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

13 November 2015

Client Market Services

NZX Limited

Level 1, NZX Centre

11 Cable Street

WELLINGTON

Dear Sir/Madam

RE: SKYCITY ENTERTAINMENT GROUP LIMITED (SKC)

ANNUAL MEETING OF SHAREHOLDERS

Please find attached the following prepared announcements that will be

delivered at the company’s annual meeting of shareholders to be held at 10.00am

in Auckland today:

(a) Chairman’s Address; and

(b) Chief Executive Officer’s Presentation.

In addition, attached is a copy of the company’s media release of today’s date.

Copies of these announcements will be available from SKYCITY’s website later

today.

Yours faithfully

Peter Treacy

Company Secretary

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Chairman’s Address: Chris Moller

Introduction It is now my pleasure to review SKYCITY’s annual performance with you.

Results

This year has been a positive one for SKYCITY, with some strong results.

We have achieved record revenue growth across the Group, with the total exceeding $1 billion for the first time.

This is a result of five years of solid investment.

This growth has also been reflected in the Company’s earnings, with reported net profit after tax being up 30% to $128.7 million.

Dividends

This year’s final dividend was the same as last year’s final dividend of 10 cents per share.

Combining the final and interim dividends, investors have received a total dividend

of 20 cents per share. Total dividends paid were $117.3 million, which at the current share price, is a

dividend yield of approximately 5%.

Property Performance Once again, SKYCITY Auckland continues to be the hero property within the

Group.

Capital investments that have been made over the past five years are coming to fruition, delivering record results at the property, with both revenue and earnings before interest, tax, depreciation and amortisation growth achieved across all

activities including International Business, gaming, hotels, food and beverage and the Sky Tower.

Federal Street has gone from strength to strength, not only by delivering very good financial results, but continuing to be an award-winning restaurant precinct.

SKYCITY Auckland is also making its name as the premium entertainment

destination in the city, being host to several high profile visitors and events. Again, SKYCITY’s International Business continues to deliver record activity with

normalised revenue up 43%.

Recognition of our Group wide international Horizon brand and offering is increasing year on year, and further growth has been underpinned by the success of our expanded international sales and marketing team.

Again, the continued growth in International Business follows several years of

strategic investment in this area, with Group International Business increasing by 240% since 2011.

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It is also pleasing to see both SKYCITY Hamilton and our two Queenstown

properties returning to growth this financial year.

SKYCITY Hamilton’s recent investment in conventions, a rejuvenation of the food and beverage offering, significant changes to the main gaming floor and some positive leadership changes, have all contributed to Hamilton’s improved

performance.

SKYCITY Queenstown and the SKYCITY Wharf Casino also delivered positive financial outcomes, underpinned by strong International Business volumes.

As such an iconic part of New Zealand and one that is very popular with our overseas visitors, SKYCITY’s focus in Queenstown will continue to centre on

growing our International Business there. Moving to Australia, Darwin also achieved good results despite a very challenging

local market.

Investments in Darwin, including a new sports bar and a new restaurant, have contributed to this growth, as has a significant lift in International Business

turnover and a strong focus by management on operating cost savings. In stark contrast to the rest of the Group, Adelaide’s result was unsatisfactory.

Despite modest revenue growth, the disruption in the first half of the year due to

large-scale refurbishment at the property, together with challenging economic conditions and inadequate cost control, resulted in a poor performance for the year.

The Chief Executive has recently been spending a significant amount of time in

Adelaide in an effort to turn the business around. Accordingly I will leave it to him to update the meeting on Adelaide’s recent

trading performance and the status of the Adelaide property expansion.

NZICC Significant progress has been made on the New Zealand International Convention

Centre project, with the resource consent approved by the Auckland Council and a building contract being executed with Fletcher Construction, a company that

SKYCITY has a long and positive association with. The NZICC will be the largest purpose-built convention centre in the country,

capable of hosting conventions of around 3,000 people, or one-off events, such as concerts, of up to 4,500 people.

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

SKYCITY is looking at partnership options for the Hobson Street hotel, which will also be built by Fletcher Construction, adjacent to the NZICC.

