ANALYST & PRESS MEETING

2 2 S E P T E M B E R 2 0 1 7

FINANCIAL HIGHLIGHTS

2

LUX ISLAND RESORTS LTD AND ITS SUBSIDIARIESSTATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2017

THE GROUP2017 2016Rs'000 Rs'000

Change

Total Revenue 5,260,500 5,158,157 2%

Operating Expenses (4,006,862) (4,034,330) -1%EBITDA before non recurring items 1,253,638 1,123,827 12%

EBITDA Margin 24% 22%

Profit on disposal of property, plant and equipment 177,884 99

Closure Costs ( LSAA & LGG) (164,618) -Non recurring items 13,266 99 Reported EBITDA 1,266,904 1,123,926 13%Depreciation and amortisation (442,214) (427,472) 3%Operating profit 824,690 696,454 18%Finance costs (241,831) (215,524) 12%Profit before tax 582,859 480,930 21%Income tax (75,123) (62,451) 20%Profit for the year 507,736 418,479 21%Earnings Per Share 3.75 3.06 23%

3

LUX ISLAND RESORTS LTD AND ITS SUBSIDIARIESSTATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

THE GROUP2017 2016Rs'000 Rs'000

ASSETSNon-current assets 10,391,750 10,037,320 Current assets 1,146,409 1,148,837 Non-current assets held-for-sale - 1,037,045 TOTAL ASSETS 11,538,159 12,223,202

EQUITY AND LIABILITIESCapital & Reserves 5,794,057 6,010,852

Non-current liabilitiesInterest-bearing loans and borrowings 2,859,556 2,746,583 Other Long Term Liabilities ( Deferred Tax and Retirement benefit obligations) 662,976 591,687

3,522,532 3,338,270 Current liabilitiesInterest-bearing loans and borrowings 1,107,452 1,363,610 Trade and other payables 1,114,118 984,877

2,221,570 2,348,487 Liabilities associated with assets held-for-sale - 525,593 Total liabilities 5,744,102 6,212,350 TOTAL EQUITY AND LIABILITIES 11,538,159 12,223,202

4

LUX ISLAND RESORTS LTD AND ITS SUBSIDIARIESSTATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017

THE GROUP30 JUNE

201730 JUNE

2016Rs'000 Rs'000

Net cash flows from operating activities 847,527 784,115

INVESTING ACTIVITIES

Acquisition of property, plant and equipment and Intangibles (1,306,088) (813,752)Proceeds from sale of property, plant and equipment 1,262,982 1,974

Net cash flows used in investing activities (43,106) (811,778)

FINANCING ACTIVITIESLong term loans received 682,554 832,375

Payments of long term borrowings (1,095,322) (542,202)Dividend paid (171,381) (294,177)

Net cash flows used in financing activities (584,149) (4,004)

Net increase/(decrease) in cash and cash equivalents 220,272 (31,667)Cash and cash equivalents at 01 July (293,881) (262,214)

Cash and cash equivalents at 30 June (73,609) (293,881)

3,997 4,312

4,655 5,158

June 2013 June 2014 June 2015 June 2016 June 2017

Revenue (Rs M) CAGR 8%

5,438

F I N A N C I A L H I G H L I G H T S

5

2.6

3.9

4.75.2 5.2

June 2013 June 2014 June 2015 June 2016 June 2017

Interest Cover

F I N A N C I A L H I G H L I G H T S

6

5,73

5

5,32

2

4,10

7

4,50

4

3,78

6

844

1,08

9

1,07

8

1,12

3

1,26

7

6.5

4.63.8 4.0

3.0

June 2013 June 2014 June 2015 June 2016 June 2017

EVOLUTION OF DEBT, EBITDA AND NET DEBT/EBITDA RATIO

Debt (Rs M) EBITDA (Rs M) Net Debt/EBITDA

F I N A N C I A L H I G H L I G H T S

7

5,73

5

5,32

2

4,10

7 4,50

4

3,78

6

3,70

7

4,43

7

5,76

5

6,01

1

5,81

2

42% 43%39%

June 2013 June 2014 June 2015 June 2016 June 2017

EVOLUTION OF EQUITY, DEBT AND GEARING

Interest Bearing Debt (Rs M) Equity (Rs M) Gearing

F I N A N C I A L H I G H L I G H T S

55%61%

8

STRATEGY

V I S I ON 2 0 2 0

• Consolidate LUX* development in the Indian Ocean to reinforce leadership position

• Adapt LUX* business model in the long term for continued growth & maximum profitability

• Accelerate LUX* geographical expansion

• Target 5 main regions(China, S.E Asia, Middle East, Europe, Africa)

REINFORCE THE CORE

GROW AROUND

& BEYOND THE CORE

10

L U X * D E V E L O P M E N T S T R A T E G Y

LUX* development strategy revolves around 2 main poles:

