Points InternationalMay 21 2020

Disclaimers

Cautionary Note Regarding Forward-Looking Information This presentation contains forward-looking information. Such forward-looking information or statements (“FLS”) are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such FLS may be identified by words such as “proposed”, “expects”, “intends”, “may”, “will”, and similar expressions. FLS contained or referred to in this presentation includes, but is not limited to, the future or expected performance of FAX Capital Corp. (“FAX” or “our”, “we” or “us”) and its investment in Points International Ltd. (“Points” or the “Company”); FAX’s continuing investment thesis in respect of Points as well as FAX’s continuing views on Points’ operations and the prospects of its associated industry; FAX’s investment approach, objective and strategies; the timing of any future investment or divestiture of the securities of Points and the structuring of any future investment; its plans to manage its investment in Points; and FAX’s financial performance. FLS involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. FAX believes that the expectations reflected in the FLS are reasonable but no assurance can be given that these expectations will prove to be correct. Some of the risks and other factors which could cause results to differ materially from those expressed in FLS contained in this presentation include, but are not limited to: the continued impact of COVID-19 and falling or volatile oil prices on targeted investments, including Points, the economy and markets generally, as well as the identified risk factors included in FAX’s public disclosure, including the annual information form dated March 26, 2020. The FLS in this presentation reflect the current expectations, assumptions, judgements and/or beliefs of the Company based on information currently available to the Company, and are subject to change without notice.Any FLS speaks only as of the date on which it is made and, except as may be required by applicable securities laws, FAX disclaims any intent or obligation to update any FLS, whether as a result of new information, future events or results or otherwise. The FLS contained in this presentation is expressly qualified by this cautionary statement. For more information on FAX, please review FAX's continuous disclosure filings that are available at www.sedar.com.

Certain Other MattersThird party trademarks presented herein are trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

http://www.sedar.com/

Presentation NotesAll values in U.S. dollars unless otherwise stated.

References to “Points” herein refers to Points International Ltd. Non-uppercase ‘points’ refers to points/miles offered by a loyalty program.

Unless otherwise stated, EBITDA is defined as Company reported Adjusted EBITDA less share-based compensation and lease payments.

Reported financials for Q2 2019 include $6 million of prior years’ tax rebate that was received in Q1 2020. For comparative purposes, we have excluded $6 million from gross profit, EBITDA, and EBIT.

FCF is Free Cash Flow before working capital, unless otherwise stated. Free Cash Flow is defined as cash flow from operations plus changes from non-cash working capital less capital expenditures (including on intangibles), lease expenses, and cash used to fund RSU purchases (and taxes associated with that).

Enterprise Value is defined as the market capitalization plus interest-bearing debt less cash and working capital.

Net Debt is defined as interest-bearing debt less working capital and cash.

4Table of Contents

Sections Slide #

Executive Summary & Investment Thesis 5

The Loyalty Industry 11

Overview of Points 20

Business Analysis 28

Valuation 40

Key Risks & Mitigants 45

Appendices 47

Management / Board Bios

Management Compensation / Alignment

Additional Materials

5

Executive Summary & Investment Thesis

6Executive Summary

• Points International Ltd. (“Points” or the “Company”), listed on the Nasdaq (PCOM) and TSX (PTS), is a leading e-commerce and technology solutions provider catering to loyalty programs globally. The Company provides a unique offering of products and services that allows loyalty programs to sell more loyalty points to their customers. The Company currently has commercial agreements with 60 leading loyalty brands globally. Points is headquartered at 111 Richmond St W, Toronto, Ontario and has 269 employees.

• Points is a great business that has been temporarily impacted by travel disruptions as a result of the Covid-19 pandemic:

‒ Key provider of ancillary revenue to airline and hotel loyalty programs;

‒ Founder-led management team that has grown business to $60 MM of gross margin and $15 MM of EBITDA;

‒ Capital light business with high levels of free cash flow generation;

‒ Well capitalized with $105 MM of cash, $40 MM of debt and variable cost structure to withstand prolonged travel downturn;

‒ Will be a leading beneficiary of eventual recovery in air travel

• FAX is currently the fourth largest shareholder with an ownership interest of 6.4%. Our cost base of our investment is $14.17 per share, as of May 14, 2020 compared to the current share price of $7.41 per share, as of May 20, 2020.

• We believe the current share price of Points presents an opportunity to earn outsized returns.

‒ Great business trading at a very low valuation of 6x 2019 EBITDA; generated $15 MM of EBITDA last year and expect it will return to this level of profitability as travel recovers; balance sheet and cost structure mitigate risk of capital impairment.

‒ Based on current share price, expected IRR of 27.8% and a 4.0x Multiple of Capital over a five year investment horizon on our Base Case.

7Corporate Overview

CAPITALIZATION TABLE (US$ ‘000) SHARE PRICE (LAST 5 YEARS)

MANAGEMENT / NOTEWORTHY OWNERSHIP FINANCIALS / TRADING MULTIPLES

Source: Company filings, Bloomberg, Capital IQ, FAX estimates(1) We use gross profit as a proxy for net revenue. Refer to “How does Points generate revenue?” for rationale.

0.00

4.00

8.00

12.00

16.00

20.00

2015 2016 2017 2018 2019 2020

Share Outstanding 13.2Restricted Stock Units 0.6Options (Treasury Method) 0.0Shares Outstanding (F/D) 13.8Share Price 7.41

Market Capitalization 102.1Add: LT Debt 40.0Add: Working Capital 53.0Less: Cash (104.5)

Enterprise Value 90.6

Shareholder Shares % Own.Pembroke 1.2 8.9%Rice Hall James & Associates 0.9 6.9%Renaissance Technologies 0.9 6.7%FAX Capital 0.8 6.4%FMR 0.7 5.3%

Total Shares Outstanding 4.5 34.2%

Management Position Shares % Own.Rob MacLean CEO 0.3 2.1%Christopher Barnard President 0.2 1.7%John Thompson Board 0.2 1.4%

Total Shares Outstanding 0.7 5.2%

Financials 2019A 2020E 2021E 2022E 2023EGross Profit 59.4 33.4 46.5 55.8 64.2Growth 10% -44% 39% 20% 15%

EBITDA 15.0 -1.7 6.0 10.9 14.7Margin (% of GP)(1) 25% -5% 13% 20% 23%

FCF 9.1 -2.3 2.8 6.4 9.2Conversion (% of EBITDA) 60% nmf 46% 59% 62%

Net Cash Position 14.5 10.8 12.7 11.6 10.8

Valuation 2019A 2020E 2021E 2022E 2023EEV / Gross Profit 1.5x 2.6x 1.8x 1.5x 1.2xEV / EBITDA 6.0x nmf 14.1x 7.5x 5.3xFCF Yield 8.9% nmf 2.9% 6.8% 10.4%

8

Investment Highlight Commentary

Well-run growth business

• Strong founder-led management team that has grown business to $15 MM in EBITDA over the last 20 years.

• Leadership team has experience in successfully navigating multiple cycles and travel-related crises, such as the Global Financial Crisis, 9/11 and SARS, and multiple airline bankruptcies.

• Delivering on operational targets with recent customer additions like Air Canada.

Critical provider of ancillary revenue with strong value proposition and high switching costs

• Points is one of the few vendors to the airline and hotel industry that is providing ancillary revenue to its customers in this environment.

• Long operating history with few competitors, other than in-house IT departments of their customers. Given current cost constraints amongst airlines and competing priorities, it is unlikely that airlines seek an in-house solution.

• Moat in the business comes from high switching costs from real-time integration into legacy systems and network effect created from working with 60 loyalty programs.

Durable business model and conservative balance sheet

• Capital-light business with high levels of free cash flow generation.• Points is an outperformer in the travel sector with transaction volumes running at 25% of 2019 levels for

the month in April compared to airlines and hotels running at 0-15% of 2019 levels. • Operational flexibility provided through variable cost structure which consists primarily of labour and

customer contracts structured to generate positive gross margin.• Well-capitalized with $105 MM in cash as of Q1 2020.

Leading beneficiary of resumption of long term positive secular trend

• While there is uncertainty regarding the path of the recovery, air travel is expected to recover and resume historical long term positive growth trends driven by growth in the overall global economy.

• Working capital is a source of cash flow as business ramps back up.• Points activity likely to lead because of low load factors in planes, high ticket costs and consumer’s

being constrained on cash purchases.

Investment Thesis

> Points is a well-run growth business that is a key provider of ancillary revenue to airlines and hotels. Points has the balance sheet and operational flexibility to withstand a prolonged travel downturn and be a leading beneficiary of the eventual resumption in travel activity.

9The FAX View

> FAX’s non-consensus view is driven by Points: i) being a great growth business, ii) resilient within travel downturn, and iii) having leverage to a recovery.

> This market underappreciation will drive significant share price outperformance.

Great growth business

Resilience to downturn

Leverage to recovery

• The market underappreciates the quality of Points’ business model and its long-term growth potential:

‒ Strong organic growth and return on capital;

‒ Multiple sources of growth to exceed broader industry; and

‒ Deep moat: No direct competition, network effect insulates business, long term contracts with high retention rate.

• Points shares have traded down with broader airline sector but:

‒ Not a high fixed cost business;

‒ Low risk of dilutive equity financing or restructuring; and

‒ Well-capitalized balance sheet provides long runway.

• The market views the viability of Points business model to be at risk but:

‒ Air travel recovery will eventually happen;

‒ Value proposition to airlines and customers strengthened during this crisis;

‒ Working capital is a source of capital as volumes grow; and

‒ Volume growth drives margin expansion through operating leverage.

10

Attributes Commentary

Management+ Great long term track record by co-founders and well recognized in the industry+ Very thoughtful in developing the business and approach to winning business+ Strong alignment through meaningful share ownership and equity incentive compensation

Runway for Growth

+ Significant opportunity to cross-sell products, acquire customers in Middle East and Asia, and enter new loyalty verticals (i.e. financial services, retail)

+ Long term positive secular tailwinds for airline industry and loyalty programs- COVID will temporarily stunt growth- No platform opportunity; But some small tuck-in acquisitions available

Moat

+ COVID has strengthened Points’ value proposition to its loyalty program partners+ Long-term track record of delivering value to customers+ In-sourcing a risk but unlikely given high switching costs (integrated into customers’ systems) and low

cost/guaranteed revenue to customers make it a low priority+ Long term contracts (3-5 years) and high retention rate (95%) provides short term visibility+ Network effect of 60 loyalty program partners insulates business+ Limited third party competitors

Profitability+ We anticipate to see operating leverage in 2021 as the travel industry recovers+ Significant cash flow generated as business ramps up because working capital is a source of cash- 2020 profitability negatively impacted by COVID

Capital Intensity+ Not capital intensive; working capital source of cash in travel recovery+ Very high RoCE of 27%+ Well-capitalized balance sheet

FAX Capital Scorecard

> Points exhibits all the attributes of a great business.

11

The Loyalty Industry

12Air Travel

• Strong growth historically – air travel doubles every 15 years

• Only experienced declines three times in the last 30 years (1991, 2001, and 2009), and no decline in any year in the 30 yearsprior to that. In each case, declines were temporary with a swift recovery in the next year. Until COVID….

> Long term secular trend in air travel underpins continued growth for Points (pre-COVID)….

