1 00:00:00,960 --> 00:00:04,640 Speaker 1: You're listening to a share these podcast. If you were 2 00:00:04,880 --> 00:00:08,080 Speaker 1: an investor thinking about channel infrastructure as an investment, what 3 00:00:08,119 --> 00:00:10,600 Speaker 1: would be the metrics that you would be looking at. 4 00:00:10,720 --> 00:00:13,320 Speaker 1: We talked about dividend, so divin yield is one, but 5 00:00:13,400 --> 00:00:15,560 Speaker 1: what are some of those other metrics that you would 6 00:00:15,840 --> 00:00:19,439 Speaker 1: think about tracking over time to assess whether channel of 7 00:00:19,440 --> 00:00:22,599 Speaker 1: structure is being well run and doing well. 8 00:00:23,320 --> 00:00:24,960 Speaker 2: So the measure that I would look at so this 9 00:00:25,120 --> 00:00:29,120 Speaker 2: dividend and free cash flow? Right, and the reason that 10 00:00:29,160 --> 00:00:31,320 Speaker 2: free cash flow is so important and actually you look 11 00:00:31,320 --> 00:00:33,920 Speaker 2: at it across any business you invest in, not just channel. 12 00:00:34,120 --> 00:00:37,840 Speaker 2: You know that is a true measure for the cash 13 00:00:37,960 --> 00:00:41,400 Speaker 2: that the business is producing. And so you know ebit 14 00:00:41,479 --> 00:00:43,839 Speaker 2: DA can have. You know, when people talk about revenue 15 00:00:43,880 --> 00:00:47,680 Speaker 2: and ebit DAR, there's pros and cons with those measures, 16 00:00:47,720 --> 00:00:53,080 Speaker 2: but free cash flow is the earnings less the sustainable capex, 17 00:00:53,640 --> 00:00:56,240 Speaker 2: less your interest costs. So you know, it's a true 18 00:00:56,280 --> 00:00:58,600 Speaker 2: measure of the cash that the business is producing. And 19 00:00:58,680 --> 00:01:03,360 Speaker 2: I think cheerholders should look at that. I wouldn't want 20 00:01:03,360 --> 00:01:06,399 Speaker 2: to give anybody any financial advice, but I certainly look 21 00:01:06,400 --> 00:01:09,160 Speaker 2: at it at any investment that I look at, not 22 00:01:08,760 --> 00:01:11,600 Speaker 2: just not just channel and that's a metric that we 23 00:01:11,680 --> 00:01:14,679 Speaker 2: are focused on as a company because you know, we 24 00:01:14,720 --> 00:01:18,720 Speaker 2: need to balance the long term nature of our business 25 00:01:18,920 --> 00:01:21,920 Speaker 2: and making sure that we make good, disciplined investments in 26 00:01:22,000 --> 00:01:25,360 Speaker 2: our assets to ensure that they're there for a very 27 00:01:25,400 --> 00:01:27,960 Speaker 2: long period of time. So that's covered in the capex 28 00:01:28,000 --> 00:01:31,319 Speaker 2: part of it, and then there's the earnings part of it, 29 00:01:31,440 --> 00:01:33,720 Speaker 2: or the cash that the business generates as well, which 30 00:01:33,760 --> 00:01:37,440 Speaker 2: is a reflection of the enterprise or the job that 31 00:01:37,440 --> 00:01:37,679 Speaker 2: we do. 32 00:01:38,240 --> 00:01:40,680 Speaker 1: Your background is that you've headed up M and A 33 00:01:40,800 --> 00:01:44,360 Speaker 1: for a large recent bank. Outside of maybe those terminal assets, 34 00:01:44,480 --> 00:01:47,400 Speaker 1: is there any other sorts of assets that could be 35 00:01:47,560 --> 00:01:54,400 Speaker 1: quite attractive, particularly because of maybe capabilities, expertise, other sort 36 00:01:54,440 --> 00:01:56,600 Speaker 1: of assets and experience that channel might have that they 37 00:01:56,600 --> 00:01:57,360 Speaker 1: could leverage. 