>.

Table of Contents
Assumptions
COMPS
DCF
Precedent
LBO

Data_Ke
Data_Kd
Growth Rate

Annual Reports:
https://investors.readytech.com.au/investor-centre/?page=results-centre
Trading Multiples
Sales Choice : 1 FY23A 103.31
EBITDA Choice : 1 FY23A 26.62
EBIT Choice : 1 FY23A 9.35

Relative Valuation
(AUD in millions, except per share data)
Market Data
Number of
Current 52-Week Price
Company Ticker Shares
Share Price %Change
Outstanding

Readytech Holdings Ltd RDY.AX $3.65 25.00% 117.99

Tier I: Specialty Saas Management Solutions

Technology One Limited TNE.AX $15.96 44.00% 324.67
Infomedia Ltd IFM.AX $1.53 30.88% 372.11
IODM Ltd IOD.AX $0.27 -14.29% 594.72
FINEOS Corporation Holdings Plc FCL.AX $1.90 44.49% 335.00
Bridge SAAS Ltd BGE.AX $0.04 -74.42% 122.14

High $15.96 44% 594.72

75th Percentile $1.90 44% 372.11
Mean $3.94 6% 349.73
Median $1.53 31% 335.00
25th Percentile $0.27 -14% 324.67
Low $0.04 -74% 122.14
Standard Error $1.35 51% 168.20
Count 5

Readytech Holdings Valuation

Implied Enterprise Value
Plus: Net Debt
Minus: Cash and Equivalents
Implied Market Value of Equity
Shares Outstanding
Implied Value per Share

Multiple Range (Football Field)

Minimum
Implied Enterprise Value
Plus: Net Debt
Minus: Cash and Equivalents
Implied Market Value of Equity
Shares Outstanding
Implied Value per Share
Maximum
Implied Enterprise Value
Plus: Net Debt
Minus: Cash and Equivalents
Implied Market Value of Equity
Shares Outstanding
Implied Value per Share

Tier II: Cloud based SaaS

Xero Ltd XRO.AX $117.63 61.47% 152.57
Ansarada Group Ltd AND.AX $1.39 10.80% 89.04
Adveritas Ltd AV1.AX $0.05 -36.00% 659.85
Urbanise com Ltd UBN.AX $0.42 -47.50% 63.97
Whispir Ltd WSP.AX $0.31 -58.22% 117.85
Spenda Ltd SPX.AX $0.01 0.00% 3,665.23
NEXTDC Ltd NXT.AX $12.49 42.12% 517.55
Netlinkz Ltd NET.AX $0.01 -68.00% 3,548.91
Task Group Holdings Ltd TSK.AX $0.39 36.84% 354.94
Sovereign Cloud Holdings Ltd SOV.AX $0.11 -22.86% 338.29

High $117.63 61% 3,665.23

75th Percentile $1.14 30% 624.28
Mean $13.28 -8% 950.82
Median $0.35 -11% 346.62
25th Percentile $0.06 -45% 126.53
Low $0.01 -68% 63.97
Standard Error $3.69 5% 141.35
Count 10

Tier III: Software

Spirit Technology Solutions Ltd ST1.AX $0.06 -7.58% 733.20
Dropsuite Ltd DSE.AX $0.25 22.50% 693.82
Dubber Corp Ltd DUB.AX $0.17 -56.96% 395.94
3P Learning Ltd 3PL.AX $1.27 -6.30% 275.36
WiseTech Global Ltd WTC.AX $63.44 17.92% 333.90
Bravura Solutions Ltd BVS.AX $0.74 -22.53% 446.89
Wrkr Ltd WRK.AX $0.03 45.00% 1,267.44
Damstra Holdings Ltd DTC.AX $0.10 -31.03% 257.04
Data#3 Ltd DTL.AX $7.14 17.09% 153.12
Janison Education Group Ltd JAN.AX $0.37 0.00% 251.59
Cirrus Networks Holdings Ltd CNW.AX $0.06 78.79% 926.97
Hansen Technologies Ltd HSN.AX $5.31 17.99% 200.63
Webcentral Ltd WCG.AX $0.13 -16.67% 328.05
Objective Corporation Ltd OCL.AX $10.81 -18.14% 94.96
Reckon Ltd RKN.AX $0.61 -0.51% 112.93
High $63.44 79% 1,267.44
75th Percentile $3.29 18% 570.36
Mean $6.03 3% 431.46
Median $0.37 -1% 328.05
25th Percentile $0.11 -17% 226.11
Low $0.03 -57% 94.96
Standard Error $1.08 2% 22.24
Count 15
 LTM Financial Statistics

Market Enterprise
Sales EBITDA EBIT
Capitalisation Value

430.66 405.81 103.31 26.62 9.35

5,181.81 3,287.12 368.23 115.12 113.01

569.33 548.60 129.91 43.76 12.32
160.58 195.65 1.57 -2.22 -2.38
636.50 414.70 125.04 0.86 -24.25
4.64 -0.81 1.62 -3.03 -3.46

5,181.81 3,287.12 368.23 115.12 113.01

636.50 548.60 129.91 43.76 12.32
1,310.57 889.05 125.27 30.90 19.05
569.33 414.70 125.04 0.86 -2.38
160.58 195.65 1.62 -2.22 -3.46
4.64 -0.81 1.57 -3.03 -24.25
2,180.49 1,356.86 149.70 51.01 54.12
17,946.56 14,378.91 1,399.88 315.77 97.58
123.33 68.68 51.77 16.78 -4.06
31.67 24.28 2.95 -10.38 -10.56
26.87 31.65 13.25 -3.81 -5.03
35.94 31.39 53.83 -13.49 -18.75
43.98 36.56 3.36 -6.89 -10.74
6,464.16 7,203.97 373.34 199.68 61.81
28.39 34.82 20.73 -10.73 -11.61
138.43 93.18 64.93 6.54 -6.27
35.52 12.28 6.59 -15.57 -21.05

17,946.56 14,378.91 1,399.88 315.77 97.58

134.65 87.06 62.16 14.22 -4.30
2,487.48 2,191.57 199.06 47.79 7.13
39.96 35.69 36.25 -5.35 -8.42
32.63 31.46 8.25 -10.64 -11.39
26.87 12.28 2.95 -15.57 -21.05
579.30 483.78 43.63 11.44 3.95

44.73 59.20 127.11 2.64 -1.44

169.99 101.21 20.95 1.71 1.65
67.31 38.25 30.03 -59.79 -68.14
348.34 284.62 107.11 20.56 5.40
21,182.84 26,598.88 816.80 389.20 301.30
330.70 159.34 248.74 -18.52 -44.97
36.76 20.61 6.77 -1.21 -3.99
25.70 34.29 29.46 4.34 -11.88
1,093.27 732.14 2,564.57 61.64 54.48
91.83 94.30 41.07 2.53 -10.81
54.69 17.24 112.33 4.57 3.38
1,065.36 1,063.28 311.77 97.91 53.61
41.01 54.37 96.18 16.89 4.44
1,026.55 1,254.40 110.36 27.52 22.59
68.32 74.29 51.23 17.96 4.83
21,182.84 26,598.88 2,564.57 389.20 301.30
687.44 508.38 187.93 24.04 13.99
1,709.83 2,039.09 311.63 37.86 20.70
91.83 94.30 107.11 4.57 3.38
49.71 46.31 35.55 2.12 -7.40
25.70 17.24 6.77 -59.79 -68.14
360.13 453.74 43.70 6.88 5.57
al Statistics Enterprise Value / Price /

LTM LTM LTM LTM LTM

EPS
EBITDA Margin Sales EBITDA EBIT Sales

$0.04 26.53% 3.93x 15.25x 43.43x 4.17x

$0.27 41.04% 8.93x 28.55x 29.09x 14.07x

0.03 33.00% 4.22x 12.54x 44.53x 4.38x
0.00 -20.60% 124.50x -88.02x -82.34x 102.18x
-0.07 63.67% 3.32x 482.00x -17.10x 5.09x
-0.07 -19.93% -0.50x 0.27x 0.23x 2.87x

