Investment Opportunity in Cyprus Development of an International - - PowerPoint PPT Presentation

Investment Opportunity in Cyprus

Development of an International Trade and Exhibition Centre

June, 2016

Preliminary Market Document

Page 2

Opportunity summary

Investment opportunity

• Participate in the development of a unique merchandising exhibition and business Centre, for the promotion, marketing and

sales of Chinese products in Europe, the Eastern Mediterranean and Middle East region.

• The project is fully aligned with China’s development strategy and relevant framework, as announced by the Chinese leader Xi

Jinping.

• The project aims at promoting, Chinese light industry products internationally within the framework of the Chinese

Government’s One Belt One Road initiative. This is a far reaching strategic initiative aiming at enhancing the economic relations

• f China within Europe, Asia and Africa.

The promoters and the team

• IMC International Merchandising Centre Ltd (hereinafter ‘’the Company’’ or ‘’IMC’’) is the main promoter of this project. The

Company was incorporated in the early 80’s and is the developer of one of the largest exhibition centres in Cyprus. IMC has a long experience in the organisation and the hosting of trade events and exhibitions.

• The IMC team is comprised of dedicated professionals with years of relevant experience and strong expertise. Team members

have held key Government positions and private sector senior management posts during their long careers and have excellent network connections within Cyprus and abroad, capable to materialise the business plan. The team is further complemented by the CLBIZ task force engaged specifically for the project. The Project and Strategy IMC plans to upgrade and convert its existing centre into a form suitable to accommodate the proposed business venture. For the purposes of this new business the Company entered into a strategic agreement with China Light Industry Cross-Border Investment Co Ltd (‘’CLIBIZ’’) an industry intermediary organization with service and management functions across China under the auspices of the Chinese government. This partnership provides a significant advantage to the Company since CLIBIZ has the capabilities and appetite to generate the required demand from a large network of Chinese suppliers. CLIBIZ has already established a fully dedicated team based in China with the objective of promoting the venture and attracting local manufacturers to participate in the exhibitions.

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Opportunity summary

Mode of investment The promoters are open to any serious proposal including but not limited to the following option: Preference Shares/ Convertible Bonds

• The Company will issue preference shares or convertible bonds for the investment amount.
• The shares/bonds will have a 10% annual coupon, redeemable in three years time.
• In the case of default or at maturity, the investor can also be provided with an option to convert the shares/bonds into ordinary

shares under a pre-agreed price mechanism.

• The agreement could also include additional safeguards for the investor; such as restrictions on the raising of additional capital
• r the sale of shares/assets of the Company by the shareholders without the investor’s consent etc.
• Other real estate assets of the Promoters could also be used as collateral.

Notes:

• 1. It is noted that the promoters are planning to list the project in the Cyprus Stock Exchange (CSE). This could provide an

additional exit route to the investor.

• 2. It is also noted that the investor might be entitled under certain conditions to benefit from the investment with the issue of a

Cypriot passport under the relevant government naturalization scheme. The Investment Rationale

• Through the transaction, IMC’s shareholders aim to raise funding in the form of either debt or equity. The funds will be used

to fund part of the conversion of the existing IMC centre into an International Exhibition Merchandising Centre.

• This is a unique investment opportunity offering a minimum guaranteed return on investment of 10%.
• The return is secured through a positive cash flow generated by the product and also backed by high value assets of the

promoters. Capital Requirements The total capital required to fund the development and launch of the first phase of the project is estimated at around €3.0 million, from which €2.5 million will be used for construction activities relating to the building conversion and €0.5 million for the initial marketing and promotion.

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Euro China Permanent Exhibition & Merchandising Centre

Euro China business and Merchandising Centre

• IMC will be developing the proposed project under the name Euro China Business and

Merchandising Centre (‘ECBMC’). The Vision

• The vision for the ECBMC is to create a unique venue promoting trade and business

exchanges between Chinese enterprises and their counterparts from European states and

• ther Cyprus neighboring countries in the Middle East and North Africa.
• The ECBMC will provide international traders the ability to inspect and order the products

without having to travel to China. Operational Model

• ECBMC will operate within the framework of the strategic cooperation agreement between

the Promoters and the China National Light Industry Cross-Border Investment Organization.

• The Centre will be transformed into a purpose-built permanent exhibition and merchandising

Centre, constructed in accordance to European standards and specifications.