We look forward to seeing the first sod turned on the NZICC before the end of the calendar year and I congratulate all those involved in the project in finally getting

it to this stage.

Against that background, it is timely to reflect on the benefits to SKYCITY of the NZICC transaction.

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Everyone knows that convention centres are not of themselves significant profit

generators and the Board is under no illusion about that.

However the extension of SKYCITY’s Auckland licence to 30th June, 2048, the tax certainty obtained and the attraction of more visitors to the SKYCITY precinct will be of significant benefit to the Company.

Corporate Social Responsibility

The gaming concessions will also enhance our profitability and, whilst they are controversial in some quarters, our Corporate Social Responsibility programme is

how we retain our social licence to operate.

Accordingly, and as you would expect, it stands at the heart of our strategy. It permeates through all of SKYCITY’s operations and governance practices.

Our commitment to operate responsibly continues to dictate how we do business

every day of the year.

As Directors we take our corporate social responsibility very seriously. That is why SKYCITY has for several years had a Board Committee, which bears

the Corporate Social Responsibility name, and will in the future be chaired by Director, Sue Suckling, following Peter Cullinane stepping down from the Board

today. The Committee focuses on five key pillars, which are contained in our Corporate

Social Responsibility Strategy, being responsible gaming, the environment, fair operating practices, human rights and labour practices, and community

involvement and development. It is important to us that our stakeholders, including shareholders, are aware of

our commitments in this area and for that reason, SKYCITY is currently developing its first stand-alone Corporate Social Responsibility report, to explain our strategy,

demonstrate what we are doing, and look at ways in which we can continue to improve our efforts in this critically important space.

It All Starts Here

This year, SKYCITY embarked on a significant brand campaign entitled “It All Starts Here”, which was shown at the commencement of this meeting.

The campaign followed research SKYCITY undertook, which showed that, while many people were familiar with our casino, bars and restaurants, they were not

aware of our community activity, our employment story, or the fact that we are a big supporter of local suppliers.

SKYCITY staff have been at the forefront of this campaign, telling the public in their own words, why they are proud to work for SKYCITY.

The campaign has also included several high profile New Zealanders, including chef Peter Gordon, Olympian Valerie Adams and broadcaster Paul Henry, telling

their stories about why they enjoy visiting SKYCITY.

SKYCITY was also proud this year to become the naming rights sponsor for another top New Zealand sports team – the Northern, now SKYCITY, Mystics.

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This is the first sponsorship SKYCITY has entered in to in women’s professional

sport.

Governance Turning to governance, I would like to thank my fellow Directors for their hard

work and commitment over the past year, which has been extremely busy and has had its challenges, especially around the NZICC and Adelaide.

In addition we bid a warm farewell to Peter Cullinane, who has chosen to retire from the Board today, due to his significant range of other commitments.

Peter has championed SKYCITY’s governance focus on Corporate Social

Responsibility as Chair of that Board committee and as a Trustee of the SKYCITY Auckland Community Trust, which has granted over $35.3 million to nearly 2,000 charitable organisations since the Company’s inception 21 years ago.

We thank Peter for his commitment to SKYCITY over the past seven years, and wish him well in his future endeavours.

As a consequence of Peter’s retirement, SKYCITY has appointed a specialist firm to undertake a Non-Executive Director search and that process is already underway.

Thanks

I would also like to extend the Board’s thanks to Nigel Morrison and his Executive Management team for a pleasing record year for the Group.

On behalf of the Board, I also extend our thanks to SKYCITY’s staff, who work so

hard, every day to provide our customers with exceptional experiences, be it in our restaurants and bars, on the gaming floors, at attractions, in our hotels and at events and functions, across all of our properties in New Zealand and Australia.

Conclusion

In our joint annual report, Nigel and I referred to this year as a year of momentum, following five years of solid investment and laying the foundations for

further growth.

The Board and Management expect that going forward, SKYCITY will continue to demonstrate growth in key areas and improve in areas that have underperformed in the last financial year.

I now invite our Chief Executive, Nigel Morrison, to share with you more of the

year that was and the year that will be.