REINFORCE THE INDIAN OCEAN HUB

• Uplifting of owned assets

• New Management Contracts within the Indian Ocean Region

GROW LUX* GLOBALLY, FOCUSING ON:

• New Management Contracts outside the Indian Ocean Region

• Diversification by geography & market

21

11

V I S I ON 2 0 2 0

Key indicators

2016

Hotels managed

Regions where LUX* ispresent

10

2

4% Hotel Rooms outside the Indian Ocean

2020+

> 20

5

> 40%

12

V I S I ON 2 0 2 0

14291203

55

1203

2016 2020

No. of hotel rooms

Rooms owned & managed

4% 50%

96% 50%

1484

2406

13

Rooms Managedfor 3rd party owners

Rooms owned & managed

Rooms Managedfor 3rd party owners

I N D I AN O C E AN S T R A T E G Y

Targeted Indian Ocean locations for growth:

Source: JLL I.O Market Update Feb17

SRI LANKAMALDIVES

ZANZIBAR

SEYCHELLES MAURITIUS

REUNION

Mauritius

Sri Lanka

Maldives

Zanzibar

Seychelles

Madagascar

# Tourists (‘000)

Hotel Supply#Keys

RevPar USD

OccupancyLUX* Targeted I.O. locations

14

L U X * D E V E L O P M E N T S T R A T E G Y

Luxury & Upscale Segment

Source: Euromonitor, STR, JLL I.O., Mc Kinsey** REU, Maldives, SEY, Madagascar, Zanzibar & Sri Lanka

Global Luxury Hotel Segment in 2016 represents USD 153.2Bn, of which USD 35.7Bn in Asia and USD 3.2Bn in the Indian Ocean.

0.4 2.8

35.728.3

5 5.9

75.1

Mau

ritiu

s

Indi

anO

cean

Is

land

s**

Asia

Euro

pe

Afric

a

Mid

dle

East

Res

tof

the

Wor

ld

Local Regional International

P R E S E N C E OF L UX *2 0 1 6

15

L U X * D E V E L O P M E N T S T R A T E G Y 2 N D P H A S E :

Expansion by geography - Regions targeted:

** REU, Maldives, SEY, Madagascar, Zanzibar & Sri Lanka

0.4 2.8

35.728.3

5 5.9

75.1

Mau

ritiu

s

Indi

anO

cean

Is

land

s**

Asia

Euro

pe

Afric

a

Mid

dle

East

Res

tof

the

Wor

ld

Local Regional International

T A R G E T E D BY L UX * 2 0 1 7 - 2 0 2 0 +

16

L U X * D E V E L O P M E N T S T R A T E G Y 2 N D P H A S E :

Expansion by market:

Source: McKinsey

Phase 1

BEACH RESORTSLUX* at the Beach

CULTURELUX* in Nature

Phase 2

BEACH RESORTSLUX* at the Beach

CULTURELUX* in Nature

MIXED-USE:Residences/Conference/Business (with a leisure component)LUX* in the City

NICHELUX* Golf

DEC 2011 2016 2017 2020+

5-9

2-4

0-3

5-9

Length of Stay Days

17

L U X * D E V E L O P M E N T S T R A T E G Y 2 N D P H A S E :

Phase 2 (2017-2020+)Strengthening global presence

GREEN:

Owned & managed properties.

RED:

Third party management contracts already signed.

BLUE:

Other targeted locations.

MYANMAR

TURKEYITALYFRANCE

CHINA

ChengduYunnanUAE

OMANTHAILAND

VIETNAMMALDIVES CAMBODIA

SRI LANKAZANZIBAR INDONESIA

SEYCHELLES

MAURITIUS

REUNION

Qingdao Suzhou

ShanghaiShenzhen

Zhuhai

18

L U X * B U S I N E S S M O D E L ( C U R R E N T A N D F U T U R E )

• Lux Island Resorts Ltd (LIR), the listed Company, owns and operates seven hotels and operates Tamassa hotel under a ten year lease

• The management of the hotels has been contracted to LUX Hospitality Ltd (LHL), a subsidiary of LIR.

• In line with the asset light strategy and in order to accelerate the growth path of LHL (Mauritius and abroad), the Board has announced its intention to spin off LHL and list the Company on the Stock Market in the near future.

• The ‘spin off’ would be implemented by way of a distribution in specie to existing shareholders

• Existing shareholders of LIR would retain their ownership proportion in LHL and there would be no need to determine a share exchange ratio.

19

D I S T I N C T B U S I N E S S E S A N D F O C US W I T H W I D ER I N V E S T O R A P P E AL

LUX Shareholders

Lux Hospitality Ltd (‘LHL’)

Lux Island Resorts Ltd (‘LIR’)

92%

Senior Management

team

8%

Listed on SEM

Current structure

• Both LIR and LHL will be listed entities.• The ‘Group’ will benefit from access to a wider pool of investors with different risk/return profiles. • LHL with low gearing, minimal capex and high profit margins, would arguably appeal to investors looking for companies with higher dividend yields.

