EXPERIENCE CO LIMITED — Capital/Financing Update 2015

Oct 11, 2015

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12 OCTOBER 2015

SKYDIVE THE BEACH GROUP LIMITED (ACN 167 320 470)

ASX ANNOUNCEMENT

ACQUISITION OF NEW ZEALAND’S LEADING TANDEM SKYDIVING GROUP

ANNOUNCES A$19.6M EQUITY RAISING

Summary

• Skydive the Beach Group (ASX: SKB) has executed an agreement to purchase the Skydive Queenstown Limited Group ( SQ )

• SQ is New Zealand’s ( NZ ) leading tandem skydiving company, with an approximately 33% market share. It is the dominant player in Queenstown, the biggest adventure tourism destination in the Southern Hemisphere

• The SQ transaction is expected to be materially earnings accretive from completion

• Under the agreement, SKB will acquire 100% of the shares in SQ Group entities for a consideration of NZ$17m (A$15.5m[1] ) representing a multiple of 5.0x EV to SQ’s FY15 underlying EBITDA

• The acquisition enhances SKB’s market leading position with a major established NZ growth business

• It will lead to a 20% increase in SKB’s tandems on an annualised basis, improving SKB’s guidance for FY16 to 130,381 tandems, A$54.9m revenue and A$13.5m EBITDA

• The acquisition will be funded by a fully underwritten A$19.6m equity raising via a 2 for 9 prorated accelerated non-renounceable entitlement offer launched today

• The transaction is expected to complete by 30 October 2015

Details

Skydive the Beach Group Limited (‘the Company’ or ‘ Skydive’ or ‘SKB’ ) is pleased to announce it has entered into an agreement with the privately owned Skydive Queenstown Limited Group ( SQ ), trading as Nzone; New Zealand’s leading tandem skydiving company.

SKB will acquire 100% of the SQ entities for a consideration of NZ$17m (A$15.5m) representing a multiple of 5.0x EV to SQ’s FY15 underlying EBITDA[2] . Financial close is expected on 30 October 2015.

To fund the acquisition, SKB has launched a fully underwritten A$19.6m equity raising via an accelerated non-renounceable entitlement offer ( ANREO ) today. Please see SKB’s separate ASX Announcement.

About SQ

SQ is New Zealand’s leading tandem skydiving company, representing an approximately 33% market share. The business is the only skydive operator in Queenstown, the largest adventure tourism

1 Exchange rate of AUDNZD 1.10 used throughout the release

2 Underlying EBITDA of $3.4m is unaudited EBITDA for FY15 (year-end 31 March 2015)

www.skydive.com.au info@skydive.com.au

Skydive the Beach Group Limited ABN 56 167 320 470 PO Box 5361 Wollongong NSW 2500

T: 1300 663 634 F: 1300 338 803

L E A V E Y O U R W O R L D B E H I N D

destination in the southern Hemisphere. A reported 1.4 million overseas travellers visited New Zealand in FY15, representing a growth of 12% year on year[3] .

SQ was founded in 1990, and has remained privately owned by its two founders. The business employs over 70 staff and has conducted over 250,000 tandem jumps during its 25 years of operation.

SQ operates two internationally recognised brands, Nzone Skydive (88% of jumps) and Skydive Paradise (12% of jumps) and is renowned for its superior product and adventure experience.

SQ operates an excellent aircraft fleet, including 2 Cessna Grand Caravans; the same aircraft as SKB key sites across Australia.

During FY15, SQ conducted 23,055 tandems (+9% on FY14), generated revenues of $10.4m (+16% FY14) and reported an underlying EBITDA $3.4m (+48% FY14). EBITDA margins were significantly increased from 25.5% in FY14 to 32.3% in FY15.

Strategic rationale

SQ is a strong strategic fit for SKB, and the acquisition delivers on three of SKB’s four strategic priorities: acquisitions, diversification and efficiencies.

Outlook

SKB recently upgraded FY16 EBITDA guidance from $10.9m to $11.5m driven by savings and synergies from the integration of ASG, which was completed at the end of March 2015. At this time, the Company reaffirmed tandems of 112,827 and Revenue of $47.5m.

Incorporating an 8-month impact of the SQ acquisition in FY16, FY16 guidance is upgraded to:

• 130,381 tandem skydives

• $54.9m Revenues

• $13.5m EBITDA

Investor Presentation

For further information on the SQ acquisition, please see the SKB’s Investor Presentation in a separate ASX Announcement made today.

CONTACT

ANTHONY RITTER

COMPANY SECRETARY

T 1300 663 634

E COMPANYSECRETARY@SKYDIVE.COM.AU

3 Source: ZQN news: update from Queenstown Airport Corporation. Issue 24, September 2015. Available at available at www.queenstownairport.co.nz

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ABOUT SKYDIVE THE BEACH GROUP (ASX:SKB)

Skydive the Beach is an Australian based company operating skydiving experiences to the public since its establishment in 1999 by founder and CEO Anthony Boucaut. The company operates 16 drop zones across 4 states and has grown to become the largest tandem skydive operation the Southern Hemisphere, forecasting over 112,000 skydives in FY2016. The company offers a complete range of skydiving services to the public, agents and media including tandem skydiving, night skydiving, and helicopter jumps as well as courses and skills development courses. The company utilise more than 300 staff and contractors and owns a fleet of 21 aircraft throughout Australia. Since inception, the company has experienced considerable growth with an average CAGR of tandems of 35% and delivering $26.3m revenues and $6.0m EBITDA in FY2015.

For further information www.skydive.com.au

www.skydive.com.au info@skydive.com.au T: 1300 663 634 F: 1300 338 803

Skydive the Beach Group Limited ABN 56 167 320 470 PO Box 5361 Wollongong NSW 2500

L E A V E Y O U R W O R L D B E H I N D