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0.42
Year
Period Analysed
Period Forecasted
Period Forecasted (accum)
Forecast Start Date
Forecast End Date

2010

2011

2012

2010
2020

Select Start
Select End

Income Statement
1.1 Assumptions
Revenue Growth
Upfront Fee revenue (%)
Trail Commission Revenue (%)
Operating Margin
D&A
Interest Revenue Rate
Administrative Expenses
Tax

FY10
0.00%
48.91%
51.09%
51.43%
0.00%
5.38%
0.00%
29.76%

FY11
66.57%
48.04%
51.96%
49.73%
66.01%
4.81%
41.91%
29.07%

FY12
54.51%
51.20%
48.80%
50.90%
71.79%
4.37%
78.36%
32.43%

1.2 Pro-forma
Revenue
Upfront fee revenue
Trail Commission Revenue
Total Revenue
Cost of Sales
Gross Profit
Other Income
Administrative Expenses
Share-based payment Expense
Initial Public Offering Costs
Relocation Costs
Acquisition Costs
EBITDA
D&A
EBIT
Interest Revenue
Interest Expense
EBT
Tax
Net Profit

FY10

FY11

FY12

Shares Outstanding
EPS
DPS
DPS Total
Retained Earnings
3

21,271
22,220
43,491
(22,369)
21,122
244
(11,835)
(274)

34,803
37,639
72,442
(36,026)
36,416
215
(16,795)
(658)

0
0
9,257
(1,428)
7,829
400
0
8,229
(2,449)
5,780

(1,592)
(217)
17,369
(3,185)
14,184
841
0
15,025
(4,368)
10,657

57,303
54,625
111,928
(56,970)
54,958
83
(29,955)
(557)
0
813
(1,260)
24,082
(4,054)
20,028
875
(1,770)
19,133
(6,204)
12,929

NA
0
0
0
5,780

NA
0
0
0
10,657

2,679
4.83
0
0
12,929

FY10
17.10%
33.26
0.00%
0.00%
117.83
0.00%

FY11
24.16%
25.75
126.82%
40.62%
96.45
4,007.00
86.24%

FY12
17.88%
50.02
31.10%
57.43%
136.12
44,835.00
23.63%

Balance Sheet
3.1 Assumptions
Cash (%) of Revenue
Days Receivable Trade (DRO)
Trail Receivables (% growth)
NC Trail Receivables (% growth)
Days Payable (DSO)
CAPEX
Provisions Growth (%)

3.2 Pro-forma
Assets
Current Assets
Cash and Cash Equivalents
Plug
Trade and other Receivables
Trail Commission Receivable
Other Assets
Total Current Assets
Non-Current Assets
Trade and Other Receivables
Trail Commission Receivable
Deffered Tax Assets
Other Assets
PPE & Intangibles
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other Payables
Provisions
Borrowings
Plug
Other
Total Current Liabilities
Non-Current Liabilities
Provisions
Net Deffered Tax Liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed Equity
Share Based Payment Reserve
Business Combination Reserve
Retained Earnings
Total Equity

FY11

FY12

7,438
0
3,963
8,923
346
20,670

17,499
0
5,111
20,239
1,053
43,902

20,012
0
15,338
26,534
1,160
63,044

29,327
5,011
0
4,825
34,338
55,008

41,241
8,062
0
5,647
49,303
93,205

64,925
0
0
46,428
64,925
127,969

7,221
1,838

9,520
3,423

9,059

12,943

21,246
4,232
35,000
0
313
60,791

267
11,965
12,232
21,291
33,717

183
19,383
19,566
32,509
60,696

2,858
17,742
20,600
81,391
46,578

20,096
1,169
5,571
11,706
38,542

36,582
1,827
5,571
22,363
66,343

49,759
2,384
5,571
35,292
93,006

59,833
59,833
0

98,852
98,852
0

174,397
174,397
0

Trade and other Receivables

Trail Commission Receivable
Less Payables
Less Provisions
NWC
NWC (Change)

FY10
3,963
8,923
(7,221)
(1,838)
3,827
0

FY11
5,111
20,239
(9,520)
(3,423)
12,407
8,580

FY12
15,338
26,534
(21,246)
(4,232)
16,394
3,987

EBIT x (1-T)
Add Depreciation
Less CAPEX
Less Change in NWC

FY10
5,499
1,428
0
0

FY11
10,060
3,185
(4,007)
(8,580)

FY12
13,534
4,054
(44,835)
(3,987)

Check
Assets
Liabilities & Equity
Difference
4

FY10

Net Working Capital

FCFF

FCFF
FCFF Growth
Terminal Value
Discounted FCFF
Discounted Terminal Value

6,927
0.00%
0
0
0

WACC
Terminal WACC
Terminal Growth

3.00%
7.00%
2.50%

PV of Forecast FCFF's
Terminal Value
Enterprise Value
Less: Net Debt
Equity Value
Current Shares Outstanding
Value per Share
6

163,694
923,701
1,087,395
38,780
1,126,175
2,679,486
0.42

WACC
6.1 Summary
Cost of Equity
Cost of Debt
Cost of Debt x (1-T)
D/V
E/V

7.96%
3.00%
2.10%
27.90%
50.51%

WACC
Terminal Wacc
7

658
-90.49%
0
0
0

3.00%
5.00%

Return on Equity
7.1 Method
DDM (Single)
DDM (Multi)
CAPM
7.2 DDM (Single)
Share Price (P0)
Assumed Growth Rate (g)
DIV0
DIV1

Implied Cost of Equity (re)

Value
0.00%
0.00%
7.96%

Weight
0.00%
0.00%
100.00%

NA

#VALUE!

7.3 DDM (Multi)

NA

Value

7.4 CAPM

Rf
Beta
Regression
Comparables
Bloomberg (Adj)

EMRP

4.03%
0.67
-0.99
0.81
0.25
5.93%

Weight

0.00%
75.00%
25.00%

(31,234)
-4843.30%
0
0
0

Relative to Bonds (1937 - 2010)

Fernandez

Professors
Analyst
Company
Cost of Equity

5.70%
6.03%
6.20%
5.40%
6.50%
7.96%

7.4.1 Regression
Beta

Value

7.4.2 Bloomberg
Adjusted
Raw

Value

7.4.3 Comparables
Lifenet Insurance
Wotif
Rea Group
Webjet
Moneysupermarket.com
Bitauto
Kakaku
Adslot
Health Insurance
eHealth

Levered Beta (Adjusted

TaxtoRate
ASX200)

-0.9908

0.2470
-0.1300

Carsales

50.00%
50.00%

D/E

0.18
0.40
0.98
1.15
0.57
0.25
0.42
2.37
0.78
0.72

35.64%
30.00%
30.00%
30.00%
21.00%
40.00%
35.64%
30.00%
40.00%
40.00%

0.00%
0.02%
0.00%
0.00%
6.44%
0.00%
0.02%
0.00%
0.00%
0.00%

1.14

30.00%

2.55%

Cost of Debt
8.1 Method
Credit Rating Method (BBB)
Implied Credit Rating (BBB-)
Interest-Bearing Liabilites Method
Altman's Z-Score

Value

Weight

Cost of Debt
8.2 Credit Rating Method
Risk Free Rate
Rating TBD
Cost of Debt

Value

8.3

Value
Risk Free Rate
Rating TBD
Cost of Debt

Revenue Modelling
Assumptions
Total Leads Growth (000's)
Conversion Effectiveness Increase
Average RPS growth (%)
Upfront Fee revenue (%)
Trail Commission Revenue (%)

FY10

0.00%
48.91%
51.09%

FY11
25.87%
0.00%
0.00%
48.04%
51.96%

FY12
54.03%
0.00%
0.00%
51.20%
48.80%

Revenue Derivations
Leads
Total Leads
Conversion Ratio (%)
Net product sales (000's)
Average RPS ($)
Total Revenue
Revenue Growth

