SGH LIMITED — Proxy Solicitation & Information Statement 2018

Aug 23, 2018

24 August 2018

Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000

By electronic lodgment

Total Pages: 71 (including covering letter)

Dear Sir / Madam

NOTICE OF MEETING AND EXPLANATORY MEMORANDUM

In accordance with Listing Rule 3.17.1, we attach a copy of the Notice of Meeting and Explanatory Memorandum as sent to TELYS4 holders today.

Yours faithfully

Warren Coatsworth Company Secretary

Seven Group Holdings Limited | ABN 46 142 003 469

38-42 Pirrama Road | Pyrmont NSW 2009 Australia | Postal Address: PO Box 777 | Pyrmont NSW 2009 Australia Telephone +61 2 8777 7777 | Facsimile +61 2 8777 7192

This is an important document and requires your immediate attention.

You should read it carefully and in its entirety before deciding whether or not to vote in favour of the Resolution.

If you are in any doubt as to what you should do, you should consult your broker, financial adviser or legal adviser immediately.

Notice of meeting and explanatory memorandum

Seven Group Holdings Limited ACN 142 003 469

Table of Contents

1	Important Information on the Conversion Proposal		7
	1.11.21.31.41.51.61.71.81.91.101.111.121.13	The Conversion Proposal 7Why is SGH proposing these changes? 7Choices open to TELYS4 Holders 9Full Conversion 10How do I participate in the Full Conversion? 10Partial Cash Exit Opportunity 10How do I participate in the Partial Cash Exit Opportunity? 10Voluntary Conversion 11Board Recommendation 11Independent Expert's Report 11Impact of the Conversion Proposal on SGH 11TELYS4 Holder approval 12Timing 12
2	Key reasons to vote in favour of the Resolution		13
	2.12.22.32.42.52.62.7	Board recommendation 13Independent Expert conclusion 13SGH capital structure 13Premium on market price 13Proposed Tax Reform 14Comparative Total Shareholder Return 14Voting Rights 14
3	Reasons why you may consider voting against the Conversion ProposalResolution
	3.13.23.33.4	Disagree with the recommendation of the Board 14Disagree with the conclusion or reasoning of the Independent Expert 14Yield Preference 14Ordinary Share price movement 15
4	Taxation Considerations		15
5	Additional information		16
	5.15.25.35.45.55.65.75.85.9	Disclosure of Information 16Rounding 17Holder approved Conversion 17Voluntary Conversion Term which has been added to the TELYS4 Terms 19Copies of Documents 20ASX Relief 20Sale Facility 21Change of Law provision in TELYS4 Terms 21Directors' and Key Management Interests 22
6	TELYS4 Holder Meeting and how to vote		23
	6.16.26.3	TELYS4 Holder Meeting 23Am I able to vote at the Meeting? 23Resolution approval requirements 23
7	Key Q&A		23

Annexure A

Notice of General Meeting of TELYS4 Holders

Annexure B Glossary and interpretation

Annexure C Independent Expert's Report

Annexure D Proxy form

Annexure E Election Form

Explanatory Memorandum

Letter from Chairman of the Board of Directors

22 August 2018

Dear TELYS4 Holder,

Seven Group Holdings (SGH) is inviting you to attend a meeting of TELYS4 Holders to be held on Monday 24 September 2018 to consider and vote on a proposal for the conversion of TELYS4 that the Company has on issue into ordinary shares of SGH (Ordinary Shares) (the Conversion Proposal).

The Conversion Proposal gives you the opportunity to receive 4.60645 Ordinary Shares for each TELYS4 you hold. If the vote is passed, it will also give you the option of selling up to 50% of the TELYS4 you hold for cash, at a price of at least $88.00 per TELYS4.

The conversion ratio of 4.60645 Ordinary Shares per TELYS4 has been calculated as the ratio required to deliver $92.50 value for each TELYS4 you hold, based on the 30 day volume average weight price (VWAP) of Ordinary Shares. This ratio represents a premium of 14% to the 30 day VWAP of the TELYS4 and a 15% premium based on the closing prices of the TELYS4 and the Ordinary Shares as at 21 August 2018. Note that, at the time of conversion, the market price of the Ordinary Shares into which each TELYS4 will convert could be more or less than $92.50 depending on trading prices at that time which TELYS4 Holders can check at asx.com.au. The cash price of $88.00 offered under the Partial Cash Exit Opportunity represents a 8.5% premium to the closing TELYS4 price as at 21 August 2018.

The Conversion Proposal, if implemented, has benefits including:

• · It would allow you to sell your post conversion Ordinary Shares in a more liquid market than the market for your TELYS4;
• · The Conversion Ratio of 4.60645 Ordinary Shares per TELYS4 represents a 15% premium to the current trading price of the TELYS4, based on the closing prices of Ordinary Shares and TELYS4 on 21 August 2018; and
• · It would enable you to receive cash for up to 50% of your TELYS4 at a minimum price which is a 8.5% premium to the current trading price of the TELYS4, based on the closing price of TELYS4 on 21 August 2018.

As well as the benefits listed above, you should consider the potential disadvantages of the Conversion Proposal, as set out in Section 3, which include that you may prefer the existing yield investment in the TELYS4 and that the price of the Ordinary Shares issued on conversion could fall. TELYS4 Holders are encouraged to read and consider all the information provided before making a decision on whether to vote in favour of the Conversion Proposal.

The SGH Board has considered a range of alternatives available to SGH having regard to the interests of the TELYS4 Holders, Ordinary Shareholders, SGH's financial position, our rights under the terms of the TELYS4 and SGH's capital structure. Based on this assessment, we believe that the Conversion Proposal is the most suitable option available.

Recognising that different TELYS4 Holders may have different investment preferences, we are also offering you the opportunity to have each of your TELYS4 converted into 4.60645 Ordinary Shares even if the vote on the Conversion Proposal does not pass.

To facilitate your consideration of the Conversion Proposal, KPMG Financial Advisory Services1 has been appointed as an Independent Expert and has expressed its opinion that: "the Conversion Proposal is in the best interests of TELYS4 Holders".

The Independent Expert's Report, which you should read in full, is contained in Annexure C.

The Board unanimously recommends that you vote in favour of the Conversion Proposal, and those Directors who hold TELYS4 have indicated that they intend to vote their TELYS4 in favour of the Conversion Proposal.

Your vote is important. The Board strongly encourages you to vote either by attending the meeting in person, by voting online or by appointing a proxy, attorney or corporate representative to attend the meeting and vote on your behalf.

If, having read the Explanatory Memorandum, you would like your TELYS4 converted into Ordinary Shares even if the vote fails, it is important that you opt for this on your Proxy Form.

SGH will keep TELYS4 Holders informed of any material developments in relation to the proposal through releases to ASX (which will also be published on SGH's website).

If you have any questions in relation to the proposal, please contact the Shareholder Information Line on 1300 046 609 (for callers within Australia) or +61 2 9290 9611 (for callers outside Australia) or visit http://www.sevengroup.com.au.

Yours sincerely

Mr Kerry Matthew Stokes AC Chairman, Board of Directors Seven Group Holdings Limited

1 KPMG Financial Advisory Services (Australia) Pty Ltd (of which KPMG Corporate Finance is a division) hereinafter referred to as KPMG Corporate Finance.

Important information

Explanatory Memorandum

This Explanatory Memorandum has been prepared for the TELYS4 Holders in connection with the meeting to be held on 24 September 2018. The purpose of this Explanatory Memorandum is to provide the TELYS4 Holders with important explanatory information that SGH believes to be material to deciding whether or not to approve the Resolution detailed in the Notice of Meeting.

This Explanatory Memorandum forms part of the accompanying Notice of Meeting and should be read in conjunction with it.

Board of Directors

In considering whether to vote in favour of the Resolution, the Board of Directors of SGH encourages you to:

• · carefully read the whole of this Explanatory Memorandum (including the Independent Expert's Report);
• · have regard to your individual risk profile, portfolio strategy, taxation position and financial circumstances; and
• · obtain financial advice from your broker or financial adviser on the Conversion Proposal and obtain taxation advice on the effect of the Conversion Proposal being implemented.

They also encourage you to attend the Meeting and vote in person or by proxy.

Not an offer

This Explanatory Memorandum is not an offer of securities. None of the TELYS4 or Ordinary Shares have been or will be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration except in transactions exempt from or not subject to the registration requirements of the Securities Act.

Definitions

Terms and abbreviations used in the Notice of Meeting and Explanatory Memorandum are defined in Annexure B.

Important Information on the Conversion Proposal

1.1 The Conversion Proposal

As explained in section 1.2 below, there have been significant market and other changes since the TELYS4 were issued, which have impacted on their market price of TELYS4.

SGH is putting forward a proposal which provides an opportunity for TELYS4 Holders to have their TELYS4 converted into Ordinary Shares in SGH. Under this proposal, a meeting of TELYS4 Holders will be held to vote on changes to the rights of TELYS4 Holders.

The proposal gives you the opportunity to receive 4.60645 Ordinary Shares for each TELYS4 you hold. If the vote is passed, each TELYS4 will be converted into 4.60645 Ordinary Shares, and you may elect to sell up to 50% of your TELYS4 for cash, at a price of at least $88.00 per TELYS4.

The conversion ratio of 4.60645 Ordinary Shares per TELYS4 has been calculated as the ratio required to deliver $92.50 value for each TELYS4 held, based on the 30 day volume average weight price (VWAP) of Ordinary Shares. This ratio represents a premium of 14% to the 30 day VWAP of the TELYS4 and a 15% premium based on the closing prices of the TELYS4 and the Ordinary Shares as at 21 August 2018. Note that, at the time of conversion, the market price of the Ordinary Shares into which each TELYS4 will convert could be more or less than $92.50 depending on trading prices at that time which TELYS4 Holders can check at asx.com.au. The cash price of $88.00 offered under the Partial Cash Exit Opportunity represents a 8.5% premium to the closing TELYS4 price as at 21 August 2018.