38 00:01:57,960 --> 00:02:00,200 Speaker 2: Yeah. One of the lessons that I've learned from I'm 39 00:02:00,320 --> 00:02:02,400 Speaker 2: doing twenty years of M and A is you need 40 00:02:02,440 --> 00:02:04,280 Speaker 2: to look really long and hard at what your own 41 00:02:04,320 --> 00:02:08,000 Speaker 2: capabilities are as a business and ask yourself, you know, 42 00:02:08,200 --> 00:02:11,160 Speaker 2: can you actually manage what you're buying better than the 43 00:02:11,200 --> 00:02:14,880 Speaker 2: person that's selling it to you? And I think in 44 00:02:14,919 --> 00:02:18,240 Speaker 2: relation to terminals sets, you know, I think we've got 45 00:02:18,639 --> 00:02:21,440 Speaker 2: we managed New Zealand's largest terminal by a country mile. 46 00:02:21,680 --> 00:02:24,400 Speaker 2: We've made some really good operational improvements over the last 47 00:02:24,400 --> 00:02:26,600 Speaker 2: couple of years. Really proud of the way the team's 48 00:02:26,600 --> 00:02:29,600 Speaker 2: delivered that, and I think, you know, that's earned us 49 00:02:29,680 --> 00:02:32,360 Speaker 2: the right to say, well, we are really good owners 50 00:02:32,360 --> 00:02:36,160 Speaker 2: and managers of those assets. And so I think we're 51 00:02:36,160 --> 00:02:39,639 Speaker 2: pretty disciplined about the types of sets that we'll look at, actually, 52 00:02:39,800 --> 00:02:42,920 Speaker 2: and I think focused on those where we can add 53 00:02:42,960 --> 00:02:45,720 Speaker 2: value as a management team and as as an operator, 54 00:02:47,040 --> 00:02:50,440 Speaker 2: and sticking sticking to those now. It might be in 55 00:02:50,480 --> 00:02:53,400 Speaker 2: the future that we build additional capability and we say, hey, 56 00:02:53,400 --> 00:02:55,800 Speaker 2: we've got a capability that we can go and export, 57 00:02:56,040 --> 00:02:58,680 Speaker 2: or you know, there's an asset that comes with the 58 00:02:58,720 --> 00:03:01,320 Speaker 2: team that has a great cape ability. But I think 59 00:03:01,400 --> 00:03:04,320 Speaker 2: for the business as it stands today, that's really our focus. 60 00:03:04,440 --> 00:03:06,600 Speaker 1: So it's really asking the question, are we the highest 61 00:03:06,680 --> 00:03:09,320 Speaker 1: value owner of the sasset? It's right, I'm not just 62 00:03:09,360 --> 00:03:11,520 Speaker 1: trying to get a bargain for a sort of random 63 00:03:11,560 --> 00:03:13,880 Speaker 1: messet that might not be so strategically aligned. 64 00:03:13,960 --> 00:03:15,640 Speaker 2: You shouldn't and you can't do M and A for 65 00:03:15,760 --> 00:03:18,760 Speaker 2: M and a's sake. You do it because you see 66 00:03:18,800 --> 00:03:22,000 Speaker 2: it gives you a competitive advantages of business help solve 67 00:03:22,040 --> 00:03:26,400 Speaker 2: your customers problems in our case, and that most importantly, 68 00:03:26,440 --> 00:03:28,840 Speaker 2: we can add value to shareholders. And if it doesn't 69 00:03:28,880 --> 00:03:32,560 Speaker 2: tack those boxes, then you know we shouldn't be doing it. 70 00:03:32,960 --> 00:03:35,560 Speaker 2: Investing involves the risk you might lose the money you 71 00:03:35,600 --> 00:03:38,880 Speaker 2: start with. We recommend talking to a licensed financial advisor. 72 00:03:39,640 --> 00:03:43,440 Speaker 1: We also recommend reading product disclosure documents before deciding to invest.