CAVENDISH MANAGEMENT RESOURCES Gettogether Meeting 15 th October

CAVENDISH MANAGEMENT RESOURCES Get-together Meeting 15 th October 2015

§AGENDA § 1) Welcome & introductions § 2) CMR Strategy Review & LET Scheme § 3) Clients - handling § 4) Investors – what they want to see § 5) Project spin-off opportunities § 6) Alternative funding sources & CMR SBG § 7) Networking with wine & canapés

Current CMR Status • Good proposition inflow • International expansion – continuing • Investor resources expanding (CMR, AIN, IZ, SBG, LET) • Need better investor presentations • Need to consider other routes forward for projects • Need to be more entrepreneurial

CMR PERMANENT STRATEGY • CMR core is senior management expertise • Funding is the primary door-opener • Funding not always best way forward or possible • Other avenues must be considered & acted upon • We must be innovative & entrepreneurial • We must always be seen as professional & ethical

CMR STRATEGY Evolution • CMR re-configured to near Not-for-Profit • CMR margin reduced to minimal 7. 5% • CMR Executive margin increased to 75% • CMR SBG margin to 92. 5% • Objectives: • to make CMR more entrepreneurial & open • to give virtually all profits to those making it happen

CMR LET SCHEME LEGACY ENTREPRENEURIAL TRUST Facilitating Legacies & Donations into Entrepreneurial Small Companies & Innovations Globally

LEGACY ENTREPRENEURIAL TRUST • Providing a new channel for bequests & donations • Global for incoming bequests & donations • Global for investments made (but selectable) • Charity status = tax free in most countries • Dedicated to promoting growth & innovation • Commercial objective; to preserve & grow Trust

LEGACY ENTREPRENEURIAL TRUST • What’s in it for the benefactors: • Leaving some or all wealth to help future generations – forever • Their bequest keeps-on giving hope and encouragement - forever • A tax-free alternative to high admin cost charities or relatives • All LET investees pledge at least 0. 1% of sales to charities - forever • Benefactors have a permanent memorial: • Biographies, photos, etc. , on permanent LET website – in searchable format for future generations to benefit from their experiences/advice • Everlasting LET plaques/QR code - for memorials, houses, etc.

LEGACY ENTREPRENEURIAL TRUST • LET’s Objectives: • To provide investment capital to help innovation and entrepreneurial endeavour benefiting mankind generally • Preservation of the Trust’s capital base to ensure future generations will benefit from the Trust • Benefactors are able to specify if their money is to be used: • 1) Globally without limitation • 2) Only in those countries the benefactor specifies • 3) Only in developing nations • 4) Only for non-commercial projects of great community value (noting that this may not preserve the money into the future)

LEGACY ENTREPRENEURIAL TRUST • The Trust’s Organisation: • Registered charity status in most countries • A main board of well-known and highly respected individuals • An investment committee comprising professional experts • An inner-circle of founding corporate members • An outer-circle of professional firms acting as introducers and facilitators

CMR IMPROVEMENTS § Project spin-off opportunities § Client handling § Investor handling § Alternative funding sources & CMR SBG

Project Spin-off Opportunities • Funding – perhaps • International licensing • JV’s – Mergers – Acquisitions • CMR Catalyst Group Formation • Company Sale • CMR Progressive Company Sale/ MBI • CMR Self-funding Loan Scheme • Corporate Recovery / turnaround • Succession Planning • Consultancy & Management Support

CLIENT HANDLING § The initial contact §Create good impression – also communications §Do you exude confidence & gravitas? §Operate as if you are the investor §Do not start talking about fees §I am here to ask questions and review §I am pre-vetting on behalf of our investors §I will give you feedback before I leave

CLIENT HANDLING § The Investigation: §Like your proposition and want to explore further §Ask questions (pre-prepared? ) in a friendly way §Form your view on whether this a good project §Form your view on any issues or weaknesses likely to affect investor attraction §Form your view on alternative ways forward

CLIENT HANDLING § The Feedback/Discussion: §There are some issues that could adversely affect investor interest – they are … §Must address these before any presentation to investors – must not be half-baked §We can help to make the changes necessary and re -present to make more attractive to investors

CLIENT HANDLING § Closing & fee arrangements §As a principle we make our money primarily from achieving success. 5% … success fee §However, where we have to do work to bring a proposition to an investment-ready state, then a fee agreed depending on the work involved §For you, we will defer 50% of that fee (£$€) until a successful outcome is achieved

CLIENT HANDLING § Closing & fee arrangements (2) §Raising money from investors can be difficult (quote Dragons Den/Shark Tank, etc. ) §Need to also consider other routes forward both for other investment sources and alternative ways to develop your business. Do not want to be completely reliant on private investors §We can guide you ………………….

INVESTORS § General considerations §Most are not stupid §None want to lose money but will take risks §They are inundated with propositions §They must get excited in first 60 seconds §Will spend rest of time looking for reasons not to §Will disregard forecasts; the concept is the thing §Always interested in the entrepreneur

INVESTORS § The Presentation §It must stand-out with a WOW factor §But without rhetoric §It must explain the business concept §It must address the issues for investors §It must give confidence in the entrepreneur §Support from PR/Media/Social Media important §Consider other investment sources

Alternative Funding Sources • Private investors (CMR, AIN, Other networks) • Institutional Investors (VCs, VCTs, PE) • Trade Investors (JVs, Licensing, M&A, etc. ) • Crowdfunding (IZ) • Government/EU sources • CMR Corporate Funding SBG

Wine & Canapés Thanks for coming. .