Hotel Shilla (008770) investor relations material

Executive summary

• Revenue for 2Q 2026 declined by 5.2% year-over-year to 971.8bn KRW, while operating profit surged by 602% year-over-year to 61.1bn KRW, reflecting a significant turnaround in profitability.

• Operates two main segments: Travel Retail (TR) and Hotel & Leisure, with global presence and diversified revenue streams.

• TR segment remains a top global duty-free operator, while Hotel & Leisure continues to expand premium offerings and international footprint.

• The company is part of a large conglomerate, with strong governance, robust internal controls, and a stable shareholder base.

• The company operates across travel retail, hotel, leisure, and business travel management, with a focus on premium lifestyle services.

Financial highlights

• Consolidated revenue: 971.8bn KRW in 2Q 2026 (down 5.2% YoY); operating profit: 61.1bn KRW (up 602% YoY).

• Consolidated revenue for H1 2026 was KRW 2,025.3 billion, down from KRW 4,068.3 billion in H1 2025.

• Operating income rose to KRW 81.6 billion from KRW 13.5 billion year-over-year.

• EBITDA margin improved to 9.6% in 2Q 2026 from 3.8% in 2025.

• Net profit attributable to owners was KRW 27.4 billion, reversing a net loss of KRW 172.8 billion in H1 2025.

Outlook and guidance

• Travel retail segment is focusing on profitability recovery amid changing market conditions.

• Hotel & leisure segment aims to maintain strong performance by flexibly responding to customer demand.

• The company is focused on cost reduction, restructuring, and portfolio diversification to address ongoing challenges in the duty-free sector.

• Plans to strengthen financial structure and improve profitability across domestic and overseas operations.

• Continues to pursue asset-light strategies and new business opportunities in leisure, senior living, and condominium operations.