Macau Legend Development Limited — Interim / Quarterly Report 2015

May 14, 2015

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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Macau Legend Development Limited 澳 門 勵 駿 創 建 有 限 公 司[*]

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1680)

ANNOUNCEMENT ON SELECTED UNAUDITED KEY PERFORMANCE INDICATORS FOR THE FIRST QUARTER ENDED 31 MARCH 2015

This announcement is made by the Company pursuant to Rule 13.09(2)(a) of the Listing Rules, and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The Board announces certain selected unaudited key performance indicators of the Group for the first quarter ended 31 March 2015 (‘‘Q1 2015’’) as follows:

FINANCIAL HIGHLIGHTS

• . Total gross gaming revenue of gaming tables decreased by approximately 53.8% to approximately HK$1,134.5 million in Q1 2015 from approximately HK$2,456.9 million in the corresponding period in 2014 (‘‘Q1 2014’’) including decreases of: (i) approximately 32.6% to approximately HK$305.8 million from approximately HK$453.4 million in respect of mass market tables at Pharaoh’s Palace Casino; (ii) approximately 62.5% to approximately HK$726.1 million from approximately HK$1,935.1 million in respect of outsourced VIP tables at Pharaoh’s Palace Casino; and (iii) approximately 24.4% to approximately HK$51.7 million from approximately HK$68.4 million in respect of mass market tables at Babylon Casino when compared to those in Q1 2014, which was offset by the gross gaming revenue contributed by New Legend of approximately HK$50.9 million through the VIE Structure during Q1 2015

• . Total reported revenue decreased by approximately 21.1% to approximately HK$364.2 million in Q1 2015 from approximately HK$461.4 million in Q1 2014

• Gaming revenue decreased by approximately 26.3% to approximately HK$242.1 million in Q1 2015 from approximately HK$328.4 million in Q1 2014

• Non-gaming revenue decreased by approximately 8.2% to approximately HK$122.1 million in Q1 2015 from approximately HK$133.0 million in Q1 2014

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• . Adjusted EBITDA decreased by approximately 65.6% to approximately HK$74.9 million in Q1 2015 from approximately HK$218.0 million in Q1 2014

• Adjusted EBITDA from gaming services decreased by approximately 54.8% to approximately HK$101.4 million in Q1 2015 from approximately HK$224.2 million in Q1 2014

• Adjusted EBITDA from operations of the Group excluding MFW Group and unallocated corporate expenses decreased by approximately 51.2% to approximately HK$113.6 million in Q1 2015 from approximately HK$232.9 million in Q1 2014

OPERATIONAL HIGHLIGHTS

• . The Landmark Macau:

• Occupancy rate decreased to approximately 63.8% in Q1 2015 from approximately 93.0% in Q1 2014

• Revenue per available room decreased by approximately 24.5% to approximately HK$1,038.1 in Q1 2015 from approximately HK$1,374.8 in Q1 2014

• . Rocks Hotel:

• Occupancy rate decreased to approximately 73.7% in Q1 2015 from approximately 85.6% in Q1 2014

• Revenue per available room decreased by approximately 27.5% to approximately HK$956.7 in Q1 2015 from approximately HK$1,319.0 in Q1 2014

• . Harbourview Hotel (opened on 2 February 2015):

• Occupancy rate was approximately 42.3% in Q1 2015

• Revenue per available room was approximately HK$509.4 in Q1 2015

• . Visitors to MFW increased by approximately 13.9% to approximately 986,000 visitors in Q1 2015 from approximately 866,000 visitors in Q1 2014

CASH AND CASH EQUIVALENT AND BORROWINGS AS AT 31 MARCH 2015

• . Cash and cash equivalent amounted to approximately HK$4,362.2 million as at 31 March 2015 (including pledged bank deposit of approximately HK$20.6 million)

• . Secured bank borrowings amounted to approximately HK$3,960.9 million and unsecured other borrowings amounted to approximately HK$234.0 million

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REVENUE

For Q1 2015, the Group recorded total reported revenue of approximately HK$364.2 million, representing a decrease of approximately HK$97.2 million or approximately 21.1% over that of Q1 2014. A breakdown of the Group’s revenue for the periods indicated is as follows:

Gaming services: Pharaoh’s Palace Casino — Mass market tables — VIP tables — Self-run (New Legend) — Outsourced — Slot machines Babylon Casino — Mass market tables — VIP tables — Self-run (New Legend) — Slot machines Sub-total for gaming services Non-gaming operations: The Landmark Macau Macau Fisherman’s Wharf Sub-total for non-gaming operations Total reported revenue	First quarter ended 31 March 2015 2014 HK$’000 HK$’000 168,187 249,360 28,152 — 14,522 38,702 2,100 2,171 212,961 290,233 28,385 37,604 734 — — 549 29,119 38,153 242,080 328,386 63,459 84,909 58,647 48,103 122,106 133,012 364,186 461,398	First quarter ended 31 March 2015 2014 HK$’000 HK$’000 168,187 249,360 28,152 — 14,522 38,702 2,100 2,171 212,961 290,233 28,385 37,604 734 — — 549 29,119 38,153 242,080 328,386 63,459 84,909 58,647 48,103 122,106 133,012 364,186 461,398
		290,233 37,604 — 549
		38,153 328,386
		84,909 48,103
		133,012
		461,398

Gaming revenue and non-gaming revenue of the Group for Q1 2015 decreased by approximately 26.3% to approximately HK$242.1 million, and by approximately 8.2% to approximately HK$122.1 million, respectively, when compared to those of Q1 2014.

