Slides
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2026 Interim Results 5 August 2026 Stronger Earnings Momentum and Return to Profitability
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Disclaimer 2 This presentation (“Presentation”) is made available by The Hongkong and Shanghai Hotels, Limited (“HSH”) for general purposes only. Nothing contained in this Presentation is intended to constitute a public offer under any legislation or an invitation or inducement to engage in any investment activity. No liability will be accepted for any loss or damage howsoever arising from or in reliance upon the contents of this Presentation. HSH makes no recommendation to buy, sell or otherwise deal in shares of HSH or in any other securities or investments whatsoever and you should neither rely nor act upon, directly or indirectly, any information contained in the Presentation as investment advice in respect of any such investment activity. Any person at any time considering in engaging in investment activity should seek appropriate professional, financial or other advice and not rely on the information contained in the Presentation.
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Key Messages Financial Results Operational Highlights Outlook Q&A Agenda 3
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Resilient Luxury in an Uneven Market Luxury demand proved resilient; HSH well placed to benefit S tronger Operating Performance Growth in key markets Strong, double-d igit RevPAR gains in Greater China and the US Return to Profitability HK$23m profit attributable to shareholders (1H 2025: HK$289m loss) D elivering Vision 2035 – Perform and Transform Strategy Unlocking full potential of our existing assets Reinventing flagship properties with H K$2.1 billion investment in The Peninsula Hong Kong and The Peninsula T okyo Key Messages 4
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Financial Highlights at a Glance +8% Yo Y Revenue from operations1 +20% Yo Y Operating EBITDA 1 +22% Yo Y Net cash from operating activities before changes in working capital1 22% Net external debt to total assets A Credit rating from JCRA and R&I2 1) Excl. the results from the sale of Peninsula London Residences. 2) Japan Credit Rating Agency, Ltd and Rating & Investment Information, Inc. 3) 20 out of 24 sold to date. Revenue Profitability Cash Debt Rating 5 Project UpdateCredit Rating Sold 2 units of The Peninsula London Residences3 HK$23m Profit attributable to shareholders (vs H1 2025: HK$289m loss)
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Investing over HK$2bn in Flagship Assets to Strengthen Long-T erm Growth Revenue Profitability Cash Debt Rating 6 Credit Rating
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Hotels Led Earnings Recovery While Other Businesses Largely Delivered Stable Growth RevPAR increased across all regions, including Greater China (+29%), US (+16%) and Europe (+11%) EBITDA growth driven by stronger occupancy, improved average rates and careful cost management Continued recovery in global luxury travel supported operating momentum Hotels Division Led Earnings Growth Strong occupancy at The Repulse Bay and improved performance at The Peak T ower Portfolio continues to provide resilient, recurring cash flows Marketing efforts focused on the remaining Peninsula London residences Commercial Properties Delivered Stable Earnings Peak Tram performance affected by adverse weather Retail network optimization at Peninsula Merchandising enhanced strategic focus and profitability Growth at Peak Tram, Retail and Others 7
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8 Financial Results
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3,281 3,534 H1 25 H1 26 Revenue Growth and Operating Leverage Drove a Return to Profitability 1) Non-recurring expense are unrelated to the group’s operating hotels and properties and are non- recurring in nature. 2) Underlying loss is calculated by excluding the post-tax effects of unrealised property revaluation movements and impairment provisions, if any, and other non- recurring expenses. Revenue from operations (HK$m) Operating EBITDA 9 Statement of Profit or Loss (HK$m) H1 26 H1 25 Change Revenue from operations 3,534 3,281 8% Revenue from residential sales 395 - n/a Total revenue 3,929 3,281 20% Operating costs from operations (2,762) (2,638) (5%) Operating costs from residential sales (392) - n/a EBITDA before non-recurring expenses 775 643 21% Non-recurring expenses1 (5) - n/a EBITDA 770 643 20% Depreciation and amortisation (352) (358) 2% Net financing charges (327) (362) 10% Share of results of JVs and associates (25) (64) 61% Increase / (Decrease) in fair value of IP and provision 66 (61) n/a Taxation (110) (87) (26%) Profit / (loss) for the period 22 (289) n/a Non-controlling interests 1 - n/a Profit / (loss) attributable to shareholders 23 (289) n/a Underlying loss 2 (17) (216) n/a +8% Operating EBITDAEBITDA (HK$m) 643 770 H1 25 H1 26 +20% H1 2026 profit attributable to shareholders increased to HK$23m, compared with a loss of HK$289m in H1 2025, driven by revenue growth, and EBITDA expansion
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10 232 262 2025 2026 -1 12 2025 2026 412 498 2025 2026 343 349 2025 2026 455 486 20252 2026 2,483 2,699 Column2 Column1 Revenue and EBITDA Growth Across All Divisions Contribution by division (excl. share of results of JVs and associates) Hotels Commercial Properties Peak T eam, Retail & Others +9% 20262025 Hotels Commercial Properties Peak T eam, Retail & Others +7% +2% +21% +13% n/a Revenue from operations, excluding sales of The Peninsula London Residences (HK$m) Operating EBITDA1 (HK$m) 1) Excluding the results from the sale of Peninsula London Residences and other non-r ecurring expenses Revenue and EBITDA increased across all business divisions, reflecting continued recovery in luxury travel demand, resilient commercial property performance and positive contributions from Peak Tram, Retail and Others.
