1Q 2021 BUSINESS PERFORMANCE

DISCLAIMER

This material has been prepared for investors’convenience, based on 1Q21

financial statements that have not yet been officially reviewed,

which could alter final data.

Actual results may differ from forecasts herein given the unpredictability of

CONTENTS

01 CORPORATE OVERVIEW

02 BUSINESS PERFORMANCE AND OUTLOOK

03 APPENDIX

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01

06

10

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Hotel Shilla aspires to become a Premium Lifestyle

Leading Company that offers clients the best choice

based on dignity and trust.

The company aims to provide optimal services across

its business range, including travel retail, hotel, leisure, and

business travel management(BTM), to improve

the lifestyles of clients.

VISION

PREMIUM LIFESTYLE

LEADING COMPANY

TRAVEL RETAIL

BTM

HOTEL

LEISURE

2

HISTORY

AWARDS

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Gazette, The Best hotel in Seoul

Institutional Investor, The world's Top 100 Hotels (1st in Asia) LHW Leader’s Club, Golden award

Zagat, The Best Hotel in service sector TTG Travel Award, The Best City Hotel in Seoul Institutional Investor, The Best Hotel in Seoul NCSI, No.1 Hotel in service sector

Travel+Leisure, The World’s Best Awards Asia 16th KCSI, The Best Duty Free Store

NCSI, The Best Company

Interbrand, The Best Korea Brands 2015 NSCI, No.1 Hotel in hotel sector NSCI, The Best Company

Michelin Guide 2017, 3 Star Restaurant (「La Yeon」of Seoul Hotel) KCSI, The Best Duty Free Store

Forbes Travel Guide, 4 Star Hotel

Michelin Guide 2018, 3 Star Restaurant (「La Yeon」of Seoul Hotel) Interbrand, The Best Korea Brands 50

Michelin Guide 2017, 3 Star Restaurant (「La Yeon」of Seoul Hotel) KCSI, The Best Duty Free Store

Smart APP Awards 2018, Best Award (SHILLA DUTYFREE APP) The 21th K-BPI Korean Brand Power Awards, No1 Hotel in hotel sector Interbrand, The Best Korea Brands 50

KCSI, The Best Duty Free Store

Michelin Guide 2019, 3 Star Restaurant (「La Yeon」of Seoul Hotel) Forbes Travel Guide, 5 Star Hotel

The 22th K-BPI Korean Brand Power Awards, No1 Hotel in hotel sector DFNI Frontier Awards, Technology Innovation

Michelin Guide 2020, 3 Star Restaurant (「La Yeon」of Seoul Hotel) The 23th K-BPI Korean Brand Power Awards, No1 Hotel in hotel sector

1979

1986

1989

1990

1991

2006

2008

2010

2011

2013

2014

2015

2016

2017

2018

2019

2020

The Shilla Seoul opens

Seoul Shilla Duty Free opens

Jeju Shilla Duty Free opens

The Shilla Jeju opens

IPO at Korea Exchange

Jinji Lake Hotel in Suzhou, China opens

Incheon Int’

l Airport Duty Free opens

Chungju, Daegu Int’

l Airport Duty Free opens

Gimpo Int’

l Airport Duty Free opens

LOUIS VUITTON at Incheon Int’

l Airport opens

Changi Int’

l Airport, Singapore Duty Free (BTQ)

Establishment of SHILLA STAY Co., Ltd

Changi Int’

l Airport, Singapore Duty Free (Cosmetic)

Macau Int’

l Airport Duty Free opens

Establishment of HDC SHILLA Co., Ltd

Shilla I Park Duty Free opens

Phuket Duty Free opens

Tokyo Duty Free opens

Chek Lap Kok Duty Free in Hong Kong opens

Incheon Int’

l Airport Duty Free Terminal 2 opens

Jeju Int’

l Airport Duty Free opens

Gimpo Int’

l Airport Duty Free opens

Macau Int’

l Airport Duty Free opens

Shilla Monogram Danang opens

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3

BUSINESS PORTFOLIO

TR(Travel Retail)

HOTEL & LEISURE

Seoul Downtown DF

Seoul

Online DF

Jeju

Jeju Downtown DF

Shilla Stay

(Lease)

Incheon Int’

l Airport DF

Shilla Monogram

(Management)

Jeju Int’

l Airport DF

Jinji Lake Shilla Hotel in China

(Management)

Gimpo Int’

l Airport DF

Geoje Samsung Hotel

(Management)

Changi Int’

l Airport DF in Singapore

Business Travel Management (BTM)

Chek Lap Kok Airport DF in Hong Kong

CFC (Corporate Fitness Center)

Shilla I Park Downtown DF

Leports

Macau Int’

l Airport DF

Phuket Downtown DF in Thailand

BUSINESS SITE OVERVIEW

HOTEL & LEISURE

Seoul Hotel

463 Rooms (43.3 sqm per room) 8 Banquets 7 Restaurants

BTM Business

CFC

Demarq

Jeju Hotel

429 Rooms (44.6 sqm per room) 6 Banquets 6 Restaurants

Leports Business

VANTT

Seocho Leports Center

Managed Hotels

Shilla Stay

(Dongtan, Yeoksam, Jeju, Seodaemoon, Ulsan, Mapo, Guro, Gwanghwamoon, Cheonan, Seocho, Haeundae, Samsung) Shilla Monogram,Danang

