EXPERIENCE CO LIMITED — AGM Information 2015

Nov 26, 2015

Annual General Meeting 27 November 2015

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PRESENTER

William (Bill) Beerworth NON-EXECUTIVE CHAIRMAN

Anthony Boucaut EXECUTIVE DIRECTOR CHIEF EXECUTIVE OFFICER Contact Number: 0415 787 223 Email: bowie@skydive.com.au

Anthony Ritter EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER Contact Number: 0466 592 014 Email: a.ritter@skydive.com.au

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AGENDA

• Chairman’s Address

• ① ② FY15 Review ③ Strategy

• ④ Acquisition of Skydive Queenstown Limited (“NZone Skydive”)

• ⑤ Outlook and Summary

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1. Chairman’s Address

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2. FY15 Review

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OPERATIONAL HIGHLIGHTS – FY15

• ¤ Successful listing on ASX on 27 March 2015 becoming the first publically listed adventure tourism company in Australia

• ¤ Raised $25m, significantly oversubscribed with strong investor base including prominent Australian investment funds

• ¤ Deployment of capital achieved in FY15 through acquisition of Australia Skydive Pty Ltd (ASG), repayment of debt and working capital investment

• ¤ Growth delivered organically and through acquisition : tandem jumps up more than 48% (YoY) FY15 vs FY14 Final

• ¤ dividend of 1cps, 100% franked, in line with prospectus guidance

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FINANCIAL HIGHLIGHTS − STRONG GROWTH IN FY15 ACHIEVED

¤ Bookings up 53% to 74,900 Tandems ¤ up 48% to 61,069 Revenues ¤ up 46% to $26.3m EBITDA ¤ up 35% to $6.0m

Note: FY15 includes 3 of ASG acquisition

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Bookings
80,000
60,000
40,000
20,000
0
2011 2012 2013 2014 2015
Revenue ($)
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2011
2012
2013
2014
2015
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Tandems
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2011
2012
2013
2014
2015
EBITDA ($)
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
2011
2012
2013
2014
2015
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3. Strategy

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FOUR KEY STRATEGIC PRIORITIES DRIVING FUTURE GROWTH

✔ Acquisitions Efficiencies Diversification ✔ ✔

Further Start ups ✔

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STRATEGIC ACTIVITIES IN FY15

• ¤ ASG acquisition completed 31 March 2015

• Purchase price A$11.7m (4.3x EBITDA 2014)

• • 5 drop zones on Australia’s east coast complementary to SKB locations

• • Significant operational efficiencies delivered; driving upgrade to FY16 EBITDA forecasts

• ¤ Upgrade to aircraft fleet: Exercised option on VH-UMV at A$850,000 ¤ Upgrade to aircraft engines commenced for US$630,000

• •

• Fuel savings, flight time savings, reduced maintenance costs 17 - 33% increase in workload (estimated) for equivalent cost

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STRATEGIC ACTIVITIES: EARLY FY16

• ¤ Raised $19.6m, strongly supported by leading Australian substantial investors to acquire:

• Nzone Skydive for A$15.5m

• Two additional aircraft for approximately A$4m

• ¤ First overseas acquisition, acquiring NZone Skydive, New Zealand’s leading tandem skydiving company . Completed 30 October 2015

• ¤ Achieved requirements and documentation to start airfreight business • Complements existing business, increased efficiencies in aircraft fleet

• • Expected launch 2H FY16

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4. Acquisition of NZone Skydive 12

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ACQUISITION AND OVERVIEW OF NZONE SKYDIVE

• ¤ NZone Skydive is New Zealand’s (NZ) leading tandem skydiving company, with approximately 33% market share

• ¤ 2 drop zones

• ¤ High barriers to entry: the only skydive operator in one of the world’s largest adventure tourist destinations (Queenstown)

• ¤ Founded in 1990 and headquartered in Queenstown ¤ 70 employees across 2 drop zones and head office ¤ 3 premium aircraft

• ¤ No company debt

• ¤ Market leading position, reputation and brand (previous winner of NZ Supreme Tourism Award)

• ¤ Operates in growing industry; 29% growth in international visitors in FY15

Internationally recognised brand, ideal dropzone location, quality aircraft fleet

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Operates under two brands: NZone Skydive (88% of jumps), Skydive Paradise (12% of jumps)

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STRONG STRATEGIC FIT WITH SKB

• ¤ Executes on SKB’s growth strategy

• Adds established growth business to SKB’s market leading position

• Creates an international operational footprint across the business as

• ¤ Increases expertise and skills well as asset optimisation

• ¤ Synergies – economies of scale with expected cost savings EBITDA accretive for SKB

• ¤ in first year in

• ¤ Key NZone Skydive sites are growing strongly , adding excess of 23,000 tandem skydives to SKB per annum

