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Exhibit 10.1
MASTER AGREEMENT
BETWEEN
- TELEFONICA INTERACTIVA, S. A., a Spanish company with registered office in
Xxxx Xxx 00, Xxxxxx, represented by its President Mr. Xxxx Xxxxx Xxxxx de
Buruaga;
AND
- AMADEUS GLOBAL TRAVEL DISTRIBUTION, S. A., a Spanish company with registered
office in Xxxxxxxx xx Xxxxxxxxx 0, Xxxxxx 00000, represented by its President
and CEO, Xx. Xxxx Xxxxxxx Xxxxx.
WHEREAS:
(a) TELEFONICA INTERACTIVA, S. A. (hereinafter referred to as "TI"), a 100%
subsidiary of TELEFONICA, S.A. (hereinafter referred to as "TELEFONICA"),
and AMADEUS GLOBAL TRAVEL DISTRIBUTION, S. A. (hereinafter referred to as
"AMADEUS"), intend to build up a cooperation relationship aiming at giving
full value to their respective activities in certain areas through a
common entrepreneurial project;
(b) AMADEUS has developed and operates a fully automated reservation and
distribution system known as AMADEUS Global Travel Distribution System;
(c) AMADEUS has gained specific know-how in the field of electronic travel
industry;
(d) On the basis of the experience acquired in the field of electronic travel
industry, AMADEUS has developed an automated system for reservation and
other travel-related services for airlines, travel agents and other
entities involved in this field;
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(e) AMADEUS has further developed and implemented its own electronic website
technology for the field of travel;
(f) TI owns or operates an "Access to Internet" business, based on several
"Internet Service Provider" companies (including but not limited to
Teleline in Spain, ZAZ in Brasil, Advance in Argentina and CTC-Internet in
Chile), that is aimed to cover a significant part of the "Access to
Internet" market in Spain and Latin America;
(g) TI owns and operates an "Internet Portal" business, based on some
Global/Multilocal Internet High Traffic Websites (including but not
limited to Ole and ZAZ), devoted to both massive advertising and
e-commerce businesses, being this "Portal Network" one of the leading
services in terms of traffic within the Spanish and Portuguese speaking
countries and markets;
(h) TI owns and operates large content and functional Internet development
facilities;
(i) TELEFONICA, as owner of TI, is present in most of the Spanish and
Portuguese speaking countries with its telecommunication business. Among
the companies owned (fully or partially) by TELEFONICA there are several
mobile or cellular operators, cable operators and TV stations.
(j) Within the group of companies owned (fully or partially) by TELEFONICA, TI
has been created as the vehicle to concentrate most of the end-user
oriented Internet related activities world-wide;
(k) TI will make its best efforts to obtain from TELEFONICA and from its
Subsidiaries and Affiliated companies, support to AMADEUS and TI in this
cooperation project in order to contribute to the success of the new
company to be established as set forth herein;
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(l) TI and AMADEUS (hereinafter referred to as "the Parties") have taken due
note of the information previously exchanged with respect to the outlooks,
strategies and operational conditions of their respective commercial
activities under this Agreement.
That being stated, the Parties hereto agree as follows:
Article 1. - Definitions
Affiliated or Affiliate means, with respect to a party, any person which,
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with such party, where "control" means
power and ability to elect a majority of the Board of Directors (or other
governing body) or to direct or cause the direction of the management and
policies of such Party, whether through ownership of voting securities (but in
no event less than fifty percent (50%) of the total issued and outstanding
common shares) or by contract.
AMADEUS Subscriber means any person, travel agency, or branch thereof, corporate
account or supplier of travel related services, which contracts to receive
access to the AMADEUS Global Travel Distribution System.
Business Plan means a plan for the business of NewCo consisting of:
(a) The strategic, development and marketing objectives of NewCo.
(b) The operating and financial targets and forecasts of NewCo for the year
1999, and the two financial years following that.
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Budget means the budget of NewCo for the years 1999 and 2000 prepared using the
plans, guidelines and forecasts established in Attachment A, which also serves
as a basis for the Business Plan.
Confidential Information means:
(a) The provisions of this Agreement and
(b) Any information, data, practices and techniques supplied or disclosed by a
Party or a Subsidiary or Affiliate ("supplier") to a Party or a Subsidiary
or Affiliate to a Party in connection with NewCo ("recipient") other than
information, data, practices and techniques:
(i) in the possession of a recipient prior to the date of its disclosure
to a recipient by a supplier;
(ii) in the public domain prior to the date of its disclosure to a
recipient by a supplier;
(iii) which have entered the public domain other than as a result of
breach of confidence by the recipient; or
(iv) supplied to a recipient without restriction by a third party who is
under no obligation to a supplier to maintain that information in
confidence.
Security Interest means:
(a) a mortgage, pledge, lien, charge, assignment, hypothecation, security
interest or any interest or power otherwise arising in or over any
interest in any share or reserved in or over an asset, or any other right
of a creditor to have a claim satisfied prior to other creditors from the
proceeds of any asset; or
(b) an agreement to create or give any security or right referred to in
paragraph (a) of this definition.
Subsidiary(ies) means an entity (already existing or yet to be established)
directly or indirectly controlled or owned by a party, as the case may be. (1)
Furthermore, direct or indirect control or ownership shall be deemed to exist as
decribed in this Article 1 ("Definitions").
(1) [ILLEGIBLE]
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Article 2. - Purpose of the Agreement
2.1. With this Agreement TI and AMADEUS intend to establish a jointly owned
company with the objective of establishing a travel-focused website. This
website will provide news, reports, destination information, and on-line
purchase facilities for travel and travel-related products.
Said jointly owned company will be the only travel-oriented component seamlessly
integrated in the overall "internet hubs" being developed by TI. Said Internet
hub aims to target the Spanish and Portuguese speaking markets with the
provision of content and e-commerce services.
The main target customers will be Spanish and Portuguese speaking customers
based in Spain, Portugal and Latin American countries listed in Attachment B.
In particular, the jointly owned company's website will encompass:
(i) On-line purchase facilities provided by AMADEUS through the use of
the 1a-Res product. This product enables access to availability,
fare and reservations on air, hotel, and car services, including
access to negotiated fares and special offers. Additional providers
will be added as they become available through AMADEUS web products,
or as they are specifically developed for the jointly owned company
(for instance, local railways and ferries). Sales of tour operator
packages and cruise services may also initially be offered via
e-mail and/or call centers.
(ii) Information content related to travel that will initially be
purchased, provided by both Parties and later on will be
complemented by the jointly owned company's own editorial/content
management activity. This content will include (but will not be
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limited to) live news feeds related to travel, ad-hoc reports and
articles and links to websites chosen by the jointly owned company.
(iii) Fulfillment services will be contracted out to travel agencies
working with the AMADEUS System in the various targeted markets. The
selection of each travel agency will be mutually agreed by both
Parties.
(iv) Customer support. The jointly owned company will explore the best
solution for Call Center support, if any.
(v) Payment services. Based on AMADEUS' 1a-Res facilities for Air, Car
and Hotel. The jointly owned company will look for adequate
solutions to complete the role of the merchant.
(vi) New services and functionalities covering travel-related and
non-travel-related products will be added at a later stage, as
agreed upon by the Parties.
2.2. In particular, the Parties agree to establish a Spanish "Sociedad Anonima"
(hereinafter referred to as "NewCo") which shall establish the travel-focused
website as described in Article 2.1.
2.3 NewCo shall enter into service agreements with AMADEUS and TI in order to
make available to NewCo the required facilities and services related to the
above. Such agreements shall be discussed in good faith and executed within a
term of seventy five (75) days of signature of this Agreement.
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Article 3. - Corporate Purpose of NewCo
3.1. NewCo shall have as its main purpose the establishment of the
travel-focused website as described in Article 2.1.
3.2. In relation to the above, TI and AMADEUS undertake all reasonable efforts
to supply to NewCo, and implement, following an agreed schedule, the services
and facilities referred to in Attachment A to this Agreement.
3.3. The Parties will enter into an exclusive agreement with AMADEUS for the
access by NewCo to the reservation and distribution facilities of AMADEUS. It is
understood that NewCo will not, in any case, enter into any sort of contractual
agreement or arrangement with any other computer reservation system (CRS) or
distribution system without the prior written approval of the Parties.
Article 4. - Obligations of the Parties
4.1. In accordance with the provisions set forth in Attachment A and subject to
the relevant contractual arrangements, which the Parties intend to conclude
within seventy five (75) days of signature of this Agreement, TI shall (directly
or through the adequate channel or Subsidiary):
(a) promote the NewCo website through all feasible media channels of TI,
both on-line and off-line. This will be performed via regular
advertising at the most favourable rate, and via the use of spare
advertising capacity.
(b) place the website in a prominent position on TI web properties;
(c) give access to competitive technology solutions;
(d) provide content from various media of TI;
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(e) promote the distribution of the services and facilities described
herein through TELEFONICA's mobile phone networks, as feasible and
according to the agreements between NewCo and the corresponding
company providing mobile phone networks;
(f) include in TI's own websites a routing link to the NewCo website.
Other types of support shall be agreed by the Parties and regulated from time to
time (on a case-by-case basis).
In addition to all of the above, and bearing in mind that TI, TELEFONICA and its
Affiliates and Subsidiaries are legally independent companies, TI will make its
best efforts to cause TELEFONICA and its Affiliates and Subsidiaries to perform
the following:
(a) promote the NewCo website through all feasible media channels of
TELEFONICA and its Affiliates and Subsidiaries, both on-line and
off-line. This will be performed via regular advertising at the most
favourable rate, and via the use of spare advertising capacity.
(b) place the website in a prominent position on TELEFONICA and its
Affiliates and Subsidiaries web properties;
(c) give access to competitive technology solutions;
(d) provide content from various media of TELEFONICA and its Affiliates
and Subsidiaries;
(e) promote the distribution of the services and facilities described
herein through TELEFONICA's mobile phone networks, as feasible and
according to the agreements between NewCo and the corresponding
company providing mobile phone networks;
(f) include in the websites owned by TELEFONICA and its Affiliates and
Subsidiaries a routing link to the NewCo website.
4.2 In accordance with the provisions set forth in Attachment A and subject to
the relevant contractual arrangements, which the Parties intend to conclude
within seventy five (75) days of
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signature of this Agreement, AMADEUS shall (directly or through the adequate
channel or Subsidiary):
(a) provide NewCo with access and usage of the customised on-line
booking engine (being the AMADEUS 1a-Res facility at the time of
signature of this Agreement) for air travel, hotel and car
reservations initially (additional provider sevices will be added as
they become available) and, eventually, to other mutually agreed web
based travel related facilities, so that NewCo may carry out
travel-related reservations, at the most favourable customer price
in the markets covered by this Agreement (provided to customers of
comparable size and volumes);
(b) make available its infrastructures and technical know-how for the
development of travel-related e-commerce, also with reference to the
definition and supervision of the fulfilment and logistics
activities;
(c) develop and establish contacts between NewCo and the main suppliers
(at a global level) of travel-related services;
(d) channel NewCo requirements, through the relevant organization within
the AMADEUS Group, into the AMADEUS product plan process, covering
distribution products and functionalities;
(e) put at the disposal of NewCo any appropriate relevant material
concerning the facilities and services described in Attachment A;
(f) include in its own website - as well as in the other sites of the
Subsidiaries - a routing link to the site of NewCo;
Other types support shall be agreed by the Parties and regulated from time to
time (on a case-by-case basis).
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Article 5. - Special Obligations
5.1 Subject to the exceptions noted herein, AMADEUS and TI (on their behalf and
on behalf of their Subsidiaries) agree not to invest, alone or with other
parties, into similar ventures, in order to develop the offer through websites
travel information and on-line purchase of travel-related products for end-users
for the markets of Spain, Portugal and the countries of Latin America listed in
Attachment B.
5.2 AMADEUS and TI agree to actively promote the website of NewCo.
5.3 It is understood and agreed that, as part of their core business, AMADEUS
and its National Marketing Companies and similar distributors may offer
internet-based products and services, as well as corporate management solutions,
to AMADEUS Subscribers. Examples of these products and services are web booking
engines and programmatic interfaces to the AMADEUS System (API).
5.4 TI will have the right to make its own information content available through
other websites, not developed by or for NewCo, regardless of the fact that these
contents are also used by NewCo.
5.5 TI and AMADEUS and/or any of their Subsidiaries, as the case may be, shall
not be bound by the provisions of Article 5.1 above in the event the other Party
breaches the special obligation therein described.
In addition to the above, AMADEUS shall not, in the countries affected by the
activities described below, be bound by the provisions of Article 5.1 in the
event that TELEFONICA by itself or through its Affiliates and/or Subsidiaries
invests with a significant participation, alone or with other parties, in
ventures dedicated to substantially the same purpose as NewCo, without AMADEUS
prior written consent.
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Article 6. - Registered Office. Corporate Name. Bylaws.
NewCo shall have its registered office in Madrid, and shall be incorporated
according to the provisions of this Agreement and the Articles of Association,
not later than 75 (seventy-five) days after the date of signature of this
Agreement.
Article 7. - Corporate Capital
7.1. NewCo shall have a fully subscribed and paid-up corporate capital
equivalent to EURO 1 million which shall be represented by 1 million shares
having a face value of 1 EURO each.
7.2 The capital of NewCo shall be subscribed and fully disbursed as follows:
- AMADEUS: EURO 500,000 (five hundred thousand)
- TI: EURO 500,000 (five hundred thousand).
Article 8. - Restriction on Sale and Transfer of Shares
8.1. TI and AMADEUS shall maintain clear title to, and unrestricted voting
rights in, any and all shares or participations ("shares") owned by each of them
in NewCo. The shares of NewCo and/or any right related or arising out of the
same shall not be encumbered with liens of any kind or Security Interest,
without prior consent of all Parties.
The shares of NewCo, and/or any right related or arising out of the same, shall
not be transferable to third parties for a period of five (5) years from the
date of incorporation of NewCo (the "restriction period"), with the exception of
transfers, by either Party, to a Subsidiary
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provided that, prior to any such transfer (which must be all shares and/or
related rights held by the transferring shareholder):
- Any such Subsidiary to which shares and/or related rights are
transferred agrees in writing with the other shareholder(s) to be
bound by all of the terms of this Agreement; and
- The shareholder transferring its interest to its Subsidiary agrees
in writing with the other shareholder(s) to remain jointly and
severally liable with the transferee for any breach by the latter of
any of the terms of this Agreement.
- The shareholder transferring its interest shall remain bound by all
provisions and terms of this Agreement related to marketing and
support services, confidentiality and exclusivity commitments.
8.2. The Parties shall discuss and agree on the possible admission of third
parties as shareholders of NewCo, in the event such third parties are able to
provide a significant contribution, financially or otherwise to the targets and
performance of NewCo. For any such event, and if mutual agreement is reached, it
is understood that it shall be effected by means of an increase in the capital
stock or through an assignment of equal portions of the shares held by the
original shareholders (if they decide to proceed to any such assignment).
Article 9. - Right of First Refusal -- Transfer of shares
9.1. Upon expiration of the restriction period, any transfer of shares in NewCo
and/or related rights, except for a transfer of shares and/or related rights to
a Subsidiary pursuant to Article 8, shall be subject to a right of first refusal
in favor of AMADEUS and TI as the case may be.
9.2. Prior to any transfer of shares whatsoever, or any transfer of any right
related or arising out of the shares (the "transfer"), the transferring
shareholder shall give written notice to all other shareholders at the address
indicated in the Register of Shareholders, by registered mail,
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return receipt requested, of its intention to sell (the "transfer notice"). The
transfer notice shall provide information regarding the number of shares or
related rights for sale, the name of the proposed transferee (and of the actual
beneficial owner), and the agreed price. AMADEUS and/or TI, as the case may be,
shall have sixty (60) days from receipt of the transfer notice to communicate to
the transferring shareholder his acceptance, or refusal, to acquire the shares
and/or related rights being sold. Failure to respond within sixty (60) days
from receipt ("the term") shall be deemed election not to purchase.