• The conversion and operation of IMC’s existing exhibition centre into the Euro China Business

and Merchandising Centre, will utilize a wealth of expertise and knowhow accumulated throughout the years, focusing on bringing together Chinese exhibitors originating through CLIBIZ and trade buyers from the lucrative regions of the Middle East, Southern Europe and North Africa. Advantages

• Currently there is no identical or similar project involving Chinese exhibitors, promoting and

trading their products, neither in Cyprus nor in nearby regions of Europe, Middle East and North Africa.

• The establishment of the Centre shall create a unique opportunity for small and medium

traders from Europe and the wider region to select and procure from a big variety of Chinese Light Industry products. The Centre shall also contribute to the strengthening of the economic relations between Cyprus and China, in line with the treaties signed between two governments.

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Company Background & History

• The Company was incorporated in 1983 and its main activity is the
• rganisation and hosting of international trade events. In 1995

IMC completed the development of the existing exhibition centre at a strategic location in the entrance of Nicosia. The IMC Centre has been used, since then, as an exhibition and retail centre hosting among others, high profile exhibitions like ‘’The Best of China featuring Chinese products and services’’, the ‘’Fast Fashion Fair’’, the ‘’International Technology Fair’’, the ‘’International Travel & Tourism Fair’’ and the ‘’International Franchising Exhibition’’. It also operated as a successful shopping mall for a number of years, under a lease agreement hosting a number of international brands. In parallel, in the period between 2000-2008, part of the building was also home to the Cyprus Stock Exchange.

• During the last years the Promoters saw the opportunity of Cyprus

becoming a trade hub between East and West and for these purposes decided in October 2015 to develop the ECBMC, utilising its long-standing relationships with the Chinese business world.

Promoters and CLIBIZ partnership

Legal structure Strategic partnership with CLIBIZ

• China Light Industry Cross-Border Investment Co Ltd (‘’CLIBIZ’’) is

an industry intermediary body under the Chinese government, acting as an umbrella organisation for about 650,000 businesses with exports totalling about $900bn. As part of its agenda, CLIBIZ aims at turning Cyprus into a real gateway for Chinese SME’s to Europe and the wider surrounding regions.

• CLIBIZ is controlled by a government organization, the China

National Light Industry Council (‘’CNLIC’’). CNLIC was established in 2001 and its goal is to act as a bridge between the Chinese government and the private sector, representing a wide range of the service and production enterprises. The organization promotes the development of the light industry in China and strengthens the relevant international exchange and cooperation.

• As already noted the strategic agreement signed between IMC and

CLIBIZ provides for a cooperation between the two parties with the aim of establishing the ECBMC centre as a permanent showcase for Chinese products with emphasis on those of the Light Industry sector.

• CLIBIZ has already established a fully dedicated team based in

China, working exclusively on this cooperation and the promotion of ECBMC to local manufacturers and regional associations across the whole of China.

• The agreement with CLIBIZ provides for a minimum number of

exhibitions in a year, thus guaranteeing the demand side for the product.

Note: CDFC Cyprus Development and Finance Company Ltd (‘’CDFC’’) is the holding company of IMC. This Company has almost three decades of experience in organising International Exhibitions and Trade Shows.

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IMC and CLIBIZ have gathered together a group of renowned professionals for the development of this project. The team brings together decades of relevant know how, experience and strong expertise across various sectors; including, among others successful businessmen, an ex Minister, an ex Director of the Planning Authorities and a number of experienced senior managers from large private organistations.

• Executive Chairman: Mr. Andreas Kaisis, an entrepreneur and

business man with decades of experience in various sectors of economic activity including property development, property management, tourism, finance, international trade and business, and organisation and management of international exhibition and merchandising centres.

• Executive Director: Mrs. Maria Kaisis, a lawyer and a business

woman with long experience in property development and the

• rganisation of physical and online international exhibitions. Mrs.

Kaisis has wide knowledge of the Gulf and Middle Eastern Markets.

• Executive Director: Dr. Stelios Kiliaris, an economist and a former

Minister of Energy, Commerce, Industry and Tourism of the Republic of Cyprus, also former Acting Minister of Finance of the Republic of Cyprus and former Executive Director of the Central Bank of Cyprus. Dr. Kiliaris has served for many years as the CEO

• f one of the largest cruising companies in Cyprus and Overseas.

He also served on the Board of Directors of a number of other and public companies and associations.