If you would like each of your TELYS4 to be converted into Ordinary Shares even if the vote is not passed, you can also elect to have them convert on that scenario. However, the Partial Cash Exit Opportunity will only apply if the vote is passed.

The proposed conversion is not a conversion under the existing conversion terms of the TELYS4. The current terms do not give TELYS4 Holders any rights to have their TELYS4 converted other than when there has been a breach of the dividend or capital restrictions. No such breach exists.

Those terms do give SGH a right to convert the TELYS4. However, having regard to the relative trading prices of TELYS4 and Ordinary Shares over the past ten years, SGH does not consider it appropriate to exercise those conversion rights. SGH does not view that as consistent with the best interests of SGH or Ordinary Shareholders.

Therefore, SGH is providing this opportunity for TELYS4 Holders to consider, and vote on, whether they wish to convert each TELYS4 into 4.60645 Ordinary Shares.

1.2 Why is SGH proposing these changes?

SGH has been approached by a number of TELYS4 shareholders who have sought to understand why the TELYS4 shares have not enjoyed the share price rally experienced by the Ordinary Shares. Given the nature of the TELYS4 share, as a perpetual noncumulative share with limited rights, the market since the Global Financial Crisis has not applied the same valuation principles to securities like the TELYS4. As a result, the TELYS4 and their former TELYS3 have traded well below their face value since 15 January 2008.

The graph below highlights the value and volume of TELYS4 trades since the formation of SGH which has seen the register trade over 1.2 times at a weighted average price of $81.69.

Since March 2018, the TELYS4 have traded down approximately 8%. This coincided with the announcement of potential tax reform2 which could impact the refundability of excess imputation credits. The proposed reform, if enacted, would prevent future cash refunds for excess imputation credits for individuals and superannuation funds. Under the proposal, imputation credits would only be a non-refundable tax offset and cash refunds would not arise if imputation credits exceed tax liabilities. Such a policy change, if enacted, would impact a significant number of TELYS4 shareholders. Although it is not known whether this proposal will be enacted, its announcement has impacted TELYS4 and other similar securities across the market.

2https://d3n8a8pro7vhmx.cloudfront.net/australianlaborparty/pages/7652/attachments/original/1520827674/180313\_Fact\_S heet_Dividend_Imputation_Reform.pdf?1520827674

As such, the potential for tax reform placing further pressure on the TELYS4 price has motivated SGH to consider the restructure option.

1.3 Choices open to TELYS4 Holders

SGH has designed this Conversion Proposal to offer you flexibility by providing you with options with respect to your TELYS4. Some of these options will only be available if the vote is passed. However, a conversion option is also available to you if the vote does not pass but you would still like each of your TELYS4 to be converted into 4.60645 Ordinary Shares.

The choices that are open to you are described below.

1.3.1 Choices open if the vote passes

If the Resolution to approve the Conversion Proposal is passed, you will have the option of electing to participate in either:

• · Full Conversion by having all of your TELYS4 converted into Ordinary Shares; or
• · the Partial Cash Exit Opportunity by having 50% of your TELYS4 converted into Ordinary Shares with the option of selling the balance for cash for a minimum price of at least $88.00.

Full Conversion and the Partial Cash Exit Opportunity are described in sections 1.4 and 1.6 below respectively.

If, following approval of the Resolution, you elect the Partial Cash Exit Opportunity, you also have the option of either:

• · selling the balance of your TELYS4 on the market using the broker appointed by SGH; or
• · selling all, or a specified portion, of your TELYS4 on the market using your own broker.

The details of these options are set out in section 1.7.

1.3.2 Choices open if the vote does not pass

You have the option to elect to convert your TELYS4 into Ordinary Shares even if the vote is not passed. If you opt for this, on conversion, you will receive 4.60645 Ordinary Shares for each TELYS4 you hold.

The details of this option are described in section 1.8.

1.4 Full Conversion

Full Conversion allows you to convert all of the TELYS4 you hold into Ordinary Shares.

For each TELYS4 you hold, you will receive 4.60645 Ordinary Shares. Conversion will occur on 27 September 2018.

1.5 How do I participate in the Full Conversion?

If the vote is passed, all of your TELYS4 will be converted into Ordinary Shares in accordance with the Full Conversion unless you elect to participate in the Partial Cash Exit Opportunity.

1.6 Partial Cash Exit Opportunity

If the vote is passed, the Partial Cash Exit Opportunity will apply. Under the Partial Cash Exit Opportunity, you can elect to have only 50% of the TELYS4 you hold converted upfront, and to sell up to 50% for cash.

Initially, 50% of the TELYS4 you hold will be converted into 4.60645 Ordinary Shares per TELYS4 on 27 September 2018.

The remaining 50% of your TELYS4 can then be sold on the market. On 28 September 2018, SGH will stand in the market with offers to purchase any TELYS4 at $88.00. Other buyers in the market may offer to buy your TELYS4 at a higher price than $88.00, in which case you may achieve a higher price for your TELYS4. However, at a minimum, you would receive $88.00 for any TELYS4 you offer for sale under the Partial Cash Exit Opportunity.

SGH will appoint a Sale Facility Broker, who can sell all of your TELYS4 on your behalf if you so elect. If you opt to use the Sale Facility Broker, you will receive the net average proceeds of all TELYS4 sold by the Sale Facility Broker. No brokerage fees will be payable for your use of the Sale Facility Broker

Alternatively, you can, at your own cost, instruct your own broker to sell some, or all, of your TELYS4 for cash. This is explained further in section 1.7 below.

If you elect to use your own broker, the sale broker appointed by SGH will not sell your TELYS4 for cash. It will be up to you to instruct your own broker to sell them. If you have not sold all your remaining TELYS4 by 5.00pm on 28 September 2018, any remaining TELYS4 you own will be converted into 4.60645 Ordinary Shares per TELYS4 on 4 October 2018.

1.7 How do I participate in the Partial Cash Exit Opportunity?

The Partial Cash Exit Opportunity will only apply if the vote is passed.

To participate in this opportunity, you must complete the Election Form in Annexure E and send it to SGH in accordance with the instructions on the Election Form by 22 September 2018.

If you do not send in a completed Election Form by 22 September 2018 and the vote is passed, you will be taken to have elected Full Conversion and all of your TELYS4 will be converted into Ordinary Shares under the process described in section 1.4 above.

As mentioned in section 1.6 above, you have the option of selling your TELYS4 through the SGH appointed Sale Facility Broker or through your own broker. You can make this selection on your Election Form. If you elect to use the Sale Facility Broker, you also authorise and provide consent for 50% of the TELYS4 you hold to be transferred to a

custodian of SGH's choosing once the resolution to approve the Conversion Proposal is passed to facilitate the sale of 50% of your TELYS4 through the Sale Facility.

If your Election Form does not specify whether you will sell through the Sale Facility Broker, or through your own broker, you must sell your TELYS4 through your own broker.

1.8 Voluntary Conversion

To give TELYS4 Holders maximum flexibility, SGH is also offering you the opportunity to have your TELYS4 converted into Ordinary Shares even if the vote is not passed.

You can opt to have each of your TELYS4 converted into 4.60645 Ordinary Shares in the event that the Resolution for the Conversion Proposal is not approved.

This conversion is scheduled to occur on 27 September 2018, if the vote does not pass.

The Partial Cash Exit Opportunity will not apply on this scenario. It will only be available if the vote is passed.

To take advantage of this Voluntary Conversion opportunity, you must select the "Voluntary Conversion" option on your Proxy Form.

If you return both the Partial Cash Election Opportunity Election form and a Proxy Form with "Voluntary Conversion" selected, you will participate in the Partial Cash Exit Opportunity if the vote is passed. If the vote is not passed, your TELYS4 will be converted in full under the Voluntary Conversion.

1.9 Board Recommendation

As explained further in section 2.1 below, the SGH Board unanimously recommends that you vote in favour of the Conversion Proposal. Sections 2 and 3 set out various advantages and disadvantages which the SGH Board encourages you to read in considering how to vote.

1.10 Independent Expert's Report

SGH commissioned KPMG Corporate Finance as an independent expert to prepare a report expressing its opinion as to whether the Conversion Proposal is in the best interests of the TELYS4 Holders.

The Independent Expert's Report contained in Annexure C, expresses the opinion that the Conversion Proposal is in the best interests of TELYS4 Holders.

1.11 Impact of the Conversion Proposal on SGH

If the Conversion Proposal proceeds, the capital structure of SGH would consist of Ordinary Shares and the equity aspect of the $350 million convertible notes issued in February 2018. The benefit to SGH of a unified TELYS4 and ordinary capital structure is that it is expected to increase SGH's market capitalisation by approximately $460 million, which would effectively increase the number of Ordinary Shares that can be freely traded – the free float – by 4.4%, to a total of 339,349,949.

By increasing the free float, the likelihood of SGH's inclusion on relevant ASX and MSCI indexes also increases, as those indexes are free float-adjusted. This may drive incremental demand for Ordinary Shares post the conversion being undertaken, as institutions with passive index investment mandates look to increase their Ordinary Shareholding to eliminate tracking error.

The Conversion Proposal will also generate a cash saving to SGH of approximately $14.2 million per annum given the difference in current dividend rates between the

TELYS4 and Ordinary Shares. As such, the Conversion Proposal, if implemented, is expected to increase SGH's earnings per share and to preserve franking credits compared to the current position.

1.12 TELYS4 Holder approval

The Conversion Proposal is a variation of the class rights attached to the TELYS4 which can only proceed with the approval of TELYS4 Holders. This is because the proposal involves a variation to your rights as a TELYS4 Holder.

Annexure A sets out the Resolution which, if passed, will allow for the Conversion Proposal to go ahead by amending the TELYS4 Terms. The Resolution requires approval by a special majority (more than 75%) of votes cast on the resolution by TELYS4 Holders who are present at the Meeting (in person or by proxy). You may elect Voluntary Conversion of your TELYS4 even if the vote is not passed. However, the Partial Cash Exit Opportunity will not apply in that scenario.