9.3. If neither AMADEUS, nor TI, elect to exercise its right of first refusal,
the transferring shareholder shall close the sale within sixty (60) days from
the expiration of the term, and transfer the shares or related rights to the
proposed transferee, at the same price and conditions indicated in the transfer
notice. If neither AMADEUS, nor TI, elect to exercise the right of first
refusal, the transfer of shares and/or related rights shall be made within sixty
(60) days from the expiration of the term, at the same terms and conditions
indicated in the transfer notice. If both AMADEUS and TI elect to exercise the
right of first refusal, the shares and/or related rights shall be allocated in
proportion to their participation in NewCo.
9.4. Within thirty (30) days after the completion of any transfer of the shares
in NewCo and/or related rights, including transfers pursuant to Article 8 above,
the transferring shareholder shall deliver to the other shareholders and to
NewCo:
- An affidavit of the transferring shareholder containing the true and
complete name and address of the party to whom the shares and/or
related rights were transferred; the price and terms and conditions
upon which the shares and/or related rights were transferred;
- An agreement of the buyer or transferee ("transferee") of the shares
whereby such transferee agrees to be bound by all the obligations
under this Agreement, duly signed by such transferee. Should the
transferee fail to execute such an agreement, the transferring
shareholder shall be obliged to guarantee, on terms
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(including financial commitments) set forth by the other
shareholder(s), that the transferee complies with the obligations
under this Agreement.
9.5. In the event that any shareholder of NewCo transfers its shares in NewCo,
and/or related rights, to a Subsidiary or to a third party, such a transfer
shall not affect, impair, or diminish the rights of AMADEUS and TI under this
Agreement, unless otherwise agreed through a written amendment to this
Agreement. The transferring shareholder shall have the responsibility to
regulate its relationship with the transferee accordingly, and shall be
responsible to the other shareholders in the event that the transferee exercises
any rights in such a manner as to affect, impair or otherwise diminish the
rights of the other shareholders under this Master Agreement.
9.6. Should any of the Parties infringe any right of first refusal of the other
Party, or the procedure set forth herein, such breaching Party shall pay to each
other Party a lump sum amounting to twice the purchase price paid by the third
party, without prejudice to the rights of the non-breaching Party to claim for
damages under Spanish Law.
Article 10. - Budget
10.1. Within sixty (60) days of execution of this Agreement, the Parties shall
negotiate, draw up and agree upon an initial Budget covering the years 1999 and
2000, which shall become an integral part of this Agreement.
10.2. By the end of November of each year, the Board of Directors of NewCo shall
approve the Budget for the following year with the majorities provided in
Article 14 below.
10.3. If during any financial period it is necessary to proceed to any activity
determining significant or material variances to the approved Budget, such
activity may be carried out only
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after specific approval by the Board of Directors to be resolved at the
conditions provided in Article 14 below.
10.4. The Parties undertake to support the implementation of the approved Budget
according to the principle of good faith and to take any action which is deemed
appropriate or necessary for such purpose.
Article 11. - Management Report and Information to the Parties
11.1. The Board of Directors of NewCo shall meet every three months to review
the data concerning the quarterly review of the Business Plan and the Budget
follow-up of NewCo, which shall be drawn up for this occasion by the General
Manager.
11.2. Furthermore, NewCo shall supply to each of the Parties comprehensive
information and data regarding the management/business trends and the economic
results of the same. The frequency and conditions at which such information is
to be supplied shall be agreed by the Parties.
Article 12. - Board of Directors of NewCo
12.1. NewCo shall be governed by a Board of Directors (the "Board of Directors"
or the "Board") which shall consist of four (4) members. TI shall have the right
to nominate two (2) members of the Board and AMADEUS shall also have the right
to nominate two (2) members. The members shall remain in office for a period of
three years, renewable upon decision by the General Meeting of Shareholders.
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12.2. If a Director of NewCo must for any reason be replaced, the Party that
nominated such director will nominate a replacement and both Parties shall cause
their shares to be voted for such replacement.
12.3. If a Party votes its shares to remove a member that it nominated, the
other Party shall also vote its shares for such removal.
12.4. The Directors shall not be remunerated for this function, unless otherwise
agreed by the Parties.
12.5. The Board, at its first meeting, shall appoint a permanent secretary who
shall not be a Board member. The permanent secretary shall act under the
direction of the Chairman. The permanent secretary shall attend every Board
meeting and shall be responsible for the drafting of the minutes of the Board,
the notice of each following Board meeting and any required filings or
registrations of decisions or resolutions taken by NewCo's governing bodies.
12.6 Should any of the Parties withdraw - for any reason - from NewCo, at the
moment of assignment of its shares, such Party shall also deliver the letters of
resignation of the Directors appointed by it. In case the letter(s) of
resignation is not delivered and it is necessary to proceed to a removal of such
Directors adopting a resolution to this end, NewCo shall be held harmless from
any and all claims, suits, recoveries or similar which the removed Directors may
file.
Article 13. - Corporate Offices. Chairman. General Manager.
13.1. The Chairman of the Board of Directors of NewCo shall be appointed for the
first year upon designation by the Board of Directors; for any subsequent year,
the principle of alternate government shall be applied. The Parties further
establish that - pursuant to the provisions
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contained in the Articles of Association, - the Chairman of the Board of
Directors shall not be entitled to any special voting rights or a casting vote.
13.2. The General Manager - as mentioned in Article 11.1. above - shall carry
out his/her activity within the framework of the decisions taken by the Board of
Directors and of the provisions of the Budget and the Business Plan. The General
Manager shall further be vested with powers of representation, but only in
connection with the activities and matters decided by the Board and included in
the registered powers of attorney.
Article 14. - Management of NewCo
14.1. The Board of Directors shall have a quorum with the participation of a
majority of the Directors in office, and it shall adopt valid resolutions with
the favourable vote of the absolute majority of the Directors attending.
14.2. Notwithstanding the above, the Parties agree that a quorum of 3 (three)
out of 4 (four) members and a resolution majority with the same proportions
shall be required for the adoption of any resolution or decision concerning the
following matters:
(a) Make any investment or expenditure in excess of EURO 75,000 for any
single investment or expenditure.
(b) Sell fixed assets with a price or value in excess of EURO 75,000.
(c) Sell any intellectual property rights.
(d) Commence or settle any major pending or threatened arbitration,
litigation or other litigated proceeding except for routine
collection matters.
(e) Enter into any contract, including borrowing and debt guarantees,
outside the normal course of business.
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(f) Enter into any contract for the licensing or transfer of technology,
or the provision of technical assistance to, or from, any third
party outside the normal course of the business.
(g) Set up the guidelines for the terms (including fee structures) on
which NewCo shall contract with persons or entities providing
services to NewCo.
(h) Approve and subsequently revise or modify the Budget and / or the
Business Plan, and any contracts entered into with related or
Affiliated parties, including those entered into with a shareholder
of NewCo.
(i) Major changes in business structure including the creation of
subsidiaries and the development of new types of products or
facilities not included in Attachment A.
(j) Acquire or absorb other entities or otherwise carry out investment
in equity securities of other companies.
(k) Proposals with respect to capital contribution, investment plans or
financing from the shareholders.
14.3 Appointment and/or removal of the General Manager and acceptance of
candidates for managerial positions proposed by the General Manager shall be
subject to unanimous decision of the Board of Directors, provided always that
all Board members shall be present or represented in the Board of Directors
meeting taking this decision.
Article 15. - Impossibility on the Part of the Board of Directors of NewCo
to Adopt Valid Resolutions
15.1. In the event the Board of Directors of NewCo is not able to adopt a
resolution for the matters requiring a qualified majority as established in
Article 14.2. above ("deadlock"), the Board shall allow for a period of 30
(thirty) days from the date of such deadlock in order to reexamine the subject
matter of the relevant resolution and to submit alternative proposals regarding
the same.
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15.2. During such period, the Board members shall review in detail the issues
and matters which have led to the non-agreement; they shall do so with the help
of NewCo managers and officers responsible for the matters mentioned in the
relevant resolution.
15.3. If at the end of such thirty-day period the situation of deadlock is still
in place (i.e. NewCo's Board is still not able to adopt a resolution with the
quorum or majorities established in Article 14.2. above), the Parties, in the
persons of their respective President and CEO, shall meet to discuss and settle
the disagreements which resulted in the deadlock within 15 (days) from the date
on which they have been asked to solve the matter.
Article 16. Deadlock
If at the end of the period as stated in Article 15.3. above, the Parties do not
reach an agreement and the deadlock situation is still in place, the Parties
commit to perform and implement all necessary actions in order to proceed with
the dissolution of NewCo. This dissolution will take place according to the
Spanish law.
Article 17. - Suspensive Condition
17.1. The Parties expressly agree and mutually acknowledge that the validity and
enforceability of this Agreement shall be subject to the occurrence of the
following conditions:
- Assessment, valuation and acceptance of the value (also with
reference to staff costs) of the contributions made by each of the
Parties to NewCo;
- Assessment, valuation and acceptance of the services and revenue
flows between each of AMADEUS and TI with NewCo, following the
guidelines and principles set forth in Attachment A.
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- Approval, to the satisfaction of the Parties, of the Budget and
Business Plan of Newco.
- Approval by the respective Board of Directors of AMADEUS and TI,
which the Parties shall make all reasonable efforts to obtain within
seventy five (75) days of signature of this Agreement.
17.2 The Parties shall work together in good faith so that all these suspensive
conditions are achieved, to their mutual satisfaction, within seventy five (75)
days of signature of this Agreement.
If no agreement has been reached on any of these matters, or no Board approval
has been obtained from either of the Parties, by October 30, 1999, the Parties
shall cease any further discussions on the matters contemplated hereby, unless
otherwise agreed, and the Parties shall return to each other any Confidential
Information of the other Party in its possession, including materials or
information derived from such Confidential Information.
Article 18. - General Meeting of Shareholders
18.1. The Parties agree at any General Meeting of Shareholders of NewCo to
exercise their voting powers in such manner that the agreements between the
Parties herein recorded are performed. Any decisions at the General Meeting of
Shareholders shall be taken in accordance with this Agreement, the Articles of
Association and the provisions of the Spanish law.
18.2. The General Meeting shall only adopt valid resolutions on the following
items if a quorum of 75% of the shares of NewCo are present or represented and
if the votes are unanimous:
(a) Dissolution or liquidation of NewCo
(b) Alterations to the Articles of Association of NewCo
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(c) Merger of NewCo or sale of all or substantially all of the assets of
NewCo
(d) Payment of dividends, if the results are below 10% of the approved
Budget results
(e) Appointment or dismissal of NewCo's auditor
(f) Relief of responsibility of each Board member and of the General
Manager.
(g) Capital increase, decrease and any transfer of shares by the
Parties, except as set forth in Section 8.1. for Subsidiaries.
18.3 If no quorum is reached as set forth in Section 18.2, the General Meeting
shall be convoked for the seventh day after the first meeting for another
meeting, where quorum will be established if 65% of the shares of NewCo are
present or represented at the meeting. Voting requirements will be the same as
in Section 18.2.
Article 19. - Confidential Nature of the Agreement
19.1. The Parties shall maintain the contents of this Agreement and any other
matter linked to the understandings reached herein strictly confidential. It is
also understood that the conditions and contents of any information given to
third parties, including press releases and other kinds of communications
delivered through other means of information to the general public, shall be
agreed between the Parties.
19.2 The Parties undertake to maintain the Confidential Information in strict
confidence, prohibiting any disclosure or unauthorised use, except to employees
and advisors on a "need-to know" basis and informing such recipients of the
confidential nature of the Confidential Information.
19.3 In any event, the Parties undertake to use the information received in a
confidential manner and only for the purposes of performance of this Agreement.
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22
19.4 The rights and obligations of the Parties with respect to confidentiality
shall survive termination of this Agreement for a period of five (5) years.
Article 20. - Duration of the Agreement - Termination
20.1. This Agreement commences upon execution, subject to the suspensive
conditions set forth in Article 17, and terminates on the earlier to occur of:
(a) the date upon which only either AMADEUS or TI hold shares; or
(b) the date upon which NewCo is liquidated.
20.2. The Parties agree and mutually acknowledge that this Agreement shall be
automatically terminated:
(a) in the event NewCo is not able to obtain - within a reasonable time
period - the authorizations which may be necessary pursuant to the
laws and regulations currently in force to carry out its business
activity as specified in this Agreement.
(b) in the event of material breach by a Party of its obligations under
this Agreement, which has not been cured by the breaching Party
within thirty (30) days of the occurrence of the event which gave
rise to the breach.
20.3 In the event of termination of this Agreement as set forth herein, the
Parties agree to vote their shares in order to dissolve and liquidate NewCo,
pursuant to the provisions and under the terms established by Law and the
Articles of Association.
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Article 21. - Entire Agreement - Binding Nature of the Agreement. - Amendments
21.1 All the Articles and Attachments are an integral and substantial part of
this Agreement. In the event of any inconsistency or conflict between the
Articles and Attachments, the Articles shall prevail.
21.2 The Parties shall implement the provisions of this Agreement also in case
the clauses contained herein are different from those of the Articles of
Association of NewCo. In the event of an inconsistency between the Articles and
this Agreement, this Agreement shall prevail to the extent of the inconsistency
and each Party agrees to take any steps, within its power, necessary to procure
that the Articles are altered to eliminate the inconsistency.
21.3 This Agreement may be amended only by means of a subsequent deed executed
by all Parties; this deed shall expressly state that it is meant as an amendment
to this Agreement.
Article 22. - Applicable Law. Rules for the Construction of the Agreement
22.1. This Agreement shall be governed by and construed in accordance with
Spanish law.
22.2 The Parties agree that in the event one or more of the clauses contained in
this Agreement become void, invalid or unenforceable, such voidness or
invalidity shall not imply the invalidity of the Agreement as a whole. In any
such case, the void, invalid or unenforceable clauses shall be deemed excluded
from this Agreement, unless the invalidity or non-effectiveness of such
clause(s) leads to an irreparable damage for one of the Parties or to an
elimination of the goal for which this Agreement has been entered into.
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The Parties agree to take all reasonable steps to replace the void, invalid or
unenforceable clause with a valid or enforceable one that as closely as possible
reflect the intent of the Parties when signing this Agreement.
Article 23. -- Notices
23.1. Any notice exchanged between the Parties with respect to this Agreement
shall be made in writing and shall be deemed validly given: (i) when sent by
registered mail or telegram or other means, upon receipt of the same; (ii) when
sent by telefax, at the moment on which the addressee confirms receipt of the
same (also by telefax); it is understood that the above notices shall be sent to
the Parties at the following addresses (or at such other addresses, telex and
telefax numbers that the Parties may indicate from time to time):
- TELEFONICA INTERACTIVA, S. A.
Xxxx Xxx, 00
Xxxxxx 00000
ATTN: Mr. Xxxx Xxxxx Xxxx de Buruaga (President)
With copy to the Legal Department
- AMADEUS GLOBAL TRAVEL DISTRIBUTION, S. A.
Xxxxxxxx xx Xxxxxxxxx, 1
Madrid 28027
ATTN: Xx. Xxxx Xxxxxxx Xxxxx (President and CEO)
With copy to the Legal Department
23.2. It is also agreed that the Parties choose address for service (for any
purpose connected with this Agreement, including service of process) at the
addresses mentioned above (or at such other address which the Parties may from
time to time indicate).
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Article 24 - Tolerance of the Parties
Any tolerance by either of the Parties of any behaviour by the other Party which
is in breach of the provisions of this Agreement shall not be deemed a waiver to
the rights deriving from the provisions breached nor to the right to claim exact
performance of all terms and conditions hereunder.
Article 25. -- Arbitration
25.1. Any matter that cannot be resolved by agreement between the Parties and
any other differences or dispute arising out of or relating to this Agreement,
including any question concerning its existence, validity, or termination, shall
be finally settled by arbitration according to the rules of the International
Chamber of Commerce of Madrid, Spain.
