up should follow in coming quarters customer traction ... · canaccord genuity is the global...

1-Page Limited

Enterprise Software - Software as a Service

Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX | CF. : LSE)The recommendations and opinions expressed in this research report accurately reflect the research analyst's personal, independent and objective views about any and allthe companies and securities that are the subject of this report discussed herein.

Australian Equity Research31 March 2016

SPECULATIVE BUYunchangedPRICE TARGET A$3.93↓from A$5.17Price (31-Mar)Ticker

A$1.231PG-ASX

52-Week Range (A$): 1.17 - 5.44Avg Daily Vol (000s) : 546.0Avg Daily Vol (M) : 0.7Market Cap (A$M): 208Shares Out. (M) : 169.0Enterprise Value (A$M): 159

FYE Jan 2015A 2016E 2017E 2018ESales (A$M) 0.4 0.4↓ 31.8↓ 119.1↓

Previous 0.4 0.8 41.7 139.7EBITDA (A$M) (2.8) (7.1)↑ 7.9↓ 74.6↓

Previous (2.8) (10.3) 12.6 82.8Net Income Adj (A$M) (2.8) (7.9)↑ 4.5↓ 49.6↓

Previous (2.8) (10.5) 8.7 55.7EPS Adj&Dil (AUc) (0.02) (0.05)↑ 0.03↓ 0.32↓

Previous (0.02) (0.07) 0.05 0.33Net Debt (Cash) (A$M) (3.8) (48.7)↑ (45.4)↑ (80.1)↑

Previous (3.8) (49.0) (51.0) (91.6)EV/Sales (x) 508.9 385.7 5.1 1.1EV/EBITDA (x) (73.7) (22.4) 20.7 1.7

6

5.5

5

4.5

4

3.5

3

2.5

2

1.5

1

Apr-15

May-15

Jun-15

Jul-15

Aug-15

Sep-15

Oct-15

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

1PG

Source:�FactSet

1-Page is a HR technology business, with a focus onproviding candidate sourcing services to enterprisecustomers through a SaaS model. 1-Page has a candidatedatabase in excess of 1.2bn people from which it providescurated talent pools of referral style candidates for job roles.

Chris Northwood | Analyst | Canaccord Genuity (Australia) Ltd. | [email protected] | +61.3.8688.9136

Lowering Target Price

Customer traction continues; revenue ramp-up should follow in coming quartersFY16 revenue of A$0.4m lower than our A$0.8m estimate, but focus is on customers1-Page reported revenue (excluding FX) of A$0.4m vs our estimate of A$0.8m; however,we don’t see this as an important measure of the company’s potential value. The focusfor investors is on customer contract conversion and potential revenue in the FY17 year.

Another 20 contracts either closed or being negotiated in 1Q FY17 so far….Management confirmed there are “an additional 20 contracts” either already signedor close to being signed, over & above the 24 annual contracts that they previouslyannounced at the end of January. We assume they have approximately 45 to 50customers signed or close to being signed at the end of March 2016.

….plus 55 opportunities in the pipeline expected to be converted in near termA further 55 opportunities are in the active pipeline, which appears to confirm customeracquisition momentum is growing. We have an expectation they will have an averageof 113 customers on the sourcing platform for the FY17 year, so confidence in ourestimates is increasing.

Sales and marketing efforts to ramp up substantially in coming quartersManagement is expanding the sales team from less than 5 at the end of January to20-25 by the end of calendar 2016, so we expect a ramp-up in sales conversion toaccelerate as the year progresses. In addition, they have launched an automatedoutbound marketing effort to target the ~7,000 small and medium sized businesses,which could see customer numbers grow more rapidly as the year progresses.

Time to “deliver pools” to customers has fallen from 3 days to 3 hoursThe time to deliver pools has come down from 3 days in the 4Q to 3 hours currently. Thisallows the company to deliver pools much faster and therefore at a greater scale, drivinghigher revenue. This pool delivery time is set to improve to a matter of minutes in thenext month or so, when it launches its latest update, which is expected in late April.

