COG FINANCIAL SERVICES LIMITED — Net Asset Value 2012

Dec 12, 2012

Armidale Investment Corporation Limited

ABN: 58 100 854 788 Level 11, 139 Macquarie Street Sydney NSW 2000 Tel: 02 8014 1188 Fax: 02 8084 9918

ASX Company Announcements

13 December 2012

The Manager Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

Net Tangible Asset Value as at 30 November 2012 on a

Consolidated and Company Basis

Armidale Investment Corporation Limited (AIK) holds approximately ~87% of HAL Data Services Pty Limited (HDS) and is therefore required under the Accounting Standards to consolidate the financial statements of HDS into its financial and management accounts. This consolidation commenced with the month ended 31 December 2011, being when AIK had the ability to exercise its call option over HDS.

As a result of this, AIK will report its Net Tangible Asset (NTA) Value on both a Consolidated and Company level. Providing the Company NTA will allow comparability to the NTA figures that, prior to the requirement to consolidate HDS, have been reported.

Furthermore on 5 December 2012, AIK issued 18.36 million shares as consideration for the acquisition of an additional 15% of the ‘Waterfall Arrangement’. Therefore any changes to the financial statements which results from this transaction are not reflected in the 30 November 2012 Net Tangible Asset Value.

The unaudited NTA value per share (after all taxes, fees and expenses) as at 30 November 2012 was:

	November 2012 Net Tangible Asset Val	ue.	ue.
	The unaudited NTA value per share (aft2012	er all taxes, fees and expens		es) as at 30 November
	was:
			ConsolidatedCo	mpany
	Net Assets		$19564208$16	191940
	Intangible Assets		,,$ 9,378,705$	,,0
	NTA		$10,185,503$1	,191,940
	NTA per share		6.30 cents10.	01 cents
Intangible Assets comprise:Intangibles (Software & Residual rights)GoodwillDeferred Tax AssetRental Income StreamIntangible Assets	Intangible Assets comprise:
			$ 4,198,213$ 2,551,998$ 1,960,330$ 668,164$ 9,378,705

Refer to Consolidated NTA below for an explanation of the intangible assets

Company NTA

The Company NTA reflects the valuation of AIK’s interests in HDS as announced to the ASX on 24 June 2011 of $13,612,000, being a mid-point of the valuation ranges and adjusted for the receipt of $4.4 million in repayments from HDS as detailed below:

• (i) two repayments of $1.5m each from HDS as announced on 5 August 2011 and 20 December 2011;

• (ii) a repayment of $0.7m from HDS as announced on 7 February 2012; and

(iii) a repayment of $0.7m from HDS as announced on 17 October 2012.

As announced on 24 July 2012, a $1.0 million payment of amounts owed by HDS to AIK under the December 2010 Loan Agreement was received. It is noted that this is different to payments received previously as part of the Loan Note Restructure.

This brings the total payments received since 31 July 2011 to $5.4 million, comprising:

(a)	Payments	as part of the Loan Note Restructure	$4.4m
(b)	Payments	under December 2010 Loan Agreement	$1.0m
			$5.4m

For clarity, the repayments noted above have no effect on the Company NTA.

Consolidated NTA

The Consolidated NTA includes consolidation of HDS, which includes intangible assets. An intangible asset is an identifiable non-monetary asset without physical substance that has, identifiability, control over a resource and existence of future economic benefits.

The intangible assets arising from the consolidation of HDS include:

• Software

Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems. Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees' time spent on the project. Amortisation is calculated on a straight-line basis over periods generally ranging from 2 to 5 years.

 Residual Rights

Residual rights form a key part of a leasing business operation. These are the rights to any inertia lease income that flows through to HDS following the end of a lease term. The fair value of residual rights is present value of the expected future inertia lease income and expected sale proceeds on the sale of the leased asset. At the end of the lease term the residual right (intangible asset) is transferred to property, plant and equipment to reflect the ownership of the physical asset by the HDS.

• Deferred Tax Asset

On a consolidated basis, the group holds the following deferred tax assets and liabilities as at 30 November 2012.

Deferred Tax Asset	$1,960,330
Deferred Tax Liabilities	$2,701,960

After seeking appropriate accounting advice, and as AIK does not own 100% of HDS, From 30 November 2012 the Consolidated Group NTA has been calculated on the basis of:

• (i) Removing the Deferred Tax Asset from the total asset position of the consolidated group; and

• (ii) Continuing to include the Deferred Tax Liability from the total liability position of the consolidated group.

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• Rental Income Stream

A separately identifiable intangible asset, Rental Income Stream, was recognised following the acquisition of HDS. The value has been determined based on the present value of expected future net cash flows over the next 3 years. Amortisation is calculated on a straight-line basis over 3 years commencing 1 July 2011.

For further information please contact:

Andrew Grant David Franks Executive Director Company Secretary 0415 166 090 02 9299 9690

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