NASDAQ: MKGI January 2019 - Monaker Group
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NASDAQ: MKGI Monaker Group Corporate Presentation January 2019
Important Cautions Regarding Forward
Looking Statements NASDAQ: MKGI
Statements in this presentation may constitute forward looking statements and are subject to numerous risks and
uncertainties including but not limited to a lack of adequate capital to enable the Company to execute its business
plan and make important business acquisitions in order to grow the venture to successfully complete the
development of new or enhanced products and services; the lack of market demand for any of the company’s
existing products and services; failure to grow the company’s business to allow it to operate profitability; operating
losses that may impair the Company’s ability as a going concern; any actions by the Company or its affiliate that
may have an adverse effect on the Company’s financial condition; operating results of the business resulting in
negative performance; the success of competitive products and services that are beyond the Company’s control
and other factors that can adversely affect the company and its markets including seasonal changes and other risks
detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission.
Actual results may differ dramatically from those expressed in this presentation. The company disclaims any
obligation to update any statements in this presentation.
© Copyright 2017 Monaker Group, Inc. All Rights Reserved. A Product of CMA. 030818b
2
What We Do NASDAQ: MKGI
Monaker Group : Consolidating & Delivering Instantly-Bookable Vacation Rental
Properties into Mainstream Travel Booking Sites
Vacation Rentals Technology Bridge Global Travel Distributors
Property Managers Monaker Booking Engine (MBE) Travel Websites
• Tour Companies
• Homes
• Airlines
• Apartments
• Online Travel Agencies (OTAs)
• Villas
• Aggregators
• Castles
• Consolidators
• Resort Residences
• Travel Agencies
In prime locations around • Travel Agents
the world
…and ultimately the travel
consumer 3
Examples of Monaker ALR Properties NASDAQ: MKGI
Various Homes, Villas and Castle in the Algarve, Portugal, Tuscany & Portofino, Italy and Monaco
Resort Residences - Four Seasons multi-bedroom in Whistler B.C. and Wyndham Grand Resort Residence in Clearwater Florida
4
Monaker's Extensive Global Properties
by Geographic Region NASDAQ: MKGI
Others
678,261 2%
Resort Residences** Canada
Vacation Rental Units (as of April 15, 2017) 6%
360,000 Asia
Increasing Property Management Contracts 10%
and expect Inventory increase in early 2019 Europe
296,658 Australia 38%
268,642 12%
185,633 217,056
240,000 318,261 South
110,348 USA
America
43,404 15% 17%
56,658
All others Canada Asia Australia South America USA Europe
Vacation
Rental Units Resort
World Region (as of April 15 2017) Residences** Property Total Property Allocation
Europe 318,261 360,000 678,261 38%
USA 56,658 240,000 296,658 17%
South America 268,642 - 268,642 15%
Australia 217,056 - 217,056 12%
Asia 185,633 - 185,633 10%
Canada 110,348 - 110,348 6%
All others 43,404 - 43,404 2%
Total 1,200,000* 600,000 1,800,000 100%
*Monaker is in the process of adding in 800,000 additional properties with primary targets being North America, Europe and Caribbean. ** Wyndham and RCI multi bedroom/kitchen/living room residences within their resorts. 5
OTCQB: MKGI
Why the Travel & Alternative Lodging Space?