Earnings estimates revised lower due to timing of revenue recognitionWe have lowered our revenue forecast for FY17 from A$41.7m (U$29.2m) to A$31.8m (U$22.2m), or 24% lower than our previous estimate. This is due to our more conservativeassumptions around revenue recognition, where we expect customers to take up to 90days to on-board and then another month to start invoicing (we have pushed revenueback by almost a full quarter as a result).Our EBITDA estimate for FY17 has been reduced from A$12.6m to A$7.9m.

Valuation and price target lower, but maintain SPECULATIVE BUY ratingWe are using a blended EV/EBITDA (using FY17 estimates) and DCF valuation to derive a12-month price target of A$3.93/share which is 24% lower than our previous price targetof A$5.17/share. We maintain our SPECULATIVE BUY rating.

For important information, please see the Important Disclosures beginning on page 8 of this document.

2

Price as at 31/03/16 1.23$

1-Page Limited (1PG) 207.9$ Fiscal year end : 31st January

Profit & Loss ($m) 2015A 2016F 2017F 2018F 2019F Valuation ratios 2015A 2016F 2017F 2018F 2019F

Revenue 0.4 0.4 31.8 119.1 202.4 EPS (cps) - reported -2.3 -5.3 3.0 32.3 59.7

COGS -0.2 0.0 -4.5 -11.9 -19.5 PER (x) -53.1 -23.2 41.7 3.8 2.1

Gross Profit 0.2 0.4 27.3 107.2 182.9 PER Rel - All Ords -404% -238% 161% -74% -84%

EBITDA -2.8 -7.1 7.9 74.6 139.6 PER Rel - Small Ords -380% -217% 150% -74% -84%

Dep & Amort. 0.0 -1.0 -1.5 -1.8 -2.0 Enterprise Value ($m) 143.1 140.3 143.7 109.0 30.4

EBIT -2.8 -8.1 6.4 72.9 137.6 EV / EBITDA (x) -51.7 -19.7 18.3 1.5 0.2

Net Interest Expense 0.0 0.2 0.7 0.8 1.5 EV / EBIT (x) n/a 19.5 -12.2 -0.8 -0.1

NPBT -2.8 -7.9 7.0 73.7 139.0 DPS (cps) 0.0 0.0 0.0 0.0 0.0

Tax expense 0.0 0.0 -2.5 -24.1 -47.3 Dividend Yield (%) 0.0% 0.0% 0.0% 0.0% 0.0%

NPAT - reported -2.8 -7.9 4.5 49.6 91.8 Franking (%) 0% 0% 0% 0% 0%

CFPS (cps) -1.5 -4.2 1.3 26.0 53.9

Cash Flow ($m) 2015A 2016F 2017F 2018F 2019F P / CFPS (x) -84.3 -29.6 96.3 4.7 2.3

NPAT -2.8 -7.9 4.5 49.6 91.8

+ Depreciation 0.0 0.0 0.0 0.0 0.1

+ Amortization 0.0 1.0 1.5 1.7 1.9 Profitability ratios 2015A 2016F 2017F 2018F 2019F

+ Other Cash Flow From Operations 0.0 0.0 0.0 0.0 0.0 EBITDA Margin (%) -690.9% -1725.4% 24.7% 62.7% 68.9%

- Change in Working Capital/other 1.0 0.6 -4.1 -11.3 -10.8 EBIT Margin (%) -691.4% -1969.7% 20.0% 61.2% 68.0%

Operating Cashflow -1.7 -6.4 2.0 40.0 82.9 ROE (%) -20.9% -11.4% 6.1% 40.0% 42.5%

- Capex 0.0 -4.4 -5.3 -5.3 -4.3 ROA (%) -20.4% -11.2% 6.0% 39.2% 41.8%

- Acquisitions -2.2 -2.2 0.0 0.0 0.0 ROIC (%) -11.1% -9.6% 5.5% 60.2% 111.4%

- Other Investing. 0.0 0.0 0.0 0.0 0.0

Investing Cashflow -2.2 -6.5 -5.3 -5.3 -4.3 Balance Sheet ratios 2015A 2016F 2017F 2018F 2019F

