SKYCITY Entertainment Group Limited

Federal House 86 Federal Street PO Box 6443 Wellesley Street Auckland New Zealand

Telephone +64 (0)9 363 6141 Facsimile +64 (0)9 363 6140 www.skycitygroup.co.nz

27 October, 2015

Client Market Services

NZX Limited

Level 1, NZX Centre

11 Cable Street

WELLINGTON

RE: SKYCITY ENTERTAINMENT GROUP LIMITED (SKC)

SKYCITY appoints contractor for New Zealand International

Convention Centre and Hobson St Hotel

Please find attached our announcement relating to the above.

Yours faithfully

Peter Treacy

Company Secretary

27 October 2015

SKYCITY appoints contractor for New Zealand International Convention

Centre and Hobson St Hotel

SKYCITY has today announced the next major milestone in the development of the

New Zealand International Convention Centre (NZICC) with the appointment of

Fletcher Construction as the main contractor for the NZICC and Hobson St hotel

projects.

Please find attached a Media Release & Investor Presentation which provides further

information and detail on the announcement.

Nigel Morrison, Chief Executive Officer, and Rob Hamilton, Chief Financial Officer, of

SKYCITY, intend to hold an analyst and investor teleconference call at 2pm NZT

(12pm noon AEDT) today to discuss the key points of the announcement. There will

also be a brief opportunity for questions during the call.

You can participate in the call by dialling one of the following numbers:

Location Number Location Number Location Number

Australia 1800 801 825 Ireland 1800 720 105 Sweden 0207 968 70

Australia – Sydney

+61 (0)2 8524 5042 Italy 800 875 577 Switzerland 0800 837 001

Belgium 0800 784 01 Japan 0120 271 900 Taiwan 0080 1615 189

Canada 1855 842 3490 Malaysia 1800 816 107 Taiwan – Taipei +886 2 7708 3282

China 4001 200 539 Netherlands 0800 0234 240 Thailand 001800 613 61433

France 0800 916 599 New Zealand 0800 452 905 United Kingdom 0800 015 9725

Germany 0800 1899 399 Norway 800 11 518 United Kingdom +44 (0)20 3078 7622

Hong Kong 800 905 927 Philippines 1800 1110 1347 United States 1855 298 3404

Hong Kong +852 5808 3202 Singapore 800 616 3222 US – New York +1 631 5142 526

India 000 800 100 8255 Singapore +65 6823 2299

Indonesia 00180 301 91840 South Korea 00798 6136 1434

After dialling in you will be greeted by the operator and asked for the CONFERENCE

ID. Once this has been quoted, you will then be asked for your name, company and

the country you are calling from.

CONFERENCE ID: 3295132

We would ask that you dial in to the conference 5 to 10 minutes before the call is

scheduled to take place. The call will be closed off at 2pm NZT and we will not accept

late entrants.

2

If you wish to ask a question, please dial *1 to join the question queue (you may do

this at any time during the call). If you wish to cancel your question and leave the

queue, dial *2.

A replay will be available approximately 2 hours after the conclusion of the

conference call (ie. after 4pm NZ time / 2pm AEDT).

To access the replay, dial a telephone access number (listed below) and enter the

replay passcode followed by the “#” key.

Replay Dial in Number (1800) 1800 008 585

Replay Dial in Numbers (Sydney) +61 2 9641 7900

Replay Dial in Numbers (Melbourne) +61 3 9226 0870

Replay Dial in Number (Int’l) See below for specific International Toll Free country access

Location Number Location Number

Belgium* 0800 11 797 Malaysia 1800 181 061

Canada 1866 4783 460 Netherlands 08000 232 153

China 4001 842 240 New Zealand 0800 444 310

Denmark 8088 1373 Philippines 1800 1110 1875

France 0800 904 160 Singapore 800 616 2127

Germany* 0800 181 3763 South Africa 0800 993 543

Hong Kong 800 966 697 South Korea 00798 612 1058

India 000 800 100 6647 Sweden* 020 792 274

Indonesia 0018 0306 12086 Switzerland* 0800 564 016

Ireland 1800 511 665 Taiwan 00801 232 352

Italy 800 784 706 UK 0800 169 7301

Japan 0066 3386 1031 USA 1866 846 0868

Replay Passcode 3295132

Replay Availability 7 Days Replay End

Date

29/10/15 23:59 AEDT

For more information on the content of this announcement please contact:

Investors

Ben Kay

Investor Relations & Corporate

Development Manager

DDI: +64 9 363 6067

E-mail: ben.kay@skycity.co.nz

Media

Kelly Armitage

Group Communications Manager

DDI: +64 9 363 6368

Email: kelly.armitage@skycity.co.nz

MEDIA RELEASE

27 October 2015

SKYCITY and Fletcher Construction form partnership to build New Zealand’s International Convention Centre and hotel

$700m investment in Auckland tourism infrastructure

Partnership: The new NZICC and Hobson Street hotel will be built together, resulting in a construction project worth $700m and creating at least 1000 construction jobs over 3 years.