25.2. Appointment of arbitrators. The number of arbitrators shall be three.
25.3 Appointment of arbitrators. The arbitrators shall be appointed as follows:
Each Party shall nominate one arbitrator for confirmation by the ICC. If a Party
fails to nominate an arbitrator within the time period specified by the ICC
Rules, the ICC Court of Arbitrators shall appoint an arbitrator for that Party.
The arbitrators nominated by the Parties shall, within 21 days after their
confirmation by the ICC Court of Arbitration, agree on a third arbitrator who
shall act as the Chairman.
25.4. Language of arbitration. The language of the arbitration shall be English.
25.5. Binding nature of arbitration. The decision of the arbitrators shall be
final and conclusive and shall be binding on the Parties. Any award rendered by
the arbitrators may be enforced by any court or competent jurisdiction.
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25.6. Exclusion of the right to appeal. The Parties agree to exclude the right
of application or appeal to any court in connection with any question of law
arising in the course of the arbitration proceedings or out of the award.
25.7. Place of arbitration. The place of arbitration shall be Madrid, Spain.
25.8 The governing law shall be Spanish Law. In procedural aspects, the Parties
agree to abide by the terms of the ICC rules of procedure and, in the event of a
lack of rules in any particular instance or matter, by the provisions of the
"Ley de Enjuiciamiento Civil espanola", as amended from time to time.
25.9 Currency of award. A monetary award shall be denominated in Euros.
IN WITNESS HEREOF, the Parties have executed this Agreement in Madrid as of the
23rd of July, 1999.
TELEFONICA INTERACTIVA, S.A.
/s/ Xxxx Xxxxx Xxxx de Buruaga
----------------------------------------
Xxxx Xxxxx Xxxx de Buruaga, President
AMADEUS GLOBAL TRAVEL DISTRIBUTION, S.A.
/s/ Xxxx Xxxxxxx Xxxxx
----------------------------------------
Xxxx Xxxxxxx Xxxxx, President and CEO
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Attachment A
"Project for the Initiative"
Guideliness and Principles
Purpose.
A travel-focused website will be established with the purpose of providing news,
reports, destination information, and on-line purchase facilities for travel and
travel-related products. This website will target the Internet consumers of
residing in, or travelling to, Spain, Portugal and selected countries in Latin
America, in first instance, and eventually to the whole Spanish-and
Portuguese-speaking cultural area, which comprises around 25 countries.
The market.
Internet in the Spanish- and Portuguese-speaking cultural area.
The Spanish- and Portuguese-speaking cultural area (SPCA) comprises a population
of 550+ million, of which between 7 and 8 million were Internet subscribers
during 1998. Our Initiative assumes this figure to reach between 30 and 35
million subscribers by 2003. Likewise, not less than 4% of the SPCA's GNP will
be spent in the travel industry by 2009. Of the bookable part, not less than 10%
will be commercialized through on-line facilities. Finally, it is reckoned that
no less than a 12% market share will be captured by the Initiative at any given
year. (See detailed financial and market assumptions at the end of this
document.)
The partnership.
The Initiative between Telefonica Interactiva and Amadeus aims to combine and
integrate the respective assets in a new entity that should excel in terms of
specialized know-how (travel and related I.T.), content, and promotional
strength.
Amadeus contributes with its own excellence in the travel related know-how and
brings into this venture considerable experience in the electronic online travel
industry, with access to world-wide network of providers in the travel industry.
Given Amadeus' extensive experience in setting up online booking engines for the
Internet, it shall interact as a technology partner. This technology will enable
online users or visitors of this new venture to make online bookings. Amadeus
will provide the technology to process online transactions for air, hotel and
car. Online visitors will be able to consult travel schedules and proceed to
book their travel through secure electronic transactions powered by Amadeus.
Amadeus and its subsidiaries contributes with the following major assets:
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Master Agreement Attachment A
28
1. real time online booking engine for travel reservations (air, hotel & car)
processed through secured web servers;
2. technical expertise in setting up and developing travel related electronic
commerce sites;
3. leverage from its own call center operations for "off line" sales and
support.
Amadeus will provide the necessary technology thus enabling end users to produce
online bookings for air, hotel and car. Future product requirements needed for a
successful operation of this venture (such as the best price comparison tool)
will be incorporated on an "as needed" basis.
Fulfillment, i.e. actual ticketing and shipping of travel documents to customers
will be done through preferred "travel partners", according to the geographies.
Telefonica Interactiva and its parent, Grupo Telefonica, contribute the
following major assets:
1. the overall strength and capillarity of its own promotional capabilities
referred to the project, in the Iberian peninsula and all over Latin
America;
2. the traffic generated by its network of "multi-local" portals -- Ole, with
300K+ visits per day;
3. the traffic generated by Alta Vista-Xxxxxxxxxx portal -- 50K+ visits per
day;
4. the traffic generated by ZAZ portal/ISP in Brazil, in process of being
incorporated into Ole --190K subscribers, 1000K visits per day;
5. the traffic generated by the ISPs Teleline, Advance, TSI CTC, present in
various countries, with 200K+ subscribers and 100K+ visits per day.
In all, it is estimated that Grupo Telefonica may contribute a total capacity of
1.55 million visits per day and 8+ million page views per day (as of June 99),
growing to over 2 million visits per day and 10+ million page views per day by
the end of 1999.
The promotional activities may be extended to other online and offline media,
even if they compete with Telefonica.
Customer targeting.
The user is presented the widest range of destinations, stimulating his/her
interest. The offer is arranged in macro-areas based on the traveler's goals:
1. Business
2. Incentive
3. Holidays/vacations (families, cruises, resorts/holiday villages)
4. Young people tourism
5. Culture travels
6. Adventures
7. Sports
8. Wine and food travelling
9. Nature & environment
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Master Agreement Attachment A
29
Every section will include useful information about the best way to travel: how,
where, when, at which prices, with which operators.
An example of the user "experience": the user wants to get more information
about adventure trips (1). He/she will find stories and information about trendy
destinations, itineraries, difficulties and routes (2). Once he/she has read the
stories, he/she can switch to practical advice and information (tour operators
available, guides, books) (3). Then turns to archives (4) or goes directly to
"offers" in order to make a reservation or to buy tickets (4/5).
It is understood that the service will initially be designed to be optimal for
personal travel. The opportunity to offer "deeper" travel management services to
corporations will be investigated by the Initiative.
The website: editorial content.
The website editorial formulation must be precise in the content and in the
information/services, and winning in the graphical and iconographic layout. It
must be friendly and recognizable, innovative and trendy. It must stimulate
travelling.
The basic structure of the content is represented by the "library" to be
implemented:
1. dedicated staff may feed reports and info briefs about tourism,
supervising the production on a daily basis;
2. by ad-hoc reports/info briefs performed by editorial staff (articles,
calendars and appointments);
3. by functional links chosen by the editorial staff for exploring the web.
Content will be linked to commerce. In fact, an important statement is: anywhere
he/she is, the Internet user will be able to book and/or buy the selected trips.
In particular, he/she will be able to:
1. check availability for flights, hotels, car rentals, internal connections
and rail connections;
2. book the carriers and the facilities above mentioned;
3. book travel offered by tour operators;
4. book agencies' and tour operators' special offers;
5. access to last minute offers.
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Master Agreement Attachment A
30
The "library".
It is the repository of articles, reports, files, films, information, maps,
history, and curiosities about all countries. It goes by itself that everybody
can access to this section from any part of the website.
An example of the user "experience": the user happens to read a feature about
Jamaica (1). He/she likes the destination and suddenly starts looking for travel
opportunities to that country (2). Once he has found the "offer" (before booking
it) he/she may be willing to know something in depth about Jamaica (3). Then
switches to the library where more precise information is found; he/she is also
provided with more links and sources of information referred to the destination
(4). If this virtual experience is positive he/she can decide to turn to the
reservation system in order to buy the package.
Other ideas: calendar, special offers, last minute.
The calendar will be a repository where people can find further pieces of
information ("events"). Lots of opportunities have to be loaded into it,
arranging them after the criteria of the target. The economic potential of that
section can be achieved by creating a close and direct link between events and
opportunities of buying tickets and travel.
Special offers will count on an information window accessible and present all
over the site. It gives access to all available special offers, displayed by
"price" and "destination" criteria.
Likewise, a complete review of all available last minute offers should be
accessible as early as practicable: flights, hotels, travel packages and others
features on a "last minute" basis.
Revenue generation.
In principle the joint venture will base its revenues on the following model:
1. sale of advertising (banners, sponsorships);
2. commissions on air, hotel, car bookings;
3. travel brokerage fees from agencies/tour operators;
4. mixed formula of fees and advertising.
Timing.
In principle, the Initiative should be up and running for Spain in 1999.
Year 2000 would witness the launch of the specific websites for Portugal,
Brazil, Argentina, Mexico, Peru and Chile. The logic of this timing follows both
the presence of Telefonica's
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Master Agreement Attachment A
31
Internet activities in Latin America, and the relative size of targeted Latin
American countries -- big- and mid-sized countries first.
Sites for Venezuela and Colombia would follow in 2001.
Detailed economic projections.
The pro-forma profit and loss figures for the Initiative are shown with this
document. They assume only the countries mentioned in the previous paragraph,
with a central or "corporate" entity that enables leverage when expanding to the
next country -- and that absorbs an important part of the costs, as well as the
advertising revenues.
(The potential should be even higher when all 25 SPCA countries are taken into
account: costs would not keep pace with revenue in the mid-term, given the
synergies.)
The assumptions for the detailed economic projections are as follows:
General assumptions
1. The business case covers 11 years of the Initiative operations.
2. The "corporate" notion was used to cover certain revenues and costs that
cannot be directly associated with the activity of any specific country
but are a prerequisite for the operation of the joint initiative
envisaged. These are:
Advertising revenue
Communication cost
Product development cost
Hardware and software maintenance cost (less those directly attributable
to the country operations)
Content acquisition cost
Other Overhead Cost (less those directly attributable to the country
operations)
4. Start-up and ongoing investments have been depreciated over 4 years using
the straight-line method
5. Tax losses carried forward period: 5 years (Spanish legislation)
6. Corporation tax: 35% (Spanish legislation)
7. Collection period: 28 days
8. Payment period: 25 days
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Master Agreement Attachment A
32
Market Size/Growth/Share related assumptions
1. Bookable travel market (in (euro) million):
----------------------------------------------
Country Year 2000
----------------------------------------------
SPAIN 15.396
XXXXXX 00.000
XXXXXX 12.220
XXXXXXXXX 0.000
XXXXXXXX 0.000
XXXXX 2.037
PERU 462
----------------------------------------------
Amadeus estimates based on figures from IATA, World Travel Organisation, Xxxx
Xxxxx & Xxxxxxxx, country GDP, and population. The German market ((euro) 40
billion, 1998) has been used as a reference.
2. Bookable travel market yearly growth: 5% for Spain and Portugal and 7% for
Latin American countries (Amadeus estimate based on GDS industry
experience)
3. % of bookable travel market booked online: Amadeus estimate based on a)
population online (source: NUA internet surveys) and b) growth of online
travel sales in the US (source: Jupiter Communications- Online Travel 5
Year Outlook report)
4. Initiative market share of online sales: starting from 35% in the first
year of operation and diminishing gradually to 11.7% after ten years.
Estimate based on market shares of major US Internet travel sites in a
competitive environment, such as Expedia and Travelocity (currently
enjoying a 12% market share in the US market).
5. Average sales per reservation: (euro) 350 (Amadeus estimate based on
industry experience)
Revenues related assumptions
1. Commission revenue = JIAT gross sales x commission rate. Commission rate
starts at 6% in year 0 and diminishes gradually to 5% after five years
(Amadeus estimate based on current industry practice and forecasts)
2. CRS incentives revenue = number of segments x (euro) 1 incentive paid per
segment. Average number of segments per reservation: 2.3 (Amadeus
estimate)
3. Advertising revenue = (Page views sold x CPM) -- DoubleClick commission --
commission paid to associated sites
4. Advertising revenue is only attributable to the corporate unit.
5. Number of visits to JIAT associated sites (Telefonica estimate)
6. % of visits to JIAT: 1.3% (Telefonica estimate)
7. Average page views per visit: 5 (Telefonica estimate)
8. Capacity sold: 25% (Telefonica estimate)
9. CPM (Cost per 1000 banners): (euro) 29.3 (Telefonica experience)
10. One banner per page (Telefonica estimate)
11. DoubleClick commission: 38% (Telefonica experience)
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Master Agreement Attachment A
33
12. Associated sites commission: 20% (Telefonica estimate: of the 5 page views
per visit, 1 is to an Initiative's associated site and advertising revenue
thereof goes to that site)
Costs related assumptions
1. Fulfilment cost: (euro) 12 per reservation diminishing gradually to (euro)
5.8 after ten years (Amadeus estimate -- it covers the call centre and
ticket delivery costs)
2. Web engine cost: (euro) 3 per reservation (Amadeus estimate based on
1A-Res experience -- it covers transaction related costs and costs related
to the development of the booking tool pages)
3. Advertising cost for Spain: (euro) 200 thousand for the first year and
(euro) 750 thousand for the second year of the Initiative activity. (joint
estimate)
4. Advertising cost for all other countries: has been calculated in
proportion to the size of their travel markets in comparison with the
Spanish travel market.
5. Advertising cost yearly growth: 20%
6. Communication cost = Mb needed x yearly charge per Mb
7. Communication cost is only attributable to the 'JIAT Corporate unit'
8. Yearly charge per Mb=Telefonica experience
9. Bandwidth capacity needed for JIAT = Daily number of visits to JIAT sites
/ maximum number of simultaneous daily visits handled by 1Mb
10. Maximum number of simultaneous daily site visits handled by 1Mb = ???
(Telefonica experience)
11. Yearly HW maintenance cost: 13% of HW investment (Telefonica estimate)
12. Yearly SW maintenance cost: 15% of SW investment (Telefonica estimate)
13. Product development cost: refers to the development of new functionalities
and is only attributable to the 'JIAT Corporate unit'. It amounts to
(euro) 200 thousand in the second year of the JIAT operation and grows at
a 5% yearly rate (Amadeus estimate)
14. Content acquisition cost: it is only attributable to the 'JIAT Corporate
unit'. It amounts to 33% of the gross advertising revenue, i.e.
advertising revenue is split between JIAT and the content provider.
(Amadeus estimate based on Preview Travel experience)
15. Other overhead cost: it is mainly attributable to the 'JIAT Corporate
unit'. It covers personnel related costs, i.e. salaries and office
facilities and equipment excluding HW and SW. (joint estimate)
16. Average salary for the 'corporate unit' and Spain = (euro) 53 thousand a
year that grows at a 5% yearly rate. The figure includes salary, travel,
recruitment, fringe benefits and social security costs. Average salary for
the other countries stands at (euro) 50 thousand and grows at a yearly 2%
rate. (joint estimate)
17. Average cost per employee for office facilities and equipment stands at
(euro) 10 thousand a year. (joint estimate)
18. Personnel requirements for 'corporate unit' at start-up (joint estimate):
1 general manager
1 secretary
1 commercial manager
1 functionality manager
1 webmaster
2 editors
1 junior employee
Total: 8
The total gradually increases to 14 employees after nine years
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Master Agreement Attachment A
34
Personnel requirements for the countries at start-up (joint estimate):
1 distribution manager (travel expert)
1 administrative staff
Total: 2
The total gradually increases to 4 employees after six years
19. Investment in HW: it is mainly attributable to the 'JIAT Corporate unit'.
At a country level, we have assumed a (euro) 3 thousand investment per
employee, depreciated over four years. For the 'JIAT Corporate unit' there
is an initial HW investment of (euro) 116 K and two additional HW
investments of (euro) 168 K (during the 5th and 9th years of operation).
