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(incorporated in Hong Kong with limited liability)

(Stock Code: 880) ANNOUNCEMENT


The board of directors (the "Board") of SJM Holdings Limited (the "Company") is pleased to announce selected unaudited key performance indicators of the Company and its subsidiaries (collectively the "Group") for the three months ended 30 September 2013 ("Q3 2013") to enable its shareholders, investors and the public to better appraise the position and business performance of the Group.

2013 THIRD QUARTER HIGHLIGHTS (UNAUDITED)

• Profit attributable to owners of the Company in Q3 2013 increased by 10.3% over Q3
2012 to HK$1,827 million.
• Adjusted EBITDA1 of the Group in Q3 2013 increased by 8.0% over Q3 2012 to
HK$2,043 million.
• Adjusted EBITDA Margin2 of the Group in Q3 2013 was 9.6%, as compared with 9.9% in
Q3 2012.
• Gaming revenue of the Group in Q3 2013 increased by 11.4% from Q3 2012 to
HK$21,055 million.
• The Group's flagship Casino Grand Lisboa increased its gaming revenue in Q3 2013 by
5.6% over Q3 2012 to HK$7,728 million whilst its Adjusted EBITDA decreased by 7.1%
to HK$1,067 million.
• The Group's gaming revenues accounted for 24.3% of Macau's casino gaming market during Q3 2013, as compared with 26.1% in Q3 2012.
• The Group maintained a strong and liquid financial position, with HK$25,912 million of cash and HK$1,564 million of debt as at 30 September 2013.

1 Earnings after adjustment for non-controlling interests and before accounting for interest income and expense, tax, depreciation and amortisation, donations, loss on disposal of property and equipment and share-based payments

2 Adjusted EBITDA divided by total revenue

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Year-to-Date Comparison (unaudited) Nine months ended 30 September

2013

HK$ million

2012

HK$ million

Increase

Gaming Revenue

63,184

57,852

9.2%

Profit Attributable to Owners of the Company

5,655

5,068

11.6%

Adjusted EBITDA

6,312

5,715

10.4%

Adjusted EBITDA Margin

9.9%

9.8%


During Q3 2013, the Group's VIP gaming revenue was HK$13,575 million, an increase of 8.8% from HK$12,482 million in Q3 2012, mass market gaming revenue was HK$7,141 million, an increase of 18.2% from HK$6,040 million, and slot machine (and Tombola) revenue was HK$339 million, a decrease of 8.5% from HK$370 million. The Group's total revenue during Q3 2013 of HK$21,236 million included hotel, catering and related services revenue of HK$181 million (Q3 2012: HK$160 million).
During Q3 2013 the Group operated an average of 585 VIP gaming tables (Q3 2012: 601), 1,186 mass market gaming tables (Q3 2012: 1,158) and 3,348 slot machines (Q3 2012: 3,812) (average of three month-end counts).
VIP gaming revenue includes HK$144 million (HK$527 million in 3Q 2012) of revenue from certain high-limit gaming tables located in casino mass market areas that was classified as VIP gaming revenue due to game size. In Q3 2013, there were 35 tables so classified from 1 July until
31 July, and no tables so classified from 1 August to 30 September. In 3Q 2012, there were 44 tables so classified. If revenue from these tables was not counted as VIP gaming revenue, VIP gaming revenue would have been HK$13,432 million in 3Q 2013 and HK$11,955 million in 3Q
2012, an increase of 12.4%. The average number of VIP gaming tables in operation would have been 574 for 3Q 2013, compared with 557 VIP gaming tables in 3Q 2012.
As above, if HK$144 million of revenue in 3Q 2013 (HK$527 million in 3Q 2012) from certain high-limit gaming tables was not classified as VIP gaming revenue, mass market gaming revenue would have been HK$7,285 million in 3Q 2013 and HK$6,568 million in 3Q 2012. The average number of mass market gaming tables would have been 1,198 in 3Q 2013 and 1,202 in 3Q 2012.
Total VIP chips sales for the Group during Q3 2013 were HK$488.8 billion (Q3 2012: HK$409.1 billion), and the VIP gaming hold percentage (before commissions and discounts) was
2.75% (Q3 2012: 2.92%).
2

Key Results for the Group's Casinos - Q3 2013 Gaming Adjusted Revenue EBITDA

HK$ million HK$ million

Casino Grand Lisboa 7,728 1,067
Other Self-promoted Casinos1 3,045 408
Satellite Casinos2 10,281 434

1 Casino Lisboa, Casino Oceanus at Jai Alai, one slot hall and one Tombola hall

2 Fourteen third party-promoted casinos


The Group's Adjusted EBITDA Margin was 9.6% in Q3 2013, as compared with 9.9% in Q3 2012. The decrease in Adjusted EBITDA Margin reflected the relative growth of gaming revenue from VIP junkets and Satellite casinos.
Unrealised fair value gain in an available-for-sale investment in equity securities amounting to HK$210 million has been recognised in other comprehensive income and accumulated under investment revaluation reserve.
To be more comparable to casino companies reporting in the United States, commissions and discounts paid to players and promoters would be deducted from revenue before calculating Adjusted EBITDA Margin. Using this method, the Group's Adjusted EBITDA Margin for Q3
2013 was 17.0%. If the Group's revenue is further adjusted to include the net revenue of self- promoted casinos plus the net revenue contribution (after reimbursed expenses) of the Group's Satellite Casinos, the Group's Adjusted EBITDA Margin would be 29.5%. These alternative margin calculations are provided for the convenience of investors and other interested parties for the purpose of comparing the Group's results with other casino operating companies.
During Q3 2013, the Grand Lisboa Hotel achieved an average occupancy rate of 97.5% and average room rate of HK$2,183 per night, as compared with average occupancy rate of 96.0% and average room rate of HK$2,070 in Q3 2012.
Capital expenditure of the Group during Q3 2013 was HK$311 million, which was primarily for construction in progress and furniture, fixtures and equipment. As at 30 September 2013, the Group had total cash of HK$25,912 million and debt of HK$1,564 million.
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IMPORTANT NOTE

Shareholders and potential investors should be advised that the above financial data relates only to certain parts of the Group's operations and is based on the Group's internal records and management accounts. The above financial data has not been reviewed or audited by independent auditors and is not a forecast of the performance of the Group as a whole. The Board cautions shareholders and potential investors not to rely unduly on such data and to exercise caution when dealing in the securities of the Company.
By order of the Board

SJM Holdings Limited So Shu Fai

Executive Director and Chief Executive Officer

Hong Kong, 11 November 2013

As at the date of this announcement, the executive directors of the Company are Dr. Ho Hung Sun, Stanley, Dr. So Shu Fai, Mr. Ng Chi Sing, Mr. Rui José da Cunha, Ms. Leong On Kei, Angela, Mr. Shum Hong Kuen, David and Mr. Fok Tsun Ting, Timothy, the non-executive director of the Company is Dr. Cheng Kar Shun and the independent non-executive directors of the Company are Mr. Chau Tak Hay, Dr. Lan Hong Tsung, David, Mr. Shek Lai Him, Abraham and Mr. Tse Hau Yin.

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