Retail Entitlement Offer Booklet and Covering Letter - AJ Lucas

Key Risks
2. General risks relating to the operating businesses of AJL and the markets in which it operates (cont.)
2.17 Labour disputes
If any material disputes were to arise between AJL and its employees or sub-contractors, there would be potential for disruption to the operations of AJL.
Any disruption may increase labour costs and availability and adversely impact revenue and profitability.
2.18 Litigation and legal risks
Litigation risks to AJL include, but are not limited to, claims from various parties, including employees, suppliers, customers and other contractual
counterparties, government and special interest groups, as well as claims in relation to environmental matters, accidents and other commercial matters.
To the extent that such risks are not fully covered by insurance, then any of an adverse outcome in litigation, the cost of responding to potential, threatened
or actual litigation or the disruptive effect of disputes may have a material adverse impact on the financial performance of AJL.
2.19 Occupational Health and Safety
AJL’s operations are subject to a wide variety of stringent and complex law, regulations and permit requirements, many of which relate to the protection of
human health, safety and the environment. The laws and regulations exist at the local, state, national and supranational levels.
AJL manages risks associated with the occupational health and safety of its employees, sub-contractors and others. It is possible for incidents resulting in
injuries to occur which may result in expenses which are not covered by insurance or which are in excess of the amount insured or provided for, with a
resultant impact on AJL’s earnings.
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