1.13 Timing

The indicative timetable for the Conversion Proposal is as follows:

Event	Date
Announcement of Conversion Proposal	22 August 2018
Last day of trading of TELYS4	21 September 2018
Suspension of trading of TELYS4	24 September 2018, market open
Meeting of TELYS4 Holders	24 September 2018, 4.00pm
First Conversion Record Date	25 September 2018, 7.00pm
First Conversion Date and Ordinary Sharesissued	27 September 2018
Trading of First Conversion Date OrdinaryShares commences	28 September 2018
Suspension of trading of TELYS4 lifted	28 September 2018
Day of trading for on-market sale ofTELYS4	28 September 2018
Suspension of trading of TELYS4	28 September 2018, close of trade
Second Conversion Record Date	2 October 2018, 7.00pm

Second Conversion Date and Ordinary
Shares issued

4 October 2018

Trading of Second Conversion Date Ordinary Shares commences 5 October 2018

SGH reserves the right to amend this timetable at any time and for any reason. Any amendments will be notified to shareholders via an announcement to ASX.

2 Key reasons to vote in favour of the Resolution

2.1 Board recommendation

The Board unanimously recommends that you vote in favour of the Resolution. In reaching their recommendation, the Board has considered:

• · The advantages of the Conversion Proposal, as set out in section 2;
• · The disadvantages of the Conversion Proposal, as set out in section 3;
• · The other relevant considerations set out in this Explanatory Memorandum; and
• · The expression of opinion of the Independent Expert, as set out in Annexure C.

Mr Ryan Stokes and Mr Terry Davis, each of whom hold TELYS4 have indicated that they intend to vote their TELYS4 in favour of the Conversion Proposal.

2.2 Independent Expert conclusion

The Independent Expert has concluded that the Conversion Proposal is in the best interests of TELYS4 Holders.

2.3 SGH capital structure

Over the last ten years the TELYS4 have been thinly traded at a substantial discount to their Face Value. The unification of these two elements of SGH's capital structure would increase the free float of SGH. The conversion into Ordinary Shares is therefore expected to result in TELYS4 Holders being able to sell their shares post conversion in a more liquid market than the TELYS4 market.

In support of this liquidity, it is noted that the average daily volume in dollar terms of Ordinary Shares traded over last financial year exceed average daily volume in dollar terms of TELYS4 traded by 34.6 times or 3,466%.

As such, post conversion, any TELYS4 shareholders who elect to sell their Ordinary Shares will be less likely to move the market, as they will proportionally represent a smaller proportion of the average daily volume of Ordinary Shares traded than they would have as an overall proportion of TELYS4 traded.

2.4 Premium on market price

Assuming all TELYS4 are converted, the conversion ratio represents a 15% premium being received by the TELYS4 Holders on their market prices as at announcement.

The amended conversion terms also provide an option for TELYS4 Holders to monetise up to 50% of their holding at a minimum amount which represents a 8.5% premium to the closing TELYS4 share price as at 21 August 2018.

The fact that TELYS4 Holders have 28 days to consider the Conversion Proposal before they are required to vote will allow them to see whether the price of the Ordinary Shares trades above the effective price used in the conversion ratio post announcement and thus obtain visibility as to how the market values the Conversion Proposal.

Finally, if the vote is passed, the Partial Cash Exit Opportunity provides each TELYS4 Holder with an option to sell 50% of their TELYS4 at $88.00 which is a premium to where the TELYS4 are currently trading, with all resulting costs of sale being met by SGH.

2.5 Proposed Tax Reform

Voting in support of the conversion also mitigates the risk posed by the pre-election tax reform proposal which, if enacted, would effectively reduce the value of imputation credits and therefore the future value of the TELYS4.

2.6 Comparative Total Shareholder Return

The total shareholder return for the past five financial years being the period from 1 July 2013 to 30 June 2018 for the Ordinary Shares was 31%, and for TELYS4 was a loss of 1.3%. Past performance is not a reliable indicator of future performance, and the price and total shareholder return of Ordinary Shares could fall. However, this illustrates that the market since the Global Financial Crisis has not applied the same valuation principles to TELYS4 as to Ordinary Shares, and that, absent the Conversion Proposal, market conditions have been challenging for the TELYS4.

2.7 Voting Rights

TELYS4 shares currently have limited voting rights which effectively only arise where the dividend stopper has been invoked. By contrast, the Ordinary Shares have full voting rights and Ordinary Shareholders can participate in major decisions impacting SGH which require a shareholder vote.

3 Reasons why you may consider voting against the Conversion Proposal Resolution

3.1 Disagree with the recommendation of the Board

Despite the unanimous recommendation of the Board to vote in favour of the Resolution, you may believe that the Conversion Proposal is not in your best interests.

3.2 Disagree with the conclusion or reasoning of the Independent Expert

Despite the expression of opinion of the Independent Expert that the Conversion Proposal is in the best interests of TELYS4 Holders, you may believe that the proposal is not in your best interests.

3.3 Yield Preference

You may prefer to keep the TELYS4 as they currently represent a higher yielding security relative to the Ordinary Shares you would receive under the Conversion Proposal.

3.4 Ordinary Share price movement

The Ordinary Shares may be more susceptible to price volatility given that SGH operates in markets which are sensitive to economic cycles. As noted above, the Ordinary Shares may fall in price, and this potential volatility may offset or outweigh the potential for an increase in the total shareholder return as described in section 2.6.

4 Taxation Considerations

The tax outcomes of the Conversion Proposal will vary depending on your circumstances. It is therefore recommended that you consult with your taxation professional regarding your particular circumstances.

Introduction

This summary has been prepared as a general guide based on Australian tax legislation and practices current as at the date of this Explanatory Memorandum.

It assumes that the income tax consequences of the conversion of your TELYS4 are determined under the Capital Gains Tax ("CGT") provisions – this will not be the case, for example, if you are a share trader and hold TELYS4 as a revenue asset.

Has the ATO issued a ruling about the Conversion Proposal?

SGH previously requested and obtained a Class Ruling from the Australian Tax Office ("ATO") in 2010 (Class Ruling 2010/14) – publicly available on the ATO website.

CR2010/14, at Paragraphs 37, 38 and 71-81 outlined the tax considerations of a conversion of TELYS4 Holdings into Ordinary Shares under the current TELYS4 Terms.

SGH has requested that the ATO issue an addendum to CR2010/14 on your behalf in relation to the tax implications of the Conversion Proposal, confirming the tax outcomes outlined in CR2010/14 will remain the same under the Conversion Proposal.

SGH has a received an in-principle confirmation and a draft copy of the addendum from the ATO that the tax implications outlined in CR2010/14 regarding conversion of TELYS4 into Ordinary Shares will continue to apply should the Conversion Proposal be approved by TELYS4 Holders.

Formal confirmation from the ATO cannot be given until such time as the Conversion Proposal is approved by TELYS4 Holders. However, this summary accords with what SGH anticipates the final addendum will say, based on the non-binding ATO confirmation that SGH has received.

How will I be able to see a copy of the addendum?

After the addendum is issued, it will be available on the ATO website. A link will also be posted on the SGH website at www.sevengroup.com.au to the addendum and CR 2010/14.

Conversion of a TELYS4 into an SGH share - CGT event

The conversion of a TELYS4 into an Ordinary Share and the entitlement to allotment of an additional number of Ordinary Shares will not give rise to a CGT event for a TELYS4 Holder pursuant to Division 104 of the Income Tax Assessment Act 1997 ("the Act").

Once the TELYS4 are converted, the rights attached to TELYS4 which equate to the rights attached to one Ordinary Share will take effect and all other rights under TELYS4 will no longer apply. Each TELYS4 will entitle the holder to be allotted an additional number of Ordinary Shares.

Shares are comprised of a bundle of rights; however, those rights are not separate pieces of property capable of being divided out and held separately. Accordingly, the rights attaching to shares do not constitute individual assets as defined by section 108-5 of the Act, but rather combine to make up the relevant CGT asset, being the share (Taxation Ruling TR 94/30).

Under section 104-25 of the Act, CGT event C2 happens if, among other things, the ownership of an intangible asset, such as a preference share, ends by the share:

• · being redeemed or cancelled (paragraph 104-25(1)(a)); or
• · if the share is a convertible interest being converted (paragraph 104-25(1)(f)).

The mere variation of rights attaching to TELYS4 and allotment of an additional number of Ordinary Shares is not a 'redemption' or 'cancellation' of the share under paragraph 104-25(1)(a) the Act. Further, the conversion of TELYS4 does not involve TELYS4 being converted into equity interests under paragraph 104-25(1)(f), but rather, is consistent with a 'Conversion' as defined according to the TELYS4 Terms.

For completeness we note, that although CGT event C2 does not happen because of the variation of the rights attaching to TELYS4, the receipt of money or other consideration in respect of such a variation may attract the operation of CGT event H2 (paragraphs 10 and 46 to 48 of TR 94/30). Under the proposed amendment to the conversion terms no cash nor other consideration is being provided.

The Conversion Proposal of TELYS4 involving the allotment of additional number of Ordinary Shares will result in an adjustment to the cost base and reduced cost base of TELYS4 under subsection 130-20(3). Accordingly, CGT event H2 does not happen on the conversion of TELYS4 involving the allotment of additional number of Ordinary Shares. It follows from the above that no CGT event happens as a result of the Conversion Proposal.

The issue of bonus shares will not be a dividend because the share issue will be debited to the share capital account of SGH for accounting purposes (paragraph (d) of the definition of 'dividend' in subsection 6(1) of the Income Tax Assessment Act 1936).

What is my tax cost base of the Ordinary Shares?

A TELYS4 Holder is to apportion the first element of their cost base and reduced cost base for the TELYS4 in a reasonable way over both the converted TELYS4 and the additional Ordinary Shares in accordance with section 130-20 of the Act.

Pursuant to Item 1 of the table in subsection 130-20(3) of the Act, a TELYS4 Holder will be taken to have acquired the additional Ordinary Shares when they acquired the original TELYS4 and the TELYS4 Holder is to apportion the first element of their cost base and reduced cost base for the TELYS4 in a reasonable way over both the converted TELYS4 and the additional Ordinary Shares.

What if I choose the Partial Cash Exit Opportunity?

