International Hotel Investments p l c : Half-Yearly Financial Report

COMPANY ANNOUNCEMENT

The following is a company announcement issued by IHI p.l.c. pursuant to the Capital Markets Rules as issued by the Malta Financial Services Authority.

Half-Yearly Financial Report

The Board of Directors of International Hotel Investments p.l.c. has approved the attached Half-Yearly Financial Report for the period ended 30 June 2021.

This report can also be viewed on the Company's website: https://www.corinthiagroup.com/investors/financial-report/.

Jean-Pierre Schembri

Company Secretary

Encl.

31 August 2021

INTERNATIONAL HOTEL INVESTMENTS P.L.C.

22 EUROPA CENTRE, FLORIANA FRN 1400, MALTA

TEL: [phone] | FAX: [phone]

E-MAIL: [e-mail] | WWW.CORINTHIAGROUP.COM | CO. REG. NO: C26136

International Hotel Investments p.l.c.

Interim Financial Statements (Unaudited)

For the six-month period

1 January 2021 to 30 June 2021

International Hotel Investments p.l.c.

Interim Financial Statements

For the period from 1 January 2021 to 30 June 2021

Contents

Half-yearly Directors' Report pursuant to Listing Rules 5.75.2	1 - 3
Interim Income Statement	4
Interim Statement of Comprehensive Income	5
Interim Statement of Financial Position	6 - 7
Interim Statement of Changes in Equity	8
Interim Statement of Cash Flows	9
Notes to the Financial Statements	10 - 11
Statement pursuant to Listing Rule 5.75.3	12

International Hotel Investments p.l.c.

Interim Financial Statements

For the period from 1 January 2021 to 30 June 2021

Directors' Report

Six-month period ended 30 June 2021

Basis of Preparation

The published figures for the reporting period have been extracted from the unaudited consolidated financial statements of International Hotel Investments p.l.c. ("the Group") for the six months ended 30 June 2021 and the comparative period in 2020. Comparative balance sheet information as at 31 December 2020 has been extracted from the audited financial statements of the Group for the year ended on that date. This report is being published in terms of Listing Rule 5.74 issued by the Listing Authority and has been prepared in accordance with the applicable Listing Rules and International Accounting Standard 34, 'Interim Financial Reporting'. In terms of Listing Rule 5.75.5, the Directors are stating that this Half-Yearly Financial Report has not been audited or reviewed by the Group's independent auditors.

Principal Activities

International Hotel Investments p.l.c. carries on the business of an investment company in connection with the ownership, development and operation of hotels, leisure facilities, and other activities related to the tourism industry and commercial centres. The Company has a number of subsidiary companies and investments in associate companies through which it promotes the business of the Group.

Review of Performance

The disruption caused by COVID-19 on the global hospitality industry remains ongoing. The period January to June 2021 is the first full half-yearly reporting period under such conditions with the results of the comparative period in 2020 including results under a normalised situation for January, February and up to mid-March 2020.

Upon closing or significantly reducing operations in its hotels in March and April 2020, the Company implemented a series of measures intended to drastically reduce operating costs, principally payroll saving measures across the board, addressing the largest single item of cost in the business. The Company also tapped into various Governmental support schemes covering payroll and other forms of subsidies and support in several countries where it operates. The Company is still benefiting from such schemes in a number of territories.

In this unprecedented situation the Group registered revenue of €34.6 million in the first six months of 2021 of which approximately 30% is not hotel-related. The Company posted a negative EBITDA of €0.8 million for the period under review. This compares to revenue of €51.7 million and a negative EBITDA of €2.1 million in the corresponding period last year. This performance clearly evidences the fact that despite a 33% reduction in revenue during the reporting period relative to the corresponding period in 2020, the strict measures of control implemented on payroll and other operating costs were effective to the extent that the EBITDA loss between the two reporting periods actually reduced by €1.3 million.

In reviewing the financial results for the first six months of 2021, one should also note the following:

Compared to 2020, net depreciation charges decreased by €2.5 million on account of fully depreciated assets, mainly in London.

Interest income and expense are in line with last year with additional interest cost in some properties offset by lower interest in others, on account of loan capital repayments.

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International Hotel Investments p.l.c.

Interim Financial Statements

For the period from 1 January 2021 to 30 June 2021

Directors' Report - continued

Period ended 30 June 2021

The share of associates' and joint ventures' results in the comparative period include the Golden Sands Resort joint venture for the full six months whereas in 2021 this is included for the first two months of the year until its acquisition in February. Following the acquisition, the assets and liabilities, and results of this operation are consolidated in the Group.

Net foreign exchange translation differences represent the unrealised exchange movements registered mainly in Libya following the devaluation of the Libyan dinar in early January 2021.

As a result of the above, during the period under review, the Group registered a loss after tax of €26.4 million compared to a loss of €30.1 million reported in the same period last year.

The gain, net of tax, of €10.1 million in the Statement of Comprehensive Income principally reflects the currency translation difference on the Group's non-Euro denominated investments in London and in St Petersburg, in consequence of an improvement in Sterling and Rouble respectively against the reporting currency of the Group which is the Euro.

State of Affairs and Outlook

Following periods of intermittent lockdowns and significant disruptions, all the Company's hotels and businesses are now open. Demand varies from country to country, with the highest performances being registered in countries with strong local markets, such as the UK and Russia, where our hotels in London and St Petersburg have fared the best within the Company's hotels portfolio. In any case, in all our hotels and businesses, management remains entirely focused on maintaining tight disciplines on all operating costs including payroll whilst making sure that the business is well equipped for a return of demand. In almost all countries where it operates, the Company's most imminent challenges are related to labour shortages as the industry generally struggles to attract back workers as demand increases.

All CAPEX remains tightly controlled.

The Company's targets for year-end are not overly ambitious, and financial planning is based on cautious revenue expectations and the continuation of subsidies and support schemes only to the extent that these have been publicly committed.

In terms of cash and bank balances, as at end of June 2021, the Group had available resources of €39.1 million plus €9 million in marketable investments.

The Company remains focused on its new projects. Works are underway on Corinthia Hotel projects on site in Doha, Rome, New York, Bucharest and Moscow, where Group subsidiary companies are involved as development partners, technical services providers and hotel operators, with most of the capital funding for these projects being provided by third parties.

The redevelopment of the Grand Hotel Astoria in Brussels is ongoing with the main packages of the construction contract awarded to a renowned Belgian contractor. The Company has a 50% share in this project. In Malta, the Group has submitted plans for the building of a low-lying, highly landscaped resort for the site formerly known as Hal Ferh.

On the basis of the above the Group is confident to emerge successfully from the difficult situation of the pandemic.

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