EVT LIMITED — Earnings Release 2018

Aug 22, 2018

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RESULTS PRESENTATION

2 4 A U G U S T 2 0 1 8

Y E A R E N D E D 3 0 J U N E 2 0 1 8

EVENT YEAR END RESULTS WEBCAST AND DIAL IN DETAILS

F R I D A Y 2 4 A U G U S T 2 0 1 8 9 : 0 0 A M ( A E D T )

Access a webcast of the briefing at https://webcast.openbriefing.com/4563/

Alternatively you may dial in to the briefing using the following details and the Conference ID: 6768976

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Australia: +61 2 8038 5221 New Zealand: 0800 452 782 Canada: 1855 5616 766 China: 4001 203 085 Hong Kong: 800 908 865 India: 1800 3010 6141 Japan: 0120 994 669 Singapore: 800 616 2288 United Kingdom: 0808 234 0757 United States: 1855 293 1544

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EVENT Hospitality & Entertainment Limited 51 000 005 103

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RESULTS OVERVIEW

F U L LY F R A N K E D F I N A L D I V I D E N D 3 1 C E N T S P E R S H A R E P A Y M E N T O N 2 0 S E P T E M B E R 2 0 1 8

GROUP GROUP NORMALISED REVENUE[$1,290m -1% ] EBITDA[$268m +10% ] NPAT[$124m +9% ]

Y E A R E N D E D 3 0 J U N E	2 0 1 7 $ ’ 0 0 0	2 0 1 8 $ ’ 0 0 0	V A R I A N C E %
ENTERTAINMENT
Australia	78,957	68,600	(13.1)%
Germany	22,246	19,918	(10.5)%
New Zealand	10,045	11,150	11.0%
Fiji	742	-	-%
HOSPITALITY
Hotels and Resorts	52,734	69,270	31.4%
LEISURE
Thredbo Alpine Resort	18,187	21,838	20.1%
PROPERTY
Propertyand Other Investments	9,343	16,528	76.9%
Unallocated expenses	(22,322)	(17,034)	(23.7)%
NORMALISED PROFIT RESULT (BEFORE INTEREST AND TAX)	169,932	190,270	12.0%
Net interest costs	(8,995)	(7,056)
Income tax expense	(47,253)	(58,933)
Individuallysignificant items – net of tax	(2,865)	(12,371)
TOTAL REPORTED PROFIT	110,819	111,910	1.0%

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Strong diverse portfolio delivers profit growth +12%.

Entertainment NZ performs well, PBIT+11%. Entertainment AUS and Entertainment GER impacted by weaker film line up.

Solid Hotels and Resorts profit growth +31%, driven by new hotels (56%) and growth from existing hotels (44%).

Record Thredbo PBIT result, +20%.

Strong Property portfolio now valued at $2.0bn, versus $1.2bn book value.

New operating structure delivering benefits.

Strong pipeline of growth opportunities in the medium to long term.

*Normalised result is profit for the year before individually significant items. Group EBITDA is normalised earnings before interest, tax, depreciation and amortisation. The normalised result and Group EBITDA are unaudited non-International Financial Reporting Standards (“IFRS”) measures.

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ENTERTAINMENT AUSTRALIA

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Australian market box office down 5% overall.

Strong growth in Food and Beverage spend per head +4.3% and improved margins, COGS -3.4%.

Premium and value strategies beginning to deliver good results. Growth in the percentage of customers choosing premium cinema experiences, +7.9%.

Growth in other revenue streams including sponsorship and advertising, +7%.

Strong increase in active Cinebuzz members +33% and record growth in digital revenues +22%, via new strategies.

Y E A R E N D E D 3 0 J U N E	2 0 1 7	2 0 1 8	V A R I A N C E
Admissions (000)	33,476	31,653	(5.4)%
Revenue ($000)	471,188	455,121	(3.4)%
EBITDA ($000)	107,662	95,830	(11.0)%
Normalised PBIT ($000)	78,957	68,600	(13.1)%

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2015 2016 2017 2018
Normalised PBIT (excluding VPFs) Virtual Print Fees (VPFs)
Normalised PBIT ($m)
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ENTERTAINMENT GERMANY

German market box office was down 9% impacted by the cyclical impact of FIFA World Cup and record warm weather.

German content contributed 21% of total market box office up from 14% in the prior year.

Y E A R E N D E D 3 0 J U N E	2 0 1 7	2 0 1 8	V A R I A N C E
Admissions (000)	14,775	13,199	(10.7)%
Revenue ($000)	307,107	307,383	0.1%
EBITDA ($000)	32,562	30,906	(5.1)%
Normalised PBIT ($000)	22,246	19,918	(10.5)%

Strong growth from Food and Beverage spend per admission +7%.

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Strong 3D appeal relative to Australia and New Zealand markets.

Good growth in loyalty membership +27.8%, with launch of new CRM platform.

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2015 2016 2017 2018
Normalised PBIT (excluding VPFs) VPFs
Normalised PBIT ($m)
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ENTERTAINMENT NEW ZEALAND

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NZ market marginally down 1.5% on prior year.