If you choose the Partial Cash Exit Opportunity, the normal CGT rules will apply to 50% of your TELYS4 and we recommended that you consult with your taxation professional as the outcome will vary subject to your personal circumstances.

5 Additional information

5.1 Disclosure of Information

SGH is subject to regular disclosure and reporting obligations under the ASX Listing Rules and the Corporations Act.

As a company listed on the ASX, SGH is under an obligation, subject to certain exceptions, to immediately disclose any information which SGH has that a reasonable person would expect to have a material effect on the price or value of SGH's securities.

Copies of information disclosed by SGH under its disclosure and reporting obligations is available on ASX's website at www.asx.com.au.

5.2 Rounding

Where the total number of Ordinary Shares to be allotted to a TELYS4 Holder under the Conversion Proposal is a fraction, that fraction will be disregarded. This approach to rounding is consistent with the approach taken to rounding generally in clause 3.7(c) of the TELYS4 Terms.

5.3 Holder approved Conversion

The proposed clause to which the Resolution refers – that is, the proposed amendment to the TELYS4 Terms to implement the Conversion Proposal is set out below:

'3.11 HOLDER APPROVED CONVERSION

• (a) This clause 3.11 applies not withstanding any other clause in these Terms of Issue.
• (b) Each TELYS4 confers all of the rights attaching to one fully paid Ordinary Share but these rights do not take effect until the time specified in clauses 3.11(c) or 3.11(j) below.
• (c) Subject to clauses 3.11(d) and 3.11(e) below, the Company must at 5.00pm (Sydney time) on 27 September 2018 convert either:
  • 1. all the TELYS4 held by a Holder; or
  • 2. 50% of the TELYS4 held by a Holder,

entitling the Holder to be allotted an additional number of Ordinary Shares equal to one less than 4.60645 Ordinary Shares per TELYS4. On and from this time:

• 3. all other rights and restrictions conferred on that TELYS4 under these Terms of Issue will no longer have effect; and
• 4. the shares issued will rank equally with all other fully paid Ordinary Shares then on issue and the Company will issue a statement that the holder of those shares holds a specified number of shares so ranking.
• (d) Subject to clause 3.11(e), at any time prior to 4.00pm on 22 September 2018, a Holder may elect either for the conversion of:
  • 1. all of the TELYS4 held by that Holder (Full Conversion); or
  • 2. 50% of the TELYS4 held by that Holder in (Partial Cash Exit Opportunity),

and the Company must make the conversion in clause 3.11(c) in accordance with the Holder's election.

• (e) If a Holder does not make an election in accordance with clause 3.11(d), that Holder will be deemed to elect Full Conversion.

• (f) In respect of the Partial Cash Exit Opportunity, the Company must, at its own cost:

  • 1. appoint a sale broker who may sell TELYS4 on ASX on behalf of Holders (Sale Broker); and

• 2. stand in the market on ASX for one trading day being 28 September 2018 (Buy-back Date) with orders to buy any TELYS4 which are offered for $88.00,

• (g) Subject to clause 3.11(h), if a Holder elects the Partial Cash Exit Opportunity, that Holder may elect to:

  • 1. sell all of the TELYS4 they hold through the Sale Broker; or
  • 2. sell the TELYS4 they hold through a broker of their own choosing by instructing that broker to sell either:
    • i. all of the TELYS4 held by that Holder; or
    • ii. any other amount of TELYS4 held by that Holder.

• (h) If a Holder does not make an election in accordance with clause 3.11(g), that Holder will be deemed to elect to sell through their own broker.

• (i) On the Buy-back Date, a Holder's TELYS4 will be offered for sale on the market in accordance with their election under clause 3.11(g).

• (j) On 4 October 2018, being the fourth trading day after the Buy-back Date, at 5:00pm (Sydney time) the Company must Convert any TELYS4 held by a Holder , entitling the Holder to be allotted an additional number of Ordinary Shares equal to one less than 4.60645 Ordinary Shares. On and from this time:

  • 1. all other rights and restrictions conferred on that TELYS4 under these Terms of Issue will no longer have effect; and
  • 2. the shares issued will rank equally with all other fully paid Ordinary Shares then on issue and the Company will issue a statement that the holder of those shares holds a specified number of shares so ranking.

• (k) The operation this clause 3.11 does not constitute the cancellation, redemption or termination of the TELYS4 or an issue, allotment or creation of a new share (other than the additional Ordinary Shares allotted under clauses 3.11(c) and 3.11(j))

• (l) Where the total number of additional Ordinary Shares to be allotted to a Holder on conversion of their TELYS4 under this clause 3.11 includes a fraction, that fraction will be disregarded.

• (m) The Company must use all reasonable endeavours and furnish all such documents, information and undertakings as may be reasonably necessary in order to procure and maintain, at its own expense, quotation of the additional Ordinary Shares on the Australian Securities Exchange.

• (n) Each TELYS4 Holder:

  • 1. must provide all documentation and execute any authorisation or power necessary, and take all other action necessary or desirable, to effect the conversion of the TELYS4 to Ordinary Shares under either clauses 3.11(c) or 3.11(j) above; and
  • 2. appoints the Company and each of its authorised officers severally to be the agent and attorney of the Holder with power in the name and on behalf of the Holder to do all such things and acts including signing all documents, as may be necessary or desirable to be done in order to give effect to this conversion under either clauses 3.11(c) or 3.11(j) above.

• (o) The Company may determine the manner in which any elections made under this clause 3.11 may be made by Holders.'

5.4 Voluntary Conversion Term which has been added to the TELYS4 Terms

5.4.1 Voluntary Conversion Term

On 21 August 2018, SGH added the following clause to the TELYS4 Terms:

'3.10 VOLUNTARY CONVERSION

• (a) This clause 3.10 applies notwithstanding any other provision of these Terms of Issue.
• (b) The Company may, at any time, put forward a proposal to Holders for the conversion of all or some of the TELYS4 on terms the Company deems appropriate (Voluntary Conversion).
• (c) Holders may elect to participate in the Voluntary Conversion.
• (d) Voluntary Conversion of a TELYS4 will only occur if:
  • 1. the Company distributes the terms of the Voluntary Conversion (Voluntary Conversion Terms) to Holders which must include:
    • i. the number of Ordinary Shares that will be issued on conversion (Voluntary Conversion Ratio);
    • ii. how Holders can elect to participate and the time period during which Holders can elect to participate in the Voluntary Conversion;
    • iii. when the Voluntary Conversion will occur (Voluntary Conversion Date);
    • iv. any conditions to the Voluntary Conversion; and
  • 2. the Holder of the TELYS4 elects to participate in the Voluntary Conversion within the time period specified by the Company in accordance with clause 3.10(d)(1)(ii) above.
• (e) Each TELYS4 confers all of the rights attaching to one fully paid Ordinary Share but these rights do not take effect until the Voluntary Conversion Date.
• (f) If the conditions in clause 3.10(d), and any conditions which the Company has specified under clause 3.10(d)(1)(iv), are met, the Company must allot an additional number of Ordinary Shares equal to one less than the Voluntary Conversion Ratio to Holders in accordance with the Voluntary Conversion Terms. On and from the Voluntary Conversion Date:
  • 1. all other rights and restrictions conferred on that TELYS4 under these Terms of Issue will no longer have effect; and
  • 2. the shares issued will rank equally with all other fully paid Ordinary Shares then on issue and the Company will issue a statement that the holder of those shares holds a specified number of shares so ranking.
• (g) The operation this clause 3.10 does not constitute the cancellation, redemption or termination of the TELYS4 or an issue, allotment or creation of a new share (other than the additional Ordinary Shares allotted under clause 3.10(f).
• (h) Where the total number of additional Ordinary Shares to be allotted to a Holder on conversion of their TELYS4 under this clause 3.10 includes a fraction, that fraction will be disregarded.
• (i) The Company must use all reasonable endeavours and furnish all such documents, information and undertakings as may be reasonably necessary

in order to procure and maintain, at its own expense, quotation of the additional Ordinary Shares on the Australian Securities Exchange.

• M Each TELYS4 Holder:
  • 1. must provide all documentation and execute any authorisation or power necessary, and take all other action necessary or desirable, to effect the Voluntary Conversion of the TELYS4 to Ordinary Shares under clause 3.10(f) above; and
  • 2. appoints the Company and each of its authorised officers severally to be the agent and attorney of the Holder with power in the name and on behalf of the Holder to do all such things and acts including signing all documents, as may be necessary or desirable to be done in order to give effect to the Voluntary Conversion under clause 3.10(f) above.
• N TELYS4 may only be converted under this clause 3.10 if, immediately following the conversion, there will remain on issue not Converted or Exchanged TELYS4 with an aggregate Face Value of not less than $100 million. If any Voluntary Conversion is oversubscribed, the Company must endeavour to treat Holders on an approximately equal basis, but may discriminate between Holders to take account of the effect of the conversion on marketable parcels and other factors considered by the Company.'

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• Confirmation that the Conversion Proposal and the Voluntary Conversion does not require a vote of Ordinary Shareholders under Listing Rule 10.11.
• A waiver of Listing Rule 7.33 that allows SGH buy-back TELYS4 at the Partial Cash Exit Opportunity Minimum Price of $88.00, even if that price if more than 5% above the 5 day VWAP.

5.7 Sale Facility

The Sale Facility will be open until 5:00pm Sydney time on 28 September 2018. By appointing the Sale Facility Broker, TELYS4 Holders are electing to sell 50% of the TELYS4 they hold, which will be all their remaining TELYS4 after the initial conversion on 27 September 2018.

If the proceeds of sale of any TELYS4 is more than the Partial Cash Exit Opportunity Minimum Price of $88.00, any amount in excess will be allocated to participating TELYS4 Holders in proportion to the number of TELYS4 sold on their behalf. Therefore, the amount that each TELYS4 Holder receives from the sale of their TELYS4 through the Sale Facility may be more or less than the actual price received by the Sale Facility Broker.

Any expenses (including brokerage fees) relating to the sale of the TELYS4 through the Sale Facility will be paid by SGH.