FY10

FY11

FY12

1,519
3.62%
55
791
43,491

1,912
4.81%
92
787
72,442
66.57%

2,945
5.74%
169
662
111,928
54.51%

Revenue (Segmented b Type)

Upfront Fee revenue
Trail Commission Revenue
Total

FY10
21,271
22,220
43,491

FY11
34,803
37,639
72,442

FY12
57,303
54,625
111,928

Revenue (Segmented by Market)

Total Revenue
Health and Car Insurance
Household Utilities and Financial
Health and Car Insurance (%)
Household Utilities and Financial (%)

FY10
43,491
36,296
7,195
83%
17%

FY11
72,442
64,120
8,322
89%
11%

FY12
111,928
97,983
13,945
88%
12%

2013

2014

2015

2016

2017

2018

1
1

1
2

1
3

1
4

1
5

0.06436

FY13
5.46%
63.38%
36.62%
51.81%
11.09%
1.52%
-0.45%
26.37%

FY14F
6.44%
64.64%
35.36%
50.97%
11.09%
4.02%
0.00%
30.00%

FY15F
8.16%
65.94%
34.06%
50.85%
11.09%
3.68%
0.00%
30.00%

FY16F
9.48%
67.25%
32.75%
51.13%
11.09%
3.40%
0.00%
30.00%

FY17F
8.14%
68.60%
31.40%
51.19%
11.09%
3.16%
0.00%
30.00%

FY18F
7.91%
69.97%
30.03%
51.04%
11.09%
3.56%
0.00%
30.00%

FY13

FY14F

FY15F

FY16F

FY17F

FY18F

74,806
43,231
118,037
(61,155)
56,882
89
(29,820)
(668)
(1,479)
0
0
25,004
(5,150)
19,854
1,300
(2,998)
18,156
(4,787)
13,369

81,213
44,421
125,634
(64,033)
61,600
0
(29,820)
0
0
0
0
31,780
(5,067)
26,713
1,659
0
28,373
(8,512)
19,861

89,595
46,288
135,884
(69,099)
66,784
0
(29,820)
0
0
0
0
36,964
(5,082)
31,882
1,643

100,051
48,715
148,765
(76,067)
72,698
0
(29,820)
0
0
0
0
42,878
(5,095)
37,783
1,661

110,360
50,516
160,876
(82,354)
78,523
0
(29,820)
0
0
0
0
48,703
(5,106)
43,596
1,668

121,471
52,131
173,602
(88,599)
85,003
0
(29,820)
0
0
0
0
55,183
(5,117)
50,066
2,033

33,525
(10,058)
23,468

39,445
(11,833)
27,611

45,264
(13,579)
31,685

52,098
(15,630)
36,469

2,679
6.60
0
0
13,369

2,679
7.41
0
0
19,861

2,679
8.76
0
0
23,468

2,679
10.30
0
0
27,611

2,679
11.83
0
0
31,685

2,679
13.61
0
0
36,469

FY13
72.28%
57.80
24.99%
13.68%
120.57
4,401.00
6.92%

FY14F
32.85%
41.71
13.13%
13.13%
117.74
5,200.00
0.00%

FY15F
32.85%
43.82
12.61%
12.61%
117.74
5,200.00
0.00%

FY16F
32.85%
48.34
12.10%
12.10%
117.74
5,200.00
0.00%

FY17F
32.85%
47.92
11.62%
11.62%
117.74
5,200.00
0.00%

FY18F
32.85%
45.44
11.15%
11.15%
117.74
5,200.00
0.00%

FY13

FY14F

FY15F

FY16F

FY17F

FY18F

85,315
0
18,692
33,166
1,459
138,632

41,276
318
14,356
37,522
0
93,472

44,643
0
16,313
42,252
0
103,209

48,875
0
19,701
47,366
0
115,942

52,854
0
21,119
52,870
0
126,844

57,035
0
21,614
58,768
0
137,417

15,378
73,807
0
765
45,679
89,950
228,582

0
83,500
0
0
45,812
83,500
176,972

0
94,028
0
0
45,930
94,028
197,237

0
105,408
0
0
46,036
105,408
221,351

0
117,656
0
0
46,129
117,656
244,500

0
130,780
0
0
46,212
130,780
268,198

20,201
4,525
0
0
397
25,123

20,656
4,525
0
0
0
25,181

22,290
4,525
0
15,142
0
41,957

24,538
4,525
0
32,970
0
62,033

26,566
4,525
0
50,111
0
81,202

28,580
4,525
0
67,094
0
100,199

2,686
18,726
21,412
46,535
182,047

0
0
0
25,181
151,791

0
0
0
41,957
155,279

0
0
0
62,033
159,318

0
0
0
81,202
163,298

0
0
0
100,199
167,999

171,313
858
5,571
49,984
227,726

171,313
858
5,571
19,861
197,603

171,313
858
5,571
23,468
201,210

171,313
858
5,571
27,611
205,353

171,313
858
5,571
31,685
209,427

171,313
858
5,571
36,469
214,211

274,261
274,261
0

222,466
222,784
-318

243,167
228,025
15,142

267,387
234,416
32,970

290,629
240,518
50,111

314,410
247,316
67,094

FY13
18,692
33,166
(20,201)
(4,525)
27,132
10,738

FY14F
14,356
37,522
(20,656)
(4,525)
26,697
-435

FY15F
16,313
42,252
(22,290)
(4,525)
31,750
5,054

FY16F
19,701
47,366
(24,538)
(4,525)
38,004
6,254

FY17F
21,119
52,870
(26,566)
(4,525)
42,899
4,894

FY18F
21,614
58,768
(28,580)
(4,525)
47,277
4,378

FY13
14,619
5,150
(4,401)
(10,738)

FY14F
18,699
5,067
-5,200
435

FY15F
22,318
5,082
-5,200
-5,054

FY16F
26,448
5,095
-5,200
-6,254

FY17F
30,517
5,106
-5,200
-4,894

FY18F
35,046
5,117
-5,200
-4,378

4,630
-114.82%
0
0
0

19,002
310.38%
0
18,448
0

17,145
-9.77%
0
16,161
0

20,089
17.17%
0
18,385
0

25,529
27.08%
0
22,683
0

30,585
19.80%
0
26,383
0

Unlevered Beta Relevered Beta

0.18
0.40
0.98
1.15
0.55
0.25
0.42
2.37
0.78
0.72

0.18
0.40
0.98
1.15
0.55
0.25
0.42
2.37
0.78
0.72

1.12

1.12

FY13
12.67%
0.00%
0.00%
63.38%
36.62%

FY14F
18.00%
10.00%
-18.00%
64.64%
35.36%

Mean

Median
0.81

FY15F
16.00%
11.00%
-16.00%
65.94%
34.06%

0.72

FY16F
15.00%
12.00%
-15.00%
67.25%
32.75%

FY17F
13.00%
10.00%
-13.00%
68.60%
31.40%

FY18F
10.00%
9.00%
-10.00%
69.97%
30.03%

FY13

FY14F

FY15F

FY16F

FY17F

FY18F

3,318
6.06%
201
587
118,037
5.46%

3,915
6.66%
261
482
125,634
6.44%

4,542
7.40%
336
404
135,884
8.16%

5,223
8.28%
433
344
148,765
9.48%

5,902
9.11%
538
299
160,876
8.14%

6,492
9.93%
645
269
173,602
7.91%

FY13
74,806
43,231
118,037

FY14F
81,213
44,421
125,634

FY15F
89,595
46,288
135,884

FY16F
100,051
48,715
148,765

FY17F
110,360
50,516
160,876

FY18F
121,471
52,131
173,602

FY13
118,037
93,090
24,947
79%
21%

FY14F
125,634
95,312
30,322
76%
24%

FY15F
135,884
99,012
36,872
73%
27%

FY16F
148,765
103,935
44,830
70%
30%

FY17F
160,876
107,570
53,306
67%
33%

FY18F
173,602
110,871
62,731
64%
36%

Scenario Analysis
2019

2020

2021

2022

2023

1
6

1
7

0
0

0
0

0
0

FY19F
7.31%
71.37%
28.63%
51.05%
11.09%
3.45%
0.00%
30.00%

FY20F
7.00%
72.80%
27.20%
45.00%
11.09%
3.39%
0.00%
30.00%

FY21F
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

FY22F
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

FY23F
0.00% Revenue
0.00%
Bull
0.00%
Base
0.00%
Bear
0.00% OPEX
0.00%
Bull
0.00%
Base
0.00%
Bear

