EVT LIMITED — Interim / Quarterly Report 2016

Feb 17, 2016

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Event Hospitality & Entertainment Limited

Financial Results For the half year ended 31 December 2015

This half year report is presented under listing rule 4.2A and should be read in conjunction with the Amalgamated Holdings Limited 2015 Annual Report. The company changed its name from Amalgamated Holdings Limited to Event Hospitality & Entertainment Limited on 17 December 2015.

ASX code: EVT (previously AHD) Released: 18 February 2016 Telephone: +61 2 9373 6600 Contact: David Seargeant (Managing Director) David Stone (Company Secretary)

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EVENT HOSPITALITY & ENTERTAINMENT LIMITED | ACN 000 005 103 478 GEORGE STREET SYDNEY NSW 2000 | GPO BOX 1609 SYDNEY NSW 2001 | +61 2 9373 6600 CINEMAS | EVENT | BCC | GU FILM HOUSE | CINESTAR | MOONLIGHT HOTELS & RESORTS | RYDGES | QT | ATURA | ART SERIES | THREDBO

APPENDIX 4D HALF YEARLY REPORT

RESULTS FOR ANNOUNCEMENT TO THE MARKET

for the half year ended 31 December 2015

(previous corresponding period: half year ended 31 December 2014)

Key Information

Revenue and other income Total revenues and other income Profit before net finance costs and income tax expense Net finance costs Profit before income tax expense Income tax expense Profit for the period attributable to members of the parent entity	Up 15.9% to Up 15.9% to Up 44.2% to Up 46.6% to Up 49.9% to	2015 A$’000 2014 A$’000	2015 A$’000 2014 A$’000
		661,064 570,534
		661,064 570,534
		109,729 76,096 (3,640) (3,716)
		106,089 72,380 (29,337) (21,190)
		76,752 51,190
Dividends (distributions)	Amount per security		Franked amount per security
Final dividend - 2015 (paid 17 September 2015) Special dividend - 2015 (paid 17 September 2015)	29 ¢ 8 ¢		29 ¢ 8 ¢
Interim dividend - Current year - Previous corresponding period	20 ¢ 16 ¢		20 ¢ 16 ¢
Record date for determining entitlements to the dividend Date of interim dividend payment	3rdMarch 2016 17thMarch 2016

1 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

Explanation of Revenue

See attached annexure and the Directors’ Report.

Explanation of Profit from Ordinary Activities after Tax

See attached annexure and the Directors’ Report.

Explanation of Net Profit

See attached interim consolidated financial report.

Explanation of Dividends

See attached interim consolidated financial report.

Net Tangible Asset Backing

Net Tangible Asset Backing
	December 2015	December 2014
Net tangible asset backing per share	$5.51	$5.23

Controlled Entities Acquired or Disposed of

See attached interim consolidated financial report.

Additional Dividend Information

See attached interim consolidated financial report.

Dividend Re-Investment Plans

The Dividend Re-Investment Plan (“DRP”) was suspended in August 2010 and will not operate for the 2016 interim dividend.

Associates and Joint Venture Entities

See attached interim consolidated financial report.

Compliance Statement

The information provided in this report has been prepared in accordance with Australian Accounting Standards, the Corporations Act 2001 and other standards acceptable to the ASX.

The attached interim consolidated financial report for Event Hospitality & Entertainment Limited has been subject to review by its auditors, KPMG. A copy of the independent auditor’s review report to the members of Event Hospitality & Entertainment Limited is attached.

2 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

ANNEXURE TO THE APPENDIX 4D

REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2015

CONSOLIDATED GROUP RESULT	31 December 2015 31 December 2014	31 December 2015 31 December 2014	31 December 2015 31 December 2014
Entertainment Australia New Zealand Germany Hospitality and Leisure Hotels and Resorts Thredbo Alpine Resort Property and Other Investments Unallocated revenues and expenses Finance revenue Finance costs Income tax expense Individually significant items – net of tax Reported net profit	Normalised result*	Reconciliation to reported net profit Normalised result $’000 $’000* 38,701 26,128 4,300 3,030 26,443 10,574 29,044 23,214 18,439 16,917 3,008 3,878 (10,206) (7,645)	Reconciliation to reported net profit $’000 26,128 3,030 10,574 23,214 16,917 3,878 (7,645)
	$’000
	38,701
	4,300
	26,443
	29,044
	18,439
	3,008
	(10,206)
	109,729	109,729 76,096 515 642 (4,155) (4,358)	76,096 642 (4,358)
	515
	(4,155)
	106,089	106,089 72,380 (29,337) (21,190)	72,380 (21,190)
	(29,337)
	76,752	76,752 51,190	51,190 –
		– 76,752
			51,190

• Normalised result is profit for the period before individually significant items (as outlined in Note 4 to the interim consolidated financial report). As outlined in Note 2 to the interim consolidated financial report, this measure is used by the Group’s Managing Director to allocate resources and in assessing the relative performance of the Group’s operations. The normalised result is an unaudited non-IFRS measure.

OVERVIEW

Reported net profit was $76,752,000, an increase of $25,562,000 or 49.9% above the prior comparable half year.

There were no individually significant items during the half year or during the prior comparable half year.

3 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

REVIEW OF OPERATIONS

Entertainment

Entertainment Australia

The normalised profit before interest and income tax expense was $38,701,000, an increase of $12,573,000 or 48.1% above the prior comparable half year. The result was predominately driven by a 15.6% increase in Box Office and assisted by improved merchandising and screen advertising revenues.

A strong film line up during the half year concluded with a record Box Office result for the December 2015 month. The standout release was Star Wars: The Force Awakens which grossed over $62.7 million during the half year. Star Wars: The Force Awakens has subsequently gone on to gross over $90 million, second only to the very successful Avatar , which was released in 2009 and grossed in-excess of $115 million at the Australian Box Office.

A further three titles grossed in-excess of $20 million at the Australian Box Office during the half year. These titles included: Spectre ($34.4 million) from the successful Bond franchise; The Hunger Games: Mockingjay Part 2 ($29.0 million); and The Martian ($27.4 million). A total of 19 films grossed more than $10 million at the Australian Box Office, compared to 13 films in the prior comparable half year.

