© 2014 GuestLogix Inc. R ECAPPING GXI S TRATEGY Presented by: Brett Proud – President & CEO 2013...

© 2014 GuestLogix Inc.

RECAPPING GXI STRATEGYPresented by: Brett Proud – President & CEO

2013 / 2014 GuestLogix Annual & Special Meeting of Shareholders



DISCLAIMERThis presentation includes certain forward-looking statements that are based upon current expectations, which

involve risks and uncertainties associated with our business and the environment in which the business

operates. Any statements contained herein that are not statements of historical facts may be deemed to be

forward-looking, including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”,

“intend”, and similar expressions to the extent they relate to the Company or its management. The forward-

looking statements are not historical facts, but reflect GuestLogix’ current expectations regarding future results

or events. These forward-looking statements are subject to a number of risks and uncertainties that could

cause actual results or events to differ materially from current expectations, including the matters discussed

under “Risks and Uncertainties” in the Filing Statement filed on May 12, 2014 with the regulatory

authorities. GuestLogix assumes no obligation to update the forward-looking statements, or to update the

reasons why actual results could differ from those reflected in the forward-looking statements.


GUESTLOGIX PROGRESS


GUESTLOGIX PROGRESS

Grow the Number of Transactions That We Process

12 months endingMarch 31, 2012

$572MAnnual GTV Run Rate

5New or Renewed

Customers



8Additional New or

Renewed Customers

Acquired Initium Onboard Adding 250M PAX Trips



10New or Renewed

Customers


GUESTLOGIX PROGRESS

Grow the Average Value of the Transactions That We Process

GuestLogix has seen a 30% Growth inAverage Transaction Value over past 2 Years

$11.66

$15.11

March 31, 2012 March 31, 2014

$12.74

March 31, 2013


GUESTLOGIX PROGRESS

Grow the Fees We Earn Per Transaction That We Process

GuestLogix has Grown the Amount of Accounts Incorporating Two or More GuestLogix Services by 180%

11

31

March 31, 2014March 31, 2012

16

March 31, 2013


GUESTLOGIX PROGRESS

Grow the Number of Transactions That We Process

Grow the Average Value of the Transactions That We Process

Grow the Fees We Earn per Transaction That We Process

• GTV Increased 61% over 2 Years• 45 New Customers Added in 2 Years

• 30% Growth in Average Transaction Value in 2 Years

• 180% Increase in Accounts with Two or More GXI Services


GUESTLOGIX PROGRESS

Over the past 6 quarters, GuestLogix is now back on a path of quarter over quarter revenue growth,