Free Cashflow -3.9 -12.9 -3.3 34.7 78.6 Net Debt (cash) -3.8 -48.7 -45.4 -80.1 -158.7

Loans - Drawn/(Repayment) 0.0 0.0 0.0 0.0 0.0 Net Gearing (%) ND/ND+E -40.6% -229.9% -156.2% -182.2% -277.8%

Shares - Issues/(Buybacks) 8.5 60.0 0.0 0.0 0.0 Interest Cover (x) n/a n/a n/a n/a n/a

Dividends - (Payments) 0.0 0.0 0.0 0.0 0.0 NTA per share ($) $0.03 $0.35 $0.35 $0.65 $1.24

Other Financing -0.8 -2.6 0.0 0.0 0.0 Price / NTA (x) 3692.0 356.3 349.6 188.4 99.5

Financing Cashflow 7.8 57.4 0.0 0.0 0.0

Net Cashflow 3.8 44.6 -3.3 34.7 78.6

Cash at beginning of period 0.0 3.8 48.7 45.4 80.1 Growth ratios 2015A 2016F 2017F 2018F 2019F

Cash at end of period 3.8 48.7 45.4 80.1 158.7 Sales revenue ($m) 2.9% 7601.7% 274.7% 70.0%

EBITDA ($m) 157.0% -210.3% 850.1% 87.0%

Balance Sheet 2015A 2016F 2017F 2018F 2019F EBIT ($m) 193.2% -178.1% 1047.2% 88.8%

Cash 3.8 48.7 45.4 80.1 158.7 NPAT ($m) 186.8% -157.1% 992.6% 85.1%

Recievables/Debtors 0.0 0.1 4.6 17.1 29.0 EPS (cps) 128.4% -155.8% 992.6% 85.1%

Inventories 0.0 0.0 0.0 0.0 0.0 DPS (cps) 0.0% 0.0% 0.0% 0.0%

PP&E 0.0 0.1 0.4 0.7 0.9

Intangibles 9.3 16.9 20.4 23.7 25.7 Interim Analysis 1H16F 2H16F 1H17F 2H17F

Deferred Tax 0.2 4.5 4.5 4.5 4.5 Revenues 0.2 0.3 6.0 25.7

Other assets 0.2 0.7 5.2 17.7 29.6 EBITDA - reported -3.3 -3.8 -2.4 10.2

Total Assets 13.6 70.9 75.9 126.6 219.5 EBIT - reported -3.3 -4.8 -3.1 9.4

Borrowings 0.0 0.0 0.0 0.0 0.0 NPAT -adjusted -3.3 -4.6 -2.5 7.0

Payables/Creditors 0.3 1.0 1.4 2.6 3.6 EPS (cps) - adjusted -2.3 -3.0 -1.6 4.6

Other Liabilities 0.0 0.0 0.0 0.0 0.0 DPS 0.0 0.0 0.0 0.0

Total Liabilities 0.3 1.0 1.4 2.6 3.6

NET ASSETS 13.3 69.9 74.5 124.0 215.8 Valuation 2016F 2017F 2018F

EBITDA multiple (x) This Year Next Year 2 Years

Board of Directors / Substantial Shareholders EBITDA ($m) -7.1 7.9 74.6

Top Insiders % Target EBITDA multiple (x) 29.1x 29.1x 29.1x

Weidenmiller Joanna Kidd Riley 15.6 10.2% Add cash ($m) 48.7 45.4 80.1

Riley Patrick G 12.0 7.8% Implied Valuation -255.9 183.2 2091.4

Mcgrouther Tod Stephen 3.8 2.5% Per Share -$0.94 $1.62 $13.32

Substantial Shareholders % Revenue Multiple This Year Next Year 2 Years

Weidenmiller Joanna Kidd Riley 15.6 10.2% Revenue (A$m) 0.4 31.8 119.1

Riley Patrick G 12.0 7.8% Revenue Mulitple (x) 6.1x 6.1x 6.1x

Fidelity Management & Research Co. 5.0 3.2% Per Share (A$/sh) -$0.31 $0.97 $4.20

Mcgrouther Tod Stephen 3.8 2.5%

Kerridge Keith William 3.1 2.0% Discounted Cash Flow

Fidelity Management & Research (Uk), Inc. 2.8 1.8% Cost of equity 12.5% WACC 15.1%