Air traffic expected to double in the next 15

years

Source: International Civil Aviation Organization, Airbus Global Market Forecast (GMF) 2019 * RPK: Revenue Passenger Kilometer

13Air Travel – COVID Impact

> COVID has negatively impacted global air travel but recovery is expected and growth will resume.

> Global air travel volumes expected to revert to 2019 levels in 2022 – 2023.

Source: Source: IATA/Tourism Economics, Air Passenger Forecasts, as of May 13, 2020. * RPK: Revenue Passenger Kilometer

• This travel crisis is the worst to impact the airline industry in the last fifty years

14

Region RPKs (2020 Decline)

Asia-Pacific -50%

North America -36%

Europe -55%

Middle East -51%

Africa -51%

Latin America -49%

• COVID is a material negative impact to the airline industry but companies in the airline value chain that can withstand this downturn will come out stronger and benefit from the resumption of the secular growth trend in air travel.

Air Travel – COVID Impact (continued)

> U.S. air travel expected to outperform other markets (Points primary market).> Domestic travel to lead international/long-haul travel.

Source: Source: IATA Economics,, as of April 14, 2020.

15What is a Loyalty Program?

• Airlines generate revenue from loyalty programs through the sale of points to partners, such as a bank, and generate an operating profit based on the difference of the cost of that point and the sale price of the point.

• Value proposition to airlines is: i) generate incremental profits through sale of points to loyalty program partners and ii) revenue management tool to optimize capacity on planes (high fixed cost).

• Value proposition to a loyalty program partner is to create an incentive to reward the loyalty program partners’ customers. The example below is for CIBC Aerogold card holders:

> Airline loyalty programs are designed to encourage airline customers enrolled in the program to accumulate points (also called miles) which may then be redeemed for air travel or other rewards.

•Loyalty progam partners buy miles from loyalty program to reward their own customers

Air miles sales

•Loyalty program makes money on every point, as the cost of redeeming a point is less than the value it is sold for.

More money for points

•Points are typically redeemed after 24 months, meaning airline generates revenues in advance.

Higher revenues

Canadian Example

How does Points fit in?Points allows airlines to sell more points and generate incremental profits

16Growth in Loyalty Programs

> Airline loyalty programs have grown in popularity with consumers and have become extremely important assets to airlines.

> Most airlines expect loyalty revenues to represent a greater share of total revenue. This is a long-term tailwind for growth of Points.

Total Growth (2017-2019)1

7.2%

12.5%14.9%

5.4%

9.8% 10.8%8.6%

32.4%

7.7%11.5%

21.9%

6.6%

(2)

1. Loyalty revenue disclosure is limited prior to 2017.2. Air Canada performance based on 2018 growth. Air Canada acquired Aeroplan in January 2019 and it expects to re-launch the program in late 2020. Of

note, Points recently signed Aeroplan as a partner.

Select commentary on future growth (prior to COVID-19):- Delta expects loyalty revenue to double to $7 billion annually by 2023 based on the renewal of its loyalty program

(SkyMiles) relationship with American Express- Qantas expects its loyalty program's earnings to double by 2022

COVID is expected to push out these targets but the trend will continue as travel recovers.

17Under-Developed Market Outside of North America

> Loyalty Programs are under-penetrated in airlines outside of North America. As these markets become more mature, there will be new partnership opportunities for Points.

(1) FAX estimates data represents 70% market share of global airlines industry.(2) Source: Company annual reports.(3) Loyalty penetration measured as loyalty liability as percentage of total revenue.

North America Latin America Europe Asia & Middle East Total

Available Seat KM (Billion) 2,096 399 1,375 3,021 6,891

Total Revenue $212 billion $35 billion $161 billion $298 billion $706 billion

Market Growth(2014-2019 CAGR)

3.5% 9.1% 5.1% 7.3% 5.6%

Loyalty Liability (Billion) $29 billion $3 billion $6 billion $11 billion $49 billion

Loyalty Penetration3 14% 9% 4% 4% 7%

18

3,889

6,650

4,568

2,948

1,239 1,0711,385 1,216

588 642213 292

• In 2019, loyalty revenue represents ~10% of airline revenue and more than 20% of operating profits1

• During periods of low demand, such as today, airlines lean on loyalty programs to optimize load factors and profitability

Importance of Loyalty Programs for Airlines

> Loyalty Programs are a material contributor to the operating profits for the North American airlines.

> These programs are even more important when travel demand is low.

Loyalty Contribution to Overall Airline Profitability (US$ MM) – 2019

Operating Profit

Loyalty Profit

1. Loyalty profitability is not generally disclosed and estimates vary from 20-50% operating margins. We have assumed ~25% operating margins, which is based on Qantas Airlines disclosure. Qantas is the only airline that segments loyalty revenue and profits.

19Recent Commentary Supportive of Loyalty Programs

• While travel is currently at a standstill, credit card issuers continue to pre-purchase points/miles from their airline partnershighlighting the value of loyalty programs even in this environment.

‒ Commentary on recent airline quarterly calls state that credit card partners remain active bulk purchasers of points/miles.

‒ Recently, Hilton pre-sold $1 billion worth of loyalty points to American Express, JetBlue sold $150 million of loyalty points toBarclays, and Club Premier (AeroMexico loyalty program) acquired $50 mm in seats and provided $50 MM loan.

• Loyalty assets are critical to airlines. This is demonstrated through:

‒ As airlines seek efficient financing through offering unencumbered collateral as security, airlines have yet to offer their loyalty assets as security but may do so as a last resort. American and United used loyalty programs to secure DIP financing post 9/11.

• American Airlines loyalty program has an assessed value of $18 - $30 billion, compared to a current enterprise value of ~$35 billion, based on comments from American’s CFO during a Wolfe Research transports conference on May 19 2020.

‒ There have been many airline bankruptcies over the last twenty years, including large mainline carriers such as American Airlines in 2010, Delta in 2006 and United in 2003. Loyalty assets are ring-fenced to protect against creditors in the bankruptcy process, as demonstrated in past airline bankruptcies and in the current bankruptcy processes for Avianca and Virgin Australia.

• Loyalty programs survive bankruptcy and restructuring programs, often unchanged.

• A restructuring or bankruptcy does not result in a material change in a loyalty program. However, a liquidation of an airline, may result in a closure of a program if it is not sold. We have not seen a liquidation of mainline carriers – liquidations have generally been smaller airlines, discount carriers or regional players.

• Airlines/Hotels have been actively selling points/miles. Points has been an enabler for this activity. For a list of current active promotions driven by Points, please click on below:

‒ Hilton Honors (until May 27) | Choice Hotels (until June 12) | Intercontinental (until June 15) | Marriott Bonvoy (until June 30)

> Recent activities in the travel industry support the importance and long termviability of loyalty programs.

https://storefront.points.com/hhonors.iframe/en-US/buyhttps://storefront.points.com/choice-privileges/en-US/buy?product=BUYhttps://storefront.points.com/IHG-rewards-club/en-US/buyhttps://storefront.points.com/marriott/en-US/buy

20

Overview of Points

21Points Segment Overview

> Points’ principal business is in sales of loyalty points such as buying points to complete a transaction, gifting of points, and transfer of points to other members of the same loyalty program.

Loyalty Currency Retailing Platform Partners Points Travel

$372 MM$19 MM

$391 MM

$31 MM$19 MM

$50 MM3

$36 MM103.6%

$3 MM$5 MM

$8 MM

$2 MM$5 MM

$7 MM

$3 MM8.7%

$0 MM$2.5 MM

$2.5 MM

$0 MM$2.5 MM

$2.5 MM

($4.3 MM)-12.3%

FY 2019

Principal Revenue1

Agency Revenue1

Total Revenue

Principal GP1

Agency GP1

Total Gross Profit

Contribution Margin2

% of Total

Note: Financials as of FY 191. Described further on next page.2. Contribution margin is equal to gross profit less direct operating expenses (excludes corporate overhead).3. Gross profit excludes positive impact of $6 MM tax rebate related to prior years.

22How does Points Generate Revenue?

• Principal revenue represents loyalty partnerships where Points directly sells loyalty currency direct to program members at a retail rate while purchasing miles at wholesale rate from the program partner. In these agreements, Points will typically provide revenue guarantees. In this case, Points must book the gross transaction value as revenue and the wholesale cost as cost of goods sold.

• Agency revenue represents loyalty partnerships where Points takes a less active role in retailing of loyalty currency and does not provide revenue guarantees. In this case, Points only books the net margin on the transaction.

> Points books revenue as a principal or as an agent depending on the nature of the agreement with loyalty program.

> Gross profit is akin to net revenue and is a more indicative measure for the economics that Points earns.

Note: Financials as of FY 19

Revenue Mix Gross Profit Mix

Agency – 41%

Principal – 59%

Agency – 7%

Principal – 93%

23Loyalty Currency Retailing

• The principal business segment is called Loyalty Currency Retailing (“LCR’), which accounts for 97% and 83% of 2019 revenue and gross margin, respectively

• Points utilizes an open, Application Program Interface (“API”) transaction processing platform that includes direct, real time, integrations into loyalty program databases called Loyalty Commerce Platform (“LCP”)

‒ This platform has high switching costs because it is deeply integrated into legacy systems, is highly automated, and centralized; Validated through numerous customer conversations

‒ LCP is integrated with over 60 loyalty programs which facilitates the seamless exchange of points across different programs, which otherwise would not be possible

• Points’ platform increases loyalty program profitability and increases its engagement with members by enabling them to unlock the value of unredeemed points

• Points’ also provides customers a minimum revenue guarantee

‒ Typically calculated with an approx. 50%+ margin of safety

• Points does not manage its own loyalty program nor does it offer core technology that operates a loyalty program, such as Amadeus (airlines IT provider)

> LCR helps loyalty program generate additional revenue & increase engagement with the members of the loyalty programs. Points adds value through real-time integration and leveraging its long history in optimizing loyalty programs.

Illustrative LCR Transaction

24Loyalty Currency Retailing (Cont’d)

• Points’ transaction volumes have steadily increased due to underlying growth in air travel and loyalty programs, addition of new loyalty programs, and improved data analytics

• Company has stopped disclosing points transacted as of 2016 due to information sensitivities; our analysis suggests that the company has continued to grow transaction volumes at a high-single digit growth rate

• Gross margin per 1,000 points has remained fairly constant from 2008 to 2016; our analysis indicates that gross profit per point has remained stable since then

• Every incremental point sold going forward comes with virtually no associated cost, allowing gross profit to fall directly to earnings and cash flow.

> Points’ transaction volumes have experienced strong growth of 13% CAGR between 2008 to 2016.1

> Gross margin per point has been stable at ~$2 per 1,000 points, which equates to 10% gross margins.

(1) Last period in which Points reported points transacted.

-

5,000

10,000

15,000

20,000

25,000

30,000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Points Transaction Volumes

0.00

0.50

1.00

1.50

2.00

2.50

2008 2009 2010 2011 2012 2013 2014 2015 2016

Gross Profit Per 1,000 Points

25

• Earn and redeem points via third-party & co-branded channels and exchange points between loyalty programs

• Leverage LCP platform to seamlessly integrate with loyalty programs

• Lyft Partnership Example: Points provided seamless integration with the Lyft app, so users could earn Hilton points for rides

• Notable partnerships include Chase, Citi, HSBC/Air Miles Middle East, American Airlines, Delta Airlines

• Provide white label solution to loyalty programs that enables members to earn or redeem for hotel stays and car rentals

• Points’ provides hotel and car rental inventory at wholesale prices from Priceline, Expedia, etc.

