the restoration work. With Steamatic, which JLG has rejuvenated (finishing bthat initial task 14-15 months ago), JLG currently only does 'water' but it wants to make Steamatic franchises a 'one stop shop'.

Second half cash conversion was a 'little lighter' but this was explained that there were some prepayments of revenue in FY 20 that were 'righted' in FY 21. 80 per cent cash conversion to EBITDA is expected in FY 22. (Check this as I am not an accountant).

With the rectification of multi storey buildings with defective and dangerous non-fire rated cladding, in Victoria, JLG has completed five of 17 contracted buildings. Another two will commence next week. There should be opportunities in NSW. JLG didn't mention other states re this but one would think Brisbane and Perth may have some, though not as many as Sydney and Melbourne.

JLG had a hiring freeze in 1H 21 but in 2H 21 put on 100 plus full time equivalent employees. The implication was they could do with more, but I was unsure in listening as to whether the company is finding it hard to source sufficient 'tradies' as we call them in Australia.

Overall, this was a lot of information delivered down the phone line very fast.

Positive!