The uplift in premium admissions (both Vmax and Gold Class) and increased ratio of 3D content favourably impacted the average ticket price. Merchandising revenue spend per admission experienced positive growth across both Gold Class and Scoop Alley Candy Bars and the contribution from merchandising strengthened considerably in the November and December months through improvements in traditional candy bar combo offerings and Gold Class packages.

The Group continues to pursue increased market share and visitation loyalty through the Cinebuzz loyalty program and the number of active Cinebuzz members at 31 December 2015 totalled 1,029,000.

During the half year, the Group launched four new cinema complexes. These complexes include a total of 34 screens, including eleven premium screens (Gold Class and Vmax) that feature the latest Dolby Atmos immersive audio. The cinemas include:

• Event Springfield opened in October 2015 (four traditional, two Gold Class and two Vmax screens);

• Event Pacific Fair re-opened in November 2015 (seven traditional, one Vmax and three Gold Class screens);

• Event Hurstville relaunched in November 2015 (one Vmax and six traditional screens); and

• Event Kotara opened in December 2015 (five traditional, one Vmax and two Gold Class screens).

4 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

Entertainment New Zealand

The normalised profit before interest and income tax expense was $4,300,000, an increase of $1,270,000 or 41.9% above the prior comparable half year. The result was achieved through improved Box Office and merchandising revenue and benefited from the acquisition, completed in December 2014, of two cinema complexes located in the Bay of Plenty region.

Box Office increased by 4.7% compared to the prior comparable half year with the main titles consisting of: Star Wars: The Force Awakens (NZ$9.4 million); Spectre (NZ$5.7 million); The Hunger Games: Mockingjay Part 2 (NZ$4.9 million); and Minions (NZ$4.7 million). These four titles achieved a combined total of NZ$24.7 million compared to the top four titles in the prior comparable half year which collectively grossed NZ$20.3 million.

Merchandising revenue spend per admission continued to grow, driven by an ongoing focussed sales approach along with a number of successful Candy Bar Combo promotions. Similar to the Australian circuit, the New Zealand circuit continues to pursue market share, particularly through the Cinebuzz loyalty program. The number of active members as at 31 December 2015 totalled 153,000.

The Entertainment New Zealand result is inclusive of the Group’s Fiji Cinema Joint Venture, which includes a 66.7% share in three cinemas located in Fiji. The cinemas in Fiji contributed $611,000 to the total result.

Entertainment Germany

The normalised profit before interest and income tax expense was $26,443,000, an increase of $15,869,000 or 150.1% above the prior comparable half year. The main contributors to the result included a 7.8% rise in admissions, increased average admission price and improved merchandising revenues and margins.

There were seven titles which achieved in excess of two million admissions at the German Box Office during the half year. The international titles included the record breaking opening of Star Wars: The Force Awakens (5.8 million admissions in 15 days), Minions (6.8 million admissions); Spectre (6.5 million admissions); The Hunger Games: Mockingjay Part 2 (3.7 million admissions); and Inside Out (3.4 million admissions). German-produced titles performed well with two hits: Fack ju Göhte 2 (7.6 million admissions); and Er Ist Wieder Da (2.4 million admissions). These seven films achieved a combined total of 36.2 million admissions compared to the top seven films during the prior comparable half year which collectively achieved 20.2 million admissions.

The continued promotion and uptake of the loyalty program, CineStarCARD, has resulted in the membership base increasing to over 550,000 members.

5 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

The Group acquired two freehold properties, located at Stade and Düsseldorf, during the half year. The combined acquisition price totalled €11.2 million (A$16.7 million) and the sites include cinemas already operated by the Group. The freehold property at Stade also includes a 65 room hotel (leased to an unrelated hotel group) and a number of retail outlets.

Hospitality and Leisure

Hotels and Resorts

The normalised profit before interest and income tax expense was $29,044,000, an increase of $5,830,000 or 25.1% above the prior comparable half year. Occupancy in the Group’s owned hotels increased by 2.9 percentage points to 78.9% and average room rate increased 4.1% to $167, resulting in an uplift in revenue per room (revpar) of 8.1% over the prior comparable half year. Good domestic demand combined with a resurgence within the inbound market resulted in pleasing profit growth in the Group’s key hotel properties, including those in Sydney, Melbourne, Rotorua and Queenstown.

Profit from the Group’s QT Hotels and Resorts was strong with improved performances from each QT property delivering a combined occupancy increase of 6.7 points to 79.3%. QT Sydney continued its recent profit growth as the hotel and brand continues to mature and gain market traction and share and build customer loyalty. The Group’s other QT properties each delivered revenue and profit growth largely driven by improved accommodation revenues. The Museum Art Hotel in Wellington (to be rebranded QT Wellington) was acquired in August 2015 and has contributed $1,256,000 to the Group’s profit increase.

The good result from Rydges Hotels was marginally impacted by the short-term disruption caused by the refurbishment of Rydges Parramatta, which commenced in October 2015. The owned Rydges Hotels delivered a combined occupancy increase of 1.3 points to 81.0%. Whilst most locations performed well, there continues to be a difficult trading environment for Rydges Gladstone and Rydges Townsville, both located in central Queensland, where business has been subdued by the downturn in the resource and mining sectors, and this impact has been compounded by the increased room supply within those locations. Costs were generally well controlled and margins remain at acceptable levels.

The Atura Hotel brand also delivered a strong result with a combined occupancy increase of 4.7 points to 68.2%. Atura Blacktown continued to consolidate its market share within its Western Sydney catchment area with an increase in profit of $468,000 over the prior comparable half year. Atura Dandenong and Atura Albury both contributed to the profit uplift and continue to improve business levels from the corporate and leisure markets.

In relation to managed hotels, performance was largely positive with the exception of the Darwin properties which were impacted by the significant slowdown in the resource and mining sectors.

6 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

The new 69 room QT Bondi opened on 21 December 2015. Rydges Palmerston Darwin opened in September 2015 and Rydges Fortitude Valley recently opened in February 2016. The management agreement for Rydges Darwin Airport Hotel and Rydges Darwin Airport Resort have been terminated and these properties will leave the Group’s managed portfolio at the end of February 2016.

