Thunderbird Resorts : TRI 2021 Half-year Report

2021 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 2021 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

Chapter 1: Letter from the CEO	4
Chapter 2: June 30, 2021 Group Overview and Updates by Country	7
Group Overview	8
Peru	9
Nicaragua	10
Other Group Updates	11

Chapter 3: Other Key Items	13
Capital Resources and Liquidity	14
Business Status	15
Indebtedness and Contractual Obligations	16

Chapter 4: 2021 Interim Consolidated Financial Statements & Notes	17
Interim Consolidated Financial Statements	18
Notes to the Interim Consolidated Financial Statements	25
Chapter 5: Reporting Responsibilities and Risks	45
Related Party Transactions	46
Auditor's Involvement	46
Management's Responsibility Statement	46
Risks	47

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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 2021

The below summarizes the Group's performance through June 30, 2021.

1. EBITDA: Peru property EBITDA decreased by $268 thousand for the six months ending June 30, 2021 as compared to the same period in 2020. During the same period, Nicaragua property EBITDA experienced an improvement of $1.4 million. Corporate expense reduced by $118 thousand. After netting out corporate expense and expenses from our proportional ownership in a Costa Rican real estate holding company, Adjusted EBITDA increased by $1.2 million and $687 thousand as compared to through half-year 2020 and 2019, respectively.
2. Profit / (Loss): Based on Continuing Operations, the Group experienced a Profit of $210 thousand, an improvement of $1.4 million and $1.7 million as compared to the same period in 2020 and 2019, respectively. The improvement was primarily due to higher revenue and to other corporate gains.
3. Net Debt: Due to a change in accounting policy as required by IFRS 16, the Group is now required to account for the net present value of real estate operating lease contracts as Obligations under leases and hire purchase contracts. Approximately $4.1 million of our net debt is comprised of Obligations under leases and hire purchase contracts. Our Net Debt reduced between 2020 and 2021 by $926 thousand.

2. IMPACT OF COVID-19 ON 2021 AND BEYOND

Covid-19 continues to impact on our markets harder than in much of the world. Having said that, 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 2020 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 2021 Half-year Report, the Group continued to operate and wholly own a mixed-use tower containing a 66-suite hotel, approximately 6,703 m2 of rentable-sellable office space, and 158 underground parking spaces. Please note the following:
2. • The Group has begun a conversion of the 66-suitehotel into condominiums. Of the 66 suites, 60 suites have a small kitchen, living room, one bedroom and one-a-half bathrooms. The remaining 6 penthouse suites have a full kitchen, living-dining room, two bedrooms, two-and-a-half bathrooms and a large balcony with views of the city and the ocean at a distance. The Group is waiting for two final regulatory approvals of the conversion. The suites, with 5,878 sellable meters, and public areas will require approximately $600 thousand in upgrades. The Group is pleased to that as of the date of this publication, it has signed pre-sale contracts (subject to regulatory approvals) for 53 apartments containing approximately 4,509 m2. It has

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