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1 4 December 2013 ASX Market Announcements Australian Stock Exchange Exchange Centre Level 6 20 Bridge Street Sydney NSW 2000 Australia RE: INVESTOR UPDATE AUCKLAND & THE NZICC AND ADELAIDE TRANSFORMATION Following the passing of enabling legislation in New Zealand and South Australia and concluding of agreements with Governments in those respective jurisdictions, extending licence terms, providing for expansion and various operating concessions, SKYCITY today released the attached Investor Update titled Auckland and the NZICC and Adelaide Transformation 4 December Over the next weeks the SKYCITY CEO, Nigel Morrison and CFO, James Burrell will be presenting this update to investors: - in Auckland, Wednesday 4 December co-ordinated by Marcus Curley, Goldman Sachs - in Adelaide, Friday 6 December co-ordinated by Campbell Taylor, Taylor Collison - in Melbourne, Monday 9 December co-ordinated by Mark Bryan, Merrill Lynch - in Sydney, Tuesday 10 December co-ordinated by Mark Bryan, Merrill Lynch Should any investors who have not been contacted by the above wish to participate in an update on these developments they should contact: - Ms Anna McKinnon, PA to the CEO on or anna.mckinnon@skycity.co.nz or - Ms Anne-Marie Cleaver, PA to the CFO on or anne-marie.cleaver@skycity.co.nz Yours faithfully Peter Treacy Company Secretary SKYCITY Entertainment Group Limited Federal House 86 Federal Street PO Box 6443 Wellesley Street Auckland New Zealand Telephone +64 (0) Facsimile +64 (0)

2 SKYCITY Entertainment Group Limited Investor Update Auckland and the NZICC & Adelaide Transformation 4 December 2013

3 Investor Update Building a Platform for Growth 2 Auckland and the NZICC 4 Adelaide Transformation 16 Capex and Funding 31 Appendices

4 Building a Platform for Growth

5 Building a Platform for Growth New Zealand International Convention Centre (NZICC) November 2013: the NZICC Act was passed by Parliament, giving effect to the NZICC Project and Licensing Agreement SKYCITY to invest $402 million to design, build, own and operate the NZICC Adelaide Redevelopment October 2013: final agreements were signed with the South Australian Government on the detailed terms of the revised regulatory and taxation environment for the Adelaide Casino SKYCITY to invest A$350m to transform the Adelaide Casino into a world-class integrated entertainment complex Gaming licences are secure for the long-term Our fundamental objective with all our key licences is to ensure they are secure for the long-term, to enable us to invest with certainty and realise the returns those investments will deliver Importantly, the NZICC and Adelaide transactions will ensure that all of SKYCITY s key gaming licences are secure for the long-term: Auckland s licence is being extended to 2048; Adelaide s exclusivity is being extended from 2015 to 2035 (licence runs to 2085); and Darwin s exclusive licence is already secured to

6 Auckland and the NZICC Agreement signed with NZ Government, 5 July 2013 Legislation passed by NZ Parliament, 12 November 2013

7 Auckland City a Growth Story Population growth Auckland has a metropolitan population of approximately 1.5 million people Auckland is expecting substantial population growth from immigration and natural population increase and is set to grow by 26% to an estimated 1.9 million people by 2031 *1 Auckland is an ethnically diverse city with almost 40% of Aucklanders not born in New Zealand Favourable demographics Approx 20% of the Auckland population (300,000) is of Asian ethnicity: principally from China, India and Korea this has increased from approximately 13% of the population in 2001 Asian population continues growing It is projected that the number of people of Asian origin in Auckland will rise from c.300,000 today to 470,000 in 2021 *2 This represents an increase of 57% per cent and will account for almost 30% of all Aucklanders in 2021 *2 Infrastructure City Rail Link ($2.9bn investment) Auckland Council and the NZ Government has committed to building a City Rail Link in Auckland, which is planned to have a stop at the Albert Street entrance to SKYCITY (direct access into the Grand Hotel) Work is scheduled to commence in 2015 and be open by 2021 (Council trying to make this sooner) *1 Auckland Regional Growth Strategy / Statistics New Zealand *2 Auckland City Council 5

