Incorporated in Hong Kong with limited liability A Hong Kong listed company (Stock code: 200) CONTENTS Key Performance Indicators 16 Corporate Profile 18 Corporate Structure 19 Chairman & CEO’s Statement 20 Management Discussion and Analysis 22 Board of Directors and Senior Management 40 Corporate Governance Report 44 Report of the Directors 59 Independent Auditor’s Report 93 Consolidated Statement of Profit or Loss and 100 Other Comprehensive Income Consolidated Statement of Financial Position 102 Consolidated Statement of Changes in Equity 104 Consolidated Statement of Cash Flows 107 Notes to Consolidated Financial Statements 109 Five-year Financial Summary 218 Corporate Information 219 Melco International Development Limited | Annual Report 2020 1 HEALTH AND SAFETY: OUR TOP PRIORITY Safeguarding the well-being of our valued guests and colleagues is our top priority. Morpheus and Nüwa at City of Dreams, Star Tower at Studio City, Altira Macau and Nüwa at City of Dreams Manila have become among the first hotels and resorts in the world to achieve the Sharecare Health Security VERIFIED® with Forbes Travel Guide certification. 2 Melco International Development Limited | Annual Report 2020 Melco International Development Limited | Annual Report 2020 3 4 Melco International Development Limited | Annual Report 2020 SIMPLE ACTS OF KINDNESS During the pandemic, our Chairman and CEO deployed colleagues in Macau to volunteer during working hours. The “Simple Acts of Kindness” initiative resulted in almost 8,000 participants and over 600 activities to benefit local NGOs and SMEs, including the elderly, single families, long-term patients and children while practicing social distancing with volunteer-made angel wings made from hangers and used towels. The initiative was recognized by the 2020 Industry Community Awards, while our Chairman and CEO was awarded the “Outstanding Individual Award” for his leadership. Melco International Development Limited | Annual Report 2020 5 ABOVE & BEYOND The Group remains firmly driven by the focus around our sustainability goals while inspiring others to follow suit. Our goals stand at the core of the Group’s strategy and have become part of the daily operations for our entire workforce, at all levels. For instance, we are embracing Artificial Intelligence to lead the charge against food waste in Macau and adopting a revolutionary water refill system in resort guest rooms to save millions of plastic bottles annually. 6 Melco International Development Limited | Annual Report 2020 Melco International Development Limited | Annual Report 2020 7 8 Melco International Development Limited | Annual Report 2020 CULINARY AND SERVICE EXCELLENCE The Group strives to deliver the most exceptional experiences to each of our guests. Four signature restaurants across our properties have been honoured by Michelin Guide Hong Kong Macau 2021 with a collective total of seven Michelin-stars. The Group has also been honoured by 2021 Forbes Travel Guide with a collective total of 97 Stars, including 17 Five-Star awards, leading among Macau and Asia’s integrated resort operators. Melco International Development Limited | Annual Report 2020 9 SAVOR THE FUN AND EXCITEMENT Studio City is undergoing its Phase 2 expansion to provide new, cutting- edge entertainment options to visitors of all ages. Upon completion, Studio City will offer approximately 900 additional luxury hotel rooms and suites, one of the world’s largest indoor/outdoor water parks, a cineplex, fine-dining restaurants and state-of-the-art MICE space. 10 Melco International Development Limited | Annual Report 2020 Melco International Development Limited | Annual Report 2020 11 12 Melco International Development Limited | Annual Report 2020 EUROPE’S LARGEST INTEGRATED RESORT COMING SOON Set to open in the summer of 2022, City of Dreams Mediterranean will become Europe’s largest premier integrated resort upon completion. The pioneering project will feature a 16-storey, five- star hotel with more than 500 luxury guest rooms and suites, approximately 10,000 square metres of MICE space, an outdoor amphitheater, a family adventure park, and a variety of fine- dining outlets and luxury retail. Melco International Development Limited | Annual Report 2020 13 ENTERTAINING POSSIBILITIES ACHIEVING GROWTH VISION To contribute to the growth and future of the communities we serve, inspiring hope and happiness in people all over the world. MISSION To be a dynamic company that leads the field in leisure and entertainment, we continually explore new opportunities for growth and development that create value for all stakeholders. 