6
Digital Travel & Tourism – One of the
World’s Fast-Growing Industries NASDAQ: MKGI
Worldwide Digital Travel Sales1 Online Travel Agency Market
Digital Travel Sales Worldwide1
$565 billion $818 billion
2016 2020 $818B
$756B
$694B
$630B
ALR (alternative lodging rentals) is the fastest $565B
$496B
growing travel sector, yet is still in its infancy
Only 15%
Market Penetration2
Global ALR Market Forecast 2015 2016 2017F 2018F 2019F 2020F
7% CAGR to $193.9B Morgan Stanley survey reveals 19% of leisure and 18% of
by 20213 business travelers have used Airbnb at least once, and will
grow over next 12 months to 25% and 23%, respectively. 4
1) 2016; eMarketer 7-16; 2) Phocuswright; market penetration in 2016; 3) Technavio, 2017 to 2021; 4) Bloomberg News, 11-14-16
Major Opportunity to Channel ALR Products to the Multi-Billion Dollar
Online Travel Agency (OTA) Sector! 7
Multi-Billion Dollar ALR Market
Opportunity NASDAQ: MKGI
Sizing the Alternative Lodging / Vacation Rental Market:
Global ALR industry is expected to grow at a 7% compound
annual growth rate to $194 billion in 2021, making it one of Global Room Bookings Market:
the fastest growing sectors in the travel industry1 $555 Billion2
Private (alternative) accommodations are expected to reach
$106B in 2018, representing 19% of global room bookings
market of $555B2 Private
(alternative)
Industry Research firms are projecting the Alternative Lodging accommoda
share to rise to 20-25% of the general lodging market within a tions, 19%
few years. General
Lodging
Over past decade, Airbnb (~$50B enterprise value), Market,
HomeAway and VRBO (acquired by Expedia in Nov 2015 for 81%
$3.B) have seen rapid adoption of their Direct-to-Consumer
inventory platforms
These firms are taking lodging market share away from the
larger traditional channels and booking entities who do not
have practical access to an ALR reservations and none
instantly bookable
1) Technavio 2017
2) Tnooz Jan 13, 2017 - analyst Susquehanna International Group (SIG)
Confidential - 8
Industry Landscape for Alternative Lodging
Rentals (ALRs) - Travel’s “Hottest Space” NASDAQ: MKGI
1 Million+ Vacation Rentals 3 Million+ Vacation Rentals 1.4 Million+ Vacation Rentals
(Additional 800,000+ in process)
• 100+ countries • 190 countries • 190 countries
• Homes, apartments, villas, • ~50% of properties are • Homes, apartments and villas
castles & resort residences bedrooms in a guest house • Completed 22 acquisitions
• 100% Instantly Bookable
• Limited instant booking • Limited instant booking
• Booking Engine/API provides (Trying to convert >2 million homeowners to (Trying to convert >1 million homeowners to
customizable, Plug & Play achieve a instant-booking solution) achieve instant booking by forcing renewal
capabilities for OTAs • No B2B model developed memberships to give up calendar/pricing
control)
• Raised $10 million in 2016-17
• Raised $2.5 billion in 2016/17 • Limited B2B Model
(65% funded by directors/insiders)
• First-to-market with over 1 • Grew at over 135% in 2016 • Grew >35% in 2015 – forecast to
million instantly-bookable ALR • Made multiple acquisitions be #1 growth area for Expedia2
products
• >$31 billion premarket • Bought by Expedia in Dec. 2015
• $18.5 million market valuation valuation1 for $3.9 billion
1. CNBC, March 9, 2017 2. Per Expedia Annual Report 2017 9
OTCQB: MKGI
The Monaker Business Model
10Monaker’s Dual Business Segments:
B2B & B2C NASDAQ: MKGI
B2B Segment:
Monaker Business Segments
Cloud-based Monaker Booking Engine (MBE) and its application Anticipated B2B vs. B2C
program interface (API) powers our B2B segment Revenue Breakdown
MBE API delivers global ALR inventory directly to B2B partner
existing booking system
MBE/APIs
Expected to represent 90%-95% of our future revenue 90-95%
First-to-market with a customizable instantly-bookable ALR —
provides travel companies quick entry to this fast growth space and
accommodate consumer demand
B2C Segment:
Maupintour - a luxury Tour Operator B2C: 5-
10%
NextTrip.com - a direct-to-consumer travel booking mobile friendly
websites.
ExtraordinaryVacations.com – High end vacation rental properties
NextTrip.BIZ A cost saving business travel solution that will allow us
to showcase ALR products.
*planned in fiscal Q4 11Multiple Sources Flow Through MBE to
B2B & B2C Distribution Points NASDAQ: MKGI
Distribution
Global Inventory
Monaker Websites
1.0M+ Properties
(0.8M+ in Process)
100+ Property
New Tech
Managers
API
Strategic Travel
Partnerships
Resort MONAKER
Residences BOOKING
ENGINE (MBE)
Luxury Homes B2B & B2C 15+ Partnerships
(i.e. Airlines, Tours companies,
Legacy Tech Consolidators, OTAs
API
100+ Large Travel Mark Travel/Trisept
Suppliers
• VAX: 90,000+ Agents
• FunJet Airlines
• White Label Customers
(e.g. UAL, Southwest,
Universal Studios)
Foundation for Significant Distribution via Consumer & Large, Established Travel Distribution Channels 12Our B2B Platform Strategy NASDAQ: MKGI
Design the Monaker Booking Engine (MBE) to meet
the needs of today’s Online Travel Agent (OTA)
Deliver Alternative Lodging in an “Industry Standard
Format,” so OTAs can essentially “plug & play”
While there is a significant market demand for a B2C Monaker Booking Engine (MBE)
offering like NextTrip.BIZ, B2C is dwarfed by the size provides OTAs multiple options:
of the B2B demand for customizable, instantly- • 1.0 million+ “request/accept”
bookable ALR solution properties, including 500,000+ resort
residences
MBE positions Monaker for rapid scale up via: • “Make-an-Offer” bidding solution
• Large OTAs partner adoption • Supplier inventory management
solution
• Airlines, car rental companies, and others looking to offer
• User fees
complete travel packages with ALR
• Set commission rates
• Set taxes
• Black out products & regions
13Our B2B Platform Rollout NASDAQ: MKGI
July 2018 – completed and released its Alternative
Lodging Booking Engine and API in an “Industry
Standard Format,” so OTAs can essentially “plug &
play”
September 2018 – completed integrations and
certifications to go LIVE with its first two major travel “Monaker’s MBE & Inventory:
distributors
ALR inventory includes apartments,
December 2018 – completed integrations and gone vacation homes, resort residences, villas,
LIVE with 5 contracted travel distributors ski chalets and castles
January 2019 – signed another nine distribution “Pricing is all inclusive” - No hidden fees
partners for the platform. Expects more distributors added at time of rental
to go live and increase in available inventory All properties are professionally managed
Monaker continues discussions with another 50 through property managers (most are
licensed & bonded).