8 Auckland an International Destination Auckland is a growing international destination Daily flights from key Asian cities continue to improve Daily flights to/from KL, Malaysia just announced (increased from 6 days/week) Majority of airlines are full service Overseas visitor arrivals driven by China *1 12-month rolling visitor arrivals to October have increased 5.8% on the prior year China now represents the second largest tourist market into NZ bigger than the UK and US second only to Australia 235,000 Chinese visitors in the year to October 2013, up 22% on prior year Destination Shanghai Hongkong Guangzhou Hongkong Malaysia Singapore Thailand Korea (Seoul) Frequency Daily Daily Daily Daily 2 x Daily Tue, Wed, Fri, Sat, Sun Tue, Thur, Sat, Sun *1 Infometrics data, 22 November

9 NZIER a Positive Outlook for New Zealand The November 2013 NZIER Quarterly Predictions *1 reflect a positive outlook for New Zealand for 2014 The New Zealand economy will grow strongly in 2014 It will be the best performance since 2007, before the recession. It has taken seven years to recover from one of the deepest and longest recessions on record Household spending is leading the charge, boosted by the Canterbury earthquake recovery and a rebound from last summer s drought There are some risks: the global economy is still fragile and a strong rising Auckland housing market could derail economic and financial stability (see Chart) Interest rate hikes on the side-line for now. The RBNZ is loath to raise interest rates to control the Auckland housing market, because inflation is still low and the recovery is still in its early stages Ministry of Business, Innovation and Employment forecast in June 2013 that the unemployment rate is expected to trend down slowly, falling to 6.0% and declining by Q presents business leaders with a positive economic backdrop. Their attention can shift from hunkering down to strategy and growth *1 Source: New Zealand Institute of Economic Research (Inc) Media release, 27 November

10 Auckland the EGMs Market Opportunity Auckland EGMs Market The SKYCITY Casino annual EGM revenues of c.$213m currently represent 47% of the wider Auckland EGM market The non-casino market size is c.$240m revenue annually This c.$450m market is within a c.30 kms distance from SKYCITY The sinking lid policy in the Pubs and Clubs has reduced their number of machines by 5% from c.4,200 in December 2011 to c.4,000 today SKYCITY has gradually been increasing its share of this $450m market. Future penetration and market share growth will be achievable through: more car parking, so that all customers can be assured of a parking space; greater differentiation of the Casino gaming product, compared to the Pubs and Clubs: Ticket in Ticket Out unique to Casino more EGMs in the Casino fully automated MTGMs effectively a new product category, unique to Casino Source: Dept of Internal Affairs, SKYCITY data 8

11 What has constrained growth at SKYCITY Auckland? The key issues that have constrained revenue growth in Auckland in recent years have included: Car Parking The Auckland property has only 2,000 car parks beneath the main site. We have calculated we have a need for 3,500 car spaces. With a high level of customer visitation by car, the 2,000 car parks fill at peak and promotional times. This results in customer dissatisfaction, foregone visitation and lost revenue An inferior Main Floor EGM Player experience There is a lack of differentiation and inferior EGM player experience on the main public gaming floor 1,347 EGMs without TITO resulting in coin out/coin in and buckets when moving EGMs only 300 EGMs with TITO primarily in VIP rooms $20 cap on bill acceptors throughout the property MTGMs included in EGM cap MTGMs (fully automated table games eg. Vegas Star product) are categorised as EGMs and included in EGM cap of 1,647 machines. So to introduce MTGMs, we currently need to sacrifice EGMs At peak periods and promotional times, capped EGMs of 1,647 are at full capacity Constrained to offering Casino gaming within a red line bounded to the core property Given the currently approved 'red line', casino gaming may only be offered within limited space in the main site. There is no opportunity to offer casino gaming in other real estate owned by SKYCITY 9