• Points customers include Amtrak, ANA, Air Miles, Etihad, Singapore Airlines and Hawaiian Airlines

• Currently not profitable

Platform Partners & Points Travel

> Platform Partners and Points Travel account for 3% of revenue and 16% of gross profit; these are complementary businesses that can be cross-sold with LCR.

Illustrative Hotel Transaction

Illustrative Retail Partner Transaction

26Customer Mix

> Points’ customer base is predominantly airline loyalty programs mainly in the US.> Customer base is adequately diversified by gross profit.

76%

24%

Customer Concentration(% of gross profit)

Top 10 Partners Other

90%

5%5%

Geographic Exposure(% of gross profit)

US Europe Other

75%

20%

5%

Industry Vertical(% of gross profit)

Airlines Hospitality Financial Services

• Top 3 customers account for 69% of revenue but, on a gross profit basis, only two customers are above 10% and none are above 20%.

• As the Company grows we expect further diversification.

Source: Management guidance and FAX estimates.

27Major Customer Analysis

> Points is exposed primarily to large national carriers which have significant liquidity and are expected to be supported by their respective governments.

> Strong customer relationships with a 95% retention rate on contract renewal.> Top 10 customers includes hotel programs.

Key Customers

% of Gross Profit1 Commentary

United MileagePlus >10%

• MileagePlus is the third largest airline loyalty program in the world; relationship established through acquisition of Crew Marketing in 2014.

• Renewal expected on maturity in 2023.• Most at risk of major Points customers with unsecured notes trading at 50 cents on the dollar;

Mitigant: Large systematic airline with access to U.S. government support. (See Risk section)• $20 billion of liquidity as of 3/31/20; Current cash burn of $40 MM per day assuming no revenue.

Southwest RapidRewards >10%

• RapidReward is a highly successful loyalty program with $3 billion in loyalty currency outstanding.• Points customer since 2012 and has added additional services over time.• Recently renewed for an additional 4-5 year term in 2020.• Mitigant: Large systematic airline with access to U.S. government support; Only Top 4 US Airline

to be investment grade rated.• $17 billion of liquidity as of 4/24/20; Cash burn of $30 MM per day assuming no revenue.

Emirates SkyRewards ~5%

• Emirates SkyRewards partnered with Points in 2018 replacing an in-house solution.• Program is exceeding expectation by 4x and continuing to grow at rapid rate.• State-owned and supported by the United Arab Emirates.

Air CanadaAeroplan2

>10% (future)

• Air Canada acquired its loyalty program, Aeroplan, from AIMIA in 2019.• Access to Canadian government support programs.• C$8 billion excess liquidity as of 3/31/20; Daily burn rate of C$20 million.

(1) FAX estimates.(2) Points signed Aeroplan in 2020.

28

Business Analysis

29The FAX View

> FAX’s non-consensus view is driven by Points: i) being a great growth business, ii) resilient within travel downturn, and iii) having leverage to a recovery.

> This market underappreciation will drive significant share price outperformance.

Great growth business

Resilience to downturn

Leverage to recovery

• The market underappreciates the quality of Points’ business model and its long-term growth potential:

‒ Strong organic growth and return on capital;

‒ Multiple sources of growth to exceed broader industry; and

‒ Deep moat: No direct competition, network effect insulates business, long term contracts with high retention rate.

• Points shares have traded down with broader airline sector but:

‒ Not a high fixed cost business;

‒ Low risk of dilutive equity financing or restructuring; and

‒ Well-capitalized balance sheet provides long runway.

• The market views the viability of Points business model to be at risk but:

‒ Air travel recovery will eventually happen;

‒ Value proposition to airlines and customers strengthened during this crisis;

‒ Working capital is a source of capital as volumes grow; and

‒ Volume growth drives margin expansion through operating leverage.

30

10%12%

16%

5%8%

20%

37%

11%16%

27%

Great Growth Business – Attractive Growth & Returns

Revenue Growth (2014-2019)1

Pre-Tax Return on Capital Employed (2019)2

Source: Company filings, CapitalIQ, Bloomberg.1. Points growth is calculated using gross profit. Refer to “How does Points generate revenue?” for rationale.2. Return on Capital Employed (ROCE) is based on 2019 period. ROCE = EBIT / (Total Equity + Interest-Bearing Debt). Based on FY 2019 financials.3. Expedia’s historical growth rate benefits from acquisition of HomeAway, Orbitz, and other acquisitions. Excluding M&A, we estimate organic growth of ~10%.

> Points has demonstrated strong organic growth and return on capital employed.> The company compares favourably to best-in-class travel peer group but trades

at a discount.

(3)

31Great Growth Business – Runway for Growth

> Points has multiple sources of growth driving our expectation that it will outperform the industry.

Sources of Growth Commentary

Drive growth in existing services

• Points has experienced organic growth1 of 5-10% from increased transaction activity in existing loyalty programs

• Enhance existing product offering by leveraging data across overall platform

Sign new partnerships

• The Company has been successful adding new loyalty partners to its platform; this has added up to 5% to historical revenue growth

• Recently signed Aeroplan which we believe can become 10% of net revenue • Significant addressable market in the Middle East and Asia that can be tapped through recent

openings of Dubai and Singapore sales offices. These markets are less developed and are growing at a faster rate than the U.S. and we expect to be a meaningful contributor to growth in the future. Examples of potential new partnerships include: Cathay Pacific and Qantas.

Up/Cross-sell existing partnerships

• Account teams are focused on cross-selling services to existing customers or adding net new lines of business.

• Opportunity matrix with current partners is

32

40% 39%

16% 20%25%

Great Growth Business – Attractive Margins

> Reported gross margins distort profitability of business. Net revenue is a better measure of economics earned by Points.

> Effective EBITDA margin has expanded, benefitting from operating leverage and is comparable to its travel peers.

Net Revenue & Effective EBITDA Margins

Margin Comparison to Travel Peer Group

• Points recognizes revenue as principal revenue (where the wholesale cost of points/miles is recorded as cost of goods sold) and other partner revenue (no cost of goods sold) depending on contract structure.

• In either case, Points generates a pre-determined gross margin (or net revenue) per point/mile sold.

• Reported gross profit is a better reflection of net revenue. On this basis, EBITDA margin (% of gross revenue) expands from 3.7% to 25% (% of net revenue).

• Other travel peers book net revenue instead of gross revenie.15%

20%

25%

30%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Effective EBITDA Margin (% of Net Revenue)

Source: Company filings, CapitalIQ, Bloomberg.

33Great Growth Business – Excellent Capital Allocation Track Record

> Aside from being good operators, management has also demonstrated a good track record regarding capital allocation having reduced the share count over the last five years and executed accretive M&A

Share Repurchases

• Points has demonstrated a good track record of repurchasing and cancelling shares.

• Over the last five years, they have reduced share count from 15.6 MM to 13.2 MM at prices between $10-$15 per share (valuation was ~5% FCF yield).

• They have steadily increased buyback activity; over the last five years, they have utilized ~85% of FCF.

M&A

• While M&A has consumed a small portion of free cash flow, Points has demonstrated a disciplined approach to M&A that has created value for shareholders.

• In 2014, they acquired Crew Marketing for $17.5 million.

‒ This acquisition established a relationship with United Airlines (the second largest loyalty program).

‒ The acquisition was completed at ~5x EBIT.

• They also acquired Accruity for $2 MM that same year.

‒ Accruity operated PointsHound, a loyalty-based hotel booking service; Points used this to establish Points Travel.

‒ Today, Points Travel is generating $2 MM of gross profit and is on the cusp of profitability.

‒ Points Travel also established partnerships with significant Asian airlines creating cross-selling opportunities.

‒ While Points Travel is generating negative EBITDA today, it has led to new customer wins.

S/O 15,306 14,879 14,561 14,112 13,242

Buyback% FCF 69% 49% 45% 142% 113%

(4,000)(2,000)

-2,0004,0006,0008,000

10,00012,000

2015 2016 2017 2018 2019

Buyback Excess Cash

34Resilient Business – History of Growth in a Challenging Industry

> Points has grown consistently over its history despite multiple airline bankruptcies.

• The airline industry has seen multiple airline bankruptcies and travel crises such as 9/11, SARS and the Global Financial Crisis. Points uses industry uncertainty as a catalyst to solve partner problems, demonstrate their value-add and strengthen their position in the ecosystem.

‒ For example, Points developed its Loyalty Currency Retailing business in the wake of the 9/11 crisis.

• Points continues to demonstrate this during the current crisis with new customer additions including Air Canada’s Aeroplan and Quidco (largest cash back consumer site in the UK).

• Points is one of the few sources of non-flight revenue for airlines and provides a means to engage with customers at a time when people are not flying.

• In addition, Points is able to provide valuable information to airlines through its promotional activity.

‒ Recently, Points executed promotional campaigns for both Intercontinental Hotel Group and Aeroplan, which resulted in the highest ever sales day for Points in its twenty year history.

35Resilient Business – Current Activity and Cost Structure

> Modest transaction activity levels allow Points to generate revenue despite current travel restrictions.

> Significant portion of cost structure is variable in the medium term and can be managed according to pace of recovery in activity.

Employment70%

MT&E9%

Prof. Fees7%

Tech5%

Office6%

Other3%

• ~14% of cost structure is related to technology, leases, and other expenses that are fixed in the long-term

• ~16% of the cost structure is related to marketing, travel, entertainment, and professional fees which can be reduced in the short-term

• The remainder of the cost structure is related to employment expenses

‒ Management has decided to pause new hires and maintain its existing employee base to pursue an active pipeline of opportunities

‒ In the medium-term, we believe headcount can be managed according to transaction volumes and activity

Current Activity Levels

Flexible Cost Structure

• Points is outperforming the travel sector with transaction volumes in April at 25% of 2019 levels compared to airlines and hotels running at 0-15%

• Loyalty programs will likely utilize Points to generate incremental revenue and demand – recent Aeroplan promotion generated the highest level of traffic in the Company’s history

• Company is focused on launching new partnerships that can generate in-year revenue

-18%

-89%

-62%

3%

-75%

-49%

-100%-75%-50%-25%

0%25%

Q1A Q2E Q3E

US Airlines PointsSource: Bloomberg consensus, Ponts based on FAX forecast.

36

Monthly COVID-19 Forecast (US$ MM) Low High

Gross Margin1 $1.0 $3.0Less: operating expenses2 ($2.9) ($2.9)

Adjusted EBITDA ($1.9) $0.1

Add: Government assistance programs2 $0.7 $0.7

Adjusted EBITDA, net of government assistance ($1.2) $0.8

Less: additions to PP&E3 $0.0 $0.0Less: additions to intangible assets ($0.1) ($0.1)Less: lease payments ($0.1) ($0.1)Add: finance income, net of expenses4 $0.0 $0.0Add: cash tax refund5 $0.0 $0.0

Est. Free Cash Flow (before working capital) ($1.4) $0.6

1. Monthly range based on 2019 reported results excluding CRA rebate and assuming

25% - 50% run-rate.

