Ann: Managing Director's AGM Presentation, page-3

@eternalgrowth

I had some spare time last night and so logged onto your website (which i must say looks nice and sleek compared to the old version, well done - it'd been a while for me) to read a few of your updates. Lo and behold, update #304 was of particular interest to me for obvious reasons.

The comment in update #304 that particularly pricked my ears was that Gallery Facades could in time potentially justify the entire $112m EV basis at which EG acquired GCS. Are you at liberty to share roughly how you deduce that?

My back-of-envelope workings would suggest that, to justify $112m for GCS' 50% stake, Gallery Facades would need to be doing something in the order of $35-40m p.a. EBITDA (i.e. $17.5-$20m for GCS' 50% share @ ~6x EBITDA). That's a very significant ramp-up from where they are today (100% of the business delivered $46.4m revenue & $5.7m EBIT in last 9 months of FY17), even allowing for significant market growth resulting from Grenfell Tower-driven replacement/rectification works?

Cheers