13/11/2015

1

SKYCITY – 2015 SKYCITY  2015 Annual Meeting

13 November 2015Chief Executive AddressNigel Morrison 

Key Highlights Of 30 June 2015 Result 

13/11/2015

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FY15 Result Overview (1 of 3)

Record Normalised Revenue up 8.7% (over $1.0bn for the first time) and solid earnings growth with Normalised NPAT up 8.8% to $134.1m

Cash flows from operations increased to $368.0m, up $49.0m (15.3%) from $319.0m

Strong 2H15 result with Normalised EBITDA up 9.2% to $150.5m and Normalised NPAT up 18.8% to $67.5m

Continued strong growth in Auckland, with momentum

• Auckland continued to be the standout performer across the group, delivering record results, with Normalised Revenue up 13.0% (including Auckland IB revenues up 38.7% to $81.3m) and Normalised EBITDA up 13.7% to $247.8m from $217.9m

• A strong focus on cost management ensured solid EBITDA margins maintained  despite mix changes 

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• A strong focus on cost management ensured solid EBITDA margins maintained, despite mix changes from strong growth in IB, local tables and F&B

• Auckland reaping the benefits from the capex program over the last 5 years (Horizon, Eight, Federal Street and our 6 new signature restaurants), and from the positive external influences which are supporting sustained growth (record tourism inflows, Auckland's events strategy, buoyant economy)

FY15 Result Overview (2 of 3)

Continued strong growth in group‐wide IB

• SKYCITY’s International Business (“IB”) grew to another record high, with group turnover and Normalised Revenue up 42.6% to $9.3bn and $125.6m, respectively

• Five years ago (FY11), before Horizon was launched in Auckland, IB turnover was only $2.8bn and Normalised Revenue $37.3m. The CAGR over the 5 years has been ~27%

• Normalised IB EBITDA was $26.4m up 35.1%, with margins over 20%. Actual win rate of 1.36% for the period, was in line with the theoretical (1.35%). Over the last 5 years, the weighted average win rate has averaged 1.349%, in line with the theoretical

Disappointing result for Adelaide 

• Adelaide was significantly impacted for the first 7 months of FY15 by the very disruptive total 

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• Adelaide was significantly impacted for the first 7 months of FY15 by the very disruptive total refurbishment of the property that wasn’t completed until the end of January 2015

• Over the year, modest revenue growth was achieved with Normalised Revenue up 4.8% to A$174.1m. However, the challenges of the disruption, a lack of immediate revenue growth and unsatisfactory cost management, resulted in margin contraction delivering a poor EBITDA result for the full year, down 19.2% to A$27.3m

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FY15 Result Overview (3 of 3)

FY15 FY14 Movement

$m $m $m %

Normalised Revenue (incl Gaming GST) 1,007.7 927.3 80.4 8.7%

N li d EBITDA 30 9 28 6 3 6 0%Normalised EBITDA 304.9 287.6 17.3 6.0%

Normalised NPAT 134.1 123.2 10.9 8.8%

Normalised EPS 22.9 cps 21.3 cps 1.6 cps 7.5%

FY15 FY14 Movement

$m $m $m %

Reported Revenue (incl Gaming GST) 1,009.1 902.5 106.6 11.8%

Reported EBITDA 304.1 256.5 47.6 18.6%

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• Average NZD/AUD cross‐rate during FY15 0.9301 and FY14 0.9049•Weighted average number of shares FY15 = 586,071,258  and FY14 = 579,706,028

Reported NPAT 128.7 98.5 30.2 30.7%

Reported EPS 22.0 cps 17.0 cps 5.0 cps 29.4%

Final Dividend NZ$ cps 10.0 cps 10.0 cps ‐ ‐

TSR – 1 year October 2014 to November 2015AGM to AGM

25.6%24.6%

25.0%

30.0%

15)

17.8%

5.0%

10.0%

15.0%

20.0%

ear TSR

 (October  2014 to November 201

6

‐0.1%

‐5.0%

0.0%

SKC (A$) SKC (NZ$) NZX50 ASX200

1Ye

16‐Oct‐14: A$3.1910‐Nov‐15: A$3.83Dividends: paid A$0.16

16‐Oct‐14: $3.4710‐Nov‐15: $4.13Dividends: paid $0.20

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FY15 Recognition and Awards

SKYCITY Auckland: “Australasia’s Leading Casino 

Resort”

