Barrie rawlings halo CORPORATE finance

Agenda Introduction to Halo Inclarity Finance Rental Solution Example Deal Benefits of the Rental Agreement What happens at the end of the Rental Agreement Lifetime Licence Funding

Who are Halo Halo Corporate Finance Ltd is an independent finance house providing Asset Finance & Rental Solutions to Corporations, SMEs, Partnerships, Sole Traders and Private Individuals. Incorporated in 2005 - grown consistently by more than 25% year-on-year.

Who are Halo Commercial finance brokerage /Lender - 50+ banks and finance houses include our own finance book. Offices in Horsham (Nr Gatwick) with 12 regional Account Executives. Specialise in providing rental solutions for the Technology Industries - Telecoms, Software, Computer Equipment, CCTV.

Inclarity Finance Rental Solution Customer is sold the Inclarity solution based on a cost per seat per month – Price per seat to be determined by you. Minimum contract term 3 years with maximum term of 5 years. Included in each seat cost of £7.00 + VAT (Inclarity Cost) is a Polycom VVX400 handset, Broadsoft Licence, 1000 minutes local/national calls & 1000 minutes mobile calls. Additional items can be included in the rental solution – install, routers/switches, additional features, training & 3rd party buyouts.

Example Deal Customer is sold a deal based 15 seats at a price of £20.00 + Vat per seat per month on 3 year deal. Total Cost £20 x 15 Seats = £300.00 +VAT per month for 3 years (36 monthly payments).

Example Deal This revenue is split into two revenue streams 1. Recurring Revenue – signed on your lines & calls contract, £10 x 15 = £150.00 + VAT per month for 36 months. This gives you £2.50 per seat (after Inclarity seat cost of £7.50) per month, profit on a monthly basis - £37.50 per month for 36 months. 2. Rental Revenue – signed on the Inclarity Rental Document, £10 x 15 = £150.00 + VAT per month for 36 months. Creating £4,300.00 + VAT up front revenue.

Example Deal Please note that recurring revenue and rental revenues can be adjusted either way. This will either create more up front revenue and monthly or more monthly recurring revenue and less up front. * Maximum up front revenue per handset is £1,000.00 + VAT, in this example it could be as much as £15,000.00 + VAT.

Benefits of the Rental Agreement Releases capital day one. Create up front revenue to pay sales staff wages and commissions. Buy customers out of 3rd party contracts. Retain customers for a minimum of 3 years. Get your Handsets included. Refresh programme after the customer contract ends.

What happens at the end of the Rental Agreement The customer continues to pay but can give 3 months notice to end the agreement. Sign the customer up to a new deal (minimum 3 years), which will give them all new handsets and gives you more up front revenue – as per example. The customer give 3 months notice, the agreement ends and all the equipment is returned to you.

Lifetime License Funding We can fund lifetime licences up to 5 years. This allows you to spread the cost of licences over a similar term to an end user contract, Typical deal 100 licences at £180.00 each with a total cost of £18,000.00 + VAT. Based on 4 years the payments on finance would be 48@ £466.83 + VAT which would £4.67 + VAT per Licence per month. Service charge per licence is £2.00 + VAT per month, which means the total cost per licence per month would be £6.67 + VAT.

Lifetime License Funding We can also then fund the end user for handsets as per my previous slide, only difference being that you would need to purchase the handsets. These could be paid for out of the up front revenue from the funding solution. At the end of the finance term, title for the licences would be passed to you for one additional payment. After which you would only have to pay the £2.00 + VAT service charge per licence to Inclarity.

Thank You I will be available all day for questions and happy to make individual appointments to discuss the scheme further. Barrie Rawlings barrie@hcfl.co.uk 07821 414 295