FY19F

FY20F

FY21F

FY22F

FY23F

132,956
53,334
186,290
(95,106)
91,184
0
(29,820)
0
0
0
0
61,364
(5,126)
56,238
2,111

145,108
54,222
199,330
(89,699)
109,632
0
(29,820)
0
0
0
0
79,812
(5,134)
74,677
2,221

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

58,349
(17,505)
40,844

76,899
(23,070)
53,829

0
0
0

0
0
0

0
0
0

2,679
15.24
0
0
40,844

2,679
20.09
0
0
53,829

0
0.00
0
0
0

0
0.00
0
0
0

0
0.00
0
0
0

FY19F
32.85%
46.38
10.71%
10.71%
117.74
5,200.00
0.00%

FY20F
32.85%
47.02
10.28%
10.28%
117.74
5,200.00
0.00%

FY21F
0.00%
0.00
0.00%
0.00%
0.00
0.00
0.00%

FY22F
0.00%
0.00
0.00%
0.00%
0.00
0.00
0.00%

FY23F
0.00%
0.00
0.00%
0.00%
0.00
0.00
0.00%

Income Statement

Balance Sheet
Trail Rec Growth
Bull
Base
Bear
Share Price Calcs
WACC
Bull
Base
Bear
Terminal WACC
Bull
Base
Bear

FY19F

FY20F

FY21F

FY22F

FY23F

61,204
0
23,671
65,061
0
149,935

65,488
0
25,677
71,749
0
162,914

0
0
0
0
0
0

0
0
0
0
0
0

0
0
0
0
0
0

0
144,785
0
0
46,286
144,785
294,720

0
159,669
0
0
46,352
159,669
322,583

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

30,679
4,525
0
87,216
0
122,420

28,935
4,525
0
103,904
0
137,364

0
0
0
0
0
0

0
0
0
0
0
0

0
0
0
0
0
0

0
0
0
122,420
172,300

0
0
0
137,364
185,219

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

171,313
858
5,571
40,844
218,586

171,313
858
5,571
53,829
231,571

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

341,007
253,791
87,216

368,935
265,031
103,904

0
0
0

0
0
0

0
0
0

FY19F
23,671
65,061
(30,679)
(4,525)
53,527
6,251

FY20F
25,677
71,749
(28,935)
(4,525)
63,966
10,439

FY21F

FY19F
39,366
5,126
-5,200
-6,251

FY20F
52,274
5,134
-5,200
-10,439

FY21F

FY22F
0
0
0
0
0
0

FY23F
0
0
0
0
0
0

FY22F
0
0
0
0

0
0
0
0
0
0

FY23F
0
0
0
0

0
0
0
0

1000%

1000%

33,042
8.03%
0
27,672
0

41,769
26.41%
951,412
33,962
923,701

0
0.00%
0
0
0

0
0.00%
0
0
0

0
0.00%
0
0
0

0%
1
-1000%
-2000%
-3000%
-4000%
-5000%
-6000%

FY19F
8.00%
8.00%
-8.00%
71.37%
28.63%

FY20F
7.00%
7.00%
-7.00%
72.80%
27.20%

FY21F
6.00%
6.00%
-6.00%
74.25%
25.75%

FY22F
5.00%
5.00%
-5.00%
75.74%
24.26%

FY23F
5.00%
5.00%
-5.00%
77.25%
22.75%

FY19F

FY20F

FY21F

FY22F

FY23F

7,011
10.73%
752
248
186,290
7.31%

7,502
11.48%
861
230
198,353
6.48%

7,952
12.17%
968
217
209,498
5.62%

8,350
12.78%
1,067
206
219,423
4.74%

8,768
13.41%
1,176
195
229,818
4.74%

FY19F
132,956
53,334
186,290

FY20F
144,397
53,956
198,353

FY21F
155,560
53,937
209,498

FY22F
166,189
53,234
219,423

FY23F
177,543
52,275
229,818

FY19F
186,290
113,385
72,904
61%
39%

FY20F
198,353
114,777
83,576
58%
42%

FY21F
209,498
114,941
94,557
55%
45%

FY22F
219,423
113,804
105,619
52%
48%

FY23F
229,818
112,301
117,517
49%
51%

Scenario Analysis

Income Statement
7.00%
7.00%
5.00%
3.00%
45.00%
45.00%
50.00%
55.00%
Balance Sheet
10.28%
12.00%
10.28%
8.00%
Share Price Calcs
3.00%
3.00%
5.00%
7.00%
7.00%
3.00%
5.00%
7.00%

On

Chart Title

10

11

Revenue >>

iSelect
Key Operating Metrics
Assumptions
Total Leads Growth (000's)
Conversion Effectiveness Increase
Average RPS growth (%)

FY10

Revenue Derivations
Leads
Total Leads
Conversion Ratio (%)
Net product sales (000's)
Average RPS ($)
Total Revenue
Revenue Growth

FY10

Revenue (Segmented by Market)

Total Revenue
Health and Car Insurance
Household Utilities and Financial
Health and Car Insurance (%)
Household Utilities and Financial (%)

FY10

Revenue (Segmented b Type)

Upfront Fee revenue
Trail Commission Revenue
Total
Upfront Fee revenue (%)
Trail Commission Revenue (%)

FY10

FY11
25.87%
0.00%
0.00%

0.00%
FY11
1,519
3.62%
55
791
43,491

1,912
4.81%
92
787
72,442
66.57%
FY11

43,491
36,296
7,195
83%
17%

72,442
64,120
8,322
89%
11%
FY11

Other Segment
Upfront Fee revenue
Upfront Fee revenue
Click-Through Revenue
Other Business Revenue
Total
Trail Commission Revenue
Trail Commission Revenue - Current Period
Trail Commission Revenue - Expected Cash flow adjustemts to historical trail receivable
Trail Commission Revenue - Interest Income Relating to the unwind of discount on historical trail receivable
Total
Total

FY12

FY13
54.03%
0.00%
0.00%

FY12

FY14
12.67%
0.00%
0.00%

FY13
2,945
5.74%
169
662
111,928
54.51%

FY12

FY14
3,318
6.06%
201
587
118,037
5.46%

FY13
111,928
97,983
13,945
88%
12%

FY12

3,650
7.15%
261
529
137,891
16.82%

118,037
93,090
24,947
79%
21%
FY13

52,602
2,034
2,667
57,303

63,960
2,843
8,003
74,806

44,106
3,081 7,438
54,625

36,212
687
7,706
43,231
118,037

4,015
8.36%
336
476
159,719
15.83%

137,891
104,611
33,280
76%
24%

4,416
9.70%
428
428
183,421
14.84%
FY16

159,719
116,379
43,340
73%
27%
FY15

90,146
47,745
137,891
65%
35%

10.00%
16.00%
-10.00%
FY16

FY15

FY14
74,806
43,231
118,037
63%
37%

FY16
10.00%
17.00%
-10.00%

FY15

FY14

57,303
54,625
111,928
51%
49%

111,928

FY15
10.00%
18.00%
-10.00%

183,421
128,147
55,274
70%
30%
FY16

107,611
52,108
159,719
67%
33%

127,249
56,173
183,421
69%
31%

FY17

FY18
10.00%
15.00%
-10.00%

FY17

10.00%
15.00%
-10.00%
FY18

4,858
11.16%
542
385
208,825
13.85%
FY17

5,344
12.83%
686
347
237,747
13.85%
FY18

208,825
139,631
69,194
67%
33%
FY17

237,747
151,838
85,910
64%
36%
FY18

149,049
59,776
208,825
71%
29%

174,447
63,300
237,747
73%
27%

Proportion of people with and without private health insurance, 2001 to 2011-12
2001 2004-05 2007-08 2011-12
With private health insurance
51
50.7
52.7
57.1
Without private health insurance
49
49.3
47.3
42.9

