Submarino's second round official deck. The original founder team was: Antonio Bonchristiano, Marcelo Ballona, Murillo Tavares and Martin Escobari. We added to the founders team Flavio Jansen and Luiz Elisio Mello. We had on our first round, Henry Kravis from KKR, George Soros, Bernard Arnault from LVMH and Jorge Paulo Lemann, Beto Sicupira and Marcel Telles. On the Second round we had as investors: Warburg Pincus, THli Putnam, Europe@Web (LVMH) and GP Investments.

1. Presentation to Potential Investors
November 1999

2. Table of Contents
• Our Vision
• The Market
• Our Strategy
• The Competition
• Our Team
• Financing Strategy

3. Submarino will be the leading e-commerce destination
for all Spanish and Portuguese speaking consumers
Our Vision

4. Ibero-America Internet Market is Large and Growing
Brazil, Spain and Mexico internet markets
already have critical mass… and others will by 2002
Ibero America
Internet Users
(1999)
Penetration
(users/pop)
Internet Users
(2002)
Penetration
(users/pop)
Spain 3,500 8.9% 7,043 17.5%
Portugal 700 7.0% 1,300 12.5%
Brazil 2,719 1.7% 7,373 4.4%
Mexico 832 0.9% 2,257 2.2%
Argentina 466 1.3% 1,192 3.2%
Southern Cone 200 0.0% 596 0.0%
Colombia 388 1.1% 1,053 2.7%
Peru 166 0.7% 451 1.7%
Other LA 777 1.6% 2,107 4.0%
Total Ibero-America 9,748 2.1% 23,372 5.0%
English World
Internet Users
(1999)
Penetration
(users/pop)
Internet Users
(2002)
Penetration
(users/pop)
USA 33,500 12.4% 48,600 17.4%
UK 8,000 13.6% 10,500 17.2%
Total English World 41,500 12.6% 59,100 17.4%
Source: IDC, Computer World Almanac, our estimates

5. E-Commerce Potential in Tremendous
Drivers of Growth
• Deregulation of the telecom industry is leading to
increased telephone penetration and falling prices
• Increased competition amongst ISPs is slashing
internet access prices
• Falling PC prices has made computers ever-more
accessible
• New investments in local-language and local-
content sites is attracting new users to the Net
0
10
20
30
40
50
60
70
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
B-C B-B

6. Increased Richness
of Customer
Relationship
Long-Term
Advantage
Scalable
Defensible
Model
• First to Market with
Local Solutions
• Scalable Fulfillment
• Strong Brand with Clear
Positioning
• Superior Technology
• Product Selection
• Content and Community
• Convenience and
Confidence
• Our Brand
• Our Client Knowledge
• Logistics & Supply Chain
Economics
Our Strategy

7. Argentina
Pop 1998 (mm): 36
% Pop Under 15 yrs: 28%
GDP 1998 ($bns): $ 348
GDP/Capita ($): $ 9,694
Int. Users 99 (mm): 0.5
Brazil
Pop 1998 (mm): 162
% Pop Under 15 yrs: 30%
GDP 1998 ($bns): $ 825
GDP/Capita ($): $ 5,093
Int. Users 99 (mm): 2.7
Mexico
Pop 1998 (mm): 96
% Pop Under 15 yrs: 34%
GDP 1998 ($bns): $ 415
GDP/Capita ($): $ 4,305
Int. Users 99 (mm): 0.8
Portugal
Pop 1998 (mm): 10
% Pop Under 15 yrs: 25%
GDP 1998 ($bns): $ 116
GDP/Capita ($): $ 11,600
Int. Users 99 (mm): 0.7
Spain
Pop 1998 (mm): 39.1
% Pop Under 15 yrs: 22%
GDP 1998 ($bns): $ 563
GDP/Capita ($): $ 14,400
Int. Users 99 (mm): 3.5
Regional Comparisons
Total Ibero America US + UK
Pop 1998 (mm) 546 329
% Pop < 15 29% 21%
GDP 1998 ($bns) 2,997 9,650
GDP/ CAP ($) 5,490 29,296
Int. Users 99 (thou) 9,748 41,500
First to Market