HW refers to PCs, printers and servers. (joint estimate)
20. Investment in SW: only attributable to the 'JIAT Corporate unit'. It
amounts to (euro) 500 thousand in year 1 with an additional input of
(euro) 78 thousand during the 5th year of operations. It includes 1 Ares
((euro) 66 K), start-up and side development costs ((euro) 115 K) and
(euro) 319 K in other SW costs, e.g. Oracle. (joint estimate)
21. Other investment: amounts to (euro) 12 K every five years for the
countries and to (euro) 8 K every five years for the 'JIAT Corporate
unit'. (joint estimate)
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Master Agreement Attachment A
35
Spain
-------------------------------------------------------------------------------------------------------------------
Income Statement
('000 Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Commission 57 260 777 1,718 3,107 4,511 5,949 8,235 11,353 15,933 21,530
CRS Incentives 5 25 80 184 348 528 727 1,052 1,515 2,126 2,873
Advertising 0 0 0 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Total Revenues 63 285 857 1,902 3,454 5,039 6,677 9,287 12,868 18,058 24,403
-------------------------------------------------------------------------------------------------------------------
Fulfillment 28 124 359 772 1,357 1,915 2,454 3,301 4,423 5,772 7,254
Web Engine 9 42 130 300 567 860 1,185 1,715 2,470 3,466 4,684
Maintenance 0 0 0 0 0 0 0 0 0 0 0
Communications 0 0 0 0 0 0 0 0 0 0 0
Product Development n.a. 0 0 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 37 166 490 1,072 1,924 2,776 3,640 5,016 6,893 9,239 11,939
-------------------------------------------------------------------------------------------------------------------
Gross Margin 25 120 367 829 1,530 2,263 3,036 4,270 5,975 8,819 12,464
Content Acquisition 0 0 0 0 0 0 0 0 0 0 0
Advertising 200 750 900 1,080 1,296 1,555 1,866 2,239 2,687 3,225 3,870
Other Over Head Cost 60 125 130 136 142 148 154 161 168 175 183
-------------------------------------------------------------------------------------------------------------------
Total Cost 260 875 1,030 1,216 1,438 1,703 2,020 2,400 2,855 3,400 4,053
-------------------------------------------------------------------------------------------------------------------
EBITDA (235) (755) (663) (387) 92 560 1,016 1,870 3,120 5,419 8,412
Depreciation
Investments 18 0 0 0 18 0 0 0 18 0 0
-------------------------------------------------------------------------------------------------------------------
36
Spain
-------------------------------------------------------------------------------------------------------------------------------
Hypothesis 1999 2000 2001 2002 2003 2004
--------------------------- --------- ---------- ---------- ---------- ----------- ----------
Market ('000 Euros)
Travel Market Growth n.a. 5.0% 5.0% 5.0% 5.0% 5.0%
Total Travel Market 2,932,600 15,396,150 16,165,958 16,974,255 17,822,968 18,714,117
On-line Share Growth n.a. 250.0% 175.0% 125.0% 70.0% 50.0%
On-line Share % 0.1% 0.1% 0.3% 0.8% 1.7% 2.9%
On-line Travel Market 2,346 12,317 45,265 130,702 308,783 551,178
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6%
JIAT Gross Sales 821 3,880 12,120 27,996 52,913 80,282
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350
Number of Reservations 2,346 11,085 34,627 79,989 151,180 229,378
Reservations Growth n.a. 373% 212% 131% 89% 52%
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% -4.3%
Commission 7.0% 6.7% 6.4% 6.1% 5.9% 5.6%
Commission Revenue 57 260 777 1,718 3,107 4,511
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 5 25 80 184 348 528
No of Visits to JIAT Sites Growth Rate n.a. n.a. 100% 75% 50% 50%
No of Visits to JIAT Associated Sites ('000) 0 0 0 0 0 0
% of Visits to JIAT 1.3% 1.3% 1.3% 1.3% 1.3% 1.3%
Visits to JIAT ('000) 0 0 0 0 0 0
Average Page Views x Visit 5.0 5.0 5.0 5.0 5.0 5.0
JIAT Page Views ('000) 0 0 0 0 0 0
Capacity Sold 25% 25% 25% 25% 25% 25%
Page Views Sold ('000) 0 0 0 0 0 0
CPM (Euros) 29.3 29.3 29.3 29.3 29.3 29.3
Advertising Revenues 0 0 0 0 0 0
DoubleClick Commission 38% 38% 38% 38% 38% 38%
Gross Revenues 0 0 0 0 0 0
Associated Sites Commission 20% 20% 20% 20% 20% 20%
Net Revenues 0 0 0 0 0 0
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 12.0 11.2 10.4 9.7 9.0 8.3
Fulfillment Cost 28 124 359 772 1,357 1,915
Web Engine Cost Growth x PNR Created n.a. 0% 0% 0% 0% 0%
Web Engine Cost x PNR Created (Euros) 3.0 3.0 3.0 3.0 3.0 3.0
Reservations / PNR created 0.8 0.8 0.8 0.8 0.8 0.8
Web Engine Cost 9 42 130 300 567 860
Advertising Cost Growth n.a. n.a. 20% 20% 20% 20%
Advertising Cost 200 750 900 1,080 1,296 1,555
% of Simultaneous Visits 1% 1% 1% 1% 1% 1%
Band Width x Visit 2.5 2.5 2.5 2.5 2.5 2.5
One Day Visits x Mb 40,960 40,960 40,960 40,960 40,960 40,960
MB Needed 0 0 0 0 0 0
Precio x Mb (yr) 61 61 61 61 61 61
Communication Cost 0 0 0 0 0 0
% Over SW Investment 15% 15% 15% 15% 15% 15%
SW Maintenance Cost 0 0 0 0 0 0
% Over HW Investment 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0 0 0
Total Maintenance Cost 0 0 0 0 0 0
Product Development Cost Growth n.a. n.a. 5% 5% 5% 5%
Product Development (New Functionality) n.a. 0 0 0 0 0
% Advertising Revenues n.a. n.a. 33% 33% 33% 33%
Content Acquisition Cost 0 0 0 0 0 0
Human Resources 2 2 2 2 2 2
Average Salary Growth n.a. 5% 5% 5% 5% 5%
Average Salary 20 53 55 58 61 64
Associated Costs (Equipment, etc.) 10 10 10 10 10 10
Other Over Head Cost 60 125 130 136 142 148
Investments ('000 Euros) 18 0 0 0 18 0
HW 6 6
SW
Other 12 12
-------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Hypothesis 2005 2006 2007 2008 2009
--------------------------- ---------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth 5.0% 5.0% 5.0% 5.0% 5.0%
Total Travel Market 19,649,822 20,632,313 21,663,929 22,747,126 23,884,482
On-line Share Growth 45.0% 40.0% 35.0% 30.0% 25.0%
On-line Share % 4.4% 6.4% 9.0% 12.1% 15.7%
On-line Travel Market 868,105 1,321,689 1,942,883 2,754,037 3,759,260
Market Share Growth -12.5% -5.0% -2.0% -1.0% -1.0%
JIAT Market Share 12.7% 12.1% 11.9% 11.7% 11.6%
JIAT Gross Sales 110,639 160,026 230,533 323,512 437,179
Average Sale x Reservation Growth 0% 0% 0% 0% 0
Average Sale x Reservation (Euros) 350 350 350 350 350
Number of Reservations 316,112 457,216 658,665 924,321 1,249,082
Reservations Growth 38% 45% 44% 40% 35%
Revenues ('000 Euros)
Commission Growth -4.3% -4.3% -4.3% 0% 0%
Commission 5.4% 5.1% 4.9% 4.9% 4.9%
Commission Revenue 5,949 8,235 11,353 15,933 21,530
Segment x Reservation 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0
CRS Incentives 727 1,052 1,515 2,126 2,873
No of Visits to JIAT Sites Growth Rate 35% 28% 24% 20% 15%
No of Visits to JIAT Associated Sites ('000) 0 0 0 0 0
% of Visits to JIAT 1.3% 1.3% 1.3% 1.3% 1.3%
Visits to JIAT ('000) 0 0 0 0 0
Average Page Views x Visit 5.0 5.0 5.0 5.0 5.0
JIAT Page Views ('000) 0 0 0 0 0
Capacity Sold 25% 25% 25% 25% 25%
Page Views Sold ('000) 0 0 0 0 0
CPM (Euros) 29.3 29.3 29.3 29.3 29.3
Advertising Revenues 0 0 0 0 0
DoubleClick Commission 38% 38% 38% 38% 38%
Gross Revenues 0 0 0 0 0
Associated Sites Commission 20% 20% 20% 20% 20%
Net Revenues 0 0 0 0 0
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.8 7.2 6.7 6.2 5.8
Fulfillment Cost 2,454 3,301 4,423 5,772 7,254
Web Engine Cost Growth x PNR Created 0% 0% 0% 0% 0%
Web Engine Cost x PNR Created (Euros) 3.0 3.0 3.0 3.0 3.0
Reservations / PNR created 0.8 0.8 0.8 0.8 0.8
Web Engine Cost 1,185 1,715 2,470 3,466 4,684
Advertising Cost Growth 20% 20% 20% 20% 20%
Advertising Cost 1,866 2,239 2,687 3,225 3,870
% of Simultaneous Visits 1% 1% 1% 1% 1%
Band Width x Visit 2.5 2.5 2.5 2.5 2.5
One Day Visits x Mb 40,960 40,960 40,960 40,960 40,960
MB Needed 0 0 0 0 0
Precio x Mb (yr) 61 61 61 61 61
Communication Cost 0 0 0 0 0
% Over SW Investment 15% 15% 15% 15% 15%
SW Maintenance Cost 0 0 0 0 0
% Over HW Investment 8% 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0 0
Total Maintenance Cost 0 0 0 0 0
Product Development Cost Growth 5% 5% 5% 5% 5%
Product Development (New Functionality) 0 0 0 0 0
% Advertising Revenues 33% 33% 33% 33% 33%
Content Acquisition Cost 0 0 0 0 0
Human Resources 2 2 2 2 2
Average Salary Growth 5% 5% 5% 5% 5%
Average Salary 67 70 74 78 81
Associated Costs (Equipment, etc.) 10 10 10 10 10
Other Over Head Cost 154 161 168 175 183
Investments ('000 Euros) 0 0 18 0 0
HW 6
SW
Other 12
----------------------------------------------------------------------------------------------------------------
37
Portugal
-------------------------------------------------------------------------------------------------------------------
Income Statement
(Miles de Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Commission 65 205 481 870 1,188 1,522 1,941 2,594 3,448 4,660
CRS Incentives 6 20 49 93 133 178 237 331 460 622
-------------------------------------------------------------------------------------------------------------------
Total Revenues 71 225 530 963 1,321 1,700 2,178 2,925 3,909 5,282
-------------------------------------------------------------------------------------------------------------------
Fulfillment 32 97 222 391 519 646 801 1,040 1,343 1,688
Web Engine 8 25 58 104 141 180 227 302 398 511
Maintenance 25 25 25 25 25 25 25 25 25 25
-------------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 65 148 306 520 686 851 1,054 1,367 1,767 2,225
-------------------------------------------------------------------------------------------------------------------
Gross Margin 6 77 224 442 635 849 1,125 1,558 2,142 3,057
Advertising 161 193 231 278 333 400 480 576 691 829
Other Over Head Cost 60 61 62 64 65 66 68 69 70 72
-------------------------------------------------------------------------------------------------------------------
Total Cost 221 254 294 341 398 466 547 645 761 901
-------------------------------------------------------------------------------------------------------------------
EBITDA (215) (177) (00) 000 000 000 000 000 0,380 2,156
Depreciation
Investments 0 18 0 0 18 0 0 0 18 0 0
-------------------------------------------------------------------------------------------------------------------
38
Portugal
------------------------------------------------------------------------------------------------------------------------------------
Hypothesis 2000 2001 2002 2003 2004 2005 2006
------------------------------------- ---- --------- --------- --------- --------- --------- --------- ---------
Market ('000 Euros)
Travel Market Growth n.a. 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Total Travel Market 3,299,000 3,463,950 3,637,148 3,819,005 4,009,955 4,210,453 4,420,976
On-line Share Growth n.a 250.0% 175.0% 125.0% 70.0% 50.0% 45.0% 40.0%
On-line Share % 0.1% 0.3% 0.8% 1.7% 2.9% 4.4% 6.4%
On-line Travel Market 2,639 9,699 28,006 66,164 118,103 186,013 283,204
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0% -12.5%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6% 12.7%
JIAT Gross Sales 924 3,055 7,499 14,172 20,238 27,094 36,094
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350 350
Number of Reservations 2,639 8,729 21,425 40,493 57,823 77,411 103,126
Reservations Growth 7 231% 145% 89% 43% 34% 33%
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% -4.3% -4.3%
Commission 7.0% 6.7% 6.4% 6.1% 5.9% 5.6% 5.4%
Commission Revenue 65 205 481 870 1,188 1,522 1,941
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 6 20 49 93 133 178 237
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 12.0 11.2 10.4 9.7 9.0 8.3 7.8
Fulfillment Cost 32 97 222 391 519 646 801
Web Engine Cost Growth x Reservations n.a. -5.0% -5.0% -5.0% -5.0% -5.0% -5.0%
Web Engine Cost x Reservations (Euros) 3.0 2.9 2.7 2.6 2.4 2.3 2.2
Web Engine Cost 8 25 58 104 141 180 227
Referred to Spanish Costs
Advertising Cost 161 193 231 278 333 400 480
SW Maintenance Cost 25 25 25 25 25 25 25
% Over HW Investment 8% 8% 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0 0 0 0
Total Maintenance Cost 25 25 25 25 25 25 25
Human Resources 1 1 1 1 1 1 1
Average Salary Growth n.a. 2% 2% 2% 2% 2% 2%
Average Salary 50 51 52 53 54 55 56
Associated Costs (Equipment, etc.) 10 10 10 11 11 11 11
Other Over Head Cost 60 61 62 64 65 66 68
Investments ('000 Euros) 18 0 0 18 0 0 0
HW 6 6
SW
Other 12 12
------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------
Hypothesis 2007 2008 2009
------------------------------------- --------- --------- ---------
Market ('000) Euros
Travel Market Growth 5.0% 5.0% 5.0%
Total Travel Market 4,642,024 4,874,126 5,117,832
On-line Share Growth 35.0% 30.0% 25.0%
On-line Share % 9.0% 12.1% 15.7%
On-line Travel Market 416,310 590,119 805,513
Market Share Growth -5.0% -2.0% -1.0%
JIAT Market Share 12.1% 11.9% 11.7%
JIAT Gross Sales 50,405 70,021 94,622
Average Sale x Reservation Growth 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350
Number of Reservations 144,015 200,059 270,350
Reservations Growth 40% 39% 35%
Revenues ('000 Euros)
Commission Growth -4.3% -4.3% 0%
Commission 5.1% 4.9% 4.9%
Commission Revenue 2,594 3,448 4,660
Segment x Reservation 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0
CRS Incentives 331 460 622
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.2 6.7 6.2
Fulfillment Cost 1,040 1,343 1,688
Web Engine Cost Growth x Reservations -5.0% -5.0% -5.0%
Web Engine Cost x Reservations (Euros) 2.1 2.0 1.9
Web Engine Cost 302 398 511
Referred to Spanish Costs
Advertising Cost 576 691 829
SW Maintenance Cost 25 25 25
% Over HW Investment 8% 8% 8%
HW Maintenance Cost 0 0 0
Total Maintenance Cost 25 25 25
Human Resources 1 1 1
Average Salary Growth 2% 2% 2%
Average Salary 57 59 60
Associated Costs (Equipment, etc.) 11 12 12
Other Over Head Cost 69 70 72
Investments ('000 Euros) 18 0 0
HW 6
SW
Other 12
--------------------------------------------------------------------------
39
Brazil
-------------------------------------------------------------------------------------------------------------------
Income Statement
('OOO Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Commission 205 662 1,585 2,921 4,068 5,312 6,901 9,398 12,732 17,533
CRS Incentives 19 65 162 313 455 621 843 1,200 1,699 2,340
-------------------------------------------------------------------------------------------------------------------
Total Revenues 225 727 1,747 3,234 4,524 5,933 7,744 10,598 14,431 19,873
-------------------------------------------------------------------------------------------------------------------
Fulfillment 101 315 733 1,313 1,777 2,255 2,847 3,768 4,960 6,352
Web Engine 25 80 191 350 484 627 809 1,093 1,470 1,923