The market price of the TELYS4 is subject to change from time to time. Up to date information about the market price of the TELYS4 can be obtained from a share broker or by visiting the website of the ASX at www.asx.com.au.

5.8 Change of Law provision in TELYS4 Terms

The TELYS4 Terms provide that SGH may convert or exchange the TELYS4 if a change of law occurred which will:

• materially increase the net costs to the Company of having TELYS4 on issue;
• affect whether TELYS4 can be franked or whether the Holders are entitled to franking credits;
• affect whether TELYS4 are classified entirely as equity for accounting purposes; or
• impose additional requirements that the Directors consider unacceptable.

This change of law provision would not provide impacted TELYS4 shareholders with any protection from the proposed change in imputation law described in section 1.2 above.

Based on the information currently available, the policy, if enacted into law, would not:

• increase the cost to the Company of having TELYS4 on issue;
• affect the classification of TELYS4 as entirely equity; or
• impose additional requirements.

The policy would also not affect whether TELYS4 can be franked or whether the TELYS4 Holders are entitled to franking credits. Although franking credits under the policy may be of less value to TELYS4 Holders because of the removal of the cash refund concession, a reduction in the value of franking credits does not trigger the provision. As long as dividends can still be franked, the change of law provision would not be triggered.

5.9 Directors' and Key Management Interests

The Directors and Key Management Personnel of SGH have relevant interests (held directly, indirectly, beneficially and including their personal related entities) in the following securities of SGH:

As at 30 June 2018	Number of Ordinary Shares	Number of TELYS4
Kerry Matthew Stokes AC	207,304,349	Nil
Ryan Kerry Stokes	378,000	2,500
Annabelle Chaplain	21,339	Nil
Terry James Davis	50,000	15,510
Christopher John Mackay	10,000	Nil
David McEvoy	31,339	Nil
Bruce Ian McWilliam	180,665	Nil
The Hon. Warwick Leslie SmithAM	40,800	Nil
Richard Anders Uechtritz	547,170	Nil
Jarvas Croome	60,144	1,650
Jeff Fraser	3,000	Nil
Richard Richards	45,801	28,245
Murray Vitlich	Nil	Nil

SGH – Directors' and Key Management Personal Interests

6.1 TELYS4 Holder Meeting

SGH is holding a meeting of TELYS4 Holders on 24 September 2018. At the meeting, TELYS4 Holders will be asked to approve the Resolution. The terms of the Resolution to be considered at the Meeting are contained in the Notice of Meeting.

6.2 Am I able to vote at the Meeting?

Instructions on how to attend and vote at the Meeting (in person, by proxy, online or in person through an attorney or body corporate representative) are set out in the Notice of Meeting. Details of TELYS4 Holders' entitlements to vote at the Meeting are also set out in the Notice of Meeting.

Voting is not compulsory. However, the Board unanimously recommends that TELYS4 Holders vote in favour of the Resolution.

The results of the Meeting will be available as soon as possible after the conclusion of the Meeting and will be announced to ASX once available. The results will also be published on SGH's website at www.sevengroup.com.au.

6.3 Resolution approval requirements

The Resolution requires approval by a special majority (more than 75%) of votes cast on the Resolution of by TELYS4 Holders present and voting at the Meeting (either in person or by proxy).

The Conversion Proposal will only proceed if the Resolution is approved. However, as explained in section 1.8 above, TELYS4 Holders will still have the option to have their TELYS4 converted into Ordinary Shares under Voluntary Conversion if the Resolution does not pass.

7 Key Q&A

Q. Why are we proposing the conversion now?

The Conversion Proposal resolution is being proposed as a result of inquiries made by a number of TELYS4 Holders who have not enjoyed the share price rally experienced by holders of the SGH Ordinary Shares. Since 15 January 2008, TELYS4 have been trading significantly below their face value of $100. Your board is also being proactive in relation to the pre-election tax reform proposal which, if enacted, would impact the refundability of excess imputation credits. See section 1.2 for further details.

Q. What are the rights attached to the TELYS4?

TELYS4 are redeemable convertible preference shares with no maturity date. TELYS4

pay a semi-annual, fully franked dividend at a gross margin of 4.75% over the 180-day bank bill swap rate.

Q. What are the advantages and disadvantages of the Conversion Proposal for TELYS4 Holders?

Advantages (see section 2 for further details)

· The conversion ratio represents a 15% premium on the current market price of the TELYS4, based on closing prices as at 21 August 2018.

• · TELYS4 Holders would be able to participate in the more liquid market for Ordinary Shares.
• · Conversion could mitigate the risk posed by the pre-election tax reform proposal in respect of imputation credits.
• · Ordinary Shares confer full voting rights, as opposed to the limited voting rights under the TELYS4.
• · The total shareholder return for the past five financial years being the period from 1 July 2013 to 30 June 2018 for the Ordinary Shares was 31%, and for TELYS4 was a loss of 1.3%. Past performance is not a reliable indicator of future performance, and the price and total shareholder return of Ordinary Shares could fall.

Disadvantages (see section 3 for further details)

• · TELYS4 represent a higher yielding security than the Ordinary Shares.
• · Ordinary Shares may be more susceptible to price volatility.

Q. How will Ordinary Shareholders be affected if the resolution is passed?

The Conversion Proposal does not require the approval of Ordinary Shareholders.

If the Conversion Proposal is approved, and all TELYS4 Holders elect to participate in Full Conversion into Ordinary Shares, the SGH's ordinary share capital will increase by 22,864,741 shares, with a dilutionary effect on Ordinary Shareholders of 7.2%.

If the Conversion Proposal is approved, and all TELYS4 Holders elect to participate in the Partial Cash Exit Opportunity, at least 50% of the TELYS4 on issue would convert. Whether the other TELYS4 would convert would depend on whether SGH bought them back under the on-market buy-back (in which case they would be cancelled) or another buyer paid more than the $88 on-market buy-back price of them, in which case they would convert into Ordinary Shares. On the least dilutive scenario where all TELYS4 were offered in the Partial Cash Exit Opportunity and bought by SGH in the on-market buy-back, SGH's Ordinary Share capital would increase by 11,432,370 Ordinary Shares, with a dilutionary effect on Ordinary Shareholders of 3.6%.

The Conversion Proposal, if the vote passes, would mean that that dual class structure would no longer exist. Ordinary Shareholders would benefit from increased market capitalisation, potential inclusion or increased weighting in various indexes, cash savings and increased expected earnings per share.

Q. How will SGH be affected if the resolution is passed?

The market capitalisation of SGH will increase which increases the likelihood of SGH's inclusion in ASX and MSCI indexes. This may drive incremental demand for Ordinary Shares. The conversion would also generate a cash saving for SGH, resulting in increased expected EPS. SGH's executive incentive plan is subject to diluted EPS, and as such, there will be no impact on the executive incentives as a result of the conversion. See section 1.11 for further details.

Q. What happens if the resolution does not pass?

TELYS4 Holders will still have the option to convert each of their TELYS4 into 4.60645 Ordinary Shares on 27 September 2018 but there will be no opportunity to participate in the Partial Cash Exit Opportunity. See section 1.8 for further details.

Annexure A

Notice of General Meeting of TELYS4 Holders

Seven Group Holdings Limited (ASX: SVW) (Company)

ACN 142 003 469

Notice is given to the holders of the Transferable Extendable Listed Yield Shares (TELYS4) in the Company that a meeting of TELYS4 Holders will be held at the Company's head office at 38-42 Pirrama Road Pyrmont NSW 2009 on 24 September 2018 at 4.00pm (Meeting).

The purpose of the Meeting is to consider, and if thought fit, to pass the resolution referred to in this notice.

The enclosed Explanatory Memorandum has been prepared to provide TELYS4 Holders with an explanation of the Resolution to be proposed and considered at the Meeting. The Board of the Company has commissioned KPMG Corporate Finance (Independent Expert) to prepare an independent expert's report (IER). A copy of the IER is annexed to this Explanatory Memorandum at Annexure C. The Explanatory Memorandum and Independent Expert's Report should be read in conjunction with this Notice of Meeting.

Terms and abbreviations used in this Notice of Meeting and in the Explanatory Memorandum are defined in Annexure B.

Resolution: To consider, and if thought fit, to pass the following resolution as a special resolution:

'That for the purposes of section 246B of the Corporations Act 2001 (Cth), clause 2.3(a)(i) of the Company's constitution and for all other purposes, approval is given for the variation of the rights attaching to the Transferable Extendable Listed Yield Shares (TELYS4) by amending the terms of the TELYS4 by adding the Holder Approved Conversion Term set out in section 5.3 of the Explanatory Memorandum.'

Entitlement to vote: The Board has determined that a person's entitlement to vote at the Meeting will be taken to be the entitlement of that person shown in the Register of TELYS4 Holders at 4.00PM on 22 September 2018.

Voting members can vote in one of two ways:

• 1. by attending the meeting and voting, either in person (or by attorney), or in the case of corporate members, by corporate representative; or
• 1. by appointing a proxy to attend the meeting and vote on their behalf, using the proxy form enclosed with this Notice of Meeting.

Proxies: A TELYS4 Holder entitled to attend and vote at the Meeting has a right to appoint a proxy to attend and vote at the Meeting on their behalf.

A TELYS4 Holder entitled to cast 2 or more votes may appoint not more than 2 proxies and may specify the proportion or number of votes each proxy is appointed to exercise. Where 2 proxies are appointed, and the appointment does not specify the proportion or number of the TELYS4 Holder's votes, each proxy may exercise half of the votes.

If voting members wish to appoint a proxy to vote on their behalf at the meeting, they can do so by completing the proxy form that accompanies this Notice of Meeting and returning it to the Secretary, Seven Group Holdings Limited either:

by mail to the Secretary, Seven Group Holdings Limited, either at:

Company Secretariat, level 4, 38-42 Pirrama Road Pyrmont NSW 2009; or

Boardroom Pty Limited, GPO Box 3993, Sydney NSW 2001

by fax to Company Secretariat on +61 2 2777 7192 or to Boardroom Pty Limited on +61 2 9290 9655; or

online at www.boardroomlimited.com.au

For further instructions on voting, please refer to the proxy form.

