PRESENTATION February 2018 DISCLAIMER This Investor Presentation - - PowerPoint PPT Presentation

INVESTOR PRESENTATION

February 2018

DISCLAIMER

This Investor Presentation (“Investor Presentation” or the “Document”) has been prepared by Credit Intelligence Holding Limited (Cayman Company No. 0021770) (“CIH” or the “Company”) and is general background information about the Company and its wholly owned subsidiaries (“Credit Intelligence”) activities as at the date of this Presentation. This document is prepared for the benefit and internal use of the recipient (the “Recipient”). It is provided on a confidential basis and the Recipient cannot reproduce in whole or in part any information provided in this Investor Presentation or communicate the information of this Investor Presentation to any third party without the prior written consent of CIH. This document has been prepared on the basis of publicly available information and certain confidential information. CIH has relied upon and assumed, without independent verification, the accuracy and completeness of all such information, including forecasts. It contains selected information and does not purport to be all inclusive or to contain all of the information that may be relevant to the document. The recipient acknowledges that circumstances may change and that this document may become out dated as a result. CIH is under no obligation to update or correct this document. The Company, its affiliates, officers, directors, employees and agents do not accept responsibility or liability for this Investor Presentation or its contents (except to the extent that such liability cannot be excluded by law). No representation or warranty is made as to the Investor Presentation’s accuracy or completeness and CIH assume no obligation to update the Investor Presentation’s information contained herein. Any requests for information in connection with this document should be addressed directly to CIH and to no other party. This Investor Presentation may contain forward-looking statements that involve risks, uncertainties and other factors concerning, among other things, the Company’s expected financial performance and strategic operational plans. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of CIH. The Company’s actual results could differ materially from the results expressed or implied by such forward- looking statements, and reported results should not be considered as an indication of future performance. It is not possible to accurately predict the future revenues or profitability of the Company or whether any revenues or profitability will eventuate. The business of Credit Intelligence is dependent upon a number of factors and many of these factors are outside the control of Credit Intelligence. This document is not a prospectus under Australian law. This document is provided to you on the basis that you are a sophisticated, professional or other investor who would not require a disclosure document because of section 708 of the Corporations Act 2001 (Cth). As it is not regulated by the Corporations Act, this Investor Presentation does not purport to contain all of the information that would be contained in a prospectus or that recipients may require in order to evaluate whether to invest in the Company. Any recipient of this Investor Presentation is responsible for conducting their own due diligence and other enquiries as well as making their own credit analysis and their own independent assessment of the information provided

• herein. You may wish to consult your broker, solicitor, banker, accountant or other professional advisor about its contents. Any decision to rely on the information contained in this Investor

Presentation is the sole responsibility of the recipient of this document and CIH will not be responsible for any loss incurred by the Recipient as a result of any actions taken by them. CIH represents a speculative business and involves a high degree of risk. Nothing in this Investor Presentation constitutes the provision of financial or legal advice. The Recipient should consider its own financial situation, objectives and needs, and conduct its

• wn independent investigation and assessment of the contents of this document, including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or
• appropriate. Further, nothing in this Investor Presentation constitutes an offer for the sale of securities. This Investor Presentation does not constitute an offer or invitation in any place in

which, or to any person to whom, it would not be lawful to make such an offer or invitation. The distribution of this Investor Presentation (including in electronic form) outside Australia may be restricted by law and persons who come into possession of this Investor Presentation outside Australia should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. The information contained in this Investor Presentation is prepared as of 5 December 2017. Neither the delivery of this Investor Presentation nor any offer, issue or sale contemplated by this Investor Presentation at any time implies that the information contained in it is correct, that any other information supplied in connection with the Offer is correct or that there has not been any change (adverse or otherwise) in the financial conditions or affairs of the Company at any time subsequent to the preparation date. In particular, the Company is not under any

• bligation to any person to update this Investor Presentation at any time after an issue of Shares.

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INVESTMENT HIGHLIGHTS

Further expansion by way of potential partnerships and acquisitions of suitable Australian insolvency businesses

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Credit Intelligence is a leading diversified debt restructuring business offering debtors and creditors customised and cost-effective debt solutions

Established Business Expansion into Growth Market

1

Established in Hong Kong with a dominant position in that market and has worked with HSBC, Standard Chartered Bank, Bank of China and Citibank

2

Highly profitable business model achieving an average NPAT of A$1.64m* p.a. over the last 3 years with an average net margin in excess of 60%

3

Experienced board comprises of international insolvency and banking experts

4

Disruptive case management platform developed

• ver the last 8 years allowing the Company to scale

the business at minimum cost

1

Clear plan to grow profitability by entering the highly attractive Australian market

2

Favourable macro conditions with record household debt levels and rising interest rates

4

Now seeking to list on the ASX via an RTO with APAC Coal Limited (“APAC”)

* Refer to slide 7 for further information.

EXPERIENCED BOARD

Jimmie Wong

(Founder and Managing Director) founder of Credit Intelligence with over 20 years’ experience as a leading Hong Kong insolvency lawyer.