14 Melco International Development Limited | Annual Report 2020 Melco International Development Limited | Annual Report 2020 15 KEY PERFORMANCE INDICATORS KEY FINANCIAL PERFORMANCE INDICATORS NET REVENUES NEGATIVE ADJUSTED EBITDA HK$13.42 billion Representing a decrease of HK$31.56 billion or 70.2%, HK$1.20 billion Compared to Adjusted EBITDA of HK$12.50 billion compared to HK$44.99 billion for the year ended 31 December 2019 for the year ended 31 December 2019 BASIC LOSS PER SHARE LOSS FOR THE YEAR HK$4.19 HK$12.38 billion Compared to basic earnings per share attributable Compared to profit for the year of HK$1.77 billion to owners of the Company of HK$0.46 for the year ended 31 December 2019 for the year ended 31 December 2019 COVID-19 and the subsequent travel restrictions significantly well as enhance its ability to fund development projects that are impacted the operating and financial performance of Melco integral to the Group’s long-term growth. International Development Limited (“Melco International” or the While impacted by COVID-19, the Group remains committed “Company”, together with its subsidiaries collectively referred to to its global development program. In Macau, construction on as the “Group”) throughout the year of 2020. the expansion of Studio City, and our facility upgrade works at For the year ended 31 December 2020, net revenues were City of Dreams are ongoing, The fully renovated Nüwa recently HK$13.42 billion and the loss after tax during the year amounted reopened at the end of March 2021, and The Countdown will be to HK$12.38 billion. The decrease was primarily attributable to closed for renovation as part of its rebranding. In Europe, City softer performance in our casino and hospitality operations as a of Dreams Mediterranean is expected to open in the summer of result of the COVID-19 pandemic, which resulted in temporary 2022, subject to fulfilling all conditions under the Cyprus License casino closures and a significant decline in inbound tourism. and obtaining all requisite regulatory approvals. In the wake of the pandemic, the Group has prudently managed The Group remains optimistic on the recovery of Macau and its balance sheet with cost reduction programs to minimize cash its expected increased visitation in the near term. The rollout outflows and implemented rationalization efforts to control capital of COVID-19 vaccines in Macau and many other countries expenditures. Meanwhile, the Group has issued senior notes and after possible easing of travel restrictions are expected to soon completed private placements to reinforce its balance sheet as facilitate the tourism industry’s recovery. 16 Melco International Development Limited | Annual Report 2020 KEY PERFORMANCE INDICATORS NON-FINANCIAL KEY PERFORMANCE INDICATORS Despite the unexpected challenges presented by the COVID-19 pandemic in 2020, the Group continued to forge ahead with maintaining the highest standards of sustainability governance, industry-leading environmental protection and corporate social responsibility in accordance with our ‘Above & Beyond’ strategy. Details of the Group’s various non-financial key performance indicators, including stakeholder engagement, environmental impact and other community development efforts, will be disclosed in its 2020 Environmental, Social and Governance (“ESG”) Report to be published in due course. Community Engagement The Group is committed to engaging in various community programmes to contribute to the growth and future of the communities it serves. The Group worked with its trusted community partners through a combination of employee volunteerism, charitable or in-kind donations, and contributions to serve various vulnerable groups in society to promote social inclusion and integration. More than HK$264 million in charitable and in-kind donations Over 177,000 colleague participants or contributions in 2020 participated in our global CSR activities 53% specifically directed since 2007 at addressing the COVID-19 pandemic Environmental Protection As an environmentally responsible company, the Group is committed to creating a more sustainable future for our children and the planet while offering customers new experiences and possibilities. The Group is making substantial progress towards carbon neutrality, energy saving and waste and water reduction at its properties around the world. Greenhouse Gas (“GHG”) Emissions 2018 2019 2020 (1) Total GHG Emissions (MtCO2e) 26,175 32,718 17,145 Emissions Intensity by Gross Floor Area (square feet) 0.0017 (2) 0.0021 (2) 0.0011 Energy Consumption 2018 2019 2020 Total Energy Consumption (MWh) 508,604 518,668 (1) 378,848 Energy Intensity by Gross Floor Area (square feet) 0.033 (2) 0.034 (2) 0.025 Waste Footprint 2018 2019 2020 Waste Disposal (tons) 15,611 18,394 8,275 Waste Intensity by Gross Floor Area (square feet) 0.0010 (2) 0.0012 (2) 0.0005 Notes: 1. Re-calculation for 2019 emissions