Proxy forms must be received by Company Secretariat or Boardroom Pty Limited by 4.00pm on 22 September 2018 (being 48 hours before the commencement of the meeting).

If the proxy form is signed by the member's attorney, the original or an original certified copy of the authority under which the attorney was appointed must accompany the proxy form.

The person appointed as proxy does not need to be a member of the Company, and a member can appoint an individual or a body corporate as a proxy. A body corporate appointed as a proxy must also lodge a Certificate of Appointment of a Corporate Representative.

A member who is entitled to cast two or more votes may appoint up to two proxies and may specify the proportion or number of votes each proxy is appointed to exercise. If a member appoints two proxies and the appointment does not specify the proportion or number of the member's votes each proxy may exercise, each proxy may exercise half the votes.

If a member who has appointed a proxy to vote on their behalf attends or takes part in the meeting, the proxy appointment is not revoked, but if the member votes on any resolution, the proxy is not entitled to vote, and must not vote, as the proxy on that resolution.

Default to the Chairman Any directed proxies that are not voted on a poll at the meeting will automatically default to the Chairman of the meeting, who is required to vote those proxies as directed on the proxy form (the Chairman intends to vote all available proxies in favour of all items of business).

If you are attending this meeting please bring this notice and a photocopy of your proxy form with you.

By order of the Board

sign here ►

Secretary

Proxy Forms:

print name Warren Coatsworth

date 22 August 2018

Annexure B

Glossary and interpretation

The meanings of the terms used in the Notice of Meeting and Explanatory Memorandum are set out below.

Term	Meaning
$	Australian dollar.
ASX	as the context requires, ASX Limited (ACN 008 624 691) or thesecurities market conducted by it.
Board	the board of directors of SGH.
Company or SGH	Seven Group Holdings Limited (ACN 142 003 469).
Conversion Proposal	the proposal to convert the TELYS4 to Ordinary Shares, as detailedin this Explanatory Memorandum.
Corporations Act	the Corporations Act 2001 (Cth).
Election Form	the form attached in Annexure E.
ExplanatoryMemorandum	this document, including the annexures to it.
Face Value	The "Face Value" of the TELYS4 under the TELYS4 Terms, being$100.
First Conversion Date	27 September 2018 or such other date as determined by the Board.
First ConversionRecord Date	25 September 2018, 7.00pm or such other date as determined bythe Board.
Full Conversion	the full conversion described in section 1.4

Term	MeaningKPMG Corporate Finance, the independent expert in respect of theConversion Proposal.
Independent Expert
Independent Expert'sReport	the independent expert's report issued by the Independent Expert inconnection with the Conversion Proposal and attached at AnnexureC.
ITAA	Income Tax Assessment Act 1997 (Cth).
Listing Rules	the official listing rules of ASX.
Meeting	the meeting of TELYS4 Holders to be held at 4.00pm on24 September 2018 at SGH's head office at 38-42 Pirrama RoadPyrmont NSW 2009 convened by SGH pursuant to its constitutionat which TELYS4 Holders will vote on the Resolution.
MSCI	the global equity indexes provided by MSCI Inc.
Notice of Meeting	the notice of meeting relating to the Meeting which is contained inAnnexure A of this Explanatory Memorandum.
Ordinary Share	a fully paid ordinary share in the capital of SGH.
Partial Cash ExitOpportunity	the partial cash exit opportunity described in section 1.5.
Partial Cash ExitOpportunity MinimumPrice	$88.00 per TELYS4.
Proxy Form	the form attached in Annexure D.
Register of Members	the register of members of SGH maintained in accordance with theCorporations Act.
Resolution	the resolution set out in the Notice of Meeting.

Term	Meaning
Sale Facility	the sale facility described in section 1.7.
Sale Facility Broker	the broker to be appointed by SGH in respect of the sale facilitydescribed in section 1.7.
Second ConversionDate	4 October 2018 or such other date as determined by the Board.
Second ConversionRecord Date	2 October 2018, 7.00pm or such other date as determined by theBoard.
Sydney time	the local time in Sydney, New South Wales, Australia.
TELYS4	the 4,963,640 redeemable convertible preference shares known asTransferable Extendable Listed Yield Shares.
TELYS4 Holder	each person who is registered on the Register of Members as theholder of TELYS4.
TELYS4 Terms	The current terms of the TELYS4.
Voluntary Conversion	the conversion mechanism described in section 1.8.
VWAP	volume weighted average price.

Interpretation

In this Explanatory Memorandum, unless the context otherwise requires or appears:

• (a) Other words and phrases not in the glossary have the same meaning (if any) given to them in the Corporations Act.
• (b) Words of any gender include all genders.
• (c) Words importing the singular include the plural and vice versa.
• (d) An expression importing a person includes any company, partnership, joint venture, association, corporation or other body corporate and vice versa.
• (e) A reference to a Section or Annexure is a reference to a section or annexure of this Explanatory Memorandum as relevant.
• (f) A reference to any legislation includes all delegated legislation made under it and amendments, consolidations, replacements or re-enactments of any of them.
• (g) Headings and bold type are for convenience only and do not affect the interpretation of this Explanatory Memorandum.
• (h) A reference to time is a reference to Sydney time.
• (i) A reference to dollars, $, A$, AUD, cents, 㺾 and currency is a reference to the lawful currency of the Commonwealth of Australia.

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Telephone: +61 2 9335 7000 Facsimile: +61 2 9335 7001 DX: 1056 Sydney www.kpmg.com.au

KPMG Corporate Finance ABN: 43 007 363 215

A division of KPMG Financial Advisory Services (Australia) Pty Ltd Australian Financial Services Licence No. 246901 Level 38 Tower Three 300 Barangaroo Avenue Sydney NSW 2000

P O Box H67 Australia Square Sydney NSW 1213 Australia

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KPMG Financial Advisory Services (Australia) Pty Ltd is affiliated with KPMG.

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3.1 Summary of opinion

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If the Conversion Proposal is approved

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3.2 Principal matters considered in forming our opinion

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Implied value of TELYS4s under the Full Conversion option

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Source: KPMG Corporate Finance analysis

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Source: IRESS, KPMG Corporate Finance analysis

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Implied value of TELYS4s under the Partial Cash Exit Opportunity

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Source: IRESS, KPMG Corporate Finance analysis

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TELYS4 Holders will forego the distribution for the six months to 29 November 2018

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Change in risk profile

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Composition of yields and capital gains

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		Part One - Independent Expert's Report	$\mathbf{1}$
1		Introduction	$\mathbf{1}$
$\overline{c}$	Scope of Report2
3	Opinion		$\overline{c}$
	3.1	Summary of opinion	2
	3.2	Principal matters considered in forming our opinion	4
	3.3	Other matters	8
4		Overview of the Conversion Proposal	11
5		Scope of the report	12
	5.1	Purpose	12
	5.2	Basis of assessment	12
	5.3	Limitations and reliance on information	12
6		Overview of Seven Group Holdings Limited	14
	6.1	Corporate structure	14
	6.2	Composition of earnings and financial performance	15
	6.3	Capital structure	15
7		Profile of TELYS4s	16
	7.1	TELYS4 Terms	16
	7.2	Risks	17
	7.3	Composition of TELYS4 Holders	18
	7.4	Yields	18
	7.5	Trading performance	20
8		Profile of Ordinary Shares	24
	8.1	Rights attaching to Ordinary Shares	24
	8.2	Risks	24
	8.3	Composition of Ordinary Shareholders	24
	8.4	Distribution yields	24
	8.5	Relative trading performance	25
9		Impact of the Conversion Proposal on SGH	27
	9.1	Impact on capitalisation, free float and liquidity	27
	9.2	Cash savings	28
	9.3	Simplification of capital structure	29
		Appendix 1 - KPMG Corporate Finance Disclosures	30
		Appendix 2 – Sources of Information	31
		Part Two - Financial Services Guide	33

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6.1 Corporate structure

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6.3 Capital structure

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7.1 TELYS4 Terms

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	Tadie 2: Summary 01 TELYS4 Terms
Issuer	Seven Group Holdings (SGH)
Security	Transferable Extendable Listed Yield Shares (TELYS4) which are non-cumulative,redeemable and convertible preference shares in SGH
Face Value	$100
Dividend rate	Each holder of TELYS4 is entitled to a preferred, non-cumulative, floating rate dividendequal to:Dividend = (Dividend Rate x Face Value x N) / 365 where:$\bullet$N is the number of days from (and including) the preceding dividend payment date until(but not including) the relevant dividend payment dateDividend Rate for each Dividend Period is calculated as: (Market Rate + Margin) x $(1 -$$\bullet$T) where:Market Rate is the BBSW for 180 day bills applying on the first business day ofeach Dividend Period expressed as a percentage per annumMargin is 4.75% per annum٠T means the Australian corporate tax rate applicable to the franking account of SGHas at the relevant dividend payment dateThe dividends are payable in arrears on 31 May and 30 November of each year unless theTELYS4 are converted or exchanged. The payment of dividends is at the Directors' discretionand is subject to there being sufficient funds available for the payment of dividends.
Franking	TELYS4 dividends are fully franked. If a dividend is not fully franked, the dividend will begrossed up to compensate for the unfranked component.
Conversion orexchange by SGH	TELYS4 are perpetual securities and have no maturity. SGH may exchange some or all of theTELYS4 for $100 in cash or convert some or all of the TELYS4 to Ordinary Shares at itselection on any dividend payment date. SGH also has the right to:convert or exchange TELYS4s in certain circumstances including where the SGH$\bullet$Directors resolve that there has been a change or proposed change in a law,interpretation, governmental ruling (including one relating to taxation) or accountingstandard (or interpretation of an accounting standard) which will:materially increase SGH's costs in retaining TELYS4 on issueaffect the franking and availability of franking credits in respect of TELYS4affect whether TELYS4 are classified entirely as equity for accounting purposes, or$\bullet$impose additional, unacceptable requirements on SGH.$\bullet$convert or exchange TELYS4 if a takeover bid or scheme of arrangement is made in٠respect of SGH.SGH cannot elect to convert or exchange only some TELYS4 if such conversion or exchangewould result in there being less than $100 million in aggregate Face Value of TELYS4 onissue.
Dividend andcapital stopper,and conversion orexchange byTELYS4 Holders	If, for any reason, a dividend has not been paid in full within 20 business days after itsdividend payment date, a 'Dividend and Capital Stopper' will come into effect, such that SGHmust not without approval of a TELYS4 Holder special resolution resolve to pay, or pay, acash dividend or make any distribution on any share capital over which TELYS4 rank inpriority for participation in profits, or redeem, reduce, cancel, or acquire for any considerationany share capital of SGH (other than a TELYS4), until (broadly):$\bullet$two consecutive dividends on TELYS4 thereafter have been paid in full$\bullet$an optional dividend has been paid to the TELYS4 Holders equal to the unpaid amount(if any) of the two immediately preceding dividends to which they were entitled but