$0.27 63.67% 124.50x 482.00x 44.53x 102.18x

$0.03 41.04% 8.93x 28.55x 29.09x 14.07x
$0.03 19.44% 28.09x 87.07x -5.12x 25.72x
$0.00 33.00% 4.22x 12.54x 0.23x 5.09x
-$0.07 -19.93% 3.32x 0.27x -17.10x 4.38x
-$0.07 -20.60% -0.50x -88.02x -82.34x 2.87x
$0.14 0 54.00x 225.36x 49.42x 42.97x

436.27 333.67 2.19###

31.42 31.42 31.42###
20.70 20.70 20.70
436.27 333.67 2.19 525.88
117.99 117.99 117.99 117.99
$3.70 $2.83 $0.02 $4.46

342.63 7.13 -159.80

31.42 31.42 31.42
20.70 20.70 20.70
342.63 7.13 -159.80 452.76
117.99 117.99 117.99 117.99
$2.90 $0.06 -$1.35 $3.84
 922.18 760.04 271.82
31.42 31.42 31.42
20.70 20.70 20.70
922.18 760.04 271.82 1,453.73
117.99 117.99 117.99 117.99
$7.82 $6.44 $2.30 $12.32

-$0.76 24.37% 10.27x 45.54x 147.36x 12.82x

-$0.06 41.10% 1.33x 4.09x -16.92x 2.38x
-$0.02 -365.86% 8.23x -2.34x -2.30x 10.74x
-$0.10 -24.07% 2.39x -8.31x -6.30x 2.03x
-$0.16 -11.98% 0.58x -2.33x -1.67x 0.67x
$0.00 -170.06% 10.88x -5.31x -3.40x 13.08x
-$0.06 46.76% 19.30x 36.08x 116.55x 17.31x
$0.00 -52.79% 1.68x -3.24x -3.00x 1.37x
$0.00 18.82% 1.44x 14.26x -14.85x 2.13x
-$0.13 -205.81% 1.86x -0.79x -0.58x 5.39x

$0.00 46.76% 19.30x 45.54x 147.36x 17.31x

-$0.01 22.98% 9.76x 11.72x -0.86x 12.30x
-$0.13 -69.95% 5.80x 7.76x 21.49x 6.79x
-$0.06 -18.02% 2.13x -1.56x -2.65x 3.89x
-$0.12 -140.74% 1.50x -3.02x -5.57x 2.05x
-$0.76 -365.86% 0.58x -8.31x -16.92x 0.67x
$0.02 0 0.62x 1.86x 5.89x 0.61x

-$0.02 -1.84% 0.47x 22.44x -41.25x 0.35x

$0.00 6.09% 4.83x 59.29x 61.45x 8.11x
-$0.23 -17.44% 1.27x -0.64x -0.56x 2.24x
$0.02 9.12% 2.66x 13.84x 52.76x 3.25x
$0.65 34.25% 32.56x 68.34x 88.28x 25.93x
-$0.92 -11.83% 0.64x -8.61x -3.54x 1.33x
$0.00 -2.24% 3.05x -17.02x -5.17x 5.43x
-$0.22 25.58% 1.16x 7.91x -2.89x 0.87x
$0.24 2.35% 0.29x 11.88x 13.44x 0.43x
-$0.06 3.69% 2.30x 37.32x -8.73x 2.24x
$0.00 4.35% 0.15x 3.77x 5.09x 0.49x
$0.21 32.78% 3.41x 10.86x 19.83x 3.42x
12.27% 0.57x 3.22x 12.24x 0.43x
$0.22 20.86% 11.37x 45.58x 55.54x 9.30x
$0.51 40.01% 1.45x 4.14x 15.39x 1.33x
 $0.65 40.01% 32.56x 68.34x 88.28x 25.93x
$0.22 23.22% 3.23x 29.88x 36.30x 4.42x
$0.03 10.53% 4.41x 17.49x 17.46x 4.34x
$0.00 6.09% 1.45x 10.86x 12.24x 2.24x
-$0.05 0.26% 0.60x 3.49x -3.21x 0.68x
-$0.92 -17.44% 0.15x -17.02x -41.25x 0.35x
$0.02 0 0.55x 1.64x 2.23x 0.44x
Price /

LTM
EBITDA

16.18x

45.01x
13.01x
-72.24x
739.81x
-1.53x

739.81x
45.01x
144.81x
13.01x
-1.53x
-72.24x
335.37x

346.28
117.99
$2.93

-40.81
117.99
-$0.35
1,198.12
117.99
$10.15

56.83x
7.35x
-3.05x
-7.06x
-2.67x
-6.39x
32.37x
-2.65x
21.18x
-2.28x

56.83x
17.72x
9.36x
-2.46x
-2.95x
-7.06x
2.11x

16.95x
99.58x
-1.13x
16.94x
54.43x
-17.86x
-30.35x
5.93x
17.74x
36.34x
11.96x
10.88x
2.43x
37.30x
3.80x
 99.58x
27.04x
17.66x
11.96x
3.12x
-30.35x
2.06x
DCF Valuation
1. FCFF Calculation
Income Statement to FCFF
EBIT = Revenue - OpEx - D&A
FCFF = EBIT(1-t) + D&A - CapEx - In.NWC
Historical Period CAGR Projection Period CAGR
FCF Calculation : FY16A FY17A FY18A FY19A FY20A FY21A FY22A ('20 - '22) FY23A FY24E FY25E FY26E FY27E FY28E ('23 - '28) Terminal Period
Revenue from contracts with customers 23,472 27,230 25,626 32,711 39,254 50,027 78,284 22.2% 103,306 119,507 138,275 160,021 185,224 214,437 15.7% Sales Choice 1 103,306 FY23A
% growth NA 16.0% -5.9% 27.6% 20.0% 27.4% 56.5% 32.0% 15.68% 15.70% 15.73% 15.75% 15.77% 2 119,507 FY24E
Minus: Cost of Revenue 12,528 12,030 15,723 15,994 20,185 27,184 46,655 67,724 80,137 94,797 112,106 132,540 156,660
Hosting and other direct costs 2,679 2,614 2,696 1,961 2,836 3,473 4,685 8,244
Employee benefits expense 9,849 9,416 13,027 14,033 17,349 23,711 41,970 59,480
% Revenue 53.4% 44.2% 61.4% 48.9% 51.4% 54.3% 59.6% 65.6% 67.1% 68.6% 70.1% 71.6% 73.1% EBITDA Choice 1 26,617 FY23A
Gross profit 10,944 15,200 9,903 16,717 19,069 22,843 31,629 19.3% 35,582 39,369 43,478 47,916 52,684 57,776 10.2% 2 27,206 FY24E
% Margin 47% 56% 39% 51% 49% 46% 40% 34% 36% 37% 39% 40% 42%
Minus: OPEX 4,355 5,763 4,885 9,353 4,115 6,202 6,537 8.35% 8,965 12,164 16,148 21,088 27,187 34,692 EBIT Choice 1 9,345 FY23A
% Revenue 18.6% 21.2% 19.1% 28.6% 10.5% 12.4% 8.4% 8.7% 10.2% 11.7% 13.2% 14.7% 16.2% 2 5,433 FY24E
Advertising and marketing expenses 262 433 397 464 467 437 542 1,094
Consultancy and professional expenses 1,036 872 1,593 6,482 800 2,800 2,089 2,909
Administration expenses 317 1,411 367 678 591 710 767 970
Communication and IT expenses 1,039 921 666 707 1,047 1,343 1,628 2,031
Occupancy costs 710 729 783 384 365 435 530 723
Management fees 482 887 60 112 0 0 0 0
Other expenses 509 510 1,019 526 845 477 981 1,238 2
EBITDA 6,589 9,437 5,018 7,364 14,954 16,641 25,092 25.0% 26,617 27,206 39,775 48,431 58,837 71,333 21.8%
% Margin 28.1% 34.7% 19.6% 22.5% 38.1% 33.3% 32.1% 25.8% 27.3% 28.8% 30.3% 31.8% 33.3%
Minus: D&A 721 1,476 5,818 8,063 9,375 11,057 14,079 17,272 21,773 27,267 33,955 42,081 51,935
% Revenue 3.1% 5.4% 22.7% 24.6% 23.9% 22.1% 18.0% 16.7% 18.2% 19.7% 21.2% 22.7% 24.2%
EBIT 5,868 7,961 (800) (699) 5,579 5,584 11,013 11.1% 9,345 5,433 12,508 14,475 16,755 19,398 15.7%
% Margin 25.0% 29.2% -3.1% -2.1% 14.2% 11.2% 14.1% 9.0% 10.5% 12.0% 13.5% 15.0% 16.5%
Minus: Taxes 807 2,583 314 (301) 872 1,262 2,681 2,505 1,456 3,353 3,880 4,491 5,200
EBIAT 5,061 5,378 (1,114) (398) 4,707 4,322 8,332 8.7% 6,840 3,976 9,155 10,595 12,264 14,198 15.7%
Plus: D&A 721 1,476 5,818 8,063 9,375 11,057 14,079 17,272 21,773 27,267 33,955 42,081 51,935
Minus: CapEx 8 28 577 322 639 391 572 1,463 1,692 1,958 2,266 2,623 3,037
% Revenue 0.0% 0.1% 2.3% 1.0% 1.6% 0.8% 0.7% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% TV Choice 1 Gordon 879,339
Minus: Increase (Decrease) in NWC 0 (8,174) (1,824) 6,068 (7,267) (15,168) (170) 2,442 2,825 3,269 3,783 4,378 5,069 2 Exit Multiple
% Revenue 0.0% -30.0% -7.1% 18.6% -18.5% -30.3% -0.2% 2.4% 2.4% 2.4% 2.4% 2.4% 2.4%
FCFF (Unlevered) 5,774 15,000 5,951 1,275 20,710 30,156 22,009 20,207 21,232 31,195 38,502 47,344 58,027 905,582 TV Choice : 2 V Exit Multiple 905,582 Exit Multiple Choice 1 EV/S 905,582
% growth 160% -60% -79% 1524% 46% -27% -8% 5% 46.92% 23.42% 22.97% 22.57% Exit Multiple Choice : 1 V EV/S 905,582 2 EV/EBITDA 894,225

