III. Black Swan Conference – November 2011 Company Presentation

T H E C O M P A N Y Name:Secret Places – Agência de Viagens Lda. Established:June 1st 2001 Incorporated in: Portugal Ownership: 99,9 % by Secrets of Iberia SGPS S.A: Secrets of Iberia SGPS S.A shareholder structure: Total shares: Capital Social: € Founders:59,50 % Shareholder 1:37,80 % Others: 2,70 % The Company

T H E C O M P A N Y Name: Michael Bendixen Born in San Francisco Grown up in Germany, Brazil, France and Portugal Education: Business Administration University of Cologne Career: Nixdorf Computers, Tandem and Wang Laboratories Mercedes Benz (marketing) Bertelsmann AG (until 2000) The Company

F O R E W O R D

T H E C O M P A N Y The Secretplaces Concept Secretplaces is an independent guide to some of the most beautiful and charming hotels and guesthouses independent of price or style. Our mission Provide personalised online solutions to travellers looking for something truly special.

Why are we uniquely placed to do this ? T H E C O M P A N Y The Secretplaces Concept

Our philosophy: travelling is not just about numbers. It is about experiences, culture, style. T H E C O M P A N Y The Secretplaces Concept

T H E C O M P A N Y The Secretplaces Concept Why are we so special?: Secretplaces combines the honest advice of a travel guide with the professional services of an online agent; - Superb selection (thousands of hotels visited to handpick only the best); - Information (in constant search of beautiful places to go); - Expertise (personal knowledge of all destinations); - Advice and Service (clients can contact us directly for help & advice).

T H E C O M P A N Y The Secretplaces Site The Secretplaces website

T H E C O M P A N Y The Secretplaces Site

T H E C O M P A N Y The Secretplaces Site

T H E C O M P A N Y The Secretplaces Site

T H E C O M P A N Y The Secretplaces Site

T H E C O M P A N Y The Secretplaces Site

T H E C O M P A N Y The Concept Our secret places to stay

T H E C O M P A N Y The Secretplaces - charming city hotels

T H E C O M P A N Y The Secretplaces – relaxing countryside guesthouses

T H E C O M P A N Y The Secretplaces – boutique hotels

T H E C O M P A N Y The Secretplaces – design hotels

T H E C O M P A N Y The Secretplaces – historic manor houses

T H E C O M P A N Y The Secretplaces - Authentic rural estates

T H E C O M P A N Y The Secretplaces Destinations Visitors % world marketRank Travel Destinations France76,8 7,2 %1 Spain52,7 5,0 %4 Italy43,6 4,1 %5 United Kingdom28,1 2,6 %6 Turkey27,0 2,5 %7 Germany26,9 2,5 %8 Austria22,0 2,1 % Greece15,0 1,2 % Morocco 9,3 0,9 % Portugal 6,9 0,6 % Total: 28,6 % Source: UNWTO (numbers of 2010)

M I L E S T O N E S Secretplaces Numbers Website visitors

M I L E S T O N E S Secretplaces Numbers - Over visitors per year - Over page views per year - 38 % of returning users to website

M I L E S T O N E S Site Numbers – Visitors

M I L E S T O N E S Site Numbers – Clients (Oct to Oct. 2011) Spanish speaking market31,40 % German speaking market24,35 % English speaking market23,80 % Portuguese speaking market 4,60 % Others15,85 %

Competitive advantage C O M P E T I T I T I V E A D V A N T A G E Competitive Advantage

M I L E S T O N E S Google Positioning - charming hotels, romantic hotels, boutique hotels

M I L E S T O N E S Google Positioning - hoteles con encanto

M I L E S T O N E S Google Positioning - kleine Hotels, schöne Hotels, boutique Hotels

M I L E S T O N E S Google Positioning – Secretplaces in Paris

Strictest selection criteria (1000 hotels selected out of over visited) Secretplaces brand associated with highest levels of quality and service Highly personalized service (English, German, French, Spanish, Italian, Portuguese) Easy navigation and search In depth information High customisation of products to meet the individual clients needs Large variety of additional site features (Culture, gastronomy, history, sports, itineraries) C O M P E T I T I T I V E A D V A N T A G E Competitive advantage vs Competition

Member of an exclusive selection of hotels and guesthouses Access to a difficult to reach audience of discerning travellers Access to over visitors per year Dedicated page with photos, descriptions, room info and reviews Posting of promotions, events and specials C O M P E T I T I T I V E A D V A N T A G E Benefits for Hotels

What is our revenue source ? T H E C O M P A N Y Revenue Sources

T H E C O M P A N Y Revenue Source Commissions on-request 82 % 30 % 10 % - Fee format for small guesthouses 15 % 24 % 20 % - Commission on-line booking 2 % 36 % 60 % - Paid hotel promotion 1 % 5 % 5 % - Planned: upmarket advertisers 0 % 5 % 5 %

Challenges C H A L L E N G E S Challenges

M I L E S T O N E S Site Numbers – Value Reservations

C H A L L E N G E S Challenges - Spanish market decline - Clients searching for “deals” or lower priced accommodations - Environmental change in hotel industry to change prices constantly - New distribution channels - Booking engine predominance: booking.com - User hotel reviews: tripadvisor.com - Format challenge: smartphones and tablets

F U T U R E G R O W T H O P P O R T U N I T I E S New Features What we have done

F U T U R E G R O W T H O P P O R T U N I T I E S New Features Brand new web-site (launched in May 2011) - 3 clicks to hotel page - new city and destination pages - “theme” and advanced search New user friendly hotel account - easy update of hotel features - on-line publication of promotions - hotel “wall” with events and specials Facebook integration & page Traveller community (on-line reviews, restaurant and cultural tips, things to do) Secretplaces travelogue (blog)

F U T U R E G R O W T H O P P O R T U N I T I E S New Features

F U T U R E G R O W T H O P P O R T U N I T I E S Future Features and Growth Opportunities The next step

Integrated Reservation System (2011 – 2012) - Easy to use 3 step booking process - Easy to use extranet for hotels (price and availability update) - Channel management integration - Direct link to hotel reservation systems - New hotel and client account layout Small Hotel Application (2013) - Stand-alone version for guesthouses and small hotels (10 rooms) I-Phone App Hotel Locator (2013) F U T U R E G R O W T H O P P O R T U N I T I E S Future Features and Growth Opportunities

New Markets - Portuguese version of site for the Brazilian internal market (2012) - New Destinations (2012 / 2013): Europe: Germany, Austria, Switzerland Latin America: Brazil, Argentina, Chile, Mexico North America: California Asia Pacific: Bali, Australia, New Zealand F U T U R E G R O W T H O P P O R T U N I T I E S Future Features and Growth Opportunities