Maintenance 25 25 25 25 25 25 25 25 25 25
-------------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 151 421 950 1,689 2,286 2,907 3,681 4,886 6,456 8,301
-------------------------------------------------------------------------------------------------------------------
Gross Margin 73 306 798 1,546 2,237 3,026 4,063 5,712 7,976 11,572
Advertising 510 624 763 933 1,141 1,395 1,706 2,086 2,551 3,120
Other Over Head Cost 120 122 125 127 130 132 135 138 141 143
-------------------------------------------------------------------------------------------------------------------
Total Cost 630 746 888 1,060 1,271 1,528 1,841 2,224 2,692 3,263
-------------------------------------------------------------------------------------------------------------------
EBITDA (557) (440) (00) 000 000 0,498 2,222 3,488 5,284 8,309
Depreciation
Investments 0 18 0 0 18 0 0 0 18 0 0
-------------------------------------------------------------------------------------------------------------------
40
Brazil
------------------------------------------------------------------------------------------------------------------------------------
Hypothesis 2000 2001 2002 2003 2004 2005
--------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth n.a. 7.0% 7.0% 7.0% 7.0% 7.0%
Total Travel Market 10,474,000 11,207,180 11,991,683 12,831,100 13,729,277 14,690,327
On-line Share Growth n.a. 250.0% 175.0% 125.0% 70.0% 50.0% 45.0%
On-line Share % 0.1% 0.3% 0.8% 1.7% 2.9% 4.4%
On-line Travel Market 8,379 31,380 92,336 222,299 404,362 649,000
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6%
JIAT Gross Sales 2,933 9,885 24,723 47,616 69,291 94,531
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350
Number of Reservations 8,379 28,242 70,637 136,047 197,975 270,088
Reservations Growth 7 237% 150% 93% 46% 36%
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% -4.3%
Commission 7.0% 6.7% 6.4% 6.1% 5.9% 5.6%
Commission Revenue 205 662 1,585 2,921 4,068 5,312
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 19 65 162 313 455 621
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 12.0 11.2 10.4 9.7 9.0 8.3
Fulfillment Cost 101 315 733 1,313 1,777 2,255
Web Engine Cost Growth x Reservations n.a. -5% -5% -5% -5% -5%
Web Engine Cost x Reservations (Euros) 3.0 2.9 2.7 2.6 2.4 2.3
Web Engine Cost 25 80 191 350 484 627
Referred to Spanish Costs
Advertising Cost 510 624 763 933 1,141 1,395
SW Maintenance Cost 25 25 25 25 25 25
% Over HW Investment 8% 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0 0 0
Total Maintenance Cost 25 25 25 25 25 25
Human Resources 2 2 2 2 2 2
Average Salary Growth n.a. 2% 2% 2% 2% 2%
Average Salary 50 51 52 53 54 55
Associated Costs (Equipment, etc.) 10 10 10 11 11 11
Other Over Head Cost 120 122 125 127 130 132
Investments ('000 Euros) 18 0 0 18 0 0
HW 6 6
SW
Other 12 12
------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Hypothesis 2006 2007 2008 2009
--------------------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth 7.0% 7.0% 7.0% 7.0%
Total Travel Market 15,718,650 16,818,955 17,996,282 19,256,022
On-line Share Growth 40.0% 35.0% 30.0% 25.0%
On-line Share % 6.4% 9.0% 12.1% 15.7%
On-line Travel Market 1,006,924 1,508,372 2,178,843 3,030,771
Market Share Growth -12.5% -5.0% -2.0% -1.0%
JIAT Market Share 12.7% 12.1% 11.9% 11.7%
JIAT Gross Sales 128,331 182,628 258,531 356,020
Average Sale x Reservation Growth 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350
Number of Reservations 366,661 521,796 738,659 1,017,200
Reservations Growth 36% 42% 42% 38%
Revenues ('000 Euros)
Commission Growth -4.3% -4.3% -4.3% 0%
Commission 5.4% 5.1% 4.9% 4.9%
Commission Revenue 6,901 9,398 12,732 17,533
Segment x Reservation 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0
CRS Incentives 843 1,200 1,699 2,340
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.8 7.2 6.7 6.2
Fulfillment Cost 2,847 3,768 4,960 6,352
Web Engine Cost Growth x Reservations -5% -5% -5% -5%
Web Engine Cost x Reservations (Euros) 2.2 2.1 2.0 1.9
Web Engine Cost 809 1,093 1,470 1,923
Referred to Spanish Costs
Advertising Cost 1,706 2,086 2,551 3,120
SW Maintenance Cost 25 25 25 25
% Over HW Investment 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0
Total Maintenance Cost 25 25 25 25
Human Resources 2 2 2 2
Average Salary Growth 2% 2% 2% 2%
Average Salary 56 57 59 60
Associated Costs (Equipment, etc.) 11 11 12 12
Other Over Head Cost 135 138 141 143
Investments ('000 Euros) 0 18 0 0
HW 6
SW
Other 12
--------------------------------------------------------------------------------------------
41
'
Argentina
-------------------------------------------------------------------------------------------------------------------
Income Statement
(Miles de Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Commission 148 478 1,145 2,110 2,938 3,836 4,984 6,788 9,196 12,664
CRS Incentives 14 47 117 226 329 449 609 867 1,227 1,690
-------------------------------------------------------------------------------------------------------------------
Total Revenues 162 525 1,262 2,336 3,267 4,285 5,593 7,655 10,423 14,354
-------------------------------------------------------------------------------------------------------------------
Fulfillment 73 228 530 948 1,284 1,629 2,056 2,721 3,582 4,588
Web Engine 18 58 138 253 349 453 584 790 1,062 1,389
Maintenance 25 25 25 25 25 25 25 25 25 25
-------------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 116 311 693 1,227 1,658 2,107 2,666 3,536 4,670 6,003
-------------------------------------------------------------------------------------------------------------------
Gross Margin 46 214 569 1,109 1,609 2,178 2,928 4,119 5,753 8,351
Advertising 369 451 551 674 824 1,008 1,232 1,507 1,843 2,253
Other Over Head Cost 120 122 125 127 130 132 135 138 141 143
-------------------------------------------------------------------------------------------------------------------
Total Cost 489 573 676 801 954 1,140 1,367 1,645 1,983 2,397
-------------------------------------------------------------------------------------------------------------------
EBITDA (443) (359) (000) 000 000 0,038 1,560 2,474 3,770 5,954
Depreciation
Investments 0 18 0 0 18 0 0 0 18 0 0
-------------------------------------------------------------------------------------------------------------------
00
Xxxxxxxxx
------------------------------------------------------------------------------------------------------------------------------------
Hypothesis 1999 2000 2001 2002 2003 2004 2005
--------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth n.a. 7.0% 7.0% 7.0% 7.0% 7.0%
Total Travel Market 7,565,000 8,094,550 8,661,169 9,267,450 9,916,172 10,610,304
On-line Share Growth n.a. 250.0% 175.0% 125.0% 70.0% 50.0% 45.0%
On-line Share % 0.1% 0.3% 0.8% 1.7% 2.9% 4.4%
On-line Travel Market 6,052 22,665 66,691 160,559 292,056 468,750
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6%
JIAT Gross Sales 2,118 7,139 17,857 34,392 50,047 68,276
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350
Number of Reservations 6,052 20,398 51,019 98,262 142,991 195,075
Reservations Growth 7 237% 150% 93% 46% 36%
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% -4.3%
Commission 7.0% 6.7% 6.4% 6.1% 5.9% 5.6%
Commission Revenue 148 478 1,145 2,110 2,938 3,836
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 14 47 117 226 329 449
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 12.0 11.2 10.4 9.7 9.0 8.3
Fulfillment Cost 73 228 530 948 1,284 1,629
Web Engine Cost Growth x Reservation n.a. -5% -5% -5% -5% -5%
Web Engine Cost x Reservation (Euros) 3.0 2.9 2.7 2.6 2.4 2.3
Web Engine Cost 18 58 138 253 349 453
Referred to Spanish Costs
Advertising Cost 369 451 551 674 824 1,008
SW Maintenance Cost 25 25 25 25 25 25
% Over HW Investment 8% 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0 0 0
Total Maintenance Cost 25 25 25 25 25 25
Human Resources 2 2 2 2 2 2
Average Salary Growth n.a. 2% 2% 2% 2% 2%
Average Salary 50 51 52 53 54 55
Associated Costs (Equipment, etc.) 10 10 10 11 11 11
Other Over Head Cost 120 122 125 127 130 132
Investments ('000 Euros) 18 0 0 18 0 0
HW 6 6
SW
Other 12 12
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Hypothesis 2006 2007 2008 2009
--------------------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth 7.0% 7.0% 7.0% 7.0%
Total Travel Market 11,353,025 12,147,737 12,998,078 13,907,944
On-line Share Growth 40.0% 35.0% 30.0% 25.0%
On-line Share % 6.4% 9.0% 12.1% 15.7%
On-line Travel Market 727,266 1,089,444 1,573,702 2,189,019
Market Share Growth -12.5% -5.0% -2.0% -1.0%
JIAT Market Share 12.7% 12.1% 11.9% 11.7%
JIAT Gross Sales 92,689 131,906 186,728 257,141
Average Sale x Reservation Growth 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350
Number of Reservations 264,826 376,875 533,507 734,688
Reservations Growth 36% 42% 42% 38%
Revenues ('000 Euros)
Commission Growth -4.3% -4.3% -4.3% 0%
Commission 5.4% 5.1% 4.9% 4.9%
Commission Revenue 4,984 6,788 9,196 12,664
Segment x Reservation 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0
CRS Incentives 609 867 1,227 1,690
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.8 7.2 6.7 6.2
Fulfillment Cost 2,056 2,721 3,582 4,588
Web Engine Cost Growth x Reservation -5% -5% -5% -5%
Web Engine Cost x Reservation (Euros) 2.2 2.1 2.0 1.9
Web Engine Cost 584 790 1,062 1,389
Referred to Spanish Costs
Advertising Cost 1,232 1,507 1,843 2,253
SW Maintenance Cost 25 25 25 25
% Over HW Investment 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0
Total Maintenance Cost 25 25 25 25
Human Resources 2 2 2 2
Average Salary Growth 2% 2% 2% 2%
Average Salary 56 57 59 60
Associated Costs (Equipment, etc.) 11 11 12 12
Other Over Head Cost 135 138 141 143
Investments ('000 Euros) 0 18 0 0
HW 6
SW
Other 12
------------------------------------------------------------------------------------------
43
Mexico
---------------------------------------------------------------------------------------------------------------------
Income Statement
(Miles de Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Commission 240 773 1,849 3,408 4,747 6,197 8,051 10,965 14,855 20,456
CRS Incentives 22 76 190 365 531 725 984 1,400 1,982 2,730
---------------------------------------------------------------------------------------------------------------------
Total Revenues 262 848 2,039 3,773 5,278 6,922 9,035 12,365 16,837 23,186
---------------------------------------------------------------------------------------------------------------------
Fulfillment 117 368 855 1,532 2,073 2,631 3,321 4,396 5,787 7,411
Web Engine 29 94 223 408 564 731 943 1,275 1,715 2,244
Maintenance 25 25 25 25 25 25 25 25 25 25
---------------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 172 487 1,104 1,966 2,663 3,388 4,290 5,696 7,528 9,681
---------------------------------------------------------------------------------------------------------------------
Gross Margin 90 361 935 1,808 2,615 3,534 4,745 6,669 9,309 13,505
Advertising 595 728 890 1,089 1,331 1,628 1,991 2,434 2,977 3,640
Other Over Head Cost 120 122 125 127 130 132 135 138 141 143
---------------------------------------------------------------------------------------------------------------------
Total Cost 715 850 1,015 1,216 1,461 1,760 2,126 2,572 3,117 3,783
---------------------------------------------------------------------------------------------------------------------
EBITDA (625) (489) (80) 592 1,154 1,774 2,619 4,097 6,192 9,722
Depreciation
Investments 0 18 0 0 18 0 0 0 18 0 0
---------------------------------------------------------------------------------------------------------------------
44
Mexico
------------------------------------------------------------------------------------------------------------------------------------
Hypothesis 1999 2000 2001 2002 2003 2004 2005
--------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth n.a. 7.0% 7.0% 7.0% 7.0% 7.0%
Total Travel Market 12,220,000 13,075,400 13,990,678 14,970,025 16,017,927 17,139,182
On-line Share Growth n.a. 250.0% 175.0% 125.0% 70.0% 50.0% 45.0%
On-line Share % 0.1% 0.3% 0.8% 1.7% 2.9% 4.4%
On-line Travel Market 9,776 36,611 107,728 259,356 471,768 757,188
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6%
JIAT Gross Sales 3,422 11,533 28,844 55,554 80,842 110,289
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350
Number of Reservations 9,776 32,950 82,412 158,726 230,978 315,111
Reservations Growth 7 237% 150% 93% 46% 36%
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% -4.3%
Commission 7.0% 6.7% 6.4% 6.1% 5.9% 5.6%
Commission Revenue 240 773 1,849 3,408 4,747 6,197
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 22 76 190 365 531 725
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 12.0 11.2 10.4 9.7 9.0 8.3
Fulfillment Cost 117 368 855 1,532 2,073 2,631
Web Engine Cost Growth x Reservation n.a. -5% 5% -5% -5% -5%
Web Engine Cost x Reservation (Euros) 3.0 2.9 2.7 2.6 2.4 2.3
Web Engine Cost 29 94 223 408 564 731
Referred to Spanish Costs
Advertising Cost 595 728 890 1,089 1,331 1,628
SW Maintenance Cost 25 25 25 25 25 25
% Over HW Investment 8% 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0 0 0
Total Maintenance Cost 25 25 25 25 25 25
Human Resources 2 2 2 2 2 2
Average Salary Growth n.a. 2% 2% 2% 2% 2%
Average Salary 50 51 52 53 54 55
Associated Costs (Equipment, etc.) 10 10 10 11 11 11
Other Over Head Cost 120 122 125 127 130 132
Investments ('000 Euros) 18 0 0 18 0 0
HW 6 6
SW
Other 12 12
----------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Hypothesis 2006 2007 2008 2009
--------------------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth 7.0% 7.0% 7.0% 7.0%
Total Travel Market 18,338,925 19,622,650 20,996,235 22,465,972
On-line Share Growth 40.0% 35.0% 30.0% 25.0%
On-line Share % 6.4% 9.0% 12.1% 15.7%
On-line Travel Market 1,174,777 1,759,815 2,542,053 3,535,996
Market Share Growth -12.5% -5.0% -2.0% -1.0%
JIAT Market Share 12.7% 12.1% 11.9% 11.7%
JIAT Gross Sales 149,724 213,072 301,627 415,368
Average Sale x Reservation Growth 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350
Number of Reservations 427,783 608,778 861,793 1,186,766
Reservations Growth 36% 42% 42% 38%
Revenues ('000 Euros)
Commission Growth -4.3% -4.3% -4.3% 0%
Commission 5.4% 5.1% 4.9% 4.9%
Commission Revenue 8,051 10,965 14,855 20,456
Segment x Reservation 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0
CRS Incentives 984 1,400 1,982 2,730
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.8 7.2 6.7 6.2
Fulfillment Cost 3,321 4,396 5,787 7,411
