MIDDLE + Cost Per Prospects Response Qualified Conversi Final Share Effective Total Cost Cost Per Final

AFFLUENT Prospect Reached Rate on Rate Customer Customer Customer

CUSTOMERS Rate Acquisition
cost per
Direct Mail 0.5 2500000 3.00% 75000 0.60 45000.00 0.85 38250.00 41.96% 1.53% 1250000.00 32.68 13.71
customer
Take-ones 0.10 2000000 2.50% 50000.0 0.30 15000.00 0.85 12750.00 13.99% 0.64% 200000.00 15.69 2.19

FSI 0.05 3500000 1.50% 52500.0 0.30 15750.00 0.85 13387.50 14.69% 0.38% 175000.00 13.07 1.92

Direct Sales 3000/Rep 60000 25.00% 15000 0.60 9000.00 0.85 7650.00 8.39% 12.75% 30000.00 3.92 0.33

Bind-ins 1.00 50000 50.00% 25000 0.90 22500.00 0.85 19125.00 20.98% 38.25% 50000.00 2.61 0.55
8110000 217500 107250 91162.5 18.7028657617

1
MOST AFFLUENT Cost Per Prospects Response Qualified Conversi Final Share Effective Total Cost Cost Per Final
CUSTOMERS Prospect Reached Rate on Rate Customer Customer Customer
Rate Acquisition
cost per
Direct Mail 0.5 1250000 3.00% 37500 0.60 22500.00 0.85 19125.00 32.43% 32.43% 625000.00 32.68 10.60
customer
Take-ones 0.10 2000000 2.50% 50000.0 0.15 7500.00 0.85 6375.00 10.81% 10.81% 200000.00 31.37 3.39

FSI 0.05 3500000 1.50% 52500.0 0.15 7875.00 0.85 6693.75 11.35% 11.35% 175000.00 26.14 2.97

Direct Sales 3000/Rep 60000 25.00% 15000 0.60 9000.00 0.85 7650.00 12.97% 12.97% 30000.00 3.92 0.51

Bind-ins 1.00 50000 50.00% 25000 0.90 22500.00 0.85 19125.00 32.43% 32.43% 50000.00 2.61 0.85
6860000 180000 69375 58968.75 18.3147853736

2
ALL CUSTOMERS BREAKEVEN
Number of Customers 50000 100000 126730 150000 200000
Avg Rev per Customer $ 122.78 $ 122.78 $ 122.78 $ 122.78 $ 122.78
Less
Avg Direct cost/cust $ 20.00 $ 17.50 $ 16.25 $ 15.00 $ 12.50
Avg Acquisition cost/cust $ 18.70 $ 18.70 $ 18.70 $ 18.70 $ 18.70
Total Direct Costs $ 38.70 $ 36.20 $ 34.95 $ 33.70 $ 31.20

ContributionNew
$ 84.07 $ 86.57 $ 87.82 $ 89.07 $ 91.57
Customer
ContributionExisting
$ 102.78 $ 105.28 $ 106.53 $ 107.78 $ 110.28
Customer

# of New Customers 50000 50000 26730 50000 50000

# of existing customers 0 50000 100000 100000 150000

New Contribution $ 4203621 $ 4328621 $ 2347493 $ 4453621 $ 4578621

Existing Contribution $0 $ 5263765 $ 10652529 $ 10777529 $ 16541294
Total Contribution $ 4203621 $ 9592386 $ 13000023 $ 15231151 $ 21119915
Fixed Cost: Infrastructure $ 5000000 $ 5750000 $ 6000000 $ 6250000 $ 700000
Profit/Loss before
-$ 796379 $ 3842386 $ 7000023 $ 8981151 $ 20419915
Advertising
Advertising $ 2000000 $ 2000000 $ 2000000 $ 2000000 $ 2000000
Cumulative Profit/Loss -$ 2796379 $ 1842386 $ 5000023 $ 6981151 $ 18419915
Cumulative Profit/Loss
-$ 2.80 $ 1.84 $ 5.00 $ 6.98 $ 18.42
(millions)

3
AFFLUENT + MOST
BREAKEVEN
AFFLUENT
Number of Customers 50000 90229 100000 150000 200000
Avg Rev per Customer $ 163.32 $ 163.32 $ 163.32 $ 163.32 $ 163.32
Less
Avg Direct cost/cust $ 20.00 $ 18.00 $ 17.50 $ 15.00 $ 12.50
Avg Acquisition cost/cust $ 18.31 $ 18.31 $ 18.31 $ 18.31 $ 18.31
Total Direct Costs $ 38.31 $ 36.31 $ 35.81 $ 33.31 $ 30.81

ContributionNew
$ 125.00 $ 127.00 $ 127.50 $ 130.00 $ 132.50
Customer
ContributionExisting
$ 143.32 $ 145.32 $ 145.82 $ 148.32 $ 150.82
Customer

# of New Customers 50000 40229 50000 50000 50000

# of existing customers 0 50000 50000 100000 150000

New Contribution $ 6250135 $ 5109192 $ 6375135 $ 6500135 $ 6625135

Existing Contribution $0 $ 7265874 $ 7290874 $ 14831749 $ 22622623
Total Contribution $ 6250135 $ 12375066 $ 13666010 $ 21331884 $ 29247758
Fixed Cost: Infrastructure $ 5000000 $ 5375000 $ 5750000 $ 6250000 $ 700000
Profit/Loss before
$ 1250135 $ 7000066 $ 7916010 $ 15081884 $ 28547758
Advertising

Advertising $ 2000000 $ 2000000 $ 2000000 $ 2000000 $ 2000000

Cumulative Profit/Loss -$ 749865 $ 5000066 $ 5916010 $ 13081884 $ 26547758

Cumulative Profit/Loss
-$ 0.75 $ 5.00 $ 5.92 $ 13.08 $ 26.55
(millions)

4
SEGMENT ANNUAL %AGE OF POTENTIAL INTEREST OTHER ANNUAL Share Average revenue POTENTIAL Average
INCOME POTENTIAL CARDHOLDER REV REVENUE REV per card holder CARDHOLDERS revenue per
HOLDERS S (all card holders) card holder
(affluent + most
MIDDLE 3500-4500 18% 3.39 37.13 23.5 60.63 0.39 23.94
affluent)
AFFLUENT 4500-6000 15% 2.79 86.63 36.75 123.38 0.33 40.15 2.79 0.5376 66.33
MOST AFFLUENT 6000+ 13% 2.40 148.5 61.25 209.75 0.28 58.69 2.40 0.4624 96.99
TOTAL CARD 18.6 8.57 122.7752928416 5.19 163.317488
HOLDERS (m)
Cards in 9.5
Circulation
Average revenue 122.7752928
per card holder
(all card holders)
Average revenue 163.317488
per card holder
(Affluent + Most
Affluent Class)