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Damian Arena | Managing DirectorM: +61 419 106 176 | E: [email protected] | W: www.iodm.com.au
Investor Presentation
April 2016
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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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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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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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Capital Structure
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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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Use of funds
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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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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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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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Timetable to listing
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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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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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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
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Resources
2
Resources
3
Resources
3
Resources
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Resources
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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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Road to commercialisation (a numbers game)
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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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Simple revenue profile
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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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The Problem
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Cash flow and
managing
debtors is the
major problem
for all businesses
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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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The Solution
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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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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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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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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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IODM Distribution Model
Multiple Industry Verticals
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Target Market
An end to end solution for the debtor management for a business
Customer
Multiple Industry Verticals
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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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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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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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Thank youThank you
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Mark Reilly | Chairman
Paradigm Metals Ltd
M: +61 418 921 993
www.paradigmmetals.com.au
ABN 28 102 747 133
Damian Arena | Managing Director
IODM Pty Ltd
M: +61 419 106 176
www.iodm.com.au
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