Louis plc Presentation

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Louis plc Presentation
June 2008
www.louisgroup.com
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Overview of the Louis Group
The Louis Group is a leading Hotel and Cruise
operator

• The Louis Group is a diversified international
  group whose core competency stems from its 73
  year history in the tourism industry.
• The Groups activities cover the following key
  areas
• Cruising - The Group conducts cruises across
  the globe, either under its own brand or through
  chartering of its vessels to third parties. The
  Group operates 11 vessels and has recently signed
  an agreement to purchase another 2 vessels.
• Hotels - The Group either owns or manages 21
  Tourist Hotel units in Greece Cyprus and 1
  Hilton Hotel in Nicosia, Cyprus. Total number of
  hotel units 22.

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Louis Group - Main Group Companies

• Louis plc (LUI) - Listed in the Cyprus Stock
  Exchange (holding company)
• Louis Cruises Limited Private subsidiary
  company operator of 112 cruise ships
• Louis Hotels Public Company Ltd Public non-listed
  subsidiary company (21 resort hotels and 1 city
  hotel, Hilton Park in Nicosia)
• Cyprus Tourism Development Public Company Ltd
  (CTDC) Public nonlisted associated company
  (owner of the Cyprus Hilton Hotel in Nicosia)

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Existing Legal Structure (high level)
Louis plc
21 Beach Hotels Hilton Park (city hotel)
Hilton Cyprus (city hotel)
Hotels
Cruising (Louis Cruise Lines)
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Overview of Louis plc 2007 Highlights

• Total Assets 704 million
• Shareholders equity 291 million
• Group Turnover 315 million
• Net Profit 12,9 million (2006 21,4 million)
• 70 of Turnover earned overseas (not in Cyprus)
• Total Number of employees around 8.000
• Total number of guests over 600.000 per year
• Louis plc either owns or manages over 24.000
  beds. The Groups cruising activities account for
  approximately 12.000 berths, whereas the hotel
  activities account for 12.000 beds

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Louis plc Stock Market Fundamentals

• Listed Cyprus Stock Exchange (CSE) since 1999
• Market Main
• CSE Ticker LUI
• Indices FTSE20 ?a? FTSE MED100 (Tel Aviv,
  Athens, Nicosia)
• Market capitalization 232 m (0,55/share)
  4rth largest company
• 5th Most marketable security CSE
• Price / Book Value 0,79 (2007 actual)
• PE Ratio 18 x (2007 actual) 11 x (2006 actual)
• Dividend Yield 2,4 (2007 actual)
• Dividend Pay Out Ratio 42 (on 2007 actual) 25
  (on 2006 profits)
• No. of shareholders 22.000
• Free Float 30,1
• Corporate Governance Code Yes

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Louis plc Share Price Movement vs General Index
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Louis plc Shareholder Structure
Major Shareholder C.Loizou family 69,9
Directors - Executive 2,1
Directors Non Executive 0,9
Staff 0,6
Institutional Investors - Cypriot 7,0
Institutional Investors International 1,1
The Public in general 18,4
TOTAL 100,0
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Cruising Division Louis Cruises Limited
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Cruising Division - activities

• Operation of cruises from Cyprus (2 vessels)
• Operation of cruises from European ports
• Greece (3 Vessels)
• Genoa (1 Vessel)
• Marseille (1 Vessel)
• Chartering of Vessels (4 vessels)
• long-term - e.g.Thomson (4 vessels)
• short-term - various Agents, Foreign Governments
  and TOs (eg Orient Queen round the globe
  winter cruise)
• - Floating hotels (e.g.
  Lisbon 98, G8 summit, NATO)

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Louis Cruise Lines - Recent DevelopmentsAcquisit
ion of New Generation Vessels
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Cruising Division - Itineraries
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Cruising Division - Types of services offered

• Main sources of income

Main Categories 2008 Estimate 2007 Actual 2006 Actual 2005 Actual
Own Brand operations 58,9 50,4 47,5 47.3
Chartering Ship Management 41,1 49,6 52,5 52.7
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Cruising Division Financial Results
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Louis Cruise Lines - SWOT analysis

• Strengths
• Diversified revenue base (charters / own brand
  cruises)
• Strategic alliances with Tour Operators
• Specialized know how and expertise, covering all
  aspects of ship management
• Geographical Diversification
• Fleet size has attained critical mass economies
  of scale have set in
• Operating in distinct niche market no head-on
  competition with big players

• Weaknesses
• Existing capital base
• Limited access to new funds to grasp new business
  opportunities

