James Alba-Duignan, Regional Vice President, Head of Commercial

Best Friends Forever -

Travel & Commercial Cards

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Contents 1. Start with the big numbers 2. Get deeper into the opportunity: – How much spend is Targetable ? – Which companies are Addressable ?

3. Finish with the phone numbers 4. Where the plastic hits the street !

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GBTA BTI™ Global Outlook and Forecast 2014-2018 Comprehensive report covering global economy, business travel trends/challenges, and 5-year projections. Global GBTA BTI™ Data “Cube” detailed database of industry sales and business travel spending:  for 75 countries by 48 industries  covering 2000-2018  country breakouts for domestic

and IOB

Data Cube (75 Countries)

 Selection of pivot tables & graphs Domestic

BTS

Professional & Business Services (48 Sectors) Business Travel Spend (in $USD)

IOB BTS

Industry Sales (in $USD)

Annual Metrics 2000

For more information contact GBTA Foundation Research or visit The Hub

2018 F

3 © 2015 GBTA Foundation. All rights reserved.

Global GBTA BTI™ Global GBTA BTI™ and Global Sales  (Indexed) 250

208 194 182 167 156 145150 133 133 127 123

Index Value (2005 = 100)

200

150

100

90

80 81 82

92

110 100

50

0

GBTA Global BTI™

Global Sales Index

221

•

GBTA BTI™ is an index of business travel activity (spend). It indicates the health of any given business travel market.

•

Highly correlated with Global Sales, although the GBTA BTI™ is increasingly growing at a slower rate, as biz travel’s productivity improves. GBTA BTI™: Key APAC Markets*

Country

BTI™

China Indonesia India Singapore Australia Japan

473 301 272 205 157 105

Fastest growing

Slowest growing

*Shows growth since 2005 based on 2014 spend projections

Source: GBTA BTI™ Global Outlook and Forecast 2014 – 2018 (July 2014) 4 © 2015 GBTA Foundation. All rights reserved.

Global BT Spend Growth since 2009 Total Business Travel Growth % Year‐Over‐Year

8.0%

9.3% 6.9% 3.2%

4.5%

$869B

$939B

$1.03T

$1.06T

$1.11T

$1.18T

2009

2010

2011

2012

2013

2014 (f)

‐7.5%

Source: GBTA BTI™ Global Outlook and Forecast 2014 – 2018 (July 2014) 5 © 2015 GBTA Foundation. All rights reserved.

Global Distribution of BT Spend (2014) Europe: $326 billion (28%)

North America: $322 billion (27%)

Asia-Pacific: $456 billion (39%)

Latin America: $54 billion (5%)

MEA: $24 billion (2%)

Source: GBTA Foundation, Rockport Analytics 6 © 2015 GBTA Foundation. All rights reserved.

Projected Growth Over Next 5 Years

China United States Germany Japan United Kingdom France Brazil South Korea Italy India Russia Canada Australia Indonesia Spain

Forecast Actual Spend 2013 Spend 2018 ($ millions ($ millions USD) USD) $225,052 $424,722 $273,684 $340,097 $53,923 $74,856 $60,858 $67,444 $41,184 $55,944 $35,102 $47,626 $31,156 $43,276 $30,922 $41,624 $30,437 $38,843 $24,358 $38,361 $22,200 $29,472 $21,709 $25,237 $20,193 $23,859 $14,433 $23,493 $16,806 $22,925

2013 Ranking 2 1 4 3 5 6 7 8 9 10 11 12 13 16 15

2018 Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Change in Rank +1 -1 +1 -1 +2 -

Source: GBTA BTI™ Global Outlook and Forecast 2014 – 2018 (July 2014) 7 © 2015 GBTA Foundation. All rights reserved.

Contents 1. Start with the big numbers 2. Get deeper into the opportunity: – How much spend is Targetable ? – Which companies are Addressable ?

