Louis plc Group Presentation December 2006
2 Overview of Louis plc The Louis plc Group is a diversified international group whose core competency stems from its 71 year history in the tourism industry. The Group s activities cover two main 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 owns 13 vessels. Hotels - The Group either owns or manages 25 Tourist Hotel units in Greece & Cyprus and 2 Hilton Hotels in Nicosia, Cyprus. Total number of hotel units 27.
3 Overview of Louis plc Key figures 2005 Total Assets 710 million Shareholders equity 258 million 75% of Turnover earned overseas Total Number of employees around 7.000 Total number of guests over 600.000 per year The Group either owns or manages over 27.000 beds. The Group s cruising activities account for approximately 13.000 berths, whereas the hotel activities account for 14.000 beds
Louis plc General Stock Exchange Information 4 Listed : Cyprus Stock Exchange ( CSE ) since 1999 Market : Main CSE Ticker : LUI Indices : FTSE20 και FTSE MED100 (Tel Aviv, Athens, N/sia) Market capitalization : 274,8 m 5th Most marketable security : CSE Price / Book Value : 1,07 (historic 2005) PE Ratio : 20 x (historic 2005) / 13 X (projected 2006) Dividend Yield: 2,0% (2005) Dividend Pay Out Ratio: 40% (based on 2005 profits) No. of shareholders : 25.000 Free Float : 35%
Louis plc Share Price Movement during 2006 5
6 Louis plc - Main Group Companies Louis plc (LUI) - Listed in the Cyprus Stock Exchange (holding company and owner of 13 cruise ships) Louis Hotels Public Company Ltd Public non-listed company (25 resort hotels and 1 city hotel, Hilton Park in Nicosia) Cyprus Tourism Development Public Company Ltd (CTDC) Public non listed company (owner of the Cyprus Hilton Hotel in Nicosia)
Existing Legal Structure (high level) 7 Louis plc 100% Louis Cruises Ltd 99,6 % Louis Hotels plc 76% Cyprus Tourism Development plc Ship Owning 13 cruise liners 25 Beach Hotels + Hilton Park (city hotel) Hilton Cyprus (city hotel) Ship Management Cruising (Louis Cruise Lines) Hotels
Cruising Division Louis Cruise Lines 8 Sapphire Thomson Spirit Sea Diamond (delivery 17 March 2006) Orient Queen (delivery 28 August 2006)
Louis Cruise Lines - activities 9 13 Vessels: Operation of cruises from Cyprus (2 vessels) Operation of cruises from European ports: - Greece (4 Vessels) - Genoa (1 Vessel) - Marseille (1 Vessel) Chartering of Vessels : (5 vessels) 1. long-term - e.g.thomson (4 vessels), Transocean (1 vessel) 2. short-term - various Agents, Foreign Governments and Tour Operators - Floating hotels (e.g. Lisbon 98, G8 summit, 2007 CRICKET WORLD CUP etc)
Louis Cruise Lines - Itineraries 10
Louis Cruise Lines - Types of services offered 11 Louis Cruise Lines main sources of income: Main Categories 2006 2005 2004 2003 Forecast Actual Actual Actual Own Brand operations 53.0% 47.3% 12.0% 28.4% Chartering & Ship Management 47.0% 52.7% 88.0% 71.6%
Louis Cruise Lines Financial Results Analysis 12 250.000 200.000 150.000 100.000 50.000 84.064 14.965 149.714 164.878 34.801 31.894 202.368 46.018 Revenue Euro' 000 EBIDTA Euro ' 000 0 2003 2004 2005 2006
Louis Cruise Lines - Strategic Objectives 13 Maintain leadership position in the Greek and Cyprus market and continue the development of new services Further expansion of Chartering services new agreements with current and prospective partners (e.g Chartering of Arielle as from 2006 to Transocean and the Calypso to TUI as from 2007) Develop 3 rd party ship - management Further expansion in the European markets Continued management of our professional relationship with TUI, Transocean and other major Tour Operators Strategic partnerships to expand further
14 Louis Hotels Public Company Ltd Louis Imperial Beach Louis Apollonia Beach
15 Louis Hotels Public Company Ltd The dynamic growth of the Group s hotel business in Cyprus began in 1978, after the Turkish invasion. The aggressive expansion in Greece began in the 1990 s 26 Hotels in Cyprus, Greece and Egypt (14.000 Beds) Mainly four and five star units 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 Sheik (April 2008) Owner of property in Cyprus and Greece for future tourist projects development Branding of 4 units under Iberostar and 1 unit under Hilton (Hilton Park)
