Shangri-La Asia Ltd2021 Interim Results27 August2021

1H 2021 Results Highlights

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Results highlights – 1H 2021 vs 1H 2020

Results summary• Mainland China continues to be the bright spot for Group’s recovery YTD June 2021

• Region’s hotels achieved effective share of EBITDA of USD71.1mn (vs loss of USD19.0mn in 1H20)• Hotel May 2021 performance above May 2019, though June slowed down partly due to Guangdong outbreak

• Investment Properties PATMI grew 1.8% YoY, continued to provide stable base for the Group• HK hotels steady growth helped by staycation and quarantine, Australia by staycation• Other regions remained challenging, especially given recent outbreak of delta variant• Investment Properties fair value net gain of USD60.4mn mainly due to associate in Mainland China

USDmn 1H 21 1H 20 YoY (USDmn) YoY (%)

Consolidated revenue 545.8 453.5 92.3 20.4%

Eff. share of revenue 798.2 622.4 175.8 28.2%

Eff. share of EBITDA 199.6 27.8 171.8 618.0%

Operating PATMI (118.1) (255.4) 137.3 53.8%

Total PATMI (59.8) (282.6) 222.8 78.8%

1H 2021 Business Update

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Events of the year• Refreshed brand logo for Shangri-La Hotels and Resorts as part of our 50th anniversary celebrations• Launch of Shangri-La’s family experience brand Fam.ilyTM to target family leisure business• Launch of lucky draw in Hong Kong to support the city’s COVID-19 vaccination. Also provided

support for HK HQ staff to take vaccination.• Close to 90% of all group’s staff received at least one dose of vaccination as at 25 August 2021• Signed conditional SPA on 1 April 2021 with Samty Group to divest 80% of Kyoto project,

transaction to complete by end 2021• Ceased hotel management agreement with Traders Fudu Hotel, Changzhou on 30 June 2021

1H 2021 Business Update (Continued)

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Strong balance sheet• Group cash at USD743.4mn as at 30 June 2021, decrease of USD247.5mn from beginning of year• Reduction of cash mainly due to debt repayment of USD131.6mn, operating cash burn of

USD129.7mn and capex of USD49.2mn, partially offset by repayment of USD57.5mn from associates• Total committed undrawn facilities at USD1.7bn as at 30 June 2021

Prospects• Although the overall vaccination rate at our key markets continue to rise, the recent spread of the

more contagious delta variant is once again causing uncertainties to our businesses• In particular, Mainland China hotel occupancies in early August have already started to see negative

impact as the lockdown measures are once again in place in affected provinces• Remainder of the year will remain challenging

Interim dividend• The Board proposes no interim dividend to conserve cash

Financial Highlights – 1H 2021 vs 1H 2020

(1) Effective Share of Revenue / EBITDA - includes the effective share of Revenue / EBITDA of subsidiaries and associated companies

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• Year-on-year growth mainly driven by improvement of hotels business in Mainland China• Investment Properties continued to provide stable base for the Group• Total PATMI was also helped by fair value net gain mainly from associate Investment Properties

In USD mn 1H 21 1H 20 21 vs 20 % Change

Revenue 545.8 453.5 92.3 20.4%

Effective share of Revenue (Note 1) 798.2 622.4 175.8 28.2%

EBITDA 49.8 (74.8) 124.6 nmEBITDA Margin 9.1% nm

Effective share of EBITDA (Note 1) 199.6 27.8 171.8 618.0%Effective EBITDA Margin 25.0% 4.5%

Operating Segment PATMI (61.9) (198.2) 136.3 68.8%

Corporate, Pre-Opening Expenses and FX 2.6 2.5 0.1 4.0%

Interest Expenses (net) (58.8) (59.7) 0.9 1.5%

Operating PATMI (118.1) (255.4) 137.3 53.8%

Other non-operating items 58.3 (27.2) 85.5 nm

Total PATMI (59.8) (282.6) 222.8 78.8%

Group total hotel on recovery trend, with 1H 21 effective revenue at 49% of 1H 2019 levels, 31% above 1H 2020

