EXPERIENCE CO LIMITED — Investor Presentation 2016

Aug 29, 2016

FY16 Results Presentation Au ust 2016 g

==> picture [520 x 795] intentionally omitted <==

1

==> picture [46 x 1080] intentionally omitted <==

LEAVE YOUR WORLD BEHIND

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 29 August 2016. The information in this presentation is a general background and does not purport to be complete or to comprise all the information that an investor should consider when making an investment decision. SKB, its Directors, Officers, Employees and advisers (“Associates”) have used reasonable endeavours to ensure that the information contained in this presentation is not misleading but they give no representation or warranty (express or implied) in this regard and, to the extent permitted by law, disclaim all liability arising from any direct, special, indirect or consequential loss of any kind arising for any reason (including, without limitation, negligence) that 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 any investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs, and obtain appropriate independent professional advice. SKB is not licensed to provide financial product or other 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. Forward-looking 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 acquisitions mentioned in this presentation, including cost savings, synergies and estimates should not be relied upon as an indication, representation or assurance 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 and its Associates. Actual results, performance or achievements may vary materially from any projection and forwardlooking 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 must 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 breach 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. © 2016 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 it 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.

==> picture [117 x 52] intentionally omitted <==

2

LEAVE YOUR WORLD BEHIND

AGENDA

• FY16 Results Review

• ① ② FY16 Highlights

• ③ Strategy Dividend

• ④

==> picture [117 x 52] intentionally omitted <==

3

LEAVE YOUR WORLD BEHIND

FINANCIAL HIGHLIGHTS − STRONG GROWTH IN FY16

==> picture [1501 x 588] intentionally omitted <==

----- Start of picture text -----

FY16 ACTUAL FY15 ACTUAL GROWTH (%)
Bookings 167,331 74,900 123%
Tandems 138,215 61,069 126%
Revenue ($m) 58.5 26.3 122%
EBITDA ($m) 13.5 6.0 123%
Average Sale ($) $423 $421 0.5%
----- End of picture text -----

==> picture [117 x 52] intentionally omitted <==

4

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

	FY16 FORECAST	FY16 ACTUAL
Revenue ($m)	54.9	58.5
EBITDA ($m)	13.5	13.5
EBITDA (%)	24.5%	23.0%
One-off items * ($m)	-	0.9
Underlying EBITDA ($m)	13.5	14.4
Underlying EBITDA (%)	24.5%	24.6%

• FINANCIAL HIGHLIGHTS − REVENUE & UNDERLYING EBITDA VS GUIDANCE

	REVENUE	EBITDA
FY16 Forecast ($m)	54.9	13.5
FY16 Actual above forecast ($m)	3.5	0.9
Total FY16 ($m)	58.5	14.4

• Underlying EBITDA takes into account those one-off items that were not part of normal trading conditions in FY16, including but not limited to: Business Acquisition Costs, Insurance Recoveries, Bad Debts written off

==> picture [117 x 52] intentionally omitted <==

6

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

**FINANCIAL HIGHLIGHTS − UNDERLYING FY16 NPAT ***

	FY16 ACTUAL
NPBT ($m)	9.2
One-off items * ($m)	0.9
Underlying NPBT ($m)	10.1
Income Tax ** ($m)	(2.3)
Underlying NPAT ($m)	7.8

• Underlying NPAT takes into account those one-off items that were not part of normal trading conditions in FY16, including but not limited to: Business Acquisition Costs, Insurance Recoveries, Bad Debts written off

• ** Assumed 30% income tax rate on one-off items

==> picture [117 x 52] intentionally omitted <==

7

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

FINANCIAL HIGHLIGHTS − UNDERLYING EBITDA * SEGMENT REPORTING	FINANCIAL HIGHLIGHTS − UNDERLYING EBITDA * SEGMENT REPORTING	FINANCIAL HIGHLIGHTS − UNDERLYING EBITDA * SEGMENT REPORTING	FINANCIAL HIGHLIGHTS − UNDERLYING EBITDA * SEGMENT REPORTING
	FY16 AUS	FY16 NZ	FY16 TOTAL
Revenue ($m)	48.7	9.8	58.5
EBITDA ($m)	9.7	3.8	13.5
One-off items * ($m)	0.9	0	0.9
Apportionment of costs ** ($m)	0.7	(0.7)	-
Underlying EBITDA ($m)	11.3	3.1	14.4
Underlying EBITDA (%)	23.2%	31.6%	24.6%

• Underlying EBITDA takes into account those one-off items that were not part of normal trading conditions in FY16, including but not limited to: Business Acquisition Costs, Insurance Recoveries, Bad Debts written off

• ** Apportionments of costs are management representations of amounts that Australia has incurred on behalf of NZ

==> picture [117 x 52] intentionally omitted <==

8

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

HIGHLIGHTS FOR FY16

• Growth

• ü delivered organically and through acquisition • Finished ahead of management expectations

• • Tandem bookings increased by more than 123% (YoY) FY16 vs FY15;

• • Tandem jumps up more than 126% (YoY) FY16 vs FY15 (due to increased bookings and greater processing rates);

• ü Successful capital raising for $19.6m, oversubscribed by strong investor base ü Successful acquisition of NZone Skydive (“NZone”) • Significant operational efficiencies delivered

• ü Successful capital raising for $15.0m, oversubscribed by strong investor base ü Successful acquisition of Skydive Wanaka (“Wanaka”) , completed on 1 July 2016

9

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

FOUR KEY STRATEGIC PRIORITIES DRIVING FUTURE GROWTH

Efficiencies

Acquisitions Diversification Further Start ups

==> picture [117 x 52] intentionally omitted <==

10

LEAVE YOUR WORLD BEHIND

STRATEGIC ACTIVITIES IN FY16

• ¤ Successful integration of ASG acquisition completed

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

• ¤ First overseas acquisition

• ¤ acquired Nzone Skydive , New Zealand’s leading tandem skydiving company, completed 30 October 2015,

• ¤ Second overseas acquisition (event after balance date)

• ¤ acquired Skydive Wanaka, completed 1 July 2016 to complement NZone Skydive acquisition

==> picture [117 x 52] intentionally omitted <==

11

LEAVE YOUR WORLD BEHIND

DIVIDEND ANNOUNCEMENT

• ¤ In line with the company’s dividend policy , a final and fully franked dividend of 1 cent per share has been declared on 29 August 2016 ¤ Record date 20 September 2016 ¤ Payment date 30 September 2016

==> picture [117 x 52] intentionally omitted <==

12

LEAVE YOUR WORLD BEHIND

Further information www.skydive.com.au

==> picture [117 x 52] intentionally omitted <==

13

LEAVE YOUR WORLD BEHIND