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VRL PresentationVRL Presentation

30 October 2012

VRL GROUPTotal Shareholder Return and Ordinary share price 5 year history

TSR (A$)Share Price (A$)

Share Price - Ordinary Total Shareholder Return (on $1,000 invested on 1 July 2007)

2 000

2,500

3.5

4.0

( $)Share Price (A$)

1,500

2,000

2.5

3.0

1,0001.5

2.0

500

0.5

1.0

Market capitalisation as at 26 October 2012 was $552 million

00.0FY2008 FY2009 FY2010 FY2011 FY2012 Sep 2012

2

VRL GROUPFirst quarter trading update

• Group ahead on prior year

• Theme Parks good weather and ticket strategy driving revenues

• Film Distribution stronger first quarter product, which will partially offset potentially weaker second quarteroffset potentially weaker second quarter

• Exhibition box office is down compared to prior year, in line with industry

• Corporate cost reductions continue to be realised

3

VRL GROUPOutlook

• Christmas and New Year trading key for Theme Parks

• expect to exceed FY2012 results

• Exhibition product weighted to second half FY2013

t f ll lt i li ith FY2012• expect full year result in line with FY2012

• Film Distribution challenging environment

• likely to be reduction on FY2012 results as no Red Dog impact• likely to be reduction on FY2012 results as no Red Dog impact

• Wet’n’Wild Las Vegas – open May 2013, minimal impact FY2013

• Hainan R&F Ocean Paradise minimal impact FY2013• Hainan R&F Ocean Paradise minimal impact FY2013

• Corporate costs lower but capital spend on Wet’n’Wild Sydney will reduce interest income

• Group forecast NPAT $55 million - $59 million

4

VRL GrouppFinancial summary

FY2012 FY2011 FY2010 FY2009

Earnings per share (before material items and discontinued operations / ordinary shares) (cents)(1)

34.4 20.1 18.5 11.2

Dividends per share 22 0 16 0 6 0 12 75

p(ordinary shares) (cents)(2) 22.0 16.0 6.0 12.75

Net Profit After Tax - operating(before material items, discontinued operations) $52.8m $31.3m $35.0m $25.1m

EBITDAEBITDA(before material items, discontinued operations) $154.7m $140.5m $147.0m $127.9m

Net Cashflow from Operating Activities(3)

$125.9m $149.8m $206.0 $187.6m

Net on balance sheet debt (4)$254.0m $53.5m $827.1m $899.9m

Note 1: Diluted EPS for FY2012, Total EPS up to FY2011Note 2: Excludes distributions and special dividends.Note 3: FY2011 and prior years includes operating cash flows from discontinued operationsNote 4: Shareholder distribution of $151million paid in July 2011, comprising $30 million capital reduction and $121 million fully franked distribution

5

VRL GROUPResults by Division

Operating Results Reported EBIT Reported EBITDA

30 J 30 J 30 J 30 J 30 J 30 JFor the year ended

30 Jun 2012$’m

30 Jun 2011$’m

30 Jun 2012$’m

30 Jun 2011$’m

30 Jun 2012$’m

30 Jun 2011$’m

THEME PARKS : GOLD COAST 29.3 33.2 51.5 54.3 82.0 82.8THEME PARKS : GOLD COAST 29.3 33.2 51.5 54.3 82.0 82.8

THEME PARKS : US WATER PARKS (0.8) (2.1) 2.3 1.2 5.4 4.4

CINEMA EXHIBITION : AUSTRALIA 31 5 27 6 35 6 33 1 48 1 44 9CINEMA EXHIBITION : AUSTRALIA 31.5 27.6 35.6 33.1 48.1 44.9

CINEMA EXHIBITION : OTHER 2.5 0.7 2.5 0.9 3.0 1.5

FILM DISTRIBUTION 41 5 35 5 48 0 43 6 50 8 50 5FILM DISTRIBUTION 41.5 35.5 48.0 43.6 50.8 50.5

CORPORATE/OTHER (29.0) (47.8) (37.2) (46.9) (34.6) (43.6)

REPORTED RESULTS 75.0 47.1 102.7 86.2 154.7 140.5

Note: Excludes Material items and Discontinued operations, please refer to page 10 in the ASX Appendix 4E for further details.

