CFAS Presentation

1. CFAS Presentation Bulls-Hit What!?

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3. Game Information The entire game spans five years, each of which has six phases, except for the last year. The winner is decided by the player with the most amount of money once the game has ended. The game is designed for 2 to 6 players. Each game can last from 20 minutes to an hour The purpose of this game is to educate players on concepts regarding Corporate Finance and economics.

4. Game Board

5. Progress Board

6. Event Wheel & Effect Cards

7. Loan Stock with Warrants &Convertible Unsecured Loan Stock CULS LSW

8. Game Setup • Remove from the box the appropriate number of player tokens according to the number of players. • Each player receives an initial starting capital of $4,000 in the combination of: • 2 x $50 • 3 x $100 • 3 x $200 • 2 x $500 • 2 x $1,000 • Shuffle the entire deck of effect cards and hand each player 3 effect cards, with the remaining cards placed face-down on the space labeled “Draw Pile” on the game board

9. Let The Game Begin!

10. Phase 1 • Turn of Events • Deciding the change in amount of dividend payout • Depending on the colourof the current rate, dividends are affected differently. • Black Area - Will only move up according to the number which is spun to • White Area - The dividend rate may only move down according to the number which is spun to. • Grey area- the dividend rate may move either up or down depending on the number spun to, depending on whether the arrow lands on the positive or negative half.

11. Phase 2 • The bidding process is done in this manner: • Bidding starts from player token 1 • Bidding must always start at $100 and may be started by any player. • The player with the highest bid will receive the current Player Token • The next Player Token is up for bidding. • Note: • Players may opt out of the bidding process at the cost of $100. • Forced sale of securities in event player has less than $100

12. Phase 2 Players will then receive effects cards from the draw pile based on the number of stocks they owned 1-2 Stocks: 1 Effects Card 3-4 Stocks: 2 Effects Cards 5-6 Stocks: 3 Effects Cards 7-8 Stocks: 4 Effects Cards 9 Stocks and above: 5 Effects Cards

13. Phase 3 Player Movement • Purchasing Stocks • The player will pay for the price of the share to the bank and take one stock block of the company. • Selling Stocks • For selling of ordinary shares, the player receives the current market price of the company’s stock as indicated on the left side of the game board from the bank. • Note: • Once a CULS or LSW certificate is purchased, they may not be sold except on the final year, Year 5 where the Loan Stock is liquidated for the price it was bought at.

14. Phase 3 • Purchasing Loan Stock With Warrant (LSW) • Another alternative for a player is to purchase a loan stock with warrant (LSW). • The price of a LSW of a company is the current market price of a Stock Block of the company with an additional $300 premium. • The player will also receive $200 in fixed interest in each subsequent year. • Once a player owns a LSW certificate of a company, the player may select either of the following options to utilize it:

15. Phase 3 • Exercise warrant using cash • The player will keep the loan stock and receive one Stock Block of the company. • The exercise price would be the price of a stock block of the company, when the LSW was bought. • The player will still keep the certificate and receive fixed interest income. However, he can no longer exchange the LSW certificate for an ordinary share. • Exercise warrant by tendering loan stock • The player may exercise the warrant by tendering the loan stock. • The player exchanges the LSW certificate for a Stock Block of the company.

16. Phase 3 • Purchasing Convertible Unsecured Loan Stock (CULS) • The price of CULS is determined by the current market share price with an additional $200 premium. • Due to its convertibility feature, the holder may exchange their CULS certificate for a stock block of that company at no cost. • However, a player may only activate this convertibility feature two years after the current year. • The holder of the CULS will also receive a loan stock interest of $250 in each subsequent year.

17. Phase 4 Market Effects • Use Effects Card(s) (Optional) • Effects cards affect the amount of dividends which the company pays out for the current year. • The player may play as many effects cards as desired and once used, the effects card(s) has to be placed face-down on the discard pile. • The dividend rate for any of the companies may not go below the minimum stipulated level and maximum stipulated level on the Game Board. • Discarding of Unused Effects Cards (Compulsory) • Players are to discard all unused Effects Cards on to the discard pile • Discard pile and draw pile are combined together and the entire deck is shuffled to form the new draw pile.