Jinji Lake Shilla Hotel in Suzhou, China Geoje Samsung Hotel

As of Mar 31th 2021

TR(Travel Retail)

Seoul DF

7,178 sqm

Jeju DF

6,384 sqm

Incheon airport DF

5,580 sqm

Jeju airport DF

400 sqm

Gimpo Int’

l Airport DF

553 sqm

Changi airport DF

8,044 sqm

Chek Lap Kok airport DF

3,283 sqm

Shilla I Park DF

11,417 sqm

Macau airport DF

1,120 sqm

Phuket DF

8,155 sqm Changi Airport DF (Singapore)

Chek Lap Kok Airport DF (HongKong) Macau Airport DF Phuket DF in Thailand

Jinji Lake Hotel

Jeju Hotel Jeju DF Jeju Airport DF Samsung Hotel Incheon Airport DF Seoul Hotel Seoul DF

Gimpo Int’l Airport DF Shilla I Park DF

5

Danang Shilla Monogram

BUSINESS PERFORMANCE (1Q 2021)

Consolidated

1Q20

1Q21

YoY

4Q20

QoQ

Revenue

943.7

727.2

-23%

841.9

-14%

TR

849.2

632.4

-26%

742.3

-15%

Hotel&Leisure

94.5

94.7

-

99.6

-5%

OP

-66.8

26.6

Turn to _Gain

-35.2

Turn to _Gain

TR

-49.0

41.7

Turn to_Gain

-16.7

Turn to _Gain

Hotel&Leisure

-17.8

-15.1

_{loss margin}Narrowed

-18.5

_{loss margin}Narrowed

OP Margin

-7.1%

3.7%

10.8%p

-4.2%

7.9%p

(bn KRW)

Revenue

OP

7

1Q20 1Q21 4Q20 727.2 -66.8 26.6 -35.2 1Q20 1Q21 4Q20 9,437 841.9

558.9 558.9 685.8 290.3 73.5 58.5 1Q20 1Q21 4Q20 Downtown Airport

OP

(bn KRW)

TRAVEL RETAIL BUSINESS

Consolidated

1Q Review

■

Revenue in airport stores decreased by -75% YoY.

The TR business reported operating profit 41.7bn KRW

.

■

Downtown DF Revenue vs. Commission rates

2Q Outlook

■

Overcoming the effects of COVID-19 and improving profitability

by pro-actively responding to changes in the business environment

(bn KRW)

8

849.2 632.4 742.3 2018 2020 2021 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Rev 721.0 756.1 859.2 940.5 558.9 393.5 657.8 685.8 558.9 Comn. 57.9 63.6 69.0 62.8 24.1 31.4 1,06.0 143.3 140.9 (%) (8.0) (8.4) (8.0) (6.7) (4.3) (8.0) (16.1) (20.9) (25.2) -49.0 41.7 -16.7 1Q20 1Q21 4Q20

Revenue

(bn KRW)

■

Revenue decreased by -26% YoY to 632.4bn KRW

Operating profits turned into gain to 41.7bn KRW

27.7 23.6 29.8 11.5 15.2 20.6 22.2 22.9 24.7 28.9 28.4 22.6 1Q20 1Q21 4Q20 Seoul Jeju Stay Leisure Others

HOTEL & LEISURE BUSINESS

Consolidated

■

Revenue increased by 0.2% YoY to 94.7bn KRW

Operating profit narrowed to loss to -15.1bn KRW

OP

(bn KRW)

1Q Review

■

Revenue of the Hotel & Leisure business increased by 0.2% YOY

recording a total revenue of 94.7bn KRW

■

Quarterly Rate of Occupancy

2Q Outlook

■

Continued focus on improving our range of products to meet

the increased demand for domestic travels

9

99.6

94.5

94.7

-17.8 -15.1 -18.5 1Q20 1Q21 4Q20 2019 2020 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Seoul 70% 83% 86% 82% 44% 28% 43% 33% 32% Jeju 91% 92% 91% 91% 61% 72% 75% 75% 61% Stay 80% 85% 86% 85% 62% 58% 67% 66% 62%

Revenue

(bn KRW)

Annual CAPEX

Y2019

Y2020

1Q21

CAPEX

60.1

41.7

2.9

Y2019

Y2020

1Q21

Debt/Equity Ratio

284%

364%

407%

Asset

3,527.2

2,893.8

2,779.1

Liabilities

2,607.7

2,269.9

2,230.7

Equity

919.5

623.9

548.4

Current Ratio

110%

150%

141%

Current Assets

1,716.1

1,164.0

1,080.9

Current Liabilities

1,438.1

775.3

764.5

EBITDA/Revenue

9.0%

1.2%

8.1%

EBITDA

515.1

38.6

59.1

Revenue

5,717.3

3,188.1

727.2

Key Financials

(bn KRW) (bn KRW) 3,527.2 2,893.8 _2,779.1 2,607.7 2,269.9 2,230.7 919.5 623.9 _548.4 1,716.1 1,164.0 _1,080.9 1,438.1 775.3 764.5

Y2019

Y2020

1Q21

Asset Debt Equity Current Asset Current Debt

11

* Consolidated

• Non-Consolidated

SHAREHOLDERS

( Common Stock )

As of Mar 31th , 2021

Affiliates 17.1% _Investors Foreign 18.4% Others 50.5% Treasury Stock 5.4% NPS 8.6%

12