2. Based on management guidance on May 13 conference call, excludes share-based compensation.

Costs are primarily in Canadian dollars and further weakening will result in lower expenses in USD.

3. Assume zero based on management guidance of ceasing or limiting any capital expenditures.

4. Assume interest expense on drawn credit facility offsets interest income on cash balances.

5. No taxes expected to be paid. Cash tax refund expected in Q121 so not included in this analysis.

Resilient Business – Ability to Withstand Prolonged Downturn

• As shown on the right, based on April month transaction volumes of 25% of 2019 levels, we estimate Points is burning $1 to 1.4 MM per month.

• Points has net current assets of $53 million as of March 31, 2020 which provides significant liquidity to fund any cash burn prior to any workforce reduction.

• ~80% of this operating expense is labour and can be reduced to manage cash burn should transaction volumes not recover.

• The Company has not effected any workforce reduction to preserve optionality for a rebound in travel volumes.

• The Company has said that they are free cash flow break-even at transaction volumes at 50% of 2019 levels, without considering the benefit of working capital.

> Based on current burn rate and cash on balance sheet, Points has ample liquidity to weather prolonged downturn without restructuring or additional capital.

> At 50% of 2019 transaction volumes, the company will be cash flow break-even.

37

(40.0)

(30.0)

(20.0)

(10.0)

-

10.0

20.0

30.0

2019A 2020E 2021E 2022E 2023E 2024E 2025E

Free Cash Flow Outlook

FCF Working Capital

Leverage to Recovery – Cash from Working Capital

• As transaction volume declines, Points payables to loyalty program partners decreases and results in cash requirement for 2020 which is aptly funded through cash on balance sheet.

• Our forecast estimates that, as travel recovers, working capital will be a source of cash generating $28 MM of cumulative cash flow under our Base Case assumptions over the next five years.

• Points typically receives cash from loyalty customers in 2-3 days (credit cards) and pays the loyalty programs (suppliers) generally 30 days after the end of the month.

> Air travel will recover in time, which will drive substantial free cash flow generation.

> Working capital is a source of cash flow as transaction volumes increase from current cyclical depressed levels.

Free Cash Flow 9.1 -2.3 2.8 6.4 9.2 13.3 18.3Working Capital Inv. 2.2 -28.1 9.6 5.5 4.1 4.4 4.7

Cash 70.0 79.4 51.0 55.4 58.7 64.0 69.5Net Working Capital 55.4 28.7 38.3 43.8 47.9 52.3 57.0Debt 0.0 40.0 0.0 0.0 0.0 0.0 0.0

Net Cash 14.5 10.8 12.7 11.6 10.8 11.6 12.5Net Cash (excl. Buyback) 14.5 10.8 12.7 19.1 28.3 41.6 60.0

• Thus, Points does not require cash to grow its business. This dynamic is common among many e-commerce companies such as Amazon, Expedia, and Wayfair.

38

> Points provides investors with leverage to a recovery in travel demand and company-specific growth opportunities.

Leverage to Recovery – Long-Term Revenue Forecast20

19A

Gro

ss P

rofit

CO

VID

-19

Impa

ct

2020

EG

ross

Pro

fit

Rec

over

y to

2019

Lev

els

Org

anic

G

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)

New

Pa

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)

New

Pro

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Cro

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LT U

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Man

agem

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Targ

et

2025

E G

ross

Pr

ofit

(1) Organic growth defined as growth in partnerships in place in 2019.(2) Estimate for new partners includes recent Aeroplan partnership.

• Our 2025 gross profit estimate of $85 MM is underpinned by a recovery and growth of existing partnerships, new partnerships, and cross-selling opportunities (management highlighted the pipeline is stronger today than it was prior to impact of COVID-19)

• This compares to management’s long-term target of $95 MM which they had previously expected to achieve in 2022-2023

39

36%41%

46%

2019A 2025E ManagementTarget

Effective Margin Outlook

$20k

$40k

$60k

$80k

$100k

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Adj. EBITDA Per Employee

Leverage to Recovery – Operating Leverage

• A key performance indicator we monitor is employee productivity.

• EBITDA per employee has improved at a 7.6% CAGR over the last 9 years, which has resulted in a corresponding expansion of effective margins. The platform and technology can be leveraged across more transactions and loyalty programs at high incremental operating margins.

• We expect margins to expand as travel recovers with margins returning to 2019 levels by 2023 and expanding to 41% by 2025 under our Base Case assumptions. The Company has not reduced its workforce thus maintaining its ability to participate in therebound.

‒ Management’s previous 2022 long term target was 46% (pre-COVID).

> Points can support additional activity on the platform with limited incremental expenses. This drives long-term margin expansion.

(1)

(1) Effective Margin is calculated using management’s definition of Adjusted EBITDA for comparability to long-term targets.

40

Valuation

41

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Historical Share Price

> We believe the business was picking up momentum as highlighted by management in Q3 2019 and the share price was beginning to reflect this until COVID-19 took hold.

Points stock price rises from $12.50 to $24 per share, with LTM EV/EBITDA peaking at 38x. This was driven by new partnership with Southwest. Shares subsequently decline due to loss of American Airlines followings its merger with US Airways.

After the company reported Q3 2019 results, the share price rose from $11 to $19 (+70%) because of positive management commentary – “pipeline is the best they have ever seen.” Share price has since declined to $7.75 to reflect challenging environment created by COVID-19.

20-Year Share Price Performance

Company transitions business model to principal model, where the company sells points on behalf of customer and earns a margin. Leads to acceleration in revenue growth and achieves break-even profitability in 2007. Growth slows down during financial crisis.

42Historical Valuation Multiples

> Points has historically traded between 2% and 6% FCF yield. In our view, current valuation has dislocated but should normalize when the market regains confidence in a travel recovery.

Source: CapitalIQ, FAX

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Trailing FCF Yield (2010-2019)

43

10.1x 11.2x

7.4x 7.7x6.0x

Comparable Companies Analysis

Historical Travel Peers Valuation (2015-2019)1

Current EV / EBITDA2 (2019)

> Travel peers have historically traded at 15-20x EBITDA but now trade at depressed multiples because of COVID-19.

> Points should trade closer to higher end of its peers given its margin profile, ROCE, organic growth profile, and net cash position on balance sheet.

1. Travel peer group consists of Amadeus, Booking, Expedia. Tripadvisor excluded due to historical outlier valuation.

7.50x

10.00x

12.50x

15.00x

17.50x

20.00x

22.50x

2015 2016 2017 2018 2019 2020

44Financial Projections

BASE CASE

Base Case Assumptions

• Revenue Growth: • Forecast material decline in 2020 to reflect limited travel demand• Transaction activity recovers to 2019 levels in late 2022 in-line with current IATA

forecast (likely conservative with Points expected to outperform industry)• Long term growth underpinned by existing loyalty program growth, new

partnerships, and new product offerings• EBITDA Margins:

• Reflect modest 5-10% expense mitigation, government support programs, and benefit from weakening Canadian dollar in 2020

• Margins return to 2019 levels in late 2022• Long-term margin expansion from operating leverage

• FCF Conversion: 60-70% conversion to reflect low capital intensity of the business and net interest income from cash position

• Share Repurchases: Resume NCIB in 2022 with buybacks consuming 95% of FCF• Balance Sheet: Net cash position through forecast; Credit facility repaid in 2021• Exit Valuation: 6% FCF Yield

IRR27.8%

Financial results (US$) 2019A 2020E 2021E 2022E 2023E 2024E 2025ENet Revenue (Gross Profit) 59.4 33.4 46.5 55.8 64.2 73.8 84.8Adj. EBITDA (1) 21.5 2.1 11.0 16.6 21.0 27.4 35.0EBITDA 15.0 (1.7) 6.0 10.9 14.7 20.4 27.1Free Cash Flow 9.1 (2.3) 2.8 6.4 9.2 13.3 18.3Free Cash Flow Per Share 0.69 (0.18) 0.21 0.51 0.77 1.19 1.76Net Cash Position 14.5 10.8 12.7 11.6 10.8 11.6 12.5

Key Metrics 2019A 2020E 2021E 2022E 2023E 2024E 2025ENet Revenue Growth 10.2% -43.8% 39.2% 20.0% 15.0% 15.0% 15.0%Net Revenue % of 2019 56.2% 78.2% 93.9% 107.9% 124.1% 142.8%EBITDA Growth 6.1% -90.4% 432.4% 80.7% 34.9% 38.5% 33.2%EBITDA Margin 25.3% -5.2% 13.0% 19.6% 22.9% 27.6% 32.0%FCF Per Share Growth 78.9% nmf nmf 139.0% 52.2% 54.1% 48.4%FCF Conversion 60.4% nmf 46.5% 58.5% 62.4% 65.5% 67.5%

(1) Adj. EBITDA is calculated before SBC and lease payments. This is for comparison purposes relative to management disclosure.

Financials->

Base Case

(US$M unless otherwise stated)($10.2)($10.5)($11.1)($12.2)

Financial Statements2017201820192020202120222023202420253/31/186/30/189/30/1812/31/183/31/196/30/199/30/1912/31/193/31/206/30/209/30/2012/31/20

Revenue

Principal$332$352$374$195$272$327$376$432$497$83$91$89$88$90$94$92$98$76$24$46$49

Other partner revenue$16$25$27$16$22$26$30$35$40$6$6$6$7$6$6$6$9$7$1$3$4

Total revenue$349$376$401$210$294$353$406$467$537$89$98$94$95$96$100$98$107$83$25$49$54

Expenses

Direct cost of principal revenue($302)($322)($336)($177)($248)($297)($342)($393)($452)($76)($84)($82)($81)($83)($80)($84)($89)($69)($21)($42)($45)

Employment costs($26)($28)($32)($25)($31)($35)($40)($44)($48)($7)($7)($7)($7)($8)($8)($8)($9)($8)($5)($5)($7)

Marketing and communications($2)($1)($2)-0.422($0)($0)($0)($0)($0)($0)($0)($0)($0)

Technology services($2)($2)($3)-0.752($0)($1)($1)($1)($1)($1)($1)($1)($1)

D&A($4)($3)($5)($5)($5)($5)($5)($5)($5)($1)($1)($1)($1)($1)($1)($1)($1)($1)($1)($1)($1)

FX gain$0$0($0)$0$0($0)($0)$0$0($0)($0)$0$0

Operating expenses($8)($9)($8)($9)($9)($9)($9)($9)($9)($2)($2)($2)($2)($2)($2)($2)($2)($2)($2)($2)($2)

Other (incl. Gov't Subsidy)$4$0$0$0$0$0$2$2$0

Total expenses($344)($366)($385)($212)($292)($346)($395)($451)($514)($86)($95)($92)($92)($94)($92)($96)($103)($81)($27)($48)($56)

1.00%Finance income$0$1$1$1$1$1$1$1$1$0$0($0)$1$0$0$0$0$0$0$0$0

4.00%Finance expense$0$0$0($1)$0$0$0$0$0$0$0$0$0-$0($0)($0)($0)

EBT$5$11$17($3)$3$8$11$17$24$3$2$2$4$2$9$2$4$1($2)$1($2)

