LEM: Business report (December 08)

Summary
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NAV rose slightly from 3.44 to 3.82 during December 2008 mainly driven due to ending SPO and increase in some positions in our portfolio.
Net profitability of equity after dividend was down to 5.89% /month (10.75%)
Dividend is 0.045 $L /share/month plus bonus of 0.015 $L/share to honor support of investors during 2007

Ending SPO was successful and brought us more of 300’000 $L in cash. We used it to increase our cash position. This cash position will be used to finance new investment projects within SL.
Trading activities were reduced but ended with a win of 86’400 $L. There were any losses.
LEM will continue to develop new financial derivatives expand our financial services for third parties and intense our activities to bring RL companies into SL.

Results for December (November)
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Income ($L):
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Financial products : 181’399 (280’581)
Others : 19’439 (15’825)
TOTAL : 200’838 (296'406)

Expenses ($L):
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Financial Products : 84’154 (101’500)
Donation : 0 (0)
Tier : 6’000 (6'000)
Wages : 10’000 (10'000)

TOTAL : 100’154 (117’500)

Profit ($L) : 100’684 (178’906)

Asset ($L)
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WSE : 4’741’752 (4’571’356)
SLCX : 1’015’474 (848’463)
DSE : 56’230 (62’105)
ISE : 21’740 (27’986)
Land : 6’000 (6’000)
Loan : 0 (0)
Cash : 768’825 (251’053)
Investment : 15’000 (14'000)

Total : 6’651’021 (5’806’963)

Liabilities ($L)
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Loan : 0 (0)
Dividend : 114’895 (84'154)
Total foreign capital : 114’895 (84’154)

Constitutional capital LEM: 1’710’756 (1’663’641)
Constitutional capital LFB: 462’540 (464’480)
Constitutional capital LWI: 130'026 (130’026)
Constitutional capital LHH: 1’572’705 (1'671'590)
LEM Future Fund : 520’000 (518'000)
Reserves : 2’041’415 (1’094'166)
Profit : 100’684 (178’906)
Total equity : 6’536’126 (5’722’809)

Total liabilities: 6’651’021 (5’806’963)

Monthly dividend/share : 0.045 $L /month + bonus of 0.015 $L/share
NAV 3.82 (3.44)


Notes:
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(1) General: Latest rumors tell us that WSE 4.o will probably become operational this month. A marketing campaign may follow in RL to produce awareness among non- SL-users. WSE outlined in their latest announcement that traffic may reach 10 million $L daily. We are less optimistic but even if only part of this will come true we will see moving this stock exchange to new evaluation levels which will also positively influence our portfolio.
(2) Consultancy work was still down this month. This is something we want to increase again in 2008. +
(3) Trading brought 86’400 $L profit. We expect that this value will increase in relation to the introduction of WSE 4.0
(4) LEM keeps an important participation of roughly 5% at HCL. Part of this investment is related to risk management because of our derivative LHH which is a high score product on HCL shares. However, we see these investments as strategical as we believe in the future of WSE.
(5) LFB: The index is still on the down path driven by weighted calculation method (compare with prospectus). At actual prices of 8.62 $L LFB has a profitability of >50% p.a. As already outlined at different times before, only a small increase in HCL and RDX is needed to bring LFB up and then 7% dividend/month would be applicable.

(4) The derivative LWI:WSE will reach its end on 18th January 2008. At the moment a company resolution is running which will end on 7th January 2008. We ask to expand end spot date to 18th July 2008 and to lance a SPO where we want to create a maximum of 500’000 shares. SPO share price will be 1 $L/share. Till today it looks as the resolution will pass. Values for LWI can be followed in real time on our blog http://lemurinvest.blogspot.com

(5) LHH:WSE. No changes. Buy back value is still 3.67 $L/share.

(6) LEM Foundation. We will further invest in Etopia Island to support their sustainable efforts. A new SIM was purchased and ETC will go through a SPO in January/February. LEM will support this SPO financially. This investment reflects our commitment to sustainable investment.

7) LEM Future Fund (LFF): LFF has a portfolio of over 520’000 $L. LFF is a closed fund. Minimal investment is 10'000 $L and at the moment 25% are invested in bonds, 20% in project within SL, 5% in cash and 50% in shares. Inner prices are published weekly on our blog. This week a single part was at 1.16 $L which is an increase of 16% since its creation.

Net profitability of equity after dividend is 5.89% /month
Dividend is 0.045 $L/share/month + bonus of 0.015 $L/share

Next report:
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Next report will be published on February 2, 2008. Updated values for NTA, LFB, LWI and LHH are published on our blog (http://lemurinvest.blogspot.com)

In case of further questions please IM Casper Trebuchet

Greetz
Casper Trebuchet
LEM, CEO
Analyst, WSE

House of derivatives (LFB, LWI, LHH, LEM IPO Booster as not yet approved IPO at WSE)
http://lemurinvest.blogspot.com