Ann: LAU FY22 Results Presentation, page-2

While much repeats previous information, I like the mention on page 14 of 'industry consolidation' and presumably the problems many smaller competitors have with 'compliance'. While the latter is disastrous for Australia's economy (too much government regulation), it's great for LAU as it should have established systems to deal with what can be burdensome administrative matters.

I had forgotten how few 'dry' railable containers LAU has: only 20. While unlisted Linfox and Toll would be major players in this freight subsector, perhaps in a year or two there may be the opportunity for LAU to scale this up a little. Its focus, however, is largely on its far larger number of 'reefers' (refrigerated railable containers). Sticking to one's knitting can be a good strategy.

Some AGM clarification re truck driver annual turnover and whether LAU is managing to recruit (and retain!) sufficient road transport linehaul (long distance) drivers would be informative. This can be a lonely job with long hours away from family and friends. While I don't expect it to be given the difference in tonnages and responsibilities,it is significantly less remunerative than what's paid for freight train drivers.

Constant publicity about the need for us to 'eat healthily' must help LAU a little, as there's an increasing emphasis on fresh food. The reopening of those cafes and restaurants that survived draconian lockdowns in Victoria, Queensland, Western Australia and to a lesser extent NSW and South Australia must also be assisting in reestablishing demand for fresh produce. Areas like Queensland's Lockyer Valley (major producer of vegetables) have for the moment recovered from serious floods.

If the gearing ratio continues to decrease, in time LAU ought explore if it can take over a medium sized competitor, or two or three small ones, but as always SH don't want it to have a rush of blood and pay an unjustified earnings multiple.