		Table 2: Summary of TELYS4 Terms
--	--	----------------------------------	--

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Source: IRESS

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Source: Bloomberg Note: Credit spreads represent trading in 3 year corporate bonds with a credit rating between AAA and BBB over the swap rate with a similar term

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7.5.1 Discounts to face value of comparable securities

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Source: Bloomberg, ASX company announcements

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Source: IRESS

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7.5.2 Liquidity

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Source: IRESS

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8.1 Rights attaching to Ordinary Shares

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8.2 Risks

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8.3 Composition of Ordinary Shareholders

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Source: ASX website

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Notes:

1. Based on current number of shares outstanding.

2. KM Stokes; North Aston Pty Limited, Wroxby Pty Limited, Tiberius (Seven Investments) Pty Limited and Ashblue Holdings Pty Limited; Tiberius Pty Limited, Redlake Pty Limited and Tiberius group entities; Australian Capital Equity Pty Limited, Clabon Pty Limited and Australian Capital Equity Pty Limited group entities.

8.4 Distribution yields

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Source: IRESS, KPMG Corporate Finance Analysis

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8.5 Relative trading performance

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Source: IRESS

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8.5.1 Liquidity

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Source: KPMG Corporate Finance analysis

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9.1 Impact on capitalisation, free float and liquidity

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Number of shares ('000):
7(/<6V		(4,964)		(4,964)
6*+2UGLQDU\6KDUHV		22,865		11,432
Comprising:
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)UHHIORDW		22,865		11,432
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30 day VWAP to 21 August 2018:
7(/<6V		$80.25		$80.25
6*+2UGLQDU\6KDUHV		$20.08		$20.08
Capitalisation ($ million):
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6*+2UGLQDU\6KDUHV		$459,137		$229,568
Comprising:
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)UHHIORDW		$459,137		$229,568

Source: KPMG Corporate Finance analysis

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9.2 Cash savings

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Number of shares:
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Distributions per share:
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Total distributions:
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7RWDO		$(14,164)		$(18,966)

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Source: KPMG Corporate Finance analysis Note: Based on latest cash yield of 4.7883%.

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Percentage increase (%)			1.1%		1.2%

Source: KPMG Corporate Finance analysis Note: Assumes interest is saved/(paid) at 4.75%. Interest under the 100% Partial Cash Exit Option relates to the cost of purchasing all TELYS4s for $88.00 per TELYS4.

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Issuer (Group)		Multiplex	NAB	Nufarm Finance	Healthcare	Suncorp-Metway	Macquarie Bank
Security type	Perp/Call	Perp/Call	Perp/Call	Hybrid	Perp/Call	Hybrid	Perp/Call
Ticker	SVWPA	MXUPA	NABHA	NFNG	RHCPA	SBKHB	MBLHB
Moody's credit rating	n/a	n/a	Baa2	n/a	$\frac{a}{2}$	Baal	Bal
S&P rating	n/a	n/a	BBB-	$\stackrel{+}{\mathbb{A}}$	n/a	n/a	n/a
Amount issued (mm)	4.960	4.500	2,000,000	251,000		271,538	400,000
Cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Cumulative	Non-cumulative
Issue date	$1-Jun-05$	19-Jan-05	$12-May-99$	24-Nov-06	24-May-05	26-Nov-98	24-Oct-99
Price ($) / security	81.14	79.99	84.75	82.8	106.6	77.5	86.5
Face value ($) / security	$100	$100	$100	$100	$100	$100	$100
Margin	4.75%	3.90%	1.25%	3.90%	4.85%	0.75%	1.70%
Floating rate benchmark	180 BBSW	90 BBSW	90 BBSW	180 BBSW	$180$ BBSW	90 BBSW	90 BBSW
Benchmark rate	2.09%	2.10%	1.95%	2.18%	2.16%	1.95%	2.03%
Dividend rate	6.84%	$6.00%$	3.20%	6.08%	7.01%	2.70%	3.73%
Franking	100%	n/a	n/a	n/a	100%	n/a	n/a
Distributions	Half-yearly	Quarterly	Quarterly	Half-yearly	Half-yearly	Quarterly	Quarterly
Last coupon date	$31-May-18$	$1 - Ju - 18$	$15 - Aug - 18$	$15-Apr-18$	$20 - App-18$	$15-Aug-18$	$15 - Jul - 18$
Next coupon date	$30-Nov-18$	$30-$ Sep-18	$15-May-19$	$15-0ct-18$	$22-Oct-18$	$15-May-19$	$15-Oct-18$
Grossed-up running yield	8.43%	7.50%	3.78%	7.34%	6.58%	3.48%	4.31%
$H_1 = H_2 = H_3$ . The state of $H_1 = H_2 = H_3$ is the set of $H_2 = H_3$ is the set of $H_3 = H_4$ .

Source: Bloomberg, KPMG Corporate Finance analysis

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ASX: SVWPA

All Correspondence to:

By Mail Boardroom Pty Limited GPO Box 3993 Sydney NSW 2001 Australia By Fax: +61 2 9290 9655 Online: www.boardroomlimited.com.au By Phone: (within Australia) 1300 737 760 (outside Australia) +61 2 9290 9600

YOUR VOTE IS IMPORTANT

For your vote to be effective it must be recorded before 4:00pm (Sydney time) on Saturday 22 September 2018

TO VOTE ONLINE BY SMARTPHONE

STEP 1: VISIT https:/**/**www.votingonline.com.au/svwpaegm2018

STEP 2: Enter your Postcode OR Country of Residence (if outside Australia)

STEP 3: Enter your Voting Access Code (VAC):

Scan QR Code using smartphone QR Reader App

TO VOTE BY COMPLETING THE PROXY FORM

STEP 1 APPOINTMENT OF PROXY

Indicate who you want to appoint as your Proxy.

If you wish to appoint the Chair of the Meeting as your proxy, mark the box. If you wish to appoint someone other than the Chair of the Meeting as your proxy please write the full name of that individual or body corporate. If you leave this section blank, or your named proxy does not attend the meeting or does not vote in accordance with your instructions, the Chair of the Meeting will be your proxy. A proxy need not be a security holder of the Company. Do not write the name of the issuer company or the registered securityholder in the space.

Appointment of a Second Proxy

If you are entitled to cast two or more votes, you are entitled to appoint up to two proxies to attend the meeting and vote. If you wish to appoint a second proxy, an additional Proxy Form may be obtained by contacting the Company's securities registry or you may copy this form.

To appoint a second proxy you must:

(a) complete two Proxy Forms. On each Proxy Form state the percentage of your voting rights or the number of securities applicable to that form. If the appointments do not specify the percentage or number of votes that each proxy may exercise, each proxy may exercise half your votes. Fractions of votes will be disregarded. (b) return both forms together in the same envelope.

STEP 2 VOTING DIRECTIONS TO YOUR PROXY

To direct your proxy how to vote, mark one of the boxes opposite each item of business. All your securities will be voted in accordance with such a direction unless you indicate only a portion of securities are to be voted on any item by inserting the percentage or number that you wish to vote in the appropriate box or boxes. If you do not mark any of the boxes on a given item, your proxy may vote as he or she chooses, to the extent permitted by law. If you mark more than one box on an item for all your securities your vote on that item will be invalid.

Proxy which is a Body Corporate

Where a body corporate is appointed as your proxy, the representative of that body corporate attending the meeting must have provided an "Appointment of Corporate Representative" prior to admission. An Appointment of Corporate Representative form can be obtained from the Company's securities registry.

STEP 3 – VOLUNTARY CONVERSION ELECTION

If you would like to participate in the Voluntary Conversion opportunity described in section 1.8 of the Explanatory Memorandum, you must mark the box in step 3. If you make this election, your TELYS4 will be converted into Ordinary Shares even if the resolution does not pass.

STEP 4 SIGN THE FORM

The form must be signed as follows:

Individual: This form is to be signed by the securityholder.

Joint Holding: where the holding is in more than one name, all securityholders should sign.

Power of Attorney: to sign under a Power of Attorney, you must have already lodged it with the registry. Alternatively, attach a certified photocopy of the Power of Attorney to this form when you return it.

Companies: this form must be signed by a Director jointly with either another Director or a Company Secretary. Where the company has a Sole Director who is also the Sole Company Secretary, this form should be signed by that person. Please indicate the office held by signing in the appropriate place.

STEP 5 LODGEMENT

Proxy Forms (and any Power of Attorney under which it is signed) must be received no later than 48 hours before the commencement of the meeting, therefore by 4:00pm (Sydney time) on Saturday 22 September 2018. Any Proxy Form received after that time will not be valid for the scheduled meeting

Proxy forms may be lodged using the enclosed Reply Paid Envelope or:

Online	https://www.votingonline.com.au/svwpaegm2018
By Fax	+ 61 2 9290 9655
By Mail	Boardroom Pty LimitedGPO Box 3993,Sydney NSW 2001 Australia
bIn Person	Boardroom Pty LimitedLevel 12, 225 George Street,Sydney NSW 2000 Australia

Attending the Meeting

If you wish to attend the meeting please bring this form with you to assist registration**.**

Seven Group Holdings Limited

ABN 46 142 003 469

Your Address

This is your address as it appears on the Company's share register. If this is incorrect, please mark the box with an "X" and make the correction in the space to the left. Securityholders sponsored by a broker should advise their broker of any changes. Please note, you cannot change ownership of your securities using this form.