• General Manager: Mr. Michalis Michael, an Economist and an

Exhibitions and Trade expert, who has served among others as General Manager of the Cyprus State Fairs Authority. Mr Michael also has wide experience in Human Resources and Operations Management.

The right team for the Project

• Financial Manager: Mr. Iacovos Constantinides, an Economist and

Business Consultant, with wide experience in project management, manufacturing, retailing, sales and distribution channel

• management. He has been involved in numerous commercial

property development projects. Mr. Constantinides has served on the Board of Directors of a number of private and public companies and professional and business associations.

• Technical Manager: Mr. Christos Ktorides, an Architect – Engineer

who has served as General Director of the Town Planning and Housing Department of Cyprus. Mr. Ktorides has been involved in the licensing of most major development projects in Cyprus over the past 37 years.

• Exhibitors

and Buyers Logistics Manager: Mr. Costas Panagopoulos, an Economist with long experience in similar positions with the Kaisis Group.

• Support Services Manager: Mr. Sokri Ibrahim, with various

degrees in management, including an MBA. Mr. Ibrahim speaks nine languages and has a long management experience, both in Cyprus and abroad, including the Kaisis Group. He worked in a similar position when the IMC Building was operating as a Merchandise Centre.

• CLIBIZ team: CLIBIZ established a dedicated team based in China

to work exclusively on the project and the cooperation with IMC. The team is comprised of a General Manager, an International Relations Manager, two National Coordinators and five Regional Managers of IMC regional centres established in the regions of GuangDong ShunDe City, Guangdong Zhaoqing City, Chongqing Province, XiAn City and GuiZhou ZunYi City.

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Cyprus is the ideal country for the development of the Centre

• Cyprus’s strategic location at the crossroad of three continents (Europe, Africa,

Asia) and in the middle of the New Silk Road Belt and the new Maritime Silk Road creates a unique opportunity for its establishment as a central trade hub between Europe, Middle East and North Africa.

• As a full member of the European Union, Cyprus offers a range of additional

advantages relating to international businesses. More importantly, it is the eastern gateway to the EU and the member state nearest to the emerging markets of the Middle East and North Africa.

• Cyprus has excellent political and commercial relations with all its neighbours.

Moreover, it enjoys a stable open market economy, an advanced Infrastructure and communicating network, a stable political system with a western type democracy, and a favourable foreign investment regime.

• The country also has a favourable tax regime with more than 60 double tax

treaties in place with various countries. Dividend income, most international transactions, profits from overseas permanent establishments and profits from the sale of securities are exempt from tax. There is also no withholding tax on dividend, interest and royalties paid from Cyprus.

• Cyprus is a dynamic business centre that offers relatively lower operating costs

while also providing high level and top quality professional services, including accounting, auditing, tax, business administration, legal, investment and funds management.

• Cyprus has a comprehensive, modern and forward-looking legal and regulatory

framework based on English Common Law principles. The country's legal framework is widely recognized as a business-friendly and effective system, that allows for reliable and transparent business practices. The Cyprus legal framework is fully aligned with EU laws and regulations. There are a number of advantages favouring Cyprus as the location for the development of the proposed Centre One Belt, one Road map Silk Road economic belt: The Silk Road connects the West and East, from China to the Mediterranean Sea. Maritime Silk Road: also known as the "21st Century Maritime Silk Road" is a complementary initiative aimed at investing and fostering collaboration in Southeast Asia, Oceania, and North Africa, through several contiguous bodies of water, such as the South China sea, the South Pacific Ocean, and the wider Indian Ocean area.

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Cyprus is at the centre of the target markets

BAGHDAD KUWAIT BAHRAIN QATAR TEHRAN ASHGABAT ASTANA BAKU CAIRO TIRPOLI ASWAN THUWAI LIBYA EGYPT

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Asset Description

Asset Description

• The ECBMC will be developed in the premises of the existing IMC centre

(the ‘’Building’’), shown in the photograph on the left.

• The Building comprises of 5 floors with a total usable space of 12,510

square metres as shown in the Table below.

• The building is already licensed to operate as a wholesale trading centre.
• According to a valuation performed by an independent professional

valuer (Landtourist Valuations LLC) in January 2016, the market value

• f the land and buildings is estimated at €41.5m.