Post restructuring

LUX Shareholders

Lux IslandResorts Ltd (‘LIR’)

Lux Hospitality Ltd (‘LHL’)

Both listed on SEM

Senior Management

team

20

VA L U E C R E A T I O N A N D U N L O C K I N G

Date Price (USD)

62.1Announcement date 25-Feb-16Spin-off date 03-Jan-17Confirmation of spin-off 26-Oct-16 67.0Post spin-offHilton WorldwidePark Hotels & Resorts Hilton Grand Vacations

4-Jan-174-Jan-174-Jan-17

58.029.925.9

Source: Capital IQ

In Jan 2017, Hilton Worldwide spun off its real estate assets into a REIT ‘Park Hotels and Resorts’ and its timeshare business into ‘Hilton Grand Vacations’. Post spin-off, the combined market value of the three entities went up by 25.0%, reflecting the positive reaction from investors and the market.

“By splitting the company into three entities, they become much clearer in terms of what they offer to shareholders…This bifurcation of the industry has been going on for many years…Hilton had a very clear set of positive precedents around what happens and what kind of response you get from the market, and a very clear road map in how these could be executed.”

David Katz, analyst at Telsey Advisory GroupThe Washington Post, 26 February 2016

22,090 19,134

5,920

2,559

-

5,000

10,000

15,000

20,000

25,000

30,000

Pre-spin off Post-spin off

Mar

ketc

ap(U

SD'm

)Hilton Worldwide 2017 Spin-off

Hilton worldwide Park Hotels & Resorts Hilton Grand Vacations

27,614

21

H I G H E R M U L T I P L E S F O R A S S E T - L I G H T H O S P I T A L I T Y C O M P A N I E S

Lux Island ResortsREITS Hotels – Franchised and managed

100%90%80%70%60%50%40%30%20%10%

0%8 x 10 x 12 x 14 x 16 x 18 x 20 x 22 x 24 x

Percentage of Ownership (%) vs EV/EBITDA(x)

REITAverage multiple

11.8x Franchised & Managed Average multiple14.2x

• The graph above shows the EV/EBITDA of REITS with 100% ownership of the hotels and companies that operate a primarily franchised/managed business model.

• Companies that have a lower ownership percentage and high proportion of fee based revenues tend to have higher EV/EBITDA multiples.

Hospitality REITs (Owned and Leased Out)

14.5x

15.7x

21.8x

9.8x

11.1x

10.6x

12.5x

12.1x

14.9x

9.55x

-

Hospitality Management Companies

5 10

10.9x

10.8x

15 20 25

Marriott

Choice Hotels

IHG

Hilton

Wyndham

Apple Hospitality

Sunstone Hotel Investors

Host Hotels & Resorts

LaSalle Hotel Properties

Park Hotels & Resorts

Xenia Hotels & Resorts

Lux

LTM EV/EBITDA - June 2017

Hospitality companies with a high proportion of fee based revenues and lower financial gearing tend to have a higher valuation multiple than companies with a significant fixed asset base.

22Source: Capital IQ

TAKING LUX* TO THE WORLD

Advertising campaign

24

Spreading the beans

26

Spreading the light

28

New Reasons to go

30

and one more thing…

32

33

LUX* EXPERIENCE APP

Awards

35

LUX* RESORTS & HOTELS

Luxury Hotel Brandby UK Travel Bulletin Star Awards 2016

Luxury Hotel & Resort Operator of the Year by TTG UK Awards 2016

6th among the Top 25 Small Luxury Brands for Value by ReviewPro 2016 Report

‘’Indian Ocean’s Leading Boutique Hotel Brand 2016’’by the World Travel Award Africa & Indian Ocean

36

LUX* BELLE MAREAwarded ‘’The International Hotel of the Year’’ by UK Food

and Travel Award 2016. Ranked 11th among the Top 25

Worldwide Individual Luxury Hotelsby ReviewPro 2016 Report

LUX* LE MORNEEast Restaurant awarded Best Thai Restaurant in Africa

by World Luxury Restaurant Award 2016

LUX* GRAND GAUBE Ranked 18th among the Top 25 Worldwide

Individual Luxury Hotels for Valueby ReviewPro 2016 Report

LUX* SOUTH ARI ATOLL Ranked 16th among the Top 25 Worldwide

Individual Luxury Hotelsby ReviewPro 2016 Report

LUX* SAINT GILLES Awarded ‘’Reunion Island’s Leading Hotel 2016’’

by the World Travel Award Africa & Indian Ocean

TAMASSARanked 3rd among the Top 25 Worldwide

Individual Luxury Hotels for Valueby ReviewPro 2016 Report

37

Investor relations

38

L U X R E S O R T S . C O M

&