2. Discounted FCFF and Share Value

Terminal
n 1 2 3 4 5 5 WACC Choice : 2 V ZhenWACC WACC Choice 1 WACC 7.40%
FCFF 21,232 31,195 38,502 47,344 58,027 905,582 2 ZhenWACC 12.62%
PVIF 0.89 0.79 0.70 0.62 0.55 0.55
DFCF 18,853 24,595 26,953 29,428 32,026 499,809

EV 631,664
Minus: MVD 52,001 Debt Choice : 1 V MVD Debt Choice 1 MVD 52,001
Minus: Non Controling Interests 0 2 BVD 52,110
Minus: Pref Stocks 0 3 Net Debt 31,418
Plus: Cash and Equivalents 20,616
Equity Value : $600,279

Intrinsic Value : $5.14

Market Price : $3.62
Upside : 42.00%

1.A. FCFF Formula Inputs

Tax Rate
Tax Rate = Income tax expense / Income before taxes

2016 2017 2018 2019 2020 2021 2022 2023 20,000

Profit before income tax expense 5,885 8,022 (1,667) (2,617) 4,673 2,784 11,624 6,797
18,000
Income Tax Expense 809 2,603 654 (1,127) 730 629 2,830 1,822
Tax Rate 13.7% 32.4% -39.2% 43.1% 15.6% 22.6% 24.3% 26.8% 16,000

CapEx 14,000

CapEx = Cash spent on fixed assets - Cash received from sale of fixed assets 12,000

10,000
2016 2017 2018 2019 2020 2021 2022 2023
Cash spent on PPE 8 67 577 322 639 395 572 1,463 8,000
Minus: Cash received from sale of PPE 0 39 0 0 0 4 0 0
Plus: Cash spent for intangibles 3,114 3,312 2,883 3,592 4,329 5,739 12,038 18,239 6,000
CapEx 8 28 577 322 639 391 572 1,463
4,000

Increase in NWC
2,000
NWC = Non cash CA - Non interest bearning CL =
(A/R+Inventory+Prep. Expenses and Other CA)-(A/P+Accrued L+Other CL) 0
2018 2019 2020 2021 2022 2023

2016 2017 2018 2019 2020 2021 2022 2023 Cash spent on PPE Plus: Cash spent for intangibles

Non cash current assets 3,585 3,988 3,019 3,945 5,256 9,610 14,115 17,042
Minus: Non interest bearing CL 11,171 19,748 20,603 15,461 24,039 43,561 48,236 48,721
NWC (7,586) (15,760) (17,584) (11,516) (18,783) (33,951) (34,121) (31,679)
Increase/(Decrease) in NWC (8,174) (1,824) 6,068 (7,267) (15,168) (170) 2,442

2.A. Discount Rate Inputs (WACC)

Cost of Equity (Ke) Cost of Debt (kd)
CAPM : Ke = Rf + β x (Rm - Rf) Synthetic Rating : Kd = Rf + Equivalent Bond Default Spread + Country Default Spread

β = Cov(Ri,Rm) / Var(Rm) Cost of Equity (Ke) Cost of Debt (Kd)

Weight
Beta : 1.696 CAPM ERP : 2.34% 0.50 Rf : 1.65%
Country ERP : 5.00% 0.50 Equivalent Bond Default Spread : 3.44%
Average Rf, Monthly per Annum : 1.65% ERP : 3.67% Country Default Spread : 0.00%

Average Rm, Monthly per Annum : 3.99% Ke : 7.87% Kd : 5.09%

Market Value of Equity (MVE) Market Value of Debt (MVD)

MVE = Close Price x Total Shares Outstanding 1) BVD 2) MVD = Σ(Interest Expense)/(1+kd)^WA Maturity + (BVD Interest-Bearing)/(1+kd)^WA Maturity

2023-09-28 FY23
Weight
Close Price : $3.62 BVD (FY23A) : $52,110 0.50
MVD (29-Sep-2023) : $51,892 0.50
Total Shares Outstanding : 116,775
MVE : $422,725 MVD : $52,001

Discount Rate (WACC)

WACC = (MVE/MVD+MVE) x Ke + (MVD/MVD+MVE) x Kd x (1-t x (1 - ƛ))
Equity Debt Capital Strucutre
Capital Strucutre Weights : 89.05% 10.95% 100%

Tax Rate : 30%

Imputation (tax) ƛ: 0% WACC : 7.40%

Simplified Inputs -> What we used

$000 %
MVE : 422,725 89% ke : 13.65%
MVD : 52,110 11%
474,835 100% kd : 6.10%

WACC : 12.62%
 Precedent Transactions Valuation
Deal Details
Rank Value
inc. Net Debt
Date
M&A SDC Deal Number Rank Date of Target Target Full Name
Announced
(USD,
Millions)

3992789040 10/26/2022 10/26/2022 323.93 Elmo Software Ltd

3817562040 10/22/2021 10/22/2021 283.14 Over the Wire Holdings Ltd
3814896040 10/18/2021 10/18/2021 287.17 Class Ltd
3766333040 06/28/2021 07/01/2021 262.95 rhipe Ltd
3633975040 09/14/2020 09/14/2020 366.40 Citadel Group Ltd