26.50%Income tax expense($1)($3)($5)$1($1)($2)($3)($5)($6)($1)($1)($1)($1)($1)($2)($1)($1)($0)$1($0)$1

Net income$3$8$12($2)$2$6$8$13$18$2$2$1$3$2$6$1$3$1($2)$0($2)

EPS$0.23$0.54$0.87($0.13)$0.15$0.43$0.69$1.09$1.62

Shares outstanding, ending14.614.113.213.213.212.611.911.210.4

Shares repurchased0.30.60.90.10.00.60.70.70.80.10.30.00.10.20.20.20.20.10.00.00.0

Price repurchased$10.19$13.45$11.75$15.44$10.00$12.00$14.40$17.28$20.74$10.82$15.28$14.28$11.64$11.18$12.28$11.63$11.90$15.44$10.00$10.00$10.00

Performance options0.05

Gross profit$47$54$65

Authi Seevaratnam: Authi Seevaratnam:Includes $6 MM one-time tax rebate$33

Authi Seevaratnam: Authi Seevaratnam:Target - $67-$73 MM$46$56$64

Authi Seevaratnam: Authi Seevaratnam:Target high-$90 million exiting 2022$74

Authi Seevaratnam: Authi Seevaratnam:Target high-$90 million exiting 2022$85

Authi Seevaratnam: Authi Seevaratnam:Target high-$90 million exiting 2022$0$14$14$13$14$13$20$14$18$14$4$7$9

ex-one-time$59$14

10.2%

Segmented financials

Revenue

LCR$340$366$391

Platform Partners$8$8$8

Points Travel$1$2$3

Total revenue$349$376$401

Gross margin

LCR$38$45$56$11$12$10$12$11$18

Nick Lim: Nick Lim:Includes $6 MM tax rebate$12$15$1225.4%

Platform Partners$7$7$7$2$2$2$2$2$2$2$2$2(4.8%)

Points Travel$1$1.7$2.5$0$0$0$0$0$1$1$1$1138.7%

Total gross margin$47$54$65$14$14$13$14$13$20$14$18$14

Direct adjusted opex

LCR($12)($13)($14)($3)($3)($3)($3)($3)($3)($4)($4)($4)

Platform Partners($5)($4)($4)($1)($1)($1)($1)($1)($1)($1)($1)($1)

Points Travel($4)($6)($7)($1)($1)($1)($1)($2)($2)($2)($2)($2)

Total direct adjusted opex($20)($22)($25)($6)($6)($5)($6)($6)($6)($6)($7)($6)

Opex as % of GM43.9%41.3%37.5%41.0%41.9%41.9%40.4%42.6%29.7%44.6%37.0%45.3%

Segment EBITDA

LCR$27$32$42$8$8$7$8$8$15$8$11$8

Platform Partners$2$4$3$1$1$1$1$1$1$1$1$1

Points Travel($3)($4)($4)($1)($1)($1)($1)($1)($1)($1)($1)($1)

Corporate ($13)($14)($14)($3)($3)($3)($4)($3)($3)($4)($4)($4)

Share-based comp($4)($4)($5)($2)($1)($1)($0)($1)($1)($1)($2)($1)

FAX-adjusted EBITDA$9$14$21$3$3$3$5$3$10$3$5$3

EBITDA$9$14$21$4$3$3$4$3$10$3$5$3

Add: share based payment expense$4$4$5$2$1$1$0$1$1$1$2$1

Adj. EBITDA$13$18$27$6$5$4$4$4$11$4$7$3

Adjusted EBITDA by segment

LCR$21$26

Platform Partners($2)($1)

Points Travel($6)($7)

Total adjusted EBITDA$13$19$27$6$5$4$4$4$11$4$7$3

Less: share based compensation($4)($4)($5)($2)($1)($1)($0)($1)($1)($1)($2)($1)

FAX-adjusted EBITDA$9$14$21$4$3$3$4$3$10$3$5$3

FAX-adjusted EBITDA/Gross Margin %18.8%26.4%32.7%

ex-one time25.9%

Cash flow statement

Operating activities

Net income$3$8$12($2)$2$6$8$13$18$2$2$1$3$2$6$1$3$1($2)$0($2)

Adjustments for:

D&A$4$3$5$5$5$5$5$5$5$1$1$1$1$1$1$1$1$1$1$1$1

Unrealized FX$1($1)$0($1)$0($1)($0)($0)($0)$0($1)$1($1)

Equity settled share based payment$4$4$5$2$3$4$5$6$6$1$1$1$1$1$1$1$2$1$0$1$1

Finance costs$0$0$0$0$0$0$0$0

Deferred income tax ($1)$0$1($1)($0)($0)($0)$1$0$0$0$1$0($1)$0($1)

Unrealied gain (loss) on derivatives$1($1)$1($1)($1)($0)$0($1)$0$0($0)$0($1)

Changes in restricted cash($2)$1$0($2)$1

Changes in non-cash balances$4$7$2($28)$10$6$4$4$5$9$4($17)$11$1($15)($2)$18($5)($37)$13$1

Interest paid($0)($0)($0)($0)($0)($0.0)($0)

Cash flow from operating activities$17$20$24($25)$20$20$22$27$33$13$6($15)$16$6($6)$1$23($3)($38)$15$1

Investing activities

Acquisition of PP&E($1)($1)($1)($1)($1)($1)($1)($1)($1)($0)($0)($0)($0)($1)($0)($0)($0)($0)($0)($0)($0)

Additions to intangible assets($1)($1)($1)($1)($1)($1)($1)($1)($1)($0)($0)($0)($0)($0)($0)($0)($1)($1)($0)($0)($0)

Settlement of ST investment$10$0

Cash flow from investing$7($2)($2)($2)($3)($3)($3)($3)($3)($1)($1)($0)($1)($1)($0)($0)($1)($1)($0)($0)($0)

Financing activities

Payment of lease liabilities($1)($1)($2)($2)($2)($2)($2)($0)($0)($0)($0)($0)($0)($0)($0)

Proceeds from credit facility$40($40)$0$0$0$0($29)$40$0$0$0

Proceeds from share option exercise$0$0$0$0$0$0$0$0$0$0

Shares repurchased($3)($8)($10)($1)$0($8)($10)($13)($18)($1)($4)($1)($1)($2)($3)($2)($2)($1)$0$0$0

Purchase of share capital held in trust

Nick Lim: Nick Lim: to purchase shares for RSU program($2)($3)($6)($1)($3)($4)($5)($6)($6)($3)($0)($0)($1)($1)($2)($3)$0($0)($1)($1)

Taxes paid on net settlement of RSUs($3)($3)($1)$0($3)($0)($0)($3)($0)($0)($0)($1)

Cash flow from financing($6)($13)($21)$35($45)($13)($16)($20)($25)($4)($7)($1)($2)($6)($4)($5)($6)$38($1)($1)($1)

FX change($1)$1($0)($0)$1$0$0$0($0)$1($1)$1

Change in cash$17$6$1$9($28)$4$3$5$5$7($0)($15)$14($1)($10)($4)$16$35($39)$14($0)

Cash, beginning$46$64$69$70$79$51$55$59$64$64$71$71$55$69$68$58$54$70$105$65$80

Cash, end$64$69$70$79$51$55$59$64$69$71$71$55$69$68$58$54$70$105$65$80$79

CFO ex WC$8$5$10($1)$4$8$11$15$20$0($1)$3$4$0$8$0$2$0($1)$2($1)

Net working capital$14$15$15$49$11$10$10$10$11$12$8$11$15$12$17$15$15$53$51$52$51

Net working capital ex cash and restricted cash($50)($54)($58)($30)($40)($45)($49)($54)($58)($59)($63)($45)($54)($56)($42)($40)($55)($51)($14)($27)($29)

Share repurchass as % of FCF ex WC102%84%73%(22%)0%117%109%94%96%

Balance Sheet

ASSETS$14.5$13.0$11.2$12.4$10.8

Current Assets

Cash and cash equivalents$64$69$70$79$51$55$59$64$69$71$71$55$69$68$58$54$70$105$65$80$79

Restricted cash$1$1$3$1$1$1$1$1$1$1$1$1$1$1$3$1$1$1$1

Funds receivable from payment processors$15$14$14$7$10$12$14$16$19$7$8$7$14$8$9$9$14$2$3$7$7

Accounts receivable$8$9$22$7$10$12$14$16$19$7$5$7$9$7$19$21$22$15

Authi Seevaratnam: Authi Seevaratnam:tax rebate in Q1$3$7$7

Prepaid taxes$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0

Prepaid expenses$2$4$2$2$2$2$2$2$2$2$2$2$4$4$3$4$2$2$2$2$2

Total current assets$89$96$111$97$75$83$90$100$110$87$86$72$96$87$90$88$111$124$76$96$97

Non-current Assets

Property and equipment$2$2$2$2$2$2$2$3$2$2$2$2

Right-of-use assets$3$0$4$4$3$3$3

Intangible assets$15$14$13$15$14$14$14$14$13$13$13$13

Goodwill$7$7$7$7$7$7$7$7$7$7$7$7

Deferred tax assets$3$3$2$3$3$3$3$2$2$3$2$2

Other assets$3$3$0$3$3$3$0$0

Total non-current assets$30$26$28$30$30$29$26$30$29$28$28$28

Total assets$119$123$139$117$116$102$123$117$119$117$139$151

LIABILITIES

Current liabilities

Accounts payable$8$9$14$6$9$10$12$14$16$8$7$7$9$9$10$11$14$9$3$6$6

Income taxes payable$1$0$2$1$1$1$1$1$1$1$1$1$0$0$1$2$2$1$1$1$1

Payable to loyalty program partners$66$70$78$37$50$57$64$71$78$65$68$53$70$65$59$59$78$58$18$34$37

Current portion of lease liabilities$1$1$1$1$1$1$1$0$1$1$1$1$1$1$1$1

Current portion of other liabilities$1$2$1$2$2$2$2$2$2$1$1$1$2$1$1$1$1$2$2$2$2

Total current liabilities$76$81$96$47$62$72$79$88$98$75$78$62$81$76$73$74$96$71$24$44$47

Non-current liabilities

Lease liabilities$2$0$3$3$2$2$2

Credit Facility$40$0$0$0$0$0$0$0$0$0$40$40$40$40

Other liabilities$1$0$0$0$0$0$0$0$0$0$0$0

Deferred tax liabilities$1$0$0$1$1$1

Total non-current liabilities$1$0$3$0$0$0$0$3$3$3$3$43

Total liabilities$76$82$100$76$78$63$82$79$77$77$100$113

Total shareholders equity$43$41$39$41$37$40$41$38$42$40$39$38

Total liabilities & shareholders equity$119$123$139$117$116$102$123$117$119$117$139$151

Check($0)($0)($0)($0)($0)$0($0)($0)($0)($0)($0)$0

Balance sheet drivers

Period, Start12/31/1912/31/2012/31/2112/31/2212/31/2312/31/2312/31/183/31/196/30/199/30/1912/31/193/31/206/30/209/30/20

Period, End12/31/2012/31/2112/31/2212/31/2312/31/2312/31/233/31/196/30/199/30/1912/31/193/31/206/30/209/30/2012/31/20

Days in Period366365365365009091929291919292

% Revenue: funds receivable4.4%3.6%3.6%3.5%3.5%3.5%3.5%3.5%3.5%2.0%2.4%2.3%3.6%0.5%3.4%3.4%3.4%