SKYCITY Grand Hotel:

“New Zealand’s Leading Hotel 

Suite”

SKY Tower: “NZ number 1 Tourist 

Attraction & Landmark”

SKYCITY Grand Hotel and SKYCITY Hotel: 

“Trip Advisor Travellers' Choice Award & Certificates of Excellence” 

SKYCITY Hamilton: 

Depot:“Metro 

Restaurant of the Year Awards Supreme Winner” 

Gusto, The Grill, Fed Deli, The Sugar Club, 

Masu: “Metro 

Restaurant of the 

SKYCITY Darwin:“Best 

Entertainment Venue – NT” 

SKYCITY Darwin: “Ministers Award for Responsible 

Service of Gaming”

SKYCITY Adelaide, Sean’s 

Kitchen:“Finalist for 

Australia’s Best Restaurant and 

Bar Design Awards”

SKYCITY Adelaide, Sean’s 

Kitchen:“The City 

East Day Spa:“Oceania's Best 

Hotel SPA”

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SKYCITY Hamilton: “Trip Advisor Certificate of Excellence”

Federal St Restaurants: “Trip Advisor Certificate of Excellence”

Restaurant of the Year Awards Top 

50”

The City Awards, 

Adelaide’s Best New Restaurant 

the Year”

Trading Update Four Months 31 October 20153 5

13/11/2015

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Trading Update (1 of 4)(FY16 Revenue to 31 October)

$m $m $m %

New Zealand Casinos

■ Auckland 209 3 197 1 12 2 6 2%

FY16

YTD

FY15

 YTDMovement

■ Auckland 209.3 197.1 12.2 6.2%

■ Hamilton 18.1 16.3 1.8 11.3%

■ Queenstown / Other 10.7 4.6 6.1 132.6%

Total New Zealand 238.1 218.0 20.1 9.2%

Australian Casinos

■ Adelaide (A$) 70.3 56.5 13.8 24.4%

■ Darwin (A$) 52.0 50.3 1.6 3.3%

Total Australia (A$) 122.3 106.8 15.4 14.4%

Total Australia (NZ$) 135.1 118.0 17.0 14.4%

Normalised Revenue 373.2 336.0 37.2 11.1%

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•Revenue (including Gaming GST) is shown above to facilitate Australasian comparisons •Normalised Revenue is adjusted for IB at theoretical win rate of 1.35%,•Some numbers may not add because of rounding

Reported Revenue 363.6 329.5 34.1 10.3%

International Business turnover 4,520.3 2,999.2 1,521.1 50.7%

International Business win rate (%) 1.14% 1.13% 0.0% 0.9%

Trading Update (2 of 4)(FY16 EBITDA to 31 October)

$m $m $m %

New Zealand Casinos

FY16

YTD

FY15

 YTDMovement

New Zealand Casinos

■ Auckland 89.6 78.9 10.7 13.6%

■ Hamilton 7.8 6.1 1.7 27.9%

■ Queenstown / Other 1.9 0.2 1.7 850.0%

Total New Zealand 99.3 85.2 14.1 16.5%

Australian Casinos

■ Adelaide (A$) 14.7 8.3 6.4 77.2%

■ Darwin (A$) 16.6 15.4 1.2 7.8%

Total Australia (A$) 31.3 23.7 7.6 32.1%

Total Australia (NZ$) 34.5 26.2 8.3 32.1%

Corporate Costs (12 0) (10 3) (1 7) (16 5%)

10

•Normalised EBITDA is adjusted for IB at theoretical win rate of 1.35%•Some numbers may not add because of rounding

Corporate Costs (12.0) (10.3) (1.7) (16.5%)

Normalised EBITDA 121.8 101.1 20.7 20.5%

Reported EBITDA  107.2 94.1 13.1 13.9%

13/11/2015

6

Trading Update (3 of 4)

The strong momentum in 2H15 has continued through the first 4 months of the FY16 year (to 31 October 2015)

