Catch the Momentum

1. Catch the Momentum If you choose not to act, you have taken a dramatic action.

2. Ah…Life at the Network.

3. 45 Minutes to… • Status of ABCN and “the World” • Status of our Competitors (Regus) • Identify the ‘next big things’ • Create total Industry Transparency • Turn your numbers ‘upside down’ • Monetize our companies. So, hang on. It’s a wild ride!

4. You can only see the ‘tip’ • 8,000 Centers • Asia is ahead • Europe is catching up • UK has too much $$ • NA is consolidating • Latin America is …? • “0” net center growth • Landlord exchange

5. “0” Growth…seems wrong! • “Follow the leader” • There is WS growth • Artificial “High” • Real Growth this year. • Consolidation effect • Supports pricing • VO, the new – old thing • What does the future look like?

6. It’s looking really good… • ABCN 600 centers, 35 countries • 15% external growth • 10% internal growth • 1,000 centers, 50 countries, 24 months • Regus 750 centers, 50 countries • 15% overall growth • 1,000 centers, 50 countries, 24 months Reversing

7. What will the outcome be? • Only two real players globally • Only two able to serve the ‘corporates’ • Only two able to impact market pricing • Only two able to ‘create’ new products • Only two able to ‘establish standards’ • Only two able to extend their brands

8. Is RGU is ‘friend or foe’? Competitors or Colleagues? • Are we going to be constructive or destructive forces? • What can we do together if we all band together at ABCN/SON? • What should we do with Regus? • Anything?

9. Where is Regus’ focus and where should ours be? • Regus – WS GROWTH and top line • Acquisitions at 30% arbitrage • More centralization • UK Staff all fired last week…same ‘old’ central staff takes over. • ABCN/SON – WS Growth, new products…“bottom line”. • Faster, leaner model that is fully distributed. • Limited capital, limited commitment by Members • Must change for success

10. How will ABCN/SON succeed? • Commit to common goals • Establish standards • Get rid of ‘the box’… • Here’s where we will concentrate…

11. The Next “BIG” Thing“Industry Transparency” We don’t need no stinking WEB BROKERS…or do we?

12. Sometimes you’re the windshield.. .…Sometimes you’re the bug!.

13. What is “transparency”? • You need to ‘see everything’ in one place • All parties • Agencies (Brokers) • Clients (on the web) • Hotels (OBC Operators) • Sometimes two industries can learn a lot from one another. • We think the OBC and the Travel industries are such a case.

14. Here’s the travel model 75,000 120,000

15. What was the outcome • Increased Visibility • Ease of market differentiation • High Speed decision making • Superior Customer Service and Satisfaction • Faster Payment • Increased Revenue • Price Point Optimization • Instant Inventory analysis • Lower Operating Costs • Reduced Commission rates • Reduced Operations and Administration

16. Our industry model today 50 10

17. Consider a new model 50 10,000 120,000

18. Net Gains are huge • Visibility • Increased Conventional Brokerage Community • All Brokerage types would have equal and full access • All Brokerage types would have instant inventory and communications access for reservations and booking. • Totally New Travel Agency Community (others) • Entirely new sales channel • Increase usage of conference and meeting rooms • Most productive space if fully occupied • Established Web Broker Community • Newer Web Broker models at lower commissions and higher profitability means more successful agencies selling to more clients.

19. OK, let’s review • A new ‘transparency model’ gives you • Lower costs of sale (commissions) • Lower operating costs • Improved inventory control • Improved (real time) optimized pricing models • Higher client visibility • More sales outlets • New sales channels • Better communications systems

20. We have the partner…

21. We have the ‘resources’.

22. And, plenty of them.

23. And, if we work together…. …we can do anything… Even walk on water!

24. Let’s pick up the pace… and get UPSIDE DOWN! Even walk on water!

25. Get UPSIDE DOWN now!Do You want capital or not? “May all your wishes come true”…a Chinese Curse

26. We’ve been on a Road Show • Establish a $$BB investment fund for our Members. • Operating Company Focus • RE Asset sub-focus • Have several offers from ‘top 10’ firms. • Here’s the ‘catch’. • Too expensive • Too restrictive • Too cumbersome • No short term exit opportunity for anyone. • Turning “Upside Down” isn’t rolling over. There’s challenging navigation ahead

27. Here’s what we mean. • What’s your ‘revenue ratio’ of Space to Service? • 60/40, 65/35, 70/30? • Most common is 65/35…and the 35 is going down. • What should it be? • It should be reversed to a 30/70 ratio. • Why? Turns you into a ‘non-cyclical service company’. • How? By focusing on: • VO…the really big one. • IT…second and rising • HR…hardest to do • Contract Management…least profitable but easy • Accounting Standards… the easiest and fastest.

28. ! 1st let’s Focus on VO • Global ABCN Backbone • Anywhere Office Access • You ‘own’ the client • Dedicated Sales and Marketing • Separate Website • Separate Optimization • Separate Marketing Strategy • Who are potential partners • “Agency Companies” • “Registration Companies” • IT Companies Some things you just can’t avoid!

29. Here’s an example

30. TOTALLY different site

31. TOTALLY different staff

32. TOTALLY global market

33. 2nd Focus on IT and HR…with a dedicated “Client Service Portal”

34. Focus on HR & Services

35. Focus on IT Services

36. We have the ‘resources’…do you have the commitment?

37. Thanks…Questions??? Remember, it’s the second mouse that gets the cheese… ABCN?