Strong profit growth +11%, driven by good cost control on relatively flat admissions.

Games revenue up 12.5% with new redemption prize hubs. Opportunity to expand.

Good growth in Food and Beverage spend per head +3.5%.

Good growth in loyalty membership +17% since 30 June.

Y E A R E N D E D 3 0 J U N E	2 0 1 7	2 0 1 8	V A R I A N C E
Admissions (000)	5,491	5,503	0.2%
Revenue ($000)	88,549	87,308	(1.4)%
EBITDA ($000)	16,259	17,018	4.7%
Normalised PBIT ($000)	10,045	11,150	11.0%

Excluding the contribution from the Fiji Cinema Joint Venture

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2015 2016 2017 2018
Normalised PBIT (excluding Fiji and VPFs) VPFs
Normalised PBIT $m
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H O T E L S A N D R E S O RT S

HOTELS & RESORTS ALL BRANDS DELIVER GROWTH

Strong performance across all brands resulting in PBIT +31.4% and REVPAR +7.5%.

Strong Food and Beverage revenue growth +11% assisted by new hotels.

New operating structure performing well, improved digital capability and automation.

Growth in occupancy, average room rate and REVPAR across the Group. 5 new Hotel Management Agreements secured and a key management contract renewed.

QT Perth opened in August and Atura Adelaide Airport will open in September.

ROWTH
Y E A R E N D E D 3 0 J U N E	2 0 1 7	2 0 1 8	V A R I A N C E
Revenue ($000)	306,403	337,093	10.0%
EBITDA ($000)	74,167	96,185	29.7%
Normalised PBIT ($000)	52,734	69,270	31.4%

O W N E D H O T E L S	2 0 1 7	2 0 1 8	V A R I A N C E
Occupancy	76.5%	79.5%	3.0%
Average room rate	$179	$185	3.4%
Revpar	$137	$147	7.5%

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REVPAR BY BRAND

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|O W N E D H O T E L S|2 0 1 7|2 0 1 8|V A R I A N C E|2 0 1 7|2 0 1 8|
|Occupancy|78.0%|80.3%|2.3%|
|Hotels|47|43|
|Average room rate|$159|$160|0.6%|
|Rooms|7,412|7,189|
|Revpar|$124|$128|3.6%|
|*Includes owned and managed properties|
|2 0 1 7|2 0 1 8|V A R I A N C E|2 0 1 7|2 0 1 8|
|Occupancy|76.3%|80.7%|4.4%|
|Hotels|8|9|
|Average room rate|$222|$235|5.7%|
|Rooms|1,330|1,396|
|Revpar|$170|$190|11.8%|
|2 0 1 7|2 0 1 8|V A R I A N C E|2 0 1 7|2 0 1 8|
|Occupancy|70.1%|72.3%|2.2%|Hotels|3|3|
|Average room rate|$139|$141|1.2%|
|Rooms|390|390|
|Revpar|$98|$102|4.3%|

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T H R E D B O

THREDBO RECORD RESULT

Y E A R E N D E D 3 0 J U N E	2 0 1 7	2 0 1 8	V A R I A N C E
Revenue ($000)	66,609	72,971	9.6%
EBITDA ($000)	22,007	25,705	16.8%
Normalised PBIT ($000)	18,187	21,838	20.1%

Natural snowfall contributed to an extended season with visitation in September 2017 up 40% on September 2016.

Thredbo delivered growth revenue, EBITDA and a record PBIT result, +20.1%.

Good performance across Summer revenues continue all areas including: to grow +19%. Mountain ⁄ 10% increase in lifts revenue. Biking contribution exceeds ⁄ 15% increase in food and $1m for the first time. beverage revenue.

Development plan underway to unlock value from Thredbo over next 2-3 years.

SEASON PERFORMANCE

	SEASON PERFORMANCE	SEASON PERFORMANCE	SEASON PERFORMANCE	SEASON PERFORMANCE
	W I N T E R M O N T H S	2 0 1 7	2 0 1 8	V A R I A N C E
	Revenue ($000)	52,960	56,732	7.1%
	EBITDA ($000)	25,004	27,965	11.8%
	Normalised PBIT ($000)	21,396	24,421	14.1%
	S U M M E R M O N T H S	2 0 1 7	2 0 1 8	V A R I A N C E
	Revenue ($000)	13,649	16,239	19.0%
	EBITDA ($000)	(2,997)	(2,260)	(24.6)%
	Normalised PBIT ($000)	(3,209)	(2,583)	(19.5)%

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P R O P E RT Y

STRONG PROPERTY PORTFOLIO VALUE INCREASES TO $2.0BN +29%

Y E A R E N D E D 3 0 J U N E	2 0 1 7	2 0 1 8	V A R I A N C E	Increase in rental income of 16% was achieved. $5.75m was booked to reflect the fair value adjustments on investment properties.
Revenue ($000)	15,512	18,026	16.2%
Fair value adjustments ($000)	(250)	5,750	−
EBITDA ($000)	11,996	19,522	62.7%
Normalised PBIT ($000)	9,343	16,528	76.9%

