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Damian Arena | Managing Director M: +61 419 106 176 | E: [email protected] | W: www.iodm.com.au Investor Presentation April 2016 For personal use only

For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

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Page 1: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Damian Arena | Managing DirectorM: +61 419 106 176 | E: [email protected] | W: www.iodm.com.au

Investor Presentation

April 2016

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Page 2: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Damian Arena | Managing DirectorM: +61 419 106 176 | E: [email protected] | W: www.iodm.com.au

DisclaimerThe information contained in this presentation has been prepared by Paradigm Metals Limited and IODM Pty Ltd (Company).

This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any securities in the

Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

statement or offer information statement. This presentation is not subject to the disclosure requirements affecting disclosure documents under chapter 6D of

the corporations act 2001 (cth). The information in this presentation may not be complete and may be changed, modified or amended at any time by the

company, and is not intended to, and does not, constitute representations and warranties of the Company.

The Company does not have a significant operating history on which to base an evaluation of its business and prospects. Therefore, the information contained

in this presentation is inherently speculative.

The information contained in this presentation has been prepared in good faith, neither the Company or any of its directors, officers, agents, employees or

advisors give any representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions and

conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law, none of the company, its directors, employees or agents,

advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous, statutory or otherwise, in respect of, the

accuracy or completeness of the information or for any of the opinions contained in this presentation or for any errors, omissions or misstatements or for any

loss, howsoever arising, from the use of this presentation.

This presentation may contain statements that may be deemed “forward looking statements”. Forward risks, uncertainties and other factors, many of which are

outside the control of the Company can cause actual results to differ materially from such statements. Such risks and uncertainties include, but are not limited

to, acquisition and retention of customers, commercialisation, technology, third party service provider reliance, competition and development timeframes,

product distribution and usability of IODM’s products depend upon various factors outside the control of the Company including (but not limited to) device

operating systems, mobile device design and operation and platform provider standards, reliance on access to internet, limited operating history and

acquisition and retention of customers, reliance on key personnel, maintenance of key business partner relationships, reliance on new products, management

of growth, brand establishment and maintenance, A number of the Company’s products and possible future products contain or will contain open source

software, and the company licenses some of its software through open source projects, which may pose particular risks to its proprietary software and products

in a manner that could have a negative effect on its business, the Company’s intellectual property rights are valuable, and any inability to protect them could

reduce the value of its products and brand, the Company’s products may contain programming errors, which could harm its brand and operating results, the

company will rely on third party providers and internet search engines (amongst other facilities) to direct customers to IODM’s products, competition, changes

in technology, security breaches, insurance, additional requirements for capital, potential acquisitions, platform disruption, ability to raise sufficient funds to

meet the needs of the Company in the future, Company’s operational history is limited and reliance on key personal, as well as political and operational risks,

and governmental regulation and judicial outcomes.

The Company makes no undertaking to update or revise such statements, but has made every endeavour to ensure that they are fair and reasonable at the time

of making the presentation.

Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ

materially from those projected in any forward-looking statements made.For

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Page 3: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

IODM Pty Ltd (IODM) is a SaaS company specialising in the

development of online debtor management solutions.

IODM is in the process of acquiring Paradigm Metals Ltd (ASX Code:

PDM) via a reverse take over transaction and is undertaking an offer of

shares as part of this transaction. The offer will be made via a

prospectus which will be made available for download on IODM

website: www.iodm.com.au

Potential investors need to consider their own personal circumstances

before making any investment decision to acquire shares. A person

who wishes to purchase shares will need to complete and execute the

application form contained within the prospectus.

Disclaimer

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Page 4: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Transaction Summary

• Reverse Takeover of Paradigm Metals Ltd (ASX Code: PDM) by

IODM Pty Ltd

• Consolidation - 1 for 20

• Prospectus to Raise - $3 million @ $0.04

• Use of Funds – Drive revenue growth

• Shareholders meeting held 29th March 2016

• Prospectus lodged 1st April 2016

• Estimated date of reinstatement is 16th May 2016

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Page 5: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Capital Structure

5

Post consolidation capital structure$3,000,000

Subscription

Number of

Performanc

e Shares

Existing Shares on a post Consolidation basis 48,648,142

To be issued to the Vendors pursuant to the IODM Share Sale Agreement 175,000,000 82,500,000

