Ann: Emefcy Six Month Operational Update, page-57

Valuation is essentially profit or potential profit / (risk - growth)

We are purchasing RWL for just over 100m shares so valuation on their business is $85m - all these shares are locked up for two years at least. Our market cap increases.

When RWL + EMC become Fluence the question is:
1. Is RWL actual value $85m - I believe it should be $300-400m
2. Does this merger reduce the groups risk? More geographies, more products, proven track record of 7,000 installations over 70 countries, more management/experience, however more staff and higher costs
3. What are the new growth prospects? Larger group, diversified products not justMABR now, across more geographies, targeting more markets
4. Synergies - cost savings between the group, cross selling opportunities to new and existing customers

You have Integration risk however RWL has already successfully done business integrations so would expect a smooth process

Essentially the age old question does 1 + 1 = 3

In Fluences case I am thinking 1 + 1 = 5