EXPERIENCE CO LIMITED — Interim / Quarterly Report 2016

Feb 28, 2016

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29 FEBRUARY 2016

SKYDIVE THE BEACH GROUP LIMITED (ACN 167 320 470)

(ASX: SKB)

ASX ANNOUNCEMENT

SKYDIVE ANNOUNCES HY16 RESULTS

AND REAFFIRMS FY16 GUIDANCE

Skydive the Beach Group Limited (‘ SKB ’, ‘the Company’ , ‘ Skydive’ ), Australia and New Zealand’s leading skydiving adventure tourism company, is pleased to report the Company’s half-year results for the period ended 31 December 2015.

FINANCIAL AND OPERATIONAL RESULTS

Summary of Profit and Loss for half-year ending 31 December 2015

A$000’s	1H16*	1H15	%Change
Tandems	58,386	25,502	129%
Total Revenue	24,575	10,021	145%
EBITDA**	4,486	2,180	106%
Basic Earnings Per Share (cents)	1.65	18.27
Diluted Earnings Per Share (cents)	1.60	18.27

• Results include 2 months of contribution from Nzone Skydive

** EBITDA is a financial measure, which is not prescribed by Australian Accounting Standards (“AAS”) and represents the profit under AAS adjusted for specific non-cash and significant items. The directors consider EBITDA to reflect the core earnings of the consolidated entity.

Following the acquisition of Australia Skydive Pty Ltd on 30 March 2015, Skydive operated 16 skydiving drop zones across New South Wales, Queensland, Victoria and Western Australia.

Since then, Skydive successfully completed an Accelerated Non-Renounceable Entitlement Offer (ANREO), as announced on 14 October 2015, which raised a total of $19.6 million. These funds were primarily used to finance the acquisition of NZone Skydive, New Zealand's premier skydiving business in Queenstown, with two skydiving drop zones.

Presented below is a summary of historical and current operating statistics and financial performance information, including a comparison of actual results for the year ended 31 December 2015 against the same period last year and compared to the Group's forecast guidance issued on 12 October 2015. The results for the six months to 31 December 2015 include two months contribution from NZone Skydive.

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A$000’s	1H16*	1H15	%Change	FY16Forecast
Tandems	58,386	25,502	129%	130,381
Total Revenue ($‘000)	24,575	10,021	145%	54,900
EBITDA ($’000)	4,486	2,180	106%	13,500
EBITDA (%)	18.25%	21.75%		24.6%

These results are partly due to the acquisition of Australia Skydive Pty Ltd on 31 March 2015, two months of trading following the acquisition of NZone Skydive on 30 October 2015, and continued growth of the original Group drop zones.

Outlook and Guidance

	FY16	FY15 Actual	%
	Forecast		Variance
Tandems	130,381	61,069	113.5%
Turnover ($’000)	54,900	26,320	108.6%
EBITDA ($’000)	13,500	6,025	124.1%
EBITDA (%)	24.6%	22.9%	7.4%

The Directors consider that tandem jump numbers, revenue and EBITDA expectations for the financial year ending 30 June 2016 are realistic and attainable if weather patterns are normal and estimated jumps are made. Key financial and operational performance information will be reviewed regularly and strategies developed to attempt to achieve targets.

Skydive’s Chairman, Mr Bill Beerworth, commented:

“Skydive has continued its strong momentum across the entire business and we expect this strong performance to continue in FY16. We are delighted with Skydive’s expansion into the New Zealand market through the acquisition of NZone Skydive.

“We continue to leverage our position as a high quality and trusted Australian and New Zealand skydiving adventure provider. The market leading brand and reputation of NZone Skydive was further validated in 1H16 with Forbes voting Queenstown as one of the top 11 sites in the world to skydive.”

Skydive’s CEO, Mr Anthony Boucaut, commented:

“Once again, this result reflects our strong underlying business and our successful execution of our corporate growth strategy. NZone Skydive is another exciting addition to our footprint and we expect the full benefit from this acquisition to be fully evident in 2HFY16. We will continue to pursue further organic and acquisition opportunities in our pursuit to become the global leading adventure tourism company.”

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CONFERENCE CALL

Investors and analysts are invited to participate in a conference call at 12.00noon AEDT on Monday 29 February 2016 to be hosted by SKB’s CEO, Anthony Boucaut, and CFO Anthony Ritter.

The dial-in details are as follows:

The dial-in details are as follows:
Location	Local Number
Australia	+61 2 8038 5221
Australia (toll free)	1800 123 296
New Zealand	0800 452 782

Please quote the conference ID: 6131 1294

To ask a question, participants will need to dial “*1” (star, 1) on their telephone keypad

- ENDS -

CONTACT

ANTHONY RITTER

COMPANY SECRETARY

T 1300 663 634

E COMPANYSECRETARY@SKYDIVE.COM.AU

ABOUT SKYDIVE THE BEACH GROUP LIMITED

Skydive the Beach Group Limited (ASX:SKB) is a skydiving adventure company. It provides tandem skydiving experiences in scenic locations in four Australian States and in New Zealand. From its foundation in 1999, it has been a profitable business with a track record of earnings growth. In March 2015, SKB completed an oversubscribed initial public offer (IPO) by raising $25million and listing on the Australian Securities Exchange. SKB obtained an additional 5-drop zones when it acquired Australia Skydive Pty Ltd in Australia, and 2 more drop-zones when it acquired NZone Skydive inQueenstown in October 2016 as SKB’s first international expansion.

For further information www.skydive.com.au

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