To be issued to IODM Noteholders pursuant to the IODM Notes 31,250,000

To be issued under the Public Offer 75,000,000

Balance after completion of the Public Offer and the IODM Acquisition 329,898,142

Existing Options 24,543,471

Options to be issued to the Noteholders 15,625,000

Options to be issued to the Lead Manager 12,000,000

Total Options on Issue after Completion of the IODM Acquisition 52,168,471For

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Page 6: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Use of funds

6

Use of funds $3,000,000

Expenses of the Capital Raising (including capital raising fees)$230,000

Corporate Advisory Success Fee$300,000

Sales and marketing of IODM products$500,000

Ongoing technology development$500,000

Corporate and administration (including salaries)$650,000

Repayment of loans and deferred payments$60,000

Working capital $760,000

Total Funds Allocated $3,000,000

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Page 7: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Mark Reilly

Non-Executive Chairman

Damian Arena

Managing Director

Michael Bugelly

Executive Director

Earle Harper

Non-Executive Director

Advisor to the Board

Wayne Schmidt • Key sales specialist in accounting profession

• General Manager for Xero (Australia) – Brought Xero to Australia

• General Manager for MYOB (UK)

Proposed Board – Post Transaction

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Page 8: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Directors and management

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Damian Arena Michael Bugelly Mark Reilly Earle Harper

Managing Director &

Founder

Executive Director Non - Executive

Chairman

Non - Executive

Director

Damian has extensive

commercialisation

experience including of a

management of debt

collection businesses, CEO of

LP Gas 1, Noodle Box Group,

Consolidated Collections.

Damian has a long history as

an investor and executive in

growth companies over 20

years.

A Chartered Accountant with

extensive experience with

KPMG and BDO Wealth

Management.

Experience includes role of

partner in charge of audit

and corporate advice for

public companies and has

specialised advice on all

stages of a business life

cycle.

20 plus years as a Chartered

Accountant and Registered

Liquidator with extensive

experience in mining,

banking and finance

industries.

Mr Reilly is a director of

Forte Energy Limited, Black

Star Petroleum Limited and

Harvest Minerals Limited. He

is a former director of Ochre

Group Holdings Limited.

20 plus years in financial

services including funds

management, private

banking and consulting roles.

Mr Harper has extensive

commercialisation

experience.

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Page 9: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Timetable to listing

9

Event Date

General Meeting held “All resolutions Passed” 29 March 2016

Suspension of PDM’s securities from trading on ASX 29 March 2016

Lodgement of Prospectus with ASIC 1 April 2016

Opening Date of Equity Offer 12 April 2016

Closing Date of Equity Offer 5 May 2016

Dispatch of Holding Statements 12 May 2016

Anticipated date of securities to re-commence trading on ASX 16 May 2016

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Page 10: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

IODM provides an

automated debtor

management solution

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https://vimeo.com/87564245

What does IODM do?

Click here for introductory Video

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Page 11: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Road to commercialisation

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Dec 2011 2012 2013 2014 2015 Feb 2016

Idea of a user

friendly accounts

receivable

application

developed

Discussed and

scoped with

various

stakeholders ,

accountants &

bookkeepers

Initial design &

Functional

specifications

created for first

version. IODM

application is

built.

IODM – Beta Trial

commenced with

feedback and

modifications

IODM develops

API’s with major

bookkeeping

systems (Xero,

MYOB, ETC) and

various platforms.

Robust pipeline

developed

IODM larger

capital raising for

roll out. Major

trials with a Big

Four Bank, Big 4

accounting firm,

contracts with IPA,

Maestrano and

others

Resources

2

Resources

2

Resources

3

Resources

3

Resources

5

Resources

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Page 12: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Road to Commercialisation

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1 March 2016

Major Bank “NAB”

Top 4 Accounting firm “PWC” refer AFR 22 Feb

Distributors

Corporates

Institute of Public Accountants “IPA”

Maestrano refer AFR 22 Feb

December 2016

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Page 13: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Road to commercialisation (a numbers game)

13

1 Million

+ Users

250,000

+ Users

100,000

+ Users

8,000 – 2

Million Est.

users

1,000 users = $1,320,000 per annum

5,000 users = $6,600,000 per annum

10,000 users = $13,200,000 per annum

25,000 users = $33,000,000 per annum

50,000 users = $66,000,000 per annum

Disclaimer: The user number does not represent revenue forecasts or projection of users and is for illustration purposes only.

