Event Hospitality and Entertainment : 2019 Year End Results Presentation

RESULTS PRESENTATION

Y E A R E N D E D 3 0 J U N E 2 0 1 9

EVENT YEAR END RESULTS WEBCAST AND DIAL IN DETAILS

F R I D AY 2 3 A U G U S T 2 0 1 9 9 : 0 0 A M ( A E D T )

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T O L L F R E E ( A U S T R A L I A O N L Y ) :
1 8 0 0	8 7 0	6 4 3
Australia: [phone]	India: 000 8001 008 443
New Zealand: 0800 453 055	Japan: 005 3116 1281
Canada: 1855 881 1339	Singapore: 800 1012 785
China: 4001 200 659	United Kingdom: 0800 051 8245
Hong Kong: 800 966 806	United States: 1855 881 1339

E V E N T H O S P I T A L I T Y & E N T E R T A I N M E N T

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RESULTS OVERVIEW

G R O U P	G R O U P
R E V E N U E	E B I T D A *
$998m 2%	$229m 3%

Fully franked final dividend of 31 cents per share.

Y E A R E N D E D	2 0 1 8	2 0 1 9	V A R
3 0 J U N E	$ ' 0 0 0	$ ' 0 0 0	%
Entertainment
Australia	68,600	60,198	(12.2)%
New Zealand	11,150	10,015	(10.2)%
Hospitality
Hotels and Resorts	69,270	69,502	0.3%
Leisure
Thredbo Alpine Resort	21,838	25,017	14.6%
Property
Property and Other Investments	16,528	13,436	(18.7)%
Unallocated expenses	(17,034)	(19,223)	12.9%
Normalised profit (before interest and tax)	170,352	158,945	(6.7)%
Net interest costs	(5,874)	(9,355)
Income tax expense	(52,821)	(45,319)
Profit from continuing operations	111,657	104,271	(6.6)%
Individually significant items - net of tax	(10,198)	2,808
Discontinued operations -	10,451	4,810
Entertainment Germany
Total reported profit	111,910	111,889	(0.0)%

Hotels, Thredbo and underlying Entertainment NZ delivered earnings growth. Entertainment Australia impacted by genre mix of films, less screen advertising, new sites yet to mature and new revenue accounting standard (AASB 15).

Record Event NZ box office achieved and underlying NZ earnings up 9.6%.**

Record Hotels group PBIT result despite a more competitive market . Group like for like growth across all key metrics - occupancy, average room rate and

revpar.

Another record Thredbo result with PBIT + 14.6%.

Valuation of investment properties increased +$1.931m, but lower than the prior year increase. Rental incomes increased 6% on prior year.

Underlying unallocated expenses flat with prior year - impacted by bonus payments related to record prior year performance.

Normalised profit before interest, tax from continuing operations down 6.7% and total reported profit flat with prior year.

				Strong results emerging from new initiatives and gaining momentum.
interest, tax, depreciation, amortisation, individually significant items and discontinued operations. The normalised profit and Group EBITDA are unaudited non-
*Normalised profit is profit for the year before interest, tax, individually significant items and discontinued operations. Group EBITDA is normalised earnings before
International Financial Reporting Standards ("IFRS") measures.
** Adjusted for the impact of the Queensgate insurance proceeds				3
E V E N T H O S P I T A L I T Y & E N T E R T A I N M E N T

ENTERTAINMENT
AUSTRALIA
			Y E A R E N D E D	2 0 1 8	2 0 1 9	VA R I A N C E	A D J U S T E D
	S C R E E N S
C I N E M A S		3 0 J U N E	( A A S B 1 5 )
75 2	701 2
Revenue ($000)	453,787	451,186	(0.6)%	(0.3)%
			EBITDA ($000)	95,830	89,463	(6.6)%	(5.5)%
			Normalised PBIT ($000)	68,600	60,198	(12.2)%	(10.7)%

Revenue relatively flat despite a less desirable genre mix of films for our audiences.

Market share relatively stable with growth in share of blockbuster and family films.

AAP growth due to success of variable pricing and growth in percentage of customers choosing a premium experience.

Record merchandising spend per head in the second half - new initiatives gaining momentum with 5 record months of spend.

Cinebuzz growth with almost 2.2m active members representing more than 67% of visits.

Earnings impacts: $1.7m decline in screen advertising, $5.6m increase in rent and depreciation related to a few of the new cinema openings in last 5 years taking longer to mature, and $1.1m impact of AASB15.

4 cinemas closed and 2 cinemas opened; Coomera, positioned in a growth corridor and Kawana delivered a positive result in the first month of trading including new concepts.

EVENT HOSPITALITY & ENTERTAINMENT

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ENTERTAINMENT NEW ZEALAND

C I N E M A S	S C R E E N S
20	1	135	6

Y E A R E N D E D	2 0 1 8	2 0 1 9	VA R I A N C E	A D J U S T E D *
3 0 J U N E
Revenue ($000)	85,268	89,822	5.3%	5.3%
EBITDA ($000)	17,018	15,575	(8.5)%	3.8%
Normalised PBIT ($000)	11,150	10,015	(10.2)%	9.6%

* Adjusted for the impact of the Queensgate insurance proceeds

Outperformed the market with market share growth due to new initiatives and new cinema (opened in April). Average admission price growth +4.8% driven by variable pricing strategy.

Record merchandising spend per head; focus on core product range, introduction of owned brand Parlour Lane, new family value deals and sales programs.

Strong growth in active memberships (+47%) and members now close to 50% of all transactions.

Normalised PBIT up 9.6% adjusted for the impact of $2.0m loss of profits booked prior year for the closure of Queensgate cinema (earthquake related, due to reopen in 2021).

New Tauranga cinema a success with new concepts generating positive earnings from first month.

E V E N T H O S P I T A L I T Y & E N T E R T A I N M E N T

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