Galaxy Entertainment : Presentation of 2022 Q4 & Annual Results

Q4 and Annual Results 2022

23 February, 2023

Letter from the Chairman of GEG

I would like to take this opportunity to provide you with a broad market overview and to review the financial performance of GEG in 2022. Macau like the rest of the world continued to experience the impact of COVID-19 throughout 2022, with sporadic outbreaks in Mainland China, Macau and Hong Kong and the subsequent travel and quarantine restrictions impacting visitor arrivals. I am pleased to report that in early 2023 all the travel restrictions were lifted and Macau is well positioned to welcome Mainland and international visitors in 2023.

We are pleased with the reopening of borders in early 2023. Macau has experienced solid demand and associated revenue and we were particularly encouraged by the performance over the Chinese New Year Golden Week. We are hopeful for a sustainable recovery and remain cautiously optimistic.

Additionally, we are delighted to have been awarded a new Gaming Concession by the Macau Government which will be valid to December 31, 2032. Over the next 10 years, GEG will invest nearly MOP28.4 billion to enhance the facilities and services of its integrated resorts, of which over 96% of the total investment will be used for non-gaming projects and exploring overseas customer markets. We are confident in the future outlook for Macau and we look forward to working with all the stakeholders over the next 10 years and supporting the growth of Macau with a particular focus on non-gaming.

Moving onto our financial performance, in Q4 2022 Group Net Revenue was $2.9 billion, down 39% year-on-year and up 43% quarter-on-quarter. Group Adjusted EBITDA was $(0.2) billion, versus $1.0 billion in Q4 2021 and $(0.6) billion in Q3 2022. For 2022 full year Group Net Revenue was $11.5 billion, down 42% year-on-year. Group Adjusted EBITDA was $(0.6) billion, versus $3.5 billion in 2021. Full year Group net profit attributable to shareholders ("NPAS") was $(3.4) billion, versus $1.3 billion in 2021.

Our balance sheet remained healthy and liquid. As of 31 December 2022, cash and liquid investments were $26.4 billion and net cash was $18.9 billion. Debt of $7.5 billion primarily reflects our ongoing treasury yield management initiatives.

We are pleased to confirm that Cotai Phase 3 is effectively completed and we continue with the development of Phase 4. We are scheduled to progressively open Phase 3 Galaxy International Convention Center ("GICC"), Galaxy Arena and Raffles at Galaxy Macau in Q2 2023, with our first MICE event being held in April 2023. This will be followed by world-class concerts K-Pop TREASURE and the highly popular BLACKPINK's world tour to be held in our state-of-the-art Galaxy Arena. We will continue to monitor market conditions and when appropriate we will open Andaz Macau.

GEG is committed to invest in Macau's economic diversification and support the Macau Government's vision of becoming a World Centre of Tourism and Leisure by hosting a variety of world class shows and performances. We will bring known proven events into Macau to support the Governments non-gaming drive. Additionally, we will introduce new and innovative events to further diversify Macau's economy and attract international tourists.

Finally, I would like to extend my sincere appreciation to all of our committed team members whom without their commitment we would not have been able to navigate through the pandemic. Our team members continue to deliver exceptional customer experiences and 'World Class, Asian Heart' service each and every day. Thank you.

Dr. Lui Che Woo

GBM, MBE, JP, LLD, DSSc, DBA

Chairman

February 2023

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Executive Summary

GEG: Well Positioned for Future Growth

Q4 2022

• Q4 Group Net Revenue of $2.9 billion, down 39% year-on-year and up 43% quarter-on-quarter
• Q4 Group Adjusted EBITDA of $(0.2) billion, versus $1.0 billion in Q4 2021 and $(0.6) billion in Q3 2022
• Played unlucky which decreased Adjusted EBITDA by approximately $40 million, normalized Q4 Adjusted EBITDA of $(0.1) billion, versus $0.9 billion in Q4 2021 and $(0.6) billion in Q3 2022

Fiscal 2022

• Full Year Group Net Revenue of $11.5 billion, down 42% year-on-year
• Full Year Group Adjusted EBITDA of $(0.6) billion versus $3.5 billion in 2021
• Full Year Group net profit attributable to shareholders ("NPAS") of $(3.4) billion versus $1.3 billion in 2021
• Full year Adjusted NPAS of $(2.3) billion after adjusting for non-recurring and other charges

February 2023

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Executive Summary

Galaxy Macau™: Well Positioned for Future Growth

Q4 2022

• Q4 Net Revenue of $1.8 billion, down 43% year-on-year and up 71% quarter-on-quarter
• Q4 Adjusted EBITDA of $58 million, versus $763 million in Q4 2021 and $(299) million in Q3 2022
• Played unlucky in Q4 which decreased Adjusted EBITDA by approximately $40 million, normalized Q4 Adjusted EBITDA of $98 million, down 88% year-on-year and up 135% quarter-on-quarter
• Hotel occupancy for Q4 across the five hotels was 33%

Fiscal 2022

• Full Year Net Revenue of $7.4 billion, down 44% year-on-year
• Full Year Adjusted EBITDA of $0.3 billion, down 90% year-on-year

February 2023

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Executive Summary

StarWorld Macau: Well Positioned for Future Growth

Q4 2022

• Q4 Net Revenue of $0.2 billion, down 63% year-on-year and up 56% quarter-on-quarter
• Q4 Adjusted EBITDA of $(142) million, versus $44 million in Q4 2021 and $(169) million in Q3 2022
• There was no luck impact on Q4 Adjusted EBITDA
• Hotel occupancy for Q4 was 45%

Fiscal 2022

• Full Year Net Revenue of $1.0 billion, down 68% year-on-year
• Full Year Adjusted EBITDA of $(0.5) billion versus $0.4 billion in 2021

February 2023

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