www.adriatic-home.com

Leading Croatian P to P Holiday Rentals Pure Player

Expanding into Slovenia, and later into Montenegro and Albania

1. How do we solve a customer problem ?2. Market size3. Demand4. Offer5. Business Model & Numbers6. Competition7. Exit for Investors8. About Me9. Current Financing

Agenda

• Two communities:• People visiting the Adriatic coast• Property owners

• Both communities need to be satisfied

• We are focusing on solving the property owner’s concerns:

« Maximizing property owners’ revenues by renting out to local and especially foreign tourists »

How do we solve a customer problem ?

• Croatia: Offline Market: 405 000 beds in private accommodation

- Croatia: Online Market (estimate) 30 000 – 60 000 beds in private accommodation

The offline private accommodation rental market is huge….

Market Size

Demand (tourist size)  including Europe, US but also Russia and China

- Croatia: Number of people staying in private accommodation- year 2006 : 2,4 millions (registered in tourist office)- year 2007 : 2,8 millions (registered in tourist office)

- Croatia: Offline growth 5% per year

- Croatia: Online growth is much higher !!! Double digit if not triple digit growth

-Croatia: Total number of tourists each year- year 2006: 10,4 millions- year 2007: 11,2 millions

-Slovenia: 2,7 millions tourists each year growing by 8% (offline)-The source: www.dzs.hr

Demand

•Satisfaction or money back guarantee If the advertiser has not been contacted by any renter during the first month of publication, we will refund the total amount of the chosen advertising package.• Detailed description of the property • Geolocation on an interactive map. • Translation into 2 languages. (more languages to come)• 12 photos.

Pricing:

An ad active for a period of 12 months:   600 kn

An ad active for a period of 8 months:     450 kn An ad active for a period of 4 months:     250 kn

Banners: from 250 - 1000 kn/month

KG

Offer

• Visitors during 2008: 1 million• Total number of inquiries to all ads during 2008: 20 000• Revenue 2008 without Slovenia: 1,1 million kunas• Recurrent revenues : 45% of total• 97 % of customers are extending

• Our core business is P to P holiday rentals directly but we also have a partner approach:

• Proposing our services to partners (indirect) for example real estate sites – co-branding/white label solutions.• 2.Helping to Sell property to local or foreign buyers on our own or with partners. Looking for partners !

Business Model & Numbers

CROATIAN & REGIONAL PLAYERS :

ADRIAGATE / ADRIATICA.NET/ADRIALIN.COM/ADRIATIC.HR/CROZILLA.COM

A/ They have a BROAD Offering (HOLIDAY RENTALS, HOTELS, REAL ESTATE, CRUISES, OTHERS…).B/ In House development of there BROAD Offering

C/ They are mainly SUMMER oriented (BEACH and BOAT and ISLANDS aspect of CROATIA).D/ There have a “TECHNICAL” segmentation of the ADS (HOUSE, VILLAS, APARMENT, STONE HOUSE…) instead of VACATIONS STYLE one’s.

Competition

HOMELIDAYS - HOMEAWAY/CYBERENTALS / SE LOGER.COM (FR) / RENT.COM …

A/ They are focused on HOLIDAY RENTALS.

B/ They outsource there REAL ESTATE section when they have one (LONG TERM or BUY/SELL).

C/ REAL ESTATE Players Outsource in return their Holiday Rentals section to Pure Players.

D/ They have year long offerings (Winter season, Eastern holidays…).

Exit - INTERNATIONAL PLAYERS :

• experience of the Croatian E-tourism market since 1999 – own website

• Experience with tourism in Dubrovnik since 1980

• Company founded 2006 and attracted business angel financing in November 2007

• Founder and leads the company. Still largest single shareholder.

About me - Krešo Gudelj

DS

• One of the first international business angel syndications in Croatia are backing www.adriatic-home.com

• Shareholders with extensive E-Commerce knowledge based in the US, France, Sweden and Switzerland

• The business angels backing the Company have a proven track record in terms of exits

Current Financing

Lars Lindgren, A Swedish Citizen living in France has done business angel investments since 1984.

• He is the Father of Business Angel Investments in Sweden.• In 1985 he started the Swedish Venture Capital Association and was its Chairman between 1985 and 1995.• In 1993 he started business angel syndication via Foretagsbyggarna. In total the business angel syndication has done 31 investments. 16 exits were realised thereof 6 IPOs.

• On average he has had a return of about 5 times the amount invested and an IRR of 60%. Lars has mainly been investing in Software, Telecom and Electronics and recently into Prowebce, Alternativa and GUST. In the last 3 investments he has co-invested with Dušan Stojanović .

 

Current Financing

Dušan Stojanović, A European with a Swedish passport, • He worked for 10 years between 1995 - 2005 within Business Development primarily in Financial Services, E-payments/E-Commerce (GE Capital and Monabanq.com) and his own ventures before becoming a business angel in 2005. • He started to become a business angel in 2005 and is today a full-time business angel with 8 investments in 3 countries (France, Sweden and Croatia).

• Starting to have a solid track record as a business angel with 2 out 8 investments IPOed and one more partial exit. From his 3 exits he has made between 2 and 5 times money and IRR’s of between 60 and 300%. These partial exits allows him to reinvest into new ventures. 

Current Financing

Phil Dardier, is a Canadian & Frenchman.

• He has been investing on personal basis in start up companies and 1st round investments since 1993. • He has set up a Foreign exchange trading fund in 1994, His investments have been e-commerce based (VistaPrint – France & USA), in the Wine industry (Ficofi Wine asset management & distribution & e-Ficofi – Listed Bordeaux Future – France), technology (Attenda – UK), as well retail products and more recently in Gust (Croatia) , Alternativa (France) the unlisted Stock market place and in the Indian Ocean (in the Comoros) in the tourism business.

 His exits have ranged from IPO’s (VistaPrint on the Nasdaq) to buyouts e-ficofi.  Phil Dardier is by profession Equity derivatives specialist and was a Managing Director and headed sales in Europe Globally at Merrill Lynch and BNPParibas groups focusing on volatility and convertible type products for investors ranging from hedge Funds to Pension Funds

Current Financing

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