• Normalised Revenue up 11.1% to $373.2m and Normalised EBITDA up 20.5% to $121.8m 

• Pleasingly, Normalised EBITDA margins of all businesses (including and excluding IB), have improved compared to the pcp, with good cost management and leverage from revenue growth

SKYCITY’s flagship property Auckland, continues to perform strongly, with Normalised Revenue up 6.2% to $209.3m, and Normalised EBITDA up 13.6% to $89.6m, maintaining the momentum of FY15, with growth across all business segments

IB continues to deliver strong growth with group‐wide turnover up 50.7% to $4.5bn, with a win‐rate of 1 14% (comparable to the pcp of 1 13%  but below the theoretical)  Adelaide IB turnover was up over 200% 

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1.14% (comparable to the pcp of 1.13%, but below the theoretical). Adelaide IB turnover was up over 200% for the period, with Darwin up 51.8% and New Zealand up 15.0%, with most of the growth in Queenstown. Auckland turnover was flat with $2.0bn for the first 4 months

Hamilton and Queenstown continue to deliver significantly improved revenue and earnings, with Queenstown particularly buoyed by significant IB revenue growth

Trading Update (4 of 4)

Significant progress has been made on addressing the cost structure of the Adelaide operations. While local gaming continues to be soft (down ~4%), in a challenging local economy, the success of our two new signature restaurants, Sean's Kitchen and Madame Hanoi's, has more than doubled F&B revenue  

• The Adelaide Casino delivered Normalised Revenue up 24.4% to A$70.3m and Normalised EBITDA up i h ll i f f h fi h hi l i l77.2% to A$14.7m, with an overall margin of ~21%, for the first 4 months. This pleasing result was 

significantly boosted by the increase in IB business to Adelaide

• The refurbished property, with its improved offerings and recent changes to IB regulations (licensing processes now consistent with rest of Australia) has delivered significant IB growth. With certainty over IB tax rates, for the next 20 years and with commissions deductible, our effective tax rate on IB revenue is very competitive

• During the first 4 months Adelaide's IB turnover increased to A$1.3bn (compared to A$1.5bn for the full year in FY15). We continue to believe there is significant opportunity to grow the IB business in Adelaide, with the right product and offering (hotel/villas, Cantonese/Japanese restaurants and more 

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Adelaide, with the right product and offering (hotel/villas, Cantonese/Japanese restaurants and more Horizon gaming salons)

Darwin continues to experience challenging trading conditions, underpinned by soft hotel occupancy and F&B revenue. IB Normalised Revenue growth of 51.8% again contributed to the overall property EBITDA performance. As a result overall property revenue increased to A$52.0m up 3.3% and EBITDA to A$16.6m up 7.8%

13/11/2015

7

Update on Other Development Highlights: 

NZICC 

NZICC Update

SKYCITY announced on 27 October 2015 that Fletcher Construction had been awarded the contract for the NZICC and Hobson St Hotel construction at $477m. The agreed commercial terms, including the proportion of fixed or capped construction cost, at ~90%, provides significant risk protection for SKYCITY

SKYCITY will have invested ~$700m in this precinct on completion, including land, the NZICC development, the Hobson St Hotel development, the connecting air bridges, the retail/restaurant laneway development between Nelson and Hobson Streets and the additional car parks under the NZICC, increasing the total car park to 1,327 spaces, which, in addition to SKYCITY’s existing car park of 2,000 spaces, will increase SKYCITYs car park spaces to 3,327. This significant investment in vitally needed NZ tourism infrastructure will deliver 1,000 construction jobs and 1,140 hospitality jobs once completed

The construction contracts for the NZICC and Hobson St Hotel, were signed on Wednesday 11 November 2015, which has, accordingly, activated the gaming concessions negotiated under the NZICC Agreement

SKYCITY expects to commence construction of the NZICC by the end of 2015 and is targeting completion of the NZICC and Hobson St Hotel in Q1 2019 with an official opening by Q2 2019

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the NZICC and Hobson St Hotel in Q1 2019 with an official opening by Q2 2019