SKYCITY Entertainment Group and leading New Zealand construction contractor Fletcher

Construction have announced a partnership to build the New Zealand International

Convention Centre and a new 5-star hotel.

In a major milestone towards the landmark development becoming a reality, SKYCITY

Chief Executive Nigel Morrison announced SKYCITY has agreed the terms of a binding,

$477m contract with Fletcher Construction Company Ltd to build and complete the

design of the NZICC, the 5-star, 300-room Hobson Street hotel, the retail laneway

linking Nelson and Hobson streets, and 1327 carparks under the NZICC.

The parties are confident the work can begin by Christmas.

The construction projects will create at least 1000 jobs during their 38-month build, plus

approximately 1140 positions across conventions, hospitality, retail, gaming and food

and beverage once both the NZICC and the new hotel are operational.* Including all

other associated costs, including land, fit-out, and contingencies, the projects represent

a $700m total investment by SKYCITY in the Auckland economy.

The NZICC is one of the most significant building projects in Auckland since the

construction of the Sky Tower – also built by Fletcher Construction – 18 years ago.

Fletcher Construction will build the 32,000 sqm convention centre and a new 300-room,

5-star luxury hotel simultaneously, providing a huge boost to the local construction

market and kick-starting a five-year inner-city building boom estimated at putting $6

billion into the local economy.**

Building boom for Auckland

Transformation: The view from Nelson Street looking down the laneway to the Hobson Street hotel. The project will transform a derelict area of Auckland’s CBD into a lively precinct for locals and visitors alike, kicking off a major building boom for Auckland.

SKYCITY and Fletcher Construction have entered into a binding commitment letter which

records the agreed commercial and legal terms of the building works contracts for the

NZICC and Hobson Street hotel.

Formal signing of the two building works contracts is expected in November, once a

small number of outstanding matters have been satisfied, including finalising insurance

and specific requirements under the NZICC Agreement with the NZ Government.

Fletcher Construction is New Zealand’s leading construction contractor. It is a division of

Fletcher Building, one of New Zealand’s largest publicly-listed companies, which has

been in operation since 1909.

Mr Morrison says the agreement with Fletcher Construction was a huge step for both

SKYCITY and the NZICC project, and signified the beginning of a new phase in the

planning of the tourism and infrastructure facility.

“Today is a watershed moment for SKYCITY. This day has been years in the planning.

I’m delighted to able to announce this construction partnership with Mark Adamson from

Fletcher Building and his construction team, who share our bold and exciting vision for

this project,’’ he says.

Fletcher Building CEO Mark Adamson says he is excited at the opportunity to again work

with SKYCITY on another landmark building for New Zealand.

“This is an amazing building and a huge opportunity. Fletcher Construction has a long

association with SKYCITY dating back to the Sky Tower 18 years ago, so I’m honoured

that SKYCITY has chosen us to be a key part of bringing this project to life.’’

First look inside Auckland’s newest hotel

Kiwi design: Architects say the 300-room hotel’s interior (above) will be uniquely New Zealand – while the building’s exterior (below) reflects the landscape it is grounded in.

The architects and designers working on the NZICC have continued to refine the design

of the building, to further anchor the building in its New Zealand context. They have

released new images, including a first look inside the Hobson Street hotel.

Andrew Barclay, Principal of Warren and Mahoney Architects and Design Director for the

NZICC, says that as the Convention Centre is constructed, New Zealanders will see the

building develop into a powerful expression of our country's identity.

“Every aspect of the design, from an open transparent and welcoming facade, to fluid

public spaces and the use of natural materials, has been carefully chosen to reflect the

essence of New Zealand. When it opens this building will be an authentic New Zealand

experience and a built embodiment of Kiwi hospitality for which New Zealand is famed,“

he says.

Construction to begin by the end of 2015

Connected: The Hobson Street hotel will be connected to both SKYCITY and the International Convention Centre. The building’s exterior is uniquely New Zealand.

The agreement between SKYCITY and Fletcher Construction follows Auckland Council’s

ratification of the streamlined design of the NZICC agreed to with the Crown in May this

year. SKYCITY now has all the resource consents in place it requires to begin

construction.

