Thunderbird Resorts : Halfjaarlijkse financiële verslaggeving

2023 HALF-YEAR(SEMI-ANNUAL) REPORT

Cautionary Note

(Thunderbird Resorts Inc. is a British Virgin Islands company limited by shares

with its registered office in Tortola, British Virgin Islands)

Cautionary Note on "forward-looking statements"

This 2023 Half-year Report contains certain forward-looking statements within the meaning of the securities laws and regulations of various international, national, and local jurisdictions. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential revenue, future plans, and objectives of Thunderbird Resorts Inc., are forward-looking statements that involve risk and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Group's forward-looking statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business, all of which are disclosed under the heading "Risk Factors" and elsewhere in the Group's documents filed from time-to-time with the Euronext Amsterdam exchange ("Euronext Amsterdam") and other regulatory authorities.

Thunderbird Resorts Inc. is sometimes referred to herein as "Company" or "Group." All currencies are in US dollars unless stated otherwise.

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Table of Contents

Table of Contents

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Chapter 1: Letter from the CEO

Chapter 1: Letter from the CEO

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Chapter 1: Letter from the CEO

Dear Shareholders and Investors:

Please kindly note the following important updates:

1. CHANGES IN PERFORMANCE IN 2023

The below summarizes the Group's performance through June 30, 2023.

1. EBITDA: Property EBITDA decreased by $190 thousand and adjusted EBITDA by $750 thousand over the same period in 2022. The decreases were largely driven by one-time events around settlements of litigation, related legal fees and spot employee bonuses.
2. Profit / (Loss): Based on Continuing Operations, Profit increased by $549 thousand, an improvement of $195 thousand as compared to Half-year 2022. The improvement was driven primarily by falling interest expense and by one-time gains from debt restructurings.
3. Net Debt: Borrowings were reduced by $1.27 million. Gross debt (inclusive of obligations under leases and hire purchase contracts) were reduced by $1.71 million. Net debt increased by $885 thousand as we deployed cash to reduce borrowings and to cover one-time expenses.

2. IMPACT OF COVID-19 ON 2023 AND BEYOND

Covid-19 is now having little direct impact in our markets. High rates of inflation and the response by central banks in raising interest rate does seem to be suppressing demand in different sectors of our markets, but through the first half of 2023 seems to be minimally impacting on our operations. Management has stabilized its operations and its cash management. To be prudent, however, we maintain unchanged our Management Statement on Going Concern as last updated in our 2022 Annual Report.

3. SHAREHOLDER MANDATE AND OUR ASSETS

We continue to pursue decisions that support the best interest of shareholders according to the shareholder mandate set forth in the September 21, 2016 Special Resolutions. Please read the following carefully.

1. Peru Real Estate Assets: As of the publication of this 2023 Half-year Report, the Group completed the process to convert a 66-suite hotel into a condominium apartment building of 66 units for sale. In the same mixed-use building, the Group also continues to own approximately 6,703 m2 of rentable- sellable office space, and 91 underground parking spaces. Please note the following:
2. • The Group completed the conversion of the 66-suitehotel into condominiums. Sales are near final. We project to have completed sale of all condominiums in 2023.
   • The Group is evaluating the conversion of its 6,703 m2 of offices to apartments: Given the pre- sale performance of the hotel conversion into condominium apartments, the Group has begun an analysis of the conversion of its office complex (located in the same building). We have contracted for construction plans and are in the budgeting mode. We have active tenants, the construction budget would likely be in excess of $3 million, and the timing of such a project could take one to two years. The Group will keep shareholders apprised.

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