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VRL GROUPOperating Cashflow

M tFor the year ended 30 June 2012

EBITDA$’m

Movement in Working

Capital$’m

Interest/Tax$’m

Operating Cash Flow

$’m

Capital Expenditure

$’m

Free Cash Flow

$’m

THEME PARKS 87.4 3.4 (22.2) 68.6 45.2 23.4

CINEMA EXHIBITION 51.1 2.8 (4.0) 49.9 11.9 38.0( )

FILM DISTRIBUTION 50.8 (6.2) (6.5) 38.1 2.1 36.0

CORPORATE/OTHER (34.6) (8.4) 12.3 (30.7) 9.1 (39.8)

TOTAL 154.7 (8.4) (20.4) 125.9 68.3 57.6

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VRL GROUPGroup Debt

ON BALANCE SHEET Facility Expiry Calendar Year

Total Debt Drawn ($m)

30 Jun 2012

Total Debt Drawn ($m)

30 Jun 2011

THEME PARKS : GOLD COAST 2nd half 2014 254.4 273.9

THEME PARKS : US WATER PARKS 1st half 2029/1st half 2015 35.9 36.1

CINEMA EXHIBTION : AUSTRALIA 2nd half 2015 62.8 66.2

FILM DISTRIBUTION July 2013 94.4 108.8

CORPORATE / OTHER (1)

1st half 2015 - 0.2

TOTAL ON BALANCE SHEET DEBT 447.5 485.2

CASH ON HAND (2)

(193.5) (431.7)

NET DEBT ON BALANCE SHEET 254.0 53.5NET DEBT ON BALANCE SHEET 254.0 53.5Note 1: This $100 million facility is currently undrawn. Note 2: Major non-operating cash outflows for year included $151.5m shareholder distribution and $62.1m tax payment resulting from the sale of Austereo

8

VRL GROUPGroup Debt

ON BALANCE SHEET DEBT – CURRENT 30 June 2012($m) ($m)

THEME PARKS 23.3

CINEMA EXHIBITION : AUSTRALIA 4.8

FILM DISTRIBUTION 6.96.9

CORPORATE/OTHER (1)

-

Total Current Debt on Balance Sheet 35.0

30 J 2012ON BALANCE SHEET DEBT – NON CURRENT 30 June 2012($m)

THEME PARKS 267.0

CINEMA EXHIBITION : AUSTRALIA 58.0

FILM DISTRIBUTION 87.5

CORPORATE/OTHER (1)

-

Total Non Current Debt on Balance Sheet 412.5Note 1: This $100 million facility is currently undrawn

9

VRL GROUPGroup Debt

DEBT AND INTEREST COVER BY DIVISION JUNE 2012 Net Debt/ EBITDA EBITDA/NetDEBT AND INTEREST COVER BY DIVISION – JUNE 2012 Net Debt/ EBITDA (times)

EBITDA/Net Interest (times)

THEME PARKS : GOLD COAST 3.0 3.7

CINEMA EXHIBITION : AUSTRALIA 0.8 11.7

FILM DISTRIBUTION 1.5 7.8

TOTAL VRL GROUP 1.6 5.6

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THEME PARKS

THEME PARKSFirst quarter trading update

Total attendance and ticket sales up on prior year• Total attendance and ticket sales up on prior year

• Total revenue up 6% for first quarter

• Weather significantly improved on prior year Gold Coast• Weather significantly improved on prior year. Gold Coast visitations up, 19% increase in passengers in September month

• Ticketing strategy continues focus on yield and repeat visitations

• VIP Gold Halloween and White Christmas products selling• VIP Gold, Halloween and White Christmas products selling well