Part Description Area (square meters) Basement Usable area 2,576 Void & Ducts 1,755 Total 4,331 Ground floor Usable area 2,953 Void & Ducts 1,586 Total 4,539 First floor Usable area 2,760 Void & Ducts 1,648 Total 4,408 Second floor Usable area 3,065 Void & Ducts 1,177 Total 4,242 Third floor/Roof Top Usable area 1,156 Total sqm 18,676 *Current condition of the IMC Building. *Current condition of the interior of the building.

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The Development Plan

Conversion of the Building

• The Building is currently set-up as a shopping mall, serving its previous use. The change in

use of the Building to that of a merchandising and exhibition centre requires significant changes to the interior of the building. The Company has prepared a relevant plan and studies for the proposed conversion. The cost is estimated at around EUR 4.5 million.

• The management decided to break down the conversion into two phases. The first phase will

be fully operational in October 2016 and its cost is estimated at around €2.5m. Phase 1 (Interim Period)

• The interim period utilises the ground floor space in full, while only the central parts of the

first and second floor will be utilised. The investment of €2.5m will be used for the conversion of this area only, including mainly structural and electromechanical works. A more detailed breakdown of this cost is included in Appendix A. Phase 2 (Permanent Period)

• After the finalisation of Phase 1, the company shall proceed with Phase 2, comprising of the

construction and operations of 500 additional pavilions and a business centre, at a cost of €1.5m.

• The management plans to fund the refurbishment and upgrade of the rest of the building, by

using the cash-flow generated during the interim period.

• Thereafter the Building shall be used as a permanent exhibition centre with minimum rental

periods of 6 months.

Ground floor layout

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Interim Period: Construction Plan

• The modifications include primarily work in the interiors of the Building relating to the

conversion of separate shops to an open exhibition plan. Three out of the five floors of the permanent exhibition centre will have the same layout as the typical floor plan that can be seen at the left.

• The other two floors will have, for half of the overall space, the same layout as the typical

floor plan and in the remaining space they will house various other services (business centre, small orders execution department, restaurants and cafeterias). Interim Period: Operational Plan

• During the first year of operation, which shall start by the end of September 2016, there shall

be four main revolving exhibitions which shall last for just over 50 days each and four smaller exhibitions which shall last for three weeks each (thus allowing time for changes in exhibitors).

• During the interim period of operation, 500 pavilions are expected to be rented out at a rent
• f €3,750 each for 3 months (refer to Appendix B for more details).
• The total exhibition space of the refurbished area, for the first phase, totals 7,238 square

metres, which fully covers the area required for the 500 pavilions.

• Trade exhibitors will have the option of displaying their products in either Individual Pavilions
• r in the Groupage Section.
• Individual Pavilions located in the middle of each floor range from 12 to 18 square metres

each, while those perimetrically range from 20 to 72 square meters each. The individual pavilions of the first floor are almost ready, their current condition is presented in Picture 1.

• Groupage Sections range from 148 to 216 square metres and there are 7 Groupage sections
• n each floor.

The Construction and Operational Plan

Picture 1: first floor’s individual pavilions, currently at construction stage

The indicative dates of the main exhibitions:

Exhibition name: Date Autumn Exhibition 23 Sep – 17 Nov ‘16 Winter Exhibition 1 Jan – 21 Feb ‘17 Spring Exhibition 1 Apr – 24 May ‘17 Summer Exhibition 1 Jul – 24 Aug ‘17

Typical floor layout

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Marketing Plan

EuroMed TDS In 1998 various National Chambers of Commerce and Federations of Entrepreneurs of the countries of the Mediterranean Region, came together to create the "Euro-Mediterranean Trade, Distribution and Services Initiative", Euro-Med TDS. The goal of Euro-Med TDS is to facilitate and create business opportunities among the business community of the Euro-Mediterranean region. In order to achieve this aim, members affiliated with the association:

• Establish common lines of actions and propose solutions to overcome barriers to thefree flow
• f goods and services in the Euro-Mediterranean region;
• Organize joint activities to promote the economic development of the Euro-Mediterranean;
• Foster common actions aiming to expand the use of Information Technology and Platforms

dedicated to the Supply and Demand of goods and services that circulate within the region and the global market. Marketing The ECBMC will be promoted through an extensive programme of supporting marketing actions and events. The initial budget for this marketing plan is estimated at around €0.5m and includes among others the following:

• Agreement with EuroMed TDS for the promotion of the Centre to its 8,000,000 members,

many of them are SMEs, and thus prospective trade buyers;

• Direct mail and other marketing campaigns;
• Advertisement in local and international business publications;
• Publicity through magazines, newspapers and supplements;and
• Online Promotion via the ExpoOnline Global Network.