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ADJUSTED EBITDA

Adjusted EBITDA of the Group for Q1 2015 was approximately HK$74.9 million, representing a decrease of approximately HK$143.0 million or approximately 65.6% over that of Q1 2014. An analysis of Adjusted EBITDA by segments (after elimination of inter-segment results) for the periods indicated is as follows:

Gaming services Non-gaming operations Sub-total Unallocated corporate expenses Adjusted EBITDA	The Group excluding MFW Group HK$’000 113,965 (345) 113,620 (14,536) 99,084	First quarter ended 31 March 2015 2014 MFW Group Consolidated The Group excluding MFW Group MFW Group HK$’000 HK$’000 HK$’000 HK$’000 (12,536) 101,429 218,473 5,760 (11,616) (11,961) 14,400 (4,741) (24,152) 89,468 232,873 1,019 — (14,536) (15,923) — (24,152) 74,932 216,950 1,019	Consolidated HK$’000 224,233 9,659 233,892 (15,923) 217,969

Adjusted EBITDA for Q1 2015 from gaming services decreased by approximately 54.8% to approximately HK$101.4 million and non-gaming operations recorded a loss in Adjusted EBITDA of approximately HK$12.0 million in Q1 2015. Adjusted EBITDA for Q1 2015 from operations of the Group excluding MFW Group and unallocated corporate expenses, mainly arising from the operations at The Landmark Macau, decreased by approximately 51.2% to approximately HK$113.6 million when compared to that of Q1 2014.

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SELECTED KEY OPERATIONAL DATA

Gaming services

The following table sets forth certain key operational data in respect of the gaming services of the Group for the periods indicated:

	First quarter	ended
	31 March
	2015	2014
	HK$’000	HK$’000
Pharaoh’s Palace Casino:
Mass market tables
Games drop1	1,324,315	1,131,765
Net win	305,794	453,382
Hold rate1	23.09%	40.06%
Average number of tables	60	58
Net win per table per day	57	87
Self-run VIP tables (New Legend)
Games turnover	1,397,284	—
Net win	49,630	—
Win percentage	3.55%	—
Average number of tables	7	—
Net win per table per day	79	—
Outsourced VIP tables
Games turnover	21,145,734	65,818,871
Net win	726,132	1,935,088
Win percentage	3.43%	2.94%
Average number of tables	40	70
Net win per table per day	202	307
Babylon Casino:
Mass market tables
Games drop1	335,714	332,357
Net win	51,710	68,371
Hold rate1	15.40%	20.57%
Average number of tables	24	21
Net win per table per day	24	36

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	First quarter ended	First quarter ended
	31 March
	2015	2014
	HK$’000	HK$’000
Self-run VIP tables (New Legend)
Games turnover	175,205	—
Net win	1,319	—
Win percentage	0.75%	—
Average number of tables	9	—
Net win per table per day	2	—

Remark:

• 1 During Q1 2014, in order to minimise the risk of the Group’s exposure to the increasing number of counterfeit bank notes in the market, the Group took a temporary measure for the mass market gaming tables that gaming patrons were requested to exchange HK$ one thousand bank notes for chips at the Group’s cashiers instead of on the gaming tables. Since the exchange of bank notes for chips at the Group’s cashiers did not count towards games drop by definition, the temporary measure resulted in lower games drop during Q1 2014, which resulted in the figures of games drop and related hold rates not being comparable to those of Q1 2015.

As at 31 March 2015 and 31 March 2014, the Group had the following number of gaming tables in its two casinos:

Mass market tables VIP tables* Total gaming tables^	Pharaoh’s Palace Casino 60 51 111	2015 Babylon Casino 27 12 39	As at 31 Total 87 63 150	March Pharaoh’s Palace Casino 56 75 131	2014 Babylon Casino 19 — 19	Total 75 75
						150

Remarks:

• Included in the number as at 31 March 2015 was a total of 12 gaming tables (31 March 2014: 2) which were temporarily not in operation.

• ^ The number of total gaming tables as at 31 March 2015 shown above does not include the 35 additional gaming tables granted by the DICJ to the Company on 28 October 2014.