As shareholders would be aware the concessions include an extension of the casino licence to 2048, fixing gaming tax rates at current levels for the next 7 years, an expansion of gaming product (tables, MTGMs, and gaming machines) to meet current and future gaming demand, TITO throughout the property and flexibility to offer casino gaming in other facilities along Federal Street – including planned new “Grand Horizon Salons” on Level 7 of the Grand Hotel

13/11/2015

8

NZICC Project Master Plan, Looking East 

15

NZICC – Hobson St View (including laneway) 

16

13/11/2015

9

NZICC – Laneway View From Nelson St

17

Hobson St Hotel – Hobson St View

18

13/11/2015

10

Update on Other Development Highlights:

Auckland Atrium lDevelopment 

Auckland Atrium Development 

In August, SKYCITY announced plans to further enhance our Auckland property with a major upgrade of its main atrium

We have engaged internationally renowned architects YWS to design and deliver a world‐class entry experience

SKYCITY plans to spend ~$24m on the improvements, with the programme split into two stages to be completed by mid 2016

New main escalator providing more direct access to the main gaming floor. A second new escalator will link levels two and three

New wall claddings and light features

New entry experience to the main gaming 

Stage 1: to be completed by December 2015 Stage 2: to be completed by mid‐2016

Extension of the main gaming floor through a partial infill of the atrium space

Completion of entrance, foyer, flooring and wall treatments

Subsequently  development of a new 

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New entry experience to the main gaming floor

New bathrooms on the ground floor

‘Andy’s’ gourmet burger bar, adding to the choice of quality F&B offerings for customers

Subsequently, development of a new exciting “world‐class” Cantonese restaurant

13/11/2015

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Auckland Atrium Development – Main Foyer

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Auckland Atrium Development – Level 2 Infill

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Auckland Atrium Development– New Entrance to Main Gaming Floor 

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Update on Other 

Development Highlights:Adelaide Expansion Adelaide Expansion 

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Adelaide Expansion (1 of 2)

SKYCITY is well advanced in finalising the design of the expansion of the Adelaide Casino. The exterior of the development is well advanced and final submissions have been made to the Development Assessment Commissioner (DAC). The interior layout, design and presentation will continued to be finessed over the next 6 months

SKYCITY’s latest design has changed little from what was originally envisaged and includes:

• An ~80 room all suite boutique, “world‐class” hotel of 9 stories, with a roof‐top bar

• Horizon villas and suites for SKYCITY’s growing International Business

• An additional two signature restaurants – Cantonese and Japanese

• An expanded gaming podium, allowing for the staged rollout of the additional gaming product

SKYCITY currently expects the future construction and fit out costs of the expansion to be in the vicinity of 

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SKYCITY currently expects the future construction and fit out costs of the expansion to be in the vicinity of A$250m‐$270m. Additional costs will include:

• Finalisation of the lease terms of the site (to accommodate the extension) with the SA Government. SKYCITY estimates this to cost ~A$10‐12m

• Cost of additional gaming equipment, EGM licences, and IT and systems estimated at A$30‐$35m

Adelaide Expansion (2 of 2)

The final timing to commence works, is dependent on the finalisation of the site lease with the SA Government and coordination with the Government’s plans for the broader development of the Riverbank precinct, including the 1,500‐1,900 space car park, of which SKYCITY will lease 750

It is hoped that ground works will begin in the first‐half of next calendar year

Under the agreement with the SA Government, SKYCITY is required to complete its expansion by 30 June 2019, unless an extension is otherwise agreed between the parties

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Adelaide Expansion – At Night 

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Adelaide Expansion – Views Across Festival Plaza

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Adelaide Expansion – F&B / Plaza Activation

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Adelaide Expansion – King Suite

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Update on Other Highlights: 

Darwin Tax Rate Review

Darwin Tax Rate Review

The Northern Territory Government completed its gaming tax review for SKYCITY Darwin (as required under the Casino Operator’s Agreement) in July 2015

The gaming tax review followed the introduction of a new Community Benefit Levy (“CBL”) for casinos in g g ( )the Northern Territory of 10% of the gross profits of gaming machines. The CBL applies from 1 July 2015

