Gold Compass TravelTravel. In the right direction.

Terri FargoTerri FargoJonathan ScharffenbergJonathan ScharffenbergSally Arizaga Sally Arizaga Ramon Perez Ramon Perez Christian MachadoChristian Machado

MissionMission

Provide customers with a unique and Provide customers with a unique and personalized vacation planning personalized vacation planning

experience in a manner that reflects experience in a manner that reflects our passion for travel and our passion for travel and

commitment to superior customer commitment to superior customer service. service.

VisionVision

Our vision is to facilitate the creation Our vision is to facilitate the creation of positive life experiences through of positive life experiences through

travel.  travel. 

ConceptConcept

Luxury Vacation Planning SpecialistsLuxury Vacation Planning Specialists

Customer Value ThroughCustomer Value Through ““Above and Beyond” ServiceAbove and Beyond” Service

Customer DatabaseCustomer Database Destination PacketsDestination Packets Vacation DebriefingVacation Debriefing SeminarsSeminars

ConceptConcept

Convenient AccessConvenient Access Store LocationStore Location Web siteWeb site ““House Calls”House Calls”

Organization and Organization and ManagementManagement

General Partner and ManagerGeneral Partner and Manager Terri Fargo Terri Fargo

Limited Partner and AgentsLimited Partner and Agents Sally ArizagaSally Arizaga Christian MachadoChristian Machado Ramon PerezRamon Perez Jon ScharffenbergJon Scharffenberg

Augmented by Advisory BoardAugmented by Advisory Board

IndustryIndustry Industry OverviewIndustry Overview

Travel Agencies: SIC 4724 & NAICS 561510Travel Agencies: SIC 4724 & NAICS 561510

Travel & Tourism- 3rd Largest Retail IndustryTravel & Tourism- 3rd Largest Retail Industry

Overall Travel Expenditures $679.4 billion in Overall Travel Expenditures $679.4 billion in 20062006

IndustryIndustry Industry Characteristics & TrendsIndustry Characteristics & Trends

Mature and growing at 2.9%Mature and growing at 2.9% Consolidation of IndustryConsolidation of Industry Declining Commissions = Service FeesDeclining Commissions = Service Fees

Industry CompetitorsIndustry Competitors Online (Expedia and Priceline.com)Online (Expedia and Priceline.com) Local MarketsLocal Markets

Gold Gold Compass Compass TravelTravel

Zoe’s Zoe’s Cruises & Cruises & ToursTours

AAAAAA TravelStTravelStoreore

Target Target MarketMarket

High income, High income, educated educated travelerstravelers

Princess Princess passengerspassengers

AAA MembersAAA Members Business Business TravelersTravelers

OperatiOperationsons

5 agents - 1 5 agents - 1 location location

8 agents – 1 8 agents – 1 locationlocation

6027 agents – 6027 agents – 1066 locations1066 locations

280 280 agents -agents -25 25 locationslocations

CustomCustomererServiceService

Customer Customer satisfaction satisfaction through through personal personal serviceservice

87% 87% customer customer referralreferral

Complaints: Complaints: UnprofessioUnprofessionalnalDifficult to Difficult to get get informationinformation

Members onlyMembers only

Complaints:Complaints:UnprofessionalUnprofessionalProblems with Problems with travel planningtravel planningDid not resolve Did not resolve customer customer complaintscomplaints

Awarded Awarded “Leader “Leader in Luxury in Luxury Travel”Travel”

MarketMarket

44% Increase in Millionaire 44% Increase in Millionaire Households Since 2003Households Since 2003

Increased Luxury Consumer Increased Luxury Consumer Spending in 2006Spending in 2006 3.8% of income 3.8% of income $56,000 estimated in 2006$56,000 estimated in 2006

During the During the last 12 last 12 months months

have you:have you:

Household IncomeHousehold Income

   $100K+$100K+ $150K+$150K+ $200K+$200K+

Purchase Purchase any luxury any luxury productproduct

89%89% 92%92% 97%97%

Purchased Purchased any luxury any luxury serviceservice

85%85% 87%87% 93%93%

Purchased Purchased traveltravel 57%57% 64%64% 68%68%

Purchased Purchased electronicselectronics 56%56% 59%59% 66%66%

Purchased Purchased fragrance/bfragrance/beauty eauty productsproducts

43%43% 46%46% 45%45%

Purchase Purchase maid maid serviceservice

37%37% 45%45% 63%63%

Target MarketTarget Market Individuals Age 30-Individuals Age 30-

5050 College EducatedCollege Educated MarriedMarried Three CategoriesThree Categories

Near AffluentNear Affluent AffluentAffluent Super-AffluentSuper-Affluent

Highest Mean Highest Mean Income: El Dorado Income: El Dorado County & Placer County & Placer CountyCounty

