Opportunities for Growth

Nigel Morrison27 March 2012

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Introduction

SKYCITY Strategic Growth Projects

Auckland and the New Zealand International Convention Centre

Adelaide Casino ~ Transformation into a world class Integrated Entertainment Complex.

SkyCity Darwin ~ The Northern Territory’s Integrated Resort.

“Horizon” SkyCity's International VIP Offering.

Australian Corporate Activity and Industry Rationalisation.

Industry Landscape

Q and A

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Auckland and the New Zealand International Convention Centre

NZ International Convention Centre – Government announcement

For well over a decade the convention industry has recognised the need for a national convention centre, with numerous reports and studies having been commissioned, including some by the Auckland City Council

In July 2010 the MED called for expressions of interest for delivering the NZICC. This expression of interest was open to all parties.

SKYCITY was selected by the NZ Government as its preferred developer of a 3,500 seat New Zealand International Convention Centre on 12 June 2011

SKYCITY’s proposed 3,500-seat New Zealand International Convention Centre will give New Zealand an opportunity to compete in a significant growth market

Allow Auckland to compete with other cities in Australia and South East Asia

Create around 1,000 construction jobs during its development

Once fully operational, create around 800 new jobs and

Inject an estimated $90 million a year of extra spending by international visitors into the NZ economy

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Benefits for Auckland and New Zealand

The New Zealand International Convention Centre will generate significant economic benefits for Auckland and New Zealand

183,000 expected total delegates to Auckland generating approximately 350,000 delegate days (Source: Horwath)

These delegates will generate an additional 101,000 visitor nights for Auckland.

Convention visitors spend more than $650 per night in Auckland, around double the average visitor spend

Auckland International airport will benefit from the expected 28,000 international arrivals annually

NZICC is a critical piece of infrastructure to create a step-change in the conventions segment and act as a catalyst for other tourism infrastructure growth including additional hotels, restaurants, bars, retail and attractions.

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Benefits for Auckland and New Zealand, cont

The development will be an important step towards making Auckland an events capital and a visitor destination (consistent with ATEED’s strategy and Tourism NZ’s strategy)

Bring conferences to Auckland that exceed 1,000 delegates, which currently do not come to NZ

Currently New Zealand attracts just 30 of the world’s 8000 major conferences each year

New NZICC will ensure Auckland can compete against Australian cities in the international convention market

Consistent with the Mayor’s vision for Auckland being the world’s most liveable city and “not second cousins to Melbourne and Sydney” (Mayor Len Brown, Economic Forum, 4 July 2011)

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NZICC Location

SKYCITY’s location for the NZICC is a 3.5 acre site bordered by Hobson, Nelson and Wellesley Streets, adjacent to Television NZ

The site is located in the CBD within easy walking distance to other related infrastructure

Close proximity to:

3,500 four and five star hotel rooms

The Edge assets, including Aotea Centre and Civic Theatre

The Universities precinct, Art Gallery and Library

Located with easy access to “Spaghetti Junction” minimising any transport-related issues

Situated on the edge of a development zone (Rhubarb Lane, Victoria Quarter)

a catalyst for re-development of the CBD

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The NZICC Site and Location.

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SKYCITY’s Proposal

SKYCITY is prepared to fund the full development costs – an estimated $350m

Negotiations continue with the New Zealand Government including:

an early renewal of the Auckland Casino licence beyond 2021

an increase in gaming product to meet demand and provide for future growth

– Tables games

– Automated Tables

– And Gaming machines

changes to gaming regulations which increase the efficiency and attractiveness of the offering we are able to provide our customers.

Iconic Architecture.

Multifunctional Exhibition space…..

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Prevalence of smoking, hazardous drinking and problem gambling

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19.9%

17.7%

0.4%

Current smokers Hazardous drinking Problem gambling

2006/07 population prevalence

Source: Ministry of Health: 2006/07 New Zealand Health Survey

Problem gambling prevalence is declining

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3.3%

1.3%1.2%

0.4%

1991 1999 2002/03 2006/07

Problem gambling prevalence – all adult New Zealanders

Source: Ministry of Health: 2006/07 New Zealand Health Survey

Host responsibility: casinos vs pubs & clubs

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SKYCITY Auckland Pubs & clubs

Provision of host responsibility information for customers (13 languages)

Dedicated team of host responsibility staff

Dedicated team of government gambling inspectors withexclusive access to CCTV footage

NZQA-approved host responsibility training for all staff

Specialist staff training on suspicious transactions / loansharking

Mandatory requirements to prevent and minimise staffproblem gambling harm

Six monthly reporting to Gambling Commission on hostresponsibility performance

Extensive data collection and analysis of host responsibilityperformance

28+ indicators of problem gambling

Auditable 'gambler of interest' files

Auditable standard operating procedures

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Adelaide Casino ~Transformation into a World Class Integrated Entertainment Complex.

