6 th May, 2015 Client Market Services NZX Limited Level 1, NZX Centre 11 Cable Street W ELLI NGTON RE: SKYCITY ENTERTAINMENT GROUP LIMITED (SKC) Please find attached our presentation for the Australian Investor Conference and Asian Roadshow. Yours faithfully Peter Treacy Company Secretary SKYCI TY Entertainm ent Group Lim ited Federal House 86 Federal Street PO Box 6443 Wellesley Street Auckland New Zealand Telephone + 64 (0)9 363 6141 Facsimile + 64 (0)9 363 6140 www.skycitygroup.co.nz
SKYCITY Entertainment Group Limited Presentation for Australian Investor Conference and Asian Roadshow May 2015
Overview of SKYCITY
SKYCITY Group Overview Owner/operator of casino and other entertainment facilities in New Zealand and Australia Key activities – casinos, restaurants and bars, hotels, convention facilities and out- catering services Two major growth projects – NZICC and Adelaide transformation Employ approximately 5,900 people Listed on NZX and ASX with current market cap of approximately A$2.4 billion Investment grade corporate rating of BBB- (stable outlook) from Standard & Poor’s 3
New Zealand Properties Auckland Hamilton Queenstown/Wharf Gaming Gaming Gaming Business Activities Hotels Restaurants & bars Restaurant & bars Restaurants & bars Convention facilities Convention facilities Bowling alley Out-catering Sky Tower Employees (2014 average) 3,300 400 100 Normalised Revenue* $533 million $49 million $14 million (FY14) Normalised EBITDA* $218 million $17 million $2 million (FY14) Electronic Gaming 1,647 EGMs 339 EGMs SKYCITY Queenstown: Machines and Tables (at 110 Tables 23 Tables 86 EGMs, 12 Tables 31 December 2014) SKYCITY Wharf: 70 EGMs, 6 Tables Casino License Term Expires 2021 (extended to Expires 2027 Expires 2025 2048 under NZICC (Queenstown) and 2024 agreement if conditions (Wharf) satisfied) * Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense items. Normalised revenue is grossed up for GST for comparison purposes to other casinos. 4
Australian Properties Adelaide Darwin Gaming Gaming Business Activities Restaurants & bars Hotels Restaurants & bars Employees (2014 average) 1,200 900 Normalised Revenue* (FY14) A$166 million A$133 million Normalised EBITDA* (FY14) A$34 million A$36 million Gaming Machines at Tables 996 EGMs 633 EGMs (at 31 December 2014) 70 Tables 65 Tables Casino License Term Expires 2085 Exclusivity in northern half Exclusivity in South Australia of Northern Territory until until 2035 2031 * Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense items. Normalised revenue is grossed up for GST for comparison purposes to other casinos. 5
Historical Financial Performance (NZ$ million) FY14 1H15 Reported Revenue (including Gaming GST) 902.5 495.5 Reported EBITDA 256.4 140.8 Reported NPAT 98.5 54.6 Normalised Revenue* (including Gaming GST) 927.3 510.0 Normalised EBITDA* 287.6 154.4 Normalised NPAT* 123.2 66.6 Reported EPS 17.0¢ 9.3¢ Normalised EPS* 21.3¢ 11.4¢ DPS 20.0¢ 10.0¢ Total Debt 657.1 703.4 Total Debt/Normalised EBITDA* 2.3x 2.3x Normalised EBITDA/Normalised Interest 6.5x 7.0x Expense* * Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense items. Normalised revenue is grossed up for GST for comparison purposes to other casinos. 6
Revenue and Earnings Mix (FY14) FY14 Normalised EBITDA* FY14 Normalised Revenue* (excl. Corporate Costs) Auckland Darwin Darwin 58% Auckland 16% 13% 69% Adelaide 12% Adelaide 20% Qtwn 1% Hamilton 5% Qtwn 1% Hamilton 5% * Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense items. Normalised revenue is grossed up for GST for comparison purposes to other casinos. 7
Share Ownership and Research Coverage Member of ASX 200 and NZX10 indices Open register with largest shareholder around 7% Consistently within top 5 most liquid stocks traded on NZX Covered by 14 brokers – 5 from NZ, 9 from Australia SKYCITY share register: geographic mix as at February 2015 SKYCITY broker coverage (Asia), 4% (NZ insto), 10% (UK/Europe), 11% (North (NZ retail), 29% Amercia), 14% (Australia), 32% 8