8. Scalable Fulfillment
• Absence of wholesalers/distributors
• Low level of automation by suppliers
• Poor delivery services
• Develop direct relationship with
suppliers
• Establish tight vendor relationships
• Develop in-house fulfillment solutions
Obstacles Our Solutions

9. Strong Brand with Clear Positioning (I)
August - October Launch October 27th

10. Strong Brand with Clear Positioning (II)
No E-commerce player has launched a campaign as aggressive as
Submarino
Brazil Spain Mexico Argentina
TV
Print
Other Off-line
On-line
Total

11. Strong Brand with Clear Positioning (III)

12. Technology
Slide on the
functionality of
Snickelways site

13. Increased Richness of Customer Relationship
Convenience and Community
• Chats with authors
• Celebrity interviews
• Publish my book/poem
• My Submarino
Customer Data Mining
• Online suggestions based on product choice
• Online suggestions based on buying history
• Emails offering new products to clients
• Coupons emailed to inactive clients
• Investment in Elefante
Rich Content
• The sole Brazilian reminder service
well positioned to develop
permission marketing
• Existing base of 250 K registered
users and 1 MM events
• Repositioning as online personal
organizer
Deep Product Strategy
• Online suggestions based on product choice
• Online suggestions based on buying history
• Emails offering new products to clients
• Coupons emailed to inactive clients

14. Innovative Customer Acquisition Strategy
Investment in Elefante
Elefante
• The sole Brazilian reminder
service well positioned to
develop permission marketing
• Existing base of 250 K
registered users and 1 MM
events
• Repositioning as online personal
organizer
• Acquisition of 10% with
warrants to increase stake to
25% at pre-arranged price
• Right of first refusal/anti-
dilution protection/tag along

15. Long-term Advantage
New Supply Chain EconomicsOur Client Knowledge
• Online suggestions based on product choice
• Online suggestions based on buying history
• Emails offering new products to clients
• Coupons emailed to inactive clients
• Automation of supplier interface
• Just in time order processing, real time
inventory confirmation
• Developing MP3, print-on-demand and e-
book strategies
TechnologyBuilding the Brand
• Partnership with Saatchi&Saatchi (FNazca)
world-wide.
• New brand will replace BookNet
completely
• Multi-product and multi-lingual
• Superior service is key for loyalty and
stickiness
• Improved front-end design by FNazca and
back end solution by 8/99
• Partnership with Snickelways
- Definitive e-com solution 12/99 (multi-
language, multi-country)
- Full integration with legacy systems 2/00
• Potential partnerships with Intel and MS

16. Our Team
Key Management - Brazil

17. Key Management - Brazil
Name Position Age Relevant Experience
Antonio
Bonchristiano
CEO 32 • Partner at GP Investimentos
• CFO of supermarket turnaround
• Investment banking (Salomon)
Marcelo Ballona SVP Marketing 29 • Internet marketing at Yahoo! And
Mandic
• Direct marketing / consumer products
Martín Escobari Business
Development
27 • Private equity (GP Investimentos)
• Media (Let’s Go and K-III)
• Management consultant (BCG)
Murillo Tavares Operations and
Finance
33 • Two previous start-ups
• Management consultant (McKinsey)
• Two-year logistics project at Brahma
Luis Elisio Melo Merchandising 39 • 13 years of experience in retail
• Purchasing / merchandising in Lojas
Americanas and Casa & Video
Flavio Jansen CIO 32 • CTO/COO of Mandic, Brazil’s 3rd
largest ISP
• Software consultant
• Systems engineer