Thredbo Alpine Resort

The normalised profit before interest and income tax expense was $18,439,000, an increase of $1,522,000 or 9.0% above the comparable prior half year.

The result from the 2015 snow season, despite lower than average snowfall, was one of the most successful on record. Snow depth peaked at 148.8cm in September 2015 compared with 168.5cm on 24 July 2014 in the prior season, however some excellent snow making conditions prevailed and consistent cold night time temperatures assisted with cost efficient snow production. Skiers were able to enjoy top-to-bottom skiing from the opening weekend in June until the close of the season in October.

Material growth in season pass sales boosted skier day growth of 7.3% to 436,000 skier days and the recent acquisition of the on-mountain food outlet, Merritts Mountain House, contributed to a 24% growth in food and beverage revenue.

The All Mountain Descent mountain bike trail opened in November 2015 and has already contributed to a 42% growth in mountain biking revenue.

Property and Other Investments

The normalised profit before interest and income tax expense was $3,008,000, a decrease of $870,000 or 22.4% below the prior comparable half year. The result was impacted by additional pre-opening and depreciation costs on two property developments recently completed by the Group. The result benefited from a fair value increment relating to the investment properties of $1,080,000, compared to an increment of $578,000 in the prior comparable half year.

The two recently completed property developments include:

• the redevelopment of the Group’s former cinema site at Double Bay which was completed in August 2015 and incorporates ground floor retail and four levels of serviced office facilities; and

• the 16 level redevelopment at 478 George Street in Sydney was completed in October 2015 and accommodates the Group’s corporate office. The development also incorporates four levels of serviced office facilities and three levels of retail to be occupied by Flight Centre.

The serviced offices at both locations are operated by the Group under the Edge Serviced Offices brand.

7 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED

INTERIM CONSOLIDATED FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2015

Contents	Page
Directors’ Report	9
Lead Auditor’s Independence Declaration	10
Statement of Financial Position	11
Income Statement	12
Statement of Comprehensive Income	13
Statement of Changes in Equity	14
Statement of Cash Flows	15
Condensed notes to the interim consolidated financial report
1. Significant accounting policies and compliance	16
2. Segment reporting	17
3. Revenue and other income	20
4. Profit before income tax	20
5. Dividends	20
6. Taxation	21
7. Investments accounted for using the equity method	22
8. Property, plant and equipment	22
9. Goodwill and other intangible assets	22
10. Loans and borrowings	23
11. Share capital	24
12. Reserves	24
13. Interests in other entities	25
14. Acquisition of additional interests in joint operations	27
15. Business combinations	28
16. Commitments and leases	30
17. Contingent liabilities and contingent assets	30
18. Events subsequent to reporting date	30
Directors’ Declaration	31
Independent Auditor’s Review Report	32

8 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

The directors present their report together with the interim consolidated financial report for the half year ended 31 December 2015 and the independent auditors’ review report thereon.

Directors

The directors of the Company at any time during or since the end of the half year period are:

Name Period of directorship Mr AG Rydge (Chairman) Director since 1978 Mr DC Seargeant (Managing Director) Director since 2001 Mr RG Newton Director since 2008 Mr PR Coates AO Director since 2009 Mr KG Chapman Director since 2010 Ms VA Davies Director since 2011 Mr DC Grant Director since 2013 Mrs PM Mann Director since 2013

Review of operations

The review and results of operations are set out in the Annexure to the Appendix 4D.

Dividend

On 18 February 2016 the directors declared an interim dividend of $32,111,985 (20 cents per share).

Lead auditor’s independence declaration under section 307C of the Corporations Act 2001

The lead auditor’s independence declaration is set out on page 10 and forms part of the directors’ report for the half year ended 31 December 2015.

Rounding off

The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with the class order, amounts in the financial report and directors’ report have been rounded off to the nearest thousand dollars, unless otherwise stated.

Signed in accordance with a resolution of the directors:

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AG Rydge Director

DC Seargeant Director

Dated at Sydney this 18[th] day of February 2016.

9 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

ABCD

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To: the directors of Event Hospitality and Entertainment Limited

I declare that, to the best of my knowledge and belief, in relation to the review for the half-year ended 31 December 2015 there have been:

• (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• (ii) no contraventions of any applicable code of professional conduct in relation to the review.

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KPMG

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Kenneth Reid Partner

Sydney

18 February 2016

10

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative.

Liability limited by a scheme approved under Professional Standards Legislation.

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015

Note	31 Dec 2015 30 June 2015
	$’000 $’000
ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Prepayments and other current assets Total current assets Non-current assets Trade and other receivables Other financial assets Available-for-sale financial assets Investments accounted for using the equity method 7 Property, plant and equipment 8 Investment properties Goodwill and other intangible assets 9 Deferred tax assets Other non-current assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Loans and borrowings 10 Current tax liabilities Provisions Deferred revenue Other current liabilities Total current liabilities Non-current liabilities Loans and borrowings 10 Deferred tax liabilities Provisions Deferred revenue Other non-current liabilities Total non-current liabilities Total liabilities Net assets EQUITY Share capital 11 Reserves 12 Retained earnings Total equity
	174,046 133,680
	54,819 47,192
	27,246 19,909
	9,881 17,535
	265,992 218,316
	1,053 1,098
	1,396 1,398
	21,447 19,972
	12,138 11,054
	999,293 911,942
	69,000 71,050
	105,218 89,555
	8,192 7,869
	7,034 4,848
	1,224,771 1,118,786
	1,490,763 1,337,102
	106,339 97,332
	1,190 990
	12,092 16,009
	19,008 18,841
	105,150 82,874
	3,996 4,264
	247,775 220,310
	211,192 118,085
	20,076 11,952
	10,807 10,531
	7,493 9,413
	3,916 3,907
	253,484 153,888
	501,259 374,198
	989,504 962,904
	219,126 219,126
	44,465 35,210
	725,913 708,568
	989,504 962,904

The Statement of Financial Position is to be read in conjunction with the condensed notes to the interim consolidated financial report on pages 16 to 30.

