III. Black Swan Conference – November 2011

Company Presentation

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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: 450.000

Capital Social: 450.000 €

Founders: 59,50 %

Shareholder 1: 37,80 %

Others: 2,70 %

The Company

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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

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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 ?

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The Secretplaces Concept

Our philosophy: travelling is not just about numbers.

It is about experiences, culture, style.

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The Secretplaces Concept

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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).

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The Secretplaces Site

The Secretplaces website

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The Secretplaces Site

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The Secretplaces Site

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The Secretplaces Site

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The Secretplaces Site

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The Secretplaces Site

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The Concept

Our secret places to stay

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The Secretplaces - charming city hotels

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The Secretplaces – relaxing countryside guesthouses

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The Secretplaces – boutique hotels

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The Secretplaces – design hotels

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The Secretplaces – historic manor houses

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The Secretplaces - Authentic rural estates

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The Secretplaces Destinations

Visitors % world market Rank Travel Destinations

France 76,8 7,2 % 1

Spain 52,7 5,0 % 4

Italy 43,6 4,1 % 5

United Kingdom 28,1 2,6 % 6

Turkey 27,0 2,5 % 7

Germany 26,9 2,5 % 8

Austria 22,0 2,1 %

Greece 15,0 1,2 %

Morocco 9,3 0,9 %

Portugal 6,9 0,6 %

Total: 28,6 % Source: UNWTO (numbers of 2010)

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Secretplaces Numbers

Website visitors

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Secretplaces Numbers

- Over 1.000.000 visitors per year

- Over 10.000.000 page views per year

- 38 % of returning users to website

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Site Numbers – Clients (Oct. 2010 to Oct. 2011)

Spanish speaking market 31,40 %

German speaking market 24,35 %

English speaking market 23,80 %

Portuguese speaking market 4,60 %

Others 15,85 %

Competitive advantage

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Competitive Advantage

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Google Positioning - charming hotels, romantic hotels, boutique hotels

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Google Positioning - hoteles con encanto

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Google Positioning - kleine Hotels, schöne Hotels, boutique Hotels

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Google Positioning – Secretplaces in Paris

Strictest selection criteria (1000 hotels selected out of over 4.000 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)

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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 1.000.000 visitors per year

Dedicated page with photos, descriptions, room info and reviews

Posting of promotions, events and specials

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Benefits for Hotels

What is our revenue source ?

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Revenue Sources

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Revenue Source

2011 2012 2013

- 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

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Challenges

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Site Numbers – Value Reservations 2002 -2010Value Reservatrions

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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

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New Features

What we have done

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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)

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New Features

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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)

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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

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Future Features and Growth Opportunities