12 Addressing these Issues the NZICC Agreement Many of the key negotiated outcomes of the NZICC Agreement go to addressing these issues: More car parking The NZICC development will deliver a minimum of 780 car parking spaces, with an objective of delivering an additional 1,500 resulting in a total of 3,500 under cover car park spaces Enhanced and differentiated player experience All EGMs and MTGMs will be permitted to offer Ticket In Ticket Out (TITO) and card-based cashless gaming, eliminating the need for coin and buckets Additionally, up to 359 (17%) gaming machines and electronic table games (in total numbering 2,117) will be permitted to accept $50 or $100 bank notes (increased from $20), but only in VIP (restricted) areas Increase in the Cap on gaming product numbers Current cap on EGMs of 1,647 EGMs increased by 230 to 1,877 (+14%) A new category of MTGMs (Vegas Star) providing for up to 240 new terminals (similar WPUPD to EGMs) An increase of 40 table games from 110 to 150 (+36%) Overall, an effective increase of 30% in available player spaces, positioning the property for growth Expanded 'Red Line' An amendment to the Casino Venue description to expand the 'red line' to all SKYCITY properties in Federal Street, including the Grand Hotel (Potential Horizon expansion) and existing Convention Centre (potential destinational gaming offerings) 10

13 Additional Benefits from the NZICC Agreement Other benefits from the NZICC Development include: NZICC Delegates An estimated 250,000 *1 attendees visiting the NZICC once opened (target opening date September 2017). The conference market is one of the most valuable hotel guest segments SKYCITY s Auckland property (restaurants, bars, hotels) being adjacent to the NZICC is expected to benefit from this significant influx of visitation Conventions, Exhibitions and Entertainment In addition to being NZ s first international standard and scale Convention/Exhibition Centre, the NZICC will be designed to accommodate a range of entertainment sporting, cultural and artistic and musical performances Further Precinct Activation and Development The development of the NZICC is expected to be a catalyst for further investment in hospitality (restaurants, bars and hotels) in and around the precinct (known as the Victoria Quarter) and expected to ensure this precinct remains at the heart of Auckland's hospitality and entertainment precinct for many years Future Development Site Retained As part of the NZICC site, a Future Development site is being preserved for a potential future development to complement the NZICC and SKYCITY eg. future 300 room hotel development *1 : Horwath HTL report, May

14 Additional Concessions under the NZICC Agreement Further to the concessions referred to above the additional concessions include: Casino Licence Extension Prior to this Agreement, the SKYCITY Auckland Casino Licence was due for renewal by 2021 within the next 8 years. The Agreement includes an extension of the Auckland Casino Venue Licence out to 30 June 2048 Gaming Tax Certainty The Gaming Tax rate has been fixed for a period of 7 years from entering a binding Construction Contract (approx 8 years from now) at 4.72% (excl. GST) and just under 20% including GST Compensation Receive compensation for any changes to any of the agreed product or regulatory concessions prior to 2048 Activation of Concessions All concessions and additional product become available, apply and may be activated from the date that SKYCITY signs the binding Construction Contact for the construction of the NZICC expected to be between July-December 2014 Accordingly, the introduction of the additional product and concessions and associated earnings uplift is in advance of incurring any significant construction capital on the NZICC 12

15 NZICC Development Capital Expenditure SKYCITY has committed to a capped amount on the land, design, build and fit-out cost of the NZICC of $402 million Of this, $75m is already invested in land previously owned and acquired by SKYCITY. An additional $15m is committed on property under contract, taking the total site investment to $90m Total build cost has been provided for at $312m. Once design is approved, the building works contract will be let and will be largely for a fixed amount limiting the risk of cost overruns Based on current anticipated timelines and an approximate 3 year construction period post executing the building works contract, the target date for completion of the NZICC is 30 September 2017 it is expected that the car park should be available approx. 1 year prior (September 2016) Capex NZ$m Amount already invested in land 75.0 Further investment in land 15.0 NZICC Build Cost NZICC Capex (Capped amount) Casino Expansion 50.0 Total Capex In order to position SKYCITY to fully benefit from the gaming expansion and reforms, a further circa. $50m has been provided for the Casino expansion and deployment of additional gaming product: expansion of the existing Casino floor to accommodate the new gaming product TITO across all product and cashless purchasing additional EGMs and MTGMs This capex will be incurred to facilitate the benefits, commencing during 1H15 13