11 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES INCOME STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2015

Note	31 Dec 2015 31 Dec 2014 $’000 $’000
Revenue and other income Revenue from sale of goods and rendering of services 3 Other revenue and income 3 Expenses Employee expenses Occupancy expenses Film hire and other film expenses Purchases and other direct expenses Amortisation and depreciation Other operating expenses Advertising, commissions and marketing expenses Finance costs Equity profit Share of net (loss)/profit of equity accounted investees: Associates 13 Joint ventures 13 Profit before income tax expense 4 Income tax expense 6 Profit for the period Earnings per share: Basic earnings per share Diluted earnings per share	635,705 546,010 25,359 24,524
	661,064 570,534
	(150,070) (132,757) (126,259) (119,575) (132,206) (109,044) (55,965) (50,060) (35,418) (33,422) (34,230) (32,687) (18,315) (17,861) (4,155) (4,358)
	(556,618) (499,764)
	(3) 3 1,646 1,607
	1,643 1,610
	106,089 72,380 (29,337) (21,190)
	76,752 51,190
	31 Dec 2015 31 Dec 2014 Cents Cents
	48.5 32.4
	47.9 32.0

The Income Statement is to be read in conjunction with the condensed notes to the interim consolidated financial report on pages 16 to 30.

12 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2015

	31 Dec 2015 31 Dec 2014 $’000 $’000
Profit for the period Other comprehensive income Items that may be reclassified to profit or loss Foreign currency translation differences for foreign operations – net of tax Net change in fair value of available-for-sale financial assets – net of tax Net change in fair value of cash flow hedges – net of tax Other comprehensive income for the period–net of tax Total comprehensive income for the period
	76,752 51,190
	5,982 4,030
	1,032 419
	(16) 39
	6,998 4,488
	83,750 55,678

The Statement of Comprehensive Income is to be read in conjunction with the condensed notes to the interim consolidated financial report on pages 16 to 30.

13 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2015

	Share capital $’000 Reserves $’000 Retained earnings $’000 Total equity $’000
Balance at 1 July 2015 Profit for the period Other comprehensive income Foreign currency translation differences for foreign operations – net of tax Net change in fair value of available-for-sale financial assets – net of tax Net change in fair value of cash flow hedges – net of tax Total other comprehensive income recognised directly in equity Total comprehensive income for the period Employee share-based payments expense – net of tax Dividends paid Balance at 31 December 2015 Balance at 1 July 2014 Profit for the period Other comprehensive income Foreign currency translation differences for foreign operations – net of tax Net change in fair value of available-for-sale financial assets – net of tax Net change in fair value of cash flow hedges – net of tax Total other comprehensive income recognised directly in equity Total comprehensive income for the period Employee share-based payments expense – net of tax Dividends paid Balance at 31 December 2014	219,126 35,210 708,568 962,904
	– – 76,752 76,752
	– 5,982 – 5,982
	– 1,032 – 1,032
	– (16) – (16)
	– 6,998 – 6,998
	– 6,998 76,752 83,750
	– 2,257 – 2,257
	– – (59,407) (59,407)
	219,126 44,465 725,913 989,504
	219,126 32,510 668,719 920,355
	– – 51,190 51,190
	– 4,030 – 4,030
	– 419 – 419
	– 39 – 39
	– 4,488 – 4,488
	– 4,488 51,190 55,678
	– (224) – (224)
	– – (43,351) (43,351)
	219,126 36,774 676,558 932,458

The Statement of Changes in Equity is to be read in conjunction with the condensed notes to the interim consolidated financial report on pages 16 to 30.

14 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

	31 Dec 2015 31 Dec 2014 $’000 $’000
Cash flows from operating activities Cash receipts in the course of operations Cash payments in the course of operations Cash provided by operations Distributions from associates and joint ventures Other revenue Dividends received Interest received Finance costs paid Income tax refunds Income tax paid Net cash provided by operating activities Cash flows from investing activities Payments for property, plant and equipment and redevelopment of properties Payment for additional interests in joint operations, net of cash acquired Payment for business acquired, including intangible assets Payments for management rights, software and other intangible assets Decrease in loans from other entities Proceeds from disposal of property, plant and equipment Net cash used by investing activities Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Dividends paid Net cash provided/(used) by financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Effect of exchange rate fluctuations on cash held Cash and cash equivalents at the end of the period
	722,738 605,463
	(578,881) (495,567)
	143,857 109,896
	644 252
	23,346 22,889
	418 405
	522 642
	(4,042) (4,278)
	237 4,546
	(29,956) (16,489)
	135,026 117,863
	(88,348) (45,698)
	(6,751) –
	(26,549) (8,007)
	(4,890) (361)
	(578) (552)
	90 –
	(127,026) (54,618)
	136,324 56,000
	(46,077) (38,000)
	(59,407) (43,351)
	30,840 (25,351)
	38,840 37,894
	133,680 91,069
	1,526 2,074
	174,046 131,037

The Statement of Cash Flows is to be read in conjunction with the condensed notes to the interim consolidated financial report on pages 16 to 30.

15 | Event Hospitality & Entertainment Limited – Interim Consolidated Financial Report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES AND COMPLIANCE

Event Hospitality & Entertainment Limited (“Company”) (formerly Amalgamated Holdings Limited) is a company domiciled in Australia. The name of the Company was changed to Event Hospitality & Entertainment Limited on 17 December 2015. The condensed interim consolidated financial report of the Company as at and for the six months ended 31 December 2015 comprises the Company and its subsidiaries (collectively referred to as “Group” or “Consolidated Entity”) and the Group’s interest in associates and jointly controlled entities.

The interim consolidated financial report was authorised by the Board of the Company for issue on 18 February 2016.

(a) Statement of Compliance

The interim consolidated financial report is a general purpose financial report which has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reports and the Corporations Act 2001 .

The interim consolidated financial report does not include all of the information required for a full annual financial report.

It is recommended that this interim consolidated financial report be read in conjunction with the most recent annual financial report for the year ended 30 June 2015. This report should also be read in conjunction with any public announcements made by the Company during the half year in accordance with continuous disclosure obligations arising under the Corporations Act 2001 .

The Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with the Class Order, amounts in the financial report and directors’ report have been rounded off to the nearest thousand dollars, unless otherwise stated.