Precedent Valuation
EV/EBITDA
Targets Date Deal Value (A$m) ACTUAL NTM
1 Elmo Software Ltd 2022 485.61 -32.87 21.81
2 Over the Wire Holdings Ltd 2021 343.02 15.31 11.71
3 Class Ltd 2021 386.59 18.52 15.64
4 rhipe Ltd 2021 402.69 19.03 15.93
5 Citadel Group Ltd 2020 448.65 31.39 11.02

High 31.39 21.81

75th Percentile 19.03 15.93
Mean 10.28 15.22
Median 18.52 15.64
25th Percentile 15.31 11.71
Low -32.87 11.02
Standard Error 24.89 4.30
Count 5

Readytech Holdings Valuation

Implied Enterprise Value 492.95 416.29
Plus: Net Debt 31.42 31.42
Minus: Cash and Equivalents 20.70 20.70
Implied Market Value of Equity 492.95 416.29
Shares Outstanding 117.99 117.99
Implied Value per Share $4.18 $3.53
With Premium $5.98 $5.05

Multiple Range (Football Field)

Minimum
Implied Enterprise Value 407.51 311.69
Plus: Net Debt 31.42 31.42
Minus: Cash and Equivalents 20.70 20.70
Implied Market Value of Equity 407.51 311.69
Shares Outstanding 117.99 117.99
Implied Value per Share $3.45 $2.64
With Premium $4.17 $3.19

Maximum
Implied Enterprise Value 506.52 424.01
Plus: Net Debt 31.42 31.42
Minus: Cash and Equivalents 20.70 20.70
Implied Market Value of Equity 506.52 424.01
Shares Outstanding 117.99 117.99
Implied Value per Share $4.29 $3.59
With Premium $6.31 $5.28
 Target Macro
Target Mid Industry Target Nation Acquiror Full Name
Industry

High Technology Software Australia Cookie Monster AcquireCo Pty Ltd

High Technology IT Consulting & ServicesAustralia Aussie Broadband Ltd
High Technology Software Australia HUB24 Ltd
High Technology Software Australia Crayon Group Holding ASA
High Technology IT Consulting & ServicesAustralia Pacific Group Bidco Pty Ltd

EV/EBITDA
FY1 FY2 Median Premium pre 1 day (%)
25.33 16.89 13.09 46.97%
12.17 10.81 10.71 15.00%
16.05 14.76 18.52 72.93%
15.94 12.53 11.08 20.77%
11.43 9.68 16.75 43.22%

25.33 16.89 18.52 72.93%

16.05 14.76 16.75 46.97%
16.18 12.93 14.03 39.78%
15.94 12.53 13.09 43.22%
12.17 10.81 11.08 20.77%
11.43 9.68 10.71 15.00%
5.53 2.93 3.47 23.12%

424.27 333.51 348.42

31.42 31.42 31.42
20.70 20.70 20.70
424.27 333.51 348.42
117.99 117.99 117.99
$3.60 $2.83 $2.95
$5.15 $4.05 $4.23
323.93 287.73 294.92
31.42 31.42 31.42
20.70 20.70 20.70
323.93 287.73 294.92
117.99 117.99 117.99
$2.75 $2.44 $2.50
$3.32 $2.95 $3.02

427.20 392.87 445.83

31.42 31.42 31.42
20.70 20.70 20.70
427.20 392.87 445.83
117.99 117.99 117.99
$3.62 $3.33 $3.78
$5.32 $4.89 $5.55
 Acquiror Macro Industry Acquiror Mid Industry Acquiror Nation

Financials Other Financials Australia

Telecommunications Telecommunications Services Australia
Financials Other Financials Australia
High Technology IT Consulting & Services Norway
Financials Other Financials Australia

Premium pre 1 week (%)

55.95%
15.69%
76.64%
27.88%
34.12%

76.64%
55.95%
42.06%
34.12%
27.88%
15.69%
24.23%
 Target Financial Advisor Name Acquiror Financial Advisor Name
('|') ('|')

UBS Securities Australia Ltd Morgan Stanley

Grant Thornton|Macquarie Capital (AustraliaFindex Corporate Fin (Aust)
UBS AG|Leadenhall Australia Ltd Citigroup Global Markets Aust
KPMG|Jefferies (Australia) Pty Ltd
Macquarie Capital (Australia) Ernst & Young LLP|Ad Astra Corporate Advisor
 M&A TRBC Activity Form of the
Deal Status M&A Type
('|') Deal

Software (NEC) Completed Disclosed Dollar Value DealMerger

Technology Consulting & Outsourcing ServiceCompleted Disclosed Dollar Value DealMerger
Software (NEC) Completed Disclosed Dollar Value DealMerger
Software (NEC) Completed Disclosed Dollar Value DealMerger
IT Services & Consulting (NEC) Completed Disclosed Dollar Value DealMerger
LBO Analysis
Assumptions
Entry ($MM) Financials
LTM EBITDA 26,617 LTM Financials
EBITDA Multiple 12.5x Revenue 103306
Enterprise Value 333,669 EBITDA 26617
Existing Net Debt 31418 D&A 17272
Cash and Eq. 20616 Capex 1463
Equity Value 322,867 NWC (31679)

Fees & Expenses (%) 2.5%

Operating Assumptions
Exit ($MM) Revenue Growth 15.7%
EBITDA Multiple 12.5x YoY margin expansion 1.5%
Tax Rate 30.0%

Sources and Uses

Sources Uses
Amount xEBITDA % Capital
Junior Debt 53,234 2.0x 15.0% Debt Retirement
Senior Debt 106,468 4.0x 30.0% Equity Payment
Total Debt 159,702 6.0x 45.0%
Fees and Expenses
Sponsor Equity 195,369 7.3x 55.0%

Total Sources 355,071 13.3x 100.0% Total Uses

Financials
Operating Model Year 0 Year 1
Revenue 103,306 119,553
% growth 15.7%

EBITDA 26,617 32,596

% sales 25.8% 27.3%

EBIT 9,345 12,608

% sales 9.0% 10.5%

Interest 9,199

EBT 3,409
% sales 2.9%
Taxes 1,023
% tax rate 30.0%

Net Income 2,386

% sales 2.0%

Cash flow Items Year 0 Year 1

D&A 17,272 19,988
% sales 16.7% 16.7%

Net Working Capital (31,679) (36,661)

% sales (30.7%) -30.7%
Change in Net Working Capital (4,982)

CapEx 1,463 1,693

% sales 1.4% 1.4%

Levered Cash Flow Year 0 Year 1

Net Income 2,386
D&A 19,988
CapEx 1,693
Change in NWC (4,982)
Levered Cash Flow 25,664

Debt Schedule
Year 0 Year 1
Bank Debt
Beginning Balance 53,234
Interest 3,290
Paydown 25,664
Ending Balance 53,234 27,570

Sr. Notes
Beginning Balance 106,468
Interest 5,909
Paydown 0
Ending Balance 106,468 106,468

Total Debt
Beginning Balance 159,702
Interest 9,199
Paydown 25,664
Ending Balance 159,702 134,038
 IRR
EBITDA at Exit
Exit Multiple
Enterprise Value
Net Debt
Sponsor Equity Value

Sponsor Equity at Entry

MOIC
x IRR
Capital Structure Amount Cost
Junior Debt 2.0x 6.18%
Senior Debt 4.0x 5.55%

Reference
IRR 37.4%
Go/No Go Go

Amount xEBITDA % Capital

31,418 1.2x 8.8%
322,867 12.1x 90.9%

785 0.0x 0.2%

355,071 13.3x 100.0%

Year 2 Year 3 Year 4 Year 5

138,355 160,114 185,295 214,437
15.7% 15.7% 15.7% 15.7%

39,798 48,459 58,859 71,333

28.8% 30.3% 31.8% 33.3%

16,666 21,689 27,879 35,481

12.0% 13.5% 15.0% 16.5%

7,613 5,592 3,237 277

9,053 16,097 24,643 35,204

6.5% 10.1% 13.3% 16.4%
 2,716 4,829 7,393 10,561
30.0% 30.0% 30.0% 30.0%

6,337 11,268 17,250 24,642

4.6% 7.0% 9.3% 11.5%

Year 2 Year 3 Year 4 Year 5

23,132 26,770 30,980 35,852
16.7% 16.7% 16.7% 16.7%

(42,427) (49,099) (56,821) (65,757)