SKYCITY has agreed with the Crown to spend at least $430m constructing the NZICC, in

return for a range of gaming concessions including the extension of its Auckland licence

through until 2048.

Mr Morrison says latest indications were the company would spend $471m on the NZICC,

plus an additional $159m on the new hotel and $73m, most of which is on the new

laneway, airbridge, retail fit out and additional carparking. The company was still

considering options for financing the hotel.

The NZICC will be the largest purpose-build convention centre in the country, capable of

hosting conventions of around 3000 people, or one-off events of up to 4000 people on

the exhibition floor. It will also be able to host multiple events at the same time.

The NZICC’s exhibition hall alone will be five times larger than the current largest

exhibition hall in the country – SKYCITY Convention Centre’s New Zealand Room.

A new laneway similar to Federal Street between the new hotel and the NZICC will also

be created, providing quality food and beverage outlets and a new public space.

The city’s economic development agency, Auckland Tourism, Events and Economic

Development (ATEED), which supports the development of an international convention

centre for Auckland, has welcomed the announcement of Fletcher Construction.

“Having an Auckland-based business confirmed as the infrastructure partner for the build

of a project of this scale will generate new local jobs and money in Auckland’s economy,”

says Chief Executive, Brett O’Riley.

“In addition to the infrastructure opportunity the NZICC supports the growth of the

business events industry for Auckland – which aims to significantly grow the sector from

$236 million of direct spend to Auckland in 2013 to $430 million by 2023. Auckland

Convention Bureau, a division within ATEED, is already fielding interest in a venue suited

to staging large scale conferences, “ he says.

ENDS

QUICK FACTS

NZICC

32,000sqm GFA (Gross Floor Area) floor space

Five times larger than the current largest convention facilities in New Zealand

Capable of hosting conferences of around 3000 people and one-off events of around

4000 people

24 meeting rooms

Building and façade designed with ‘Kiwi’ identity

1327 car parks

Adjacent laneway with exciting retail and food and beverage options

38-month build time

Anticipated opening in 2019

Hobson Street hotel

300 rooms, 5-star

Average room size 28-32 sqm

Contemporary architecture

Linked to NZICC, laneway, and main SKYCITY complex

* Based on SKYCITY estimates of positions in the NZICC, plus hotel operations,

carparking, gaming, food and beverage facilities in the new laneway, and contracted and

third-party services.

** National Construction Pipeline report no.3, July 2015

IMAGES AND VIDEO:

Hi-res images and video for publication with this story are available on request.

Video includes:

­ Before and after comparison showing how the site will be transformed.

­ Interview with Nigel Morrison, CEO SKYCITY Entertainment Group

­ Interview with Mark Adamson, CEO Fletcher Building

­ Fly-through video of the New Zealand International Convention Centre and hotel.

­ Interview with Andrew Barclay, NZICC Design Director, Warren and Mahoney Architects

For more information please contact:

Kelly Armitage

Group Communications Manager

DDI: +64 9 363 6368

Mobile: +64 27 213 5625

E-mail: Kelly.armitage@skycity.co.nz

Ben Kay

Investor Relations & Corporate

Development Manager

DDI: +64 9 363 6067

E-mail: ben.kay@skycity.co.nz

Project Update: NZICC and Hobson St Hotel Investor Presentation 27 October 2015

Introduction

2

SKYCITY and leading New Zealand construction contractor Fletcher Construction have announced a partnership to build the New Zealand International Convention Centre (NZICC) and the new 5-star, 300-room Hobson St hotel

In a major milestone towards the landmark development becoming a reality, SKYCITY Chief Executive Nigel Morrison announced SKYCITY has agreed the terms of a binding, $477m contract with Fletcher Construction to build and complete the design of the NZICC, the hotel, the retail laneway linking Nelson and Hobson streets, and 1327 car parks under the NZICC

The NZICC will be a landmark and iconic building for Auckland, enabling New Zealand to host major international conventions for around 3,000 delegates

SKYCITY’s total expenditure on the NZICC and Hobson St hotel projects will be ~$700m – a significant investment in the future of Auckland and commitment to economic growth in New Zealand

These projects will create an estimated 1,000 jobs during construction and around 1,140 jobs across conventions, hospitality, retail, gaming and food and beverage once the NZICC and hotel are operational

Key Project Highlights

3

Fletcher Construction appointed as main contractor for the NZICC and Hobson St hotel projects following a competitive tender process