(b) Significant Accounting Policies

The accounting policies applied by the Group in this interim consolidated financial report are the same as those applied by the Group in its consolidated financial report as at and for the year ended 30 June 2015.

(c) Estimates

The preparation of the interim consolidated financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing the interim consolidated financial report, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report as at and for the year ended 30 June 2015.

(d) Financial Risk Management

The Group’s financial risk management systems are consistent with that disclosed in the consolidated financial report as at and for the year ended 30 June 2015.

16 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 2 – SEGMENT REPORTING

An operating segment is a component of the Group that engages in business activities from which it earns revenues and incurs expenses, including revenues and expenses from transactions with other Group segments. All segments’ operating results are regularly reviewed by the Group’s Managing Director to make decisions about resources to be allocated to a segment and to assess its performance, and for which discrete financial information is available.

Segment results that are reported to the Managing Director include items directly attributable to a segment, before individually significant items, as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate head office assets, head office expenses, and income tax assets and liabilities.

Additions to non-current segment assets are the total cost incurred during the period to acquire assets that include amounts expected to be recovered over more than 12 months after the year end date. Amounts include property, plant and equipment, but exclude financial instruments and deferred tax assets.

Segment information is presented in respect of the Group’s reporting segments. These are the Group’s main strategic business segments and have differing risks and rewards associated with the business due to their different product or service and geographic markets. For each of these operating segments, the Group’s Managing Director regularly reviews internal management reports.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before income tax as included in the internal management reports. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of segments relative to those of other businesses. Inter-segment pricing is determined on an arm’s length basis.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise interest bearing loans and borrowings and borrowing costs, interest income and corporate head office assets and expenses.

Operating segments

The Group comprises the following main operating segments:

• Entertainment Australia

Includes the cinema exhibition operations in Australia, technology equipment supply and servicing, and the State Theatre.

• Entertainment New Zealand

• Includes cinema exhibition operations in New Zealand and Fiji.

  • Hotels and Resorts

    • Includes the ownership, operation and management of hotels in Australia and overseas.

  • Thredbo Alpine Resort

    • Includes all the operations of the resort including property development activities.

• Entertainment Germany

• Includes the cinema exhibition operations in Germany.

• Property and Other Investments

Includes property rental, investment properties and available-for-sale financial assets.

17 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 2 – SEGMENT REPORTING(CONTINUED) Operating segments	Entertainment	Hotels and Resorts Thredbo Alpine Resort $’000 $’000
	Australia New Zealand Germany $’000 $’000 $’000		Property and Other Investments	Consolidated
			$’000	$’000
31 December 2015 Revenue and other income External segment revenue Other income – external Finance revenue Other unallocated revenue Revenue and other income Result Segment result Share of net profit of equity accounted investees Total segment result Unallocated revenue and expenses Net finance costs Profit before related income tax expense Income tax expense Profit after income tax expense Reportable segment assets Equity accounted investments Deferred tax assets Unallocated corporate assets Total assets	227,571 42,509 190,524 – – –	143,558 47,533 6 –
			7,336	659,031
			1,492	1,498
	38,603 4,300 24,898 98 – 1,545	29,044 18,439 – –		515
				20
				661,064
			3,008	118,292
			–	1,643
	38,701 4,300 26,443	29,044 18,439	3,008	119,935
	312,347 77,256 213,382 8,126 – 4,012	566,614 39,852 – –		(10,206)
				(3,640)
				106,089
				(29,337)
				76,752
			231,515	1,440,966
			–	12,138
				8,192
				29,467
				1,490,763

18 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 2 – SEGMENT REPORTING (CONTINUED) Operating segments	Entertainment	Hotels and Resorts Thredbo Alpine Resort $’000 $’000
	Australia New Zealand Germany $’000 $’000 $’000		Property and Other Investments	Consolidated
			$’000	$’000
31 December 2014 Revenue and other income External segment revenue Other income – external Finance revenue Other unallocated revenue Revenue and other income Result Segment result Share of net profit of equity accounted investees Total segment result Unallocated revenue and expenses Net finance costs Profit before related income tax expense Income tax expense Profit after income tax expense Reportable segment assets Equity accounted investments Deferred tax assets Unallocated corporate assets Total assets	192,238 39,301 153,538 – – –	130,028 45,906 134 –
			7,749	568,760
			978	1,112
	26,111 3,030 8,981 17 – 1,593	23,214 16,917 – –		642
				20
				570,534
			3,878	82,131
			–	1,610
	26,128 3,030 10,574	23,214 16,917	3,878	83,741
	269,014 78,674 175,874 10,098 – 2,122	513,983 38,785 – –		(7,645)
				(3,716)
				72,380
				(21,190)
				51,190
			191,802	1,268,132
			–	12,220
				8,293
				23,509
				1,312,154

19 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

FOR THE HALF YEAR ENDED 31 DECEMBER 2015
NOTE 3 – REVENUE AND OTHER INCOME	31 Dec 2015 31 Dec 2014 $’000 $’000
Revenue Rendering of services Sale of goods Other Revenue Rental revenue Management and consulting fees Finance revenue Dividends Sundry Other income Insurance proceeds Increase in fair value of investment property NOTE 4 – PROFIT BEFORE INCOME TAX
	445,098 376,200
	190,607 169,810
	635,705 546,010
	12,151 11,514
	10,875 10,785
	515 642
	418 405
	320 471
	24,279 23,817
	– 129
	1,080 578
	1,080 707
	661,064 570,534

Profit before income tax expense includes the following items where disclosure is relevant in explaining the financial performance of the Group:

(a) Individually significant items

There were no individually significant items during the half year to 31 December 2015 or during the prior comparable half year.

(b) Seasonality of operations

The consolidated result includes the operations of the Thredbo Alpine Resort. Due to the timing of the Australian ski season, profits from this business for the financial year to 30 June 2016 have largely been earned in the half year to 31 December 2015.