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Timeline

Timeline of the Project

Apr Mar Feb Jan Dec Nov Oct Sept Aug July Jun May Pre opening period Conversion Marketing Grand Opening Autumn Exhibition Winter Exhibition Spring Exhibition Sept Aug Jun Interim Exhibition 1 Interim Exhibition 2 May Jun July Aug

Interim Period

Summer Exhibition Interim Exhibition 3

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Financial summary

The main sources of revenue for the Centre will be:

• Rental income from the renting of exhibition space (individual
• r groupage);
• Entertainment/ F&B revenue;
• Business centre revenue;
• Additional support services to tenants: logistics, clearings,

travel/accommodation services;

• Commission income on sales of exhibitors achieved during

exhibitions;

• Retail sales from warehouses.

The Centre will initially house five broad product categories as listed below, with others to follow once the operations are established:

• Home indoor and Outdoor products;
• Fashion, Beauty and Personal Care and Giftware;
• Office Equipment and Supplies;
• DIY including Hardware and Tools;
• Sports & Leisure.

*Please refer to Appendix B for more details.

Financial Summary

INTERIM YEAR Year 1 Year 2 Year 3 Year 4 Year 5 Revenue (EUR'000) 8,625 20,016 25,132 27,668 28,247 28,839 Total Expenses (EUR'000) 6,789 9,359 10,262 10,798 11,075 11,361 EBITDA (EUR'000) 1,836 10,656 14,869 16,870 17,172 17,478

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Appendix A – Analysis of investment opportunity

Item Description Required amount (€’000) Walls Demolition of internal walls(plasterboard/bricks), including removal/transport (900mX5m= 4,500m2xEUR30/m2) 135 Floors 30% of Floor surface with marble look ceramics (5,000m2XEUR10/m2) 50 Remaining floor surface carpenting (3,000m2X10EUR/m2) 30 Suspended ceilings Demolition and removal of suspended ceilings (18,000m2X3EUR/m2) 54 New Suspended Ceilings (5,000m2XEUR8/M2) 40 Plaster & glass dividers Plaster & Glass Dividers (Internal Pavillions) - (800mX2.5M Height=2.000m2XEUR50/m2)=EUR 100.000X2 Floors) 200 Main walls All main walls repairs and painting 100 Electromechanical Including Air-Conditioning 875 Fire systems Based on specifications 150 Plumbing & sanitary 100 IT wiring & servers 100 Security system 40 Stand-by generator 30 Furniture/fittings For Business Centre, Receptions, Coffee Shop & Restaurant 50 Showcases/shelves Showcases & Adjustable Shelves for Groupage Section (800m2X2Floors) 200 Landscape & parking 50 Various 150 Professional fees 5% on above 113 Total refurbishment cost: 2,467 Promotion expenses 500 Total investment required: 2,967

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Appendix B – Financial projections

