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Krakow - IP in Innovative Economy 6-9-13 You have product – patent backed – clear demand & great consumer price testing – easy! ID Tag -keeping you in touch with your luggage In UK & US office we offer: Corporate Recovery - IP assets Sales, insolvency valuations IP Advisory - IP Strategy – IP backed finance – increasing exit valuations IP Due Diligence - Commercial IP and M&A – using IP as bank security IP Valuations - Patents, brands, software & other IP assets IP Brokerage - Monetise IP assets (purchase, sale, licence etc.) © Metis Partners 2013 The Problem – we’ve all been there!!!! AIRLINES LOSE A BAG EVERY SECOND © Metis Partners 2013 The Problem – LOL !!!! LOST BAGGAGE TO DOUBLE BY 2019 (SITA) © Metis Partners 2013 The Market – its big – yippee! The Market Market Segments CAGR 550m 170m Frequent Flyers pa Total Flyers pa 50% Experienced Lost Luggage 13% Passengers per month 3m Asia Pacific – Middle East 11% 2.4 m Middle East - Europe 5% 3.5 m Europe – Asia Pacific © Metis Partners 2013 Survey – BIG Revenue Opportunities Revenue Streams Addressable Market 85m $120 Customers who value the need Purchase Price 1.2% $20 10c Annual Subscription Customer Uptake $120m One-off Revenue SMS Reverse Billing © Metis Partners 2013 60% of respondents in Market Research willing to spend $120 $20m Annual Recurring Revenue + SMS Reverse Billing Benefits to LuggageCo ‘Cool’ TECH © Metis Partners 2013 Customer Relationships Value to LuggageCo Everlasting Love © Metis Partners 2013 LuggageCo Supply chain – OMG!!! $PROFITs $PROFITs $SUPPLY CHAIN MARGINs already fixed!!! $PROFITs Wholesalers $PROFITs LuggageCo highest retail price point for accessories is $40!!! © Metis Partners 2013 $PROFITs $PROFITs Profit Pie – little left – need to re-think!! © Metis Partners 2013 Can be constrained by existing business model – unless they really value your IP and competitive advantage it offers them usually best with someone outside top 3 in market Innovations worthless – no route to market Innovations © Metis Partners 2013 Revenue Streams Making money from IP – re-think!! IP Licences – selling a competitive advantage © Metis Partners 2013 IP / Technology Sale Conclusions IP - legal rights but no guarantee of commercial success Must understand current business models & market constraints for similar products Go it alone – B2C direct via internet – global market access IP gives you flexibility to change business model © Metis Partners 2013