NOTE 5 – DIVIDENDS

NOTE 5 – DIVIDENDS
		Total			Tax rate for
	Per share	amount			franking	Percentage
	Cents	$’000		Date ofpayment	credit	franked
Dividends on ordinary shares paid in	the current and comparative periods are:
2015
Final 2015 dividend	29	46,562	17	September 2015	30%	100%
Special dividend	8	12,845	17	September 2015	30%	100%
2014
Final 2014 dividend	27	43,351	18	September 2014	30%	100%
Subsequent events
Since the end of the period, the directors declared the following dividend:
Interim 2016 dividend	20	32,112		17 March 2016	30%	100%

The financial effect of this interim dividend has not been brought to account in the interim consolidated financial report for the half year ended 31 December 2015 and will be recognised in subsequent consolidated financial reports.

20 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 6 – TAXATION	31 Dec 2015 31 Dec 2014 $’000 $’000
Income tax expense The major components of income tax expense are: Income tax recognised in profit or loss Current income tax Current income tax expense Adjustments in respect of current income tax of prior period Deferred income tax Relating to origination and reversal of temporary differences Income tax expense reported in the Income Statement Income tax charged/(credited) directly in equity Deferred income tax related to items charged/(credited) directly in equity Net (loss)/gain on revaluation of cash flow hedges Net loss on hedge of net investment in overseas subsidiary Unrealised gain on available-for-sale financial assets Adjustments to share-based payments reserve Currency translation movements of deferred tax balances of foreign operations Income tax expense reported in equity Reconciliation between tax expense and pre-tax net profit A reconciliation between tax expense and accounting profit before income tax multiplied by the Group’s applicable income tax rate is as follows: Accounting profit before income tax expense Prima facie income tax expense calculated at the Group’s statutory income tax rate of 30% (2014: 30%) on accounting profit Increase in income tax expense due to: Depreciation and amortisation of buildings Non-refundable franking credits grossed up Non-deductible items and losses in non-resident controlled entities Non-deductible acquisition and legal costs Amortisation of management rights and other intangible assets Share of associates’ net loss/(gain) Decrease in income tax expense due to: Tax losses from prior years now recognised or utilised Franking credits on dividends received Share of incorporated joint venture net profit Fair value adjustment on investment properties recognised Sundry items Income tax (over)/under provided in prior period	29,337 21,190
	26,445 19,351 (60) 204 2,952 1,635
	29,337 21,190
	(3) 2 (219) (165) 442 180 13 (16) (136) 58
	97 59
	106,089 72,380
	31,827 21,714
	231 201 53 51 1,421 429 195 39 464 486 3 (2)
	2,367 1,204
	3,849 1,067 177 171 496 551 – 15 275 128
	4,797 1,932
	(60) 204
	29,337 21,190

21 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 7 – INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD	31 Dec 2015 30 June 2015 $’000 $’000
Associates (refer to Note 13) Joint ventures (refer to Note 13)	146 149 11,992 10,905
	12,138 11,054

NOTE 8 – PROPERTY, PLANT AND EQUIPMENT

Acquisitions

During the six months ended 31 December 2015 the Group acquired property, plant and equipment with a cost value of $109,986,000 (2014: $50,970,000)

$109,986,000 (2014: $50,970,000)
NOTE 9 – GOODWILL AND OTHER INTANGIBLE ASSETS	31 Dec 2015 $’000
Goodwill and other intangible assets comprise of goodwill, construction rights, management and leasehold rights, liquor licences and software. Movements in goodwill and other intangible assets during the half year period were as follows: Balance at the beginning of the period – 1 July 2015 Additions Net foreign currency differences on translation of foreign operations Amortisation Balance at the end of the period – 31 December 2015	89,555 17,494 1,279 (3,110) 105,218

22 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

FOR THE HALF YEAR ENDED 31 DECEMBER	2015
NOTE 10 – LOANS AND BORROWINGS	31 Dec 2015 30 June 2015 $’000 $’000
Current Non-interest bearing loans Loans from other companies – unsecured Non-current Interest bearing liabilities and borrowings Bank loans – secured Deferred financing costs Non-interest bearing loans Loans from other companies – unsecured	1,190 990
	209,345 115,448 (757) (943)
	208,588 114,505 2,604 3,580
	211,192 118,085

Bank debt – secured

The Group’s secured bank debt facilities comprise the following:

• A$350,000,000 revolving multi-currency loan facility;

• A$30,000,000 credit support facility (for the issue of letters of credit and bank guarantees); and

• a A$50,000 overdraft limit to support its transactional banking facilities.

The above facilities were extended during the prior comparable half year period and mature on 12 September 2017 and are supported by interlocking guarantees from most Group entities and are secured by specific property mortgages. Debt drawn under these facilities bears interest at the relevant inter-bank benchmark reference rate plus a margin of between 1.1% and 2% per annum. At 31 December 2015, the Group had drawn $206,998,000 (30 June 2015: $113,126,000) under the debt facilities, of which $nil (30 June 2015: $nil) was subject to interest rate swaps used for hedging, and had drawn $4,089,000 under the credit support facility (30 June 2015: $7,305,000).

Other loans – secured

During the year ended 30 June 2014, certain wholly owned German subsidiaries arranged secured debt facilities comprising of the following:

• €5,000,000 (A$7,483,000) revolving three year loan facility; and

• €17,000,000 (A$25,441,000) five year guarantee facility (for the issue of letters of credit and bank guarantees).

These facilities are supported by interlocking guarantees from certain (non-Australian based) Group entities and are secured against a specific property in Germany. Debt drawn under these facilities bears interest at the relevant interbank benchmark rate plus a margin of between 0.75% and 2.75% per annum. At 31 December 2015, the Group had drawn €nil (A$nil) (30 June 2015: €nil (A$nil)) under the revolving three year loan facility and €12,596,000 (A$18,851,000) (30 June 2015: €12,684,000 (A$18,473,000)) under the five year guarantee facility.

In addition, a Group entity based in Fiji and its joint operation partner have secured debt bank facilities, including a FJ$6,000,000 (A$3,885,000) five year advance facility. At 31 December 2015, the Group’s share of debt drawn under this facility was FJ$3,627,000 (A$2,347,000) (30 June 2015: FJ$3,745,000 (A$2,322,000)). These facilities are secured against a specific property in Fiji.

