Ann: Strategic Acquisition and Capital Raising Presentation, page-13

• I'd be interested to know on what basis Paygroup will be the leader in payroll services in Australia. And not much competition? The competition has increased with the advent in popularity of SaaS-based solutions. Historically the payroll industry has been owned by the same players. I understand 4 out of 5 companies still use old technologies for their payroll (partly because there's a lot of effort to change). This is where there is opportunity for the likes of Paygroup but I'd question some of those things you have stated coming from Mark. Were they stated in announcements or general meetings or where did you hear this?

I like Paygroup, just not sure whether the value of this deal is right. A 30% dilution on the face of it seems pretty hefty. It will surely put a drag on the share price for the foreseeable future, at least until the benefits of IWS synergies can be proven.