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Louis Cruise Lines - SWOT analysis

• Opportunities
• Healthy outlook for the industry Barriers to
  entry (financing, expertise, scale) will minimise
  new entrants
• Lack of expertise may push potential new entrants
  to seek vessel management and chartering services
  from Louis
• Healthy outlook for LCLs main source markets for
  own brand cruises

• Threats
• Further consolidation in the industry as big
  players continue to acquire smaller operators
• Exposure to risks affecting Tourism sector
  terrorism, political unrest, economic downturn,
  fuel prices

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Louis Cruise Lines - Strategic Objectives

• Maintain leadership position in the Greek market
  and continue the development of own brand
  operations
• Further expansion of Chartering services new
  agreements with current and prospective partners
• Develop 3rd party ship - management
• Further expansion in the European markets
• Continued management of our professional
  relationship with TUI and other major Tour
  Operators
• Renewal and further optimization of fleet

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Louis Hotels Public Company Ltd (Louis Hotels)

Louis Apollonia Beach
Louis Imperial Beach
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Louis Hotels - Background

• Active in Hotel industry
• since the early 40s Mountain resorts of Cyprus
• in the 50s Louis Hotel, Nicosia
• in the 60s Ledra Palace, Nicosia
• The dynamic growth of the Groups hotel business
  in Cyprus began in 1978, after the Turkish
  invasion. The aggressive expansion in Greece
  began in the 1990s

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Louis Hotels - profile

• 22 Hotels in Cyprus, Greece and Egypt (12.000
  Beds)
• Mainly four star units
• Close cooperation with all major tour operators
• Biggest chain of Hotels in Cyprus and Greece
  combined
• Dynamic presence in the most popular tourist
  resorts in Greece and Cyprus
• New Management agreement in Sharm El Sheikh (as
  from 2008)
• Owner of property in Cyprus and Greece for future
  tourist and property development projects
• Branding of 4 units under Iberostar and 1 unit
  under Hilton (Hilton Park Nicosia)

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Louis Hotels Locations of Hotels
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Louis Hotels - Cyprus
  Hotel Name Rooms Location Status
1 Apollonia Beach Hotel 204 Limassol Long Lease
2 Louis Imperial Beach 239 Paphos Long Lease
3 Iberostar Leadra Beach 269 Paphos Long Lease
4 Louis Phaethon Beach 422 Paphos Long Lease
5 Louis King Jason 78 Paphos 50 Owned
6 Louis Nausicaa Beach 195 Protaras Owned
7 King Alkinoos 76 Protaras Rented
8 Louis Althea 150 Protaras Owned
9 Louis Princess Beach 138 Larnaka Rented
10 Hilton Park 194 Nicosia Long Lease
  TOTAL ROOMS 1,965    

• Louis Hotels has consolidated its exposure in
  Cyprus over the last few years. Last hotel to be
  built by the Group was the Althea Hotel in 2004.
• Cyprus market remains fragmented with a lot of
  scope for consolidation and economies of scale.
• Ayios Elias with 150 units has operated as a
  hotel for the last time in 2007 and will be sold
  as individual holiday homes in 2008 / 2009.

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Louis Hotels - Greece
  Hotel Name Rooms Location Status
1 Corcyra Beach 370 Corfu Owned
2 Iberostar Kerkyra Golf 240 Corfu Owned
3 Iberostar Regency 213 Corfu Owned
4 Louis Grand 247 Corfu Owned
5 Louis Zante Beach 268 Zante Owned
6 Iberostar Plagos 161 Zante Owned
7 Creta Princess 420 Crete Owned
8 Louis Colossos 742 Rhodes Rented
9 Apostolata Island Resort 137 Kefalonia Managed
10 Mykonos Theoxenia 52 Mykonos Franchised
  TOTAL ROOMS 2,850    

• Louis Hotels has completed a major growth drive
  in Greece. Major acquisitions completed in 2001.
  Most hotels purchased underwent extensive
  renovation in 2002-2004. Corcyra Hotel was
  extended by 120 rooms in 2006
• In Greece a much higher percentage of properties
  are owned. All properties are on prime locations
  on the beach and have significant real estate
  value.

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Louis Hotels - Egypt

• Louis Hotels is in the process of further
  developing its hotel business in Egypt.
• A 345 Room hotel, the Louis Tiran Sharm is
  already under a management contract and due to
  start operations in November 2008.
• Louis Tiran Sharm will be one of the best
  properties in Sharm El Sheikh on a unique
  location (combination of coral reef and sandy
  beach) and the ideal means for Louis Hotels to
  make its entry in the Egyptian market.

