REGIONAL LIVESTOCK EXCHANGES

OTHER

ASSET DESCRIPTION

  • Development and operation of RLX for cattle and sheep through Australia
  • Sites: CTLX (Central Tablelands), NVLX (Wodonga), CQLX (Gracemere), CVLX (Ballarat), TRLX (Tamworth) and IRLX (Inverell)
  • Targeted nationwide network of 10-15 sites: TRLX development completed June 2013. Development commenced on NVLX January 2014, CVLX and IRLX in 2015
  • Strong pipeline of future sites identified (~$185m)

INVESTMENT FUNDAMENTALS

  • Fixed price construction contracts
  • Key revenue drivers quasi-monopolistic
  • Strong industry alliance in operations
  • Upside return potential through gearing
  • Land and facilities owned in perpetuity or under long term lease with Local Government

KEY RISKS AND MITIGATION

  • Slower than forecast ramp up in throughout
  • Lower than anticipated throughout mitigated with long term market records
  • Seasonal conditions mitigated through geographic spread
  • Operating costs higher than forecast mitigated through precedent knowledge and annual budgeting and monitoring