-30.7% -30.7% -30.7% -30.7%
(5,766) (6,672) (7,722) (8,936)

1,959 2,268 2,624 3,037

1.4% 1.4% 1.4% 1.4%

Year 2 Year 3 Year 4 Year 5

6,337 11,268 17,250 24,642
23,132 26,770 30,980 35,852
1,959 2,268 2,624 3,037
(5,766) (6,672) (7,722) (8,936)
33,276 42,443 53,328 66,394

Year 2 Year 3 Year 4 Year 5

27,570 - - -
1,704 - - -
27,570 - - -
- - - -

106,468 100,763 58,320 4,992

5,909 5,592 3,237 277
5,705 42,443 53,328 66,394
100,763 58,320 4,992 (61,402)

134,038 100,763 58,320 4,992

7,613 5,592 3,237 277
33,276 42,443 53,328 66,394
100,763 58,320 4,992 (61,402)
 71,333
12.5x
894,225
(61,402)
955,627

195,369

4.9x
37.4%
 Cost of Equity (Ke) Data
Sample Size : 54 Rf benchmark :
Duration : 5 year Monthly Commonwealth Government 5 year bond
Dates : 2019-04-30 2023-09-30 Frequency : Monthly, p.a
Source : Refinitiv Source : RBA

RDY.AX AXJO R(RDY) R(AXJO) Rf

Date Close (A$) Close % % Date %
1 2023-09-30 3.70 7,025 2.49% -3.84% * 2023-09-30 4.165%
2 2023-08-31 3.61 7,305 9.39% -1.42% 2023-08-31 3.870%
3 2023-07-31 3.30 7,410 0.00% 2.88% 2023-07-31 3.920%
4 2023-06-30 3.30 7,203 10.00% 1.58% 2023-06-30 3.790%
5 2023-05-31 3.00 7,091 -2.91% -2.98% 2023-05-31 3.240%
6 2023-04-30 3.09 7,309 0.00% 1.83% 2023-04-30 3.070%
7 2023-03-31 3.09 7,178 -6.36% -1.11% 2023-03-31 3.220%
8 2023-02-28 3.30 7,258 -9.34% -2.92% 2023-02-28 3.480%
9 2023-01-31 3.64 7,477 7.06% 6.22% 2023-01-31 3.340%
10 2022-12-31 3.40 7,039 -13.92% -3.37% 2022-12-31 3.310%
11 2022-11-30 3.95 7,284 21.91% 6.13% 2022-11-30 3.420%
12 2022-10-31 3.24 6,864 13.29% 6.01% 2022-10-31 3.610%
13 2022-09-30 2.86 6,474 -4.03% -7.34% 2022-09-30 3.500%
14 2022-08-31 2.98 6,987 -8.02% 0.60% 2022-08-31 3.160%
15 2022-07-31 3.24 6,945 4.52% 5.74% 2022-07-31 3.160%
16 2022-06-30 3.10 6,568 2.31% -8.92% 2022-06-30 3.500%
17 2022-05-31 3.03 7,211 -10.62% -3.01% 2022-05-31 3.090%
18 2022-04-30 3.39 7,435 4.31% -0.86% 2022-04-30 2.770%
19 2022-03-31 3.25 7,500 3.50% 6.39% 2022-03-31 2.210%
20 2022-02-28 3.14 7,049 -5.14% 1.11% 2022-02-28 1.810%
21 2022-01-31 3.31 6,972 -15.13% -6.35% 2022-01-31 1.540%
22 2021-12-31 3.90 7,445 1.04% 2.60% 2021-12-31 1.320%
23 2021-11-30 3.86 7,256 2.12% -0.92% 2021-11-30 1.380%
24 2021-10-31 3.78 7,324 8.31% -0.12% 2021-10-31 1.110%
25 2021-09-30 3.49 7,332 6.73% -2.69% 2021-09-30 0.660%
26 2021-08-31 3.27 7,535 40.34% 1.92% 2021-08-31 0.570%
27 2021-07-31 2.33 7,393 -2.92% 1.09% 2021-07-31 0.640%
28 2021-06-30 2.40 7,313 15.94% 2.11% 2021-06-30 0.730%
29 2021-05-31 2.07 7,162 -0.48% 1.93% 2021-05-31 0.700%
30 2021-04-30 2.08 7,026 12.43% 3.46% 2021-04-30 0.690%
31 2021-03-31 1.85 6,791 1.65% 1.76% 2021-03-31 0.710%
32 2021-02-28 1.82 6,673 -12.50% 1.00% 2021-02-28 0.480%
33 2021-01-31 2.08 6,607 -0.48% 0.31% 2021-01-31 0.370%
34 2020-12-31 2.09 6,587 2.96% 1.06% * 2021-01-01 0.414%
35 2020-11-30 2.03 6,518 -2.40% 9.96% 2020-12-01 0.340%
36 2020-10-31 2.08 5,928 7.22% 1.92% 2020-11-01 0.308%
37 2020-09-30 1.94 5,816 6.30% -4.04% 2020-10-01 0.291%
38 2020-08-31 1.83 6,061 17.36% 2.24% 2020-09-01 0.297%
39 2020-07-31 1.56 5,928 11.07% 0.51% 2020-08-01 0.431%
40 2020-06-30 1.40 5,898 -9.09% 2.47% 2020-07-01 0.399%
41 2020-05-31 1.54 5,756 10.00% 4.22% 2020-06-01 0.398%
42 2020-04-30 1.40 5,522 45.83% 8.78% 2020-05-01 0.399%
43 2020-03-31 0.96 5,077 -43.70% -21.18% 2020-04-01 0.425%
44 2020-02-29 1.71 6,441 -21.06% -8.21% 2020-03-01 0.340%
45 2020-01-31 2.16 7,017 23.43% 4.98% 2020-02-01 0.544%
46 2019-12-31 1.75 6,684 0.86% -2.36% 2020-01-01 0.669%
47 2019-11-30 1.74 6,846 -7.47% 2.74% 2019-12-01 1.004%
48 2019-10-31 1.88 6,663 5.34% -0.37% 2019-11-01 0.703%
49 2019-09-30 1.78 6,688 6.91% 1.27% 2019-10-01 0.860%
50 2019-08-31 1.67 6,604 5.38% -3.06% 2019-09-01 0.762%
51 2019-07-31 1.58 6,813 2.60% 2.93% 2019-08-01 0.679%
52 2019-06-30 1.54 6,619 -13.48% 3.47% 2019-07-01 0.855%
53 2019-05-31 1.78 6,397 7.88% 1.13% 2019-06-01 1.024%
54 2019-04-30 1.65 6,326 2019-05-01 1.172%
 Average Rf (p.a) : 1.65%
h Government 5 year bond Average Rm (monthly): 0.33%

Marketwatch

Ri-Rf Rm-Rf SUMMARY OUTPUT

% %
2023-09-01 0.85% -5.49% Regression Statistics
7.75% -3.06% Multiple R 0.61
-1.65% 1.23% R Square 0.37
8.35% -0.07% Adjusted R Square 0.36
-4.56% -4.63% Standard Error 0.11
-1.65% 0.19% Observations 53
-8.01% -2.76%
-10.99% -4.57% ANOVA
5.41% 4.58% df
-15.57% -5.02% Regression 1
20.27% 4.48% Residual 51
11.64% 4.37% Total 52
-5.67% -8.98%
-9.67% -1.05% Coefficients
2.87% 4.10% Intercept 0.031
0.66% -10.56% X Variable 1 1.696
-12.26% -4.66%
2.66% -2.51%
1.86% 4.75%
-6.78% -0.53%
-16.77% -8.00%
-0.61% 0.95%
0.47% -2.57%
f(x) = 1.69630767127847 x + 0.03071921708
6.66% -1.76% R² = 0.374694745119637
5.08% -4.34%
38.70% 0.28% -25% -20% -15% -10% -5%