Chart Title
60
50
40
30
20
10
0
2001

2004-05

With private health insurance

2007-08

2011-12

Without private health insurance

Month
Jun-1981
Sep-1981
Dec-1981
Mar-1982
Jun-1982
Sep-1982
Dec-1982
Mar-1983
Jun-1983
Sep-1983
Dec-1983
Mar-1984
Jun-1984
Sep-1984
Dec-1984
Mar-1985
Jun-1985
Sep-1985
Dec-1985
Mar-1986
Jun-1986
Sep-1986
Dec-1986
Mar-1987
Jun-1987
Sep-1987
Dec-1987
Mar-1988
Jun-1988
Sep-1988
Dec-1988
Mar-1989
Jun-1989
Sep-1989
Dec-1989
Mar-1990
Jun-1990
Sep-1990
Dec-1990
Mar-1991
Jun-1991
Sep-1991
Dec-1991
Mar-1992
Jun-1992
Sep-1992
Dec-1992
Mar-1993
Jun-1993
Sep-1993
Dec-1993
Mar-1994
Jun-1994
Sep-1994
Dec-1994
Mar-1995
Jun-1995
Sep-1995

Pop of Australia
14,923,260
14,988,677
15,054,117
15,121,698
15,184,247
15,239,278
15,288,891
15,346,242
15,393,472
15,439,005
15,483,496
15,531,541
15,579,391
15,628,548
15,677,282
15,736,665
15,788,312
15,839,702
15,900,566
15,961,498
16,018,350
16,075,041
16,138,769
16,204,041
16,263,874
16,328,866
16,394,641
16,471,767
16,532,164
16,612,639
16,687,082
16,764,042
16,814,416
16,872,038
16,936,723
17,005,636
17,065,128
17,121,132
17,169,768
17,237,424
17,284,036
17,338,859
17,378,981
17,441,287
17,478,635
17,523,303
17,557,133
17,609,552
17,634,808
17,683,713
17,719,090
17,772,078
17,805,468
17,859,257
17,893,433
17,951,550
18,004,882
18,062,176

Dec-1995
Mar-1996
Jun-1996
Sep-1996
Dec-1996
Mar-1997
Jun-1997
Sep-1997
Dec-1997
Mar-1998
Jun-1998
Sep-1998
Dec-1998
Mar-1999
Jun-1999
Sep-1999
Dec-1999
Mar-2000
Jun-2000
Sep-2000
Dec-2000
Mar-2001
Jun-2001
Sep-2001
Dec-2001
Mar-2002
Jun-2002
Sep-2002
Dec-2002
Mar-2003
Jun-2003
Sep-2003
Dec-2003
Mar-2004
Jun-2004
Sep-2004
Dec-2004
Mar-2005
Jun-2005
Sep-2005
Dec-2005
Mar-2006
Jun-2006
Sep-2006
Dec-2006
Mar-2007
Jun-2007
Sep-2007
Dec-2007
Mar-2008
Jun-2008
Sep-2008
Dec-2008
Mar-2009
Jun-2009
Sep-2009
Dec-2009
Mar-2010
Jun-2010

18,119,616
18,175,986
18,224,767
18,281,323
18,330,079
18,388,710
18,423,037
18,468,718
18,510,004
18,572,416
18,607,584
18,658,381
18,705,620
18,770,525
18,812,264
18,867,680
18,919,210
18,986,711
19,028,802
19,086,040
19,141,036
19,225,181
19,274,701
19,329,107
19,386,461
19,453,350
19,495,210
19,548,871
19,605,441
19,676,628
19,720,737
19,773,429
19,827,155
19,894,105
19,932,722
19,989,677
20,046,003
20,126,553
20,176,844
20,244,727
20,311,543
20,398,132
20,450,966
20,542,282
20,627,547
20,742,817
20,827,622
20,924,160
21,016,121
21,148,928
21,249,199
21,366,049
21,475,625
21,601,676
21,691,653
21,788,088
21,865,623
21,964,097
22,031,750

Sep-2010
Dec-2010
Mar-2011
Jun-2011
Sep-2011
Dec-2011
Mar-2012
Jun-2012
Sep-2012
Dec-2012
Mar-2013
Jun-2013
Sep-2013

22,104,402
22,172,469
22,268,758
22,340,024
22,432,039
22,520,298
22,637,127
22,728,254
22,830,391
22,924,800
23,039,549
23,135,281
23,235,837

WACC >>

Cost of Equity Capital

1.

Cost of Capital

Method

Value

Weight

DDM (Single)

0%

DDM (Multiple)

0%

7.96%

100%

CAPM

Applied Cost of Equity

2.

7.96%

CAPM

CAPM
Rf (10 yr Aus Govt Bond (April 2014))
Beta
Regression
Comparables
Bloomberg
EMRP
Bonds (1937-2013)
Fernandez (2010)
Professors

Value
4.03%
0.670
(0.991)
0.810
0.250
5.87%
5.70%
6.03%
6.20%

Weight

0%
75%
25%
50%
50%

Analyst
Company
Cost of Equity
2.1

5.40%
6.50%
7.96%

Comparables

Comparable Firm
Levered Beta (Adjusted to ASX200)
Tax Rate
Lifenet Insurance
0.18
35.64%
Wotif
0.40
30%
Rea Group
0.98
30%
Webjet
1.15
30%
Moneysupermarket.com
0.57
21%
Bitauto
0.25
40%
Kakaku
0.42
35.64%
Adslot
2.37
30%
Health Insurance
0.78
40%
eHealth
0.72
40%
Carsales
1.14
30%
2.2.

Regression

Regression
Data Start
Data End
Derived Rf
Derived Beta
D/E
Beta (Unlevered)
Beta (levered)

2.3

2013
2014
NA
-0.991
NA
-0.991
-0.991

Fama French 3 Factor

Factor
Rm - Rf
SMB
HML
Cost of Equity

http://mba.tuck.dartmouth.edu/pages/faculty/k

Value

Commentary
Our pro-forma forecasts indicate that no divdends are to be paid over the relevant
forecasts horizon. As such, utilising the DDM methodology in derivation of the cost of
equity capital is inapplicable under these assumptions.
The DDM multiple period version has been exluded from consideration as per the
above rationale.
The CAPM provides a relatively weak indicator of the implied cost of equity for ISU. In
terms of deriving an accurate beta, our analysis has been hindered by a lack of data
owing to ISU's recent market debut (June 2013). The data comprises 12 observations
available for regression analysis, which yields a beta of -0.991. Harrell (2001) states
that the absolute minimum number of data points required for a robust regression is
around 20, otherwise there is risk of manifesting spurious and/or inaccurate results as
is evidenced in the beta attained. On this basis we have omitted the regressionderived ISU beta so as to avoid erroneous estimation of the cost of equity. With
respect to comparables, the analysis canvasses similar firms operating both locally
and internationally to control for industry specific factors across similar countries
(however adjusted to their ASX equivalence), thus providing a sound indicator of both
Australian-specific and industry-common responsiveness to market movements. With
respect to the beta obtained via Bloomberg, the same problems that plague the
regression we have undertaken are assumed to be inherent to some extent in the beta
gleaned from Bloomberg and we have accordingly given this metric less weighting
relative to the aforementioned comparable beta. In terms of the applied EMRP, we
have adopted an average of the historical EMRP using 10-year Government bonds for
the time period 1937-2013 (so as to canvass multiple business cycles and diminish the
effect of crises and booms) and the Australian market mean as postulated in
As per the above commentary, the applied cost of equity has a heavy CAPM focus as
a function of the inability to apply other methodologies. While the CAPM is generally a
robust measure, there are problems inherent in using it as the sole methodology in
attaining the cost of equity. Specifically, the risks of inaccuracies are concentrated both
in terms of the CAPM's well-known deficits and in terms of erroneous or inferior inputs.
The implication is that any model shortfalls or bias associated with the CAPM are
directly translated through to the applied cost of equity, and additionally any input/data
errors are unable to be mitigated or diminished in their effect by combining competing