Sacramento Metro Area Demographics

010000200003000040000500006000070000

County

Num

ber o

f Hou

seho

lds

Near Affluents

Affluents

Super-Affluents

Customer ProfileCustomer Profile

Affluent TravelerAffluent Traveler Less likely to book onlineLess likely to book online Want convenienceWant convenience Want to be “educated”Want to be “educated”

Customer ProfileCustomer Profile

Seek Experience Rather Than Seek Experience Rather Than Material GoodsMaterial Goods Enjoyment & pleasure Enjoyment & pleasure Quality of lifeQuality of life

Relaxation & stress reliefRelaxation & stress relief ““Making memories”Making memories”

6 trips per year6 trips per year Almost $26,000 on travelAlmost $26,000 on travel

Sales ForecastSales Forecast

National MarketNational Market 33,000 establishments 33,000 establishments $59.5 billion$59.5 billion

State MarketState Market 5,785 establishments5,785 establishments $7 billion$7 billion

Sales ForecastSales Forecast

Local MarketLocal Market 223 establishments 223 establishments $196.4 million$196.4 million .45% penetration.45% penetration $900,000 in revenue$900,000 in revenue

Gold Compass TravelGold Compass Travel ..15% penetration 1st year15% penetration 1st year $288,708 in revenue$288,708 in revenue

Start-Up CapitalStart-Up Capital

Owner InjectionOwner Injection General Partner - $500General Partner - $500 Limited Partners - $7,000 eachLimited Partners - $7,000 each Total = $28,500Total = $28,500

LoansLoans $55,000 the 1st year$55,000 the 1st year 1st year only interest payments1st year only interest payments 2nd year start paying the principal on the loan2nd year start paying the principal on the loan

Credit FinancingCredit Financing

$200,000 Line of Credit$200,000 Line of Credit

Amortized over 30 years at 8.25% Amortized over 30 years at 8.25% interest with a balloon after 6 yearsinterest with a balloon after 6 years

Use of FundsUse of Funds

Rent & Tenant ImprovementsRent & Tenant Improvements Tenant improvements $7,800 Tenant improvements $7,800 Rent $16,000Rent $16,000

SalariesSalaries $80,000 $80,000

TechnologyTechnology $6,110$6,110

Use of FundsUse of Funds

MarketingMarketing $28,565$28,565

Licenses & CertificatesLicenses & Certificates $5,355$5,355

Growth RateGrowth Rate

0%

2%

4%

6%

8%

10%

12%

0 2 4 6

Year

Gro

wth

GoldCompassTravel

Industrygrowth

Revenue and Net IncomeRevenue and Net Income

RevenueRevenueYear 1= $288,708Year 1= $288,708

Year 2= $363,525Year 2= $363,525

Year 3= $398,865Year 3= $398,865

Year 4 = $430,776Year 4 = $430,776

Year 5 = $465,238Year 5 = $465,238

Net IncomeNet IncomeYear 1= $18,580Year 1= $18,580

Year 2= $91,754Year 2= $91,754

Year 3= $107,731Year 3= $107,731

Year 4 = $117,109Year 4 = $117,109

Year 5 = $135,583Year 5 = $135,583

Total AssetsTotal Assets

Year 1 = $135,849Year 1 = $135,849 Year 2 = $253,727Year 2 = $253,727 Year 3 = $368,605Year 3 = $368,605 Year 4 = $496,774Year 4 = $496,774 Year 5 = $642,538Year 5 = $642,538

ProfitabilityProfitability

5 Year Annual Average5 Year Annual Average Return on Investment = 80%Return on Investment = 80% Gross Profit Margin = 90%Gross Profit Margin = 90% Net Profit Margin = 23%Net Profit Margin = 23%

Allocation of Profits and Allocation of Profits and LossesLosses

General Partner General Partner Terri FargoTerri Fargo

30% equity position30% equity position

Limited Partners Limited Partners Christian, Jon, Ramon, SallyChristian, Jon, Ramon, Sally

17.5% equity position each = 70%17.5% equity position each = 70%

Exit StrategyExit Strategy

Remain in businessRemain in business Alternative:Alternative:

Sell at the end of year fiveSell at the end of year five No less than balance sheet value of $642,538No less than balance sheet value of $642,538 DCF Valuation of expected cash flowsDCF Valuation of expected cash flows

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