Mel Ashton

(Non-Executive Chairman) has over 37 years’ experience as a chartered accountant, 25 years as an insolvency practitioner and turnaround specialist and is currently a director of Hawaiian Group and the non- executive chairman of ASX listed company, Venture Minerals

• Ltd. Mr Ashton is also the former President of Chartered

Accountants Australia and New Zealand and former Vice President of the Fremantle Dockers AFL Football Club.

King Wong

(Head of Operations) joined Credit Intelligence in 2002, holds a Bachelor of Laws degree (Honours) from the City University of Hong Kong and is a practicing solicitor.

Krista Bates

(Non-Executive Director) has over 15 years’ experience as a legal practitioner and has advised on various insolvency and corporate matters including acquisitions, disposals, joint ventures, takeovers, corporate governance and various high profile insolvency cases.

Vincent Lai

(Non-Executive Director) brings 30 years’ experience in international banking & corporate finance to the Company having previously been the senior executive at the PRC Office of Bank of America and the Chairman of a Hong Kong listed company.

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 First revenue is achieved  First profit is achieved  Personal insolvency technology platform launched Credit Intelligence commences providing IVA proposal consultancy services Approx. HK$150,000,000 distributed to creditors Group implements proprietary bankruptcy service platform Proposed ASX listing Credit Intelligence achieves profit milestone

• f HK$10,000,000

Bankruptcy administration services platform launched HK$1,000,000 profit milestone achieved Hong Kong business commences operations

CORPORATE HISTORY

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2002 2003 2004 2009 2010 2012 2013 2015 March 2018

HIGHLY PROFITABLE HONG KONG BUSINESS MODEL

Credit Intelligence’s main business model includes:

• 1. Individual Voluntary Arrangement*
• Average proposal fee of HK$12,000 per case
• Monthly administrative fee of HK$200 per case with average case duration of 60 months
• 2. Bankruptcy Administration Services
• A service offered to creditors in relation to bankrupts with estimated assets valued in excess of HK$200,000
• For each dollar recovered from the bankrupt, Credit Intelligence can charge at least 16% of the recovered assets value
• The Company can also obtain 1% distribution fee over any amount distributed to creditors
• Not less than HK$30,000 for each case (subject to available funds of the case)

* An Individual Voluntary Arrangement (“IVA”) is an agreement between a debtor and a creditor whereby the debtor agrees to pay all or part of its debts by agreeing to make regular payments to a nominee who then distributes the funds between the various creditors, helping debtors avoid bankruptcy whilst providing relief from the constant demands of creditors.

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TRACK RECORD OF PROFITABILITY

Profitable Hong Kong business

• 2017 REV A$3.5m, EBITDA A$1.9m, NPAT A$1.6m
• 2016 REV A$3.5m, EBITDA A$2.1m, NPAT A$1.8m
• 2015 REV A$2.7m, EBITDA A$1.7m, NPAT A$1.4m
• Net margin in excess of 60% on average
• Number of cases has grown 20% per annum on

average since 2011 7

Cases Appointed 2011–2017

Notes: 1. Please refer to Investigating Accountants Report prepared by Moore Stephens for inclusion in Prospectus dated 21 December 2017. 2. On 14 May 2015, Credit Intelligence disposed of an aggregate 9% equity interest in its subsidiary Hong Kong Debt Management Services Limited. A gain on change in the shareholding of Hong Kong Debt Management Services Limited of A$2,521,165 (HK$14.4m) was recognized in the consolidated statements of comprehensive income during the year ended 31 March 2016. This gain has been excluded from our 2016 figures above. 3. Average ex rate during the period reported as follows : 31 Mar 2015: $HK1 = A$0.1473 31 Mar 2016: $HK1 = A$0.1751, 31 Mar 2017: $HK1 = A$0.1713 2011 2012 2013 2014 2015 2016 2017 Cases appointed 440 458 666 708 1136 1089 1400

200 400 600 800 1000 1200 1400 1600

2015 (Audited) 2016 (Audited) 2017 (Audited) REVENUE 2,713,607 3,552,371 3,588,290 EBITDA 1,762,144 2,160,026 1,991,640 NPAT 1,472,430 1,809,440 1,666,872 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000

Excellent Historical Performance 2015-2017

REVENUE EBITDA NPAT

DISRUPTIVE CASE MANAGEMENT PLATFORM

 Proven case management platform

developed over an 8 year period allows a high number of cases to be managed with minimal staff reducing direct labour costs and delivering efficiency dividends

 Records case data and any variation to

the repayment plan with notification alerts

 Provides reporting features including

• verdue payments, repayment progress,

dividend distribution and half-yearly / annual review

 Accessible by creditors providing greater

transparency

 Automates and streamlines dividend

distribution process 8

AUSTRALIAN MARKET OPPORTUNITY

• Favourable Macro Conditions - After an extended

depressed period global interest rates are rising placing additional pressure on household debt affordability 9