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Mainland China hotels effective share of revenue was 76% of 1H 19 levels, 111% above 1H 20 levels

(94.2)

49.1

121.5

141.2

8.1

16.2

(7.6)

(6.9)

1H 2020 1H 2021

Effective Share of EBITDA by Segment – 1H 2021 vs 1H 2020

Effective Share of EBITDA (1)

(1) Effective Share of EBITDA - include the effective share of EBITDA of subsidiaries and associated companies

(2) All Others – include corporate expenses and pre-opening expenses

In USDmn

Hotel Operations

Property Sales & others

Investment Properties

All Others (2)

27.8 199.6

1H 2021 vs 1H 2020

Hotel Properties – increased USD143.3mn to USD49.1mn• Turnaround led by Mainland China, increased by

USD91.3mn• UK increased USD14.1mn, Hong Kong USD11.4mn• SLIM increased USD39.3mn

Investment Properties – increased USD19.7mn to USD141.2mn• China increased USD17.9mn• Sri Lanka increased USD2.0mn• Partially offset by Myanmar decreasing USD0.8mn

Property Sales & Others – increased USD8.1mn to USD16.2mn• Higher sales recognition from associate residential

project in Hangzhou

Var%

618.0%

n.m.

9.2%

16.2%

100.0%

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Corporate Finance and Treasury update

Cash, Debt and Gearing Summary (as of 30 Jun 2021)

1,241

211

735

295

Total 2H 21 1H 22 2H 22

Facilities Maturing in 2021 & 2022

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Gross Debt

Net Debt/EBITDA

96.7x -ve in 2020

EBITDA/Interest Expense

-ve in 2020

$5.6bn $158mn

$4.8bn $0.1bnNet Debt

*

*

*

* Compared to 31 Dec 20** Of which USD680mn has already been earmarked for to be drawn down to replace existing facilities from the same banks

* $743mnCash & cash equivalent

$1.7bn**

Committed Undrawn Facilities

62.1%% Debt at fixed rate

0.5x

• Debt weighted average term reduced due to shorter tenor loans• Committed Undrawn Facilities remained stable, acting as insurance

1,695

5,561

211 1,030 885 929 886 833 412 12 22 341

Comm

itted U

ndrawn

Facilities

Total

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030+

Weighted Term : 3.95 years (4.03 @ Dec 20)

990.9

680.4 743.4

-48.1

-81.8 0.2 -49.275.6

-207.257.5

5.5

Cash at31/12/2020

Cash fromOperations

Net Interestexpense

Net dividends CAPEX* Net proceeds frombonds

Net change inloans

Net loan andinterest

repayment fromassociate

Others Cash at30/06/2021

1H 2021 Cash Flow

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* Includes CAPEX for one of our associates in Hangzhou1. Cash from Operations refers to EBITDA from Subsidiaries at 100% share and HKAS17 basis (including lease related payments) and changes in working capital2. Net Interest expense is on 100% subsidiaries

• Operations cash burn at USD129.7mn• Reduction in debt to help lower future interest expenses

USD

mn

-129.7

Prospects

1H 2021 set the stage for a recovery…

• Global vaccination launch throughout the period provided hope for resumption of normality, where countries with high vaccination rates began planning for pathway to relaxation of travel restrictions

• Early signs of reopening are encouraging, with decent summer bookings in UK, France and Turkey• Steady recovery in Hong Kong sustained by staycation and quarantine demand

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Occ

upan

cy

Hong Kong Turkey United Kingdom France

… However latest Delta Variant once again creating uncertainties• Uncertainties worsened again as the recent delta variant has shown to be more contagious• This has led to a tighter lockdown and restrictions in Mainland China, impacting occupancy beginning August

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• We expect remainder of the year to be challenging, but will remain focused on priorities that are under our control, while keeping our eyes on the horizon for any recovery opportunities

• Continue with asset enhancement at Island Shangri-La, as well as development of mixed developments in Kunming and Fuzhou

• In 2H 2021 we target to open four managed hotels – Beijing Shougang Park, Qiantan, Nanning and Jeddah

