Perth Roadshow, page-33

I don't think there will be a resolution to the anonymity issues. PC mentioned they were seeking guidance from the ASX as they want to name clients however it has been a significant sticking point with some of the larger licensees as they don't want their name out there. According to MF they love the product and, as is the case with the company subject to the MOU which 'ceased' a week or so ago, they continue to use it however no legal agreement is in place because they will not agree to be publicly named which at the moment the ASX requires. There was some robust discussions surrounding the issue last night and PC mentioned he was not sure what the solution was at the moment and it may be that there will be no further announcements of the like and the success of the company will only be measured on the quarterly and an accompanying market update which will provide other metrics to outline progress etc. When some displeasure was voiced at this PC mentioned that the clients needs are the most important to the company at the moment and if that means complete anonymity that is the way it will go.

In addition to this what I took away from the roadshow last night was that the Portal is not just a nice addition to IAM it is THE future of IAM. At the moment Sentry have to ring up and talk to someone at IAM to order the relevant processes. They've worked extremely hard to simplify the Portal and streamline the whole process. MF mentioned when work is ordered through the Portal circa 17 / 18% of the work is completed on the other end by technology and the other 82 / 83% is completed by humans. The question was asked how the quality control of the human aspect is managed and MF stated the code and technology is so precise the work can not proceed if there is human error in any way. I think this is a big point as a financial planner friend of mine mentioned they have attempted to outsource elements of their work in the past and it hasn't worked as it came back a mess and was more of a hindrance. MF stated the future is definitely in greatly reducing the %age of human input and working towards complete technological reliance as this will future proof the business. He indicated this is not the very distance future but something they are actively working towards.

The IAM owned data cable mentioned by Sower is also an important point. It is not a legal requirement to have a separate cable to undertake this kind of work but MF was adamant that the big Licensees would not work with them without the assurance to data security this cable provides. MF stated it is a capital outlay of many millions to put this in place essentially giving them a big head start in being the first mover into this market. This in tandem with the lock down of essentially the brain power in the Philippines and India mentioned earlier are a big deterrence to any significant competition.

My main concerns with IAM was the scale-ability and risk of competition however I think the Portal is going to be the answer to the scale-ability issues that became apparent in the initial trials with Sentry etc requiring too much set up face to face time with IAM.

I'm looking forward to the progress over the next few years with IAM which i think will be apparent in the many quarterlies to come...only