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ESCAPE LOUNGE WHOLLY OWNED BY MANCHESTER AIRPORT GROUP MANCHESTER AIRPOT GROUP HAS DEVELOPED THE ESCAPE BRAND OVER 25+ YEARS 9 lounges in the UK and US (BDL, MSP, and OAK) AGENDA FOR TODAY THE DEMAND FOR COMMON-USE LOUNGES and HOW THAT DEMAND WILL BE MET IN THE PRESENT AND NEAR FUTURE

THE DEMAND FOR AIRPORT LOUNGES Airport Tactic to reverse leakage Minimal cannibalization, increases avg. dwells Common-use is more efficient Common-use unlocks revenue Provide a differentiated experience Customer Separation from concourse Quality of separation Unlimited F&B Business services Spa services A differentiated experience >10% of airline customers demand lounges Drives brand loyalty Induces customers off the gate in IRROPS Provides a differentiated experience Airline

THE DEMAND FOR AIRPORT LOUNGES Airport Tactic to reverse leakage

THE DEMAND FOR AIRPORT LOUNGES Airport Min cannibalization; increase avg dwell

THE DEMAND FOR AIRPORT LOUNGES Airport Common-use is more efficient

THE DEMAND FOR AIRPORT LOUNGES Airport Common-use unlocks airport revenue

THE DEMAND FOR AIRPORT LOUNGES Airport Attract international service

THE DEMAND FOR AIRPORT LOUNGES Airport Provide a differentiated, premium experience

THE DEMAND FOR AIRPORT LOUNGES Customer Separation from concourse

THE DEMAND FOR AIRPORT LOUNGES Customer Quality of separation

THE DEMAND FOR AIRPORT LOUNGES Customer Unlimited F&B

THE DEMAND FOR AIRPORT LOUNGES Customer Business services

THE DEMAND FOR AIRPORT LOUNGES Customer Spa services

THE DEMAND FOR AIRPORT LOUNGES Customer Segment seeking a differentiated, premium experience

THE DEMAND FOR AIRPORT LOUNGES Airline >10% of airline customers demand lounges Expected with international long-hail Drives brand loyalty Induces customers off the gate in IRROPS Provides a differentiated experience

THE DEMAND FOR AIRPORT LOUNGES Airport Centerpiece of airport-wide premium experience option Tactic to reverse leakage Minimal Cannibalization, Increases Avg. Dwells Common-use is more efficient Common-use unlocks revenue Provide a differentiated experience Separation from concourse Quality of separation Unlimited F&B Business services Spa services A differentiated experience Customer >10% of airline customers demand lounges Drives brand loyalty Induces customers off the gate in IRROPS Provides a differentiated experience Airline A differentiated, luxury experience

THE DEMAND FOR AIRPORT LOUNGES Airport Centerpiece of airport-wide premium experience option Tactic to reverse leakage Minimal Cannibalization, Increases Avg. Dwells Common-use is more efficient Common-use unlocks revenue Provide a differentiated experience But can a luxury common-use lounge experience be delivered in an economically sustainable manner? Separation from concourse Quality of separation Unlimited F&B Business services Spa services A differentiated experience Customer >10% of airline customers demand lounges Drives brand loyalty Induces customers off the gate in IRROPS Provides a differentiated experience Airline A differentiated, luxury experience

THE DEMAND FOR AIRPORT LOUNGES Airport Centerpiece of airport-wide premium experience option Tactic to reverse leakage Minimal Cannibalization, Increases Avg. Dwells Common-use is more efficient Common-use unlocks revenue Provide a differentiated experience But can a luxury common-use lounge experience be delivered in an economically sustainable manner? Separation from concourse Quality of separation Unlimited F&B Business services Spa services A differentiated experience Customer >10% of airline customers demand lounges Drives brand loyalty Induces customers off the gate in IRROPS Provides a differentiated experience Airline A differentiated, luxury experience Until recently, the answer has usually been no

HOW DID AIRPORTS PROCURE LOUNGES? THE OLD MODEL UNTIL VERY RECENTLY, AIRPORTS HAD TO: PAY FOR LOUNGE CAPEX and PAY FOR LOUNGE OPERATIONS To be P&L breakeven, zero capex *and* luxury? Very rare, reserved for the Top 20 int l gateways