18. Name Position Age Relevant Experience
Gonzalo Diaz-Rato Country
Manager
Spain
33 • VP at CSFB London
• CEO of cigar factory in Philippines
Aquilino Penã COO
Spain
29 • Management consultant (BCG)
• Start up in Spain (laundry)
Juan Saldivar Country
Manager
Mexico
33 • Turnaround consultant
• Country manager for Bertellsman´s
Mexican operation
Hilarion Olmo Country
Manager
Argentina
28 • International Project Manager (YPF
Argentina)
• Commodities Trader (YPF Argentina)
Sebastian Crespo Commercial
Manager
Argentina
27 • Founder of Liber – book
telemarketing company
• Two other start-ups
Our Team
Key Management - Brazil

19. Type Relat.
Strength
Brazil Spain Mexico Argentina Portugal
Internat.
Pure Plays
•None • Bertelsmann
(since 10/99)
• None • None • None
Brick and
Mortar
Retailer
• Saraiva (Books)
• Som Livre
(CDs)
• Americanas
(planned 00)
• Corte Ingles
(Dept Store)
• Crisol
(Library)
• Gandhi
(Books)
• Sanborns
(Multi product)
• Musimundo
(CDs)
• Yenny
(Bookstore)
• Disco
(Supermkt)
• ArcoIris
(Books)
Portals • UOL
• AOL
(planned)
• MSN/Globo
(planned)
• Terra
• Yahoo
• Excite
• Navegalia
(planned)
• Infocell/Terra
• Yupi
• Starmedia
• El Sitio
• Starmedia
• Sapo
• Portal.pt
• Netc.pt
Local Pure
Plays
• Microsite
(Electronics)
• Shoptime (TV
Channel)
• Equality
(incubator)
• Barrabes
(outing equip)
• NA • Farobue (CDs
and books)
• Librosonline
(planned 00)
• Media
Books
(Books)
• Webdisk
(CDs)
Virtual
Malls
• Visa Mall
(Credit card)
• BradescoNet
(Bank)
• Banesto
(Bank)
• Banamex
(Bank)
• Telmex
(Telco)
• Paginas
Amarillas
(Telco)
• BCP /
Atlantico
(Bank)
Competitive landscape by country

20. Key Metrics
Jul Aug Sep Oct Nov Dec
User Sessions
Pageviews
Orders
$/Order
New Customers
Total Active Customers

21. Financial Projections
99III 99IV 00I 00II 00III 00IV
US$ thousand, except client base
Client Base (a) 52,318 79,204 131,031 204,302 285,876 368,759
Sales 402 837 1,612 2,611 3,905 5,587
Operating Profit (663) (2,503) (1,819) (2,092) (1,380) (2,517)
Investments in Technology 433 535 191 123 135 159
Investments in Booknet - 1,934 - - - -
Investments in Ecommerce Partner 74 111 586 - - -
Investments in Int'l Operations 400 1,350 1,350 800 600 600
Burn Rate (1,570) (6,434) (3,945) (3,015) (2,115) (3,276)
Accumulated Burn Rate (b) (3,072) (9,506) (13,451) (16,466) (18,581) (21,857)
(a) End of period
(b) includes initial set up costs and US$ 1.4 MM investment in BookNet acquisition

22. Roll Out Plan

23. Financing Strategy
TBL S/A
Brazil
Booknet S.A.
Argentina
Booknet S.A.
Mexico
Booknet S.A.
Spain
Booknet S.A.
Holland (Holding)
Book Net Limited
Cayman
Shareholders
Current Capitalization
Corporate Structure
• Current capitalization US$ 49 MM
• US$ 2 MM placed with key private investors
(Henry Kravis, Steve Friedman, Paul Wythes,
Bill Sahlman, and others)
GP
Investimentos
ManagementWarburg Pincus
Financing Rounds
Sep 99
Second
Sem. 00
Jan 00
First Round (US$ 14 MM):
Warburg Pincus, GPCPII and private
individuals
Second Round (US$ 30-40 MM):
“Household names”, strategic
investors
IPO (US$ 70-100 MM): US
institutions and retail
13 27
56
4
Private Investors