-4.56% -0.56%
14.30% 0.47%
-2.13% 0.29%
10.79% 1.82%
0.00% 0.11%
-14.15% -0.65%
-2.12% -1.34%
1.31% -0.58%
-4.05% 8.31%
 5.57% 0.28%
4.66% -5.68%
15.72% 0.59%
9.43% -1.14%
-10.74% 0.83%
8.35% 2.58%
44.19% 7.13%
-45.34% -22.83%
-22.71% -9.85%
21.78% 3.34%
-0.78% -4.01%
-9.11% 1.09%
3.69% -2.02%
5.26% -0.37%
3.73% -4.70%
0.95% 1.28%
-15.13% 1.82%
6.23% -0.52%
 SS MS F Significance F
0.37 0.37 30.56 0.00
0.62 0.01
0.99

Standard Error t Stat P-value Lower 95% Upper 95%

0.016 1.964 0.055 -0.001 0.062
0.307 5.528 0.000 1.080 2.312

Rm-Rf
50%
40%
30%
20%
0767127847 x + 0.0307192170817984
10%
4745119637
0% Ri-Rf
-15% -10% -5% 0% 5% 10%
-10%
-20%
-30%
-40%
-50%
 Cost of Debt (Kd) Data
Equivalent Bond Default Spread

Source Rating Moody's Equivalent Spread

Credit Rate S&P Global Capital IQ B B2 5.26%

Interest Coverage Ratio EBIT/Interest Expense 3.65x A3 1.62%

EBIT (FY23A) 9,345
Interest Expense (FY23A) 2,563

Spread Weighted Average 3.44%

Country Default Spread

Australia Aaa 0.00%

Book Value of Debt (BVD)

FY23A
BVD :
Interest bearing
ST Debt $0
LT Debt $46,949
ST Capital Leases $1,229
LT Capital Leases $3,932

Total BVD : $52,110

Market Value of Debt (MVD)

As At : 30-Jun-2023
Debt Structure Type Amount Coupon/Base Rate Floating Rate
Facility A Term Loans 35,000 NA BBSY + 2.750%
Facility B Revolving Credit 12,000 NA BBSY + 2.750%
Lease Liabilities Capital Lease 5,161 4.81% NA

Weighted Average Maturity (years) : Time to Maturity (T) 2.75

Bond Coupon : Interest Expense (C ) 2,563

Debt Discount Rate : Kd 5.09%

Par Value : BVD 52,110

MVD : $51,892
 Weight
0.50

0.50

Maturity Seniority Secured Convertible Currency Weight Time To Maturity

30-Jun-2026 Senior Yes No AUD 74.47% 2.75
30-Jun-2026 Senior Yes No AUD 25.53% 2.75
- Senior Yes No AUD
Ratings, Interest Coverage and Default Spread (Non-financial firms)
Source :NYU Stern - Aswath DamodaranLast Update : 2023-01-01

> ≤ to Rating is Spread is

-100000 0.199999 D2/D 20.00%
0.2 0.649999 C2/C 17.50%
0.65 0.799999 Ca2/CC 15.78%
0.8 1.249999 Caa/CCC 11.57%
1.25 1.499999 B3/B- 7.37%
1.5 1.749999 B2/B 5.26%
1.75 1.999999 B1/B+ 4.55%
2 2.2499999 Ba2/BB 3.13%
2.25 2.49999 Ba1/BB+ 2.42%
2.5 2.999999 Baa2/BBB 2.00%
3 4.249999 A3/A- 1.62%
4.25 5.499999 A2/A 1.42%
5.5 6.499999 A1/A+ 1.23%
6.5 8.499999 Aa2/AA 0.85%
8.5 100000 Aaa/AAA 0.69%
Country Default Spreads and Risk Premiums
Source : NYU Stern - Aswath Damodaran Last Updated :

