EXPERIENCE CO LIMITED — AGM Information 2019

Nov 19, 2019

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Experience Co Limited (ASX Code: EXP)

2019 Annual General Meeting

20 November 2019

Chairman’s Address

Bob East

Good morning, I am Bob East, Chair of the Board and welcome to Experience Co’s 5[th] Annual General Meeting - my first as Chair of EXP.

A challenging year for the Group with results falling short of expectations. 2019 saw necessary changes to senior executives and management culminating in a strategic review of the overall business.

Following a period of acquisitive growth in FY17 and FY18, financial performance was adversely impacted by the tourism trading conditions in Far North Queensland.

In amongst challenging trading conditions, following my appointment as Chair of the Board in October 2018, it became evident that a thorough review of management and the business was required. Changes to the Senior Executive were made with the most recent, appointment of CEO, John O’Sullivan. In line with previous announcements, a thorough review of the business has been performed with an increased focus on simplifying and rationalising the business to position the business for improved financial performance heading into FY21.

Today, John will outline the outcomes of the review and provide the way forward for the business, and how we plan to execute organic and acquisitive growth opportunities.

Remaining core to our business and exceptional skill base, the skydiving business continues to perform well albeit recent weather conditions, particularly in our New Zealand operations, have impacted H1 2020 earnings.

With a focus on driving improved performance and accountability, further changes to key management roles have been made, particularly in the Adventure Experience and Skydive Australia businesses.

Financial systems, processes and resources have been bolstered to achieve improved financial reporting and this focus will continue into the remainder of FY20.

While safety of our customers and staff members has always been a priority, a number of safety and risk governance programs have been implemented to ensure this remains an ongoing priority.

With a focus on culture, a number of initiatives have and will be rolled out throughout the business to ensure the culture of the Senior Management team resonates throughout the business.

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www.experienceco.com info@experienceco.com T: 1300 601 899

Experience Co Limited ABN 56 167 320 470 ASX:EXP PO Box 5361 Wollongong NSW 2500

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I am delighted to have announced the appointment of 2 new Independent NonExecutive Directors recently – Neil Cathie who joined the Board on 16 October 2019 and Michelle Cox who joins in January 2020. Each of these Directors bring key skills in finance and governance and marketing and distribution, respectively, to the Board and the appointment of Michelle recognises the benefit that gender diversity brings to the Board and the organisation. I look forward to working with both Neil and Michelle and to the contribution they will both undoubtedly make to the Board.

Colin Hughes will be standing down as Non-Executive Director from the close of this AGM. In addition, John Diddams has advised the Board that he will be resigning as a Director effective 31 December 2019 to pursue other opportunities. On behalf of the Board, I take this opportunity to thank Colin and John for their contribution to the Company and the Board over the years.

The business has recently celebrated two significant milestones:

This year marked the 21[st] birthday of the Skydive Australia business. With NonExecutive Director, Anthony Boucaut’s passion for skydiving and a commitment to sharing extreme adventure experiences, the skydiving business grew from a single drop zone in Wollongong in July 1998 to become Australia’s leading skydiving business. The business today boasts 20 drop zones in Australia and New Zealand, employs approximately 800 team members and conducts approximately 190,000 tandem skydives each year. It is an international success story in the Adventure Tourism industry and the skydiving business will remain core to our business in a globally growing tourism market.

In November, we also celebrated Dreamtime Dive and snorkel’s first birthday. Dreamtime is the Great Barrier Reef’s only experience in which indigenous rangers conduct diving and snorkelling cultural experiences while exploring one of the seven wonders of the world. This is not only an achievement and an important milestone for the business in that it provides a unique indigenous experience for visitors to Australia but creates ongoing employment opportunities and development of industry skills to our indigenous community. Since launch, this experience has grown to 12,000 customers and is showing strong demand.

Not to be left out, our NZOne business (which turns 30 in 2020) was voted by Virtuoso Travel as the No.1 experience in the world for 2019. A great tribute to our team in NZ.

Outlook – FY20 and beyond

FY20 will see the business consolidate, rationalise and reset for improved performance into FY21 and beyond and will focus on:

• Organic growth in our core activities;

• Growth of international source customers from key Asian countries, America and Europe.

• Acquisition opportunities in assets and businesses aligned to our core operations and skills and delivery on return on invested capital

• A culture of management performance aimed at improved efficiencies, operational performance and quality of earnings;

• Cost management and alignment to business performance;

• Systems and processes that support the core activities and improve operational efficiencies.

www.experienceco.com info@experienceco.com T: 1300 601 899

Experience Co Limited ABN 56 167 320 470 ASX:EXP PO Box 5361 Wollongong NSW 2500

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In closing, I extend the Board’s appreciation to our customers, investors and all stakeholders for their support of the EXP Group during the year.

Thanks to CEO, John O’Sullivan, Senior Management and all employees for their ongoing contribution and commitment throughout the year.

And finally, I thank my fellow Board members for their ongoing support during the year.

I look forward to the remainder of the year ahead, the improved performance and growth of the Group into FY21 and beyond.

Investors:

John O’Sullivan, Chief Executive Officer Owen Kemp, Chief Financial Officer Tel: 1300 663 634

About Experience Co Limited (ASX:EXP)

Experience Co Limited (EXP) is an adventure tourism and leisure company (previously known as Skydive the Beach Group Limited, ASX:SKB). From its origins in Wollongong NSW in 1999, it now provides tandem skydiving experiences in 15 locations in Australia and 3 locations in New Zealand. EXP also provides activities of marine based experiences on Australia’s Great Barrier Reef, white water rafting, hot air ballooning, canyoning and helicopter tours.

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www.experienceco.com info@experienceco.com T: 1300 601 899

Experience Co Limited ABN 56 167 320 470 ASX:EXP PO Box 5361 Wollongong NSW 2500