Days 1613131313131313137.28.88.513.01.712.512.512.5

AR ex tax rebate$8$9$16$7$7$13$15$16$15$3$7$7

% revenue: AR2.2%2.5%4.0%3.5%3.5%3.5%3.5%3.5%3.5%1.9%3.3%3.8%3.9%4.4%3.4%3.4%3.4%

Days 891413131313131371214141612.512.512.5

% of COGS: AP2.6%2.9%4.1%3.5%3.5%3.5%3.5%3.5%3.5%2.6%3.2%3.4%4.1%3.4%3.4%3.4%3.4%

Days 10111512.612.612.612.612.612.6101212151212.512.512.5

% of COGS: Payable to program partners21.7%21.6%23.3%20.7%20.0%19.3%18.6%18.0%17.3%19.6%18.3%17.9%23.3%20.9%20.5%20.5%20.5%

Days 79798575.673.170.668.165.663.1726765857675.075.075.0

Cash Flow Forecast201720182019202020212022202320242025

Revenue12.5

Principal$309$332$352$374$195$272$327$376$432$4975$83$91$89$88$90$94$92$98$76$24$46$49

Other partner revenue$13$16$25$27$16$22$26$30$35$406$6$6$6$7$6$6$6$9$7$1$3$4

Total revenue$322$349$376$401$210$294$353$406$467$53760$89$98$94$95$96$100$98$107$83$25$49$54

Prinicpal growth rate %7.6%5.9%6.5%(48.1%)40.0%20.0%15.0%15.0%15.0%8.0%3.2%3.8%11.1%(15.7%)(75.0%)(50.0%)(50.0%)

Other partner growth rate %29.3%49.8%8.9%(41.2%)40.0%20.0%15.0%15.0%15.0%2.3%(8.0%)5.2%34.8%14.6%(75.0%)(50.0%)(50.0%)

Total growth rate %8.4%7.9%6.6%(47.6%)40.0%20.0%15.0%15.0%15.0%7.7%2.4%3.9%12.7%(13.8%)(75.0%)(50.0%)(50.0%)

Gross Margin

Principal$30$29$39$18$25$29$34$39$45$8$7$7$8$7$15$8$9$7$2$4$4

Other partner$16$25$27$16$22$26$30$35$40$6$6$6$7$6$6$6$9$7$1$3$4

Total gross margin$47$54$65$33$46$56$64$74$85$14$14$13$14$13$20$14$18$14$4$7$9

Principal gross margin %9.1%8.4%10.4%

Nick Lim: Nick Lim:includes tax rebate9.1%9.0%9.0%9.0%9.0%9.0%9.3%7.9%7.8%8.5%8.3%15.4%8.8%8.9%9.3%9.0%9.0%9.0%

% of 2019 (ex-tax rebate)56.2%78.2%93.8%107.9%124.1%142.7%

Direct Operating Costs($20)($22)($25)($22)($22)($24)($27)($29)($31)($6)($6)($5)($6)($6)($6)($6)($7)($6)($5.2)($5.3)($5.5)

Expense Growth8.8%10.3%(9.7%)0.0%10.0%10.0%7.5%7.5%2.8%5.8%19.0%14.0%7.7%(15.0%)(15.0%)(15.0%)

Segment EBITDA$26$32$41$11$24$31$37$45$54$8$8$7$8$8$14$8$11$8($2)$2$3

EBITDA/gross profit %56.1%58.7%62.5%33.7%52.4%56.3%58.2%60.9%63.5%59.0%58.1%58.1%59.6%57.4%70.3%55.4%63.0%55.6%(43.1%)25.2%37.5%

Coporate opex($13)($14)($14.3)($14)($14)($15)($17)($18)($20)($3)($3)($3)($4)($3)($3)($4)($4)($4)($3.2)($3.2)($3.5)

Corporate Opex Growth4.8%4.4%(2.6%)0.0%10.0%10.0%7.5%7.5%1.5%-2.3%4.5%13.5%23.4%(5.0%)(10.0%)(15.0%)

Corporate opex/gross profit %28.1%25.4%21.9%41.8%30.0%27.5%26.3%24.6%23.0%24.1%25.1%27.3%25.5%24.7%16.4%25.6%23.2%29.4%88.6%45.4%39.2%

Government Subsidies$4$0$0$0$0$0$0$0$0$0$0$2$2$0

Share-based comp($4)($4)($5)($2)($3)($4)($5)($6)($6)($2)($1)($1)($0)($1.2)($1.1)($1.2)($1.7)($0.9)($0.3)($0.5)($0.7)

share comp/gross profit %9.6%8.1%7.9%7.0%7.5%7.5%7.5%7.5%7.5%15.9%8.5%8.4%0.1%9.1%5.4%8.5%9.4%6.4%7.5%7.5%7.5%

FAX Adjusted EBITDA$9$14$21($1)$7$12$16$21$28$3$10$3$5$3($3)$0($1)

Less: IFRS 16 payments($1)($1)($2)($2)($2)($2)($2)($0)($0)($0)($0)($0)($0)($0)($0)

Add: Interest income$0$1$1($1)$1$1$1$1$1$0$0$0$0$0($0)($0)($0)

Less: cash taxes($3)($3)($4)($0)($1)($2)($3)($5)($6)($1)($2)($1)($1)($0)$1($0)$1

Less: capex($3)($2)($2)($2)($3)($3)($3)($3)($3)($1)($0)($0)($1)($1)($0)($0)($0)

Less: working capital requirements$4$7$2($28)$10$6$4$4$5$1($15)($2)$18($5)($37)$13$1

Free cash flow$8$16$16($33)$12$12$13$18$23$3($8)$0$20($4)($40)$12$0

Free cash flow ex. Working capital$3.4$9.1$14.1($4.8)$2.8$6.4$9.2$13.3$18.3$2$7$2$3$1($3)($1)($1)

FCF Yield (ex WC)6.00%6.00%6.00%6.00%6.00%6.00%

Approx. costs (inc. sharebased)$38$40$44$34$40$44$49$53$57

As a % of gross margin81.6%74.8%67.3%103.2%85.2%78.7%75.6%71.2%67.0%

YoY cost growth %6.2%9.2%(21.8%)14.9%10.9%10.5%8.2%8.3%

Implied market cap$47$106$153$222$305

Divided by shares o/s13.212.611.911.210.4

Share price$3.53$8.45$12.86$19.82$29.41

Appreciation(62.8%)(11.1%)35.3%108.6%209.6%

Presentation Material Calc:

FAX EBITDA$8.7$14.2$15.0

Authi Seevaratnam: Authi Seevaratnam:Tax Rebate

Nick Lim: Nick Lim: to purchase shares for RSU program

Nick Lim: Nick Lim:Includes $6 MM tax rebate

Nick Lim: Nick Lim:Loyalty reward currency moved from non-current to current

Authi Seevaratnam: Authi Seevaratnam:Includes $6 MM one-time tax rebate

Nick Lim: Nick Lim:includes tax rebate

Authi Seevaratnam: Authi Seevaratnam:Target - $67-$73 MM

Authi Seevaratnam: Authi Seevaratnam:Target high-$90 million exiting 2022

Authi Seevaratnam: Authi Seevaratnam:Target high-$90 million exiting 2022($1.7)$6.0$10.9$14.7$20.4$27.1

Company EBITDA$13.2$18.6$21.5$2.1$11.0$16.6$21.0$27.4$35.0

FAX CF (Ex-W/C)$12.6$13.5$22.2$3.4$10.3$14.6$18.0$22.9$28.7

Less: Lease Liabilities$0.0$0.0($1.2)($1.5)($1.5)($1.5)($1.5)($1.5)($1.5)

Less:Capex($3)($2)($2)($2)($3)($3)($3)($3)($3)

Less:RSU Purchases($2)($6)($9)($3)($3)($4)($5)($6)($6)

FAX FCF$7.5$5.4$9.1($2.3)$2.8$6.4$9.2$13.3$18.30.00

W/C$4$7$2($28)$10$6$4$4$5

FCF$12$12$11($30)$12$12$13$18$23

Difference$4($4)($5)$2$0.0$0.0($0.0)($0.0)$0.0

FCF Per Share$0.52$0.38$0.69($0.18)$0.21$0.51$0.77$1.19$1.76

Buyback$3$8$10$1$0$8$10$13$18

% of FAX FCF45%142%113%-45%0%117%109%94%96%

% of FCF29%64%91%-3%0%63%75%70%76%

Net Cash Position13.715.414.510.812.711.610.811.612.5

1.7- 0.9- 3.82.0- 1.1- 0.80.80.8

($2.2)($1.2)($3.4)$2.8($1.1)($0.8)$0.8$0.8

$0.00

Reported Adj. EBITDA$13.0$17.9$20.6$1.3$10.4$16.1$20.5$26.8$34.3$4.4$11.0$4.2$7.0$3.6($2.8)$0.6($0.1)

EBITDA less capex$6$11$18($4)$3$8$12

Growth rate %93.7%56.0%(123.7%)(169.3%)172.7%47.8%

Equity purchase (USD)($9.50)$0.00$0.00$0.00$30.00

IRR33.3%($7.78)$0.00$0.00$0.00$0.00$30.00

31%

LT Financials

Quarterly Data12/31/200512/31/200612/31/200712/31/200812/31/200912/31/201012/31/201112/31/201212/31/201312/31/201412/31/201512/31/201612/31/201712/31/201812/31/2019

Points International201320142015201620172018200520062007200820092010201120122013201420152016201720182019

Authi Seevaratnam: Authi Seevaratnam:Adjustments made for $6 million tax rebate

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

Key Drivers Disclosure

Organic Growth (estimated)

Authi Seevaratnam: Authi Seevaratnam:Defined as growth in existing partnerships that have been in the market for at least one year0.0%9.0%9.0%7.3%6.0%6.5%

New Customer Growth (estimated)

Authi Seevaratnam: Authi Seevaratnam:Defined as growth in existing partnerships that have been in the market for at least one year26.0%7.2%-0.4%1.2%1.9%0.1%

Number of Customers

Points Transacted9,6359,63211,22413,99915,11917,88620,40622,47725,17436,000

Authi Seevaratnam: Authi Seevaratnam:Estimated based on white paper - 3 billion points sold in January

Authi Seevaratnam: Authi Seevaratnam:Defined as growth in existing partnerships that have been in the market for at least one year

Authi Seevaratnam: Authi Seevaratnam:Defined as growth in existing partnerships that have been in the market for at least one year

Authi Seevaratnam: Authi Seevaratnam:Adjustments made for $6 million tax rebateTransactions1.21.01.21.41.51.82.32.42.5

Points Per Transaction8,0919,7859,49210,34610,2739,9668,9049,47210,069

GP Per Point0.0020.0020.0020.0020.0020.0020.0020.0020.0020.002

Segmented Disclosure:

Loyalty Currency Retailing:

Revenue339,652366,421391,045

COGS(301,492)(321,615)(335,032)

Gross Profit38,16044,80656,013

Direct Operating Expenses(11,515)(12,941)(13,830)