3. Finish with the phone numbers 4. Where the plastic hits the streets !

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Having started with ‘the big numbers’.... GBTA is a great source and the creators* of the data can also break it down into components: 1. Pre-bookable (Air, Accom, Rental Car or Rail) 2. Cardable (pre-bookable plus Food & Beverage) 3. Other (Ground Transportation for MRO** or freight, plus all other trip-related costs) A Business Travel-focused ‘target market’ is a combination of (1) or (2) and companies of a certain size * Rockport Analytics ** Maintenance, Repairs, Operations 9

…we need to take a step back 2014

Australia India China

PreFood & Bookable Beverage 60% 18% 62% 16% 62% 16%

Other Spend 23% 22% 23%

For comparison:

USA Germany Brazil

57% 63% 51%

15% 19% 16%

28% 18% 33%

…and be specific when defining ‘TARGETABILITY’ 10

BT spend varies a lot by industry

Source: GBTA, Rockport Analytics

Example: Australia 11

So it’s often best to reduce the complexity to an aggregated definition

Now we have to match with ‘ADDRESSABILITY’ Source: GBTA, Rockport Analytics

Example: Australia 12

…which is complex to start with… US$10m equivalent

22% of total turnover



98 companies

Source: Dun & Bradstreet 27

India – worked example (3) 10

companies pulled at random from

Modelled (single legal entities) and Assigned (group) lists

D‐U‐N‐S 650047046 650061856 650068620 650123045 650188576 650226046 650376874 650445950 650538650 650604825

Business Name DIC INDIA LIMITED THIRUMALAI CHEMICALS LIMITED FUTURA POLYESTERS LIMITED I G PETROCHEMICALS LIMITED COLUMBIA PETRO CHEM PRIVATE LIMITED AARTI DRUGS LIMITED BIOLOGICAL E. LIMITED INDOCO REMEDIES LIMITED STYROLUTION INDIA PRIVATE LIMITED JUBILANT AGRI AND CONSUMER PRODUCTS LIMITED

City Name Kolkata Mumbai Mumbai Mumbai Mumbai Mumbai Hyderabad Mumbai Mumbai Noida

D‐U‐N‐S 650049463 650064850 650071897 650123045 650144074 650220163 650319197 650398691 650479173 650604825

Business Name City Name MERCK LIMITED Mumbai SHASUN PHARMACEUTICALS LIMITED Chennai PLANT LIPIDS PRIVATE LIMITED Ernakulam I G PETROCHEMICALS LIMITED Mumbai FUTURA POLYMERS ‐ (DIVISION OF FUTURA POLYESTERS LIMChennai HETERO DRUGS LIMITED Hyderabad SREE RAYALASEEMA ALKALIES & ALLIED CHEMICALS LIMITED Kurnool PATANJALI AYURVED LIMITED Haridwar TWILIGHT LITAKA PHARMA LIMITED Mumbai JUBILANT AGRI AND CONSUMER PRODUCTS LIMITED Noida

Tel Number 3324496591 2224017841 2224952311 2230286100 2266002313 2224019025 4030213999 2226541851 2240415308 1204361000 Tel Number 2266609000 4443446700 4842760395 2230286100 4425941705 4023704923 8518289602 8979010504 2233415300 1204361000

Modelled Annual Sales ($) $111,359,461 $165,020,485 $126,231,692 $193,397,879 $167,781,894 $153,023,931 $112,035,646 $115,202,079 $118,846,811 $181,331,476 Assigned Sales ($) vs Group $120,862,660 $141,579,838 $114,683,693 $193,397,879 $123,900,062 $187,842,123 $149,108,667 $156,977,503 $148,227,862 $186,366,372

Source: Dun & Bradstreet 28

In Summary: ‘Go’ then ‘Grow’ ‘Grow’: prioritize prospects

Country x Industry Vertical x Size Band

List companies within each cluster

Industry

‘Go’: where to focus acquisition

Objective: measure the targetable, addressable market opportunity by industry, in specific size bands above minimum spend (set at $XXXk) within each country

D‐U‐N‐S 740479738 741530765 743076630 744581849 750093072 750470957 750715138 750981706 751708058 752175984 752854927 753232722 753599807 754667541 755064891 755403404 756108809 756686036 757529722 758930929