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Hotel operations

The following table sets forth certain key operational data in respect of hotel operations of the Group for the periods indicated:

	First quarter ended	First quarter ended
	31 March
	2015	2014
The Landmark Macau
Occupancy rate (%)	63.8	93.0
Average daily room rate (HK$)	1,627.1	1,478.8
Revenue per available room (HK$)	1,038.1	1,374.8
Rocks Hotel
Occupancy rate (%)	73.7	85.6
Average daily room rate (HK$)	1,298.1	1,540.1
Revenue per available room (HK$)	956.7	1,319.0
Harbourview Hotel (opened on 2 February 2015)
Occupancy rate (%)	42.3	—
Average daily room rate (HK$)	1,204.3	—
Revenue per available room (HK$)	509.4	—

Visitation to MFW

			First quarter ended	First quarter ended
			31 March
			2015	2014
			’000	’000
Number	of	visitors	986	866

CASH AND CASH EQUIVALENT AND BORROWINGS

As at 31 March 2015, cash and cash equivalent held by the Group amounted to approximately HK$4,362.2 million (including pledged bank deposits of approximately HK$20.6 million). The Group’s secured bank borrowings and unsecured other borrowings amounted to approximately HK$3,960.9 million and HK$234.0 million, respectively.

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CORPORATE AND BUSINESS UPDATES

During Q1 2015 and up to the date of this announcement, the Group had the following major corporate and business updates:

(i) Opening of Harbourview Hotel

Harbourview Hotel, the first new hotel under the redevelopment of MFW, commenced soft opening on 2 February 2015 and had its grand opening on 11 February 2015. With design based on the 18th century Prague architectural style, Harbourview Hotel contributes an additional 389 rooms and 55 suites to the tourism market of the Macau Peninsula. The hotel is connected via footbridges to the adjacent Babylon Casino.

(ii) Cooperation with Dynam

The Company entered into a non-binding Memorandum of Understanding for Business Cooperation (the ‘‘MOU’’) with DYNAM JAPAN HOLDINGS Co., Ltd (‘‘Dynam’’), a company incorporated in Japan and whose shares are listed on the Main Board of the Stock Exchange (stock code: 6889), on 23 August 2013 in respect of opportunities for business cooperation between the two groups. The terms of the MOU have been extended and further extended with an expiry date of 23 February 2015. The Company and Dynam have not concluded or entered into any definitive agreement before the expiry of the MOU, and the MOU expired on 23 February 2015. Further details of the expiry of the MOU are set out in the Company’s announcement dated 24 February 2015.

CAUTION STATEMENT

Shareholders of the Company and potential investors should be advised that the selected key performance indicators and other updates as disclosed above relate only to certain parts of the Group’s operations and are based on the Group’s internal records and management accounts. The related financial data has not been reviewed or audited by the Company’s audit committee or independent auditors. Accordingly, the Board cautions shareholders of the Company and potential investors not to rely unduly on such data or information and to exercise caution when dealing in the securities of the Company.

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DEFINITIONS

In this announcement, the following expressions have the following meanings unless the context otherwise requires:

• ‘‘Adjusted EBITDA’’

• the Group’s earnings before interest income, finance costs, income taxes, depreciation, release of prepaid lease payments, amortisation, loss on disposal of property and equipment, unrealised exchange gain/ loss, share-based payments, pre-opening expenses and one-off costs incurred or associated with corporate exercises including placement of the Company’s shares

• ‘‘Board’’ the board of Directors ‘‘Company’’ Macau Legend Development Limited, a company incorporated in the Cayman Islands with limited liability, the issued shares of which are listed on the Main Board of the Stock Exchange

• ‘‘DICJ’’ Direcção de Inspecção e Coordenação de Jogos, the Gaming Inspection and Coordination Bureau in Macau

• ‘‘Directors’’ the directors of the Company ‘‘Group’’ the Company and its subsidiaries ‘‘HK$’’ Hong Kong dollars, the lawful currency of Hong Kong ‘‘Listing Rules’’ the Rules Governing the Listing of Securities on the Stock Exchange ‘‘MFW’’ Macau Fisherman’s Wharf operated by Macau Fisherman’s Wharf International Investment Limited

• ‘‘MFW Group’’ Macau Fisherman’s Wharf International Investment Limited and its subsidiaries

• ‘‘New Legend’’ New Legend VIP Club Limited, a company incorporated in Macau by Mr Yip Wing Fat, Frederick, and consolidated as a subsidiary of the Company under the VIE Structure

• ‘‘Stock Exchange’’ The Stock Exchange of Hong Kong Limited

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• ‘‘VIE Agreements’’

• the exclusive management and consultancy services agreement, the exclusive undertaking to sell agreement, the transfer of profit and loan agreement, the share and equity pledge agreement and the power of attorney entered into among Hong Hock Development Company Limited, New Legend and Mr Yip Wing Fat, Frederick, where appropriate, further details of which are set out in the Company’s circular dated 9 June 2014

• ‘‘VIE Structure’’

• the structure established since 3 July 2014 through the entering into of the VIE Agreements, which enables the Group to indirectly participate in the gaming promotion business operations in Macau through New Legend

• ‘‘%’’

• per cent

By Order of the Board

• Macau Legend Development Limited Chow Kam Fai, David

• Co-chairman, executive Director and chief executive officer

Hong Kong, 14 May 2015

As at the date of this announcement, the executive Directors are Chow Kam Fai, David, Lam Fong Ngo and Sheldon Trainor-DeGirolamo; the non-executive Director is Tong Ka Wing, Carl; and the independent non-executive Directors are Fong Chung, Mark, Xie Min and Tam Wai Chu, Maria.

• For identification purposes only

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