16 Harm Minimisation and Future Regulation Harm Minimisation One important aspect of the NZICC Bill that has received political and academic support is the additional host responsibility initiatives being introduced by SKYCITY, comprising: doubling the number of full time Host Responsibility staff in Auckland, providing dedicated Host Responsibility staff onsite at all times, 24/7; introducing predictive modelling technology which analyses player data to help identify customers most at risk from gambling harm; continuing to roll out SKYCITY s Voluntary Pre commitment Programme allowing customers to set both the time and the amount they wish to spend over a given period; It was also agreed SKYCITY would trial the use of further measures, including facial recognition technology, to identify and prevent barred problem gamblers from gaining entry to Auckland Casino Future Gaming Regulation The Labour Opposition has stated that should it win Government at the next election it reserves the right to regulate for gaming harm in a way that we would with any other participant in the gaming industry SKYCITY respects this position and wouldn't expect anything less from any Government It is important to note that currently, Ministry of Health data shows pub and club pokies account for 56% of presentations to gambling counselling providers, followed by Lotto (12%), TAB (9%) and all NZ Casino pokies with 8% We are very proud of our leading Host Responsibility programme and record, and are very confident they would stand up to any scrutiny as they have time and again 14

17 NZICC the Value Drivers Casino Licence Extension In their Independent Expert report on the NZICC *1, KordaMentha estimated the value attributed to the licence extension to be between $65m and $115m (mid-point $90m) TITO - KordaMentha estimate that TITO has a positive impact of +6% on EGMs revenue Additional Gaming Product 230 additional EGMs. KordaMentha assume the new EGMs can initially perform at c.50% of the current EGMs Win / Unit / Day WPUPD of around $350, increasing over time as they reach maturity 240 MTGMs (which are assumed by KordaMentha to achieve between 70% and 100% of an EGM s WPUPD) 40 additional tables, assumed to be allocated 50% local business and 50% international business At least 780 car park spaces Gaming Tax certainty for a period of c.8 years from this date (7 years from signing the building contract) Opportunity to monetise NZICC land through a ground lease deal or to sell car park spaces to a third party operator reduces capital investment potential Incremental visitation from the NZICC attendees and associated earnings uplift (incl. F&B / Hotel / Gaming) *1 : Korda Mentha Report on the NZICC, dated 10 May

18 Adelaide Transformation Legislation passed by South Australian Parliament on 27 July 2013 with Bi-Partisan support and received Royal Assent on 8 August 2013 New ALA and CDA signed with Government on 11 October 2013 and approved by the Independent Gaming Authority on 30 October 2013

19 SKYCITY Casino at the heart of the Riverbank Precinct The South Australian Government is investing $4+ billion into the Riverbank Precinct: expansion of the Adelaide Oval to 50,000+ capacity, in readiness for AFL football in March 2014; significantly expanded and upgraded Adelaide Convention Centre; development of the new Royal Adelaide Hospital; development of the South Australian Health and Medical Research Institute; upgraded railway lines and Adelaide Railway station; new Torrens river footbridge, from the Adelaide Oval to SKYCITY and the Adelaide Railway station SKYCITY Casino sits at the centre of the Adelaide Riverbank Precinct and supports the State Government s vision for the area The $4+ billion investment by the State will create thousands of jobs, encourage more local Adelaide visitation and interstate and international tourism all of which will benefit SKYCITY The River Torrens winding through the heart of Adelaide is one of our city s best assets but Adelaide has never used the river to its greatest advantage. This grand plan provides an opportunity to elevate our city s Riverbank to a major destination of the quality of the Barossa Valley, Kangaroo Island and the Flinders Ranges. We want to bring more South Australians and visitors into the city to enjoy what we believe will become one of the great city parks. Jay Weatherill, SA State Premier, 24 June

