PrePay Technologies PrePay Technologies: the reason why?

Accor Services’ business model

Affiliate the Establish Ticket Float Programme Redemption Final Acceptance Corporate Production mgt design Users Network relationships & Delivery

1. Network access 2. Issuer status 3. Transaction and control & competency authorization/ processing

PPT integrates 3 key stages … and speeds up in the Value Chain: our time to market for 1. Network access 2. Issuer status Electronic Transactions 3. Transaction authorization / Processing 2 PrePay Technologies: A Prepaid Card Solutions Provider

 Acquisition in September 2007

 A value-added processing platform for Prepaid Card solutions

 60 specialist staff dedicated to prepaid

 Business volume: 400 Million €

 # transactions: 40 Million

3 3 Expertise: A fully integrated services model

Programme design, integration & support • Programme delivery and management • 24/7 support, fully customisable self service options

Issuing & processing • In house processing on closed, filtered & open payment networks • MasterCard certified prepaid processor

 Compliance & regulation • E-Money licence, FSA regulated (UK) • ‘Passported’ across Europe • Compliance & regulatory support (KYC)

4 4 Business Model: A fully integrated services model

Set up the Ongoing Business Services

International Regulatory Regulatory Transaction Program Program scheme operations Approval & processing design implementation handling (E-Money Support (MasterCard) compliance)

Set-up fees Fee per transaction

5 Card cycle

Card Issuing

Card Card usage Activation Unique expertise in electronic prepaid solutions for all type of requirements & markets

Cardholder B2B2E Recruiting through corporate clients Recruitment B2R2C Model Recruiting through retail business channels

Closed Redemption within a single retailer Redemption Network Filtered Redemption within a selection of retailers (Loop)

Open Redemption within the entire network

Disposable Load/activate once, redeem, throw away Card Disposable Account Cycle Reloadable Reload and redeem many times

Corporate Central load Top up Origins Consumer High street cash top-up, bank transfer, bank cards, Post-Office,… 7 Compliance and regulation

Numerous aspects need to be considered and addressed in prepaid programmes. PPT manage most of these requirements and can advise on many others.

8 8 UK market leader in operating prepaid solutions

Market segments:

• Retail gift • Corporate incentive • Promotions / Rebates

• Payroll • Insurance claims • Corporate Expense

• Prepaid Debit / General Purpose/UUB

9 9 UK leader in the Gifting market with an estimated 50% Market share

50

45

• Buyagift • BHS 40 • Habib Bank • P&MM • E-Group 35 • Caffe Nero • Coinstar • Incomm • Blackhawk 30 • Virgin Money • Sainsbury • New Look 25 • Accor Services • Yorkshire Bank • Clydesdale Bank • Capital Incentives • Capital Incentives 20 • Daily Mirror • Daily Mirror • RFU • RFU • Lovefilm • Lovefilm • Family Fund • Family Fund 15 • Ticketmaster • Ticketmaster • Gift Days Out • Gift Days Out • Western Union • Western Union • Western Union 10 • Laura Ashley • Laura Ashley • Laura Ashley • • Burton • Burton • • Wallis • Wallis • • Dorothy Perkins • Dorothy Perkins

Number of programmes under Management programmes Number of 5 • Outfit • Outfit • Outfit • Outfit • Evans • Evans • Evans • Evans • Miss Selfridges • Miss Selfridges • Miss Selfridges • Miss Selfridges • Top Man • Top Man • Top Man • Top Man 0 • Top Shop • Top Shop • Top Shop • Top Shop 2002• Comet 2003• Comet 2004• Comet 2005• Comet 2006• Comet 2007 • • Debenhams • Debenhams • Debenhams • Debenhams • Debenhams

10 20m cards under management

Capital Incentives Family Fund Comet Debenhams Bhs Sainsbury’s Laura Ashley New Look Paul Smith Ticketmaster House of Fraser Fat Face Rugby Football Union LOVEFiLM Sainsbury’s Virgin Money Western Union P&MM Daily Mirror Group Clydesdale Bank Yorkshire Bank HBZ Bank

11 11 Major benefits for clients

 One stop-shopping

 An integrated offer

 All types of prepaid programmes

 Transnational solution across Europe

 Truly localised teams

12 12 A unique positioning in the value chain

Program Compliance design, Physical Acceptance Authorization & Main players integration Distribution network platform Regulation & interfaces characteristics support

Prepay Tech. Integrated solution

Banks Strong focus on Open Loop

Processors Strongly focused on one skill

Focused Retailers on Close Loop

Potential competitors Telco Emerging player

13 How to leverage PPT expertise & capabilities?

Existing Products New Products

• Access untapped markets • Cost savings Opportunities • Existing portfolio of • Additional functionalities clients/merchants

• Existing models • Speed to market adoption Challenges • Resistance to change • Competitive race

Replacement according to Development of value- market needs added prepaid services

14 PrePay Technologies as a strategic tool for Accor Services

43 quintillion wrong options…

… 1 right answer!

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