The results of the review effectively eliminated any significant additional cost to the business as a result of the CBL. SKYCITY estimates that the net impact of the CBL after the offset of the lower gaming tax rates negotiated, is an increase in operating costs for SKYCITY Darwin of no more than $1.0m per annum

The new agreed lower tax rates will apply for the next ten years, providing SKYCITY with certainty as to gaming tax rates through until 30 June 2025

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The Northern Territory Government also confirmed that, during the ten year period through to 2025, any changes in the CBL rate, will result in an equal offsetting adjustment to the gaming tax rate for gaming machines, and that SKYCITY will be entitled to offset any licence or regulatory fee introduced against gaming tax otherwise payable, further extending tax rate certainty

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Funding Update 

Funding Update

SKYCITY is well placed to fund the outstanding capital expenditure of the NZICC and Hobson St Hotel developments, forecast at ~$580m, from future operating cash flows and existing debt facilities

Following the recent $125m NZ bond issue, SKYCITY now has over $300m of committed undrawn bank gfacilities – which together with cash flows over the next 3 years, provides ample headroom to fund the outstanding capital expenditure on the NZICC and Hobson St Hotel precinct developments 

As previously announced, as part of its longer‐term funding plan, SKYCITY continues to explore property‐related funding options, including the potential sale of the Federal St car park and securing external investors to fund and ultimately own the Hobson St Hotel development

• JLL have been appointed to secure external investors for the Hobson St Hotel 

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• Information Memorandum due to be released in November

Once the Adelaide expansion project (currently estimated at ~A$300m) is finalised SKYCITY will provide an update on its longer‐term funding plans

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Conclusions and Outlook

Conclusions and Outlook (1 of 2) 

The strong momentum from 2H15 continued through the first 4 months of FY16, with good revenue and EBITDA growth and further margin improvement

Management’s focus for the remainder of FY16 is to:

• Continue to optimise the operating performance of all businesses

• Continue to drive improved turnaround performance of the Adelaide Casino

• Commence construction on the NZICC development by Christmas

• Successfully activate the NZICC gaming concessions in Auckland in November

• Continue to deliver growth in IB with the opening of the “Grand Horizon Salons” on Level 7 of the Grand Hotel in Q4 FY16

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• Finalise plans and capex timing for the Adelaide expansion 

• Conclude external investment to fund the Hobson St Hotel 

• Finalise the group funding plan through to FY20 providing for completion of the major projects 

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Conclusions and Outlook (2 of 2) 

Based on current trading performance to 31 October 2015, management expects SKYCITY to deliver a pleasing first‐half result for FY16

In summary, SKYCITY is in great shape: 

• We are generating record revenue, experiencing strong growth and improving EBITDA margins We are generating record revenue, experiencing strong growth and improving EBITDA margins 

• We have $300m of undrawn committed bank facilities

• The licences of our Auckland and Adelaide properties have been extended to 2048 and 2035 respectively

• Our gaming tax rates have been locked in, in Auckland, Adelaide and Darwin for 7, 20 and 10 years respectively

• The concessions and additional gaming product negotiated with the NZ and SA Government’s position 

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SKYCITY for growth in these major markets for years to come

• The certainty these provide, allow us to invest with confidence, give back to our communities, and enable us to continue as an employer of choice

We look forward to updating shareholders further at our FY16 interim result on 11 February 2016 

Disclaimer

All information included in this presentation is provided as at 13 November 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. Investorsare encouraged to make an independent assessment of SKYCITY

For more information in connection with this presentation, please contact

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

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13/11/2015

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MEDIA RELEASE

13 November 2015

Positive results for SKYCITY following key strategic investments

The strong momentum from the 2015 financial year continues for SKYCITY Entertainment Group, with Chief Executive Nigel Morrison today announcing encouraging results across the company’s properties in New Zealand and Australia.

Speaking ahead of the company’s 21st Annual Meeting, Mr Morrison said SKYCITY was on track to deliver a pleasing first-half result for FY16.

SKYCITY will provide shareholders gathered at the SKYCITY Theatre today with a trading update for the first four months of the FY16 year, to 31 October 2015. Highlights include normalised revenue across the group up 11.1% to $373.2 million and normalised earnings before interest, tax, depreciation and amortisation (EBITDA) up 20.5% to $121.8m.