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Page 14: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Simple revenue profile

14

Free Trail Bronze Silver Gold Platinum Enterprise

Number of Invoices

2 active invoices

20 active invoices

50 active invoices

100 active invoices

250 active invoices

Unlimited

Cost per month

Free $30.00 $60.00 $110.00 $260.00 P.O.A.

Forecastvalue of ONE client p.a.

- $360.00 $720.00 $1,320.00 $3,120.00 -

Notes: Fees are deducted in advance via NAB merchant gateway

Fees are paid monthly

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Page 15: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

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The Problem

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Page 16: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Cash flow and

managing

debtors is the

major problem

for all businesses

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Page 17: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

The Facts

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Source: Debt collection practices in Australia, Summary of stakeholder consultation, Australian Competition and

Consumer Commission

• 18 million hours p.a. are consumed on chasing debtors in

Australia

• 72.5 % of all business invoices are paid late

• 61-90 days outstanding has risen by 22%

• 90+ days outstanding has risen by 15%

• No system and procedure

• Don’t know what to do – NEED HELP

• “90% of SME failure is caused by poor cash flow” Dun & Bradstreet.

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Page 18: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

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The Solution

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Page 19: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

IODM Solution

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• Automation / Innovation

• System and procedure

• Seamless

• Efficiencies

• Improved working capital

• Better use of resources

• Customer Experience

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Page 20: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

IODM Solution

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CSV File

Reminder Letters Debt Collection

Letters

Notice to

Mercantile

Agency

IODM Letters & SMS/Text Alerts

Other Systems

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Page 21: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

The Market Opportunity

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amount of money in unpaid invoices at anyone time in Australia. Source: Late Payment Study by PayPal and Intuit Australia, November 2015

$26 Billion

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Page 22: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Competitive Advantage

1. IODM integrates debtor management and legal representation within

one platform

2. IODM is fully agnostic to what accounting package a business use

3. Certified & Integration Partner Program provides “all players” in the

debtor management process benefit with improved processes and

efficiency

4. Service multiple sectors/industry groups

5. Sits on various distribution platforms e.g. Maestrano

IODM can work with any accounting platform

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Page 23: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

IODM Distribution Model

Multiple Industry Verticals

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Page 24: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Target Market

An end to end solution for the debtor management for a business

Customer

Multiple Industry Verticals

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Page 25: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Our Foundation Clients

35,000+ members and students in over 80 countries. Source: www.publicaccountants.org.au

8,000+ domestic and international clients . Source: www.maestrano.com

1,000 + SME domestic clients. Source: www.thebluerock.com.au

Accounting Practice

Corporate Client

Distribution Platform

NB, IODM has a number of accounting practices using the system

Bank Client

Global Consulting Client

500,000+ SME clients. Source: www.nab.com

Globally recognised consulting practice to Fortune 100 companies. Source: www.pwc.com

Institute of Public

Accountants

NAB

Maestrano

PWC

Blue Rock

AccountingFor

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Page 26: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Positive client impact

Accountant Debtors Outstanding Debt Collected %

Accountant No 1 $33,059 $24,509 74.2

Accountant No 2 $255,744 $192,383 75.2

Accountant No 3 $691,091 $515,157 74.5

Accountant No 4 $944,050 $538,869 58.0

Improvement in outstanding debtors 70.5%

Outcome of accountants using the IODM platform for their own purposes in the last 3 months.

“IODM is amazing, all you have to do is simply upload your invoices into their

software and it then schedules automatic letters and or text message alerts to your

customers. Once you set it up the process is systematic.”Source: 2 Peas Pty Ltd - August 2015

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Page 27: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

What differentiates IODM

• Development of the platform is complete

• Currently operational

• Business is generating revenues now

• Fully resourced to grow business

• Scalable business model

• Fully agnostic

• Robust quality pipeline

• Personnel

• CredibilityFor

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Page 28: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Thank youThank you

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Page 29: For personal use only - ASX · Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile

Mark Reilly | Chairman

Paradigm Metals Ltd

M: +61 418 921 993

E: [email protected]

www.paradigmmetals.com.au

ABN 28 102 747 133

Damian Arena | Managing Director

IODM Pty Ltd

M: +61 419 106 176

E: [email protected]

www.iodm.com.au

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