pitch for proprium forum

BUSINESS OPPORTUNITY PRESENTATION

St Petersburg

October 22nd 2010

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A New Kind of Collective Buying

2010-10-19

Great numbers can mean great prices

Great people can mean great thingsBut we realized that …

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MISSION STATEMENT

“Proprium Forum will establish an online platform that connects consumers with each other and enables them to interact with high profile brands to exchange information and acquire products”

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Exclusivity as Main Differentiation

Low price offerings

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Open

Membership

Exclusive

Membership

High price offerings

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Existing Competitive Advantages

Membership Offerings Market

ApprovalProducts

& Services

Europe

Approval Services Europe, mainly U.K.

Approval Products The U.S.

Open Products Europe

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Revenue Sources Help Retain Users

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Main Site• Special deals

Second Hand Market

Collective Purchases

Discussion forum

Commission Advertising

Fees Commission

Revenues

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Gradual Expansion Allows for Adaptive Processes

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Germany

Norway

Sweden

Sweden & Germany as natural expansion

Possible extension into France & Italy

Norway as pilot market

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Norway Offers Relatively Large, Concentrated Market

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Market Size1) Annual Spend per Customer (€)2)

Market Potential (€)

Norway 800 000 832 665 600 000

Sweden 370 000 789 291 930 000

Germany 3 000 000 869 2 607 000 000

Italy 1 800 000 792 1 425 600 000

France 2 300 000 781 1 796 300 000

Total 8 270 000 813 6 723 510 000

Total population: 4,5 million

1) SSB.no/lonn 2) European Technographic Benchmarks Service Q2 2008

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Several Categories to be Offered

22%

18%

10%5%

45%

Preferences of the Nor-wegian Market

Clothes Events ElectronicsCosmetics Other

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Market Share

Revenues (€)

Clothes 14% 20 500 480

Events 9% 10 782 720

Electronics 5% 3 328 000

Cosmetics 6% 1 996 800

Total 36 608 000

Considering our target market and the nature of our business, we will strive

for the following ratios

Source: European Technographic Benchmarks Service Q2 2008

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Later Steps Dependent on Evaluation Results

March 2011: Initial

partnership agreements

April 2011: Launch in Norway

Evaluation phase

June 2011: Launch in Sweden

October 2011:

Launch in Germany

Set-up of distribution

central

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• Successful establishment during first year opens up possibilities• Own distribution central key to continued expansion

A Pan-European Strategy Is Not Far Away

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Value Is Created for Both Parties

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Money

Product

FeedbackCustomer

Brands

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Careful Selection Keeps Marketing Costs Down

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Ad in D2 magazineEvents and sponsorships

• Ad costs €35 000 and reaches 350 000 people• €65 000 will be spent on sponsorships and events

The chosen medium and events have a strong fit with the target group

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Several Measures to Increase Loyalty

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Encouraged invitations

Special events

Membership card

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Total Investment: €2,7 million

2011 2012 2013 2014 2015 2016

2,7 18,5 36,8 37,8 41,6 45,7-15

-10

-5

0

5

10

15

20

25

30

Estimated EBITDA Development 2010-

2018

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• The required investment is €2,7 million

• It will finance the running costs and investments during 2010 and 2011

• Strong sales development expected

Investment needed for first 2 years

2013

Estimated Gross Sales 2011-2016 (mn€)

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Financial Forecast, All Markets

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First positive EBITDA

First positive free cash flow

Attractive IRR

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Array of Opportunities As We Look Ahead

New geographical markets

Selling customer feedback

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Membership feesConvert membership card to credit card

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Quick Recap

• Platform to connect an exclusive group of consumers with each other and desirable brands.

• Users are tied to the platform through features such as special deals, coordinated group purchases and discussion forums.

• This innovative approach of directing consumers’ attention and instilling loyalty to the network make for promising future returns.

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THANK YOU!Proprium Forum

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APPENDIX

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Financial Forecast, Overall Market

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Financial Forecast, Assumptions

Assumptions Norway Sweden GermanyDate of market Entry April 2011 June 2011 October 2011Cost of goods sold in % of Sales 50,00% 50,00% 50,00%Start-up maketing Expenses (€m) 0,1 0,1 1Market growth after 2013 10,00% 10,00% 10,00%Market Penetration 10,00% 10,00% 10,00%General and administrative costs in % of sales 5,00% 5,00% 5,00%Marketing costs per year in % of sales 1,00% 1,00% 1,00%

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Financial Forecast, Norway

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Assumptions, Norway

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Financial Forecast, Sweden

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Assumptions, Sweden

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Financial Forecast, Germany

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Assumptions, Germany

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Display Ads Offer Promising Revenue Potential

2Q 2

000

2Q 2

001

2Q 2

002

2Q 2

003

2Q 2

004

2Q 2

005

2Q 2

006

2Q 2

007

2Q 2

008

2Q 2

009

2Q 2

010

0

1

2

3

4

5

6

7

Revenues Online Advertis-ing, U.S. (bn$)

Distribution per Ad Format

Search E-mailLead Generation RichMedia Digital VideoDisplay/Banner SponsorshipClassifieds

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Source: IAB Internet Advertising Revenue Report 1st half 2010

23%

6,19

• Increase in online advertising• Strong interest in display/banner ads

Positive Trends on Ad Markets