Recycle and Resource Operations Pty Ltd.

Overview Key strengths Key risks Vertically integrated waste service provider. Highly leveraged capital structure. Landfill and recycling assets in infill locations provide advantages over competitors. Relies on an improved operating environment to achieve breakeven cash flow. Strong market presence in Sydney and growing presence in Melbourne and southeast Queensland. Fragmented market limits pricing power. Highly regulated industry, with inherent environmental risks. Persistent weak demand will limit Bingo's ability to improve its highly leveraged capital structure over the next six to 12 months. The company is unlikely to improve leverage during this time with its debt-to-EBITDA ratio remaining above 10x, in our view. We believe building and demolition (B&D) waste volumes are likely to remain subdued over the next 12-18 months,

...Recycle and Resource Operations Pty Ltd. (trading as Bingo) will increasingly rely on improved trading conditions to strengthen cash flow and sustain its capital structure. Persistent weak demand will limit Bingo's ability to improve its highly leveraged capital structure over the next six to 12 months. The company is unlikely to improve leverage during this time with its debt-to-EBITDA ratio remaining above 10x, in our view. We believe building and demolition (B&D) waste volumes are likely to remain subdued over the next 12-18 months, lagging a potential recovery in the residential construction market as policy rates ease. Strong competition will also constrain Bingo's ability to improve prices and drive a shift to lower- margin products to retain waste volumes. Consequently, Bingo's earnings are likely to be weaker than we previously anticipated. Any significant working capital outflows due to collection delays and other restructuring costs could further burden the company's cash position...

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