• Sea World Resort continues to perform well

• Expect to outperform FY2012 NBPT, weather permitting

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THEME PARKSNew attractions for FY2013

Warner Bros. Movie World

• Justice League opened September 2012Justice League opened September 2012

Sea World

• Dinosaur Island opened July 2012Dinosaur Island opened July 2012

• Seal Habitat opening December 2012

Wet’n’WildWet n Wild

• Constrictor opened September 2012

FY2013 forecast capital spend $25-30 millionFY2013 forecast capital spend $25 30 million

13

THEME PARKSOutlook

• FY2013 result dependent on solid Christmas and New Year trading

• Wet’n’Wild Sydney remains on budget ($110m-$120m) and on schedule. FY2013 forecast capital spend $95 million, FY2014 $10m-$15m

• Wet’n’Wild Las Vegas small impact FY2013 Anticipated ROI on US$12• Wet n Wild Las Vegas small impact FY2013. Anticipated ROI on US$12 million investment similar to Sydney – 12% to 15% FY2014 onwards

• Hainan R&F Ocean Paradise – marine and water park

• 240 acres, RMB 3.5 billion (approximately A$550 million)

• Open mid 2015, over 2.5 million visitors

• Circa $1 million profit in FY2014 and FY2015 from consulting fees

• 20 year exclusive operating agreement, low single digit millions initial years with incremental incentive fees if park outperformswith incremental incentive fees if park outperforms

• Actively looking for other opportunities, a potential park inBeijing signed but awaiting Government funding and approval

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THEME PARKSHainan R&F Ocean Paradise master plan

15

THEME PARKSWet’n’Wild Las Vegas

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THEME PARKSSummary of Results

Reported EBITDA Operating ResultsReported EBITDA Operating Results

RESULTS ANALYSISFor the year ended

30 June 2012 ($m)

30 June 2011($m)

30 June 2012($m)

30 June 2011($m)

Gold Coast Theme Parks 82.0 82.8 29.3 33.2

USA Water Parks 5.4 4.4 (0.8) (2.1)

TOTAL 87 4 87 2 28 5 31 1TOTAL 87.4 87.2 28.5 31.1

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THEME PARKSGold Coast - Results

30 June 2012 30 June 2011For the year ended

30 June 2012(m)

30 June 2011(m)

TOTAL ATTENDANCE (m) 4.6 4.9

SALES REVENUE $258 1 $259 7SALES REVENUE $258.1 $259.7

OTHER REVENUE $1.0 $0.6

TOTAL EXPENSES $177.1 $177.5

EBITDA $82.0 $82.8

DEPRECIATION AND AMORTISATION (1)

$30.5 $28.5

INTEREST EXPENSE (NET) $22.2 $21.1INTEREST EXPENSE (NET) $22.2 $21.1

NET PROFIT BEFORE TAX $29.3 $33.2

TOTAL CAPEX $42.6 $36.2

Note 1: Increase in depreciation and amortisation expense as a result of charges from capital investment made in new attractions to drive attendance.

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THEME PARKSUSA Water Parks - Results

F th d d 30 June 2012 30 June 2011For the year ended 30 June 2012(m)

30 June 2011(m)

TOTAL ATTENDANCE (m) 0.8 0.7

SALES REVENUE $19 6 $19 5SALES REVENUE $19.6 $19.5


EBITDA $5.4 $4.4

DEPRECIATION AND AMORTISATION $3.1 $3.2

INTEREST EXPENSE (NET) $3.1 $3.3

NET PROFIT BEFORE TAX $(0 8) $(2 1)NET PROFIT BEFORE TAX $(0.8) $(2.1)


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CINEMA EXHIBITION

CINEMA EXHIBITIONAustralia – First quarter trading update

• Village/Event circuit performed slightly ahead of industry box office, g p g y y ,down 6.5%

• Industry box office down 8.5%

• Key product during quarter less impactful

• FY2012 1st quarter 10 films over $10 million box officeFY2012 1 quarter 10 films over $10 million box office

