Project Aura

Content History of Aura Group The proposition USP Promoters and Management Stock Market Data Group Structure Marketing and Competition Financial Summary

History of Aura Group

Established 1967 to run hotels in Sri Lanka Acquired 2 hotels in Kandy with about 150

rooms Runs 13 guest houses and restaurants across

Sri Lanka with 112 rooms Runs 3 boutique hotels in different locations Proposes to build 2 hotels in Maldives with

225 rooms. The islands have been leased.

The Proposition

To raise USD33mn by offering 35% of the shareholding to part finance construction of Maldives hotels and refurbish existing hotels.

USP Has locations across most of the tourist map

of Sri Lanka The group is one of the most reputed

operators in the tourism sector

Promoters and Management The promoters are one of the oldest and very

reputed business families in Sri Lanka Has one of the strongest hotel management

teams in Sri Lanka The group has won several international

awards for its hotels

Stock Market Data Market Cap (07/2014) USD25mn Book Value (03/2014) USD56mn Share price (22/07/2014) LKR19 52 week high/low: LKR20/LKR14 Total number of shares: 171mn

Group Structure

Holding Company

2 Hotels in Kandy 14 Rest

Houses and Restaurants

3 Boutique Hotels

Project Aura

70.44%

76.54% 100%

100%

Colombo Hotel

Marketing and Competition

The group has tie-ups with international tour operators and with refurbishment of the Colombo and Kandy hotels expects substantial growth in occupancy rates.

There is a growing inflow of Chinese tourists to Maldives and occupancy rates for their Maldives hotels is expected to be high.

17% yoy increase in tourist arrivals to Sri Lanka with a revenue CAGR of 10% for last 2 years.

90% occupancy achieved in Maldives hotels over the past years.

Financial SummaryUSD mn 2012 2013 2014E 2015E 2016E

Total Equity 51 56 62 115 120

Total Assets 63 75 78 181 183

Retained Earnings 38 42 44 47 52

Borrowings 10 7 9 54 51

Revenue 7.1 8.3 9.5 14.1 18.9

Gross Profit 4.8 5.8 7.1 10.6 14.1