23 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 11 – SHARE CAPITAL	31 Dec 2015 30 June 2015 31 Dec 2015 30 June 2015 Shares Shares $’000 $’000
Share capital Fully paid ordinary shares Share capital consists of: Ordinary shares Tax Exempt Share Plan Employee Share Plan Treasury shares Performance shares	158,545,436 158,106,883 219,126 219,126
	158,384,185 157,941,764 48,131 49,499 113,120 115,620 158,545,436 158,106,883 2,014,487 2,453,040 160,559,923 160,559,923

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding-up of the Company in proportion to the number of and amounts paid on the shares held. On a show of hands, every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

NOTE 12 – RESERVES	31 Dec 2015 30 June 2015 $’000 $’000
Available-for-sale financial assets revaluation Investment property revaluation Hedging Share-based payments Foreign currency translation	15,057 14,025 5,121 5,121 (6) 10 19,045 16,788 5,248 (734)
	44,465 35,210

24 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 13 – INTERESTS IN OTHER ENTITIES

Subsidiaries

A list of subsidiaries of the Group is set out in Note 5.2 of the 2015 Annual Report. Since 1 July 2015 there have been no significant changes to the Group’s subsidiaries.

Joint Ventures

Details of the Group’s investments in joint ventures, which are accounted for using the equity method, are as follows:

Name Principal activities	Ownership interest	Investment carrying amount	Contribution to operating profit/(loss)
	31 Dec 2015 30 Jun 2015 % %	31 Dec 2015 30 Jun 2015 $’000 $’000	31 Dec 2015 31 Dec 2014 30 Jun 2015 $’000 $’000 $’000
Filmpalast am ZKM Karlsruhe GmbH & Co. KG Operator of a multiscreen cinema complex Filmpalast Konstanz GmbH & Co. KG Operator of a multiscreen cinema complex Loganholme Cinemas Pty Limited Operator of a multiscreen cinema complex Red Carpet Cinema Communication GmbH & Co KG Event management	(a)50 (a)50 (a)50 (a)50 50 50	2,435 1,647 984 935 7,980 7,879	756 1,116 1,703 668 477 995 101 14 360 121 – (156)
	(a)50 (a)50	593 444
		11,992 10,905	1,646 1,607 2,902

Note:

(a) These companies are incorporated in Germany.

Associates

Details of the Group’s investments in associates, which are accounted for using the equity method, are as follows:

Name Principal Activities	Ownership interest	Investment carrying amount Contribution to operating profit/(loss)
	31 Dec 2015 % 30 Jun 2015 %	31 Dec 2015 $’000 30 Jun 2015 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 30 Jun 2015 $’000
Cinesound Movietone Productions Pty Limited Film owner and distributor Digital Cinema Integration Partners Pty Limited Administration Digital Cinema Integration Partners NZ Pty Limited Administration Movietimes Australia and New Zealand Pty Limited Operator of Movietimes website	50 50 48 48 (a)60 (a)60 (a)53 (a)53	146 149 (3) 3 10 – – – – – – – – – – – – – – –
		146 149 (3) 3 10

Note:

(a) Digital Cinema Integration Partners NZ Pty Limited and Movietimes Australia and New Zealand Pty Limited are not consolidated as the Group does not have control.

25 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 13 – INTERESTS IN OTHER ENTITIES (CONTINUED)

Joint operations

Details of the Group’s investments in joint operations, which are accounted for on a line-by-line basis, are as follows:

			Ownership interest	Ownership interest
			31 Dec 2015	30 Jun 2015
Name	Principal activities	Country of operation	%	%
Australian Theatres Joint Venture	Operator of multiscreen cinema complexes	Australia	50	50
Browns Plains Multiplex Joint Venture	Operator of a multiscreen cinema complex	Australia	(a)50	33
Castle Hill Multiplex Cinema Joint Venture	Operator of a multiscreen cinema complex	Australia	(a)50	33
Casuarina Cinema Centre Joint Venture	Operator of a multiscreen cinema complex	Australia	50	50
Fiji Cinema Joint Venture	Operator of multiscreen cinema complexes	Fiji	(b)66.7	(b)66.7
Garden City Cinema Joint Venture	Operator of a multiscreen cinema complex	Australia	33	33
Geelong Cinema Joint Venture	Operator of a multiscreen cinema complex	Australia	50	50
Jam Factory Cinema Operations Joint Venture	Operator of a multiscreen cinema complex	Australia	50	50
Rialto Joint Venture	Operator of multiscreen cinema complexes	New Zealand	50	50
Toowoomba Cinema Centre Joint Venture	Operator of a multiscreen cinema complex	Australia	50	50

Note:

(a) The Group acquired an additional 17% interest in the Browns Plains Multiplex Joint Venture and the Castle Hill Multiplex Cinema Joint Venture on 29 September 2015 (see note 14). (b) The Fiji Cinema Joint Venture is not consolidated as the Group does not have control.

Operating lease commitments of joint operations

The Group’s share of future minimum operating lease rentals in respect of the above joint operations are not provided for and payable:

Within one year Later than one year but not later than five years Later than five years	31 Dec 2015 30 June 2015 $’000 $’000
	30,421 29,837 97,208 99,169 85,121 90,082
	212,750 219,088

26 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 14 – ACQUISITION OF ADDITIONAL INTERESTS IN JOINT OPERATIONS

Castle Hill and Browns Plains cinema complexes

Effective 29 September 2015:

• The Greater Union Organisation Pty Limited, a wholly owned subsidiary, acquired an additional 17% interest in the Castle Hill Multiplex Cinema Joint Venture, taking the ownership interest in this leasehold site to 50%; and

• Birch, Carroll & Coyle Limited, a wholly owned subsidiary, acquired an additional 17% interest in the Browns Plains Multiplex Joint Venture, taking the Group’s ownership interest in this leasehold site to 50%.

The total consideration paid for the above acquisitions was $6,926,000.

The Group has provisionally recognised the fair value of the following identifiable assets and liabilities relating to these acquisitions as follows:

Plant and equipment Cash and cash equivalents Other assets Payables Employee entitlements Deferred revenue Sub-total Leasehold and management rights Total net value of identifiable assets	Fair value at acquisition date $’000
	883 175 256 (170) (19) (41)
	1,084 5,842
	6,926

Leasehold and Management Rights

Leasehold and management rights were recognised as a result of the acquisition as follows:

Total cash consideration paid Less: net value of other identifiable assets and liabilities Leasehold and management rights	$’000
	6,926 (1,084)
	5,842

Leasehold and management rights will be amortised over the remaining term of the respective leases for each site. Amortisation of leasehold and management rights is not expected to be deductible for income tax purposes.

