Hi James, Thanks for engaging with the article – we will try to address your points as best we can. We don’t typically look at businesses from a lens of relative value but taking this approach, we see FY18 EBITDA - including UltiSat – as being >$150m without organic growth. D&A will be much higher than 6% of revenues (you may be thinking of depreciation alone, which is typically 5-6% of revenues). Net debt (gross drawn debt less cash) was $333.2m and management’s guidance implies it will cap out around $340-350m. EV/EBITDA therefore comes in around 7.5x (EV of $1170m vs. our FY18e EBITDA of $157m). We see EV/EBIT as being less relevant for this type of business, given EBIT is not a good proxy for operating cash flow but on that basis, obviously a high depreciation business will look more expensive. As for organic growth, the CAGR we calculate ex-acquisition since CY14 is around 8% (revenue) and from CY16-CY18, 0% assuming CY18 revenue is c. $650m. Regards, Clime Team

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Hi Daniel, thanks for your question. The ‘fair value’ we refer to simply reflects our view on the aggregate intrinsic value of the market. As the note discusses, the methodology we use to derive intrinsic value largely focuses on return on equity (ROE) and an appropriate required return (discount rate). Regards, Clime team

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