the only pureplay company in the B2E sector

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November 2007
the only pure-play company in the B2E sector
Growth Company Investor
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overview

• providing incentive and motivation services to
  over 600 blue chip clients
• fast growing consumer incentives business
• driving sales, productivity, staff retention and
  addressing absenteeism
• proven management team
• 35 CAGR over the last 4 years
• profitable, cash generative with a growing
  dividend
• fragmented market creating consolidation
  opportunities

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the board
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• current management team took control in 2002

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business mix (gross profit)
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motivation and incentive programmes

• managed motivation programmes
• advice
• account management
• communications
• reward fulfilment
• employee or third party channel
• sales, cross sales, productivity staff loyalty
  improvements of 10 - 20
• 2-3 year contracts
• management success linked fees
• scaleable technology solutions
• long term sustainable income

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www.rewardbanking.com www.rewardvouchers.com
www.recogniseme.com
www.spreecard.com
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employee benefits communications

• added value employee benefits
• Lifestyles - discount package
• Flex vouchers - voucher discounts
• Childcare - tax benefits
• Bikes for work - tax benefits
• Green Travel Plan tax benefits
• employee communications
• Summersault - employee news publishing (online
  print)
• product appeal to public sector
• scaleable technology solutions
• employee loyalty / retention
• robust ongoing income stream

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www.lifestylerewards.com www.salary-plus.co.
uk
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incentive travel live events

• incentive travel
• top performer recognition
• exclusive, 5, hosted group events
• live events
• business conference
• communicate brand values
• travel / people logistics / creativity
• new client wins through creativity reputation
• retained through strong relationships
• up front fees commissions
• UK international

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www.rewardtravel.co.uk
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sales promotion

• on pack consumer incentives
• loyalty solutions
• fixed fee promotional risk management
• flights, holidays, UK attractions
• merchandise sourcing
• Filmology ODEON, Cineworld b2b rights
• clients are SP Agencies FMCG corporates
• high margin up front fee income

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www.source-e.co.uk www.enticebenefits.com
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more than 600 blue chip clients ...
no client accounts for more than 10 of gross
income...
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growth drivers

• cost and availability of human resources
• number of jobs increased by 248,000 over the
  year to 31m in June 2006
• highest figure since comparable records began in
  1959
• trend towards service sector
• 82 of jobs are now in the service sector
• commercial imperative to
• drive sales
• improve staff retention loyalty
• average cost of turnover per employee is now
  8,200 rising to 12,000 for managers
• maximise productivity
• cost of absence
• 559 per employee private sector
• 680 per employee public sector

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Source CIPD data 2006, National Statistics 2006,
CBI DTI
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strategy

• objective - top three in each sub-sector
• new product invest to drive organic growth
• SpreeFlex Visa card employee discount card
• Filmology specialist team for film based
  promotions
• Green Travel Plan tax efficient bus travel for
  employees
• acquisition
• consolidate to gain critical mass
• bolt on to increase vertical integration and
  cross sales
• international partnerships

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financial highlights interims

• forward visibility of order book 92 of annual
  budgeted gross profit at 31th October 2007 (2006
  87)
• positive outlook

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profit and loss

• unbroken profit record
• 35 compound profit growth
• over 4 years
• 50 organic
• 50 from acquisitions

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operating profit growth
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revenue model

• management charges 70
• monthly or in advance
• agency fees 15
• monthly on redemption
• discounts, commissions marketing contributions
  15
• as earned

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acquisitions
Promotional risk management

• integrated into pmm offices
• completed July 2004
• consideration of 170k
• 2004 operating profit of 238k

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acquisitions

• completed August 2007
• Ascot based business
• merge with Archer Young to form AYMTM
• add strong client base
• strengthened management new MD
• consideration of 860k
• 640k deferred against performance benchmarks
  for joint business
• 2006 operating profit of 74k
• future cost savings of 75k

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acquisitions

• november 2007
• Derby based business
• venue finding, event management and production
• strong market leading position
• venue finding is a growing sector due to
  increasing outsourcing of business services
• venue finding adds a new core product to the
  Motivcom offering
• 1.4m operating profits in 2006
• future annual cost savings 100k
• full year effect of their 2006 Rand acquisition
  300k
• initial consideration 15m 2m deferred

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rationale

• strong strategic fit with Motivcom group
• new product in venue finding complimentary
  service
• enhanced event production capabilities
• separate client list to Motivcom
• excellent cross sell up sell opportunities
• strong existing management team
• financial
• profitable and growing - organically and through
  acquisition
• cost savings through streamlining operations and
  back office synergies
• group market cap from 38m to estimated 50m

