ABCN… the missing piece

1. ABCN… the missing piece

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

3. Ah…Life at the Network.

4. 45 Minutes to… • Status of ABCN and “the World” • Would you rather be #1? • Identify the ‘next big thing’ • ‘Transparency’? • Turn everything ‘upside down’ • What are your ratios? • Do you want more revenue? So do we! • New tricks for an old trade.

5. Let’s see how much you know about ‘Your Network’ • Belfast • Boston • Bellevue • Beijing • Bombay • Brussels • Buenos Aires • Berlin “I See The Light!”

6. You know what I think… We don’t know enough! We are totally fragmented. We are totally isolated. We are totally without data. We are totally blind. What do you know about ‘your’ Locations Worldwide?

7. We only see the ‘tip’…in our own backyards. What are the ‘trends’? • 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 It’s what you DON’T see that Counts.

8. Why “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 will the next generation look like? If you don’t lead, the view never changes.

9. What does ABCN look like? • 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

10. What will the future bring? • 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 It’s not the big that eat the small, it’s the fast that eat the slow!

11. Is Regus is ‘friend or foe’? Competitors or Colleagues? • Are we constructive or destructive forces? • What can we do if we all band together at ABCN? • What should we do with Regus? • Anything? Murky water makes it hard to tell a friend.

12. I had lunch with Mark yesterday… here is what he said • Regus is investing in its own infrastructure in the UK and elsewhere. • Working or replacement of old IT systems • Upgrading marketing systems • Expanding sales force • Working on becoming more ‘client focused’. • Sounded good to me….but, • Mark also suggested that other operators were ‘price cutting’. • We said we heard the same about Regus • Said Regus was ‘holding firm’ & increasing in most markets.

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

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

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

16. Navigation is tough… …without the right tools

17. What is “transparency”? • Industries should learn from one another. • We think the Serviced Office and the Travel industries can do just that. • You need to ‘see everything’ in one place • All parties 50 10 OBC Model limits Visibility

18. What’s the ‘transparency’ model goal? • Increased Visibility • Increased Revenue • Lower Operating Costs Everyone Wins! Are you ready to get ‘out of the box’?

19. JD is … well, you’ll see.

20. ABCN is ready… for the future

21. And, working together…. …Nothing is impossible. Even walking on water!

22. Get UPSIDE DOWN now!“You want capital or not?” “May all your wishes come true”…an ancient Chinese curse

23. He’s the 325,000,000 sq.ft. man!

24. We went on a Road Show • Create an investment fund for Members. • Have had offers from ‘top 10’ firms. • We now know what we need to do… • Turning “Upside Down” isn’t rolling over. • Here’s what I mean. Sometimes you’re the windshield… …Sometimes you’re the bug!

25. So, “What’s Upside Down”? • What’s your ‘revenue ratio’ of Space to Services? • 60/40, 65/35, 70/30? • Most common is 65/35, and going down. • Declining telecom • Declining Services in general • Feel like things are slipping a little? Make sure you stay connected!

26. Is Upside Down, Right Side up? • What should your ratios be? • 30/70 • Why? Turns you into a ‘non-cyclical service company’. • How? Focus on: • VO…the really big one. • IT…second and rising • HR…hardest to do • Vendor Programs… profitable and easy • Accounting Standards… the easiest and fastest. A revelation is a simple act of faith

27. 1st let’s Focus on the VO! • Global ABCN Backbone • Anywhere Office Access • You ‘own’ the client • A ‘disruptive technology’ • Dedicated Sales and Marketing • Separate Website • Separate Optimization • Separate Marketing Strategy • Who are potential partners • Agency Companies • Registration Companies • IT Companies • ABCN Some things can’t be avoided!

28. Here’s an example White Site - Cell 1. 2. 3.

29. TOTALLY different site

30. TOTALLY different staff

31. TOTALLY global market

32. Others are already there… …Are you?

33. 2nd let’s look at IT & HR • A separate portal for each Center location • Dedicated internal Sales and Marketing staff • Separate Marketing Strategy • Who are potential partners • Clients • Vendors • ABCN Have you built a bridge to nowhere?

34. Dedicated “Client Service Portal”

35. Focus on HR & Services

36. Focus on IT Services

37. 3rd let’s look our Vendors • Variety of programs delivered via the CentreCare Portal or directly. • They have Dedicated Sales and Marketing staff for you to use. • They already have a Separate Marketing Strategy • You already have a Partner! • ABCN WHAT’S YOUR PASSWORD?

38. Let’s do something that others say is impossible…Health Care • It’s Cocktail time here….adios. • OK • OK • OK • OK

39. How about another… • Free to all Centers • Participating in training • $45 revenue per user, per month • Free internal use • Can do ‘custom marketing reports for fee income. • Unique benefit to clients

40. And, just one more…freebie • Free Business Cards to new clients • Web driven process • Install on your client portal or ours • 10% fee on all orders • Nothing magic • Business as usual for ABCN … • More revenue for you

41. We have the ‘team’…do you have the commitment?

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

43. ABCN… the missing piece