HOW DID AIRPORTS PROCURE LOUNGES? THE OLD MODEL UNTIL VERY RECENTLY, AIRPORTS HAD TO: PAY FOR LOUNGE CAPEX

HOW DID AIRPORTS PROCURE LOUNGES? THE OLD MODEL UNTIL VERY RECENTLY, AIRPORTS HAD TO: and PAY FOR LOUNGE OPERATIONS

HOW DID AIRPORTS PROCURE LOUNGES? THE OLD MODEL To be P&L breakeven, zero capex *and* luxury?

HOW DID AIRPORTS PROCURE LOUNGES? THE OLD MODEL To be P&L breakeven, zero capex *and* luxury? Very rare, reserved for the Top ~20 int l gateways

HOW DO AIRPORTS PROCURE LOUNGES NOW? THE NEW MODEL NEW ENTRANTS HAVE DISOVERED NEW BUSINESS MODELS THAT: NO CAPEX FROM THE AIRPORT and NO SUBSIDIZATION OR RISK IN THE COST OF OPERATIONS and DELIVER THE DIFFERENTIATED, LUXORIOUS LOUNGES THAT ALL STAKEHOLDERS DEMAND Procured like any concession with no subsidy of any kind from airports or airlines Not just for the big guys anymore Accessible: terminal as small as 1.25-1.5 million enplanements

HOW DO AIRPORTS PROCURE LOUNGES NOW? THE NEW MODEL NEW ENTRANTS HAVE DISOVERED NEW BUSINESS MODELS THAT: NO CAPEX FROM THE AIRPORT and NO SUBSIDIZATION OR RISK IN THE COST OF OPERATIONS and DELIVER THE DIFFERENTIATED, LUXORIOUS LOUNGES THAT ALL DEMAND DEMAND Procured like any concession with no subsidy of any kind from airports or airlines Not just for the big guys anymore Accessible: terminal as small as 1.25-1.5 million enplanements

HOW DO AIRPORTS PROCURE LOUNGES NOW? THE NEW MODEL NEW ENTRANTS HAVE DISOVERED NEW BUSINESS MODELS THAT: and NO SUBSIDIZATION OR RISK IN THE COST OF OPERATIONS and DELIVER THE DIFFERENTIATED, LUXORIOUS LOUNGES THAT ALL DEMAND DEMAND Procured like any concession with no subsidy of any kind from airports or airlines Not just for the big guys anymore Accessible: terminal as small as 1.25-1.5 million enplanements

HOW DO AIRPORTS PROCURE LOUNGES NOW? THE NEW MODEL NEW ENTRANTS HAVE DISOVERED NEW BUSINESS MODELS THAT: and DELIVER THE LUXORIOUS LOUNGES THAT ALL STAKEHOLDERS DEMAND Procured like any concession with no subsidy of any kind from airports or airlines Not just for the big guys anymore Accessible: terminal as small as 1.25-1.5 million enplanements

HOW DO AIRPORTS PROCURE LOUNGES NOW? THE NEW MODEL NEW ENTRANTS HAVE DISOVERED NEW BUSINESS MODELS THAT: NO CAPEX FROM THE AIRPORT and NO SUBSIDIZATION OR RISK IN THE COST OF OPERATIONS and DELIVER THE DIFFERENTIATED, LUXORIOUS LOUNGES THAT ALL DEMAND DEMAND Procured like any concession with no subsidy of any kind from airports or airlines Not just for the big guys anymore Accessible: terminal as small as 1.25-1.5 million enplanements

HOW DO AIRPORTS PROCURE LOUNGES NOW? THE NEW MODEL NEW ENTRANTS HAVE DISOVERED NEW BUSINESS MODELS THAT: NO CAPEX FROM THE AIRPORT and NO SUBSIDIZATION OR RISK IN THE COST OF OPERATIONS and DELIVER THE DIFFERENTIATED, LUXORIOUS LOUNGES THAT ALL DEMAND DEMAND Procured like any concession with no subsidy of any kind from airports or airlines Not just for the big guys anymore Accessible: terminal as small as 1.25-1.5 million enplanements

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