Country Moody's ratingDefault SpreadCountry Risk PremiumEquity Risk Premium

Abu Dhabi Aa2 0.53% 0.75% 5.75%
Albania B1 4.82% 6.83% 11.83%
Algeria NR 3.85% 5.46% 10.46%
Andorra (Principality of) Baa2 2.04% 2.89% 7.89%
Angola B3 6.95% 9.86% 14.86%
Argentina Ca 12.84% 18.21% 23.21%
Armenia Ba3 3.85% 5.46% 10.46%
Aruba Baa2 2.04% 2.89% 7.89%
Australia Aaa 0.00% 0.00% 5.00%
Austria Aa1 0.43% 0.61% 5.61%
Azerbaijan Ba1 2.68% 3.80% 8.80%
Bahamas B1 4.82% 6.83% 11.83%
Bahrain B2 5.88% 8.35% 13.35%
Bangladesh B1 4.82% 6.83% 11.83%
Barbados Caa1 8.02% 11.38% 16.38%
Belarus C 17.50% 24.82% 29.82%
Belgium Aa3 0.64% 0.91% 5.91%
Belize Caa2 9.63% 13.66% 18.66%
Benin B1 4.82% 6.83% 11.83%
Bermuda A2 0.91% 1.28% 6.28%
Bolivia Caa1 8.02% 11.38% 16.38%
Bosnia and Herzegovina B3 6.95% 9.86% 14.86%
Botswana A3 1.28% 1.82% 6.82%
Brazil Ba2 3.22% 4.57% 9.57%
Brunei NR 0.64% 0.91% 5.91%
Bulgaria Baa1 1.71% 2.43% 7.43%
Burkina Faso Caa1 8.02% 11.38% 16.38%
Cambodia B2 5.88% 8.35% 13.35%
Cameroon B2 5.88% 8.35% 13.35%
Canada Aaa 0.00% 0.00% 5.00%
Cape Verde B3 6.95% 9.86% 14.86%
Cayman Islands Aa3 0.64% 0.91% 5.91%
Chile A2 0.91% 1.28% 6.28%
China A1 0.75% 1.07% 6.07%
Colombia Baa2 2.04% 2.89% 7.89%
Congo (Democratic Republic of)B3 6.95% 9.86% 14.86%
Congo (Republic of) Caa2 9.63% 13.66% 18.66%
Cook Islands B2 5.88% 8.35% 13.35%
Costa Rica B2 5.88% 8.35% 13.35%
Côte d'Ivoire Ba3 3.85% 5.46% 10.46%
Croatia Baa2 2.04% 2.89% 7.89%
Cuba Ca 12.84% 18.21% 23.21%
Curacao Baa2 2.04% 2.89% 7.89%
Cyprus Ba1 2.68% 3.80% 8.80%
Czech Republic Aa3 0.64% 0.91% 5.91%
Denmark Aaa 0.00% 0.00% 5.00%
Dominican Republic Ba3 3.85% 5.46% 10.46%
Ecuador Caa3 10.70% 15.18% 20.18%
Egypt B3 6.95% 9.86% 14.86%
El Salvador Caa3 10.70% 15.18% 20.18%
Estonia A1 0.75% 1.07% 6.07%
Ethiopia Caa2 9.63% 13.66% 18.66%
Fiji B1 4.82% 6.83% 11.83%
Finland Aa1 0.43% 0.61% 5.61%
France Aa2 0.53% 0.75% 5.75%
Gabon Caa1 8.02% 11.38% 16.38%
Gambia NR 5.88% 8.35% 13.35%
Georgia Ba2 3.22% 4.57% 9.57%
Germany Aaa 0.00% 0.00% 5.00%
Ghana Ca 12.84% 18.21% 23.21%
Greece Ba3 3.85% 5.46% 10.46%
Guatemala Ba1 2.68% 3.80% 8.80%
Guernsey (States of) Aa2 0.53% 0.75% 5.75%
Guinea NR 9.63% 13.66% 18.66%
Guinea-Bissau NR 5.88% 8.35% 13.35%
Guyana NR 1.71% 2.43% 7.43%
Haiti NR 12.84% 18.21% 23.21%
Honduras B1 4.82% 6.83% 11.83%
Hong Kong Aa3 0.64% 0.91% 5.91%
Hungary Baa2 2.04% 2.89% 7.89%
Iceland A2 0.91% 1.28% 6.28%
India Baa3 2.35% 3.33% 8.33%
Indonesia Baa2 2.04% 2.89% 7.89%
Iran NR 6.95% 9.86% 14.86%
Iraq Caa1 8.02% 11.38% 16.38%
Ireland Aa3 0.64% 0.91% 5.91%
Isle of Man Aa3 0.64% 0.91% 5.91%
Israel A1 0.75% 1.07% 6.07%
Italy Baa3 2.35% 3.33% 8.33%
Jamaica B2 5.88% 8.35% 13.35%
Japan A1 0.75% 1.07% 6.07%
Jersey (States of) Aa3 0.64% 0.91% 5.91%
Jordan B1 4.82% 6.83% 11.83%
Kazakhstan Baa2 2.04% 2.89% 7.89%
Kenya B3 6.95% 9.86% 14.86%
Korea Aa2 0.53% 0.75% 5.75%
Korea, D.P.R. NR 12.84% 18.21% 23.21%
Kuwait A1 0.75% 1.07% 6.07%
Kyrgyzstan B3 6.95% 9.86% 14.86%
Laos Caa3 10.70% 15.18% 20.18%
Latvia A3 1.28% 1.82% 6.82%
Lebanon C 17.50% 24.82% 29.82%
Liberia NR 10.70% 15.18% 20.18%
Libya NR 2.04% 2.89% 7.89%
Liechtenstein Aaa 0.00% 0.00% 5.00%
Lithuania A2 0.91% 1.28% 6.28%
Luxembourg Aaa 0.00% 0.00% 5.00%
Macao Aa3 0.64% 0.91% 5.91%
Macedonia Ba3 3.85% 5.46% 10.46%
Madagascar NR 6.95% 9.86% 14.86%
Malawi NR 12.84% 18.21% 23.21%
Malaysia A3 1.28% 1.82% 6.82%
Maldives Caa1 8.02% 11.38% 16.38%
Mali Caa2 9.63% 13.66% 18.66%
Malta A2 0.91% 1.28% 6.28%
Mauritius Baa3 2.35% 3.33% 8.33%
Mexico Baa2 2.04% 2.89% 7.89%
Moldova B3 6.95% 9.86% 14.86%
Mongolia B3 6.95% 9.86% 14.86%
Montenegro B1 4.82% 6.83% 11.83%
Montserrat Baa3 2.35% 3.33% 8.33%
Morocco Ba1 2.68% 3.80% 8.80%
Mozambique Caa2 9.63% 13.66% 18.66%
Myanmar NR 10.70% 15.18% 20.18%
Namibia B1 4.82% 6.83% 11.83%
Netherlands Aaa 0.00% 0.00% 5.00%
New Zealand Aaa 0.00% 0.00% 5.00%
Nicaragua B3 6.95% 9.86% 14.86%
Niger B3 6.95% 9.86% 14.86%
Nigeria Caa1 8.02% 11.38% 16.38%
Norway Aaa 0.00% 0.00% 5.00%
Oman Ba2 3.22% 4.57% 9.57%
Pakistan Caa3 10.70% 15.18% 20.18%
Panama Baa2 2.04% 2.89% 7.89%
Papua New Guinea B2 5.88% 8.35% 13.35%
Paraguay Ba1 2.68% 3.80% 8.80%
Peru Baa1 1.71% 2.43% 7.43%
Philippines Baa2 2.04% 2.89% 7.89%
Poland A2 0.91% 1.28% 6.28%
Portugal Baa2 2.04% 2.89% 7.89%
Qatar Aa3 0.64% 0.91% 5.91%
Ras Al Khaimah (Emirate of) A3 1.28% 1.82% 6.82%
Romania Baa3 2.35% 3.33% 8.33%
Russia Ca 12.84% 18.21% 23.21%
Rwanda B2 5.88% 8.35% 13.35%
Saudi Arabia A1 0.75% 1.07% 6.07%
Senegal Ba3 3.85% 5.46% 10.46%
Serbia Ba2 3.22% 4.57% 9.57%
Sharjah Ba1 2.68% 3.80% 8.80%
Sierra Leone NR 12.84% 18.21% 23.21%
Singapore Aaa 0.00% 0.00% 5.00%
Slovakia A2 0.91% 1.28% 6.28%
Slovenia A3 1.28% 1.82% 6.82%
Solomon Islands Caa1 8.02% 11.38% 16.38%
Somalia NR 12.84% 18.21% 23.21%
South Africa Ba2 3.22% 4.57% 9.57%
Spain Baa1 1.71% 2.43% 7.43%
Sri Lanka Ca 12.84% 18.21% 23.21%
St. Maarten Ba2 3.22% 4.57% 9.57%
St. Vincent & the Grenadines B3 6.95% 9.86% 14.86%
Sudan NR 17.50% 24.82% 29.82%
Suriname Caa3 10.70% 15.18% 20.18%
Swaziland B3 6.95% 9.86% 14.86%
Sweden Aaa 0.00% 0.00% 5.00%
Switzerland Aaa 0.00% 0.00% 5.00%
Syria NR 17.50% 24.82% 29.82%
Taiwan Aa3 0.64% 0.91% 5.91%
Tajikistan B3 6.95% 9.86% 14.86%
Tanzania B2 5.88% 8.35% 13.35%
Thailand Baa1 1.71% 2.43% 7.43%
Togo B3 6.95% 9.86% 14.86%
Trinidad and Tobago Ba2 3.22% 4.57% 9.57%
Tunisia Caa2 9.63% 13.66% 18.66%
Turkey B3 6.95% 9.86% 14.86%
Turks and Caicos Islands Baa1 1.71% 2.43% 7.43%
Uganda B2 5.88% 8.35% 13.35%
Ukraine Ca 12.84% 18.21% 23.21%
United Arab Emirates Aa2 0.53% 0.75% 5.75%
United Kingdom Aa3 0.64% 0.91% 5.91%
United States Aaa 0.00% 0.00% 5.00%
Uruguay Baa2 2.04% 2.89% 7.89%
Uzbekistan Ba3 3.85% 5.46% 10.46%
Venezuela C 17.50% 24.82% 29.82%
Vietnam Ba2 3.22% 4.57% 9.57%
Yemen, Republic NR 10.70% 15.18% 20.18%
Zambia Ca 12.84% 18.21% 23.21%
Zimbabwe NR 8.02% 11.38% 16.38%
 2023-07-14

