APPLIED FINANCIAL DIAGNOSTICS

Interactive Finance

Interactive Finance A methodology to enhance company value

Utilising triple market techniques(financial, commercial & legal)

to increase returns for companies

Applied Financial Diagnostics Pty LtdDr Richard Allan

Richard.allan@findiag.com.au0412 699 992

Commercial in Confidence: The information in this document is commercial in confidence and may be legally privileged.

Contact Applied Financial Diagnostics for further information 0412 699 992

APPLIED FINANCIAL DIAGNOSTICSInteractive Finance

Interactive Finance©: a methodology for value enhancement USING COMPARATIVE PRICING TO ADD VALUE FOR WOOLGROWERS, WORLD VISION OR THE WORLD BANK

Interactive Finance (IF) is a methodology designed to enable companies to maximise price value and opportunity by comparing relative values.

Interactive Finance utilises triple the financial firepower of either a bank or a legal firm.

Interactive Finance has applications for domestic and international companies, Not-for-Profits, government entities and supranationals.

WHY IF?

Interactive Finance empowers companies by levelling the playing field when dealing with offshore counterparties and with financial institutions.

It has been designed by the business and Not-for Profit sectors to add value and transparency to financial transactions both in Australia and globally.

IF is:

Company driven Operates from a company perspective using corporate language

Forecasting-free Eliminates forecasts of currencies, commodities or rates

Price value-oriented Increases value or confirms optimal value; it cannot decrease value.

CHARACTERISTICS OF INTERACTIVE FINANCE

IF is a user-driven. It simplifies business pricing by comparing prices across commercial, contractual and financial markets and identifying the best value.

IF is similar in operation to other methodologies such as Six Sigma (which focusses on manufacturing processes, not finance).

IF has applications in global capital, currency, equity and commodity markets. 2 | P a g e C o m m e r c i a l i n C o n f i d e n c e

INTERACTIVE FINANCE STRUCTURE

Interactive Finance is a methodology designed to operate as a financial Global Pricing System (GPS) and as a value optimiser.

Interactive Finance addresses three basic business questions: Why? (determining targets) What? (seeking optimal value) and How? (which method or market to use to optimise value)

1. Goal setting:

Profitability Profiler: A set of diagnostics (Strategy Director) corporate executives to assist in enterprise-wide financial planning and operations.

2. Value optimising:

Value Matrix: A value-maximising methodology covering pricing benchmarking. It enables the organisation to identify arbitrages or where it can add value.

Structure of Interactive Finance’s Value Matrix

3. Operations: A financial GPS (Global Pricing System)

Strategic Operations: A strategy-setting methodology (Virtual Treasury GPS) covering marketing, P&L and global pricing opportunities as well

management (Goalseeker GPS)

The company drives the process, and IF the company can determines both the starting point and the goal or destination, Virtual Treasury GPS

methodologies to get there.

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WHY?

WHAT?

WHEN?

Treasury diagnostics Companies

Contract & legal diagnosticsLegal firms

Pre-contract diagnosticsLegal firms

HOW?Value Matrix

Financial Pricing & financial

engineering

ContractualPricing & embedded

options

CommercialIncluding

‘real’ (free) options

WHO?

APPLIED FINANCIAL DIAGNOSTICSInteractive Finance

EXAMPLES OF CONTRACTS ADDING VALUE ADDED THROUGH INTERACTIVE FINANCE

Borrowing: 2014/15: Miners and exporters borrowing at -2% instead of + 2%p.a.

Using forward prices that capture interest rate benefits (NO forecasting, NO speculation)

Selling: July 2015: Sydney $10,000,000 property sale increasing profit from $1,000,000 by 23.8% to $1,238,000

Use currency markets to add additional ‘arbitraged’ profit (NO currency exposure, NO speculation)

Investing: 2014 – 2023: ASX-listed ‘stapled security’ with 10% coupon return increased to an effective rate of 12.2% p.a. Use timing mismatches for FX-free additional ‘arbitraged’ profit

APPLIED FINANCIAL DIAGNOSTICS PTY LTD: COMPANY FINANCIAL STRATEGISTS

Applied Financial Diagnostics (AFD) specialise in financial strategies for commercial companies, for NfPs (e.g. World Vision) & governments/supranationals (e.g. World Bank)

AFD’s goal is to provide Boards and Executives with a strategic business edge through Interactive Finance, a financial diagnostic and valuation methodology.

Interactive Finance triples the analytical firepower of companies by utilising commercial, financial and legal instruments and techniques – not just banks - to optimise company value.

Interactive Finance enables companies to manage any cash flow in any country or currency over any time frame at the optimal available value.

Interactive Finance cannot reduce value. IF either increases value or confirms value.

Applied Financial Diagnostics Dr Richard Allan Richard.allan@findiag.com.au 61-412 699 992

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