Personal Insolvency types by State Household Debt and Household Saving Ratio

• Record Household Debt - Australian household debt

reached an all-time high in June 2017 of 194% of yearly disposable income including in excess of A$1 trillion of mortgage debt

• Historically Low Level of Wages Growth - Australian

consumers’ wages are growing at historically low levels

• Growing Number of Personal Insolvency Cases - Total

personal insolvency appointments increased by 4.4% from 28,288 during the 2015 financial year to 29,527 for the 2016 financial year, with a total of 17,202 bankruptcies in the 2016 financial year, a rise of 0.2%, the first annual rise in bankruptcies seen since the 2009 financial year

AUSTRALIAN EXPANSION STRATEGY

• Leverage Experience - Credit Intelligence has captured the majority
• f the Hong Kong market and now plans to capitalise on the

Australian market opportunity by replicating its business model in Australia

• Establish Australian Presence - the Company intends to establish
• ffices in Australia whilst building a dedicated Australian team led by

a dedicated in-country manager

• Enhance Public Profile - Credit Intelligence’s ASX listing will enhance

its public profile in Australia furthering its credibility with consumers

• Launch Aggressive Marketing Campaign - the Company plans to

launch an aggressive marketing campaign to initially target Australia’s West Coast

• Rapid Expansion - through potential partnerships and/or acquisitions
• f suitable Australian insolvency businesses

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AUSTRALIAN BUSINESS MODEL

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Bankruptcy and Personal Insolvency Agreements

Possible to work with percentage based recovery model. Currently, maximum amounts (subject to approval):

• if the money received by the trustee does not

exceed $30,000—20%; or

• if the money received by the trustee exceeds

$30,000 but does not exceed $50,000—20% for the first $30,000 and 17.5% for the balance

• f the money received; or
• if the money received by the trustee exceeds

$50,000—20% for the first $30,000, 17.5% for the next $20,000 and 15% for the balance of the money received.

Debt Agreement

Ability to fix upfront an overall remuneration percentage in relation to debt agreements.

Bankruptcy Appointments Debt Agreements Entered

INDICATIVE TIMETABLE

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Event 2017/18 Lodge Prospectus with ASIC 21 December Public Offer opening date 10 January Public Offer closing date 15 February Issue of new Shares 22 February Holding statements sent to Shareholders 27 February Requotation of Shares on ASX Early March

Note: Timetable is subject to change

ASX PEER COMPARISON

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Company ASX Code Market Cap ($m) EV/EBITDA (multiple) FY15 FY16 FY17

Collection House CLH 182.8 10.1 6.6 7.4 Credit Corp CCP 1,089.7 9.7 8.3 10.5 Pioneer Credit PNC 181.1 7.5 7.7 10.9 Sector Average

• 484.5

9.1 7.5 9.6 Credit Intelligence CI1 16.3 9.5 7.1* 8.1

*On 14 May 2015, CIH disposed of an aggregate 9% equity interest in its subsidiary Hong Kong Debt Management Services Limited. A gain on change in the shareholding of Hong Kong Debt Management Services Limited of A$2,521,165 (HK$14.4m) was recognized in the consolidated statements of comprehensive income during the year ended 31 March 2016. This gain has been excluded from our FY16 CI1 EV/EBITDA multiple. Source: Bloomberg; Credit Intelligence; Patersons Research

CAPITAL STRUCTURE

Min Subscription (A$3.5m) Max Subscription (A$5m)

Amount % Amount % Shares on Issue (APAC) 72,000,000 8.81 72,000,000 8.07 Vendor Consideration Shares (CI)* 532,852,564 65.21 532,852,564 59.73 Advisor Shares 37,299,679 4.56 37,299,679 4.18 Shares Issued under Public Offer 175,000,000 21.42 250,000,000 28.02 Total Shares on issue at Completion of Public Offer 817,152,243 100% 892,152,243 100%

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• The Company is seeking to list on the ASX via an RTO with APAC
• Vendor consideration A$10.6m comprising 532m shares at 2¢ each
• Compelling valuation metrics including an EV/EBITDA multiple of 8.1 below sector average of 9.6
• Indicative market capitalisation of A$16.3m assuming minimum subscription
• Credit Intelligence’s CEO and Founder, Jimmie Wong, will receive 458,253,206 Vendor Consideration Shares of

which 40% will be escrowed for 12 months and 40% will be escrowed for 24 months

PROPOSED USE OF FUNDS

Min Subscription (A$3.5m) Max Subscription (A$5m) Amount % Amount % Establishment of Australian

• perations

$1,750,000 50% $2,500,000 50% Marketing and advertising $525,000 15% $1,000,000 20% Expenses of the Offer $350,000 10% $500,000 10% ASX Fees and other miscellaneous $70,000 2% $75,000 1.5% General working capital $805,000 23% $925,000 18.5% Total $3,500,000 100% $5,000,000 100%

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WHY CREDIT INTELLIGENCE?

 Established business model with proven profitability  Disruptive case management platform provides a

competitive advantage

 Significant market opportunity identified  Experienced board and management  Compelling valuation metrics  Favourable macroeconomic conditions

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