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Operating Leverage Drove EBITDA CAGR of 40% Since H1 2024 (HK$m) 11 395 643 772 2,908 3,281 3,534 24 H1 25 H1 26 H1 Operating EBITDA1 Revenue from operations1 1) Excluding the results from the sale of Peninsula London Residences. Revenue CAGR: ~10% EB ITDA CAGR: ~40% EBITDA margin: 13.6% → 21.8% (+8.2ppt) EBITDA grew four times faster than revenue, demonstrating significant operating leverage and improved profitability as luxury travel demand recovered EBITDA margin 13.6% 19.6% 21.8% Revenue growth and disciplined cost management delivered significant EBITDA and margin expansion.
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Improved EBITDA Drove Stronger Operating Cash Flow Net cash generated from operating activities before changes in working capital (HK$m) 12 Cash Flows (HK$m) H1 26 H1 25 EBITDA1 770 643 Tax paid (43) (45) Net cash generated from operating activities before changes in working capital 727 598 Changes in working capital relating to The Peninsula London Residences sold 385 - Changes in other working capital (69) 12 Net cash generated from operating activities 1,043 610 598 727 H1 25 H1 26 +22% Net cash generated from recurring operating activities increased 22% to HK$727m, reflecting continued improvement in operating performance and higher EBITDA. 1) Including the results from the sale of Peninsula London Residences and non-r ecurring expenses.
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13 Strong Balance Sheet Supporting Future Growth Total cash Total assets Net debt before lease and other liabilities Shareholders equity 30 Jun 2026 31 Dec 2025 951 762 54,675 55,051 11,946 12,693 36,309 36,110 (HK$m) Balance sheet Major financing and credit ratings HKD 6.5bn 58% Rating from JCRA and R&I1A Credit metrics Net debt to total assets22% Undrawn committed facilitiesHK$ 1.9bn Weighted average gross interest rate3.70% Average debt maturity1.7 years Fixed to floating interest rate ratio43% 1) For long term foreign currency and local currency denominated debts % of committed facilities classified green/ sustainability linked HKD Club loan refinancing in progress target to complete in 2026 H2
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14 Hotel Highlights
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All Regions Contributed to Improved Hotel Performance 15 To k yo Beverly Hills N ew Yo r kChicago USA (RevPAR: 16% YoY) Resilient domestic demand Healthy group and leisure segment Istanbul Bangkok Manila Hong Kong Beijing Shanghai Paris London Europe (RevPAR: 11% YoY) Growing market presence in London Pricing discipline in Paris Encouraging progress in Istanbul Asia (excluding China) (RevPAR: 1% YoY) Stronger occupancy in Bangkok and Manila Market leadership maintained in T okyo Performance impacted by softer regional demand Greater China (RevPAR: 29% YoY) Strong occupancy and rate growth Increased overseas visitors Disciplined cost management RevPAR increased across all regions, led by Greater China and the United States, reflecting stronger occupancy, higher average rates and continued resilience in luxury travel demand.
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16 Commercial Properties & Peak Tram, Retail and Others Highlights
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Robust residential occupancy at 97% and a quality tenant base Curated cultural and community-led activations supported footfall, t enant engagement and the long-term relevance of the property The Repulse Bay Continued to Deliver Strong and Stable Performance 17
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The Peak T ower Delivered Y oY growth in H1 2026, supported by cost discipline a nd commercial initiatives Visitor traffic was impacted by adverse weather during the p eriod The Peak Tram Softer visitor demand due to adverse weather conditions Targeted partnerships and destination-led activations designed to enhance the visitor experience The Peak Complex Delivered Resilient Performance Despite Weather Headwinds 18
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Rationalised r etail footprint in Japan and China Focused on product elevation, destination retail and opportunities t hat are more closely aligned with The Peninsula brand experience Growing wholesale opportunities for confectionery products Peninsula Merchandising Sharpened Strategic Focus and Enhanced Brand Positioning 19 19
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20 FY 26 Outlook
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21 FY 26 Outlook: Positioned for Continued Growth Amid a Dynamic Environment Macro Environment & Industry Fundamentals Mixed external environment Global travel demand continuing to grow Shift towards experiences and experiences and hyper-p ersonalisation Geopolitical uncertainty, currency volatility, cautious luxury retail spending and hi gher operating costs require careful management Portfolio Strength Hotels: positive demand outlook Commercial Properties: resilient residential leasing; improving office leasing Peak Tram, Retail and Others: H2 performance supported by disciplined cost management, new commercial partnerships and increased seasonal demand Management Priorities Execute ambitious Vi sion 2035 - Perform and Transform agenda Drive revenue growth Protect profitability Invest selectively for long-t erm value creation
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22 Q & A