D/E

Unlevered Beta
0.00%
0.02%
0.00%
0.00%
6.44%
0.00%
0.02%
0.00%
0.00%
0.00%
2.55%

http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/Data_Library/variable_definitions.html

0.18
0.40
0.98
1.15
0.55
0.25
0.42
2.37
0.78
0.72
1.12

Fernandez. P, Aguirreamalloa. J and Corres. L, 2011, 'Market Risk Premium Used in 56 Countries in 2011: A Survey with 6014 Ans
HARRELL
http://opac.library.usyd.edu.au/record=2467970

Harrell, F. 2001, Regression modeling strategies: with applications to linear models, logistic regression, and survival analysis, Sprin

Corporate Tax Rate Source: http://www.kpmg.com/global/en/services/tax/tax-tools-and-resources/pages/corporate-tax-rates-table.a

KMPG Corporate tax rates table 2014, KPMG, Switzerland, viewed 26 May 2014, <http://www.kpmg.com/global/en/services/tax/tax

Relevered Beta
0.18
0.40
0.98
1.15
0.55
0.25
0.42
2.37
0.78
0.72
1.12

Mean

Median
0.81

0.72

in 56 Countries in 2011: A Survey with 6014 Answers', Working Paper WP-920, May 2011.

s, logistic regression, and survival analysis, Springer, New York

-and-resources/pages/corporate-tax-rates-table.aspx
<http://www.kpmg.com/global/en/services/tax/tax-tools-and-resources/pages/corporate-tax-rates-table.aspx>

Ticker
NAME
Market Cap AUD Total Debt AUD Current EV AUD
ISU AU Equity Iselect
$287,000,000
$0
$203,000,000
7157 JP Equity Lifenet Insurance
$185,800,000
$0
$180,900,000
WTF AU Equity Wotif
$493,350,000
$100,000
$393,700,000
REA AU Equity Rea Group
$5,720,000,000
$0
$5,443,700,000
WEB AU Equity Webjet
$178,650,000
$0
$135,600,000
MONY LN Equity Moneysupermarket.com $1,718,600,000 $110,600,000 $1,756,900,000
BITA US Equity Bitauto
$1,948,100,000
$0
$1,743,000,000
2371 JP Equity Kakaku
$4,106,000,000
$800,000
$3,848,500,000
ADJ AU Equity Adslot
$108,600,000
$0
$100,300,000
HIIQ US Equity Health Insurance
$150,900,000
$0
$150,400,000
EHTH US Equity eHealth
$733,500,000
$0
$627,600,000
CRZ AU Equity Carsales
$2,490,000,000 $63,500,000 $2,556,900,000
MEAN
$1,510,041,667 $14,583,333 $1,428,375,000
MEDIAN
$613,425,000
$0
$510,650,000

Adjusted Beta to Domestic MarketRaw Beta to Domestic MarketAdjusted Beta to ASX 200
0.25

-0.13

0.25

0.53
0.40
0.98
1.15
0.79
1.25
0.67
2.37
0.59
0.96
1.14

0.29
0.11
0.96
1.23
0.68
1.37
0.50
3.06
0.39
0.94
1.21

0.18
0.40
0.98
1.15
0.57
0.25
0.42
2.37
0.78
0.72
1.14

0.92
0.87

0.88
0.81

0.77
0.64

Raw Beta to ASX 200LAST PRICE (domestic currency)LAST EPS (domestic) PE (TTM) Forward PE (1 year)
-0.13

$1.10

$0.07

15.7x

15.8x

-0.23
0.11
0.96
1.23
0.36
-0.12
0.13
3.06
0.67
0.57
1.21

421.00
$2.40
$43.50
$2.28
1.73
41.47
1,705.00
$0.11
$10.15
$35.62
$10.59

-52.11
$0.24
$0.98
$0.13
0.06
0.98
40.46
-$0.01
$0.09
-$0.12
$0.38

NA
10.0x
44.4x
17.5x
28.8x
42.3x
42.1x
NA
112.8x
NA
27.9x

NA
11.3x
37.6x
11.4x
14.8x
26.7x
32.3x
NA
30.3x
352.7x
26.0x

-0.7375
0.11

38.0x
28.8x

55.9x
26.3x

0.65
0.47

PEG 1 year EV/EBITDA (1-yr forward)Operating MarginEBITDA Margin Total Debt/Total Equity
NA

NA

17.65%

NA

0.00%

NA
NA
1.4x
NA
1.9x
0.4x
1.0x
NA
0.4x
4.8x
1.6x

NA
5.6x
24.0x
5.6x
11.0x
20.0x
18.0x
NA
13.5x
38.2x
18.3x

-0.38%
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

NA
50.8%
50.2%
22.0%
33.5%
25.4%
51.3%
-126.0%
0.30%
1.9%
58.2%

0.00%

1.6x
1.36

17.1x
18.0x

8.64%
8.64%

16.76%
29.45%

0.02%
0.00%
0.00%

6.44%
0.00%

0.02%
0.00%
0.00%
0.00%

2.55%
0.75%
0.00%

otal Debt/Total Equity

Index
1
2
3
4
5
6
7
8
9
10
11
12

Date

ISU
28/06/2013
31/07/2013
30/08/2013
30/09/2013
31/10/2013
29/11/2013
31/12/2013
31/01/2014
28/02/2014
31/03/2014
30/04/2014
20/05/2014

Stats
Beta
Covariance
Variance
Beta 2

XJO
1.70
1.60
1.42
1.26
1.31
1.22
1.45
1.39
1.09
1.14
1.13
1.08

-0.9908
-0.0006
0.0006
-0.9908

4802.60
5052.00
5135.00
5218.90
5425.50
5320.10
5352.20
5190.00
5404.80
5394.80
5489.10
5420.40

100.00
80.00
60.00
40.00
20.00
0.00
-20.00
-40.00
-60.00
-80.00

10Y

ISU Return
0.0030
0.0031
0.0032
0.0033
0.0033
0.0034
0.0035
0.0035
0.0034
0.0034
0.0034

XJO Return
0.0000
-0.0588
-0.1125
-0.1127
0.0397
-0.0687
0.1844
-0.0415
-0.2166
0.0507
-0.0132

0.0000
0.0519
0.0164
0.0163
0.0396
-0.0194
0.0060
-0.0303
0.0414
-0.0019
0.0175

Return Relative

ISU Excess Return Relative

XJO Excess Return Relative

ISU Excess Return

XJO Excess Return

-0.0030
-0.0619
-0.1157
-0.1160
0.0364
-0.0721
0.1809
-0.0450
-0.2200
0.0473
-0.0165

Date Return
-0.0030
0.0488
0.0132
0.0130
0.0363
-0.0229
0.0025
-0.0338
0.0380
-0.0053
0.0141

