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3 NEWS 10.09.2020 FROM PAGE 1 January was a positive month for both sectors, however by February, the ho- tels started to see significant cancella- tions in confirmed business. March was the negative turning point for all the Group's business operations as Gov- ernment announced the complete shut- down of restaurants, gyms and other entertainment and leisure outlets, and the closure of the Malta International Airport. According to Eden Group's financial analysis summary, net cash outflows from financing activities amounted to €5.4 million in FY2019 (FY2018: €5.8 million), reflecting the payment of dividends amounting to €3.1 million (FY2018: €3.5 million) and repayment of bank borrowings of €2.3 million (FY2018: €2.3 million). In FY2020, net cash inflows from financing activities are expected to amount to €1.2 million, comprising the drawdown of a €4 million bank loan which was approved through the Malta Development Bank Guarantee Facility, and repayments of borrowings totalling €2.8 million. Total assets of the Eden Group as at 31 December 2019 amounted to €199.3 million (FY2018: €185.7 million). In FY2020, the principal movements comprise a decrease in cash and cash equivalents of €6.6 million, from €10.2 million in FY2019 to €3.6 million, while bonds and borrowings are expected to remain broadly unchanged at €52.8 mil- lion. e gearing ratio of the Group de- creased on a y-o-y basis, from 32% in FY2018 to 28%, following the positive movements in cash balances and ma- terial increase in shareholders' funds. An alternative to assessing leverage is the net debt to EBITDA ratio, which improved from 4.00 years in FY2018 to 3.26 years, due to the increase in EBIT- DA in 2019 and a decrease in net debt. e Group's leverage for the forecast year is expected to increase by 4 per- centage points to 32%. Eden Group's COVID-19 response Since February 2020, the Group's management has been actively working on processes and procedures to miti- gate against closure, particularly with regard to payroll, where a number of measures including a reduced working week and the using up of annual leave were enacted. Furthermore, the Group's operational expenses are being reduced by the wage subsidy scheme introduced by Govern- ment. During this period, management uti- lised its staffing resources to carry out previously planned improvements in the Group's properties and projects that were difficult to undertake while the hotels were operational. e Direc- tors are aiming to reduce non-essential costs to a bare minimum while at the same time, as much as it is seen to be prudent, to complete the upgrading of the Group's properties. Over the first six months of the year an unprecedented amount of refurbish- ment work was carried out in the ho- tel bringing the refurbishment project close to an end. e remaining hard refurbishment of the bathrooms is ex- pected to be completed by Q1 2021. Since all business units are back in op- eration all staff have been returned to working conditions albeit with a safe- ty-first approach. e true extent of the effects of the crisis will be based on the actual time of the disruption. Despite the gradual re-opening of the Group's business ac- tivities in June/July 2020, the Directors expect that tourism will remain hard hit for a long period of time. Accordingly, it is not possible to reliably estimate the duration and severity of these conse- quences, and predictions, financial or otherwise, remain highly subjective. True extent of COVID-19 financial impact yet to be determined In comparison to its competition, the InterContinental Malta's performance indicators were below the benchmark in each of the financial years FY2017 to FY2019, although an improvement in RGI has been noted for FY2019 (which increased from 0.82 in FY2018 to 0.90 in FY2019). The underperformance is principally due to the larger room capacity of the hotel compared to its competitors; and the inland location of the Hotel which presents a competitive disadvantage, given that most 5-star hotels are seafront properties Bay Radio retained the number one spot as the most popular station with 20.41% of all radio listeners, followed by the next two radio stations with 19.80% and 12.50% respectively. FY2019 was a very good year for Bay Radio as it registered a 23% improvement in profitability.

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