Transcript Louis plc Presentation June 2008

Louis plc Presentation
June 2008
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 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.
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)
Existing Legal Structure (high level)
Louis plc
100%
Louis Cruises Ltd
Ship Owning/operating
13 cruise liners
99,8 %
20%
Louis Hotels plc
21 Beach Hotels +
Hilton Park (city hotel)
Cyprus Tourism
Development plc
Hilton Cyprus
Ship Management
Hotels
Cruising
(Louis Cruise Lines)
(city hotel)
Overview of Louis plc – 2007 Highlights
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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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Louis plc –Stock Market Fundamentals
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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
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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”
Cruising Division - activities
Business line
Brand
Product
Charter
Charter
Greece
Own-product
France
Italy
Cyprus
Vessel
Calypso
Emerald
T. Destiny
T. Spirit
Aquamarine
Perla
Cristal
Orient Queen
Coral
Sapphire
Area
Salonica
Corfu
Palma
Palma
Greek Is. / Turkey
Greek Is. / Turkey
Greek Is. / Turkey
East Med.
West Med.
Greek Is. / Holy Land / Eqypt
Cruise type
7 day
7 day
7 day
7 day
3 day / 4 day
3 day / 4 day
7 day
10 - 11 day
7 day
5 day / 2 day mini
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Operation of cruises from Cyprus (2 vessels)
Operation of cruises from European ports:
- Greece (3 Vessels)
- Genoa (1 Vessel)
- Marseille (1 Vessel)
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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)
Louis Cruise Lines - Recent Developments
Acquisition of New Generation Vessels
Norwegian Dream
Build date:
Tonnage:
Length:
Cabins:
Decks:
Detail:
1992
Refurbished:
1998 (lengthened), 2006
50,764
Draught:
7.00
229.84
Breadth:
32.10
875
Passengers:
2.156
10
2 dining rooms, 4 restaurants, 2 lounges, 3 bars, 2 swimming pools, 4 hot tubs
library, children's facilities, casino, beauty salon and spa, fitness centre
jogging/walking track, basketball/volleyball court, golf driving net, 11 elevators
conference center, telephone, fax, satellite telephone, doctor on board.
Build date:
Tonnage:
Length:
Cabins:
Decks:
Detail:
1992
40,876
207.26
730
9
Norwegian Majesty
Refurbished:
Draught:
Breadth:
Passengers:
1999 (lengthened), 2005
6.20
27.60
1.790
2 dining rooms, 4 restaurants, 2 lounges, bars, 2 swimming pools, 3 hot tubs
library, children's facilities, casino, beauty salon and spa, fitness centre
6 elevators, conference center, telephone, fax, satellite telephone, doctor
Cristal
Build date:
Tonnage:
Length:
1992
25,611
161.70
Refurbished:
Draught:
Breadth:
2007
5.90
30.50
Cabins:
Decks:
Detail:
480
7
Passengers:
1,278
2 dining rooms, show lounge, swimming pool, whirlpool, casino, 4 elevators,
promenade deck, fully air-conditioned, stabilisers, telephone, fax, satellite
telephone, doctor on board.
Cruising Division - Itineraries
Cruising Division - Types of services offered
Main sources of income:
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%
Main Categories
Cruising Division – Financial Results
250,000
196,765
200,000
149,714
150,000
100,000
50,000
211.551
Revenue Euro' 000
EBIDTA Euro ' 000
164,878
84,064
34,801
14,965
41,092
31,894
28,722
2007
2006
2005
2004
2003
0
Louis Cruise Lines - SWOT analysis
Strengths
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Diversified revenue base (charters /
own brand cruises)
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Strategic alliances with Tour
Operators
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Specialized know how and expertise,
covering all aspects of ship
management
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Geographical Diversification
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Fleet size has attained critical mass;
economies of scale have set in
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Operating in distinct niche market;
no head-on competition with big
players
Weaknesses
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Existing capital base
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Limited access to new
funds to grasp new
business opportunities
Louis Cruise Lines - SWOT analysis
Opportunities
Threats
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Healthy outlook for the industry;
Barriers to entry (financing,
expertise, scale) will minimise
new entrants
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Further consolidation in the
industry as big players
continue to acquire smaller
operators
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Lack of expertise may push
potential new entrants to seek
vessel management and
chartering services from Louis
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Exposure to risks affecting
Tourism sector; terrorism,
political unrest, economic
downturn, fuel prices
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Healthy outlook for LCL’s main
source markets for own brand
cruises
Louis Cruise Lines - Strategic Objectives
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Maintain leadership position in the Greek market and
continue the development of own brand operations
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Further expansion of Chartering services – new agreements
with current and prospective partners
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Develop 3rd party ship - management
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Further expansion in the European markets
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Continued management of our professional relationship with
TUI and other major Tour Operators
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Renewal and further optimization of fleet
Louis Hotels Public Company Ltd (“Louis Hotels”)
Louis Imperial Beach
Louis Apollonia Beach
Louis Hotels - Background
Active in Hotel industry
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since the early 40’s – Mountain resorts of Cyprus
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in the 50’s – Louis Hotel, Nicosia
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in the 60’s – Ledra Palace, Nicosia
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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 - profile
