New broker report, page-4

• IT is too windy and rainy outside today.... may as well do something useful

a few quick points from the broker report.

• 7 mil revenue 2016
• Fully diluted = 216 million shares
• High growth in tech revenue p/a
• slowing growth in consulting p/a

Envirosuite

• Addressable market = $3 – 4 billion
• Direct and reseller sales approach.
• Anticipate further direct sales with existing clients (eg. currently at 3 of 300ish BHP sites)
• Envirosuite 2.0 is easily scalable. Low cost and can be done quickly
• Currently 6 resellers (listed on page 10). Management targeting upto 30 resellers in next 2 years
• Not patented but claim 2 year headstart. Value consultant experience and contacts to build sticky market share
• Breakeven at 40 aus sites – currently at 28. Forecast 45 end of FY17.
• Gross profit margin of envirosuite software sales= 90% (with 25% reseller cut overseas)
• Each reseller region needs 15 – 20 sites to breakeven
• Acquisitions would either be 1. Buyout of competitor with clients or 2. Bolt on skills

Target price = 17c (MC =30 mil) conservative FY17 ..... 44c FY20

• Ormerod has 29.4% stake = 53 million shares
• Only have annual report data. If we assume no change in major holders
• 53M shares (ormerod) + 37M shares (remaining top 20) + 24M (institutional) = 114M shares
• available = 181M – 114M = 67M for us plebs….

Thanks and enjoy the weekend.