Agreed commercial terms provide significant risk protection for SKYCITY

Expect to commence construction of the NZICC by the end of 2015 and targeting completion of the NZICC and Hobson St hotel in Q1 2019

Total project costs are consistent with previous market guidance

Total capital expenditure of $635m over FY16 to FY20, including Hobson St hotel and activation of gaming concessions

Expect to activate the gaming concessions under the NZICC Agreement over the next month

SKYCITY remains confident that the NZICC and Hobson St hotel projects will be value-enhancing for shareholders

Main Contractor – Fletcher Construction

4

Fletcher Construction chosen as the main contractor appointed for both projects following a competitive tender process

Fletcher Construction is New Zealand’s leading building contractor

Very experienced in managing large construction projects

Previously developed SKYCITY Auckland site, the Sky Tower and the Grand Hotel

Division of Fletcher Building, one of New Zealand’s largest listed companies

SKYCITY and Fletcher Construction have entered into a binding commitment letter which records the agreed commercial and legal terms of the building works contracts for the NZICC and Hobson St hotel

Formal signing of the two building works contracts is expected to occur in November once a small number of outstanding matters have been satisfied, including finalising insurance and specific requirements under the NZICC Agreement with the NZ Government

Key Terms of Building Works Contracts

5

NZICC Building Works Contract Hotel Building Works Contract

Scope NZICC, underground car park, laneway and

hotel basement Hobson St hotel (excluding basement)

Design Based on developed design endorsed by NZ

Government Based on preliminary design

Timing 38 month construction period from signing

Financial incentives to complete on-time

Developed contemporaneously with NZICC

Financial incentives to complete on-time

Costs

90% of construction costs fixed or capped

under GMP contract

Remaining 10% represented by provisional

sums within SKYCITY’s control

Cost savings shared between SKYCITY and

Fletcher Construction

Budget includes appropriate contingencies

88% of construction costs fixed or capped

under GMP contract

Remaining 12% represented by provisional

sums within SKYCITY’s control

Cost savings shared between SKYCITY and

Fletcher Construction

Budget includes appropriate contingencies

Insurance Comprehensive building works, public liability

and professional indemnity cover

Comprehensive building works, public liability

and professional indemnity cover

Agreed commercial terms provide significant risk protection for SKYCITY

Project Timetable

6

Nov 2015

Dec 2015

H2 2017

Q1 2018

Q1 2019

Q2 2019

Sign NZICC and Hobson St hotel building works contracts

Activate gaming concessions

Commence construction of NZICC

Commence construction of Hobson St hotel (above ground)

Targeted completion of NZICC and Hobson St hotel

Soft opening of NZICC and Hobson St hotel, followed by official opening

Targeted completion of NZICC car parks

Total Project Costs

7

Total project costs consistent with previous market guidance and include appropriate contingencies

SKYCITY intends to complete the NZICC and Hobson St hotel within the project budget

NZ$m Spent to Date Still to Spend Total

NZICC 94 378 471

Laneway, Additional Car Parks, Other 10 64 73

Total (excluding Hobson St hotel) 103 441 544

Hobson St hotel 19 140 159

Total (including Hobson St hotel) 122 581 703

Future Capital Expenditure Profile

8

Total capital expenditure of $635m over FY16 to FY20, including activation of gaming concessions

NZ$m FY16 FY17 FY18 FY19 FY20 Total

NZICC, Laneway, Additional Car

Parks, Other 37 107 192 100 5 441

Activation of Gaming

Concessions 54 - - - - 54

Total (excl. Hobson St hotel) 91 107 192 100 5 495

Hobson St hotel 2 34 81 21 2 140

Total (incl. Hobson St hotel) 93 141 273 121 7 635

Project Funding

9

SKYCITY is well placed to fund the NZICC and Hobson St hotel projects from future operating cash flows and additional debt funding

Following the recent $125m NZ bond issue, SKYCITY now has over $300m of committed undrawn bank facilities – sufficient headroom to fund the NZICC and Hobson St hotel projects

As signalled in the FY15 results announcement, SKYCITY will provide an update on its long-term funding plan once the Adelaide expansion project is finalised

Currently expect the Adelaide expansion project to cost around A$300m

Expect to confirm details of the funding plan over the next 3-4 months

As part of its long-term funding plan, SKYCITY continues to explore property-related funding options, including a potential sale of the Federal St car park and seeking external investors to fund and ultimately own the Hobson St hotel development

JLL appointed to secure external investors for the Hobson St hotel

Information Memorandum due to be released in November

Consents and Approvals

10

Resource Consent

Auckland Council recently approved the resource consent for the NZICC and Hobson St hotel