Web Engine Cost Growth x Reservation -5% -5% -5% -5%
Web Engine Cost x Reservation (Euros) 2.2 2.1 2.0 1.9
Web Engine Cost 943 1,275 1,715 2,244
Referred to Spanish Costs
Advertising Cost 1,991 2,434 2,977 3,640
SW Maintenance Cost 25 25 25 25
% Over HW Investment 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0
Total Maintenance Cost 25 25 25 25
Human Resources 2 2 2 2
Average Salary Growth 2% 2% 2% 2%
Average Salary 56 57 59 60
Associated Costs (Equipment, etc.) 11 11 12 12
Other Over Head Cost 135 138 141 143
Investments ('000 Euros) 0 18 0 0
HW 6
SW
Other 12
--------------------------------------------------------------------------------------------
00
Xxxxx
----------------------------------------------------------------------------------------------------------------
Income Statement
(Miles de Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Commission 40 129 308 568 791 1,033 1,342 1,828 2,476 3,410
CRS Incentives 4 13 32 61 89 121 164 233 330 455
----------------------------------------------------------------------------------------------------------------
Total Revenues 44 141 340 629 880 1,154 1,506 2,061 2,807 3,865
----------------------------------------------------------------------------------------------------------------
Fulfillment 20 61 143 255 346 439 554 733 965 1,235
Web Engine 5 16 37 68 94 122 157 213 286 374
Maintenance 25 25 25 25 25 25 25 25 25 25
----------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 50 102 205 349 465 586 736 971 1,276 1,635
----------------------------------------------------------------------------------------------------------------
Gross Margin (6) 39 135 280 415 568 770 1,090 1,531 2,230
Advertising 99 121 148 181 222 271 332 406 496 607
Other Over Head Cost 0 0 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------------------------
Total Cost 99 121 148 181 222 271 332 406 496 607
----------------------------------------------------------------------------------------------------------------
EBITDA (105) (82) (00) 00 000 000 000 000 0,034 1,623
Depreciation
Investments 0 18 0 0 18 0 0 0 18 0 0
----------------------------------------------------------------------------------------------------------------
00
Xxxxx
------------------------------------------------------------------------------------------------------------------------------------
Hypothesis 1999 2000 2001 2002 2003 2004 2005
--------------------- --------- ---------- ---------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth n.a. 7.0% 7.0% 7.0% 7.0% 7.0%
Total Travel Market 2,037,000 2,179,590 2,332,161 2,495,413 2,670,091 2,856,998
On-line Share Growth n.a. 250.0% 175.0% 125.0% 70.0% 50.0% 45.0%
On-line Share % 0.1% 0.3% 0.8% 1.7% 2.9% 4.4%
On-line Travel Market 1,630 6,103 17,958 43,233 78,641 126,219
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6%
JIAT Gross Sales 570 1,922 4,808 9,261 13,476 18,384
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350
Number of Reservations 1,630 5,493 13,738 26,459 38,503 52,527
Reservations Growth 237% 150% 93% 46% 36%
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% -4.3%
Commission 7.0% 6.7% 6.4% 6.1% 5.9% 5.6%
Commission Revenue 40 129 308 568 791 1,033
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 4 13 32 61 89 121
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 12.0 11.2 10.4 9.7 9.0 8.3
Fulfillment Cost 20 61 143 255 346 439
Web Engine Cost Growth x Reservations n.a. -5% -5% -5% -5% -5%
Web Engine Cost x Reservations (Euros) 3.0 2.9 2.7 2.6 2.4 2.3
Web Engine Cost 5 16 37 68 94 122
Referred to Spanish Costs
Advertising Cost 99 121 148 181 222 271
SW Maintenance Cost 25 25 25 25 25 25
% Over HW Investment 8% 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0 0 0
Total Maintenance Cost 25 25 25 25 25 25
Human Resources 0 0 0 0 0 0
Average Salary Growth n.a. 2% 2% 2% 2% 2%
Average Salary 50 51 52 53 54 55
Associated Costs (Equipment, etc.) 10 10 10 11 11 11
Other Over Head Cost 0 0 0 0 0 0
Investments ('000 Euros) 18 0 0 18 0 0
HW 6 6
SW
Other 12 12
------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Hypothesis 2006 2007 2008 2009
--------------------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth 7.0% 7.0% 7.0% 7.0%
Total Travel Market 3,056,988 3,270,977 3,499,945 3,744,941
On-line Share Growth 40.0% 35.0% 30.0% 25.0%
On-line Share % 6.4% 9.0% 12.1% 15.7%
On-line Travel Market 195,828 293,351 423,745 589,429
Market Share Growth -12.5% -5.0% -2.0% -1.0%
JIAT Market Share 12.7% 12.1% 11.9% 11.7%
JIAT Gross Sales 24,958 35,518 50,279 69,239
Average Sale x Reservation Growth 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350
Number of Reservations 71,309 101,480 143,656 197,827
Reservations Growth 36% 42% 42% 38%
Revenues ('000 Euros)
Commission Growth -4.3% -4.3% -4.3% 0%
Commission 5.4% 5.1% 4.9% 4.9%
Commission Revenue 1,342 1,828 2,476 3,410
Segment x Reservation 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0
CRS Incentives 164 233 330 455
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.8 7.2 6.7 6.2
Fulfillment Cost 554 733 965 1,235
Web Engine Cost Growth x Reservations -5% -5% -5% -5%
Web Engine Cost x Reservations (Euros) 2.2 2.1 2.0 1.9
Web Engine Cost 157 213 286 374
Referred to Spanish Costs
Advertising Cost 332 406 496 607
SW Maintenance Cost 25 25 25 25
% Over HW Investment 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0
Total Maintenance Cost 25 25 25 25
Human Resources 0 0 0 0
Average Salary Growth 2% 2% 2% 2%
Average Salary 56 57 59 60
Associated Costs (Equipment, etc.) 11 11 12 12
Other Over Head Cost 0 0 0 0
Investments ('000 Euros) 0 18 0 0
HW 6
SW
Other 12
-------------------------------------------------------------------------------------------
00
Xxxx
----------------------------------------------------------------------------------------------------------------
Income Statement
(Miles de Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Commission 9 29 70 129 179 234 304 415 562 773
CRS Incentives 1 3 7 14 20 27 37 53 75 103
----------------------------------------------------------------------------------------------------------------
Total Revenues 10 32 77 143 200 262 342 467 637 877
----------------------------------------------------------------------------------------------------------------
Fulfillment 4 14 32 58 78 99 126 166 219 280
Web Engine 1 4 8 15 21 28 36 48 65 85
Maintenance 25 25 25 25 25 25 25 25 25 25
----------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 31 43 66 99 125 153 187 240 309 390
----------------------------------------------------------------------------------------------------------------
Gross Margin (21) (11) 11 44 74 109 155 228 327 486
Advertising 23 28 34 41 50 62 75 92 113 138
Other Over Head Cost 0 0 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------------------------
Total Cost 23 28 34 41 50 62 75 92 113 138
----------------------------------------------------------------------------------------------------------------
EBITDA (44) (38) (23) 3 24 48 80 136 215 348
Depreciation
Investments 0 18 0 0 18 0 0 0 18 0 0
----------------------------------------------------------------------------------------------------------------
00
Xxxx
------------------------------------------------------------------------------------------------------------------------------------
Hypothesis 1999 2000 2001 2002 2003 2004 2005
--------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth n.a. 7.0% 7.0% 7.0% 7.0% 7.0%
Total Travel Market 462,000 494,340 528,944 565,970 605,588 647,979
On-line Share Growth n.a. 250.0% 175.0% 125.0% 70.0% 50.0% 45.0%
On-line Share % 0.1% 0.3% 0.8% 1.7% 2.9% 4.4%
On-line Travel Market 370 1,384 4,073 9,805 17,836 28,627
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6%
JIAT Gross Sales 129 436 1,091 2,100 3,056 4,170
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350
Number of Reservations 370 1,246 3,116 6,001 8,733 11,913
Reservations Growth 7 237% 150% 93% 46% 36%
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% -4.3%
Commission 7.0% 6.7% 6.4% 6.1% 5.9% 5.6%
Commission Revenue 9 29 70 129 179 234
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 1 3 7 14 20 27
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 12.0 11.2 10.4 9.7 9.0 8.3
Fulfillment Cost 4 14 32 58 78 99
Web Engine Cost Growth x Reservation n.a. -5% -5% -5% -5% -5%
Web Engine Cost x Reservation (Euros) 3.0 2.9 2.7 2.6 2.4 2.3
Web Engine Cost 1 4 8 15 21 28
Referred to Spanish Costs
Advertising Cost 23 28 34 41 50 62
SW Maintenance Cost 25 25 25 25 25 25
% Over HW Investment 8% 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0 0 0
Total Maintenance Cost 25 25 25 25 25 25
Human Resources 0 0 0 0 0 0
Average Salary Growth n.a. 2% 2% 2% 2% 2%
Average Salary 50 51 52 53 54 55
Associated Costs (Equipment, etc.) 10 10 10 11 11 11
Other Over Head Cost 0 0 0 0 0 0
Investments ('000 Euros) 18 0 0 18 0 0
HW 6 6
SW
Other 12 12
------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Hypothesis 2006 2007 2008 2009
--------------------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth 7.0% 7.0% 7.0% 7.0%
Total Travel Market 693,337 741,871 793,802 849,368
On-line Share Growth 40.0% 35.0% 30.0% 25.0%
On-line Share % 6.4% 9.0% 12.1% 15.7%
On-line Travel Market 44,415 66,533 96,107 133,685
Market Share Growth -12.5% -5.0% -2.0% -1.0%
JIAT Market Share 12.7% 12.1% 11.9% 11.7%
JIAT Gross Sales 5,661 8,056 11,404 15,704
Average Sale x Reservation Growth 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350
Number of Reservations 16,173 23,016 32,582 44,868
Reservations Growth 36% 42% 42% 38%
Revenues ('000 Euros)
Commission Growth -4.3% -4.3% -4.3% 0%
Commission 5.4% 5.1% 4.9% 4.9%
Commission Revenue 304 415 562 773
Segment x Reservation 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0
CRS Incentives 37 53 75 103
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.8 7.2 6.7 6.2
Fulfillment Cost 126 166 219 280
Web Engine Cost Growth x Reservation -5% -5% -5% -5%
Web Engine Cost x Reservation (Euros) 2.2 2.1 2.0 1.9
Web Engine Cost 36 48 65 85
Referred to Spanish Costs
Advertising Cost 75 92 113 138
SW Maintenance Cost 25 25 25 25
% Over HW Investment 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0
Total Maintenance Cost 25 25 25 25
Human Resources 0 0 0 0
Average Salary Growth 2% 2% 2% 2%
Average Salary 56 57 59 60
Associated Costs (Equipment, etc.) 11 11 12 12
Other Over Head Cost 0 0 0 0
Investments ('000 Euros) 0 18 0 0
HW 6
SW
Other 12
-------------------------------------------------------------------------------------------
49
Venezuela
----------------------------------------------------------------------------------------------------------------
Income Statement
(Miles de Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Commission 0 147 346 625 855 1,095 1,396 1,865 2,480 3,351
CRS Incentives 0 14 35 67 96 128 171 238 331 447
----------------------------------------------------------------------------------------------------------------
Total Revenues 0 162 381 692 950 1,223 1,566 2,104 2,811 3,798
----------------------------------------------------------------------------------------------------------------
Fulfillment 0 70 160 281 373 465 576 748 966 1,214
Web Engine 0 18 42 75 102 129 164 217 286 368
Maintenance 0 25 25 25 25 25 25 25 25 25
----------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 0 113 227 381 500 619 765 990 1,278 1,607
----------------------------------------------------------------------------------------------------------------
Gross Margin 0 48 154 311 450 603 802 1,113 1,533 2,191
Advertising 0 139 166 200 240 288 345 414 497 596
Other Over Head Cost 0 122 125 127 130 132 135 138 141 143
----------------------------------------------------------------------------------------------------------------
Total Cost 0 261 291 327 370 420 480 552 638 740
----------------------------------------------------------------------------------------------------------------
EBITDA 0 (213) (137) (00) 00 000 000 000 000 0,451
Depreciation
Investments 0 0 18 0 0 18 0 0 0 18 0
----------------------------------------------------------------------------------------------------------------
50
Venezuela
------------------------------------------------------------------------------------------------------------------------------------
Hypothesis 1999 2000 2001 2002 2003 2004 2005
--------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth n.a. n.a. 5.0% 5.0% 5.0% 5.0%
Total Travel Market 0 2,491,000 2,615,550 2,746,328 2,883,644 3,027,826
On-line Share Growth n.a. 250.0% 175.0% 125.0% 70.0% 50.0% 45.0%
On-line Share % 0.1% 0.3% 0.8% 1.7% 2.9% 4.4%
On-line Travel Market 0 6,975 20,140 47,580 84,931 133,766
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6%
JIAT Gross Sales 0 2,197 5,392 10,192 14,554 19,484
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350
Number of Reservations 0 6,277 15,407 29,119 41,582 55,668
Reservations Growth n.a. n.a. 145% 89% 43% 34%
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% -4.3%
Commission 7.0% 6.7% 6.4% 6.1% 5.9% 5.6%
Commission Revenue 0 147 346 625 855 1,095
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 0 14 35 67 96 128
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros 12.0 11.2 10.4 9.7 9.0 8.3
Fulfillment Cost 0 70 160 281 373 465
Web Engine Cost Growth x Reservation n.a. -5% -5% -5% -5% -5%
Web Engine Cost x Reservation (Euros) 3.0 2.9 2.7 2.6 2.4 2.3
Web Engine Cost 0 18 42 75 102 129
Referred to Spanish Costs
Advertising Cost 0 139 166 200 240 288
SW Maintenance Cost 25 25 25 25 25
% Over HW Investment 8% 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0 0 0
Total Maintenance Cost 0 25 25 25 25 25
Human Resources 2 2 2 2 2
Average Salary Growth n.a. 2% 2% 2% 2% 2%
Average Salary 50 51 52 53 54 55
Associated Costs (Equipment, etc.) 10 10 10 11 11 11
Other Over Head Cost 0 122 125 127 130 132
Investments ('000 Euros) 0 18 0 0 18 0
HW 6 6
SW
Other 12 12
------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Hypothesis 2006 2007 2008 2009
--------------------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth 5.0% 5.0% 5.0% 5.0%
Total Travel Market 3,179,217 3,338,178 3,505,087 3,680,342
On-line Share Growth 40.0% 35.0% 30.0% 25%
On-line Share % 6.4% 9.0% 12.1% 15.7%
On-line Travel Market 203,658 299,377 424,367 579,262
Market Share Growth -12.5% -5.0% -2.0% -1.0%
JIAT Market Share 12.7% 12.1% 11.9% 11.7%
JIAT Gross Sales 25,956 36,248 50,353 68,045
Average Sale x Reservation Growth 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350