PROXY FORM

STEP 1 APPOINT A PROXY

I/We being a TELYS4 shareholder of Seven Group Holdings Limited (Company) and entitled to attend and vote hereby appoint:

the Chair of the Meeting (mark box)

OR if you are NOT appointing the Chair of the Meeting as your proxy, please write the name of the person or body corporate (excluding the registered shareholder) you are appointing as your proxy below

or failing the individual or body corporate named, or if no individual or body corporate is named, the Chair of the Meeting as my/our proxy at the meeting of TELYS4 Holders of the Company to be held at the Company's head office at 38-42 Pirrama Road, Pyrmont, NSW 2009 on Monday 24 September 2018 at 4pm (Sydney time) and at any adjournment or postponement of that meeting, to act on my/our behalf and to vote in accordance with the following directions or if no directions have been given, and to the extent permitted by law, as the proxy sees fit.

The Chair of the Meeting intends to vote all available undirected proxies in favour of all Items of business. If you wish to appoint the Chair of the Meeting as your proxy with a direction to vote against, or to abstain from voting on an item, you must provide a direction by marking the 'Against' or 'Abstain' box opposite that item.

You are able to indicate a portion of your voting rights directly, or instruct your proxy how to vote, by inserting a percentage or number of securities you wish to vote in the For, Against or Abstain box or boxes. The sum of the votes cast by you on each resolution must not exceed your voting entitlement or 100%

STEP 2	VOTING DIRECTIONS* If you mark the Abstain box for a particular item, you are directing your proxy not to vote on your behalf on a show of hands or on a poll and your vote will notbe counted in calculating the required majority if a poll is called.
	Board Recommendation	For	Against	Abstain*

Item 1 Amend the conversion terms of the TELYS4 For

STEP 3	VOLUNTARY CONVERSION ELECTION	As set out in section 1.8 of the Explanatory Memorandum, you may elect to have your TELYS4 converted in accordance with the amended conversion terms,even if the TELYS4 shareholder vote resolution does not pass. You must mark the box below if you would like participate in this opportunity.
Item 2		Even if the vote fails, convert my TELYS4 in accordance with the amended conversion terms
STEP 4	SIGNATURE OF SECURITYHOLDERThis form must be signed to enable your directions to be implemented.
	Individual or Securityholder 1Securityholder 2		Securityholder 3
	Sole Director and Sole Company Secretary	Director	Director / Company Secretary
	Contact Name……………………………………………	Contact Daytime Telephone………………………	Date// 2018

ASX: SVWPA

All Correspondence to:

By Mail	Boardroom Pty LimitedGPO Box 3993Sydney NSW 2001 Australia
By Fax:	+61 2 9290 9655
Online:	www.boardroomlimited.com.au
	By Phone: (within Australia) 1300 737 760
	(outside Australia) +61 2 9290 9600

YOUR PARTIAL CASH EXIT ELECTION IS IMPORTANT

For your Partial Cash Exit Election to be effective this duly completed and signed form must be received at one of the addresses or the facsimile number below not later than before 4:00pm (Sydney time) on Saturday 22 September 2018.

TO ELECT FOR PARTIAL CASH EXIT COMPLETE AND RETURN THIS ELECTION FORM

IMPORTANT NOTE: If you would like to participate in Full Conversion, you should not complete this form. This document is only for use by those TELYS4 Holders who wish to participate in the Partial Cash Exit Opportunity. If you do not complete this form, you will be taken to elect for Full Conversion.

This Partial Cash Exit Opportunity Election Form is for use by those TELYS4 Holders who wish to participate in the Partial Cash Exit Opportunity in respect of the proposal to convert TELYS4 in SGH to Ordinary Shares. Details of the Partial Cash Exit Opportunity and the options open to TELYS4 Holders are set out in sections 1.3, 1.6 and 1.7 of the Explanatory Memorandum. Terms defined in the Explanatory Memorandum have the same meaning when used in this Partial Cash Exit Opportunity Election Form.

Instructions for completing Partial Cash Exit Opportunity Election Form

• 1. (General) This form should be read in conjunction with the Explanatory Memorandum. In particular you should refer to sections 1.4, 1.5,1.6 and 1.7 for information about Full Conversion and the Partial Cash Exit Opportunity.
• 2. (Trustees and nominees) If you hold one or more parcels of TELYS4 as trustee or nominee for, or otherwise on account of, another person, you may, subject to providing to SGH any substantiating information they reasonably require, make a separate Partial Cash Exit Opportunity Election in respect of each of those parcels. For each Partial Cash Exit Opportunity Election you make in respect of only some of your TELYS4, you should
  • (a) Complete Part A under Step 1 of the Partial Cash Exit Opportunity Election Form;
  • (b) Also complete Part B under Step 1 of the Partial Cash Exit Opportunity Election Form by specifying the number of TELYS4 that are the subject of the Partial Cash Exit Opportunity and indicating your acceptance of the certification set out there; and
  • (c) Complete Step 2 of the Partial Cash Exit Opportunity Election Form.
• 3. SGH reserves the right to request any additional substantiating information that it may reasonably require.
• 4. (Variation or withdrawal) A Partial Cash Exit Opportunity Election Form, whether valid or not, is irrevocable once it is made unless SGH agrees, in its absolute discretion, to its revocation.
• 5. (Lodgement) This form (and any power of attorney under which it is signed) must be received at one of the addresses or the facsimile number below not later than 4:00pm (Sydney time) on Saturday 22 September 2018. A Partial Cash Exit Opportunity Election Form received after that time will not represent a valid Partial Cash Exit Opportunity election.

STEP 1 MAKE YOUR ELECTION

If you wish to participate in the Partial Cash Exit Opportunity, you must tick the box in Part A or Part B below.

STEP 2 SALE FACILITY BROKER ELECTION

You can nominate the SGH appointed Sale Facility Broker to sell your TELYS4 or you can appoint your own Broker by completing this section of the form. If you do not make a selection, you must sell your TELYS4 through your own broker.

STEP 3 SIGN THIS ELECTION FORM

The form must be signed as follows:

Individual: This form is to be signed by the securityholder.

Joint Holding: where the holding is in more than one name, all securityholders should sign. Power of Attorney: to sign under a Power of Attorney, you must have already lodged it with the registry. Alternatively, attach a certified photocopy of the Power of Attorney to this form when you return it

Companies: this form must be signed by a Director jointly with either another Director or a Company Secretary. Where the company has a Sole Director who is also the Sole Company Secretary, this form should be signed by that person. Please indicate the office held by signing in the appropriate place.

STEP 4 LODGEMENT

Election Forms (and any Power of Attorney under which it is signed) must be received no later than 4.00pm (Sydney time) on Saturday 22 September 2018. Any Election Form received after that time will not be valid to elect to participate in the partial cash exit.

Election forms may be lodged using the enclosed Reply Paid Envelope or:

By Fax	+ 61 2 9290 9655
By Mail	Boardroom Pty LimitedGPO Box 3993,Sydney NSW 2001 Australia
bInPerson	Boardroom Pty LimitedLevel 12, 225 George Street,Sydney NSW 2000 Australia

Seven Group Holdings Limited

ABN 46 142 003 469

PARTIAL CASH EXIT ELECTION FORM

STEP 1 MAKE YOUR ELECTION

Partial Cash Exit Opportunity Election: If you wish to participate in the Partial Cash Exit Opportunity, you must tick the box in Part A or Part B below.

I/We being a TELYS4 shareholder of Seven Group Holdings Limited (Company) and entitled hereby elect

3DUW$±IRUDOO7(/<6+ROGHUVZKRZLVKWRSDUWLFLSDWHLQWKH3DUWLDO&DVK([LW2SSRUWXQLW\	3DUW%±RQO\IRU7(/<6+ROGHUVZKRKROG7(/<6DVWUXVWHHRUQRPLQHHIRURURQDFFRXQWRIDQRWKHUSHUVRQ
(Please mark ցto indicate your election.)	(Please specify the number of TELYS4 the subject to the Partial Cash Exit Opportunityand mark ցto indicate your certification below.)
	_____________________________________Insert number of TELYS4 here
I/We elect to participate in the Partial Cash Exit Opportunity	I/We certify that the TELYS4 subject to this Partial Cash Exit OpportunityElection represent a separate and distinct parcel of TELYS4 that I/we hold astrustee or nominee for, or otherwise on account of, another person.
NB: If you make an election in part A or part B to participate in the Partial Cash ExitOpportunity you MUST also complete section 2 below. If you do not complete step 2you must sell your TELYS4 through your own broker

STEP 2 SALE FACILITY BROKER ELECTION

You have the option of selling your TELYS4 in the Partial Cash Exit Opportunity either through the SGH appointed Sale Facility Broker or through your own broker. If you do not make a selection below, you will need to sell your TELYS4 through your Broker. If you elect to use the SGH appointed Sale Facility Broker, you authorise and provide consent for 50% of the TELYS4 you hold to be transferred to a custodian of SGH's choosing once the resolution to approve the Conversion Proposal is passed to facilitate the sale of 50% of your TELYS4 through the Sale Facility. Further details about this option are in sections 1.7 and 5.7 of the Explanatory Memorandum.

(Please mark ցto indicate your election.)

Ƒ I/We elect to use the SGH appointed Sale Facility Broker to participate in the Partial Cash Exit Opportunity

OR

Ƒ I/We elect to use my/our own broker to participate in the Partial Cash Exit Opportunity

STEP 3SIGNATURE OF SECURITYHOLDERThis form must be signed to enable your directions to be implemented.
Individual or Securityholder 1	Securityholder 2	Securityholder 3
Sole Director and Sole Company Secretary	Director	Director / Company Secretary
Contact Name……………………………………………	Contact Daytime Telephone………………………	Date/	/ 2018

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