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5 NEWS 20.4.2023 for 2022 amounted to €51.7 million, an improvement of €25.2 million. In 2019 EBITDA hit €69.8 million. 2022 revenue was at €238.2 million, with the hotels segment increasing by 95% year on year. The overall revenue level stood at 89% of 2019. Pisani said IHI was forecasting a further improvement in our perfor- mance, which should bring the group closer to 2019 results. IHI, with its globally recognised Corinthia brand, now expects to be operating seven new properties by 2024, including Brussels, Rome, New York, Doha, and Bucharest, as well as having signed a management agree- ment for a hotel in Riyad, Saudi Ara- bia. In addition, plans on the Corinthia Oasis, formerly known as Hal Ferh in Malta, incorporating a hotel of 162 keys and 25 hotel-serviced villas, are well advanced as works on the de- tailed designs have progressed signif- icantly whilst works on the road wid- ening are currently underway. Pisani also said IHI held several meetings with distinguished person- alities in Oman, UAE, Qatar and Sau- di Arabia where his group is planning three to four new hotel management agreements in the next 12 months, particularly in Saudi Arabia, Oman and possibly Dubai. In Jeddah, Pisani said IHI had signed an MOU with Jeddah Central Devel- opment Company, a wholly-owned company of Saudi Arabia's Public Investment Fund (PIF) for its hotel management company CHL, and its project managers QP, to develop and operate assets within the Marina Dis- trict. Sale of Prague Hotel Pisani said in IHI's annual report that while the Corinthia brand is focused on the management of third-party ho- tel properties – what he calls "a faster and less capital-intensive way to dis- play our Corinthia flag" – he said that as a developer IHI realises a minimum 20% gain when it buys properties to develop at competitive rates. "Subsequently, with the maturity of the business, it is estimated that the best time to sell a successful hotel is between five and seven years. This would be the norm to realise the max- imum gain, allowing us the opportu- nity to partially re-invest and distrib- ute dividends." IHI has also put the Corinthia Hotel in Prague on the market again after it had nearly completed the sale before the pandemic put a halt to the deal. "Separately, there is an additional plot of land adjacent to the Prague Hotel, which could also be developed for offices. The location of both the ho- tel and adjacent site is excellent as it commands magnificent views of Prague and is only 100 metres away from the underground, being just two stops away from central Prague." Prospective bond listing Today IHI carries out property own- ership, while group companies CDI develops hotels, and carries out pro- ject management through QP, hotel management through CHL, and in- dustrial catering through Corinthia Caterers. "This multi-faceted approach has proved very beneficial, especially when certain difficulties may hinder some activities but allow others to op- erate profitably. We are today quite a unique organisation as few companies worldwide offer such diverse services of a one-stop shop. And I am confi- dent this evolution will continue to progress further," Pisani told share- holders in IHI's annual report. He said IHI is setting up a second brand for upscale hotels which cannot be serviced by the Corinthia brand. The Verdi Hotels are planned to launch later in 2023 and expand inter- nationally in the next 12-15 months, managing hotels which are both in- ternally owned as also others owned by existing partners and other third parties. Pisani said that IHI would be plan- ning a second listing to increase the free float of minimum of 25%, raising some 250 million shares. "One can only imagine the company's poten- tial growth with such funds in hand," Pisani said. "Going for a second list- ing is not a short-term project. Much preparation is needed with the sup- port of our international brokers." Total revenue for the year under review increased to €238.2 million from €129.3 million last year, an increase of 84%. Total Revenue represents 89% of 2019 revenue figures. The financial performance for 2022 was again partially impacted by COVID-19, in particular during the first quarter of the year and by the military conflict between Russia and Ukraine in February 2022. This conflict led to international sanctions on Russia and had an effect on the Group's results and assets held in Russia. "The geopolitical situation between Russia and the west resulted in a drop in international business which consequentially delayed the recovery from COVID-19 in Russia. On a positive note, in spite of the situation in and around the Russian market, the hotel maintained the same occupancy levels as in 2021 in view of the local trade that the hotel always enjoyed," IHI said. On the strength of the increased revenue, IHI recorded a gain on operating results before depreciation and fair value of €51.7 million, an increase of €25.2 million from the operating results before depreciation and fair value movements of €26.5 million registered last year. In 2022, IHI is reporting in its Income Statement, an overall exchange gain of €15.1 million, compared to a loss on exchange of €2.5 million the year before. This positive movement in exchange differences is mainly related to the St Petersburg property as the Rouble continued to recover. In May 2022, the bank loan on the property in St. Petersburg was fully settled resulting in a realised gain on exchange of €12.09 million and eliminated future exchange rate volatility from the Income Statement on this loan. In 2021, on account of continued recovery from COVID-19 IHI recognized property uplifts of €79.7 million. In 2022, on account of further recovery, it recognized a further uplift on the property in London of €12.7 million. This uplift was offset by fair value losses recognized on the property in St Petersburg amounting to €9.7 million, following the hostilities by Russia on Ukraine and the ensuing sanctions which materially affected the business. In addition to the fair value loss recognised in the other comprehensive income on the hotel, the Group also recorded in its Income Statement, a fair value loss of €5.89 million on the St. Petersburg commercial centre. The weakening of the Sterling in 2022 relative to the reporting currency of the group, which is the Euro, resulted in a loss on translation of the investment in London. The group recorded a combined currency translation loss of €22.6 million in Other Comprehensive Income, relative to a gain of €28.0 million registered in 2021. IHI registered a loss on total comprehensive income of €20.3 million in 2022 against a gain of €65.0 million registered in 2021. The share of loss of total comprehensive income attributable to the shareholders of IHI amounted to €17.9 million for the year under review. The corresponding figure for 2021 was a gain of €21.5 million. At 31 December 2022, IHI is reporting a negative working capital of €26.5 million relative to a positive working capital of €54.4 million reported in 2021. This position takes into account the repayment of a bank loan due in 2023 amounting to €29.0 million which is classified as a current liability as at 31 December 2022, discussions are ongoing to refinance this loan. Corinthia St Petersburg Review of business development and financial position

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