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Adelaide and the Riverbank Precinct Development

State Government released its Draft Master Plan for the redevelopment of Adelaide’s Riverbank Precinct in October 2011

We are proposing to transform the Adelaide Casino into a World Class Integrated Entertainment facility that will feature:

Boutique 6 star hotel

signature international class restaurants and bars

a spa and roof top pool lounge precinct

International “Horizon” and VIP gaming suites and salons

Working closely with the South Australian Casino Task Force re the future regulatory framework for the Adelaide Casino, seeking:

an expansion in gaming product;

Tax rates and certainty – extension of exclusivity;

a ‘level playing field’ in respect of casino regulation compared to other Australian jurisdictions

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Adelaide Riverbank Precinct Investment

The SA Government has already committed A$1 Billion within the Riverbank Precinct:

$350m to the extension of the Adelaide Convention Centre - Stage one due by May 2014

$535m to the redevelopment of the Adelaide Oval - scheduled for completion by February 2014, providing a seating capacity of 50,000

$44m towards Riverbank infrastructure (primarily the new footbridge)

The draft Master Plan also includes the adjacent Hajek Plaza being redeveloped into a new ‘Festival Square’ - the city’s future major public meeting place, featuring cafes, restaurants and extensive car parking

The SA Centre for Economic Studies has forecast total annual attendance to the precinct to increase from ~400,000 currently to ~1.4 million following the redevelopment

Adelaide Casino will be a major beneficiary of the significant developments and investment taking place in the neighbouring precinct

significant increase in foot traffic / visitation

positioned in the heart of ‘New Adelaide’

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SA Government Adelaide Riverbank Precinct Master plan

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Adelaide Oval Redevelopment Concept

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Adelaide Convention Centre Expansion

Insert Image

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Adelaide Riverbank Development Concept

Preliminary Concept Drawing

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Adelaide Riverbank Development Concept

Preliminary Concept Drawing

Hotel Reception, Spa and Signature Restaurants.

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“Horizon” VIP Villas and Salons.

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SkyCity Darwin ~The Northern Territory's Integrated Resort.

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Darwin’s Lagoon Resort Development

The Lagoon Resort is on track to open in mid July 2012 for the Northern Territory dry season and major events

25 luxury, 5 star poolside villas luxury villas

two dedicated private VIP “Horizon” gaming pavilions with adjacent VIP villas

Massive (2,750 sq metre) heated lagoon pool & sandy beaches

day spa/fitness centre complex

2 bars including a swim-up pool bar, plus a poolside restaurant

Strategic location close to Asia - potential for significant International business ~ Singapore / Indonesia.

NT Govt now secured Business Class International air flights from Singapore to Darwin.

Inpex LNG Platform and pipeline ~ $32 billion.

The Lagoon Resort will significantly enhance SKYCITY Darwin’s property position as the premier resort and entertainment destination in the Northern Territory.

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Darwin Lagoon Resort Development

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“Horizon” SkyCity's International VIP Offering.

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Horizon Suites and Salons

New high-end VIP gaming facilities Horizon Suites and Salons opened in July 2011

four new world-class international gaming salons (12 tables)

co-located with four new luxurious hotel suites with interconnecting rooms

SKYCITY Auckland now have a quality product to market internationally and can accommodate 4 times as many VIP groups as we could in our previous International VIP room

Horizon has been very well received by both existing and new international VIP players

International business turnover for 1H12 of $1.4 billion, up 26% on pcp and 195% against 1H10

turnover for the FY12 period to 12 February 2012 is up 45% on pcp

SKYCITY plans to roll the ‘Horizon’ brand out to the other SKYCITY properties in Adelaide and Darwin

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Horizon

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Horizon Suites

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‘Eight’ VIP Gaming Lounge

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Australian Corporate Activity and Industry Rationalisation.

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Australasian Casino Landscape

Perth

Darwin

Alice Springs

Adelaide

Cairns(1)

Townsville

Brisbane

Auckland

Hamilton

Christchurch(2)

Dunedin(4)

SKYCITY Queenstown(3)

Launceston

Hobart

Gold Coast

Melbourne

Sydney

Canberra

Western Australia

Northern Territory

South Australia

Queensland

New South Wales

Victoria

New Zealand

Tasmania

Crown Limited

Echo Entertainment Group Limited

SKYCITY Entertainment Group Limited

Casinos Austria Group

Federal Group Lasseters International Holdings Limited

Dunedin Casinos Limited

Lasseters Queenstown

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(1) Reef Hotel Casino located in Cairns is owned by ASX listed Reef Casino Trust (ASX: RCT), in which Casinos Austria Group has 42% interest; management company is 50/50 JV between Casinos

Austria and Accor

(2) Christchurch Casino is owned by Christchurch Casinos Limited, in which SKYCITY Entertainment Group Limited has 50% interest

(3) SKYCITY Queenstown Casino is owned by Queenstown Casinos Limited, in which SKYCITY Entertainment Group Limited has 60% interest

(4) Through Christchurch Casinos Limited, SKYCITY Entertainment Group Limited has 15% interest in Dunedin Casino Limited

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Thank you

…..and Q&A.