Notes INTERIM YEAR Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 INTERIM PAVILIONS INCOME 1 € 7,500,000 Individual Exhibition Space 1 € 7,107,186 € 9,002,435 € 9,902,679 € 10,100,733 € 10,302,747 € 10,508,802 € 10,718,978 € 10,933,358 € 11,152,025 € 11,375,065 Groupage 1 € 10,674,893 € 13,521,531 € 14,873,684 € 15,171,158 € 15,474,581 € 15,784,072 € 16,099,754 € 16,421,749 € 16,750,184 € 17,085,188 Retail € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 Entertainment & F&B 2 € 150,000 € 250,000 € 300,000 € 330,000 € 336,600 € 343,332 € 350,199 € 357,203 € 364,347 € 371,634 € 379,066 Business Centre 3 € 150,000 € 250,000 € 300,000 € 330,000 € 336,600 € 343,332 € 350,199 € 357,203 € 364,347 € 371,634 € 379,066 Additional Support Services to Tenants 4 € 225,000 € 533,462 € 675,719 € 743,291 € 758,157 € 773,320 € 788,786 € 804,562 € 820,653 € 837,066 € 853,808 Commission Income on Turnover 5 € 300,000 € 600,000 € 720,000 € 864,000 € 907,200 € 952,560 € 1,000,188 € 1,050,197 € 1,102,707 € 1,157,843 € 1,215,735 Rent Retail Sales Area at the AB Alpha Operations Building & Other Income from Warehouse 6 € 300,000 € 600,000 € 612,000 € 624,240 € 636,725 € 649,459 € 662,448 € 675,697 € 689,211 € 702,996 € 717,056 TOTAL INCOME € 8,625,000 € 20,015,541 € 25,131,685 € 27,667,894 € 28,247,172 € 28,839,331 € 29,444,695 € 30,063,594 € 30,696,372 € 31,343,381 € 32,004,983 Initial promotional and launch expenses 7 € 500,000 Utilities (Electricty. Water, etc) € 1,080,000 € 1,920,000 € 1,958,400 € 1,997,568 € 2,037,519 € 2,078,270 € 2,119,835 € 2,162,232 € 2,205,476 € 2,249,586 € 2,294,578 Administration, Sales & Marketing Expenses € 3,883,800 € 4,272,180 € 4,400,345 € 4,532,356 € 4,668,326 € 4,808,376 € 4,952,628 € 5,101,206 € 5,254,243 € 5,411,870 € 5,574,226 Commision Of Light Industry Association 8 € 1,125,000 € 2,667,312 € 3,378,595 € 3,716,454 € 3,790,784 € 3,866,599 € 3,943,931 € 4,022,810 € 4,103,266 € 4,185,331 € 4,269,038 Rent for AB Alpha Operations Building 6 € 200,000 € 500,000 € 525,000 € 551,250 € 578,813 € 607,753 € 638,141 € 670,048 € 703,550 € 738,728 € 775,664 TOTAL EXPENSES € 6,788,800 € 9,359,492 € 10,262,340 € 10,797,628 € 11,075,442 € 11,360,998 € 11,654,535 € 11,956,296 € 12,266,535 € 12,585,515 € 12,913,506 PERMANENT EXHIBITITION COMPLEX EBITDA € 1,836,200 € 10,656,049 € 14,869,345 € 16,870,266 € 17,171,730 € 17,478,333 € 17,790,160 € 18,107,298 € 18,429,837 € 18,757,866 € 19,091,478

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Appendix B – Financial projections

Notes:

• Note 1: Rental income from exhibition space:

− An agreement was signed between IMC and CLIBIZ in April 2016 whereby CLIBIZ shall secure exhibitors for all 500 pavilions for the Autumn Exhibition. − The rent for each pavilion shall be €3,000 for each of the Main Exhibitions and €1,500 for each of the Additional Exhibitions, payable in advance. − The rental amount for Chinese exhibitors may be in most cases fully subsidised by the Chinese Government, thus making the participation decision by exhibitors much easier. − Any exhibitor who chooses to rent a pavilion for two consecutive Main Exhibitions shall have the right to use the pavilion he rents for the intervening Additional Exhibition, free of any charge. − Based on the above, the average estimated rental income for each pavilion will be €3,750 for every three months (assuming that 50% shall take advantage of the free period and keep their pavilion for the next period). − Each exhibitor shall also be allocated storage space of 70mᵌ, in a separate storage house to be designated by IMC, without any additional charge, for the period the exhibitor shall rent a pavilion. Rental income analysis for interim year:

Number of pavilions 500 3-month rent for each pavilion € 3,750 Number of main exhibitions per year 4 Total rental income for interim year € 7,500,000

• Note 2: Entertainment and F&B revenue: from 300sq.m. cafeteria serving food/drinks/coffee outsourced

to interested third party.

• Note 3: Use of business centre: 300sq.m. for office space, meeting rooms, translation services, secretarial

services.

• Note 4: Additional support services to tenants: logistics, clearings, travel/accommodation services.
• Note 5: Commission income on sales achieved by exhibitors during exhibitions. It is assumed that the

average sales of each pavilion shall be around EUR 40.000 per annum, ECBMC will be entitled to 3% commission on that sales.

• Note 6: Income from the warehouses and relevant rental expense payable to a third party (AB Alpha

Operations).

• Note 7: The budget of €0.5m will be used for targeted advertising in press and media as well as for the

launch event of the first Exhibition at the end of October. The majority of the expense relates to EuroMed TDS, who is also planning to host its annual conference at the IMC at the time of the launch in order to raise publicity for the initiative.

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Contact Person

Contact Details

Mr Andreas Kaisis Executive Chairman Kaisis Group of Companies Tel: +357 22 581400 E-mail: kaisis@cdfc.co Mr Stelios Kiliaris Group Executive Director Kaisis Group of Companies Tel: +35722581505 E-mail: stelios@cdfc.co