with a 37% increase in revenue from Q4 2012

Continued Q over Q Revenue Growth

$6.2M

Q4 ‘12

$7.0M

Q1 ‘13

$7.2M

Q2 ‘13

$8.0M

Q3 ‘13

$8.3M

Q4 ‘13

$8.5M

Q1 ‘14


STRATEGY REVIEW


STRATEGY REVIEW

HOME TRANSFER / AIRPORT

ONBOARD HOTEL

THE PASSENGER TRAVEL JOURNEY

AIRPORT / TRANSFER


STRATEGY REVIEW

THE PASSENGER TRAVEL JOURNEY

ONBOARD


STRATEGY REVIEWFOOD & BEVERAGE

DUTY FREE / DUTY PAID

ENTERTAINMENT / CONNECTIVITY

DESTINATION CONTENT

ANCILLARY TYPES ANCILLARY TYPES


STRATEGY REVIEWFOOD & BEVERAGE



DESTINATION CONTENT

IN-FLIGHT CATERERS

DUTY FREE CONCESSIONAIRES

IFEC PROVIDERS

ONBOARD RETAIL TECH COMPANIES

ATTRACTION & TRANSPORT VENDORS

ANCILLARY TYPES

PROVISIONED BY

ANCILLARY TYPES

PROVISIONED BY


STRATEGY REVIEW

PREPAID BAGGAGE FEES

LOUNGE ACCESS

FREQUENT FLYER MILES

HOTEL & CAR

TRAVEL AGENCIES

GDS SYSTEMS

HOTEL & CAR RENTAL COMPANIES

BAGGAGE FEES

SEAT UPGRADES

PRIORITY BOARDING

GDS SYSTEMS

LOUNGE OPERATORS

AIPORT TECH VENDOR

RESTAURANT RESERVATION

GROUND TRANSPORT

RESTAURANT SYSTEMS & AGGREGATORS


HOTEL CAR PICK UP

RETURN SEAT UPGRADES

DESTINATION CONTENT

GDS SYSTEMS


LOCAL ATTRACTIONSLOUNGE ACCESS

LOUNGE ACCESS

GDS SYSTEMS

ANCILLARY TYPES

PROVISIONED BY

INSURANCE COMPANIES


STRATEGY GOAL

UNDERLYINGTRANSACTION PROCESSOR

FOR ALL ANCILLARIESAT ALL TOUCHPOINTS

OF THE TRAVEL JOURNEY


KEY STRATEGY ENABLERS

GLOBAL CHANNEL PARTNERSHIPS ONBOARD OFF BOARD

TODAYTODAY



GLOBAL CHANNEL PARTNERSHIPS

TARGETSTARGETS

ONBOARD OFF BOARDTODAYTODAY



GLOBAL PAYMENT TECHNOLOGIES

TRANSACTION PROCESSING

ENGINE® (TPE®)

Payment application developed to securely

capture payments in any region through any access point in any connectivity

scenario.

GLOBAL PAYMENT GATEWAY™

(GPG™)

Certified global network of payment service providers (PSPs) to enable merchants to process payments in any

country.

GLOBAL CERTIFICATIONS

82 payment industry & operational certifications that allow the GuestLogix TPE® & GPG™ to operate

in 114 countries today.



GLOBAL PAYMENT TECHNOLOGIES

TRANSACTION PROCESSING

ENGINE® (TPE®)

GLOBAL PAYMENT GATEWAY™

(GPG™)

GLOBAL CERTIFICATIONS

Enhance Global Reach Shortened Deployment Time Lower Support Costs



PEOPLE PROCESS TECHNOLOGY• Proven Global Operating

Capability

• Corp-wide Improvement Initiatives:

• Branding & Marcom

• Technology Innovation

• Internal Communication

• Knowledge Sharing

• Transition GXI from a Customized Solution company to a Product Company

• ‘Fenced-Off’ R&D resources in Moncton Product Innovation Lab

• Faster, more reliable deployment capability

• Significantly lower maintenance / support costs

• Employee Survey Highlights:

• Trust in the organization

• Positive work environment

• Teamwork

• Communication

• Voluntary Turnover is 18% below industry norms


BUSINESS MODEL TRANSITION

KEY STRATEGY ENABLERS ARETRANSITIONING GUESTLOGIX FROM

A HARDWARE-BASED TRANSACTION PROCESSORTO

A SOFTWARE-BASED TRANSACTION PROCESSOR

NOTE: SW-BASED TRANSATION PROCESSING LEVERAGES 3RD PARTY HARDWARE TO CAPTURE TRANSACTIONS


STRATEGIC OPPORTUNITIES


INDUSTRY / ANCILLARY TRENDS

• Ancillaries still critical to airlines– Forecast 2014: $50+ billion– Estimate 2015: $70+ billion

• Management of ancillaries across the travel journey is chaotic– Ancillaries are captured by various airline and third-party providers– Little to no standards in place– Airlines cannot properly measure ancillary revenues - no business intelligence

tools in place

• Industry lacks a comprehensive ancillary revenue management platform


NEED FOR ANCILLARY PLATFORM(S)

• One or more technology players will emerge soon to fill the gap in the market

• Airlines will move to a provider who can cover the entire travel journey

• Many players are currently positioning themselves to capitalize on this market gap

