Ann: Becoming a substantial holder, page-20

Hi Jimmy, thanks for the great contributions you have made to the conversations on HC. Just wondering how you came to the 5-6*EBITDA ratio for HSN.

I get around 10 times, with an EV of 630-640 million and FY18 EBITDA of 58 million.

Statement below for EBITDA:

Comparing FY18 to FY17:
• Operating revenue of approximately $230 million represents a 32% increase;
• EBITDA of approximately $58 million represents a 26% increase; and
• Earnings per share (based on net profit excluding the amortisation of acquired intangibles) is expected to be approximately 24% higher.

Still looks attractive to me as the EBITDA to cash conversion is pretty good. All the acquired amortisation also tends to mask actual cash generation when compared to stat earnings.