20 SKYCITY Casino at the heart of the Riverbank Precinct Adelaide Casino $350m+ 18

21 Adelaide Riverbank Precinct Developments Artist impression Adelaide Oval Phase 1, Dec 2013 Phase 2, Mar 2014 Artist impression Torrens River Foot Bridge open December 2013 Actual Photo 20 November

22 Adelaide the EGMs Market Opportunity South Australian EGMs Market There is a significant opportunity for SKYCITY to grow market share in South Australia At c.$60m EGMs Revenue per annum, SKYCITY has only captured 7.5% of the total SA EGMs market of $790m per annum 7.5% share is consistent with SKYCITY s share of the total number of machines in the SA market (995 machines from a total of 13,500) Of this, $550m of the EGMs market is in the pubs and clubs within 35 kms radius of Adelaide Including Adelaide Casino s EGM revenues of $60m, the total EGM market size within 35 kms of the Casino is $610m Currently, SKYCITY has only got a 10% share of this market representing significant upside potential, particularly in the new Premium rooms: local SA residents who currently don t play in SA due to the coin-only and max bet restrictions additional new Interstate players, attracted to Adelaide s new Premium rooms International EGM players, that currently don t visit SA at all 20

23 Why are Adelaide earnings so poor? SKYCITY acquired the Adelaide Casino in 2000 recognising it had some of the most restrictive legislation and regulation and some of highest gaming taxes of any casino in Australia. Through the recent legislative changes and the new Agreements with the South Australian Government these matters have finally been addressed. An inferior, un-attractive, inefficient and un-competitive premium and main floor EGM player experience The only casino in Australia with EGMs that operate on 'Coin-only in and Coin-only Out' no Bill acceptors. No Ticket in Ticket out (TITO) and no cashless gaming A maximum bet of only $10 on any EGM Restrictions on the types of games that can be purchased No gaming product differentiation between Casino EGMs and Pub & Club EGMs No viable offering for local VIP, interstate or international VIP EGM players A Win per Unit per Day on EGMs of only $165 one of the lowest in the region reflecting the above Punitive Tax Rates on all EGMs A gaming tax rate of 43% (incl. GST) on all EGMs the highest EGM tax rate in any Australian Casino 21

24 Why are Adelaide Earnings so poor? No dedicated car parking No dedicated car park and limited valet capacity. Estimate the facility needs access to at least 1,500 car spaces Challenging layout of a heritage building One of only two non-purpose built casinos in Australia (the other being Treasury Casino in Brisbane). Low ceiling height, multi-level, poor layout Located in a previously under-developed precinct Limited reasons to visit the existing Riverbank Precinct No link from the Adelaide Oval to the Casino Limited investment in the Adelaide Casino property Given the above, without legislative and regulatory reform, it was not economically viable for SKYCITY to invest the capital in the Adelaide Casino to transform it into an integrated casino entertainment complex Further, without a suitable hotel and signature restaurants very limited International, high-roller business could be attracted to Adelaide 22

25 Addressing these Issues the Adelaide Agreements SKYCITY has entered into a new ALA (Approved Licensing Agreement) and new CDA (Casino Duty Agreement) with the Government which, in conjunction with new legislation, collectively provide for: A more competitive, attractive and efficient EGM gaming offering Ticket In Ticket Out (TITO) in Premium EGM gaming rooms, removing the dependence on coin Card based cashless gaming on all EGMs throughout the Casino, removing the dependence on coin Removal of the max bet of $10 and jackpot limits in EGM premium gaming rooms No cap on the number of Premium EGMs provided total EGMs are under the total EGM cap of 1,500 Removal of restrictions on game types the Adelaide Casino can purchase Under the ALA, SKYCITY is licensed to increase gaming product An additional 505 EGMs from 995 to 1,500 in total Up to 300 fully automated table games terminals (MTGMs) a new product category for Adelaide Up to an additional 85 gaming tables from 90 to 175 in total A more competitive Gaming tax structure Premium VIP EGMs tax rate reduced from current applicable rate of 43% to 20% (incl. GST) New MTGM tax rate of 20% (incl GST) Compares very favourably to our peers Tax rate certainty to