Number of Reservations 74,160 103,565 143,867 194,414
Reservations Growth 33% 40% 39% 35%
Revenues ('000 Euros)
Commission Growth -4.3% -4.3% -4.3% 0%
Commission 5.4% 5.1% 4.9% 4.9%
Commission Revenue 1,396 1,865 2,480 3,351
Segment x Reservation 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0
CRS Incentives 171 238 331 447
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.8 7.2 6.7 6.2
Fulfillment Cost 576 748 966 1,214
Web Engine Cost Growth x Reservation -5% -5% -5% -5%
Web Engine Cost x Reservation (Euros) 2.2 2.1 2.0 1.9
Web Engine Cost 164 217 286 368
Referred to Spanish Costs
Advertising Cost 345 414 497 596
SW Maintenance Cost 25 25 25 25
% Over HW Investment 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0
Total Maintenance Cost 25 25 25 25
Human Resources 2 2 2 2
Average Salary Growth 2% 2% 2% 2%
Average Salary 56 57 59 60
Associated Costs (Equipment, etc.) 11 11 12 12
Other Over Head Cost 135 138 141 143
Investments ('000 Euros) 0 0 18 0
HW 6
SW
Other 12
-------------------------------------------------------------------------------------------
51
Colombia
----------------------------------------------------------------------------------------------------------------
Income Statement
(Miles de Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Commission 0 125 294 531 726 930 1,186 1,585 2,108 2,848
CRS Incentives 0 12 30 57 81 109 145 202 281 380
----------------------------------------------------------------------------------------------------------------
Total Revenues 0 137 324 588 807 1,039 1,331 1,788 2,389 3,228
----------------------------------------------------------------------------------------------------------------
Fulfillment 0 60 136 239 317 395 489 636 821 1,032
Web Engine 0 15 35 64 86 110 139 184 243 312
Maintenance 0 25 25 25 25 25 25 25 25 25
----------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 0 100 197 328 429 530 654 845 1,090 1,370
----------------------------------------------------------------------------------------------------------------
Gross Margin 0 37 127 261 378 509 677 942 1,299 1,858
Advertising 0 118 141 170 204 244 293 352 422 507
Other Over Head Cost 0 0 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------------------------
Total Cost 0 118 141 170 204 244 293 352 422 507
----------------------------------------------------------------------------------------------------------------
EBITDA 0 (81) (00) 00 000 000 384 590 877 1,352
Depreciation
Investments 0 0 18 0 0 18 0 0 0 18 0
----------------------------------------------------------------------------------------------------------------
52
Colombia
------------------------------------------------------------------------------------------------------------------------------------
Hypothesis 1999 2000 2001 2002 2003 2004 2005
--------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth n.a. n.a. 5.0% 5.0% 5.0% 5.0%
Total Travel Market 0 2,117,000 2,222,850 2,333,993 2,450,692 2,573,227
On-line Share Growth n.a. 250.0% 175.0% 125.0% 70.0% 50.0% 45.0%
On-line Share % 0.1% 0.3% 0.8% 1.7% 2.9% 4.4%
On-line Travel Market 0 5,928 17,116 40,436 72,179 113,682
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6%
JIAT Gross Sales 0 1,867 4,583 8,661 12,369 16,558
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350
Number of Reservations 0 5,335 13,094 24,747 35,339 47,310
Reservations Growth n.a. n.a. 145% 89% 43% 34%
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% -4.3%
Commission 7.0% 6.7% 6.4% 6.1% 5.9% 5.6%
Commission Revenue 0 125 294 531 726 930
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 0 12 30 57 81 109
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 12.0 11.2 10.4 9.7 9.0 8.3
Fulfillment Cost 0 60 136 239 317 395
Web Engine Cost Growth x Reservation n.a. -5% -5% -5% -5% -5%
Web Engine Cost x Reservation (Euros) 3.0 2.9 2.7 2.6 2.4 2.3
Web Engine Cost 0 15 35 64 86 110
Referred to Spanish Costs
Advertising Cost 0 118 141 170 204 244
SW Maintenance Cost 25 25 25 25 25
% Over HW Investment 8% 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0 0
Total Maintenance Cost 0 25 25 25 25 25
Human Resources
Average Salary Growth n.a. 2% 2% 2% 2% 2%
Average Salary 50 51 52 53 54 55
Associated Costs (Equipment, etc.) 10 10 10 11 11 11
Other Over Head Cost 0 0 0 0 0 0
Investments ('000 Euros) 18 0 0 18 0
HW 6 6
SW
Other 12 12
------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Hypothesis 2006 2007 2008 2009
--------------------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth 5.0% 5.0% 5.0% 5.0%
Total Travel Market 2,701,888 2,836,982 2,978,832 3,127,773
On-line Share Growth 40.0% 35.0% 30.0% 25%
On-line Share % 6.4% 9.0% 12.1% 15.7%
On-line Travel Market 173,081 254,429 360,653 492,291
Market Share Growth -12.5% -5.0% -2.0% -1.0%
JIAT Market Share 12.7% 12.1% 11.9% 11.7%
JIAT Gross Sales 22,059 30,805 42,793 57,829
Average Sale x Reservation Growth 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350
Number of Reservations 63,026 88,015 122,266 165,225
Reservations Growth 33% 40% 39% 35%
Revenues ('000 Euros)
Commission Growth -4.3% -4.3% -4.3% 0%
Commission 5.4% 5.1% 4.9% 4.9%
Commission Revenue 1,186 1,585 2,108 2,848
Segment x Reservation 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0
CRS Incentives 145 202 281 380
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.8 7.2 6.7 6.2
Fulfillment Cost 489 636 821 1,032
Web Engine Cost Growth x Reservations -5.0% -5.0% -5.0% -5.0%
Web Engine Cost x Reservations (Euros) 2.2 2.1 2.0 1.9
Web Engine Cost 139 184 243 312
Referred to Spanish Costs
Advertising Cost 293 352 422 507
SW Maintenance Cost 25 25 25 25
% Over HW Investment 8% 8% 8% 8%
HW Maintenance Cost 0 0 0 0
Total Maintenance Cost 25 25 25 25
Human Resources
Average Salary Growth 2% 2% 2% 2%
Average Salary 56 57 59 60
Associated Costs (Equipment, etc.) 11 11 12 12
Other Over Head Cost 0 0 0 0
Investments ('000 Euros) 0 0 18 0
HW 6
SW
Other 12
-------------------------------------------------------------------------------------------
53
Corporativo
------------------------------------------------------------------------------------------------------------------------------------
Income Statement
('000 Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
-------------------- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Commission 0 0 0 0 0 0 0 0 0 0 0
CRS Incentives 0 0 0 0 0 0 0 0 0 0 0
Advertising 19 268 557 1,012 1,517 2,276 3,073 3,933 4,877 5,853 6,730
Sponsorship 0 67 139 253 379 569 768 983 1,219 1,463 1,683
------------------------------------------------------------------------------------------------------------------------------------
Total Revenues 19 335 696 1,265 1,897 2,845 3,841 4,916 6,096 7,316 8,413
------------------------------------------------------------------------------------------------------------------------------------
Fulfillment 0 0 0 0 0 0 0 0 0 0 0
Web Engine 0 0 0 0 0 0 0 0 0 0 0
Maintenance 84 84 84 84 99 99 99 99 99 99 99
Communications 15 61 123 184 307 429 552 736 858 1,042 1,165
Product Development n.a. 250 263 276 289 304 319 335 352 369 388
------------------------------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 99 395 469 543 695 832 970 1,170 1,309 1,511 1,652
------------------------------------------------------------------------------------------------------------------------------------
Gross Margin (80) (60) 227 721 1,202 2,013 2,871 3,746 4,787 5,805 6,761
Content Acquisition 50 125 230 417 626 939 1,268 1,622 2,012 2,414 2,776
Advertising 0 0 0 0 0 0 0 0 0 0 0
Other Over Head Cost 120 500 521 611 637 738 770 964 1,006 1,226 1,280
------------------------------------------------------------------------------------------------------------------------------------
Total Cost 170 625 751 1,028 1,263 1,677 2,038 2,587 3,018 3,640 4,057
------------------------------------------------------------------------------------------------------------------------------------
EBITDA (250) (685) (524) (307) (61) 336 833 1,160 1,769 2,165 2,705
Depreciation
Investments 624 0 0 0 254 0 0 0 176 0 0
------------------------------------------------------------------------------------------------------------------------------------
54
Corp
-----------------------------------------------------------------------------------------------------------------------------------
Hypothesis 1999 2000 2001 2002 2003 2004
--------------------- --------- --------- --------- --------- --------- ---------
Market ('000 Euros)
Travel Market Growth n.a. 5.0% 5.0% 5.0% 5.0% 5.0%
Total Travel Market 0 0 0 0 0 0
On-line Share Growth n.a. 250.0% 175.0% 125.0% 70.0% 50.0%
On-line Share % 0.1% 0.1% 0.3% 0.8% 1.7% 2.9%
On-line Travel Market 0 0 0 0 0 0
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6%
JIAT Gross Sales 0 0 0 0 0 0
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350
Number of Reservations 0 0 0 0 0 0
Reservations Growth n.a. #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% 0%
Commission 6.0% 5.7% 5.5% 5.3% 5.0% 5.0%
Commission Revenue 0 0 0 0 0 0
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 0 0 0 0 0 0
No of Visits to JIAT Sites Growth Rate n.a. n.a. 100% 75% 50% 50%
No of Visits to JIAT Associated Sites ('000) 65,000 912,500 1,825,000 3,193,750 4,790,625 7,185,938
% of Visits to JIAT 1.3% 1.3% 1.3% 1.3% 1.3% 1.3%
Visits to JIAT ('000) 867 12,167 24,333 42,583 63,875 95,813
Average Page Views x Visit 6.0 6.0 6.0 6.0 6.0 6.0
JIAT Page Views ('000) 5,200 73,000 146,000 255,500 383,250 574,875
Capacity Sold 25% 25% 25% 25% 25% 25%
Page Views Sold ('000) 1,300 18,250 36,500 63,875 95,813 143,719
CPM (Euros) 29.3 29.3 29.3 29.3 29.3 29.3
Advertising Revenues 38 535 1,070 1,873 2,810 4,215
DoubleClick Commission 38% 38% 35% 33% 33% 33%
Gross Revenues 24 335 696 1,265 1,897 2,845
Associated Sites Commission 20% 20% 20% 20% 20% 20%
Net Advertising Revenues 19 268 557 1,012 1,517 2,276
Sponsorship 0 67 139 253 379 569
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 12.0 11.2 10.4 9.7 9.0 8.3
Fulfillment Cost 0 0 0 0 0 0
Web Engine Cost Growth x Reservation n.a. 0% 0% 0% 0% 0%
Web Engine Cost x Reservation (Euros) 3.0 3.0 3.0 3.0 3.0 3.0
Web Engine Cost 0 0 0 0 0 0
Advertising Cost Growth n.a. n.a. 20% 20% 20% 20%
Advertising Cost 0 0 0 0 0 0
% of Simultaneous Visits 1% 1% 1% 1% 1% 1%
Band Width x Visit 2.5 2.5 2.5 2.5 2.5 2.5
One Day Visits x Mb 40,960 40,960 40,960 40,960 40,960 40,960
MB Needed 1 1 2 3 5 7
Precio x Mb (yr) 15 61 61 61 61 61
Hosting & Communication Cost 15 61 123 184 307 429
% Over SW Investment 15% 15% 15% 15% 15% 15%
SW Maintenance Cost 75 75 75 75 87 87
% Over HW Investment 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 9 9 9 9 13 13
Total Maintenance Cost 84 84 84 84 99 99
Product Development Cost Growth n.a. n.a. 5% 5% 5% 5%
Product Development (New Functionality) n.a. 250 263 276 289 304
% Advertising Revenues n.a. n.a. 33% 33% 33% 33%
Content Acquisition Cost 50 125 230 417 626 939
Human Resources 4 8 8 9 9 10
Average Salary Growth n.a. 5% 5% 5% 5% 5%
Average Salary 20 53 55 58 61 64
Associated Costs (Equipment, etc.) 10 10 10 10 10 10
Other Over Head Cost 120 500 521 611 637 738
Investments ('000 Euros) 624 0 0 0 254 0
HW 116 168
SW 500 78
Other 8 8
-----------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
Hypothesis 2005 2006 2007 2008 2009
--------------------- ---------- ---------- ---------- ---------- ----------
Market ('000 Euros)
Travel Market Growth 5.0% 5.0% 5.0% 5.0% 5.0%
Total Travel Market 0 0 0 0 0
On-line Share Growth 35.0% 23.0% 16.0% 14.0% 10.0%
On-line Share % 4.4% 6.0% 7.3% 8.5% 9.7%
On-line Travel Market 0 0 0 0 0
Market Share Growth -12.5% -5.0% -2.0% -1.0% -1.0%
JIAT Market Share 12.7% 12.1% 11.9% 11.7% 11.6%
JIAT Gross Sales 0 0 0 0 0
Average Sale x Reservation Growth 0% 0% 0% 0% 0
Average Sale x Reservation (Euros) 350 350 350 350 350
Number of Reservations 0 0 0 0 0
Reservations Growth #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Revenues ('000 Euros)
Commission Growth 0% 0% 0% 0% 0%
Commission 5.0% 5.0% 5.0% 5.0% 5.0%
Commission Revenue 0 0 0 0 0
Segment x Reservation 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0
CRS Incentives 0 0 0 0 0
No of Visits to JIAT Sites Growth Rate 35% 28% 24% 20% 15%
No of Visits to JIAT Associated Sites ('000) 9,701,016 12,417,300 15,397,452 18,476,942 21,248,484
% of Visits to JIAT 1.3% 1.3% 1.3% 1.3% 1.3%
Visits to JIAT ('000) 129,347 165,564 205,299 246,359 283,313
Average Page Views x Visit 6.0 6.0 6.0 6.0 6.0
JIAT Page Views ('000) 776,081 993,384 1,231,796 1,478,155 1,699,879
Capacity Sold 25% 25% 25% 25% 25%
Page Views Sold ('000) 194,020 248,346 307,949 369,539 424,970
CPM (Euros) 29.3 29.3 29.3 29.3 29.3
Advertising Revenues 5,690 7,284 9,032 10,838 12,464
DoubleClick Commission 33% 33% 33% 33% 33%
Gross Revenues 3,841 4,916 6,096 7,316 8,413
Associated Sites Commission 20% 20% 20% 20% 20%
Net Advertising Revenues 3,073 3,933 4,877 5,853 6,730
Sponsorship 768 983 1,219 1,463 1,683
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.8 7.2 6.7 6.2 5.8
Fulfillment Cost 0 0 0 0 0
Web Engine Cost Growth x Reservation 0% 0% 0% 0% 0%
Web Engine Cost x Reservation (Euros) 3.0 3.0 3.0 3.0 3.0
Web Engine Cost 0 0 0 0 0
Advertising Cost Growth 20% 20% 20% 20% 20%
Advertising Cost 0 0 0 0 0
% of Simultaneous Visits 1% 1% 1% 1% 1%
Band Width x Visit 2.5 2.5 2.5 2.5 2.5
One Day Visits x Mb 40,960 40,960 40,960 40,960 40,960
MB Needed 9 12 14 17 19
Precio x Mb (yr) 61 61 61 61 61
Hosting & Communication Cost 552 736 858 1,042 1,165
% Over SW Investment 15% 15% 15% 15% 15%
SW Maintenance Cost 87 87 87 87 87
% Over HW Investment 8% 8% 8% 8% 8%
HW Maintenance Cost 13 13 13 13 13
Total Maintenance Cost 99 99 99 99 99
Product Development Cost Growth 5% 5% 5% 5% 5%
Product Development (New Functionality) 319 335 352 369 388
% Advertising Revenues 33% 33% 33% 33% 33%
Content Acquisition Cost 1,268 1,622 2,012 2,414 2,776
Human Resources 10 12 12 14 14
Average Salary Growth 5% 5% 5% 5% 5%
Average Salary 67 70 74 78 81
Associated Costs (Equipment, etc.) 10 10 10 10 10
Other Over Head Cost 770 964 1006 1226 1280
Investments ('000 Euros) 0 0 176 0 0
HW 168
SW
Other 8
---------------------------------------------------------------------------------------------------------------------
55
Revenues ('000 Euro) 82 1,393 4,350 9,866 17,710 25,111 33,035 43,499 58,928 79,616 107,278
Collection Period (days) 28 28 28 28 28 28 28 28 28 28 28
Acc. Receivable 6.4 108.3 338.4 767.4 1377.4 1953.1 2569.4 3383.3 4583.3 6192.4 8343.9
Total Cost 566 4,823 7,417 11,095 16,016 20,731 25,701 32,267 41,096 52,385 65,247