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competitive landscape

• highly fragmented market
• few portfolio competitors
• 5 - 6 key players in each sector
• 5bn - 8bn market estimates

Venue Find
GroupTravel
EventMgt
SalesPromotion
Fixed Fee

Motivation
Employee Benefits
Employee Communications
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summary

• strong sales and new product development skills
• acquisitions completed and successfully
  integrated
• strong economic growth drivers
• clear and quantifiable strategic plan
• proven management team

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appendices
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board biographies

• David Christopher Lebond - Executive Director
• David joined the PMM Group as Managing Director
  of Brevis Marketing Services Limited in 1998.
  David is a Director of the ISP (Institute of
  Sales Promotion) and BPMA (British Promotional
  Merchandise Association). Davids
  responsibilities cover all aspects of the sales
  promotion division, the employee communications
  and benefits areas and the human resources
  function within the Group.
• John Murray Sylvester - Executive Director
• John started his career in the motivation agency
  business in 1984 following the completion of a
  business degree. In 1989, he joined PMM and the
  Board in 1996. He played a pivotal role in the
  development of a formal educational qualification
  for the incentive industry, helping launch the
  Motivation Diploma through the ISP in March 2005.
  John is responsible for the motivation
  incentives division.
• Nigel Phillip Cooper - Executive Director
• Nigel set out on a career in sales following
  completion of a degree in political studies in
  1984 and joined the motivation industry in 1990.
  Nigel joined PMM in January 2000 and was
  appointed Chairman of Eventia (The Events
  Industry Association) in December 2005. He is
  responsible for the incentive travel and live
  events division.
• Susan Ann Hocken - Finance Director
• Susan joined Grant Thornton, London, in 1976 and
  qualified as a Chartered Accountant in 1980. In
  1984, she joined their Corporate Finance
  Department as a Senior Manager, where she
  assisted clients with acquisitions, flotations
  and fund raising. In 1988 she took on the role of
  the Finance Director of a management buy-out
  construction company and was subsequently the
  Finance Director of two venture capital backed
  companies.
• Susan joined the Group as Finance Director in
  1998. Susans responsibilities cover finance,
  acquisitions, information technology, quality and
  general office management and Company secretarial
  functions.

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board biographies

• Colin Thomas Lloyd - Non-Executive Chairman
• Colin founded KLP in 1970, one of the first
  promotional and marketing companies to operate in
  the United Kingdom. The company listed on the USM
  in 1983. By 1989 KLP Group PLC, operated 35
  subsidiaries in 12 countries and was listed on
  the main market of the London Stock Exchange. In
  1990 KLP Group PLC was acquired by RSCG SA.
• In 1993 he became the Chief Executive of the
  Direct Marketing Association (DMA) and in 2002
  became its President. He was Vice President of
  the Federation of Direct Marketing (Brussels),
  the inaugural President of the International
  Federation of Direct Marketing Associations, a
  Council Member of the Advertising Association and
  a Director of the Advertising Standards Board of
  Finance.
• He left the DMA in 2002 and remains Chairman of
  the Telephone Preference Service and Chairman of
  the Trustees of CAM (Communication, Advertising
  and Marketing) Education Foundation. In 2003 he
  was appointed President of the Institute of Sales
  Promotion (ISP). He is a fellow of CAM and a
  fellow of the ISP.

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current group structure
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background

• established in 1989 as part of Page Moy Ltd
• MBO in 1998
• current management team took control in 2002
• AIM float in August 2004

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balance sheet
We are cash generative with net cash balances in
excess of 7 million
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cash flow
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awards

• ITMA Awards
• 2002 - 3 bronze, 2 silver 1 gold
• 2003 - 1 bronze, 2 silver, 3 gold platinum
• 2004 - 3 gold platinum
• 2005 - 2 bronze, 4 silver, 4 gold platinum
• 2006 - Motivcom win 6 awards
• Motivation Awards
• 2002 - 5 winners plus Grand Prix
• 2003 - 3 winners plus Grand Prix
• 2004 - 4 winners plus 2 runners-up
• 2005 - 6 winners plus 4 runners-up
• 2006 - 5 winners plus Grand Prix
• Sunday Times - Top 100 best small company
• Employee Benefit Magazine Awards
• 2005 - Best New Employee Benefits Launch Silver
• 2006 - Grand Prix and Most Effective Voluntary
  Benefits Plan

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• Motivcom plc
• Rockingham Drive
• Linford Wood
• Milton Keynes
• MK14 6LY
• www.motivcom.com

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