Cost of debt 5.8% Terminal Growth Rate 1.0%

Top 20 Shareholders 55.9 36.4% Net Debt/ Net debt + equity -229.9% Per Share $6.24

Source: Company reports & Canaccord Genuity estimates

Market Cap

Shareholding (m)

Shareholding (m)

1-Page LimitedLowering Target Price

Speculative Buy unchanged Target Price A$3.93 from A$5.17 | 31 March 2016 Enterprise Software - Software as a Service 2

3

Figure 1: Model assumptions

Source: Canaccord Genuity estimates

Base case operating model - Summary FYE: Jan

Sourcing FY15A FY16E FY17E FY18E

Customers - Pool Contracts - Tier 1 n/a 2 24 57



Total Pool Based Contracts (Avg#) n/a 24 113 274

Employees - Tier 1 n/a 85,000 85,750 84,750



Weighted Avg Employees (#) n/a 15,917 26,554 26,596

Employee Turnover - Tier 1 n/a 35.0% 35.8% 36.8%



Avg Employee Turnover (%) n/a 35.0% 35.8% 36.8%

% Share of Hires for 1PG - Tier 1 n/a 0.1% 1.3% 2.0%



W'Avg % Share of Hires for 1PG (%) n/a 0.5% 2.1% 3.9%

Avg Pools Per Customer - Tier 1 n/a 10 385 607



Weighted Avg Pools/Customer (#) n/a 8 152 267

Avg Fee per Pool - Tier 1 n/a $1,000 $938 $895

Avg Fee per Pool - Tier 2 n/a $1,000 $1,050 $1,100

Avg Fee per Pool - Tier 3 n/a $1,000 $1,050 $1,100

Weighted Avg Fee per Pool (US$) n/a $1,000 $1,027 $1,057

Revenue - Sourcing (US$m) 0.2 0.3 21.4 79.0

Implied Mthly Revenue Run Rate (US$m) 0.0 0.0 1.8 6.6

Assessment FY15A FY16E FY17E FY18E

Clients on Stage 2 Contracts - Assessment n/a 5 31 69

Avg # Slots - per customer n/a 196 195 221

Avg 1PG Revenue - per Slot n/a $91 $76 $76

Avg 1PG Revenue - Per Client n/a $17,747 $14,748 $16,801

Revenue - Assessment (US$m) 0.0 0.1 0.5 1.2

Innovation FY15A FY16E FY17E FY18E

Clients on Stage 2 Contracts - Innovation n/a 3 16 34

Avg # Proposals - per customer n/a 6,550 4,727 4,676

Avg 1PG Revenue - per Proposal n/a $0.70 $0.84 $0.86

Avg 1PG Revenue - Per Client n/a $26,640 $23,757 $24,010

Revenue - Innovation (US$m) 0.0 0.1 0.4 0.8

Operating Revenue - Summary FY15A FY16E FY17E FY18E

Sourcing (US$m) 0.2 0.3 21.4 79.0

Assessment (US$m) 0.0 0.0 0.5 1.2

Innovation (US$m) 0.0 0.0 0.4 0.8

Other/Adjustments (US$m) 0.2 0.0 0.0 0.0

Total US$ Revenue (US$M) 0.4 0.4 22.2 81.0

A$/US$ exchange Rate 0.846 0.741 0.700 0.680

Total A$ Revenue (A$m) 0.4 0.4 31.8 119.1

A$ Revenue Growth (%) 2.9% 7601.7% 274.7%



4

Earnings estimates revised down due to revenue recognition timing

We have revised our earnings estimates to reflect slower revenue recognition timing,

where the company expects converted contracts to take between 45-90 days to “on-

board” before invoicing commences the following month. We are taking a

conservative approach and allowing 4-5 months for this ramp-up of new customers

and as such have pushed our recognition of revenue back by close to a full quarter.

