The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Rajesh Kumar - HSBC, Research Division - Analyst
: Can you give us some color on when you're discussing with the, OEM what type of assets you think you would invest over the next 2 or 3 years
based on what you have learned so far in the pandemic in the sense you've got quite a large depletion CapEx budget ahead of you in the next 3
years? And you must have given some thought to where you might deploy or want to deploy that capital.
Question: Rajesh Kumar - HSBC, Research Division - Analyst
: Understood. But, say, if we are looking 3 years out, would you argue that there would be more specialty in the mix in terms of the type of CapEx
you put in rather than nonresidential construction, especially given the outlook on nonres, Dodge and others have highlighted for the next 18
months or so?
Question: Andrew J. Wilson - JPMorgan Chase & Co, Research Division - Analyst
: Just a couple of quick ones. Just on the competitive backdrop. I'm interested in, obviously, being very clear with how you've approached this
downturn in terms of protecting, I guess, capabilities for longer term. I'm just very interested as to the degree in which your competitors have either
done the same thing or taken a different approach. And I'm kind of thinking about the smaller and midsized guys rather than obviously, the bigger
guys where we get, I guess, similar visibility as we do with yourselves. But just interested if there's a general comment you can make around sort
of how these smaller guys have reacted to this downturn.
Question: Andrew J. Wilson - JPMorgan Chase & Co, Research Division - Analyst
: Yes. That's perfect. And I just have a quick follow-up for Michael. Just with -- just thinking about the drop-through. And obviously, it was high this
quarter for reasons that we know. Just sort of, I guess looking for a little bit of help in terms of, I guess, sequentially, kind of Q3, Q4. But also, when
would we expect it to normalize to the levels, I guess, we saw pretty consistently in recent years? I appreciate there are a lot of moving parts, but
just how you're thinking about them, I guess, would be helpful as well.
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