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Louis Hotels Ownership status
No. of Units Cyprus Greece Egypt Total
Owned 4 7 - 11
Leased-LT 5 1 - 6
Rented-ST 2 - - 2
Franchised - 1 - 1
Managed - 1 1 2
Total 11 10 1 22
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Louis Hotels Financial Results
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Louis Hotels Sales Geographical Analysis2007
Euro 96,4 m
Final Results
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Louis Hotels EBIDTAR Geographical Analysis2007
Euro 26,9 m EBIDTAR Margin 2007 27,9
Final Results
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Louis Hotels EBIDTA Geographical Analysis2007
Euro 13,8 m EBIDTA Margin 2007 14
Final Results
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Louis Hotels - SWOT analysis

• Strengths
• Strategic alliances with Tour Operators
• High quality asset base strategically dispersed
  in Cyprus and Greece
• Geographical diversification of client base and
  source markets
• Product differentiation (all-inclusive, family,
  couples only etc.)
• Operating efficiencies hotel portfolio has
  attained critical mass

• Weaknesses
• Existing capital base
• Limited access to new funds to grasp new business
  opportunities

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Louis Hotels - SWOT analysis

• Threats
• Exposure to risks affecting Tourism sector
  economic downturn, fuel prices
• Development of competitive markets in the region
  (Egypt, Turkey, Balkans)

• Opportunities
• Expand into new markets capitalise on existing
  strategic alliances with Tour Operators to reduce
  risk of expansion
• Leverage know-how through provision of hotel
  management services
• Healthy outlook for Greek tourism market
• Further consolidation in a fragmented market

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Louis Hotels - Strategic Objectives

• Further expansion in neighbouring markets such as
  Egypt and the Balkans
• Focus on quality 4 and 5 star hotels (200 roomslt)
• Product differentiation (all inclusive, family,
  sports, special interest)
• Further expansion into the Greek market through
  rental and management agreements
• Management of our professional relationship with
  all major Tour Operators
• Debt reduction/ restructuring (sale and rent back
  of properties)

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The Cyprus Tourism Development Public Company
(CTDC)

• Hilton Cyprus Nicosia
• (5 star)

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Louis plc Sale of 57 of CTDC Ltd (Hilton
Cyprus)

• Completion of sale 13 August 2007
• Sale of 57 of CTDC share capital for cash to MIG
• Cash proceeds in the region of Euro 50 million
• Net Profit from disposal around Euro 15 million
• Louis plc maintains 20 (associate company) and
  Board participation

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Louis plc

• Audited consolidated financial information
• ye 31 December 2007
• Profit and Loss account
• Balance Sheet

June 2008
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2007 Louis plc Revenue Breakdown by Activity
Total 315 million
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2007 Louis plc EBITDAR Breakdown by Activity
Total 56,8 million EBITDAR Margin 18 (24
in 2006 drop mainly due to the Sea Diamond )
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Louis plc - Summary Financial Information Final
Results 2007
Audited Consolidated Profit Loss Account (IFRS) 31/12/2007 000 31/12/2006 000
Turnover 314.748 310.502
EBIDTAR 56.784 74.595
Profit from operations 14.353 35.192
Profit for the period 13.288 23.001
Minority Interest (429) (1.606)
Net Profit attributable to Louis plc 12.859 21.395
Earnings per share (cent) 3,04 5,06
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Louis plc - Summary Financial Information
Balance Sheet as at 31st December 2007
Consolidated Financial Statements 31/12/2007 000 Audited 31/12/2006 000 Audited
Non-Current Assets 593.575 665.050
Total Assets 704.295 758.056
Total Shareholders Equity and Reserves 290.681 277.275
Total Bank Liabilities 199.724 201.555
Finance Leases 116.641 133.802
Cash at Bank 34.128 18.726
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• Louis plc Group Presentation
• Thank you for your attention

June 2008
www.louisgroup.com
41

• Contact Details
• Stelios Kiliaris, Group Executive Director
• kiliaris_at_louisgroup.com
• Tel. [phone]
• Costas Hadjimarkos, Investor Relations Manager
• hadjimarkosc_at_louisgroup.com
• Tel. [phone]
• Chris Theophilides, Business Development Manager
  
• Tel. [phone]
• chris.theophilides_at_louiscruises.com
• www.louisgroup.com

June 2008