• There will be platform winners


ANCILLARY REVENUE MANAGEMENT

PRODUCT / SERVICE PROVISIONING




AIRPORT / TRANSFER


GROUND TRANSPORT

LOCAL ATTRACTIONS

HOTEL

HOTEL CAR PICK UP


DESTINATION CONTENT

LOUNGE ACCESS

TRANSFER / AIRPORT

BAGGAGE FEES

SEAT UPGRADES

PRIOIRITY BOARDING

LOUNGE ACCESS

ONBOARD

FOOD & BEVERAGE



DESTINATION CONTENT

HOME

LOUNGE ACCESS


HOTEL & CAR





AIRPORT / TRANSFER


GROUND TRANSPORT

LOCAL ATTRACTIONS

HOTEL

HOTEL CAR PICK UP


DESTINATION CONTENT

LOUNGE ACCESS

TRANSFER / AIRPORT

BAGGAGE FEES

SEAT UPGRADES

PRIOIRITY BOARDING

LOUNGE ACCESS

ONBOARD

FOOD & BEVERAGE



DESTINATION CONTENT

HOME

LOUNGE ACCESS


HOTEL & CAR


CONTENT & AD MANAGEMENT



MULTI-ACCESS ENABLEMENT


AIRPORT / TRANSFER


GROUND TRANSPORT

LOCAL ATTRACTIONS

HOTEL

HOTEL CAR PICK UP


DESTINATION CONTENT

LOUNGE ACCESS

TRANSFER / AIRPORT

BAGGAGE FEES

SEAT UPGRADES

PRIOIRITY BOARDING

LOUNGE ACCESS

ONBOARD

FOOD & BEVERAGE



DESTINATION CONTENT

HOME

LOUNGE ACCESS


HOTEL & CAR







AIRPORT / TRANSFER


GROUND TRANSPORT

LOCAL ATTRACTIONS

HOTEL

HOTEL CAR PICK UP


DESTINATION CONTENT

LOUNGE ACCESS

TRANSFER / AIRPORT

BAGGAGE FEES

SEAT UPGRADES

PRIOIRITY BOARDING

LOUNGE ACCESS

ONBOARD

FOOD & BEVERAGE



DESTINATION CONTENT

HOME

LOUNGE ACCESS


HOTEL & CAR



ONLINE / OFFLINE TRANSACTION CAPTURE





AIRPORT / TRANSFER


GROUND TRANSPORT

LOCAL ATTRACTIONS

HOTEL

HOTEL CAR PICK UP


DESTINATION CONTENT

LOUNGE ACCESS

TRANSFER / AIRPORT

BAGGAGE FEES

SEAT UPGRADES

PRIOIRITY BOARDING

LOUNGE ACCESS

ONBOARD

FOOD & BEVERAGE



DESTINATION CONTENT

HOME

LOUNGE ACCESS


HOTEL & CAR




GLOBAL PAYMENT PROCESSING





AIRPORT / TRANSFER


GROUND TRANSPORT

LOCAL ATTRACTIONS

HOTEL

HOTEL CAR PICK UP


DESTINATION CONTENT

LOUNGE ACCESS

TRANSFER / AIRPORT

BAGGAGE FEES

SEAT UPGRADES

PRIOIRITY BOARDING

LOUNGE ACCESS

ONBOARD

FOOD & BEVERAGE



DESTINATION CONTENT

HOME

LOUNGE ACCESS


HOTEL & CAR





ANALYTICS & BUSINESS INTELLIGENCE PLATFORM





AIRPORT / TRANSFER


GROUND TRANSPORT

LOCAL ATTRACTIONS

HOTEL

HOTEL CAR PICK UP


DESTINATION CONTENT

LOUNGE ACCESS

TRANSFER / AIRPORT

BAGGAGE FEES

SEAT UPGRADES

PRIOIRITY BOARDING

LOUNGE ACCESS

ONBOARD

FOOD & BEVERAGE



DESTINATION CONTENT

HOME

LOUNGE ACCESS


HOTEL & CAR






APIs FOR AIRLINE AND 3RD PARTY SYSTEMS








APIs FOR AIRLINE AND 3RD PARTY SYSTEMS


AIRPORT / TRANSFER


GROUND TRANSPORT

LOCAL ATTRACTIONS

HOTEL

HOTEL CAR PICK UP


DESTINATION CONTENT

LOUNGE ACCESS

TRANSFER / AIRPORT

BAGGAGE FEES

SEAT UPGRADES

PRIOIRITY BOARDING

LOUNGE ACCESS

ONBOARD

FOOD & BEVERAGE



DESTINATION CONTENT

HOME

LOUNGE ACCESS


HOTEL & CAR



ANCILLARIESAT ALL TOUCHPOINTS

OF THE TRAVEL JOURNEY

STRATEGY GOAL


FOR ALL


STRATEGY GOAL – REDUX


POTENTIALPLATFORM WINNERS

FOR ALL


CAN GXI BE A PLATFORM WINNER ?

Winning Ancillary PlatformsProduct / Service

Provisioning

Content & Ad

ManagementContent

Multi-Access Enablement

Transaction Capture

Payment Processing

Analytics / BI

APIs

SCORE 5 5 5 5 5 5 5 5

GXI 1 2 2 4 5 5 4 4

GuestLogix currently lacks sufficient scale and has certain capability gaps to become a platform winner as-is


STRATEGIC POSSIBILITIES

TRANSACTION PROCESSOR(s)(TO ENHANCE SCALE)

ANCILLARY PROVISIONER(s)(TO FILL GAPS)

PLATFORM WINNER


SUMMARY


SUMMARY

BEST POSITIONED COMPANY IN THIS SPACE

• SOUND STRATEGY

• ORGANIC GROWTH

• BUSINESS MODEL TRANSITION

• MARGIN EXPANSION

• STRATEGIC POSSIBILITIES

© 2014 GuestLogix Inc. R ECAPPING GXI S TRATEGY Presented by: Brett Proud – President & CEO 2013...

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Transcript of © 2014 GuestLogix Inc. R ECAPPING GXI S TRATEGY Presented by: Brett Proud – President & CEO 2013...