0.0000
0.0519
0.0164
0.0163
0.0396
-0.0194
0.0060
-0.0303
0.0414
-0.0019
0.0175

1.40
1.20
1.00
0.80
0.60
8

10

11

0.40
0.20
0.00
1

Excess Return Relative

ISU Relative

XJO Relative
1.00
0.94
0.84
0.74
0.77
0.72
0.85
0.81
0.64
0.67
0.66
0.63

1.00
1.05
1.07
1.09
1.13
1.11
1.11
1.08
1.13
1.12
1.14
1.13

ISU Excess Return Relative

1.00
21.00
39.23
39.32
-12.33
24.45
-61.32
15.26
74.59
-16.02
5.60

Price Relative

6
ISU Relative

7
XJO Relative

XJO Excess Return Relative ISO - rf

1.00
-16.54
-4.48
-4.41
-12.30
7.75
-0.85
11.45
-12.87
1.79
-4.79

10

11

12

XJO - rf
1.70
1.60
1.42
1.26
1.31
1.22
1.44
1.38
1.08
1.14
1.12

4802.60
5052.00
5135.00
5218.90
5425.50
5320.10
5352.20
5190.00
5404.80
5394.80
5489.10

Volume
42,777,057
11,005,143
11,556,739
24,064,041
17,780,527
8,808,006
17,029,721
2,704,280
25,980,473
9,628,765
10,189,485
2,064,955

Market Capitalisation($m)
Shares on Issue
440
259,064,894
415
259,064,894
369
259,964,894
328
259,964,894
341
260,664,894
318
260,664,894
377
260,889,894
361
260,889,894
283
260,889,894
297
260,889,894
294
260,889,894
280
260,889,894

Comparables >>

s >>

Ticker
ISU AU Equity
7157 JP Equity
WTF AU Equity
REA AU Equity
WEB AU Equity
MONY LN Equity
BITA US Equity
2371 JP Equity
ADJ AU Equity
HIIQ US Equity
EHTH US Equity
CRZ AU Equity
MEAN
MEDIAN

NAME
Iselect
Lifenet Insurance
Wotif
Rea Group
Webjet
Moneysupermarket.com
Bitauto
Kakaku
Adslot
Health Insurance
eHealth
Carsales

Market Cap AUD

Total Debt AUD

$287,000,000
$185,800,000
$493,350,000
$5,720,000,000
$178,650,000
$1,718,600,000
$1,948,100,000
$4,106,000,000
$108,600,000
$150,900,000
$733,500,000
$2,490,000,000

$0
$0
$100,000
$0
$0
$110,600,000
$0
$800,000
$0
$0
$0
$63,500,000

$1,510,041,667
$613,425,000

$14,583,333
$0

Current EV AUD

Adjusted Beta to Domestic Market

Raw Beta to Domestic Market

$203,000,000
$180,900,000
$393,700,000
$5,443,700,000
$135,600,000
$1,756,900,000
$1,743,000,000
$3,848,500,000
$100,300,000
$150,400,000
$627,600,000
$2,556,900,000

0.25
0.53
0.40
0.98
1.15
0.79
1.25
0.67
2.37
0.59
0.96
1.14

-0.13
0.29
0.11
0.96
1.23
0.68
1.37
0.50
3.06
0.39
0.94
1.21

$1,428,375,000
$510,650,000

0.92
0.87

0.88
0.81

Adjusted Beta to ASX 200

Raw Beta to ASX 200

LAST PRICE (domestic currency)

0.25
0.18
0.40
0.98
1.15
0.57
0.25
0.42
2.37
0.78
0.72
1.14

-0.13
-0.23
0.11
0.96
1.23
0.36
-0.12
0.13
3.06
0.67
0.57
1.21

$1.10
421.00
$2.40
$43.50
$2.28
1.73
41.47
1,705.00
$0.11
$10.15
$35.62
$10.59

0.77
0.64

0.65
0.47

LAST EPS (domestic)

PE (TTM) Forward PE (1 year) PEG 1 year EV/EBITDA (1-yr forward)

$0.07
-52.11
$0.24
$0.98
$0.13
0.06
0.98
40.46
-$0.01
$0.09
-$0.12
$0.38

15.7x
NA
10.0x
44.4x
17.5x
28.8x
42.3x
42.1x
NA
112.8x
NA
27.9x

15.8x
NA
11.3x
37.6x
11.4x
14.8x
26.7x
32.3x
NA
30.3x
352.7x
26.0x

NA
NA
NA
1.4x
NA
1.9x
0.4x
1.0x
NA
0.4x
4.8x
1.6x

NA
NA
5.6x
24.0x
5.6x
11.0x
20.0x
18.0x
NA
13.5x
38.2x
18.3x

-0.7375
0.11

38.0x
28.8x

55.9x
26.3x

1.6x
1.36

17.1x
18.0x

Operating Margin

EBITDA Margin

17.65%
-0.38%
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA

NA
NA
50.8%
50.2%
22.0%
33.5%
25.4%
51.3%
-126.0%
0.30%
1.9%
58.2%

8.64%
8.64%

16.76%
29.45%

Total Debt/Total Equity

0.00%
0.00%

0.02%
0.00%
0.00%

6.44%
0.00%

0.02%
0.00%
0.00%
0.00%

2.55%
0.75%
0.00%

Ticker
ISU AU Equity
7157 JP Equity
WTF AU Equity
REA AU Equity
WEB AU Equity
MONY LN Equity
BITA US Equity
2371 JP Equity
ADJ AU Equity
HIIQ US Equity
EHTH US Equity
CRZ AU Equity

NAME
Iselect
Lifenet Insurance
Wotif
Rea Group
Webjet
Moneysupermarket.com
Bitauto
Kakaku
Adslot
Health Insurance
eHealth
Carsales

Currency
AUD
YEN
AUD
AUD
AUD
GBP
CNY
YEN
AUD
USD
USD
AUD

Market Cap (Domestic Currency)

287,000,000
17,760,000,000
493,350,000
5,720,000,000
178,650,000
942,690,000
11,225,700,000
386,628,000,000
108,600,000
139,430,000
677,590,000
2,490,000,000

Total Debt (domestic)

$
$
$
$
$
$
$
$
$
$
$
$

100,000.00
59,600,000.00
100,000,000.00
63,500,000.00

Adjusted Beta

Raw Beta

0.2470
0.5270
0.4040
0.9760
1.1510
0.7850
1.2470
0.6670
2.3720
0.5930
0.9610
1.1380

-0.1300
0.2910
0.1070
0.9640
1.2260
0.6780
1.3700
0.5010
3.0590
0.3889
0.9420
1.2070

LAST PRICE (domestic currency)

1.1
421
2.4
43.5
2.28
1.73
41.47
1705
0.11
10.15
35.62
10.59

LAST EPS (domestic)

0.07
-52.11
0.24
0.98
0.13
0.06
0.98
40.46
-0.01
0.09
-0.12
0.38

PE (TTM) Forward PE
15.7x
NA
10.0x
44.4x
17.5x
28.8x
42.3x
42.1x
NA
112.8x
NA
27.9x

15.8x
NA
11.3x
37.6x
11.4x
14.8x
26.7x
32.3x
NA
30.3x
352.7x
26.0x

PEG 1 year
NA
NA
NA
1.4x
NA
1.9x
0.4x
1.0x
NA
0.4x
4.8x
1.6x

Current EV (Domestic Currency)

$
$
$
$
$
$
$
$
$
$
$
$

203,000,000.00
17,000,000,000.00
393,700,000.00
5,443,700,000.00
135,600,000.00
963,300,000.00
10,118,000,000.00
362,000,000,000.00
100,300,000.00
138,980,000.00
579,400,000.00
2,556,900,000.00

EV/EBITDA (1-yr forward)

NA
NA
5.6x
24.0x
5.6x
11.0x
20.0x
18.0x
NA
13.5x
38.2x
18.3x

Operating Margin
17.65
-0.38
50.8 (note: EBITDA)
50.2(note: EBITDA)
22.0 (note:EBITDA)
33.5(note:EBITDA)
25.4 (note: EBITDA)
51.30 (note: EBITDA)
-120.6(note:EBTIDA)
0.3(note: EBITDA)
1.9(note:EBITDA)
58.2(note:EBITDA)

Total Debt/Total Equity

0.00%
0.00%
0.02%
0.00%
0.00%
6.32%
0.00%
0.03%
0.00%
0.00%
0.00%
2.55%

Company

7157 JP Equity

WTF AU Equity

REA AU Equity

WEB AU Equity

MONY LN Equity

BITA US Equity

Description

Lifenet Insurance Company is a Japan-based company principally

engaged in the life insurance business. The Company's main business consists of the underwriting of insura
four types of insurance, including mortality life insurance, lifetime health insurance, regular medical insurance
insurance products through direct sales primarily over the Internet.