companies for consideration and potential distributor
contacting All ALR properties supplied through the
API are instantly bookable
14Distributor Case Study:
Travel Compositor (Integrated Fall 2018) NASDAQ: MKGI
The Problem The Solution
Travel Compositor by the Numbers
Global consolidator of travel products & services
integrated into dozen’s of white-label platforms and
servicing over 50,000 travel agents
Any tourism or travel company on the platform can:
• Distribute dynamic packages around their own product to
others (B2B)
• Access and resell products on their website from a
variety of 3rd party sources without requiring contracts
with each supplier (B2C)
The Problem: No seamless, commissionable solution
for distribution of Instantly-Bookable Vacation
Rentals – simply not available on the market ... that
is, until Monaker
15Distributor Case Study:
Travel Compositor (Integrated Fall 2018) NASDAQ: MKGI
The Problem The Solution
Monaker Booking Engine (MBE)
integrated with Travel Compositor
platform via next-gen API
Accessibility to Monaker’s vast
inventory of vacations rental flows
down to Travel Compositor’s partner
companies and the hundreds of
User can easily
thousands of traveling end-users on
filter out hotels
the integrated platform to view only
Booking requests are aggregated and Monaker
vacation rentals
transacted by MBE in real-time
with just one
Rentals can be bundled with other click.
travel reservations (air, car, tours)
simultaneously
16Trisept Solutions - Monaker Partnership
NASDAQ: MKGI
Sister Companies
One of the 24 Contracted Distributors partners is Leading travel technology company: Serves airlines, hotels &
resorts, tour operators, travel agencies, tourist bureaus,
Trisept Solutions. The Trisept partnership initially theme parks and other suppliers through three platforms:
opens distribution channels to Trisept’s sister VAX VacationAccess: Award-winning leisure travel
marketplace for 90,000+ agents and 50+ leisure travel
company, $3 Billion Mark Travel, and potentially suppliers. >$1B annual bookings. $20M R&D recently
invested in upgrades in prep for MBE-powered ALR bookings.
other major travel distributors.