Key Investment Features Exclusive long-term casino licences in all jurisdictions Properties are major entertainment destinations in all key markets Diversified revenue and earnings base – by both geography and business activity Favourable macroeconomic environment in Auckland, our key market Achieving organic growth following recent capital investment – especially Auckland, Adelaide and IB Significant earnings growth potential from two major projects – NZICC and Adelaide expansion Strong cash flow generation and attractive cash flow yield Robust balance sheet and stable BBB- credit rating 9
1H15 Results Summary
1H15 Results Summary Normalised revenue (including gaming GST) up 9.2% to NZ$510.0 million Normalised EBITDA up 3.1% to NZ$154.4 million and normalised NPAT up only marginally to NZ$66.6 million Strong results from Auckland and IB were curtailed by a poor result from Adelaide Auckland was the standout performer and has delivered four consecutive quarter of EBITDA growth IB experienced record activity, with turnover up 83.6% to NZ$4.7 billion and normalised EBITDA up 134% to NZ$14.5 million Hamilton returned to revenue and EBITDA growth after changes to the management team Adelaide experienced ongoing disruptions from the now-completed redevelopment works Darwin achieved modest EBITDA growth despite flat revenues in a challenging local market 11
1H15 Results Summary – Normalised 1H15 1H14 Movement Normalised $m $m $m % Normalised Revenue (including Gaming GST) 467.0 510.0 43.0 9.2% Gaming GST (46.1) (41.7) (4.4) (10.6%) Normalised Revenue 463.9 425.3 38.6 9.1% Expenses (309.5) (275.5) (34.0) (12.3%) Normalised EBITDA 154.4 149.8 4.6 3.1% Depreciation and Amortisation (43.2) (38.2) (5.0) (13.1%) Normalised EBIT 111.2 111.6 (0.4) (0.3%) Interest Cost (22.0) (22.6) 0.6 2.7% Normalised NPBT 89.2 89.0 0.2 0.2% Tax (22.6) (22.6) (0.0) (0.0%) Normalised NPAT 66.6 66.4 0.2 0.3% Normalised EPS 11.4 cps 11.5 cps (0.1 cps) (0.9%) • Revenue (including Gaming GST) is shown above to facilitate Australasian comparisons • Normalised NPAT adjusts for certain items and International Business (IB) at theoretical win rate of 1.35% versus actual 1.04% in 1H15 (1H14: 1.28%) • Average NZD/AUD cross-rate during 1H15 0.9147 and 1H14 0.8820 12
1H15 Results Summary – Reported 1H15 1H14 Movement Reported $m $m $m % Reported Revenue (including Gaming GST) 495.5 465.1 30.4 6.5% Gaming GST (44.0) (41.6) (2.4) (5.8%) Reported Revenue 451.5 423.5 28.0 6.6% Expenses (310.7) (279.9) (30.8) (11.0%) Reported EBITDA 140.8 143.6 (2.8) (1.9%) Depreciation and Amortisation (43.2) (39.2) (4.0) (10.2%) Reported EBIT 97.6 104.4 (6.8) (6.5%) Interest Cost (24.9) (24.2) (0.7) (2.9%) Profit from disposal of Christchurch Casino 0.0 0.9 (0.9) (100.%) Reported NPBT 72.7 81.1 (8.4) (10.4%) Tax (18.1) (20.0) 1.9 9.5% Reported NPAT 54.6 61.1 (6.5) (10.6%) Reported EPS 9.3 cps 10.6 cps (1.3 cps) (12.3%) Interim Dividend NZ$ cps 10.0 cps 10.0 cps - - • Revenue (including Gaming GST) is shown above to facilitate Australasian comparisons 13
1H15 Results Summary – Revenues by Property Movement 1H15 1H14 $m $m $m % New Zealand Casinos Auckland 302.5 258.0 44.5 17.2% Hamilton 25.2 24.9 0.3 1.2% Queenstown, Other 7.0 7.1 (0.1) (1.4%) Total New Zealand 334.7 290.0 44.7 15.4% Australian Casinos Adelaide (A$) 87.3 83.4 3.9 4.7% Darwin (A$) 73.1 72.9 0.2 0.3% Total Australia (A$) 160.4 156.3 4.1 2.6% Total Australia at LY fx rate 0.8820 (NZ$) 181.9 177.0 4.9 2.6% 49.6 10.6% Normalised Revenues at constant currency 516.6 467.0 Exchange rate impact at CY fx rate 0.9147 (6.6) - 43.0 9.2% Normalised Revenues at actual currency 510.0 467.0 (12.6) Adjust International Business to actual win rate (14.5) (1.9) Reported Revenue at actual currency 495.5 465.1 30.4 6.5% • Revenue (including Gaming GST) is shown above to facilitate Australasian comparisons • Normalised Revenue is adjusted for IB at theoretical win rate of 1.35%, versus actual 1.04% in 1H15 (1H14: 1.28%) • Average NZD/AUD cross-rate during 1H15 0.9147 and 1H14 0.8820 14
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