Wotif.com Holdings Limited is engaged in the provision of online travel booking services.
The Companys brands include Wotif.com, lastminute.com.au, travel.com.au, Asia Web Direct, LateStays.co
forefront of online travel. With an enviable accommodation range in Australia and New Zealand, Wotif.com s
hotel-theatre packages. Asia Web Direct provides multi-lingual content, inspirational images, guest reviews a
accommodation deals and is perfect for quick, simple and straightforward bookings. Customers can browse
Korean and Russian. In December 2013, Wotif.com Holdings Ltds wholly owned subsidiary Wotif.com Pty c
Terrace, Milton.

REA Group Limited is engaged in the real estate online advertising and related services.
Its online advertising services include online advertising of residential properties for sale and rent; online adv
provision of online display advertising space for advertisers in various industries; provision of Website develo
design services; provision of property market related information to customers and consumers including pub
services. The Companys residential and commercial property Websites are realestate.com.au and realcomm
development and display media markets. In January 2014, REA Group Limited acquired 1Form Online Pty L

Webjet Limited is engaged in the provision of online travel booking services.

The Companys segment includes: Business to Consumer Travel (B2C Travel) and Business to Business Tr
combine and book the domestic and international travel flight deals, hotel accommodation, holiday package
portfolio includes flights, hotels, holiday packages, car hire, travel insurance, flybuys, domestic flights and Ne
Webjet Marketing Pty Ltd, Webjet Operations (Australia) Pty Ltd, Zuji Pty Ltd, PlanitonEarth Pty Ltd, Webjet
Webjet Hotels NZ Pty Ltd and Lots of Hotels Limited, among others.

Moneysupermarket.com Group PLC is a holding company.

The principal activity of the Company is the introduction of business to financial, insurance, travel, home serv
Websites. The Company operates in five segments: Money, which help its customers search for the right de
needs amongst others; Insurance, which includes motor, home, life and travel insurance amongst others; Ho
for their needs from 18 energy providers; Travel, which allows the customers to find everything from package
MoneySavingExpert.com Website offers free online content, which MoneySavingExpert.com has researched
and vouchers, utilities and phones, banking and saving, travel and motoring, insurance, mortgages and hom

Bitauto Holdings Limited (Bitauto) is a provider of Internet content and marketing services.
The Companys bitauto.com and taoche.com websites provide consumers with up-to-date new and used aut
consumer feedback. Through its vertical plus portal model, the Company also distributes its dealer customer
526 partner websites as of December 31, 2012, including portals operated by Tencent, Netease and social n
operates in four segments: Our bitauto.com advertising business, Our EP platform business, Our taoche.com

Kakaku.com, Inc. is mainly engaged in the operation of electronic commerce (EC) businesses.

2371 JP Equity

The Company has two business segments. The Internet Media segment is engaged in the provision of price
services, discount hotels and last minute hotels reservation, newly built condominiums and rental properties
operation of Websites. The segment also generated revenue from the sale of advertising spaces. The Finan
services for foreign exchange margin trading, as well as insurance agency services. On March 31, 2014, the
based company Time Design through private placement.

ADJ AU Equity

HIIQ US Equity

EHTH US Equity

CRZ AU EquitY

Adslot Ltd, formerly Webfirm Group Limited, is an Australia-based Internet technology and marketing compa
The Company operates in two divisions: the Adslot division and the Webfirm division. The Adslot division allo
directly to advertisers via a self-serve channel, increasing yield and significantly reducing sales and administr
services including search engine optimization, search engine marketing [paid search advertising], social med
During the fiscal year ended June 30, 2012, the work also went into developing two new products: Adslot Dir
in San Francisco to facilitate its entry into that market with its product suite.

Health Insurance Innovations, Inc. is a developer and administrator of Web-based individual health insuranc
and ancillary products. The Companys Web-based technology platform allows for mass distribution of and o
offerings. The health insurance products the Company develops are underwritten by insurance carrier compa
reimbursement risk. The Companys technology platform uses abbreviated online applications, some with he
reject decision on applications for all products that the Company offer. In March 2013, it announced the purc
certain other assets. In July 2013, the Company acquired Secured Health and Life.

eHealth, Inc. (eHealth) offers Internet-based health insurance agency services for individuals, families and sm
licensing and Internet advertising services.
The Company offers Medicare plan comparison tools and educational materials for Medicare-related insuran
Supplement and Medicare Part D prescription drug plans. The Company is licensed to market and sell health
The health insurance plans the Company offers include medical health insurance coverage, such as preferre
and indemnity plans, Medicare plans, short-term medical insurance, student health insurance, health savings
plans, such as dental and vision insurance.

carsales.com Ltd is engaged in online classified and display advertising business and provides a number of
automotive industry.
The Company operates in two business segments: Online Advertising Services and Data and Research Serv
product sets being classified advertising and display advertising services. Classified advertising encompasse
advertising, typically involves corporate customers, such as automotive manufacturers/importers, finance an
Company's Website. Its divisions of Redbook, LiveMarket, DataMotive and DataMotive Business Intelligence
including manufacturers/importers, dealers, industry bodies, finance and insurance companies offering produ

cription

the underwriting of insurance and asset management. The Company underwrites

regular medical insurance and disability income insurance. The Company delivers its

vices.
Web Direct, LateStays.com and GoDo.com.au. Wotif.com is a travel Website at the
New Zealand, Wotif.com sells hotels, domestic and international flights, and flightal images, guest reviews and travel guides. LateStays.com promotes last-minute
s. Customers can browse and book in English, Chinese, Indonesian, Japanese Thai
ubsidiary Wotif.com Pty completed the sale of its investment property at 13 Railway

vices.
r sale and rent; online advertising of commercial properties for sale and lease;
ovision of Website development services to the real estate industry through Web
consumers including publications to advertise properties for sale and rent; and other
tate.com.au and realcommercial.com.au. Its REA Media serves the property
uired 1Form Online Pty Ltd, an operator of rental application service 1Form.com.