Corporate Tax Rate

15.00%
15.00%
26.00%
18.98%
25.00%
35.00%
18.00%
25.00%
30.00%
24.00%
20.00%
0.00%
0.00%
32.50%
5.50%
18.00%
25.00%
27.18%
30.00%
0.00%
25.00%
10.00%
22.00%
34.00%
18.50%
10.00%
28.00%
20.00%
33.00%
25.00%
0.00%
0.00%
27.00%
25.00%
35.00%
30.00%
28.00%
28.43%
30.00%
25.00%
18.00%
27.18%
22.00%
12.50%
19.00%
22.00%
27.00%
25.00%
22.50%
30.00%
20.00%
30.00%
20.00%
20.00%
25.00%
30.00%
31.00%
15.00%
30.00%
25.00%
22.00%
25.00%
0.00%
29.15%
29.15%
18.64%
18.64%
25.00%
16.50%
9.00%
20.00%
30.00%
22.00%
20.23%
15.00%
12.50%
0.00%
23.00%
24.00%
25.00%
23.20%
0.00%
20.00%
20.00%
30.00%
25.00%
23.10%
15.00%
10.00%
22.81%
20.00%
17.00%
29.15%
20.00%
12.50%
15.00%
24.94%
22.81%
10.00%
20.00%
30.00%
24.00%
22.81%
22.81%
35.00%
15.00%
30.00%
12.00%
25.00%
15.00%
27.18%
31.00%
32.00%
25.00%
32.00%
25.80%
28.00%
30.00%
22.81%
30.00%
22.00%
15.00%
29.00%
25.00%
30.00%
10.00%
29.50%
25.00%
19.00%
21.00%
10.00%
0.00%
16.00%
20.00%
30.00%
20.00%
30.00%
15.00%
0.00%
30.00%
17.00%
21.00%
19.00%
30.00%
29.15%
27.00%
25.00%
24.00%
27.18%
27.18%
35.00%
36.00%
27.50%
20.60%
18.00%
28.00%
20.00%
18.00%
30.00%
20.00%
22.81%
30.00%
15.00%
23.00%
0.00%
30.00%
18.00%
0.00%
25.00%
25.00%
25.00%
15.00%
34.00%
20.00%
20.00%
35.00%
25.00%
Growth Rate
Accumulated
3 Year 5 Year Max
Average 38.6% 32.7% 24.8%
Standard Error 5.2% 2.8% 2.7%
CAGR 38.06% 32.16% 23.58%

FY16A FY17A FY18A FY19A

Revenue from contracts with customers 23,472 27,230 25,626 32,711
Revenue Growth 16.01% -5.89% 27.65%

Revenue Breakdown By Segment

Government and Justice
3 Year 5 Year Max
Average 227.6%
Standard Error 117.0%
CAGR 182.76%

Education and Work Pathways

3 Year 5 Year Max
Average 19.2% 16.0%
Standard Error 1.5% 1.2%
CAGR 19.11% 15.89%

Workforce Solutions
3 Year 5 Year Max
Average 16.9% 28.7%
Standard Error 1.5% 3.5%
CAGR 16.83% 27.80%

By [A$000] FY16A FY17A FY18A FY19A

Government and Justice 0 0
% growth
Education and Work Pathways 17,246 19,730
% growth 14.4%
Workforce Solutions 8,380 12,981
% growth 54.9%
Total Revenue 25,626 32,711
% growth 27.6%
By [%]
Government and Justice 0.0% 0.0%
Education and Work Pathways 67.3% 60.3%
Workforce Solutions 32.7% 39.7%
 Total Revenue 100% 100%

120,000

100,000

80,000

60,000

$k
40,000
45.7%
39.7%
20,000 32.7%

67.3% 60.3% 54.3%

0
FY18A FY19A FY20A

Education and Work Pathways

Government and Justice

Revenue Breakdown By Product Lines

Subscription, licence and hosting
3 Year 5 Year Max
Average 34.5% 30.5%
Standard Error 5.0% 2.5%
CAGR 33.95% 30.07%

Implementation, training, consultancy and other

3 Year 5 Year Max
Average 66.5% 47.3%
Standard Error 6.4% 6.0%
CAGR 65.81% 44.87%

By [A$000] FY16A FY17A FY18A FY19A

Subscription, licence and hosting 22,653 29,401
% growth 29.8%
Implementation, training, consultancy and other 2,973 3,310
% growth 11.3%
Total Revenue 25,626 32,711

By [%]
Subscription, licence and hosting 88% 90%
Implementation, training, consultancy and other 12% 10%
Total Revenue 100% 100%

120,000

100,000

80,000
 120,000

100,000

80,000

60,000

$k
40,000 11%
10%
12%
20,000 89%
90%
88%
0
FY18A FY19A FY20A

Subscription, licence and hos

Implementation, training, co
FY20A FY21A FY22A FY23A FY24E FY25E FY26E FY27E
39,254 50,027 78,284 103,306 128,934.90 160,922.01 200,844.72 250,671.74
20.00% 27.44% 56.48% 31.96% 24.8% 24.8% 24.8% 24.8%

120,000
103,306
100,000

80,000

60,000
$k

40,000
23,472
20,000

0
FY16A FY17A FY18A FY19A FY20A FY21A FY22A FY23A

FY20A FY21A FY22A FY23A FY24E FY25E FY26E FY27E

0 4,838 23,857 38,682 44,871 52,050 60,379 70,039
393.1% 62.1% 16% 16% 16% 16%
21,334 24,901 30,966 36,051 40,990 46,606 52,991 60,250
8.1% 16.7% 24.4% 16.4% 13.7% 13.7% 13.7% 13.7%
17,920 20,288 23,461 28,573 33,646 39,619 46,652 54,934
38.0% 13.2% 15.6% 21.8% 17.75% 17.75% 17.75% 17.75%
39,254 50,027 78,284 103,306 119,507 138,275 160,021 185,224
20.0% 27.4% 56.5% 32.0% 15.7% 15.7% 15.7% 15.7%

0.0% 9.7% 30.5% 37.4% Workforce Solw

54.3% 49.8% 39.6% 34.9% Software 19.3 68%
45.7% 40.6% 30.0% 27.7% Service 9.2 32%
 100% 100% 100% 100% 28.5

Revenue WA

37.4%

30.5%

9.7% 27.7%
30.0%
40.6%
45.7%
39.7%
32.7%
39.6% 34.9%
60.3% 54.3% 49.8%
67.3%

FY18A FY19A FY20A FY21A FY22A FY23A

Education and Work Pathways Workforce Solutions

Government and Justice

970

FY20A FY21A FY22A FY23A FY24E FY25E FY26E FY27E

35,092 43,297 65,647 84,333
19.4% 23.4% 51.6% 28.5%
4,162 6,730 12,637 18,973
25.7% 61.7% 87.8% 50.1%
39,254 50,027 78,284 103,306 0 0 0 0

89% 87% 84% 82%

11% 13% 16% 18%
100% 100% 100% 100%

18%
 18%

16%

13%
82%
11%
10% 84%
12% 87%
90% 89%
88%

FY18A FY19A FY20A FY21A FY22A FY23A

Subscription, licence and hosting

Implementation, training, consultancy and other
 FY28E
312,860.21
24.8%

𝑉_𝑇𝑉=(𝑉_𝐹𝑌28𝐸×(1+𝑔))/
(𝑘_𝑒−𝑔)→𝑔=(𝑉_𝑇𝑉×𝐾_𝑒−𝑉_𝐹𝑌28𝐸)/
(𝑉_𝑇𝑉+𝑉_𝐹𝑌28𝐸 )
FY28E Revenue Target CAGR Terminal Value Implied Terminal Growth
81,245 485,000 86,593
16% 66% 7% -9%
68,505 335,000 72,353
13.7% 56% 6% -12%
64,687 150,000 67,231
17.75% 39% 4% -26%
214,437 970,000 226,554
15.8% >>> Mid-teen growth achieved 56.5% 5.7% -13%

g
20.40%
12.20%
 17.8%

FY28E

0
)/
−𝑉_𝐹𝑌28𝐸)/
Assumptions
General Assumptions

Unit of Measurement [$000]

Fiscal year end 30-Jun

Valuation Date 2023-09-29

Tax Rate 30%

Margin Expansion 1.5%

Beta weighting 50%

ERP weighting 50%

Guide
External Numbers [###]
Black Calculation
Blue Assumption
Red Hard coded
Orange Input
Yellow box Note
Retrieved - Updateable [###]
Data Source Refinitiv