Contribution26,64531,86542,183

Revenue Growth7.9%6.7%

Gross Profit Growth17.4%11.6%

Expense Growth12.4%6.9%

Gross Margin11.2%12.2%12.8%

Contribution Margin7.8%8.7%9.2%

Contribution to Gross Profit Margin69.8%71.1%72.3%

Platform Partners

Revenue7,7047,9797,577

COGS(570)(615)(665)

Gross Profit7,1347,3646,912

Direct Operating Expenses(4,644)(3,784)(3,871)

Contribution2,4903,5803,041

Revenue Growth3.6%-5.0%

Gross Profit Growth3.2%-6.1%

Expense Growth-18.5%2.3%

Gross Margin92.6%92.3%91.2%

Contribution Margin32.3%44.9%40.1%

Contribution to Gross Profit Margin34.9%48.6%44.0%

Travel:

Revenue1,2881,8452,555

COGS(32)(111)(25)

Gross Profit1,2561,7342,530

Direct Operating Expenses(4,292)(5,522)(6,838)

Contribution(3,036)(3,788)(4,308)

Revenue Growth43.2%38.5%

Gross Profit Growth38.1%45.9%

Expense Growth28.7%23.8%

Gross Margin97.5%94.0%99.0%

Contribution Margin-235.7%-205.3%-168.6%

Contribution to Gross Profit Margin-241.7%-218.5%-170.3%

Corporate

Indirect Expenses(13,086)(13,718)(14,328)

Expense Growth4.8%4.4%

Geographic Disclosure

US73,53489,522102,034165,469218,445258,448282,824303,856331,625358,993

Europe20,90032,49535,51034,14432,06028,12628,75431,10925,66121,832

Other1,2449172,7572,7574,4849,80210,24312,58118,95920,352

Total95,678122,934140,301202,370254,989296,376321,821347,546376,245401,177

US %77%73%73%82%86%87%88%87%88%89%

Europe %22%26%25%17%13%9%9%9%7%5%

Other %1%1%2%1%2%3%3%4%5%5%

Total %100%100%100%100%100%100%100%100%100%100%

Revenue / GP Disclosure

>10% Revenue Customers3334434333

% of Overall Revenue81%79%76%83%81%67%76%69%70%69%

~80% GP - Number of Customers14

Income / Cash Flow Statement

+Principal Revenue20,11065,48370,78189,087114,865129,859193,880244,686283,409308,964332,291351,743374,484

+Agency Revenue10,7819,1948,9466,5778,0489,6178,43110,21112,87112,64816,35324,50226,693

Sales9,42912,02430,89174,67779,72795,664122,913139,476202,311254,897296,280321,612348,644376,245401,177

-COGS--(14,596)(55,786)(60,902)(76,006)(98,501)(110,949)(169,266)(215,333)(253,710)(278,483)(302,094)(322,341)(335,722)

Gross Profit9,42912,02416,29518,89118,82519,65824,41228,52733,04539,56442,57043,12946,55053,90465,45510.28%

-Direct Operating Expenses(20,451)(22,247)(24,539)13%

-Indirect Operating Expenses(13,086)(13,718)(14,328)

-Adjusted Operating Expense(13,314)(15,089)(15,327)(17,687)(17,535)(15,811)(18,070)(21,333)(24,347)(28,688)(29,928)(31,023)(33,537)(35,965)(38,867)

EBITDA(3,885)(3,065)9681,2041,2903,8476,3427,1948,69810,87612,64212,10613,01317,93926,588

-SBC(408)(367)(584)(648)(683)(576)(587)(863)(1,264)(1,821)(1,588)(2,317)(4,455)(4,381)(5,172)

-D&A(3,022)(3,125)(3,051)(1,532)(783)(895)(2,298)(2,803)(3,285)(2,150)(3,546)(4,529)(3,988)(3,364)(4,668)

-Other (FX Adjustment)(515)19(1,264)(2,933)(142)(584)42(75)64(230)35(5,439)5836(401)

Operating Income(7,830)(6,537)(3,931)(3,910)(318)1,7923,4993,4534,2136,6757,543(179)4,62810,23016,347

-Finance/ Other(2,094)(1,369)(505)35538(8)4640599796209213666697

EBT(9,924)(7,907)(4,436)(3,555)(280)1,7843,5453,4934,2726,7727,639304,84110,89617,044

-Taxes----344172(487)4,769(666)(2,088)(2,474)(1,545)(1,461)(3,104)(5,155)

A-Tax Income(9,924)(7,907)(4,436)(3,555)641,9563,0588,2623,6064,6845,165(1,515)3,3807,79211,889

+D&A3,0223,1253,0511,5327838952,2982,8033,2852,1503,5464,5293,9883,3644,668

+/-Other (FX, SBC, Taxes)(1,470)5,3951,2723,410(29)1,713847(3,807)1,7742,6282,5326,5545,2472,3135,607

A-Tax Cash Flow(8,372)613(114)1,3878184,5646,2037,2588,6659,46211,2439,56812,61513,46922,164

-Lease Payments--------------(1,229)

-Working Capital6,1112,39011,131(5,939)3,9813,9771,4036,74814,625(17,081)10,6892864,1506,5522,200

-Capex(2,897)(1,030)(865)(651)(244)(1,363)(611)(1,078)(980)(754)(647)(1,411)(1,241)(1,204)(1,231)

-Intangible Investment(125)(115)(158)(186)(1,351)(3,970)(1,510)(620)(1,190)(1,894)(2,805)(1,682)(1,494)(1,070)(1,147)

-RSUs/Taxes----------(1,215)-(2,361)(5,784)(9,472)20152016201720182019

Free Cash Flow(5,283)1,8589,994(5,389)3,2043,2085,48512,30821,120(10,267)17,2656,76111,66911,96311,285FCF17,2656,76111,66911,96311,285

-M&A--------(3,500)(17,511)-----Buyback4,2903,1763,3467,30610,258

-Shareholder Returns(800)(400)---18524(243)141(614)(4,290)(3,176)(3,346)(7,306)(10,258)Excess Cash12,9753,5858,3234,6571,0270.5988486983

Excess Cash Flow(6,083)1,4589,994(5,389)3,2043,2266,00912,06517,761(28,392)12,9753,5858,3234,6571,027

S/O15,60115,21914,82014,24213,812,066

Growth:Buyback % FCF25%47%29%61%91%

Revenue Growth27.5%156.9%141.7%6.8%20.0%28.5%13.5%45.1%26.0%16.2%8.6%8.4%7.9%6.6%

Gross Profit Growth27.5%35.5%15.9%-0.3%4.4%24.2%16.9%15.8%19.7%7.6%1.3%7.9%15.8%10.2%

EBITDA Growth24.3%7.2%198.2%64.9%13.4%20.9%25.0%16.2%-4.2%7.5%37.9%14.6%

CF Growth-1320.0%-41.0%457.9%35.9%17.0%19.4%9.2%18.8%-14.9%31.8%6.8%19.8%

Margins:

Gross Margin100.0%100.0%52.7%25.3%23.6%20.5%19.9%20.5%16.3%15.5%14.4%13.4%13.4%14.3%14.8%

EBITDA Margin3.1%1.6%1.6%4.0%5.2%5.2%4.3%4.3%4.3%3.8%3.7%4.8%5.1%

EBITDA to GP Margin5.9%6.4%6.9%19.6%26.0%25.2%26.3%27.5%29.7%28.1%28.0%33.3%34.6%

EBITDA to FCF Conversion-447.7%248.4%83.4%86.5%171.1%242.8%-94.4%136.6%55.8%89.7%66.7%54.9%

NI to FCF Conversion151.6%5006.3%164.0%179.4%149.0%585.7%-219.2%334.3%-446.3%345.2%153.5%146.8%

Other:

SBC to GP4.3%3.1%3.6%3.4%3.6%2.9%2.4%3.0%3.8%4.6%3.7%5.4%9.6%8.1%7.9%

Return on Cash Position0.1%-0.0%0.1%0.1%0.1%0.3%0.2%0.4%0.3%1.0%1.0%

Capex to GP32.0%9.5%6.3%4.4%8.5%27.1%8.7%6.0%6.6%6.7%8.1%7.2%5.9%4.2%3.6%

Tax Rate0.0%0.0%0.0%0.0%122.9%-9.6%13.7%-136.5%15.6%30.8%32.4%5150.0%30.2%28.5%30.2%

Buyback

Buyback % of FCF24.8%47.0%28.7%61.1%90.9%

Buyback % of FCF (pre-w/c)65.2%49.1%44.5%135.0%112.9%

2010 to 20182013-2018

ExpensesAverageDeltaPer AnnumAverageDeltaPer Annum

Management Compensation1,8301,9672,6262,8523,9843,8274,1105,4705,6146,379

Management SBC3072389349111,3521,4251,9043,2303,2324,119

Management Compensation (Cash)1,5231,7291,6921,9412,6322,4022,2062,2402,3822,2605.75%3.33%0.42%4.18%1.45%0.29%

Growth14%-2%15%36%-9%-8%2%6%-5%

% of Gross Profit8%7%6%6%7%6%5%5%4%3%

Employee Compensation8,79210,81212,74216,08218,54518,87219,11020,29722,27625,481

Employee SBC269349(71)3534691634131,2251,1491,053

Employee Compensation (Cash)8,52310,46312,81315,72918,07618,70918,69719,07221,12724,42812.02%4.16%0.52%6.08%8.40%1.68%

Growth23%22%23%15%4%-0%2%11%16%

% of Gross Profit43%43%45%48%46%44%43%41%39%37%

Employment Costs10,62212,77915,36818,93422,52922,69923,22025,76727,89031,86012.82%2.29%0.29%8.05%5.56%1.11%

Growth20%20%23%19%1%2%11%8%14%

% of Gross Profit54%52%54%57%57%53%54%55%52%49%

Marketing and Communication1,3501,3801,6761,0661,3791,7042,2201,8431,4601,6080.98%4.16%0.52%6.49%0.52%0.10%

Growth2%21%-36%29%24%30%-17%-21%10%

% of Gross Profit7%6%6%3%3%4%5%4%3%2%

Technology Services8755735211,0131,0831,3431,6911,9122,2102,57712.28%0.35%0.04%16.88%-1.03%-0.21%

Growth-35%-9%94%7%24%26%13%16%17%

% of Gross Profit4%2%2%3%3%3%4%4%4%4%

Other Operating Expenses3,5593,9644,6644,6575,6105,8666,4188,4708,7867,94411.96%1.81%0.23%13.54%-2.21%-0.44%

Growth11%18%-0%20%5%9%32%4%-10%

% of Gross Profit18%16%16%14%14%14%15%18%16%12%

1.08%0.57%

Summarized Expenses:

Cash Expenses15,83018,10921,36624,40628,78030,02431,23233,53735,96538,81710.80%13.81%1.73%8.06%7.14%1.43%

Growth14%18%14%18%4%4%7%7%8%

% of Gross Profit81%74%75%74%73%71%72%72%67%59%

SBC5765878631,2641,8211,5882,3174,4554,3815,17228.22%

Growth2%47%46%44%-13%46%92%-2%18%

% of Gross Profit2.9%2.4%3.0%3.8%4.6%3.7%5.4%9.6%8.1%7.9%

Productivity

Employees9310711815117218121221123026912.53%

Growth15%10%28%14%5%17%-0%9%17%

Gross Profit Per Employee2112282422192302352032212342210.49%1.38%

Cost Per Employee(114)(119)(130)(125)(131)(125)(110)(122)(121)(118)0.40%-0.67%

Contribution Per Employee97109112939911094981131020.59%3.89%

Growth12%3%-16%6%11%-14%5%15%-9%

Balance Sheet

Assets:

