Page 35 - ASCOT GROUP COMPLETE DOCUMENT (2)

Financials

Due to the structure of the products, and comparatively low overheads (through a combination of
outsourcing and computerisation), a profit stream begins within the life company during the first
quarter after launch. Detailed figures are attached in the Appendices.

The figures in the below table show profit arising only from business introduced to the life company
by the distributors who have provided a LOI plus 65% of the Ascot Sales Team projected sales targets,
whilst expenses are those for the whole group. No credit has been taken for affiliate marketing/direct
sales into the life company, or for business taken into the any other part of Ascot Group from any
source.

Within the financial pack, we have shown the forecast profits arising from the Ascot Distribution (FE) -
affiliate marketing/direct sales – operation, however, we have taken no credit within the Ascot Life
figures for business fed through into the life operation. Likewise, no credit has been taken for
investment into Ascot International range of funds.

These additional sales arising from Ascot Distribution (FE), will increase the expenses slightly, mainly
in additional costs for the outsourcing. However, there are no anticipated significant increases to the
expenses on the Isle of Man i.e. additional staff, other than those already planned for increased
business from traditional methods. The Isle of Man staff will also be able to accommodate
administration of the funds at the proposed level. Staffing of Ascot Fiduciary is included within these
figures, and staff within Ascot Financial Adviser are expected to be already in place within its existing
operation.