Contractors

Research evidence excerpt

Contractors

Flashnote Contractors

Service Stream (SSM AU) Macquarie Group Limited together with its affiliates beneficially owns 1% or more of the equity securities of Service Stream Ltd.

Outperform Macquarie Group Limited together with its affiliates owns a net long of 0.5% or more of the equity securities of Service Stream

12-month target:AUD2.75 - EV/EBITDA Ltd.

Valuation: AUD 2.76 - EV/EBITDA

Price:AUD2.08

Ventia Services (VNT AU) Macquarie Group Limited together with its affiliates beneficially owns 1% or more of the equity securities of Ventia Services Group

Outperform Ltd.

12-month target:AUD6.45 - PER & DCF A Macquarie analyst(s) involved with the preparation of this research has, in the past 12 months, visited material operations

Valuation: AUD 6.45 - Avge Peer of Ventia Services Group Ltd. In connection with such a visit, the company may have furnished local transportation and/or

valuation & DCF accommodation, which requires authorisation in adherence with Macquarie policy requirements.

Price:AUD5.87 Macquarie Group is a substantial securities holder of Ventia Services Group Ltd.

Target Price Risk Disclosures

Company Name Risk Disclosure

Downside risks that would impede our target price being reached include further revenue softness in key segments/divisions, e.g., Downer EDI (DOW AU) •

roads and transport more broadly. Demand for labour and skills is relatively tight; higher labour costs should generally be well

managed via cost escalators in a range of DOW’s contracts; however there is a risk that the extent of skills shortages/labour costs

is greater than expected. QLD trains contract has been de-risked with rolling stock design and manufacturing risk sitting with

subcontractor Hyundai Rotem; however, DOW is still the lead contractor.