Galaxy Entertainment : Presentation of 2023 Q2 & Interim Results

Dr. Lui Che Woo, Chairman of GEG said:

"I would like to take this opportunity to update you on GEG's most recent activities and financial results for the second quarter and half year of 2023. During the period Macau continued its business recovery and the Group's primary focus was on operational execution, recruitment and project development. We believe that non- gaming is the future of Macau to drive a longer staying and more diverse visitor base which aligns with Macau Government's vision of building Macau into a "World Center of Tourism and Leisure". Our investment into world-class, non-gamingfacilities such as the Galaxy International Convention Center ("GICC") and the Galaxy Arena supports this vision. Our vote of confidence in Macau is demonstrated by the fact that GEG is the first Macau concessionaire to resume dividends and return capital to shareholders after the border reopened.

In Q2 2023, Group Net Revenue was $8.7 billion, up 257% year-on-year and up 23% quarter-on-quarter. Group Adjusted EBITDA was $2.5 billion, versus $(384) million in Q2 2022 and $1.9 billion in Q1 2023. For first half of 2023, Group Net Revenue increased 141% year-on-year to $15.7 billion and Adjusted EBITDA increased significantly from $191 million in 1H 2022 to $4.4 billion.

Our balance sheet continues to be exceptionally liquid and healthy. As of 30 June 2023, cash and liquid investments were $24.4 billion and net cash was $22.0 billion. Our strong balance sheet provides us with valuable flexibility in managing business operations and supporting our development initiatives. Today we are very pleased to announce a special dividend of $0.2 per share, payable on or about 27 October 2023.

Following the reopening of Macau in early January 2023, we have continued to be very active into Q2 in expanding our resort offering and enhancing our service standards. This includes the soft opening of GICC and Galaxy Arena in April 2023. In late June, we opened a new promoter room in line with the new gaming regulations. We also opened a number of additional F&B outlets during Q2. In July, as part of Phase 3 development, we opened our new Horizon Premium Club and associated non-gaming amenities. We are in the process of opening our first overseas business development office in Tokyo and we are planning to open additional offices in Bangkok and Seoul.

On 16 August 2023, we successfully soft opened the exclusive 450 all-suite Raffles at Galaxy Macau which brings a new level of opulence, service and luxurious customer experience to Macau. The Raffles will drive high-value customers in-line with the Government's goal to attract longer staying and high-value visitors to Macau. Further, we will open the 700-room Andaz Macau in September 2023.

To support the operation of GICC and Galaxy Arena, we are pleased to announce that we have signed a number of multi-year agreements with well-established entertainment companies who will help to support our events programming.

We have been working closely with the various Government departments and we are pleased to advise that we effectively have our full complement of staff and all of our hotel rooms were available towards the end of Q2, except for Broadway Hotel.

On the project development front, GEG continued to move forward with Phase 4 construction which will have a strong focus on non-gaming, primarily targeting MICE, entertainment, family facilities and also includes gaming.

Finally, I would like to thank all of our team members who deliver 'World Class, Asian Heart' service every day and contribute to the success of the Group."

Executive Summary

GEG: Well Positioned for Future Growth

Q2 2023

• Q2 Group Net Revenue of $8.7 billion, up 257% year-on-year and up 23% quarter-on-quarter
• Q2 Group Adjusted EBITDA of $2.5 billion, versus $(384) million in Q2 2022 and $1.9 billion in Q1 2023
• Normalized Q2 Adjusted EBITDA was $2.5 billion after adjusting for good luck of $4 million
• Latest twelve months Adjusted EBITDA of $3.6 billion, up 109% year-on-year and up 367% quarter-on-quarter

1H 2023

• 1H Group Net Revenue of $15.7 billion, up 141% year-on-year
• 1H Group Adjusted EBITDA of $4.4 billion, up 2,193% year-on-year
• 1H Net Profit Attributable to Shareholders of $2.9 billion, versus $(850) million in 1H 2022

Executive Summary

Galaxy Macau™: Well Positioned for Future Growth

Q2 2023

• Q2 Net Revenue of $6.6 billion, up 356% year-on-year and up 22% quarter-on-quarter
• Q2 Adjusted EBITDA of $2.2 billion, versus $(188) million in Q2 2022 and $1.85 billion in Q1 2023
• Normalized Q2 Adjusted EBITDA was $2.2 billion after adjusting for good luck of $4 million
• Hotel occupancy for Q2 across the five hotels was 92%

1H 2023

• 1H Net Revenue of $11.9 billion, up 164% year-on-year
• 1H Adjusted EBITDA of $4.0 billion, up 650% year-on-year

Executive Summary

StarWorld Macau: Well Positioned for Future Growth

Q2 2023

• Q2 Net Revenue of $1.2 billion, up 456% year-on-year and up 30% quarter-on-quarter
• Q2 Adjusted EBITDA of $362 million, versus $(158) million in Q2 2022 and $216 million in Q1 2023
• Hotel occupancy for Q2 was 100%

1H 2023

• 1H Net Revenue of $2.2 billion, up 236% year-on-year
• 1H Adjusted EBITDA of $578 million, versus $(216) million in 1H 2022