Payment Period (days) 25 25 25 25 25 25 25 25 25 25 25
Acc. Payable 39.3 334.9 515.1 770.5 1112.2 1439.6 1784.8 2240.8 2853.9 3637.8 4531.0
Working Capital -33.0 -226.6 -176.7 -3.1 265.2 513.5 784.6 1142.5 1729.5 2554.5 3812.8
Working Capital Movemments -33.0 -193.6 49.8 173.6 268.3 248.3 271.2 357.9 587.0 825.1 1258.3
56
Total
-----------------------------------------------------------------------------------------------------------------------------------
Income Statement
('000 Euros) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
--------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Commission 57 967 3,325 7,795 14,270 20,004 26,110 34,341 46,792 63,789
CRS Incentives 5 92 330 807 1,543 2,262 3,085 4,242 6,040 8,512
Advertising 19 268 557 1,012 1,517 2,276 3,073 3,933 4,877 5,853
Sponsorship 0 67 139 253 379 569 768 983 1,219 1,463
-----------------------------------------------------------------------------------------------------------------------------------
Total Revenues 82 1,393 4,350 9,866 17,710 25,111 33,035 43,499 58,928 79,616
-----------------------------------------------------------------------------------------------------------------------------------
Fulfillment 28 470 1,572 3,583 6,375 8,683 11,012 14,070 18,629 24,416
Web Engine 9 128 440 1,033 1,904 2,702 3,565 4,773 6,592 8,992
Maintenance 84 237 288 288 303 303 303 303 303 303
Communications 15 61 123 184 307 429 552 736 858 1,042
Product Development n.a. 250 263 276 289 304 319 335 352 369
-----------------------------------------------------------------------------------------------------------------------------------
Cost of Goods Sold 136 1,146 2,685 5,364 9,178 12,421 15,751 20,218 26,735 35,122
-----------------------------------------------------------------------------------------------------------------------------------
Gross Margin (54) 247 1,666 4,503 8,532 12,690 17,284 23,281 32,194 44,494
Content Acquisition 50 125 230 417 626 939 1,268 1,622 2,012 2,414
Advertising 200 2,506 3,301 4,006 4,861 5,900 7,162 8,694 10,554 12,815
Other Over Head Cost 180 1,045 1,202 1,309 1,352 1,470 1,520 1,733 1,795 2,034
Operating Expenses 430 3,676 4,732 5,731 6,839 8,309 9,949 12,049 14,361 17,262
-----------------------------------------------------------------------------------------------------------------------------------
Total Cost 566 4,823 7,417 11,095 16,016 20,731 25,701 32,267 41,096 52,385
-----------------------------------------------------------------------------------------------------------------------------------
EBITDA (484) (3,430) (3,067) (1,229) 1,694 4,380 7,335 11,232 17,833 27,231
Depreciation 160 187 196 196 131 113 104 104 85 85
Earnings Before Taxes (645) (3,617) (3,263) (1,425) 1,562 4,267 7,231 11,128 17,748 27,147
Taxes (35%) -226 -1,266 -1,142 -499 547 1,494 2,531 3,895 6,212 9,501
Carry Forward (5 yr) -226 -1,492 -2,634 -3,132 -2,586 -866 0 0 0
Taxes Paid 0 0 0 0 0 0 1,664 3,895 6,212 9,501
Net Earnings (645) (3,617) (3,263) (1,425) 1,562 4,267 5,566 7,233 11,536 17,645
Depreciation 160 187 196 196 131 113 104 104 85 85
Working Capital 33 194 -50 -174 -000 -000 -000 -000 -000 -825
Investment -000 -000 -00 0 -000 -00 0 0 -000 -00
Cashflow (1,093) (3,344) (3,152) (1,402) 1,045 4,096 5,399 6,979 10,732 16,869
Cumulative Cash Flow (1,093) (4,437) (7,590) (8,992) (7,947) (3,851) 1,548 8,528 19,260 36,129
-----------------------------------------------------------------------------------------------------------------------------------
WACC 0 1 2 3 4 5 6 7 8 9
35% (1,093) (2,477) (1,730) (570) 315 913 892 854 973 1,133
30% (1,093) (2,572) (1,865) (638) 366 1,103 1,119 1,112 1,316 1,591
25% (1,093) (2,675) (2,018) (718) 428 1,342 1,415 1,464 1,800 2,264
----------------------------------
Income Statement
('000 Euros) 2009
--------------------- ----
Commission 87,226
CRS Incentives 11,639
Advertising 6,730
Sponsorship 1,683
----------------------------------
Total Revenues 107,278
----------------------------------
Fulfillment 31,056
Web Engine 11,890
Maintenance 303
Communications 1,165
Product Development 388
----------------------------------
Cost of Goods Sold 44,802
----------------------------------
Gross Margin 62,476
Content Acquisition 2,776
Advertising 15,560
Other Over Head Cost 2,108
Operating Expenses 20,445
----------------------------------
Total Cost 65,247
----------------------------------
EBITDA 42,032
Depreciation 85
Earnings Before Taxes 41,947
Taxes (35%) 14,681
Carry Forward (5 yr) 0
Taxes Paid 14,681
Net Earnings 27,266
Depreciation 85
Working Capital -1,258
Investment 0
Cashflow 26,092
Cumulative Cash Flow 62,220
----------------------------------
WACC 10 NPV Terminal Total
1,298 507 3,315 3,822
1,893 2,330 6,066 8,396
2,802 5,012 11,796 16,808
57
Total
---------------------------------------------------------------------------------------------------------------------------------
Hypothesis 1999 2000 2001 2002 2003 2004
--------------------- --------- ---------- ---------- ---------- ---------- ----------
Market ('000) Euros
Total Travel Market 2,932,600 51,453,150 59,288,968 62,954,437 66,852,252 70,997,463
On-Line Share Growth n.a. 250.0% 175.0% 125.0% 70.0% 50.0%
On-line Share % 0.1% 0.1% 0.3% 0.8% 1.7% 2.9%
On-line Travel Market 2,346 41,163 166,009 484,749 1,158,215 2,091,053
Market Share Growth n.a. -10.0% -15.0% -20.0% -20.0% -15.0%
JIAT Market Share 35.0% 31.5% 26.8% 21.4% 17.1% 14.6%
JIAT Gross Sales 821 12,966 44,449 103,833 198,472 304,574
Average Sale x Reservation Growth n.a. 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350 350
Number of Reservations 2,346 37,046 126,997 296,666 567,062 870,213
Reservations Growth n.a. 1479% 243% 134% 91% 53%
Revenues ('000 Euros)
Commission Growth n.a. -4.3% -4.3% -4.3% -4.3% 0%
Commission 6.0% 5.7% 5.5% 5.3% 5.0% 5.0%
Commission Revenue 49 745 2,443 5,460 9,988 15,328
Segment x Reservation 2.3 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0 1.0
CRS Incentives 5 85 292 682 1,304 2,001
No of Visits to JIAT Sites Growth Rate n.a. n.a. 100% 75% 50% 50%
No of Visits to JIAT Associated Sites ('000) 65,000 912,500 1,825,000 3,193,750 4,790,625 7,185,938
% of Visits to JIAT 1.3% 1.3% 1.3% 1.3% 1.3% 1.3%
Visits to JIAT ('000) 867 12,167 24,333 42,583 63,875 95,813
Average Page Views x Visit 6.0 6.0 6.0 6.0 6.0 6.0
JIAT Page Views ('000) 5,200 73,000 146,000 255,500 383,250 574,875
Capacity Sold 25% 25% 25% 25% 25% 25%
Page Views Sold ('000) 1,300 18,250 36,500 63,875 95,813 143,719
CPM (Euros) 29.3 29.3 29.3 29.3 29.3 29.3
Advertising Revenues 38 535 1,070 1,873 2,810 4,215
DoubleClick Commission 38% 38% 35% 33% 33% 33%
Gross Revenues 24 335 696 1,265 1,897 2,845
Associated Sites Commission 20% 20% 20% 20% 20% 20%
Net Advertising Revenues 19 268 557 1,012 1,517 2,276
Sponsorship 0 67 139 253 379 569
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation n.a. -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 12.0 11.2 10.4 9.7 9.0 8.3
Fulfillment Cost 28 413 1,318 2,864 5,090 7,265
Web Engine Cost Growth x Reservations n.a. 0% 0% 0% 0% 0%
Web Engine Cost x Reservations (Euros) 3.0 3.0 3.0 3.0 3.0 3.0
Web Engine Cost 7 111 381 890 1,701 2,611
Advertising Cost 200 2,506 3,301 4,006 4,861 5,900
% of Simultaneous Visits 1% 1% 1% 1% 1% 1%
Band Width x Visit 2.5 2.5 2.5 2.5 2.5 2.5
One Day Visits x Mb 40,960 40,960 40,960 40,960 40,960 40,960
MB Needed 1 1 2 3 5 7
Precio x Mb (yr) 15 61 61 61 61 61
Hosting & Communication Cost 15 61 123 184 307 429
% Over SW Investment 15% 15% 15% 15% 15% 15%
SW Maintenance Cost 75 75 75 75 89 89
% Over HW Investment 8% 8% 8% 8% 8% 8%
HW Maintenance Cost 9 9 9 9 16 16
Total Maintenance Cost 84 84 84 84 106 106
Product Development Cost Growth n.a. n.a. 5% 5% 5% 5%
Product Development (New Functionality) n.a. 250 263 276 289 304
% Advertising Revenues n.a. n.a. 33% 33% 33% 33%
Content Acquisition Cost 50 125 230 417 626 939
Human Resources 6 17 19 20 20 21
Average Salary Growth n.a. 5% 5% 5% 5% 5%
Average Salary 20 53 55 58 61 64
Associated Costs (Equipment, etc) 10 10 10 10 10 10
Other Over Head Cost 180 1,063 1,237 1,358 1,416 1,550
Investments ('000 Euros) 642 84 36 0 356 36
HW 122 42 12 0 216 12
SW 500 18 0 0 96 0
Other 20 24 24 0 44 24
----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Hypothesis 2005 2006 2007 2008 2009
--------------------- ---------- ---------- ---------- ---------- ----------
Market ('000) Euros
Total Travel Market 75,406,118 80,095,319 85,083,304 90,389,513 96,034,675
On-Line Share Growth 35.0% 23.0% 16.0% 14.0% 10.0%
On-line Share % 4.4% 6.0% 7.3% 8.5% 9.7%
On-line Travel Market 3,331,348 4,776,990 6,241,610 7,691,806 9,316,295
Market Share Growth -12.5% -5.0% -2.0% -1.0% -1%
JIAT Market Share 12.7% 12.1% 11.9% 11.7% 11.6%
JIAT Gross Sales 424,577 578,381 740,598 903,545 1,083,427
Average Sale x Reservation Growth 0% 0% 0% 0% 0%
Average Sale x Reservation (Euros) 350 350 350 350 350
Number of Reservations 1,213,077 1,652,518 2,115,995 2,581,556 3,095,506
Reservations Growth 39% 36% 28% 22% 20%
Revenues ('000 Euros)
Commission Growth 0% 0% 0% 0% 0%
Commission 5.0% 5.0% 5.0% 5.0% 5.0%
Commission Revenue 21,368 29,108 37,272 45,472 54,525
Segment x Reservation 2.3 2.3 2.3 2.3 2.3
Price x Segment (Euros) 1.0 1.0 1.0 1.0 1.0
CRS Incentives 2,790 3,801 4,867 5,938 7,120
No of Visits to JIAT Sites Growth Rate 35% 28% 24% 20% 15%
No of Visits to JIAT Associated Sites ('000) 9,701,016 12,417,300 15,397,452 18,476,942 21,248,484
% of Visits to JIAT 1.3% 1.3% 1.3% 1.3% 1.3%
Visits to JIAT ('000) 129,347 165,564 205,299 246,359 283,313
Average Page Views x Visit 6.0 6.0 6.0 6.0 6.0
JIAT Page Views ('000) 776,081 993,384 1,231,796 1,478,155 1,699,879
Capacity Sold 25% 25% 25% 25% 25%
Page Views Sold ('000) 194,020 248,346 307,949 369,539 424,970
CPM (Euros) 29.3 29.3 29.3 29.3 29.3
Advertising Revenues 5,690 7,284 9,032 10,838 12,464
DoubleClick Commission 33% 33% 33% 33% 33%
Gross Revenues 3,841 4,916 6,096 7,316 8,413
Associated Sites Commission 20% 20% 20% 20% 20%
Net Advertising Revenues 3,073 3,933 4,877 5,853 6,730
Sponsorship 768 983 1,219 1,463 1,683
Costs ('000 Euros)
Fulfillment Cost Growth x Reservation -7.0% -7.0% -7.0% -7.0% -7.0%
Fulfillment Cost x Reservation (Euros) 7.8 7.2 6.7 6.2 5.8
Fulfillment Cost 9,418 11,932 14,209 16,122 17,978
Web Engine Cost Growth x Reservations 0% 0% 0% 0% 0%
Web Engine Cost x Reservations (Euros) 3.0 3.0 3.0 3.0 3.0
Web Engine Cost 3,639 4,958 6,348 7,745 9,287
Advertising Cost 7,162 8,694 10,554 12,815 15,560
% of Simultaneous Visits 1% 1% 1% 1% 1%
Band Width x Visit 2.5 2.5 2.5 2.5 2.5
One Day Visits x Mb 40,960 40,960 40,960 40,960 40,960
MB Needed 9 12 14 17 19
Precio x Mb (yr) 61 61 61 61 61
Hosting & Communication Cost 552 736 858 1,042 1,165
% Over SW Investment 15% 15% 15% 15% 15%
SW Maintenance Cost 89 89 89 89 89
% Over HW Investment 8% 8% 8% 8% 8%
HW Maintenance Cost 16 16 16 16 16
Total Maintenance Cost 106 106 106 106 106
Product Development Cost Growth 5% 5% 5% 5% 5%
Product Development (New Functionality) 319 335 352 369 388
% Advertising Revenues 33% 33% 33% 33% 33%
Content Acquisition Cost 1,268 1,622 2,012 2,414 2,776
Human Resources 21 23 23 25 25
Average Salary Growth 5% 5% 5% 5% 5%
Average Salary 67 70 74 78 81
Associated Costs (Equipment, etc) 10 10 10 10 10
Other Over Head Cost 1,617 1,848 1,929 2,189 2,286
Investments ('000 Euros) 0 0 278 36 0
HW 0 0 216 12 0
SW 0 0 18 0 0
Other 0 0 44 24 0
-----------------------------------------------------------------------------------------------------------------------
58
Attachment B
List of Latin American countries
Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Honduras
Mexico
Nicaragua
Panama
Paraguay
Peru
Uruguay
Venezuela
--------------------------------------------------------------------------------
Master Agreement Attachment B
59
Madrid, October 6th, 1999
In accordance with the provisions of the Master Agreement executed on July
23rd, 1999 between Amadeus Global Travel Distribution, S.A. ("Amadeus") and
Terra Networks, S.A. ("Terra" - formerly, Telefonica Interactiva, S.A.), both
Parties had seventy five (75) days of signature of such Master Agreement to
conclude certain requirements.
Today the aforementioned term finishes and, although preliminary actions
have been taken, the Parties have not yet reached the requirements within the
initial term.
Therefore, assuming that both Parties equally cause this delay over such
initial term, it would be necessary that both Parties, by means of their
acceptance and signature of this letter, expressly amend and extend the initial
term with fifteen additional days. Both Parties expect this new term to be
sufficient to conclude the negotiations and to agree with the final drafting of
their respective agreements with NewCo.
For this purpose, we signed this letter as proof of our approval of this
extension of the term to conclude the agreements with the NewCo.
AMADEUS GLOBAL TRAVEL DISTRIBUTION, S.A.
/s/ Xxxxx Xxxxx Fernebrand
Xxxxx Xxxxx Fernebrand
TERRA NETWORKS, S.A.
/s/ Xxxxxxxx Xxxxxx
Xxxxxxxx Xxxxxx
60
Madrid, October 20th, 1999
In accordance with the provisions of the Master Agreement executed on July
23rd, 1999 between Amadeus Global Travel Distribution, S.A. ("Amadeus") and
Terra Networks, S.A. ("Terra" - formerly, Telefonica Interactiva, S.A.), both
Parties had seventy five (75) days of signature of such Master Agreement to
conclude certain requirements.
By means of Letter signed by Amadeus and Terra last 6th of October, the 75
days period was extended two weeks ending the 20th of October 1999.
Today the aforementioned extension finishes and, although additional
actions have been taken, the Parties have not yet completely reached all the
requirements within the agreed extended term.
Therefore, assuming that both Parties equally cause this delay over such
initial term, it would be necessary that both Parties, by means of their
acceptance and signature of this letter, expressly amend and additionally extend
the term until the 31st of December, 1999. Both Parties expect this new term to
be sufficient to conclude the negotiations and to agree with the final drafting
of their respective agreements with the new joint venture company and to
complete the basic guidelines of the budget and business plan of the new joint
venture company.
For this purpose, we signed this letter as proof of our approval of the
extension of the term as described above.
AMADEUS GLOBAL TRAVEL DISTRIBUTION, S.A.
/s/ Xxxxx Xxxxx Fernebrand
Xxxxx Xxxxx Fernebrand
TERRA NETWORKS, S.A.
/s/ Xxxxxxxx Xxxxxx
Xxxxxxxx Xxxxxx