Business Name City Name Telephone Number REMUNERATION SERVICES (QLD) PTY LTD BRISBANE 1300304010 KELLER GROUND ENGINEERING PTY LTD BAULKHAM HILLS 288661155 CONSOLIDATED CONTRACTING COMPANY AUSTRALIA PT BRISBANE 732303060 SRG CIVIL PTY LTD SOUTH MELBOURNE 392968100 RCR RESOLVE FM (ENGINEERING) PTY LTD SURRY HILLS 292135500 UNITED TECHNOLOGIES AUSTRALIA HOLDINGS LIMITED MASCOT 1300727041 ARA ELECTRICAL ENGINEERING SERVICES PTY LIMITED INGLEBURN 298296099 TOURAUST SERVICES PTY LIMITED MANLY 289622444 JALCO FOOD AND BEVERAGE PTY LIMITED KINGSGROVE 298174000 GEORGIOU GROUP PTY LTD OSBORNE PARK 892002500 CUSTOM SERVICE LEASING PTY LTD RICHMOND 394257333 ZENON AUSTRALIA PTY LTD NORTH SYDNEY 299788100 MARINE COMPUTATION SERVICES KENNY PTY LTD PERTH 863142555 CREDIT SUISSE MANAGEMENT (AUSTRALIA) PTY LIMITED SYDNEY 282054400 LINK ADMINISTRATION PTY LIMITED SYDNEY 282807100 AMEC FOSTER WHEELER ENVIRONMENT & INFRASTRUCTUBRISBANE 732292500 BUREAU VERITAS MINERALS PTY LTD PORT MELBOURNE 399220700 A J LUCAS JOINT VENTURES PTY. LIMITED MACQUARIE PARK 294904000 FUGRO AIRBORNE SURVEYS PTY LTD WEST PERTH 892736400 AVEO RETIREMENT HOMES LIMITED SYDNEY 292706100

D‐U‐N‐S 740175893 740945084 742165624 743253403 744902818 747462430 749796397 750649092 751443664 751799425 752722012 753194406 754097728 754930597 755293842 756238325 756700274 757501291 758898258 759662562

Business Name ARUP PACIFIC PTY LTD SAVAGE & PARTNERS PTY LTD LYCOPODIUM LIMITED AIRASIA X SERVICES PTY LTD CCIC AUSTRALIA PTY LTD RIDER LEVETT BUCKNALL NT PTY LTD FURMANITE AUSTRALIA PTY LTD RENEWABLE POWER VENTURES PTY LTD QIC FINANCE (SHOPPING CENTRE FUND) PTY LTD MI POWER (QLD) PTY LTD VDM PROJECTS PTY LTD LYCOPODIUM PROCESS INDUSTRIES PTY LTD THE BIRCHMAN GROUP ASIA PACIFIC PTY LTD ENGENCO LIMITED WINSLOW GROUP PTY. LTD. RIDER LEVETT BUCKNALL SA PTY LTD MERIDIAN CONCRETE AUSTRALIA PTY. LTD. FRANK PUBLIC RELATIONS PTY LIMITED TECHNIGRO PTY LTD PB AUSTRALIA PTY LIMITED

City Name Telephone Number SYDNEY 293209320 SYDNEY 282813232 PERTH EAST 862105222 FORTITUDE VALLEY 415603737 HURSTVILLE 295803212 DARWIN 889412262 PORT MELBOURNE 392852200 SYDNEY 280319900 BRISBANE 733603800 MACKAY 749531490 PERTH EAST 892651100 MULGRAVE 395663700 PERTH 893222808 MELBOURNE 386208900 CAMPBELLFIELD 393587700 ADELAIDE 881001200 SOUTH MELBOURNE 392968100 SURRY HILLS 282020555 VARSITY LAKES 755932655 SYDNEY 292725100

Objective: identify companies and directors to approach

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Contents 1. Start with the big numbers 2. Get deeper into the opportunity: – How much spend is Targetable ? – Which companies are Addressable ?

3. Finish with the phone numbers 4. Where the plastic hits the street !

30

Where the plastic hits the street ! India •

Travel largely domestic

•

Overseas trips tend to be longer durations

•

Gradual take up of corporate cards

•

80-90% corporate air fares still on Invoice (BSP moving to 7 days)

•

Companies want Individual liability – leads to low credit limits on cards

•

Growing demand in e-commerce – domestic and overseas

•

Growing demand for products such as debit and pre-paid

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Where the plastic hits the street ! China •

Cash is King – changing winds – low desire for transparency

•

Lower demand for “Fam” trips/ Incentive trips (re-adjustment)

•

Domestic travel is 95% of all BTS

•

On line booking is the norm (which is on commercial cards)

•

Leisure providing growth in outbound travel (growing middle class)

•

Familiarity with debit cards (not credit or charge)

•

Growing interest for data, reporting and transparency (cards / EMS)

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