Cleanaway Tracking Toward Fiscal 2024 Guidance

We are cautious on the upside potential of Cleanaway’s strategy, which seeks to enhance shareholder value through strategic infrastructure investments, increased customer service, and operational excellence. Cleanaway is Australia’s largest waste management business with leading positions in municipal waste, commercial and industrial waste, liquid waste (nonhazardous and hazardous), and medical waste. Unfortunately, Cleanaway was a late mover in developing and acquiring post-collection infrastructure (landfills, transfer stations, recycling facilities, waste processing plants, incinerators, and energy from waste facilities) with global players waste management competitors, such as Veolia and Suez, possessing at strategically located post-collections assets which offer cost advantages. Cleanaway can't replicate competitors' post collections footprint without significant investment. Even then, Cleanaway’s position on the of waste processing cost curve is unlikely to match competitors who have developed their infrastructure at lower capital cost.