The Group incurred direct costs relating to the acquisitions of $311,000 which have been expensed in the Group’s income statement for the period.

The income statement includes revenue and net profit for the half year ended 31 December 2015 of $1,263,000 and $343,000 respectively as a result of these acquisitions. Had the acquisitions occurred at the beginning of the reporting period, it is estimated that the income statement would have included additional revenue and net profit of approximately $610,000 and $91,000 respectively.

27 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 15 – BUSINESS COMBINATIONS

Business combinations in the half year ended 31 December 2015

The Group acquired the following business during the period:

Museum Art Hotel, Wellington, New Zealand

On 3 August 2015, the Group acquired the Museum Art Hotel, Wellington, New Zealand The total consideration paid for the acquisition was NZ$28,846,000 (A$26,549,000).

The Group has provisionally recognised the fair value of the following identifiable assets and liabilities relating to the acquisition as follows:

Property, plant and equipment Other assets and liabilities Deferred tax liabilities Total net value of identifiable assets	Fair value at acquisition date $’000
	20,755 318 (4,381)
	16,692

Goodwill

Goodwill was recognised as a result of the acquisition as follows:

Total cash consideration paid, net of cash acquired Less: net value of other identifiable assets and liabilities Goodwill	$’000
	26,549 (16,692)
	9,857

The goodwill is attributable mainly to the trading reputation and other intangible assets which are not separately identifiable. Goodwill recognised is not expected to be deductible for income tax purposes.

The Group incurred direct costs relating to this acquisition of $96,000 which have been expensed in the Group’s income statement for the period.

The income statement includes revenue and net profit for the half year ended 31 December 2015 of $6,195,000 and $1,256,000 respectively as a result of this acquisition. Had the acquisition occurred at the beginning of the reporting period, it is estimated that the income statement would have included additional revenue and net profit of approximately $1,363,000 and $276,000 respectively.

28 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 15 – BUSINESS COMBINATIONS (CONTINUED)

Business combinations in the half year ended 31 December 2014

The Group acquired the following business during the prior comparable half year period:

Bay City Cinemas

Effective 4 December 2014, Event Cinemas Limited a wholly owned subsidiary in New Zealand, acquired two cinemas in the Bay of Plenty region. The consideration paid was $8,007,000 (NZ$8,400,000).

The Group recognised the fair value of the following identifiable assets and liabilities relating to this acquisition as follows:

Plant and equipment Other assets Employee benefits Deferred revenue Sub-total Goodwill, leasehold and management rights Total net value of identifiable assets	Fair value at acquisition date $’000
	5,296 118 (29) (64)
	5,321 2,686
	8,007

Goodwill, leasehold and management rights

Goodwill, leasehold and management rights were recognised as a result of the acquisition as follows:

Total cash consideration paid Less: net value of other identifiable assets and liabilities Goodwill, leasehold and management rights	$’000
	8,007 (5,321)
	2,686

Leasehold and management rights will be amortised over the remaining term of the lease for the site. Amortisation of the leasehold and management rights is not expected to be deductible for tax purposes.

The Group incurred direct costs relating to this acquisition of $87,000 which were expensed in the Group’s Income Statement for the prior comparable half year period.

The Income Statement for the prior comparable half year period includes revenue and net profit for the half year ended 31 December 2014 of $418,000 and $104,000 respectively as a result of this acquisition. Had the acquisition occurred at the beginning of the prior comparable half year period, it is estimated that the Income Statement would have included additional revenue and net profit of approximately $1,813,000 and $325,000 respectively.

29 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2015

NOTE 16 – COMMITMENTS AND LEASES

Other than the following, there have been no material changes in commitments and leases since 30 June 2015.

Operating lease commitments – as lessee Future minimum operating lease rentals not provided for and payable: Within one year Later than one year but not later than five years Later than five years	31 Dec 2015 30 June 2015 $’000 $’000
	96,793 94,829 292,936 282,308 256,823 261,981
	646,552 639,118

Amounts disclosed in the table above exclude the Group’s share of operating lease rentals in respect of the joint operations disclosed in Note 13.

NOTE 17 – CONTINGENT LIABILITIES AND CONTINGENT ASSETS

There have been no material changes in contingent liabilities or contingent assets since 30 June 2015.

NOTE 18 – EVENTS SUBSEQUENT TO REPORTING DATE

Dividends

For details of the interim 2016 dividend declared after 31 December 2015 refer to Note 5.

30 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

EVENT HOSPITALITY & ENTERTAINMENT LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ DECLARATION

In the opinion of the directors of the Company:

1. The interim consolidated financial statements and notes set out on pages 11 to 30 are in accordance with the Corporations Act 2001 , including:

2. (a) giving a true and fair view of the Group’s financial position as at 31 December 2015 and of its performance for the half year ended on that date; and

3. (b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 ; and

4. There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors:

==> picture [57 x 42] intentionally omitted <==

==> picture [44 x 33] intentionally omitted <==

AG Rydge DC Seargeant Director Director

Dated at Sydney this 18[th] day of February 2016

31 | Event Hospitality & Entertainment Limited – Interim consolidated financial report for the half year ended 31 December 2015

ABCD

Independent auditor’s review report to the members of Event Hospitality and Entertainment Limited

We have reviewed the accompanying half-year financial report of Event Hospitality and Entertainment Limited, which comprises the condensed consolidated statement of financial position as at 31 December 2015, consolidated income statement and consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes 1 to 18 comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the Group comprising the company and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s financial position as at 31 December 2015 and its performance for the half-year ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As auditor of Event Hospitality and Entertainment Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

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KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative.

Liability limited by a scheme approved under Professional Standards Legislation.

ABCD

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Event Hospitality and Entertainment Limited is not in accordance with the Corporations Act 2001 , including:

(a) giving a true and fair view of the Group’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and

(b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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KPMG

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Kenneth Reid Partner

Sydney

18 February 2016

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