Ann: Pricing Supplement, page-9

Agree with this.

I read recently (so second hand...) that PMP's machines are operating at c.60% capacity - meaning there are operating leverage benefits from taking capacity out of the market and feeding it through PMP's printers.

I think one of the reasons there hasn't been much SP action is because:
• the business improvement is 'hidden' by high D&A charges in the short term following significant PPE investment
• People have a general consensus that printing is a 'dead' industry.

The benefits of the business turnaround are there in FCF (which is funding the current share buybacks) but when people are heavily focused on EPS, DPS and P/E and not consider FCF yield they don't see it.

Catalyst for SP rise is likely to be combo of 100% NPAT payout, share buy-backs and well considered acquisitions to get capacity out of the industry.