• FY2013 1st quarter 8 films over $10 million box office

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CINEMA EXHIBITIONOutlook

Refurbishments • Refurbished Southland, VIC opening November 2012• Focus on additional Gold Class and $max• Forecast capital expenditure $15-20 million FY2013Forecast capital expenditure $15 20 million FY2013

Outstanding line-up of new releases• Bond: Skyfall• The Hobbit: An unexpected journey• Gangster Squad• Gangster Squad• The Great Gatsby

International• Gold Class USA remains challenging as we transition to

a new business plan including new sites in Houstona new business plan including new sites in Houstonand Beverly Hills 22

CINEMA EXHIBITIONResults

For the year ended 30 June 2012 30 June 2011For the year ended (m) (m)

TOTAL PAID ADMISSIONS - AUSTRALIA 25.7 25.6

SALES REVENUE $232.5 $223.4$ $

OTHER REVENUE $18.8 $19.0


EBITDA $48 1 $44 9EBITDA $48.1 $44.9

EBITDA – EXHIBITION OTHER (note 1) $3.0 $1.5

EBITDA $51.1 $46.4

DEPRECIATION AND AMORTISATION $13 0 $12 4DEPRECIATION AND AMORTISATION $13.0 $12.4


NET PROFIT BEFORE TAX $34.0 $28.3


Note 1: Exhibition other includes the overseas exhibition territories (USA, Singapore and UK) and the Intencity games business.

23

FILM DISTRIBUTION

FILM DISTRIBUTIONFirst quarter trading update

• Year to date up on prior year due to success of The Dark Knight Rises and Magic Mike

• Australian titles released to date did not perform at same level as Red Dog. Goddess releasing March 2013

• Total DVD retail market was off 5% in first quarter, although the new release movie category is positive

• Film Distribution DVD business above prior year driven by Hunger Games, Dark Shadows and The Lucky One

R fi f di i i l d bt d• Refinance of divisional debt commenced

25

FILM DISTRIBUTIONOutlook

• Strength in market share and output deals continues to provide quality l t t tlong term content:

• Warner Bros. – 5 year extension• Village Roadshow Pictures• Village Roadshow Pictures• Lionsgate, The Weinstein Company, Relativity• ABC, BBC – 5 year extension• ITV, Channel 9, Fremantle Media• Multiple independents

Fi li F t l ti ti• Finalise Foxtel negotiations

• Upcoming titles:

• The Hobbit: An unexpected journey• Gangster Squad• Hangover 3Hangover 3• The Great Gatsby 26

FILM DISTRIBUTIONResults

30 June 2012 30 June 2011For the year ended

30 June 2012(m)

30 June 2011(m)

SALES REVENUE $387.3 $389.9

OTHER REVENUE $1 2 $2 0OTHER REVENUE $1.2 $2.0


EBITDA $50.8 $50.5

DEPRECIATION AND AMORTISATION (1) $2.8 $6.9


NET PROFIT BEFORE TAX $41 5 $35 5NET PROFIT BEFORE TAX $41.5 $35.5

Note 1: The reduction in depreciation and amortisation is due to the end of life of the fair value film royalty recognised on consolidation of the remaining 50% of this entity

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FILM PRODUCTION &FILM PRODUCTION & MUSIC

FILM PRODUCTION & MUSICRestructure

• US$275 million new long term mezzanine debt and equity deal

• Increase in film equity base, access to debt facility• Aim to increase output of films from 3-4 to 6-8 per annum• Generate producer fee cashflow and increase risk diversityGenerate producer fee cashflow and increase risk diversity• Increase numbers of films for Australian distribution

• Simplification of equity structure, VRL ownershipp q y , p

• 47.6% of ordinary equity• US$100 million redeemable non-voting shares

Subject to film performance criteria• 5% cash interest plus 9% accruing interest• 2018 maturity date, amortisation from 2015• Ranks alongside new monies (except in default)