0%

10%

20%

30%

40%

50%

60%

70%

80%Mainland China Hotels Occupancy Trend

Appendix

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15

Owned Hotels Under Development

Property Group’s Equity Projected Name (# of keys) Interest Opening

Subsidiaries

• Shangri-La Hotel, Kyoto 100%* Q2 2024

Operating lease agreement

• Shangri-La Hotel, Hongqiao Airport Q3 2024

JV with Kerry Properties Limited

• Jen Kunming by Shangri-La 45% Q1 2023

• Shangri-La Hotel, Zhengzhou 45% Q4 2024

* Will be reduced to 20% after completion of S&P Transaction

HongqiaoAirport

Zhengzhou

Kunming

Kyoto

As of 31 July 2021

16

Shanghai

• Shangri-La Hotel, Qian Tan

• Shangri-La Hotel, Nanning

• Shangri-La Hotel, Shougang Park, BJ

• Shangri-La Hotel, Jeddah

• Shangri-La Phnom Penh, Cambodia

• Jen Qianhai by Shangri-La, Shenzhen

• Shangri-La Hotel, Melbourne

• Shangri-La Hotel, Shenzhen Bay

• Jen Hangzhou by Shangri-La

Nanning

Phnom Penh

Managed Hotels Under Development

Melbourne

Beijing

Qianhai

Hangzhou

As of 31 July 2021

Shenzhen Bay

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• Nanchang City Project • Equity interest: 20%• Phase I: Hotel & residential completed• Phase II – Basement under construction• Projected opening: 2023• GFA: 95,847 sqm

• Shenyang Kerry Centre (Phase II & III)• Equity interest: 25%• Part of phase I development (office &

residential) has been sold and handed over. • Phase III – Residential superstructure under

construction• Projected opening: Phased opening from 2022• GFA: 562,582 sqm

• Kunming City Project*• Equity interest: 45%• Component : Hotel, Commercial &

apartment • Projected opening : 2023• GFA: 64,681 sqm

• Zhengzhou City project • Equity interest: 45%• Component : Hotel, Office,

Commercial & residential • Projected opening : Phased opening

from 2023• GFA: 197,850 sqm

• Tianjin Kerry Centre (Phase II)• Equity interest: 20%• Component: Office, Commercial &

Residential• Projected Opening: 2025• GFA: 138,671 sqm

*Managed by Shangri-La Asia

• Phase II of Shangri-La Hotel, Fuzhou*• Equity interest: 100%• Component: Office + Retail• Projected opening: 2023• GFA: 84,766 sqm

Composite Projects Under Development

As of 31 July 2021

Kunming

Fuzhou

Joint Ventures with KPL (Cont’d)Subsidiaries

Joint Ventures with Kerry Properties Limited

Zhengzhou

Tianjin

Shenyang

Nanchang

6-month profitability trends for our key markets

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Mainland China 1H 21 EBITDA lower due to COVID outbreak and tighter restrictions in first 2.5 months in 2021.

Investment Properties Fair Value Adjustment

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Investment Properties fair value gain mainly from associates in Mainland China

Fair value gains on investment properties (net of deferred tax) 1H 2021 1H 2020Subsidiaries- Mainland China 4.4 (3.7) - Singapore 8.6 (6.2) - Myanmar (11.8) (5.7) - Others 0.8 (1.7) Subtotal 2.0 (17.3) - Associates 58.4 (10.6) Total 60.4 (27.9)

EBITDA & eff. Share of EBITDA – 30 Jun 2021 vs 30 Jun 2020

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Shangri-La Asia hotels (As at 30 June 2021)

21

Owned/leased Managed Total Operating Hotels

Hotels UnderDevelopment

Hotels Rooms (‘000) Hotels Rooms

(‘000) Hotels Rooms(‘000)

Owned Hotels

Hotels Under MgtContracts

73 30.7 15 4.7 88 35.4 3 7

3 1.6 - - 3 1.6 - -

7 2.8 2 0.6 9 3.4 1 2

- - 2 0.8 2 0.8 1 -

Total 83 35.1 19 6.1 102 41.2 5 9