This forces the last quarter estimate of the FY17 year to push back into the FY18 year.

As a result, we have lowered our revenue forecast for FY17 from A$43.2m (U$29.2m)

to A$31.8m (U$22.2m), or 24% lower than our previous estimate.

We have also refined our expenses to be more in line with reported FY16 actual

expenses and management guidance of reaching operating expenses of

approximately A$2.0m per month by the end of calendar year 2016. Our revised FY17

total operating expense for the year is A$19.4m (down from A$24.2m).

Our wages estimate for FY17 has decreased from A$12.7m to A$9.9m, which

includes the ramped up sales force from ~5 staff in the Jan quarter to ~25 sales staff

by the end of the fiscal year. Our marketing expense is significantly higher year on

year, but has been lowered from A$6.7m to A$4.5m for FY17. We revised our admin

expense higher from A$2.8m to A$4.4m.

Depreciation and amortisation has been increased from A$0.8m in FY17 to A$1.5m

with the acquisition of Marianas Labs, and a higher R&D expense being factored into

our assumptions.

Canaccord’s EBITDA estimate for FY17 has been reduced from A$12.6m to A$7.9m.

Figure 2: Earnings estimates revised lower due to revenue recognition timing


Earnings Forecast (A$m - unless otherwise noted) FYE: Jan

FY15A FY16E FY17E FY18E

Revenue (US$m) 0.3 0.3 22.2 81.0

A$/US$ exchange Rate 0.846 0.741 0.700 0.680

Revenue (A$m) 0.4 0.4 31.8 119.1

Revenue Growth % 2.9% 7601.7% 274.7%

Wages -1.4 -4.0 -9.9 -17.9

Marketing -0.2 -0.6 -4.5 -8.2

Admin -0.5 -2.6 -4.4 -5.4

Other -0.8 -0.1 -0.5 -1.0

EBITDA -2.8 -7.1 7.9 74.6

Depreciation & Amortisation 0.0 -1.0 -1.5 -1.8

EBIT -2.8 -8.1 6.4 72.9

Net Financing Expense 0.0 0.2 0.7 0.8

Profit Before Tax -2.8 -7.9 7.0 73.7

Income Tax Expense 0.0 0.0 -2.5 -24.1

NPAT -2.8 -7.9 4.5 49.6

EPS (¢) -2.3 -5.3 3.0 32.3

P/E Ratio n/a -23.2x 41.7x 3.8x

EV/Revenue @ $1.23 n/a 340.1x 4.5x 0.9x

EV/EBITDA @ $1.23 n/a -19.7x 18.3x 1.5x



5

Balance sheet

1-Page had A$48.7m cash on the balance sheet at the end of January 2016, which is

more than adequate to fund future growth initiatives, including an increased

marketing spend, the major lift in sales staff hiring, and continued investment into

R&D spending on (primarily) the sourcing platform. We see no requirement for the

company to raise additional equity any time in the next few years.

We have assumed 60-90 day payment terms from customers, with receivables

ramping up as revenues increase in the FY17 and FY18 years.

Our R&D and capex spend has been increased to A$5.3m in the next few years, as the

company continues to develop the automation of the pool delivery and also increases

focus on artificial intelligence and machine learning to evolve its product offering

more broadly within the human resources sector.

