Louis plc Presentation
June 2008
Overview of the Louis Group
The Louis Group is a diversified international group whose core competency stems from its 73 year history in the tourism industry.
The Group’s 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.
The Louis Group is a leading Hotel and Cruise operator
Louis Group - Main Group Companies
• Louis plc (LUI) - Listed in the Cyprus Stock Exchange (holding company)
• Louis Cruises Limited – Private subsidiary company operator of 11+2 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 non–listed associated company (owner of the Cyprus Hilton Hotel in Nicosia)
Cruising(Louis Cruise Lines)
Hotels
Louis plc
Existing Legal Structure (high level)
100%
Louis Cruises Ltd
99,8 %
Louis Hotels plc
20%
Cyprus Tourism Development plc
Ship Management
Ship Owning/operating13 cruise liners
21 Beach Hotels +Hilton Park (city hotel)
Hilton Cyprus (city hotel)
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 Group’s cruising
activities account for approximately 12.000 berths, whereas the hotel activities account for 12.000 beds
plc
Listed : Cyprus Stock Exchange (“CSE”) since 1999 Market : Main CSE Ticker : LUI Indices : FTSE20 και 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
Louis plc –Stock Market Fundamentals
plc
Louis plc –Share Price Movement vs General Index
plc
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%
plc
Cruising Division – “Louis Cruises Limited”
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)1. long-term - e.g.Thomson (4 vessels) 2. short-term - various Agents, Foreign Governments and TO’s
(eg Orient Queen round the globe winter cruise) - Floating hotels (e.g. Lisbon 98, G8 summit, NATO)
Cruising Division - activities
Business line Brand Product Vessel Area Cruise typeCharter Calypso Salonica 7 day
Emerald Corfu 7 dayT. Destiny Palma 7 dayT. Spirit Palma 7 day
Greece Aquamarine Greek Is. / Turkey 3 day / 4 dayPerla Greek Is. / Turkey 3 day / 4 dayCristal Greek Is. / Turkey 7 day
France Orient Queen East Med. 10 - 11 dayItaly Coral West Med. 7 dayCyprus Sapphire Greek Is. / Holy Land / Eqypt 5 day / 2 day mini
Own-product
Charter
Louis Cruise Lines - Recent DevelopmentsAcquisition of New Generation Vessels
Norwegian Dream
Build date: 1992 Refurbished: 1998 (lengthened), 2006
Tonnage: 50,764 Draught: 7.00
Length: 229.84 Breadth: 32.10
Cabins: 875 Passengers: 2.156
Decks: 10
Detail:
Norwegian Majesty
Build date: 1992 Refurbished: 1999 (lengthened), 2005
Tonnage: 40,876 Draught: 6.20
Length: 207.26 Breadth: 27.60
Cabins: 730 Passengers: 1.790
Decks: 9
Detail:
Cristal
Build date: 1992 Refurbished: 2007
Tonnage: 25,611 Draught: 5.90
Length: 161.70 Breadth: 30.50
Cabins: 480 Passengers: 1,278
Decks: 7
Detail:
2 dining rooms, 4 restaurants, 2 lounges, 3 bars, 2 swimming pools, 4 hot tubslibrary, children's facilities, casino, beauty salon and spa, fitness centre
jogging/walking track, basketball/volleyball court, golf driving net, 11 elevatorsconference center, telephone, fax, satellite telephone, doctor on board.
2 dining rooms, show lounge, swimming pool, whirlpool, casino, 4 elevators, promenade deck, fully air-conditioned, stabilisers, telephone, fax, satellite
telephone, doctor on board.
2 dining rooms, 4 restaurants, 2 lounges, bars, 2 swimming pools, 3 hot tubslibrary, children's facilities, casino, beauty salon and spa, fitness centre
6 elevators, conference center, telephone, fax, satellite telephone, doctor
Cruising Division - Itineraries
Cruising Division - Types of services offered
Main sources of income: Main Categories 2008
Estimate2007
Actual2006
Actual2005
Actual
Own Brand operations
58,9% 50,4% 47,5% 47.3%
Chartering & Ship Management
41,1% 49,6% 52,5% 52.7%
84,064
149,714164,878
196,765211.551
14,96534,801 31,894
41,09228,722
0
50,000
100,000
150,000
200,000
250,00020
03
2004
2005
2006
2007
Revenue Euro' 000
EBIDTA Euro ' 000
Cruising Division – Financial Results
Louis Cruise Lines - SWOT analysis
Weaknesses
Existing capital base
Limited access to new funds to grasp new business opportunities
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
Louis Cruise Lines - SWOT analysis
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
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 LCL’s main source markets for own brand cruises
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
Louis Cruise Lines - Strategic Objectives
Louis Hotels Public Company Ltd (“Louis Hotels”)
Louis Imperial Beach
Louis Apollonia Beach
Active in Hotel industry
• since the early 40’s – Mountain resorts of Cyprus
• in the 50’s – Louis Hotel, Nicosia
• in the 60’s – Ledra Palace, Nicosia
• 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
Louis Hotels - Background
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)
Louis Hotels – Locations of Hotels
Louis Hotels - Cyprus
• 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.
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
Page 25
Louis Hotels - Greece
• 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.
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
Page 26
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.
Page 27
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
Louis Hotels – Financial Results
73,82879,090
95,13399,343
96.356
21,483 22,33128,857
30,02026,940
0
20,000
40,000
60,000
80,000
100,000
120,00020
03
2004
2005
2006
2007
Revenue Euro' 000
EBIDTAR Euro ' 000
Cyprus56%
Greece44%
Louis Hotels – Sales Geographical Analysis2007 Euro 96,4 m
Final Results
Cyprus56%
Greece44%
Louis Hotels – EBIDTAR Geographical Analysis2007 Euro 26,9 m
EBIDTAR Margin 2007 27,9%
Final Results
Cyprus43%
Greece57%
Louis Hotels – EBIDTA Geographical Analysis2007 Euro 13,8 m
EBIDTA Margin 2007 14%
Final Results
Louis Hotels - SWOT analysis
Weaknesses
Existing capital base
Limited access to new funds to grasp new business opportunities
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
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
Further expansion in neighbouring markets such as Egypt 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 (sale and rent back of properties)
Louis Hotels - Strategic Objectives
The Cyprus Tourism Development Public Company (“CTDC”)
• Hilton Cyprus Nicosia(5 star)
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
Audited consolidated financial information ye 31 December 2007
•Profit and Loss account•Balance Sheet
June 2008
Louis plc
plc
2007 Louis plc Revenue Breakdown by Activity
Cruises, 67%
Hilton, 3%
Louis Hotels, 30%
Total € 315 million
plc
2007 Louis plc EBITDAR Breakdown by Activity
Cruises; 50%
Hilton; 4%
Louis Hotels; 46%
Total € 56,8 million EBITDAR Margin 18 % (24% in 2006 – drop mainly due to the Sea Diamond )
plc
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 74.595Profit 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
plc
Consolidated Financial Statements 31/12/2007 €‘000Audited
31/12/2006 €‘000Audited
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
Louis plc - Summary Financial Information Balance Sheet as at 31st December 2007
plc
Louis plc Group Presentation
Thank you for your attention
June 2008
Contact Details : Stelios Kiliaris, Group Executive Director
[email protected]. +357 22588621
Costas Hadjimarkos, Investor Relations [email protected]
Tel. +357 22588160
Chris Theophilides, Business Development Manager Tel. +357 22588678
www.louisgroup.com
June 2008