Louis plc Presentation

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

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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

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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”

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



Cabins: 730 Passengers: 1.790

Decks: 9

Detail:

Cristal

Build date: 1992 Refurbished: 2007



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

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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

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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.

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

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2007 Louis plc Revenue Breakdown by Activity

Cruises, 67%

Hilton, 3%

Louis Hotels, 30%

Total € 315 million

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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 )

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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 74.595Profit 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

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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

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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

[email protected]

www.louisgroup.com

June 2008

Louis plc Presentation

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