$ M I L L I O N S F A I R V A L U E B O O K V A L U E Operating assets 1,963 1,118 Investment properties 74 74 Total 2,037 1,192 458-472 George Street – commercial component to be developed in a joint venture arrangement.	$ M I L L I O N S F A I R V A L U E B O O K V A L U E Operating assets 1,963 1,118 Investment properties 74 74 Total 2,037 1,192 458-472 George Street – commercial component to be developed in a joint venture arrangement.	$ M I L L I O N S F A I R V A L U E B O O K V A L U E Operating assets 1,963 1,118 Investment properties 74 74 Total 2,037 1,192 458-472 George Street – commercial component to be developed in a joint venture arrangement.
Operating assets	1,963	1,118
Investment properties	74	74
Total	2,037	1,192

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K E Y D E V E L O P M E N T O P P O RT U N I T I E S

CINEMA DEVELOPMENTS

K A W A N A

• ⁄ 9 screens

• ⁄ 3 Gold Class

• ⁄ 2 Vmax

• ⁄ New Concept

• ⁄ December 2018 | 100%

Existing cinemas

Future cinema developments

• New Concept Trials/Upgrades plans underway

C O O M E R A

• ⁄ 8 screens

• ⁄ 2 Gold Class

• ⁄ 2 Vmax

• ⁄ New Concept

• ⁄ October 2018 | 100%

C A S T L E H I L L

I N N A L O O

⁄ 14 screens

• ⁄ New Concept ⁄ Q4 2020| 50%

C L A Y T O N ( V R L O P E R A T E D )

• ⁄ 5 screens

• ⁄ Q2 2020 | 50%

• ⁄ 15 screens N E W M A R K E T

• ⁄ New Concept

• ⁄ 7 screens

• ⁄ Q3 2022 | 50%

  • ⁄ New Concept

  • ⁄ Q3 2019 | 100%

• G R E E N S Q U A R E ⁄ 5 screens T A U R A N G A

• ⁄ New Concept C R O S S I N G ⁄ Q3 2022 | 50% ⁄ 6 screens

• ⁄ 6 screens

• E D M O N D S O N S Q U A R E ⁄ New Concept ⁄ 6 screens ⁄ Q2 2019 | 100%

• ⁄ New Concept ⁄ Q2 2020| 50%

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HOTEL DEVELOPMENT POTENTIAL FOR GROWTH

Existing hotels

• E X T E N S I O N A N D U P G R A D E O F R Y D G E S M E L B O U R N E ( E S T F Y 2 1 ) ⁄ As part of existing Rydges hotel footprint. ⁄ Potential new guest rooms and conference extension.

Q T C A N B E R R A ( E S T F Y 2 1 ) ⁄ Additional guest rooms and conference centre upgrade

Properties with potential for further development Priority Upgrade properties

• R Y D G E S N O R T H S Y D N E Y ( E S T F Y 2 0 ) Priority Upgrade ⁄ Complete refurbishment / properties redevelopment

• 5 2 5 G E O R G E S T R E E T ⁄ Potential integrated cinema, hotel, residential development

• E X T E N S I O N Q T M U S E U M

• O F Q T S Y D N E Y W E L L I N G T O N

• ⁄ As part of 458-472 George ⁄ 18 New guest rooms

• Street development – retail, November 2018.

• hotel and commercial. 1 0 0 C A B L E S T ,

• R Y D G E S Q U E E N S T O W N W E L L I N G T O N

• ( E S T F Y 2 0 ) ⁄ Potential QT Museum

• ⁄ Conference centre and guest extension, residential, cinema

• room refurbishment. and retail development

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FOCUS AREAS GOING FORWARD

G R O W E X I S T I N G B U S I N E S S R E V E N U E

• ⁄ Smarter pricing

• ⁄ Better sales practices

• ⁄ Focus on high margin products

M A X I M I S E A S S E T P E R F O R M A N C E

• ⁄ Innovate and upgrade priority assets

• ⁄ Divest underperforming

• ⁄ Invest in priority developments

• ⁄ Acquire

B U S I N E S S T R A N S F O R M A T I O N

• ⁄ Reduce duplication

• ⁄ Increase automation

• ⁄ Increase digital capability and performance

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NON – IFRS FINANCIAL INFORMATION

The EVENT Group results are prepared under Australian Accounting Standards, and also comply with International Financial Reporting Standards (“IFRS”). This presentation includes certain non-IFRS measures, including the normalised profit concept. These measures are used internally by management to assess the performance of the business, make decisions on the allocation of resources and assess operational performance. Non-IFRS measures have not been subject to audit or review, however all items used to calculate these non-IFRS measures have been derived from information used in the preparation of the reviewed financial statements. Included in the Appendix 4E for the year ended 30 June 2018 is a reconciliation of the Normalised Result to the Statutory Result.

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