Sea Reports Fourth Quarter and Full Year 2021 Results

2022-3-1

Dear Sailors,

Today we are reporting our results for the fourth quarter and full year of 2021.

In the past year, we continued to capture the unprecedented opportunities available to us during this period of accelerated digitalization. As a result, we have significantly deepened our engagement with consumers and small businesses, vastly expanded our total addressable market, and extended our leadership across all our businesses. I would like to thank all of you for your hard work and contributions, which are the core reason for our continued success.

As you may have seen, the global technology sector has recently experienced some headwinds and market valatility. Evolving macroeconomic and geopolitical trends have also brought, and may continue to bring, more uncertainties and challenges. It is therefore particularly important that we remain focused and agile, and invest in growth with prudence and efficiency. And most importantly, we must remain true to our startup identify and entrepreneurial spirit which have carried us so far.

Looking ahead, with our growing scale, market leadership, and strong cash balance, we believe we are well placed to increasingly leverage efficiencies across our ecosystem for sustainable growth.

While Shopee further strengthens its market leadership in Southease Asian and Taiwan, it is also expected to achieve positive adjusted EBITDA before the allocation of HQ costs for the Southease Asia and Taiwan region by this year. Moreover, Shopee Brazil has already achieved strong user traction, meaningful commercialization and fast improving unit economics jsut two years after entering that market. Success in this large new growth market could substantially expand Shopee's total addressable market, significantly enhance its competitiveness as a global e-commerce platform, and further diversify its businesses across the world.

Meanwhile, SeaMoney has enjoyed rapid growth, significantly expanded product offerings, and achieved meaningful commercialization. It is also expected to contribute positively to our cashflow by 2023. We are very excited to see SeaMoney has truly become another significant engine of growth for our businesses.

And while there are some headwinds impacting our digital entertainment business in the near term ,we continue to remain extremely focused on developing Garena's global platform, which we see as a key strategic asset in the long run.

As we look ahead, it is clear that consumer activities and experiences are increasingly converging online at the intersection of content, commerce, and community. We believe our ecosystem comprises a complete consumer tech and innovation stack that is distinctively relevant to the new opportunities being presented. Therefore, we will continue to focus on best positioning Sea in the long run to best serve the changing needs of fast growing digital-native generations.

I am constantly inspired by the energey, passion, and creativity of our Sailors around the world, and I believe that with this team that there is no limit on what we can achieve. I look forward to working together with all of you to build even greater success, and to further our mission of bettering lives through technology, in the year ahead.

Sincerely,

Forrest