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22 Hotels in Cyprus, Greece and Egypt (12.000 Beds)
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Mainly four star units
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Close cooperation with all major tour operators
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Biggest chain of Hotels in Cyprus and Greece combined
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Dynamic presence in the most popular tourist resorts in Greece
and Cyprus
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New Management agreement in Sharm El Sheikh (as from 2008)
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Owner of property in Cyprus and Greece for future tourist and
property development projects
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Branding of 4 units under Iberostar and 1 unit under Hilton
(Hilton Park – Nicosia)
Louis Hotels – Locations of Hotels
Louis Hotels - Cyprus
Hotel Name
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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
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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
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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
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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 20022004. 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
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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
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11
Leased-LT
5
1
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6
Rented-ST
2
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2
Franchised
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1
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1
Managed
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1
1
2
11
10
1
22
Total
Louis Hotels – Financial Results
120,000
100,000
80,000
99,343
95,133
73,828
96.356
79,090
Revenue Euro' 000
EBIDTAR Euro ' 000
60,000
40,000
21,483
22,331
28,857
30,020
26,940
20,000
2007
2006
2005
2004
2003
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Louis Hotels – Sales Geographical Analysis
2007 Euro 96,4 m
Final Results
Greece
44%
Cyprus
56%
Louis Hotels – EBIDTAR Geographical Analysis
2007 Euro 26,9 m
EBIDTAR Margin 2007 27,9%
Final Results
Greece
44%
Cyprus
56%
Louis Hotels – EBIDTA Geographical Analysis
2007 Euro 13,8 m
EBIDTA Margin 2007 14%
Final Results
Cyprus
43%
Greece
57%
Louis Hotels - SWOT analysis
Strengths
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Strategic alliances with Tour
Operators
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High quality asset base; strategically
dispersed in Cyprus and Greece
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Geographical diversification of client
base and source markets
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Product differentiation (all-inclusive,
family, couples only etc.)
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Operating efficiencies; hotel portfolio
has attained critical mass
Weaknesses
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Existing capital base
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Limited access to new
funds to grasp new
business opportunities
Louis Hotels - SWOT analysis
Opportunities
Threats
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Expand into new markets; capitalise
on existing strategic alliances with
Tour Operators to reduce risk of
expansion
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Exposure to risks
affecting Tourism sector;
economic downturn, fuel
prices
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Leverage know-how through
provision of hotel management
services
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Healthy outlook for Greek tourism
market
Development of
competitive markets in
the region (Egypt,
Turkey, Balkans)
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Further consolidation in a
fragmented market
Louis Hotels - Strategic Objectives
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Further expansion in neighbouring markets such as Egypt and
the Balkans
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Focus on quality 4 and 5 star hotels (200 rooms<)
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Product differentiation (all inclusive, family, sports, special
interest)
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Further expansion into the Greek market through rental and
management agreements
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Management of our professional relationship with all major
Tour Operators
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Debt reduction/ restructuring (sale and rent back of properties)
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
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Sale of 57% of CTDC share capital for cash to MIG
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Cash proceeds in the region of Euro 50 million
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Net Profit from disposal around Euro 15 million
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Louis plc maintains 20% (associate company) and Board
participation
Louis plc
Audited consolidated financial information
ye 31 December 2007
•Profit and Loss account
•Balance Sheet
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June 2008
2007 Louis plc Revenue Breakdown by Activity
Louis Hotels,
30%
Cruises, 67%
Hilton, 3%
Total € 315 million
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2007 Louis plc EBITDAR Breakdown by Activity
Louis Hotels;
46%
Cruises; 50%
Hilton; 4%
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
(429)
(1.606)
12.859
21.395
3,04
5,06
Minority Interest
Net Profit attributable to Louis plc
Earnings per share (cent)
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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
Contact Details :
 Stelios Kiliaris, Group Executive Director
[email protected]
Tel. +357 22588621
Costas Hadjimarkos, Investor Relations Manager
[email protected]
Tel. +357 22588160
 Chris Theophilides, Business Development Manager
Tel. +357 22588678
[email protected]
www.louisgroup.com
June 2008