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5. Outlook and Summary

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EXPECTED FINANCIAL IMPACT AND FY16 GUIDANCE

• ¤ FY16 guidance was upgraded in October to:

• 130,381 tandem jumps

• $54.9m revenue

• • $13.5m EBITDA

• ¤ ¤ Strong business momentum expected to continue in FY16

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Tandems (#)
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2011
2012
2013
2014
2015
2016
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Revenue ($)
EBITDA ($)
60,000,000
15,000,000
50,000,000
12,000,000
40,000,000
9,000,000
30,000,000
6,000,000
20,000,000
10,000,000
3,000,000
0
0
2011
2012
2013
2014
2015
2016
2011
2012
2013
2014
2015
2016
16
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18 DROP ZONES:

DIVERSIFIED PORTFOLIO, GEOGRAPHICALLY SPREAD AIRLIE BEACH MISSION BEACH ¤ ¤ BYRON BAY NEWCASTLE ¤ ¤ BRISBANE PERTH CITY ¤ ¤ ¤ CAIRNS ¤ QUEENSTOWN (NZ) CENTRAL COAST ROCKINGHAM ¤ ¤ SINGLETON SYDNEY – ¤ ¤ WOLLONGONG ¤ GLENORCHY (NZ) YARRA VALLEY ¤ GREAT OCEAN ROAD ¤ YORK ¤ HUNTER VALLEY ¤ MELBOURNE ¤ – ST KILDA

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SUMMARY

• ¤ Leading Australian adventure tourism company Premium air craft fleet

• ¤ ¤ International network with premium locations ¤ Attractive industry with long-term growth ¤ Strong leadership team Thank you to all staff, clients, investors and stakeholders for your continued support

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DISCLAIMER

Important Notice and Disclaimer: This presentation has been prepared by Skydive the Beach Group Limited ACN 167 320 470 ("SKB”)

Summary information

This presentation contains summary information about SKB and its related bodies corporate and their activities, current as at 27 November 2015. The information in this presentation is a general background and does not purport to be complete or comprise all the information that an investor should consider when making an investment decision. SKB, its Directors, Officers, Employees and advisers have used reasonable endeavours to ensure that the information contained in this presentation is not misleading but they make no representation or warranty in this regard and, to the extent permitted by law, disclaim all liability arising from any direct, special, indirect or consequential losses of any kind arising from any cause (including without limitation negligence) which any person may sustain as a result of reliance on this presentation. The information contained in this presentation has not been independently verified.

Not financial product or investment advice

This presentation is for information purposes only and is not a prospectus, product disclosure statement or other offer document under Australian law or the law of any other jurisdiction. This presentation is not financial product or investment advice, a recommendation to acquire SKB securities, or accounting, legal or tax advice. It has been prepared without taking into account the objectives, financial or tax situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs, and seek appropriate professional advice. SKB is not licensed to provide financial product advice in respect of SKB securities. Cooling off rights do not apply to the acquisition of SKB securities.

Financial data

Investors should be aware that certain data included in this presentation may not have a standardised meaning prescribed by Australian Accounting Standards, and therefore may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with Australian Accounting Standards.

Future performance

This presentation may contain certain forward-looking statements. Forwardlooking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements, including projections, indications or guidance on future earnings and financial positions, or expected synergies arising from the acquisition the subject of this presentation, including cost synergies and estimates should not be relied upon as an indication, representation or guarantee of future performance. No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statements by any person including SKB. Actual results, performance or achievements may vary materially from any projection and forward-looking statements and the assumptions on which those statements are based. SKB disclaims any obligation or undertaking to provide any updates or revision to any forward-looking statements in this presentation.

Investment risk

SKB does not represent or warrant any particular rate of return or performance of SKB, nor does it represent or guarantee the repayment of capital from SKB or any particular tax treatment. This presentation is not and should not be considered an offer to sell, or an invitation or solicitation to buy, SKB securities and does not and will not form any part of any contract for the acquisition of SKB securities. Any investor in SKB will need to be a person in respect of whom disclosure is not required under Part 6D.2 of the Corporations Act 2001.

Not an offer in the United States

This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The distribution of this presentation in other jurisdictions outside Australia may also be restricted by law. Any failure to comply with such restrictions may constitute a violation of applicable securities law. By accepting or accessing this presentation you represent and warrant that you are entitled to receive such presentation in accordance with the above restrictions and agree to be bound by the representations, terms, limitations, indemnities and disclaimers contained herein.

© 2015 Skydive the Beach Group Limited ACN 167 320 470

Past performance

Past performance information given in this presentation is for illustrative purposes only and should not be relied upon as (and is not) an indication of SKB's views on its future financial performance or condition. Investors should note that past performance of SKB or any of its related bodies corporate or proposed acquisition targets cannot be relied upon as an indicator of future SKB performance including future share price performance.

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• Further information www.skydive.com.au

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