26 Addressing these Issues the Adelaide Agreements The new agreements also provide for State-wide casino exclusivity Exclusive South Australia Casino licence extended for a further 20 years out from 2015 to 2035 State-wide exclusivity provides SKYCITY the opportunity to open further casinos in SA in the future (subject to legislative amendment to the Casino Act) No opportunity for any other Casino competitor to enter the market in the State of South Australia The redeveloped Riverbank Precinct will transform the Precinct into the entertainment capital of Adelaide The new Adelaide Oval (capacity of 53,000 at a cost of $550m) The expanded Convention Centre ($350m) The footbridge over the River Torrens from the Adelaide Oval ($50m) The new Royal Adelaide hospital (scheduled completion in 2016) and the medical research facilities, which opened in November 2013 with about 600 staff A new integrated casino entertainment complex for Adelaide The licence exclusivity, more competitive gaming tax rates, additional product and gaming concessions and reforms provide SKYCITY with the confidence to invest in Adelaide to create an integrated casino entertainment complex 24

27 Redevelopment Timing Timing of expansion of current Adelaide Casino New facilities to open from February 2014 comprise: new Premium Gaming areas (Black, Platinum and Pearl Premium Gaming) for customers from South Australia, as well as visitors from interstate and overseas new Baccarat Pavilion on Main Gaming Floor and refresh of Level 1 gaming new dining and bar concepts Key concessions enabling significant growth through 2014: Premium Gaming areas lower tax rates (10.91% on Premium EGMs), higher yield per machine TITO in Premium Gaming cashless gaming on all EGMs no maximum bets or jackpot limits on Premium Gaming EGMs new range of EGMs/games previously disallowed in SA automated Table Games (ATGs) effectively a new product for SA, but high demand elsewhere deduction of commissions/inducements paid in connection with Premium customers Timing of existing Casino redevelopment coincides with the opening of significant new developments in the Adelaide Riverbank precinct in particular the Adelaide Oval, opening at capacity of 55,000 in March

28 Adelaide FY14 Redevelopment Current Facilities Product mix in current Adelaide Casino Product mix will change to accommodate new higher value Premium Gaming by June 2014: circa.300 Premium EGMs (+220) circa.150 Automated Table Games (+110) circa.30 Premium Tables (+15) Reduction in non-premium product as space is limited in existing Casino footprint (reduces overall number of EGMs, until Casino expansion is open) FY14 Capex Spend Capex of circa. A$45m will be invested in developing the existing Adelaide Casino, to accommodate the new Premium Gaming facilities, enhance the main gaming floor and create new F&B outlets Further to the above, a A$20m exclusivity payment will be made to the SA Government in 2H14 In addition, future EGM entitlements may be purchased through the Approved Trading Scheme New Casino expansion capex will commence in late 2014 Product Nov-13 Jun-14 % Premium EGMs % Non-Premium EGMs (42%) Total EGMs (16%) Automated Tables % Total EGMs and MTGMs 1, (5%) Premium Tables % Non-Premium Tables (21%) Total Tables (2%) Capex A$m Gaming Facilities / Systems / Technology 31.0 Food & Beverage development 8.0 Other enhancements / other costs 6.0 Sub-Total 45.0 Exclusivity Payment to SA Government 20.0 Total Committed Capex

29 Adelaide Interim Development Interim Refurbishment - Premium Gaming Concepts Stage One Platinum Room Stage Two Pearl Room Artist impression 27

