Arranger, Organising Participant & Joint Lead Manager Joint - PowerPoint PPT Presentation

SKYCITY Offer of Fixed Rate Entertainment Seven Year Bonds Group Limited August 2015 Arranger, Organising Participant & Joint Lead Manager Joint Lead Manager Joint Lead Manager Joint Lead Manager

Important Information  A Product Disclosure Statement (“PDS”) dated 24 August 2015 has been prepared by SKYCITY Entertainment Group Limited (“Issuer”) in respect of unsubordinated, unsecured, redeemable, fixed rate, seven year bonds (“Bonds”) and lodged with the Registrar of Financial Service Providers in accordance with section 48 of the Financial Markets Conduct Act 2013 (“FMC Act”) . You should read this document (“Presentation”) in conjunction with the PDS. Capitalised terms used in this Presentation and not otherwise defined have the meanings given to them in the PDS.  Copies of the PDS can obtained free of charge by contacting your usual authorised financial adviser or by visiting www.skycityentertainmentgroup.com/BondOffer.  The information in this Presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation by the Issuer, The New Zealand Guardian Trust Company Limited (“Supervisor”), Westpac Banking Corporation (acting through its New Zealand branch) (“Arranger and Organising Participant”), ANZ Bank New Zealand Limited, Deutsche Craigs Limited or First NZ Capital Securities Limited (together with the Arranger and Organising Participant, the “Joint Lead Managers”), or any of the directors, officers, employees or agents of the Issuer, the Supervisor, the Arranger and Organising Participant or the Joint Lead Managers to subscribe for, or purchase, any of the Bonds. Nothing in this Presentation constitutes legal, financial, tax or other advice. The information in this Presentation does not take into account the particular investment objectives, financial situation, taxation position or needs of any person. You should make your own assessment of an investment in the Issuer based on the PDS and should not rely on this Presentation. No applications will be accepted or money received unless the applicant has received the PDS. In all cases, you should conduct your own research on the Issuer and analysis of any offer, the financial condition, assets and liabilities, financial position and performance, profits and losses, prospects and business affairs of the Issuer, and the contents of this Presentation.  Except as required by law, none of the Issuer, the Supervisor, the Arranger and Organising Participant, the Joint Lead Managers, nor any of their respective advisers (including commercial advisers), directors, officers, employees or agents accept any responsibility or liability for; make any representation, warranty or undertaking, express or implied, as to the fairness, accuracy or completeness of; and to the maximum extent permitted by law shall have no liability whatsoever (including, without limitation, arising from fault or negligence) for any loss arising from, this Presentation or any information contained, referred to or reflected in it or supplied or communicated orally or in writing to you or any other person. Some of the information set out in this Presentation relates to future matters, that are subject to a number of risks and uncertainties (many of which are beyond the control of the Issuer), which may cause the actual results, performance or achievements of the Issuer to be materially different from the future results set out in the Presentation. The inclusion of forward-looking information should not be regarded as a representation or warranty by the Issuer, the directors of the Issuer or any other person that those forward-looking statements will be achieved or that the assumptions underlying any forward-looking statements will in fact be correct.  The Issuer intends to offer the Bonds to the public in New Zealand. No action has been or will be taken by the Issuer which would permit an offer of Bonds, or possession or distribution of any offering material, in any country or jurisdiction where action for that purpose is required (other than New Zealand).  Application has been made to NZX Limited (“NZX”) for permission to quote the Bonds on the NZX Debt Market and all the requirements of NZX relating thereto that can be complied with on or before the date of this Presentation have been duly complied with. However, the Bonds have not yet been approved for trading and NZX accepts no responsibility for any statement in this Presentation. NZX is a licensed market operator and the NZX Debt Market is a licensed market, each regulated under the FMC Act. 2 SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds

Agenda  Introduction  Overview of SKYCITY Group  Financial Information  Credit Strengths and Key Risks  Bond Offer Information 3 SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds

Introduction  Offer by SKYCITY of unsubordinated, unsecured, redeemable, fixed rate, seven year bonds due 28 September 2022  First offer of SKYCITY bonds into New Zealand market since issue of SKYCITY capital notes in 2000  Seeking to raise up to $100 million (plus up to $25 million oversubscriptions)  Offer proceeds used to reduce Bank Debt 4 SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds

Overview of SKYCITY Group

SKYCITY Group  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  Employs approximately 5,900 people  Listed on NZX and ASX with current market cap of approximately $2.3 billion  Investment grade corporate rating of BBB- (stable outlook) from Standard & Poor’s 6 SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds

New Zealand Properties Auckland Hamilton Queenstown/Wharf    Business Activities Gaming Gaming Gaming    Hotels Restaurants & bars Restaurant & bars   Restaurants & bars Convention facilities   Convention facilities Bowling alley  Out-catering  Sky Tower Employees 3,400 400 100 (FY15 average) Normalised* Revenue $603 million $51 million $19 million (FY15) Normalised* EBITDA $248 million $20 million $3 million (FY15) Electronic Gaming 1,647 EGMs 339 EGMs SKYCITY Queenstown: Machines and Tables 110 Tables 23 Tables 86 EGMs (at 30 June 2015) 12 Tables 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 gaming GST for comparison purposes to other casinos. 7 SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds

Australian Properties Adelaide Darwin  Gaming  Gaming Business Activities  Restaurants & bars  Hotels  Restaurants & bars Employees (FY15 average) 1,200 800 Normalised* Revenue (FY15) A$174 million A$137 million Normalised* EBITDA (FY15) A$27 million A$39 million Gaming Machines and Tables 914 EGMs 634 EGMs (at 30 June 2015) 79 Tables 34 Tables Casino License Term Expires 2085 Exclusivity in northern half of Exclusivity in South Australia until Northern Territory until 2031 2035 * 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 gaming GST for comparison purposes to other casinos. 8 SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds

Revenue Sources FY15 Normalised* Revenue by Business FY15 Normalised* Revenue by Property Segment (including gaming GST ) (including gaming GST) Auckland 5% 2% 21% 15% Adelaide Non-Gaming Darwin Gaming Hamilton 59% 19% 79% Queenstown & Wharf * 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 gaming GST for comparison purposes to other casinos. 9 SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds

NZICC Project  SKYCITY committed to designing and building the NZICC  In return, regulatory concessions provided for SKYCITY Auckland * : ‒ Extension of casino venue license to 2048 ‒ Additional EGMs, tables and ATGs ‒ TITO and cashless gaming ‒ Expansion of casino venue description ‒ Compensation if increase in casino duty within seven years of signing building works contract  Further plans to expand NZICC car park and develop five-star 300-room hotel and laneway  Resource consent proceeding on non-notified basis  SKYCITY expects to begin construction by December 2015 * Concessions become effective once all conditions of the NZICC Agreement are satisfied including signing of a building works contract. 10 SKYCITY Entertainment Group Limited – Offer of Fixed Rate Seven Year Bonds