Figure 3: Balance sheet estimates


Balance Sheet Forecast (A$m) FYE: Jan

FY15A FY16E FY17E FY18E

Cash and Equiv 3.8 48.7 49.3 86.6

Receivables 0.0 0.1 4.6 17.1

Inventories/Stock on Hand 0.0 0.0 0.0 0.0

Prepayments 0.0 0.0 0.0 0.0

Other CA 0.1 0.4 0.4 0.4

Total Current Assets 4.0 49.3 54.3 104.1

Property Plant and Equip 0.0 0.1 0.4 0.7

Goodwill/Intangible 9.3 16.9 20.4 23.7

Deferred Tax/R&D 0.2 4.5 4.5 4.5

Other NCA 0.1 0.2 0.2 0.2

Total Non-Current Assets 9.6 21.7 25.5 29.0

Payables 0.3 1.0 1.4 2.6

Interest Bearing Loans/Debt 0.0 0.0 0.0 0.0

Current Tax Liabilities 0.0 0.0 0.0 0.0

Other CL 0.0 0.0 0.0 0.0

Total Current Liabilities 0.3 1.0 1.4 2.6

Interest Bearing Loans/Debt 0.0 0.0 0.0 0.0

Non-Current Tax Liabilities 0.0 0.0 0.0 0.0

Other NCL 0.0 0.0 0.0 0.0

Total Non-Current Liabillities 0.0 0.0 0.0 0.0

Net Assets 13.3 69.9 78.3 130.6

Share Capital 24.9 82.4 82.4 82.4

Reserves 2.5 16.1 16.1 16.1

Retained Earnings/(Losses) -14.2 -28.5 -20.1 32.1

Total Equity 13.3 69.9 78.4 130.6



6

Valuation and price target

The three valuation methods we reference below show a wide disparity in valuations,

given the early stage of development of the company and the potentially long period of

rapid growth that appears likely to occur over the coming years.

We are using a blended EV/EBITDA (using FY17 estimates) and DCF valuation to

derive a 12 month price target of A$3.93/share which is 24% lower than our previous

price target of A$5.17/share. We maintain our SPECULATIVE BUY rating.

We note however that our EV/EBITDA valuation increases significantly in FY18 should

the company successfully execute on the customer growth and ratio of pools as a

percentage of hiring requirements of those customers over the coming 12-18 months

and would expect the stock to re-rate higher in line with this success, should it

materialize.

Our DCF valuation of $6.24/share is based on 15.1% WACC, beta of 1.5 and terminal

growth of 1%.

Note: We have shown an EV/Revenue valuation as a further check method, based on

FY18 revenue forecasts, which gives a A$4.20/sh valuation.

Figure 4: EV/EBITDA valuation


Figure 5: DCF valuation


EV/EBITDA Valuation FYE: Jan

FY16E FY17E FY18E

EBITDA (A$m) -7.1 7.9 74.6

EV/EBITDA multiple 29.1x 29.1x 29.1x

EV -207.2 228.6 2,171.5

Net Debt/(Cash) -48.7 -45.4 -80.1

Equity Value -255.9 183.2 2,091.4

Valuation / share -$0.94 $1.62 $13.32

Current Share Price $1.23 $1.23 $1.23

Upside/(Downside) -176.2% 31.8% 983.2%

DCF Valuation

Current NPV

Discount Rate / WACC 15.1%

Terminal Growth 1.0%

DCF Valuation / share $6.24

Upside/(Downside) 407.4%

WACC

Kd - after tax 5.8%

Ke 12.5%

Beta 1.5

WACC 15.1%



7

Figure 6: EV/Revenue valuation


EV/Revenue Valuation FYE: Jan

FY16E FY17E FY18E

Revenue (US$m) 0.3 22.2 81.0

A$/US$ exchange Rate 0.741 0.700 0.680

Revenue (A$m) 0.4 31.8 119.1

Multiple (x) 6.1x 6.1x 6.1x

Valuation (A$m) -46.2 148.5 646.2

Valuation / share -$0.31 $0.97 $4.20

Current Share Price $1.23 $1.23 $1.23

Upside/(Downside) -125.1% -21.5% 241.8%



Appendix: Important DisclosuresAnalyst CertificationEach authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) therecommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent andobjective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoringanalyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to thespecific recommendations or views expressed by the authoring analyst in the research.Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons ofCanaccord Genuity Inc. and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communicationswith a subject company, public appearances and trading securities held by a research analyst account.Target Price / Valuation Methodology:1-Page Limited - 1PGOur price target of A$3.93/sh is based on an equally weighted, blended DCF and EV/EBITDA multiple valuation method. Our DCFvaluation is based on a 10-year cash flow forecast, using 15.1% WACC and 1.0% terminal growth rate. The EV/EBITDA multiple valuationis based on a 29.1x multiple, derived from the peer comparable multiples for FY17.Risks to achieving Target Price / Valuation:1-Page Limited - 1PGSlower than expected ramp up in customer conversion to contracts. Lower useage of the curated talent pools than forecasts. Customerstrialling the platform, but not getting the appropriate results that would see them sign long term contracts. Data quality not being up tothe appropriate standard.

