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3 NEWS 29.6.2023 FROM PAGE 1 As a consequence, the Group's EBIT- DA is expected to increase y-o-y by €6.0 million (+28%) and register an EBITDA margin of 72.75% (FY2022: 73.26%). In- terest cover is expected to strengthen from 5.61 times (FY2022) to 7.12 times. In the forecast financial year, the Group estimates total comprehensive income to amount to €17.7 million compared to €30.7 million in the prior year. It should be noted that in FY2022, total comprehensive income comprised gains on disposal of subsidiaries of €7.3 million and uplifts in the carrying value of property of €9.1 million. Carmelo Stivala Group Ltd is the guar- antor of the bonds issued by the Issuer. It is the property holding company of the Group and is also the direct hold- ing company of the operational entities within the Stivala Group. ST Properties Ltd is principally in- volved in the business of sub-leasing, on a long-term basis, the commercial and residential properties owned by the Guarantor. ST Hotels Ltd is primarily engaged in the operation and management of the Guarantor's hotels, hostels and short let apartments. e Group also has four associate companies as follows: (i) Platinum De- velopments Ltd (C 70581) - owns and leases three residential units and one office on the Sliema Seafront; (ii) Civa- la Limited (C 66336) – has a long term lease on a 900m2 plot of land earmarked for the future development of a five-sto- rey car park and overlying office space; and (iii) Sliema Creek Lido Limited (C 87108) and AquaLuna Lido Limited (C 95143) – both involved in the manage- ment of a lido opposite the Bayview Ho- tel in Gzira. Group properties in the course of de- velopment or held for future develop- ment include the ST Tower in Ta' Xbiex, St Alavits Hotel, Gzira (formerly the 'Ponsomby Hotel and School'), Novo- tel Hotel, Gzira (redevelopment of the 'Blubay Suites & Apartments'), Mov- enpick Hotel, Sliema (redevelopment of the Sliema Hotel), Montana Hotel, Gzira, a proposed home for the elderly in Gzira, Parisio Hotel, Gzira, Bayview Hotel, Gzira, and Charlie's Guesthouse, Msida. Early this year, the Group was also the sole bidder for the 65-year concession to rehabilitate and operate the Chalet site in Sliema. e proposed project, if successfully awarded, will convert the site into a ca- tering and entertainment establishment in accordance with the tender docu- ment. FY2022 performance e Group's revenue in FY2022 in- creased by €13.7 million (+91%) y-o-y to €28.8 million (FY2021: €15.1 mil- lion). e Group's hospitality segment performed better compared to the prior year as the economy continued to re- cover from the pandemic. is segment generated 46% of total revenue (FY2021: 43%). Rental income increased by €1.0 million from €8.4 mil- lion in FY2021 to €9.4 million (+12%). Aggregate revenue also includes an amount of €6.2 million generated from sales of residential units (FY2021: €0.2 million). In consequence, EBITDA more than doubled to €21.1 million (FY2021: €10.4 million). e Group's EBITDA margin improved by 4 percentage points on a comparable basis to 73%. In addition, the Group's interest cover strengthened from 3.25 times in FY2021 to 5.61 times in FY2022. e financial statements under review were impacted by one-off items which had a net positive effect of €13.5 million on the Group's profit before tax. Such items include: (i) gains of €7.3 million on disposal of subsidiaries (Stivala Op- erators Limited and Stivala Properties Ltd); (ii) gains on revaluation of prop- erty amounting to €9.1 million; and (iii) provision for expected credit losses of €2.9 million. As a result, the Group reported an in- crease in profit after tax of €13.9 million to €26.3 million (FY2021:€12.4 million). In other comprehensive income, the Group reflected an uplift in the carrying value of property, plant and equipment of €4.4 million. Overall, the Group registered a total comprehensive income of €30.7 million compared to €42.7 million in FY2021. Stivala Group projecting revenue of €37.2m for 2023, up 29% over 2022 Stivala Group was the sole bidder for the 65-year concession to rehabilitate and operate the Chalet site in Sliema THE Malta Business Bureau, the En- ergy & Water Agency (EWA) and The Malta Chamber hosted an event titled Sustainability in Industry: Dif- ferent Perspectives. The scope was to provide a holistic and comprehensive overview of the path businesses need to take to become sustainable, rang- ing from core concepts such as double materiality, to the behavioural dynam- ics obstructing green growth. This webinar was the 11th of the WE MAKE event series, a collaboration between the aforementioned part- ners, funded by EWA. Through the project, the call to ac- tion for SMEs to become more sus- tainable is to begin with an energy audit, which can be funded up to 5000 euros. Those interested are to get in touch with the Malta Business Bureau. Dr Alex Mifsud presented an over- view of the key concepts behind going green, while sustainability consult- ant Corinne Fenech explained how change is difficult both because of psychological obstacles to sacrificing in the short term for long term gains, and also because sustainability pre- sents a social dilemma. Social dilemmas arise when individ- ual self-interest conflicts with the col- lective interest, posing a challenging decision-making situation. These dilemmas occur in vari- ous contexts, such as the overuse of shared resources or the provision of public goods. In such scenarios, individuals face a choice between pursuing their own immediate benefits or contributing to the greater good. However, if everyone acts solely in their self-interest, it can lead to sub- optimal outcomes, where the collec- tive suffers. In a business context, these suboptimal outcomes may be understood via the concept of double materiality. Dr Jonathan Spiteri explained that double materiality recognizes that the impacts of environmental factors, such as pollution, resource depletion, or climate change, can have material effects on both the financial perfor- mance of a company and the broader societal and environmental well-be- ing. It is a concept that recognizes the interconnection between environ- mental, social, and governance (ESG) factors and their impact on both the financial performance of a company and the broader society and environ- ment. Double materiality emphasises the importance of assessing and manag- ing risks and opportunities related to ESG factors that can have material impacts on both the financial bottom line and the well-being of stakehold- ers and the planet. By adopting a double materiality approach, companies can strive for long-term sustainable success by inte- grating ESG considerations into their strategies, operations, and reporting, and addressing the interconnected- ness of financial and non-financial factors. Beginning a sustainable client journey in industry

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