Xcelerator: new revolutionary agency management platform
driven by leading AI platform focused on travel
Synapse: provides travel back-office functions on a single
secure and seamless platform
Opportunities and upside following the Trisept integration:
• White label ALR solution - for airlines, travel agents and select • Largest N. American travel wholesaler: >$3 billion in sales
clients already accessing Trisept/Solutions platforms • Call centers, travel products and solutions for Travel Agents,
Tour Companies and other OTAs
• VAX System - services 90,000+ travel agents who generate >$1
• Owner of FunJet Vacations
billion in annual bookings
• Operates several tour companies, i.e., Exclusive Group
• VAX XML - links to 200+ travel companies Travel
• Operates United Airlines Vacations & Southwest Airlines
Vacations
17Trisept’s Rez Agent Interface w/ MBE Integration
(Training Manual Screenshots)
NASDAQ: MKGI
Search Select
Fred Jones4
fjones@gmail.com
Book ALR in Real-Time
18Monaker Group Key Stats NASDAQ: MKGI
Stock Price (1/18/18) Total Revenue * $0.4M
$2.70
NASDAQ
Cash (Oct, 2018) 3 $1.7M
52 Week Low-High $0.85-$5.72
Total Debt 2 $1.2M
Avg. Vol. (50-day) 27,304
Total Assets2 $6.6M
Shares Outstanding 9.1M
Total Liabilities 2 $1.7M
Free Float Shares (est.) 40%
BOD/Insider Holdings (est.) 45%
Institutional Holdings (est.) 15%
Market Cap $24.7M
Formation 1 2015
Fiscal Year End Feb. 28
* Trailing nine months ended November 30, 2018
1) Year company transitioned to focus on Alternative Lodging & Travel Technology
2) Per Nov 30, 2018 10Q SEC filing
3) Based on October 2, 2018 ROTH Capital Institutional Equity Unity Financing @ $2.10
19Board of Directors NASDAQ: MKGI
Don Monaco Bill Kerby Omar Jimenez Simon Orange Pat LaVecchia Doug Checkeris
Chairman Vice Chairman & CEO COO, CFO & Director Director Director Director
Over 28 years as an 20+ years of experience in the 33+ years of multi-industry Extensive experience in the 20+ years' experience in Senior Media and Advertising
International Information Travel & Media Industries and experience in building, investment industry, from investment banking & capital Executive with three decades
Technology and Business 10 years of experience in strengthening and leading corporate finance/M&As to markets: of hands-on management in
Management Consultant: financial industry: national and multinational, building global growth all facets of interactive media:
• Currently managing partner
public and private companies: companies:
• 18 years as a Partner and • Founder of TravelByUs, a of LaVecchia Group, a • 14 years with Mediacom
Senior Executive with NASDAQ company that • CFO at EpiCenter • In 2006, Orange co-founded merchant bank, and where he rose through the
Accenture. completed 21 acquisitions in Development, a real estate CorpAcq, and is responsible Managing Partner of ranks to become the CEO for
the travel sector. developer with combined for identifying and Sapphire Capital Mediacom North America.
• Commissioner on the projects of $6 billion. negotiating acquisitions, and Management.
Metropolitan Airports • Founder of Leisure Canada • President & CFO of overseeing development and • Mediacom provided and
Commission in Minneapolis - with 210 Agencies, American Leisure (became funding. • Previously Group Head of specialized in business-
St. Paul (Minnesota International tour operations Travel Leaders), focusing on Global Private Corporate building media solutions for
Governor Appointee). in Great Britain, France, leisure and business travel, • Following a “buy and build” Equity Placements, Credit some of the world's largest,
South Africa, and the South hospitality & hotels, call approach, CorpAcq Suisse First Boston well-known advertisers with
• Commissioner an VP of the
Pacific, Travel Magazines and centers and real estate maintains long-term close to $18 billion in global
Duluth Economic • Managing director/head of
a Cuban Hotel Development. development. Listed on investments in a diverse billings, 4,600 employees,
Development Authority Private Equity Placement
NASDAQ and London Stock portfolio of businesses and 116 offices in 89
(Duluth Mayor Appointee). • Owned and operated Master Group, Bear Stearns &
Exchanges, now private. countries.
Franchise for Thrifty Car • Involved in funding and Company.
Rental – B.C., Canada. • CFO & VP of Onyx Group, managing the growth of
• Directly led advisory on
conglomerate with 700+ numerous business ventures,
$15B in transactions in
employees and annual some acquired by NASDAQ
public offerings, strategic
revenues of $400 million. and London Stock Exchange
and financial private equity
• CPA, CGMA, and a CPCU listed companies.
transactions, mergers and
with an MBA. • Founding member of Cicero acquisitions
Consulting Group, based in
New York City. • Member of NYSE Amex
Listed Company Council 20OTCQB: MKGI
Additional Growth Drivers and Financial Modeling
21Monaker’s FY ’19 Launches NASDAQ: MKGI
Enhanced NextTrip.com
Travel Magazine Blog
EXVG Property Manager Portal (MBE)
First Two Travel Distributors go LIVE
Three more Travel Distributors go LIVE
10 or more Travel Distributors go LIVE
Trisept VAX Vacation Access (MBE) - 100k Travel Agents
MBE API Direct Connects with New & Legacy Tech Cos
22B2C ‘White-Label’ ALR Market Opportunity
Financial Model NASDAQ: MKGI
Financial model based upon the Leverage in the Model
pipeline of travel agents currently 100,000 Total Travel Agents x Bookings per Agent
Single
contracted to use Monaker’s booking Assumptions
Transaction
Within the currently contracted distribution pipeline and in
integration or certification phrase
engine for booking Alternative
Bookings per Travel
Lodging Rentals (ALRs). Agent
- 0.1x 0.5x 1.0x 2.5x 5.0x
Single transaction assumes $1,500 Rentals per Year 1 10K 50K 100K 250K 500K
average ALR booking (past operator
of Monaker platform averaged $1,890 Gross Bookings
($1,500 per $1,500 $15M $75M $150M $375M $750M
per ALR booking). transaction)
July 2018, Monaker released a new
ALR booking engine API to 12
Gross Revenues
established and contracted Travel (20% commission) $300 $3M $15M $30M $75M $150M
Distributors located in Europe, U.S. Gross Profit
and Middle East, including: (40% gross profit $120 $1.2M $6.0M $12M $30M $60M
margin)
• Major travel agencies
G&A Expense - $3.0M $3.0M $3.0M $3.0M $3.0M
• Hotel consolidators
• Tour provider Net Profit $120 ($1.8)M $3.0M $9.0M $27.0M $57.0M
• Major airline
EPS* - $(0.20) $0.33 $0.99 $2.97 $6.26
* Based on 9.1 million shares issued and outstanding.