Cash22,33224,68928,42123,64627,21628,46334,85345,10864,18836,86851,36456,52563,51469,13169,965

Restricted Cash-----1,7761,6193,2021,6021,5731,0005005005002,534

Funds Receivable--5,0345,0665,8554,62410,83710,0579,0716,6916,58810,46115,22913,51214,302

Accounts Receivable2,7392,3103,2932,4481,9072,0542,4111,9121,4012,3052,9884,0577,7419,31821,864

Inventory----------218162582,154189

Prepaid Expenses1,8942,1251,7361,5487591,1791,0139402,2101,1341,0381,3131,9051,4641,964

Other--2,3973,0973,5473,1072,4612,780----457383194

Current Assets26,96529,12440,88135,80539,28441,20353,19463,99978,47248,57163,19673,01889,40496,462111,012

PP&E3,6072,9341,9811,3276071,6111,7122,2072,0921,8561,4661,7502,1282,3512,371

Right of Use Assets--------------3,060

Intangible Assets7,6036,8371,3844802,0144,8444,5662,8561,85518,32018,61616,89615,26513,95212,806

Goodwill--4,1294,2054,2054,2052,5802,5802,5807,1307,1307,1307,1307,1307,130

Long-Term Inventory----------2,7182,7122,661--

Other2,2891,7574758981,0336132,2337,10210,0139,1846,8021,7282,5572,6452,321

Total Assets40,46340,65348,85142,71447,14352,47664,28578,74495,01285,06199,928103,234119,145122,540138,700

Liabilities:

Accounts Payable and Accrued Liability2,2843,3433,4253,2173,0873,7813,4554,6734,7836,2605,8086,3357,9989,48913,766

Payables to Loyalty Program15,81121,15930,19625,96730,21531,33740,04844,91256,11136,03049,52653,24265,56769,74978,270

Current Lease Liability--------------1,323

Other424341,6061,0876096298635941,1341,2851,8522,4092,0951,7973,123

Current Liabilities18,51924,53635,22730,27133,91135,74744,36650,17962,02843,57557,18661,98675,66081,03596,482

Lease Liability--------------2,209

Other Liabilities28,13119,51220,687259301951877738437269547930538495817

Total Liabilities46,65044,04755,91430,53034,21236,69845,24350,91762,46543,84457,73362,91676,19881,53099,508

Equity:

Share Capital39,16343,23846,02556,66256,66256,68357,37857,56458,69361,08459,29358,41256,39453,88645,799

Contributed Surplus2,0798,7047,9467,6158,2988,8719,67110,10510,38111,9859,8599,88110,6474,446-

Retained Earnings / AOCI(47,429)(55,335)(61,034)(52,093)(52,029)(49,776)(48,007)(39,842)(36,527)(31,852)(26,957)(27,975)(24,094)(17,322)(6,607)

Total Equity(6,186)(3,394)(7,063)12,18412,93115,77819,04227,82732,54741,21742,19540,31842,94741,01039,192

Check--0(0)-----------

Working Capital

Days Receivable37 days36 days25 days39 days31 days19 days13 days12 days16 days24 days22 days33 days

Days Inventory0 days0 days0 days0 days0 days0 days0 days0 days0 days0 days2 days0 days

Days Payable170 days181 days150 days148 days148 days121 days61 days71 days70 days79 days79 days85 days

Cash Conversion Cycle-133 days-146 days-125 days-109 days-116 days-102 days-48 days-59 days-53 days-55 days-54 days-52 days

Working Capital % Sales-26.9%-31.1%-28.5%-23.8%-26.3%-23.8%-12.6%-15.0%-13.6%-13.9%-14.0%-13.4%

Returns

Return on Invested Capital10.9%13.2%9.2%9.2%12.1%12.9%9.5%7.7%18.0%19.8%

Return on Equity12.4%16.1%29.7%11.1%11.4%12.2%-3.8%7.9%19.0%19.6%

Capital Structure

Net Debt / (Cash)(22,332)(24,689)(28,421)(23,646)(27,216)(28,463)(34,853)(45,108)(64,188)(36,868)(51,364)(56,525)(63,514)(69,131)(69,965)

Share Count

Beginning Shares Outstanding12,00214,98214,98214,98615,07215,16815,36015,64915,30614,87914,56114,112

Shares Cancelled2,980(0)48696192289(343)(428)(317)(450)(870)

Ending Shares Oustanding14,98214,98214,98615,07215,16815,36015,64915,30614,87914,56114,11213,242

Average Price Paid12.527.4310.5516.2511.79

Total Options Outstanding7208748748766364795477247246161,2291,321

Exercise Price (C$)11.709.279.279.778.7310.1315.3415.2515.2516.0015.0014.26

Exercisable Options162502502554391184233417417522299196

Exercise Price (C$)10.0011.6711.6711.548.966.779.8716.0816.0816.6718.3218.32

RSUs Outstanding94126228480480712658497

Fair Value10.9112.9120.3812.1712.1710.1611.5014.63

Shares Outstanding (incl. RSU)14,98214,98214,98615,07215,26315,48615,87715,78715,35915,27314,77013,738

Weighted Average Shares Outstanding (Basic)8,81010,82611,83113,66414,98214,98315,04015,13815,24215,40215,54815,21914,80614,17313,666

Weighted Average Shares Outstanding (Diluted)8,81010,82611,83113,77914,98215,07015,53315,30715,53115,62715,60115,21914,82014,24213,812

Per Share Metrics

Earnings Per Share-1.13-0.73-0.37-0.260.000.130.200.540.230.300.330.260.230.550.56

Cash Flow Per Share-0.950.06-0.010.100.050.300.400.470.560.610.720.630.850.951.17

Free Cash Flow Per Share-0.600.170.84-0.390.210.210.350.801.36-0.661.110.440.790.840.82

Market Statistics

Share Price (C$)ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?

CurrencyERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?

Share Price (US$)ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?

Market Capitalization (US$)ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?

Enterprise Value (US$)ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?

Market Statistics

EV / EBITDAERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?

P / CFERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?

P / FCFERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?

P / EERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?ERROR:#NAME?

Annotated History / Notes

2018LCR: Added Emirates in Q2 (BGT, Transfer, Reinstate, Extend

Platform: Added Marathon Petroleum with MakeItCount program

Travel: Launched program with Singapore Airlines, Hawaiian Airlines, in addition to cross-selling existing LCR customers

Other: Partnered with Amadeus Loyalty Management and Awared (allows full seat availability, miles and cash payments, and the use of miles for upgrades)

2017LCR: Added Copa (BGT), Etihad (B), Air Europa (BGT), WestJet (B), and Air Canda; also formed relationship with Virgin Australia

Platform: Redeem with Melia hotels and ANA; new partnership with Scotiabank; new relationship with Groupon

Travel: Added ANA and Etihad

2016LCR: US Airways BGT departure

Travel: Added Miles&More, FlyingBlue, All Nippon, Air Miles, and La Quinta Inn

2015LCR: Lost US Airways / American; first full year of United; commission relationship with Hainan Airways for international customers

Travel: Added Miles&More, FlyingBlue, All Nippon, Air Miles, and La Quinta Inn

2014- Crew Markting: Provides technological and commercial solutions for United Airlines MileagePlus loyalty program; entered BGT program; largest in the companies history

- Accruity: Points Hound enables Points to enter travel space $2 million)

- Hilton Hhonors: Expect to be a large revenue and gross margin contributor in future years

- Collinson: Partnered with Collinson's earn mall

- Hilton and Southwest were the large contributor to growth; organic growth was flat due to loyalty program consolidation leading to lower promotional levels

- Invested $4 million in China Rewards (later it was written off)

2013- LCR: Added Southwest, Finnair, Spirit, MasterCard; opened London office

2012- Partnerships with Wyndham Hotels, Melia Hotels in 2012; in 2013, they added Southwest and Finnair with additional revenue was expected to be $100 million of additional revenue ($10 million of gross profit)

- Growth appears to be largely organic

2011- Completed 10 for 1 reverse share split

- Began trading on the NASDAQ

2010- Saw a rebound in activity from 2009 - launched Air France-KLM (Q3 2009), Alitalia, Virgin, and Qatar added to 2010

- Began trading on the NASDAQ

- Lost Delta (50% of revenue), but they were able to backfill with new customers (restructured with US airways)

2009- LCR: Added FlyingBlue (BGT), principal role for US Airways, renewed several relationships

- Delta: lost contract

- New partnerships at higher gross margins offset concessions made at the end of 2008

- Initiated reseller model in 2007

2009- Completed 10 for 1 reverse share split

- Began trading on the NASDAQ

Points Transaction Volumes

2008200920102011201220132014201520169634.73459700000069632.059172999999611224.23563313998.62404815119.00039499999917886.13092999999920406.07042699999922476.81877299999925174.291787999999

Gross Profit Per 1,000 Points

2008200920102011201220132014201520161

Buyback20152016201720182019429031763346730610258Excess Cash20152016201720182019129753585832346571027

Valuation

Free Cash Flow Forecast2017A2018A2019A202020212022202320242025

Revenue348.6376.2401.2210.2294.3353.2406.2467.1537.2

Less: COGS(302.1)(322.3)(341.7)(176.8)(247.8)(297.4)(342.0)(393.3)(452.3)

Gross Profit46.653.959.433.446.555.864.273.884.8

Less: Expenses(38.0)(40.3)(44.0)(34.5)(39.6)(43.9)(48.5)(52.5)(56.9)

EBITDA8.613.615.4(1.1)6.911.915.621.328.0

Less: Lease Payments--(1.4)(1.5)(1.5)(1.5)(1.5)(1.5)(1.5)

Add: Interest Income / (Expense)0.20.70.7(0.5)0.60.50.60.60.7

Less: Cash Taxes(2.7)(2.8)(4.2)(0.1)(0.7)(2.0)(3.0)(4.5)(6.3)

Cash Flow from Operations6.111.410.5(3.2)5.38.911.715.820.8

Less: capex(2.7)(2.3)(2.4)(1.7)(2.5)(2.5)(2.5)(2.5)(2.5)

Free Cash Flow (before working capital)3.49.18.1(4.8)2.86.49.213.318.3

Shares Outstanding14.614.113.213.213.212.611.911.210.4

FCF Per Share0.230.650.61(0.36)0.210.510.771.191.76

Key Assumptions:

Revenue Growth7.9%6.6%-47.6%40.0%20.0%15.0%15.0%15.0%

EBITDA Growth58.4%13.5%-106.9%-750.9%72.4%31.7%35.9%31.6%

EBITDA Margin3.6%3.8%-0.5%2.3%3.4%3.9%4.6%5.2%

Balance Sheet:

Interest-Bearing Debt---40.0-----

Working Capital49.853.755.428.738.343.847.952.357.0

Cash63.569.170.079.451.055.458.764.069.5

Net Debt(13.7)(15.4)(14.5)(10.8)(12.7)(11.6)(10.8)(11.6)(12.5)

Terminal Value 2025Sensitivity Ana