Distribution of Ratings:Global Stock Ratings (as of 03/31/16)Rating Coverage Universe IB Clients

# % %Buy 553 61.24% 31.83%Hold 260 28.79% 15.77%Sell 28 3.10% 3.57%Speculative Buy 62 6.87% 61.29%

903* 100.0%*Total includes stocks that are Under Review

Canaccord Genuity Ratings SystemBUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.

HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.

SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months.

NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer.“Risk-adjusted return” refers to the expected return in relation to the amount of risk associated with the designated investment or therelevant issuer.

Canaccord Genuity Company-Specific Disclosures (as of date of this publication)1-Page Limited currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period,Canaccord Genuity or its affiliated companies provided investment banking services to 1-Page Limited.In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Investment Banking services from1-Page Limited .Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Bankingservices from 1-Page Limited in the next three months.The primary analyst, a member of primary analyst's household, or any individual directly involved in the preparation of this research,has a long position in the shares or derivatives, or has any other financial interest in 1-Page Limited, the value of which increases as thevalue of the underlying equity increases.



An analyst has visited the material operations of 1-Page Limited. No payment was received for the related travel costs.

Apr 2013 Jul 2013 Oct 2013 Jan 2014 Apr 2014 Jul 2014 Oct 2014 Jan 2015 Apr 2015 Jul 2015 Oct 2015 Jan 2016

76543210

1-Page Limited Rating History as of 03/29/2016

Closing Price Target Price

Buy (B); Speculative Buy (SB); Sell (S); Hold (H); Suspended (SU); Under Review (UR); Restricted (RE); Not Rated (NR)

SB:AUD6.3708/05/15

SB:AUD4.7002/22/16

SB:AUD5.1702/25/16

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To the extent reasonably practicable, research will be disseminated simultaneously to all of the Canaccord Genuity customers who areentitled to receive the firm's research. Canaccord Genuity research is posted on the Canaccord Genuity Research Portal and will beavailable simultaneously for access by all of Canaccord Genuity’s customers who are entitled to receive the firm's research. In additionresearch may be distributed by the firm’s sales and trading personnel via email, instant message or other electronic means. Customersentitled to receive research may also receive it via third party vendors. Until such time as research is disseminated to CanaccordGenuity’s customers as described above, Authoring Analysts will not discuss the contents of their research with Sales and Trading orInvestment Banking employees.

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Research Analysts may, from time to time, include “short-term trade ideas” in research reports. A short-term trade idea offers a short-term view on how a security may trade, based on market and trading events, and the resulting trading opportunity that may be available.A short-term trade idea may differ from the price targets and recommendations in our published research reports that reflect theresearch analyst's views of the longer-term (one-year) prospects of the subject company, as a result of the differing time horizons,methodologies and/or other factors. It is possible, for example, that a subject company's common equity that is considered a long-term ‘Hold' or 'Sell' might present a short-term buying opportunity as a result of temporary selling pressure in the market or for otherreasons described in the research report; conversely, a subject company's stock rated a long-term 'Buy' or “Speculative Buy’ could beconsidered susceptible to a downward price correction, or other factors may exist that lead the research analyst to suggest a sale overthe short-term. Short-term trade ideas will be identified as such in the research report and the factors underlying those ideas and therisks associated with them will be described in the research report. Short-term trade ideas are not ratings, nor are they part of anyratings system, and the firm generally does not intend, and does not undertake any obligation, to maintain or update short-term tradeideas. Short-term trade ideas may not be suitable for all investors and have not been tailored to individual investor circumstances andobjectives, and investors should make their own independent decisions regarding any securities or strategies discussed herein. Pleasecontact your salesperson for more information regarding Canaccord Genuity’s research.

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