23Billion Dollar B2B ‘White-Label’ ALR
Market Opportunity Financial Model NASDAQ: MKGI
24 Contracted Distribution Partners
Annual Lodging Bookings est. @$10+ billion Total Combined
Financial model based upon
contracted distributor partners with Single 1% pipeline 3% pipeline 5% pipeline 10% pipeline
$10 billion+ in combined lodging Transaction conversion conversion conversion conversion
booking annually. These numbers in
Avg Rental / week
addition to previous slide (different (Gross Booking)
$1,500 $100M $300M $500M $1,000M
revenue streams)
Gross Revenues
On-going discussions at various (20% commission)
$300 $20M $60M $100M $200M
stages with another 50 established
Gross Profit
Travel Companies regarding
(25% gross profit $75 $5M $15M $25M $50M
Monaker’s ALR Inventory, Booking margin)
Engine and API
G&A Expense - $3M $3M $3M $3M
At only a 3% pipeline conversion, far
lower than the industry average (of
15%+ and growing), Monaker EPS Net Profit $75 $2M $12M $22M $47M
would model to $1.32/share. With
the additional expected distributors EPS* - $0.22 $1.32 $2.42 $5.16
currently in discussion, this number
models significantly higher. * Based on 9.1 million shares issued and outstanding.
24Key Takeaways NASDAQ: MKGI
Industry-first: B2B platform for customizable,
instantly-bookable ALR for OTAs
B2C platforms for mainstream travel products &
services with instantly-bookable ALR – all on a
single site
Set to scale with ALR solutions in B2B & B2C
markets
Solid corporate structure, with travel, technology
and M&A-experienced management and invested
board of directors
Key travel brands, major partnerships and strong
industry tailwinds positions Monaker for
accelerated growth
25Contact Us NASDAQ: MKGI
Company Contact
Richard Marshall - Director of Corporate Development
Tel (954) 888-9779
Email: rmarshall@monakergroup.com
www.MonakerGroup.com
2690 Weston Rd, Suite #200
Weston, FL 33331
26Industry Terms & Definitions NASDAQ: MKGI
Booking Engine – A booking engine is a technology platform that allows consumers and travel agents to book flights, hotels,
holiday packages, insurance and other services online
API – In computer programming, an application programming interface (API) is a set of subroutine definitions, communication
protocols, and tools for building software. In general terms, it is a set of clearly defined methods of communication among various
components allowing different systems to communicate and interface
Vacation Rental – A vacation rental is the renting out of a furnished house, apartment, villa, condo, or castle on a temporary basis
to tourists as an alternative to a hotel. The term vacation rental is mainly used in the US and is also commonly referred to as an
Alternative Lodging
Alternative Lodging – An Alternative Lodging is the renting out of a furnished house, apartment, villa, condo, or castle on a
temporary basis to tourists as an alternative to a hotel. The term Alternative Lodging (AL or ALR) is also commonly referred to as a
vacation rental
Consolidator – A company which groups together orders from different companies into one offering i.e. groups together bookings
made by various travel agents or agencies so as to get cheaper group fares on normal scheduled flights
Aggregator – An aggregator is a website that searches for travel products and deals across multiple websites and shows you the
results in one place. For example, if you wanted to find a cheap flight from New York City to London, you could sit down and check
American Airlines and then British Airways and then Iceland Air and then... or you could just head to an aggregator website, which
will check hundreds of airlines (or travel products) at once and show you which one is the cheapest.
OTA – OTA stands for: Online Travel Agency. OTAs are online companies whose websites allow consumers to book various travel
related services directly via Internet. They are 3rd party agents reselling trips, hotels, cars, flights, vacation packages etc. provided
/ organized by others.
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