Ann: Results Presentation FY21, page-157

Hi Flambeau,

Thanks for your calculation. However, I don't agree you should use the EBITA of 80,700,000, which is the number after deduction of one-time product write off of 108,600,000. This write-off is unlikely to happen again as I can see the new CEO has a much better control on the product inventory.

So if we exclude the one-time write off value, the NPV based on your method is AUD3.15 and we should also add AUD1.17 which is the cash on hand divided by share issued numbers. So the final NPV should be AUD4.32. This is assumed A2 has no growth from the worst of time affected by COVID. Now the number looks quite different right? That's is why the current sp is still over AUD5 and the big boys are now just waiting rather than bailing.

We do not know how A2 will perform this year. It is a waiting game. However, A2 has a very strong balance sheet and is still profitable during the very difficult time. That's why it is relatively safer to hold. Only when tide goes out do you discover who's been swimming naked.