30 Adelaide Redevelopment new Casino Expansion Expansion of Adelaide Casino Plans for the Adelaide Casino expansion are currently being worked on by our industry-leading design team Based on current plans, the expansion will comprise: expansion of the main gaming floor, to accommodate new gaming product a 6-star all suite hotel, including large VIP villas of at least 150 m 2 private Gaming Salons, dedicated for the high-spending international VIP market, predominantly Asian new signature restaurants and main gaming floor restaurants roof top club deck, health spa and pool integration of the Casino expansion into the adjoining Adelaide Riverbank precinct and adjacent Adelaide Festival Centre plans for a car park are currently being discussed with Government and local interested parties Opening of the new expanded Casino is currently anticipated to be by the end of calendar year 2016 (mid-fy17) 28

31 Adelaide Expansion Summary Stage Two Hotel, Gaming and F&B Expansion - Concept Artist impression 29

32 Adelaide the Value Drivers EGMs SKYCITY Adelaide s EGM performance significantly lags the other casinos in NSW, Victoria and Queensland This is due to their coin-only operation, limited Premium EGM offering, restricted max bets, no dedicated car parking and limited investment in Adelaide Casino in recent years Gaming Machine Comparison *1 Crown Crown Echo Echo Echo SKYCITY Melbourne Perth Sydney Gold Coast Brisbane Adelaide NMR (Net Machine Revenue per day) $497 $373 $448 $260 $250 $165 Number of Machines (average) 2,500 1,750 1,500 1,368 1, As a result of the improvements to the operating environment in Adelaide, SKYCITY s EGM performance could, based on the competitor set above, reach at least $300 win per unit per day based on the total number of EGMs increasing to 1,500, with local, interstate and international premium gaming, this could generate additional annual EGMs revenue of $100+m there is a very significant interstate and international EGMs gaming market currently SKYCITY doesn t attract any of this market to Adelaide Casino MTGMs this is effectively a new product offering for Adelaide significant upside based on the performance of this product in other casinos across Asia and Australia similar to EGMs International Business Adelaide Casino represents less than 1% of the total Australia/NZ IB market. This represents significant potential for growth, given the new facilities being developed (n.b. Auckland has $4bn IB Turnover p.a.) Hotel, Food & Beverage new facilities deliver incremental revenues, plus drive footfall and a reason to visit *1 Source: BAML Industry Overview, Pan Asian Casinos, Game on to capture outbound travel boom, 10 January

33 Capex and Funding

34 NZICC and Adelaide Capital Expenditure Timing NZICC to spend: NZICC capex $312m Further land $15m Sub-Total NZICC $327m Casino expansion capex $50m Total NZ$377m Indicative cash flows timing may vary Adelaide to spend: Payment to SA Govt A$20m Casino expansion capex A$330m Total A$350m (NZ$389m) NZICC and Adelaide Total cumulative capex on the two projects of c.nz$766m, over the next 6 years The NZICC capex commitment is contractually agreed as $402m, of which $75m is already invested. The balance, plus $50m casino expansion capex, will be invested over the 6 year period FY14 to FY19 Forecast Debt Levels Management anticipates that debt levels may need to peak at up to 3.0x Net Debt : EBITDA If necessary, debt levels can be mitigated by monetising land and car parks in Auckland Management is committed to retaining the current Standard & Poor s investment grade credit rating AUD converted to

35 Well Funded for Future Growth Net debt at 26 November 2013 is $630m. Available committed, undrawn bank facilities total $360m Current average debt maturity is 4.3 years, with no debt maturing until 2H15 Currently only $76m of the $150m Capital Notes are issued, leaving $74m in Treasury Stock for future issue SKYCITY holds a Standard and Poor s investment grade rating of BBB- (stable outlook) Existing available funding facilities total $434m (being undrawn bank facilities and Treasury Stock) Through these facilities and operational cash flow, both projects are fully funded and our current dividend policy as outlined in the FY13 Results presentations can be maintained 33

