Lindsay Australia (LAU) Investor Presentation summary

Market and strategic overview

• Macroeconomic challenges led to lower customer demand, higher cost pressures, and increased competition, but the refrigerated and horticulture markets remain attractive and fragmented, offering growth opportunities.

• Strategic focus centers on network growth, transformation, and performance/sustainability, aiming for consistent growth and a minimum 20% ROIC over the medium term.

• Recent acquisitions, such as GJ Freight in WA, expand presence in key horticultural regions and support integrated logistics offerings.

• Facility upgrades and new developments in Melbourne, Perth, and Adelaide are designed to expand capacity, improve reliability, and drive efficiencies.

• Transition to larger trailer combinations is underway to enhance operational efficiency and sustainability.

Financial performance and capital management

• Group revenue rose 3.6% to $432.8m, but underlying EBITDA fell 9.2% to $47.3m and underlying NPAT dropped 19.6% to $15.8m.

• Net debt increased 5.7% to $127.4m, with net leverage at 1.46x, impacted by a soft 2H24 and a $12.9m tax payment.

• ROIC declined to 16.4%, and underlying EPS decreased to 5.0 cps; a fully franked interim dividend of 2.3 cps was declared, up 9.5%.

• $22.2m was invested in 1H25, with $50.2m planned for FY25, focusing on fleet renewal, trailer upgrades, and facility improvements.

• Operating and free cash flow were impacted by increased tax payments and slower debtor collections, with cash conversion expected to normalize as tax incentives unwind.

Segment performance

• Transport revenue increased 4.5% (excluding fuel), with commercial road freight up 3.5%, but horticulture volumes declined 4.2% due to weather and regional cycles.

• Rail revenue fell 2.9% due to lower WA avocado volumes, but new facility investments are expected to unlock future growth.

• Rural sales grew 7.4% to $85.1m, with EBITDA up 13.3% to $4.8m, driven by strong demand in key regions and effective inventory management.

• WB Hunter sales reached $50.8m, aided by acquisitions, but like-for-like sales declined 5.2% amid challenging Victorian market conditions.

• Integrated rural, transport, and packaging offerings continue to differentiate and drive customer engagement.