Joint Statement by Baillieu Limited Chairperson David Trude and Managing Director Gavin Powell

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Mainstream Group (MAI) | Guidance update

Overall: MAI has reissued FY20 earnings guidance at the same pre-crisis EBITDA level of ~$9m and is in final negotiations to extend its debt facility. We see both of these developments as positive.

Guidance: MAI has reissued earnings guidance for FY20. The company expects revenue of $54m and EBITDA of $9.0m. This compares to guidance of $55m revenue and $9.0m EBITDA at the 1H20 result which was subsequently withdrawn in April. It also compares to our published forecast of $53m revenue and $8.1m EBITDA.

Cost controls: The company confirmed ongoing discretionary cost controls, applications for stimulus support in available jurisdictions, and a narrower focus for capex on core areas.

Capital: The company has stated it is in final negotiations with its bank to extend its $6m debt facility beyond the current maturity of Jan-21.

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