36 Appendices

37 New Zealand International Convention Centre (NZICC) Casino Licence Early renewal of casino licence in Auckland for 35 years (to 2048) Additional Product Other reforms Capital investment NZICC Facility Key dates Compensation Additional 230 EGMs, 40 Regular tables, 240 Automated Table Game terminals TITO / cashless on all EGMs / MTGMs $50 / $100 bill acceptors on machines in VIP Rooms (up to maximum of 359 machines) Ability to deploy gaming product in any of SKYCITY s Auckland properties on Federal St SKYCITY s capital investment is capped at $402m, comprising NZICC construction cost of $312m plus land valued at circa $90m $75m of this $402m is already invested An additional approximately $50m of deployment capex for enhancements to existing property and new gaming product Plenary capacity of up to 3,500 delegates and 3,500 m 2 dedicated meeting/breakout space Minimum 780 Car Parks Final legislation was enacted in November 2013 Regulatory reforms / additional product upon signing of binding construction contract (expected second half of calendar 2014) NZICC target opening date September 2017 (car parking may be up to 1 year earlier) Receive compensation for product / regulatory changes prior to 2048, plus for any tax changes from now until 7 years after entering binding building works construction contract for NZICC 35

38 Adelaide Key Reforms Casino Licence Additional Product Tax regime (Excl. GST of 9.09%) Other reforms Capital investment Key dates 20 year extension to casino exclusivity in South Australia (to 2035) Casino licence expires in 2085 Ability to purchase 505 additional EGMs entitlements increasing to 1,500 Additional 300 Automated stations (equivalent to 15 tables) Further additional 95 Regular tables increasing to 185 New Premium / Non-Premium classification with reduction in tax rate for Premium players: EGMs currently 34.41%, becomes max 41.0% for Non Premium New Premium EGM tax rate of 10.91% New Automated Tables tax rate of 10.91% Tables currently 0.91%, becomes 3.41% Non-Premium / 0.91% Premium Tax rates fixed for period of agreement to 2035 Account based cashless gaming on all EGMs / Automated Tables throughout property Premium Gaming reforms: TITO / no max bets / no cashless transaction limits / unlimited jackpots Ability to purchase greater range of new EGM product A$350m incl. refurbishment of existing casino, plus significant expansion delivering new facilities including a 6 star Hotel, enlarged casino and VIP facilities, new signature bars and restaurants, new product, machine entitlements, and A$20m upfront payment to SA Govt Regulatory reforms / new tax rates / Govt payment expected to take effect from Feb 2014 New premium gaming areas within existing casino expected to be completed and operational during 2H14 New Hotel and Casino expansion (housing additional product) expected to open in FY17 Compensation Receive compensation for changes in taxes / product / regulatory reforms prior to

39 Adelaide Key Reforms Conditions Key conditions that remain to be satisfied for the Approved Licensing Agreement ( ALA ) and the Casino Duty Agreement ( CDA ) to come into effect are: 1. SKYCITY's satisfaction regarding the final form of the relevant regulatory instruments to give effect to the new regulatory framework and allow for the introduction of new gaming systems and technologies: Cashless Gaming is contingent on: approval / 'Recognition' of cashless system by IGA 'Technical' approval of 'systems and procedures' by CBS (under ss38) automated Risk Monitoring System approval pre-commitment system approval The new legislative and regulatory framework commences from 1 Jan The necessary approvals outlined above can only be obtained from this date 2. SKYCITY and the State Government reaching an in-principle agreement regarding tenure and the procedure for the necessary approvals for the new development site: Currently, Management expect that the commencement date for the ALA and CDA will be February 2014 until this date, SKYCITY is not obliged to pay the $20m exclusivity fee or commence the new taxation regime in other words, until SKYCITY gets the benefit from the new gaming systems 37

40 Disclaimer All information included in this presentation is provided as at 3 December 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 investor s investment objectives or other circumstances. Investors are encouraged to make an independent assessment of SKYCITY. 38