The results follow a record financial year for SKYCITY, exceeding $1 billion in revenue for the first time in FY15.

Mr Morrison says the pleasing results follow five years of sound planning and solid, strategic investment across the business, including significantly improving offerings for international VIP customers, a strong focus on premium dining experiences and a rejuvenation of main gaming areas across the properties.

“It is pleasing to see the returns from the key investments we’ve made, and we are seeing continued momentum with strong growth across the Group,” he says.

Normalised EBITDA margins across all SKYCITY properties have continued to improve, following a focus on good cost management and leverage from revenue growth.

SKYCITY Auckland, the company’s flagship property, continues to perform strongly, reporting growth across all business segments, with normalised revenues up 6.2% to $209.3m, and normalised EBITDA up 13.6% to $89.6m.

International Business continues to be a winner for the group, with turnover up 50.7% to $4.5 billion, including significant growth in Adelaide over the past four months. SKYCITY’s Queenstown property has also been buoyed by strong IB growth, following investments in that area.

SKYCITY Hamilton is also delivering improved revenues and earnings, with normalised revenue up 11.3% to $18.1m and normalised EBITDA up 27.9% to $7.8m.

Despite a continuation of soft local gaming in Adelaide, the significant IB activity in particular and the success of SKYCITY’s two new signature restaurants, Sean's Kitchen and Madame Hanoi, has helped deliver normalised revenue of A$70.3m – up 24.4% on the previous corresponding period.

Mr Morrison says significant progress has also been made on addressing the cost structure of the Adelaide operations over the past few months, which together with the growth in IB has delivered normalised EBITDA of $A14.7m, up 77.2%.

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SKYCITY Darwin continues to experience challenging trading conditions, underpinned by soft hotel occupancy and restaurant and bar revenue. However, International Business growth contributed to a satisfactory overall performance, with normalised revenue up 3.3% to A$52m and normalised EBITDA at A$16.6m, up 7.8%.

On 11 November SKYCITY and Fletcher Construction Ltd formally signed the building works contracts to build the New Zealand International Convention Centre (NZICC) and the Hobson St hotel. With formal Crown sign-off on the agreement, this activates the regulatory concessions granted in return for SKYCITY investing around $700m in this much-needed tourism infrastructure.

“The certainty this provides allows us to invest with confidence, to give back to our communities, and enables us to continue as an employer of choice,’’ says Mr Morrison.

“SKYCITY’s substantial investment in this project is going to significantly benefit Auckland and the wider New Zealand economy, with more than 1,000 jobs in the construction phase and around 1,140 hospitality jobs once the centre is up and running.”

It is expected that the NZICC and Hobson Street Hotel will be completed in the first quarter of 2019, with the official opening taking place in the second quarter.

The major upgrade of the atrium at SKYCITY’s Auckland property is well underway, with the first stage of the $24m programme, which includes a new entry experience to the main gaming floor and a gourmet burger bar, due for completion next month.

Mr Morrison says SKYCITY is also well advanced in finalising the design of the proposed expansion of the Adelaide Casino. Plans for the exterior of the development are well advanced and final submissions have been lodged with the Development Assessment Commissioner in South Australia. The interior layout, design and presentation will be finessed over the next six months.

The final timing on commencement of works is dependent on the finalisation of the site lease with the SA Government and coordination with the Government’s plans for the broader development of the Riverbank precinct. The likely total cost of the project will be around $A300m.

“SKYCITY is continuing to invest in our properties to ensure we provide a unique experience for our customers, ensuring they come back time and time again,’’ Mr Morrison says.

“We are a forward-thinking, dynamic, and innovative business. We can see many exciting opportunities to grow our business going forward and we are focused on delivering exceptional experiences for our customers.

“We are very pleased with the results we have shared today and we look forward to progressing with key projects over the next 12 months,” says Mr Morrison.

ENDS

Editor’s note: An updated version of the video ‘flythrough’ of the NZICC can be downloaded by clicking on this link.

For more information please contact:

Media Investors

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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