Approved resource consent reflects the preliminary design for the NZICC agreed with the NZ Government in May 2015

No further resource consent approvals are required to develop the NZICC and Hobson St hotel

NZ Government Approvals

NZ Government has confirmed that the developed design for the NZICC remains “materially consistent” with the previously agreed preliminary design

Minor outstanding matters under the NZICC Agreement will be addressed with the NZ Government during November

No other approvals are required from the NZ Government to develop the NZICC

Activation of Gaming Concessions

11

Gaming concessions under the NZICC Agreement will become effective upon the signing the NZICC building works contract

230 new EGMs, 240 new ATGs and 40 new tables

TITO and cashless available on all gaming product

$50 and $100 note acceptors available on 359 gaming machines in premium rooms

Expansion of the permittable gaming area to include the Federal St footprint (including the Grand Hotel and existing Convention Centre)

Extension of gaming venue licence to 2048 (from 2021)

Gaming tax rate certainty for a minimum of 7 years

$54m of additional capital expenditure allowed for activation of gaming concessions

Partial infill of atrium to accommodate new gaming product

Purchase of new gaming product

Implementation of TITO, cashless and note acceptor systems

New VIP gaming salons in the Grand Hotel

Replacement of back-up generators for the NZICC and Auckland main site

Activation of Gaming Concessions

12

SKYCITY expects to activate the gaming concessions under the NZICC Agreement over the next month

TITO, cashless and note acceptors effective immediately

60% of new gaming product to be allocated to the existing gaming floor

Stage 1: By December 2015 Stage 2: By June 2016

New ‘Horizon’ suites and salons on level 7 of the Grand Hotel

Conversion of ‘Jade Dragon’ to accommodate additional ATG product

Infill of part of the main atrium to expand the gaming floor podium

Current Stage 1 Sub-Total Stage 2 Total

Gaming machines 1,608 269 1,877 0 1,877

ATGs 39* 0 39* 201 240

Tables 110 27 137 13 150

Ratio of machines & ATGs to tables

15.0:1 15.0:1 15.0:1

Gaming product activation plan (as at October 2015)

*Currently included within definition of gaming machines

Key Design Features of NZICC

13

32,000 sqm of floor space available to cater for conferences of around 3,000 delegates

Five times larger than the largest convention facilities in NZ (which SKYCITY currently operates)

Capable of hosting conferences of around 3,000 people and one-off events of around 4,000 people

Plenary theatre capacity of 2,850 – largest theatre in NZ

Capable of hosting two 1,200 delegate conventions contemporaneously

24 separate meeting rooms to support overall facility

Additional ~1,327 car parks beneath the NZICC facility and integrated with the existing SKYCITY Auckland property

Pedestrian laneway with exciting retail and food & beverage offerings

Strong national identity designed to provide an authentic New Zealand experience and embody Kiwi hospitality

Key Design Features of Hobson St Hotel

14

~300 room, five-star hotel designed by Warren and Mahoney Architects and Moller Architects

Building and façade designed to give the hotel a strong architectural identity

Design envisages a lobby restaurant & bar, gymnasium and 24 hour valet car parking service

Hotel porte cochère and entry plaza to interface with the NZICC and laneway

Direct connection to the NZICC and SKYCITY Auckland main site by air bridges

Project Master Plan, Looking East

15

Hobson St hotel

NZICC

Laneway

SKYCITY Auckland

NZICC – At Night, From Nelson St

16

NZICC – Hobson St View (including laneway)

17

NZICC – Laneway View From Nelson St

18

NZICC – Cross-Section View

19

NZICC – Entry Level Interior

20

NZICC – Plenary Level Interior

21

Hobson St Hotel – Hobson St View

22

Hobson St Hotel – Connectivity to NZICC and SKYCITY Auckland

23

Hobson St Hotel – Lobby

24

Hobson St Hotel – Porte Cochère

25

Disclaimer

26

All information included in this presentation is provided as at 27 October 2015

The presentation includes a number of forward-looking statements. Forward looking statements, by their nature, involve inherent risks and uncertainties. Many of those risks and uncertainties are matters which are beyond SKYCITY’s control and could cause actual results to differ from those predicted. Variations could either be materially positive or materially negative

This presentation has not taken into account any particular investors investment objectives or other circumstances. Investors are encouraged to make an independent assessment of SKYCITY

For more information in connection with this presentation, please contact

Ben Kay, Investor Relations & Corporate Development Manager Phone: + 64 9 363 6067 Email: ben.kay@skycity.co.nz