• Value of redeemable shares at par 66cps (VRL shares) plus 47.6% ordinary equityordinary equity

• Book value of asset is nil due to equity accounting 29

FILM PRODUCTION & MUSIC

As at 30 June 2012

• Cash on hand US$113 million

Film ProductionFilm Production

• Level of bank debt drawn US$870 million

• Moody’s credit rating of the debt facility is A2 based upon a maximum 75% advance ratio of released films

B k f ilit tl b i fi d• Bank facility currently being refinanced

Music

• Level of bank debt drawn US$85 million

• Secured against music library; valued annually

30

FILM PRODUCTION & MUSICUpcoming Releases

• Gangster Squad – starring Sean Penn, Ryan Gosling, Emma Stone and Josh Brolin

• The Great Gatsby – starring Leonardo DiCaprio and directed by Baz Luhrmann

• All You Need Is Kill – starring Tom Cruise and Emily Blunt, directed by Doug Liman

• Lego – directed by Phil Lord and Chris Miller

• Fury Road (Mad Max) – starring Tom Hardy and Charlize Theron and directed by George Miller

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FILM PRODUCTION & MUSICConcord Music & VREG Asia

• Concord Music

• Follow up recording of 2011 Best New Artist Grammy winner p g yEsperanza Spalding, Radio Music Society

• New releases from diverse array of artists coming this fall

• VREG Asia

• Upcoming titles include:Upcoming titles include:

• Journey To The West

• Man Of Tai Chi

32

CORPORATE

CORPORATECORPORATE

• Corporate Governance CommitteeCorporate Governance Committee

• Newly formed, members all independent directors

• Cost ReductionsCost Reductions

• Corporate overhead costs down

• Ongoing cost reviewOngoing cost review

• Development Costs

• Development costs of $3 0m relating to Wet’n’Wild Sydney and ChinaDevelopment costs of $3.0m relating to Wet n Wild Sydney and China Theme Parks growth initiatives

• Hainan Island China consulting fees will offset some development costs FY2014 d b dFY2014 and beyond

34

VRL GROUPSummary

In the business of entertainment• People seeking low cost “escapes” from the worries of the world

• People want to go out

• Theme Parks

• New attractions positioned strong first quarter

• Expect outstanding Christmas and New Year

• Weather – long range predictions/law of averages/prayer

• Cinema Exhibition

• Strong product

• Capitalise on roll out of Gold Class and $max

• Film Distribution and Film Production & Music

St tf li f d t/ d l• Strong portfolio of product/new deals

• Building library value/oil in the ground35

VRL GROUPSummary

Smart growth, generating cash flow• Theme Parks

• Sydney – only major theme park, giant population base

• Las Vegas – 51% in partnership with Las Vegas based investors including Andre Agassi and Steffi Graf

• China first management deal under construction• China – first management deal under construction

• Cinema Exhibition

• Upgrading selected Australian sitesUpgrading selected Australian sites

• Identified a select number of high profile new potential locations

• Gold Class USA remains a long term buildg

• Film Production & Music

• Increase output of films from 3-4 to 6-8 per annum

• Digital opportunities 36

VRL GROUPDisclaimer

Non – IFRS Financial InformationThe VRL group results are prepared under Australian Accounting Standards and also complyThe VRL group results are prepared under Australian Accounting Standards, and also comply with International Financial Reporting Standards (“IFRS”). This presentation includes certain non-IFRS measures including EBITDA and operating profit excluding material items of income and expense and discontinued operations. These measures are used internally by management to assess the performance of the business make decisions on the allocation of resources andassess the performance of the business, make decisions on the allocation of resources and assess operational performance. Non-IFRS measures have not been subject to audit or review, however all items used to calculate these non-IFRS measures have been derived from information used in the preparation of the audited or audit-reviewed (as applicable) financial statementsstatements.

Included in the ASX Appendix 4E (page 10) is a Reconciliation of Results which provides further detail on the Non-IFRS financial information contained in this presentation.

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