Business to Business Travel (B2B Travel). Webjet enables customers to compare,

odation, holiday package deals, travel insurance and car hire worldwide. Its products
s, domestic flights and New Zealand flights. The Company's subsidiaries include
tonEarth Pty Ltd, Webjet USA Holdings Inc, Webjet Marketing NZ Pty Limited,

urance, travel, home services and other product or service providers through its
ers search for the right deal for their mortgage, current account and debt solution
rance amongst others; Home, which allows the customers to search for the right tariff
d everything from package holidays, to flights, hotels and car hire, and
xpert.com has researched, on areas, such as credit cards and loans, shopping, deals
nce, mortgages and homes, and income and family

ervices.
to-date new and used automobile pricing information, specifications, reviews and
butes its dealer customers automobile pricing and promotional information through
ent, Netease and social networking websites Renren and Kaixin. The Company
business, Our taoche.com business and Digital Marketing Solutions Business.

businesses.

d in the provision of prices comparison services, gourmet food rankings and reviews
ums and rental properties searching services, as well as reviews of travel through the
rtising spaces. The Finance segment is engaged in the provision of on-line trade
s. On March 31, 2014, the Company acquired 58.14% of outstanding shares in Japan-

ogy and marketing company.

on. The Adslot division allows media publishers to sell their advertising inventory
ucing sales and administration costs. The Webfirm division offers online marketing
ch advertising], social media marketing, Website hosting and Website amendments.
new products: Adslot Direct and Adslot Create. In July 2012, its USA offices opened

ndividual health insurance plans

mass distribution of and online enrollment in its diverse portfolio of health insurance
y insurance carrier companies and it assume no underwriting, insurance or
applications, some with health questionnaires, to provide an immediate accept or
13, it announced the purchase of contract rights with TSG Agency, LLC. (TSG) and

ndividuals, families and small businesses in the United States, as well as technology

Medicare-related insurance plans, including Medicare Advantage, Medicare

d to market and sell health insurance in all 50 states and the District of Columbia.
overage, such as preferred provider organization, health maintenance organization
insurance, health savings account eligible health insurance plans and ancillary

nd provides a number of software, data and other services sold to customers in the

d Data and Research Services. Its online advertising offerings include two key
d advertising encompasses both private sellers and dealer customers. Display
ers/importers, finance and insurance companies placing advertisements on the
otive Business Intelligence provide various solutions to a range of customers,
companies offering products including software, analysis, research and reporting

Additional Info >>

o >>

INCOME STATEMENT

For the period ending

Revenue
Other Operating Expenses
Operating profit (loss)
Interest Expense
Net Non-Operating Losses (Gains)
Pretax Income
Income Tax Expense
Income Before XO Items
Extraordinary Loss Net of Tax
Outside equity interests
Net profit (loss)
Total Cash Preferred Dividends
Other Adjustments
Net Income Available to Shareholders
Unusual loss (gain)
Tax Effect on Abnormal Items
Normalized Income

FY 2010
6/30/2010
43.8906
35.9054
7.9852
0
-0.2435
8.2287
2.4485
5.7802
0
0
5.7802
0
0
5.7802

FY 2011
6/30/2011
73.283
58.473
14.81
0
-0.215
15.025
4.368
10.657
0
0
10.657
0
0
10.657

FY 2012
6/30/2012
112.803
92.796
20.007
1.77
-0.896
19.133
6.204
12.929
0
0
12.929
0
0
12.929

FY 2013
6/30/2013
119.337
98.272
21.065
2.998
-0.089
18.156
4.787
13.369
0
0
13.369
0
0
13.369

0
0
5.7802

0
0
10.657

0
0
12.929

0
0
13.369

BALANCE SHEET
FY 2010
6/30/2010

FY 2011
6/30/2011

FY 2012
6/30/2012

FY 2013
6/30/2013

Assets
Cash & Near Cash Items
Accounts & Notes Receivable
Net Fixed Assets
Deferred Policy Acquisition Costs
Other Assets
Total Assets

7.44
3.96
2.93
0.00
45.50
59.83

17.50
5.11
1.97
0.00
66.21
90.79

20.01
15.34
9.38
0.00
129.67
174.40

85.32
34.07
6.95
0.00
147.92
274.26

Liabilities & Shareholders' Equity

Short-Term Borrowings
Other Short-Term Liabilities
Long-Term Borrowings
Other Long-Term Liabilities
Total Liabilities
Total Preferred Equity
Minority Interest
Share Capital & APIC
Retained Earnings & Other Equity
Total Equity
Total Liabilities & Equity

0.00
9.06
0.00
12.23
21.29
0.00
0.00
20.10
18.45
38.54
59.83

0.00
12.94
0.00
11.50
24.45
0.00
0.00
36.58
29.76
66.34
90.79

35.00
25.79
0.00
20.60
81.39
0.00
0.00
49.76
43.25
93.01
174.40

0.00
25.12
0.00
21.41
46.54
0.00
0.00
171.31
56.41
227.73
274.26

0.95

22.97

21.59

-7.44

-17.50

14.99

For the period ending

Reference Items
Shares Outstanding
Operating Leases
Book Value per Share
Net Debt

267.95
19.41
0.85
-85.32

Health and Car Insurance

The Health and Car Insurance segment offers comparison and referral services across the private health insurance and car
referral services across the private health insurance and car insurance categories.

The Household Utilities and Financial

The Household Utilities and Financial segment offers comparison and lead referral services across a range of household utilities a

s across the private health insurance and car

erral services across a range of household utilities and personal financial products, including life insurance, broadband, retail electricity and gas produc

urance, broadband, retail electricity and gas products, home loans, savings accounts, term deposits, credit cards and personal loans.

s, credit cards and personal loans.

Key Operating Metrics

Assumptions
Leads Growth
Health Leads Growth (%)
Household Leads Growth (%)
Total Leads Growth (000's)
Leads as total %
Health and Car Insurance Leads (%)
Household Utilities and Financial (%)
Conversion Effectiveness Increase
Average RPS growth (%)

FY10

Revenue Derivations
Leads
Health and Car Insurance
Household Utilities and Financial
Total Leads
Conversion Ratio (%)
Net product sales (000's)
Average RPS ($)
Total Revenue
Revenue Growth

FY10

Revenue (Segmented by Market)

Total Revenue
Health and Car Insurance
Household Utilities and Financial
Health and Car Insurance (%)
Household Utilities and Financial (%)

FY10

Revenue (Segmented b Type)

Upfront Fee revenue
Trail Commission Revenue
Total
Upfront Fee revenue (%)
Trail Commission Revenue (%)

FY10

FY11
27.46%
14.74%
25.87%
87.49%
12.51%

88.60%
11.40%
0.00%
0.00%

0.00%
FY11
1,329
190
1,519
3.62%
55
791
43,491

1,694
218
1,912
4.81%
92
787
72,442
66.57%
FY11

43,491
36,296
7,195
83%
17%

72,442
64,120
8,322
89%
11%
FY11

Other Segment
Upfront Fee revenue
Upfront Fee revenue
Click-Through Revenue
Other Business Revenue
Total
Trail Commission Revenue
Trail Commission Revenue - Current Period
Trail Commission Revenue - Expected Cash flow adjustemts to historical trail receivable
Trail Commission Revenue - Interest Income Relating to the unwind of discount on historical trail receivable
Total
Total

FY12

FY13

FY14

FY15

FY16

16.41%
346.33%
54.03%

-1.52%
41.42%
12.67%

10.00%

10.00%

10.00%

66.96%
33.04%
0.00%
0.00%

58.53%
41.47%
0.00%
0.00%

58.53%
41.47%
18.00%
-10.00%

58.53%
41.47%
17.00%
-10.00%

58.53%
41.47%
16.00%
-10.00%

FY12

FY13
1,972
973
2,945
5.74%
169
662
111,928
54.51%

FY12

FY14
1,942
1,376
3,318
6.06%
201
587
118,037
5.46%

FY13
111,928
97,983
13,945
88%
12%

FY12

2,136
1,514
3,650
7.15%
261
529
137,891
16.82%
FY14

118,037
93,090
24,947
79%
21%
FY13
74,806
43,231
118,037
63%
37%

52,602
2,034
2,667
57,303

63,960
2,843
8,003
74,806

44,106
3,081 7,438
54,625

36,212
687
7,706
43,231
118,037

FY16
2,350
1,665
4,015
8.36%
336
476
159,719
15.83%

FY15
137,891
104,611
33,280
76%
24%

FY14

57,303
54,625
111,928
51%
49%

111,928

FY15

2,585
1,831
4,416
9.70%
428
428
183,421
14.84%
FY16

159,719
116,379
43,340
73%
27%
FY15

183,421
128,147
55,274
70%
30%
FY16