Louis Hotels Locations of Hotels 16
17 Louis Hotels ownership status Louis Hotels Ltd (26) Cyprus (11) Greece (13) 100% 100% Owned Hotels (4) Rented Hotels (7) Owned Hotels (8) Rented Hotels (5) Louis Ayios Elias Louis King Jason (50%) Louis Nausicaa Beach Louis Althea Beach Hilton Park Louis Princess Louis Phaethon Louis Ledra Beach Louis Imperial Louis Apollonia Louis King Alkinoos Louis Grand Hotel Louis Creta Princess Louis Corcyra Beach Louis Kerkyra Golf Louis Plagos Beach Louis Zante Beach Louis Regency Louis Creta Paradise (62,5%) Louis Royal Palace Louis Palazzo Di Zante Louis Imperial Zante Louis Kolossos Louis Apostolata Franchised Hotel Greece (1) Managed Hotel Egypt (1) Mykonos Theoxenia Louis Tiran Sharm
18 Louis Hotels Occupancy levels % occupancy 80 75 70 65 60 55 Cyprus Greece 50 2003 2004 2005 2006
Louis Hotels Sales Geographical Analysis 2005 Euro 94,7 m (+ 20,3 % vs 2004) Final Results 19 Greece 46% Cyprus 54%
Louis Hotels EBIDTAR Geographical Analysis 2005 Euro 28,7 m (+ 29,2 % vs 2004) Final Results 20 Greece 46% Cyprus 54%
Louis Hotels - Strategic Objectives Maintain leadership position in Greek and Cyprus markets 21 Further expansion in neighbouring markets such as Middle East and the Balkans Focus on quality 4 and 5 star hotels (200 rooms<) 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 (creation and spin off or sale of property company) Cost reduction More efficient utilization of Company properties (real estate team)
22 The Cyprus Tourism Development Public Company ( CTDC ) Hilton Cyprus Nicosia (5 star)
23 The Cyprus Tourism Development Public Company The CTDC is the owner of the land and buildings of Hilton Cyprus (24,260 sq. feet) The only 5 star hotel in Nicosia (600 beds) Acquired in November 2001 As from 1 st January 2003 a new Management Agreement with Hilton International replaced the old lease agreement increasing the owner Company s participation in the Hotel s profits as well as its involvement in the running of the Hotel Debt restructuring cost reduction
Louis plc Group 3 rd Quarter 2006 Results and Future Outlook December 2006
Louis plc - Summary Financial Information Nine Months to 30 th September 2006 25 Un audited Consolidated Profit & Loss Account (IFRS) Turnover +18,5% EBIDTAR +25,9% Profit from operations +36,2% 30/9/2006 000 265.216 76.056 45.330 30/9/2005 000 225.309 60.785 33.504 Profit for the period +52,6% Minority Interest Net Profit attributable to Louis plc +62% Earnings per share (cent) +62% 35.150 (1.683) 33.467 7,91 23.174 (2.330) 20.844 4,93
Louis plc - Summary Financial Information Nine Months to 30th September 2006 26 Consolidated Financial Statements Non-Current Assets Total Assets Total Equity and Reserves (+12,6%) 30/9/2006 000 Un audited 675.037 828.130 291.466 31/12/2005 000 Audited 611.285 710.117 258.740 Total Bank Liabilities Finance Leases Cash at Bank 211.578 142.249 36.424 150.816 156.641 25.372
Revenue Breakdown by Activity 2006 full year estimate Louis Hotels (32%) Hilton (4%) 27 Cruises (64%) Total 310 million (expected growth: + 14% vs 2005)
EBIDTAR Breakdown by Activity 2006 full year estimate 28 Louis Hotels (39%) Hilton (5%) Cruises (56%) Total 81 million (growth of +26%) EBIDTAR margin 26,1%
Louis plc - 2006 guidance 29 Based on our forecasts and other information available to date, including oil prices and exchange rates, it is expected that both Operating Profit and Net Profit will increase significantly, compared to 2005
Louis plc - Strategic Objectives 30 Grow cruising business in both existing and new markets through new Charter and ship management agreements. Further development of own brand cruises. Grow Hotel business in new markets through rental and/or hotel management agreements Realise Hidden Value by spinning off or selling of properties Improve Net Debt to Equity ratio Improve Return on Assets
Louis plc Group Thank you for your attention December 2006
Louis plc Group Contact Details : Stelios Kiliaris, Group Executive Director Costas Hadjimarkos, Investor Relations Manager Tel. +357 22588168 Fax +357 22442957 hadjimarkosc@louisgroup.com www.louisgroup.com December 2006
Louis plc Group Presentation December 2006