1. Welcome

2. Kevin Lake & Tony Rich UKGCVA

3. Welcome New Members Contis Group Limited Into The Blue Guests Arjowiggins Cartamundi Google Play Jake Box Moneytowards.com Ltd Transmission Marketing Wider Wallet Content Card

4. Andrew Johnson Director General UKGCVA Sales Data Q1 2013

5. Q1 2012 v Q1 2013 Consumer Sales 4.6% B2B sales 4.7% Agents 0.86% Paper Vouchers 0.90% Retail 6.19% Leisure 5.68% Gift Cards 7.36% Market Share Gift Cards 68% Gift Vouchers 32%

6. Q1 2012 v Q1 2013 – Consumer Sales Consumer Your stores sales 0.27% Online consumer 27.5% Gift Card Malls 58% Third Party Sales 7.98% Total Consumer Sales 4.6% B2B Direct B2B3.09% Online B2B6.21% Internal Sales130% Total B2B Sales 4.7%

7. Getting the most from your membership

8. UKGCVA Delivers A forum for networking & discussion with industry colleagues Analysis of market trends Research PR Platform for learning and innovation Benchmarking & best practice Point of contact for regulators & legislators

9. A forum for networking & discussion with industry colleagues How? Three member meetings per year, average attendance 100 Smaller project groups for specific discussion Social events Why? One of top two reasons members stay members Best way to learn about the industry is from each other Individual issues are often industry wide Results Well attended meetings by senior personnel Sharing issues helps industry be supportive

10. Analysis of market trends How? Every Issuer member submits quarterly sales data to BDO BDO track data and produce reports on industry wide trends All individual member data is confidential, no member specific data shared Why? One of top two reasons members stay members Gives kudos to the association Allows members to bench mark their sales against the industry Results Members understand what their market share looks like Helps members develop future plans using market share analysis Association and the industry gain PR from data

11. Research How? Forming co-operative to fund in depth research, cost effective for members Using BDO data as a form of research UKGCVA asked to participate in wider research e.g. prepaid Why? Assists members future planning Allows understanding of customers both B2B and consumers Cost effective way of members stretching budgets Results Members get up to date, in depth research they could not afford alone Association and the industry gain PR from data

12. Public Relations How? UKGCVA appoints PR agency Agency works with Association to develop industry, association and member features Various media as well as speaking at related conferences and events Why? UKGCVA acts as one voice Neutral spokesperson, particularly useful in a crisis Working together offering comments from lots of members makes more interesting story Results UKGCVA called on for specific comments from printed media to TV Features in B2B and consumer printed press very successful Features usually include comments from several members

13. Platform for learning & innovation How? Presentations at member meetings and conferences Discussions at project groups & round tables Collation of useful materials and documents distributed to members Why? You are busy, UKGCVA helps highlight specific innovations & opportunities Learn together so you gain from others understanding Saves time in you not filtering out the good from the bad Results Members kept up to date on regulatory changes, e.g. Emoney Directive Currently profiling opportunities in E-gifting and SMS Profiled exhibitions, events and other outside learning platforms

14. Bench marking & best practice How? BDO data Speaking with industry colleagues Specifics of best practice in constitution and other documents from association Why? You know how successful your business is You know what standards customers expect you to fulfil Understand what your competitors are doing Results Thermo chromic ink mark in gift vouchers BDO data showing how your sales track against the industry

15. Point of contact for regulators & legislators How? UKGCVA works with specific government departments, e.g. HM Treasury, HRMC, FSA Assistance in drafting legislation and giving feedback from members Acts as a ‘go between’ members and regulators Why? One voice for industry, regulators may not listen to individuals Allows specific comments from companies to be made without implication to the company Keeps members up to date with proposed changes Results Specific impact on the new Emoney directive Working closely with UK and EU regulators on VAT Explained the rationale behind the Bribery Act

16. Neutral Voice Liaison withWhy? UK TreasuryEmoney Directive VAT UK Revenue & CustomsVAT UK Financial Conduct AuthorityEmoney Directive European UnionVAT Department for Business, Innovation & SkillsPotential Self Regulation

17. Members Flat structure, all members are equal Issuers – members who issue gift cards or gift vouchers Service – members who offer services to the industry The Executive Board 9 members 2 chairs (1 Issuer, 1 Service) Elected by members The Executive Board 9 members 2 chairs (1 Issuer, 1 Service) Elected by members The Secretariat Director General – neutral spokesperson Admin support Outsourced to agency, no employees or office liabilities to UKGCVA PR AgencyData Aggregation Partner Annual Conference Organiser The UKGCVA is governed via its Constitution which is reviewed each year at a members Annual General Meeting.

18. Tools & Resources UKGCVA website –www.ukgcva.co.uk plus members only areawww.ukgcva.co.uk Weekly Newsletter Three Member Meetings per Year Annual Conference – open to all Social Events Project Groups Emails

19. Member Fees 2013/14 For the 6 th year running fees remain the same: £2,200 per member £800 additional fee for data collection for Issuer Members £3,000 + vat Issuer, £2,200 + vat Service

20. Election Not enough candidates came forward There is no precedence in the constitution for this situation Exec meeting this afternoon to agree way forward

21. Business to Business Research 2012

22. What is Business to Business? Employee Incentives and Rewards Customer Loyalty and Promotions Employee Discounts and Benefits Salary Sacrifice Christmas Savings Clubs Insurance Replacement Legislative Vouchers In 2012, 55% of gift cards and vouchers sold were to corporations

23. Research from UKGCVA 2012 UKGCVA members commissioned B2B research Targeted current Buyers and Non-Buyers of gift cards and gift vouchers 148 interviews with clients/buyers –97 clients/buyers supplied by UKGCVA members –51 purchased from list agency 100 interviews with non-buyers –Turnover £10m+ –Local government and charities Asked about: –Employee motivation and rewards –Employee benefits and discounts –Customer loyalty and promotions

24. Results from Buyers 78% of respondents manage both employee and customer rewards

25. Buying Relationships The highest purchasers generally use an agency to manage the whole scheme Some use mix of agent and buying direct 54% use more than one supplier They save us money Easy to manage, easy to reward all staff quickly and consistently Vouchers work globally You can restrict where reward money is spent, which you can’t with cash They have mass appeal Vouchers are attractive because… Lots of choice Easy to manage Well-liked Discounts/Value for money

26. Future Trends Plastic 49% Email 21% SMS 7% Paper 47% In 2 Years Generally Buyers are not familiar with benefits of one channel over another Few salary increases, but rewards can be increased Greater spend if economy improves Tax benefits are not as good as they used to be Unsure about tax implications

27. Results from Non-Buyers All non-buyers were responsible for purchasing products for Employee Benefits, Employee Motivation and Sales Promotion 16% previously purchased vouchers Reasons for not buying –Don’t know –Only purchased on ad-hoc basis –Moved to other products (such as merchandise) –Too expensive –Difficult to manage Non buyers know that they can purchase direct or via an agent They know SMS and Email delivery is possible Don’t know if digital is cheaper than paper and plastic I’d buy more if… Discounts were better I had more contact with sellers or could see more marketing Sellers catered for us as customers Make buying process easier I don’t know

28. Recommendations from Research Reduce costs where possible More aggressive marketing Make buying process simpler and quicker Potential to focus on digital