Naviera Armas - staying the course

All,

Please find attached our new model on Naviera Armas here.

Given the successful consent to the restructuring, we are holding on to our 5% of NAV position even if it threatens to become somewhat illiquid for a while and with a view of doubling the investment over the coming 2 years.

The company still controls all the ingredients that should return its EBITDA to above E100m in a normalised economy and normalise we believe the tourism industry (driving all aspects of the economy on the Spanish Islands) will do.

The primary risks stem from future corporate governance and CapEx requirements. The former, we believe will be better controlled, while we have made estimates for the latter.

Here to discuss,


Wolfgang

________________
E: wfelix@sarria.co.uk
T: +44 203 744 7003

www.sarria.co.uk

Wolfgang FelixNAVIERA