18. Phase 5 • Dividend Payout • Players will receive the indicated dividend rate on the right side of the company’s stock pile, for each particular stock block of the company they own. • Players which own CULS or LSW certificates will also receive the respective fixed interest income.

19. Phase 6 • Market Events • At this phase, Player 1 has to spin the Event Wheel to determine what market event has shaped the current market. • The event indicated on the outer section of the Event Wheel will occur. • Any new price for shares is fixed for the event and is only effective in this phase and return to the indicated price once the new phase begins • When two or more companies are affected, player 1 get to choose the company that will be affected.

20. Phase 6 Overvaluation Due to intense market interest and demand, a particular company’s share price has spiked up tremendously with investors eager to jump in as well. Affects company which has least number of shares sold Current market price of that company increases by 50% Players who have sufficient cash on hand are forced to purchase a stock block at the new market price.

21. Phase 6 Force Sell Negative rumors of the economy have been spread around, jittering shareholders into selling some of their stocks to pre-empt any negative turn of events. Players must select the company for which they each own the most number of stock blocks of and sell it at 50% of its current market price. Should a player own the most number of stocks for more than one company, the player is allowed to pick which company’s Stock Block they wish to sell.

22. Phase 6 Placement Offer A company is in need of a capital injection quickly in order to grasp a new business opportunity. Thus it decides to issue a placement offer to all non-shareholders The company which currently has the least amount of shares sold will perform a placement offer and its current market price is decreased by 50% All players which have sufficient cash on hand and do not already own a Stock Block of the company are forced to purchase a single Stock Block.

23. Phase 6 Share Buyback A company is having trouble reaching an adequate return on equity level which would attract investors due to the high amount of shares already available in the market. The company which currently has the most amount of shares sold will perform a share buyback and the current market price of its stocks is increased by 50% All players which own a Stock Block of the company are forced to sell a single Stock Block at the new market price.

24. Phase 6 TechnicalCorrection A technical correction has occurred due to the over speculation and investors have to bear the brunt of the decrease in stock prices. Company which currently has the most amount of shares sold undergoes a technical correction and the price of the stock is decreased by 50%. All players which own a Stock Block of the company are forced to sell a single Stock Block at the new market price.

25. Phase 6 Rights Issue In order to raise cash as well as to reduce their gearing ratios and show shareholder commitment, making banks more inclined to lend to the company, the company’s management has decided to perform a rights issue, in order to raise capital. Company which currently has the least amount of shares sold will be the company doing a rights issue and the current market price of its stocks is decreased by 50% All players which have sufficient cash on hand can purchase a Stock Block of the company at the new market price.

26. Year 2 Onwards Once this phase is complete, the Phase Token is moved to Phase 1 of the next year and game procedures restart from Phase 1 again until Year 5.

27. Final Rush • In the final year, Year 5, players will have a final chance to alter the game to their advantage and game procedures will be modified as such: • Player Turn bidding will be carried out as per usual method. • Going by the usual player turn order, players receive the appropriate number of Effects Card(s) and decide whether to utilize them or discard them to the discard pile immediately. • Players will receive their final dividend payout as per usual. • Player 1 spins the Event Wheel and the event indicated on the outer wheel will occur.

28. Final Rush • All players must liquidate all their Stock Blocks in the normal ascending player order. • Stock Blocks are sold according to the prices indicated on the Game Board for all companies. • Convertible Unsecured Loan Stocks (CULS) must be converted, with players exchanging a CULS certificate for a stock block of the company and selling the Stock Block at the price indicated on the Game Board. • Players which have Loan Stock with Warrant must now choose between the two options available. If any loan stock is unconverted, the loan stock is sold at the price of a stock block of the company when the LSW was bought.

29. Winner of the Game Once the final phase of Year 5 has been completed, the player with the highest amount of cash on hand is the winner. Ties may occur at this phase and the players will be declared the winners.

30. Additional Content Quick Start Guide Prominent Concepts Used Blog Video Poster

31. Q&A

32. Thank You!