Skycity Entertainment Group Limited · NZX:SKC
Skycity Entertainment — 1H23 Earnings Presentation
24 slides from Skycity Entertainment's earnings presentation, Feb 15, 2023
Slide 1: 1H23 Results Investor Presentation
sly CIT ENTERT/A INM GROUP ; 1H23RESULTS INVESTOR PRESENTATION 15 February 2023
Slide 2: Contents
shy @ Contents Siu vO ENTERTAINMENT GROUP Michael Ahearne Julie Amey CEO CFO a 1H23 Results Summary and Key Messages P3-4 ~ 2 i Regulatory Environment and Compliance P5-6 6 - Appendices P20-24
Slide 3: 1H23 Results Summary
REVENUE $462.6 M 59.6% YoY million Reported $ M& 869% YoY 487.4 million Normalised! EBITDA $] M& 421.0% YoY 06.3 million Reported $] 62 MM 348.2% YoY 4 million Normalised! 1. Refer to appendices for normalisation detail NPAT $ MM 167.8% YoY 22.8 million Reported $ Md 474.3% YoY 73 | million Normalis
Slide 4: Key Messages
1H23 Key Messages Strong business performance delivering robust financial results while prioritising regulatory and compliance matters 6 ee 9 Performance Strong 1H23 Group normalised! EBITDA, in line with pre COVID-19 levels Strong Auckland hospitality and EGM EBITDA from domestic visitation and tou
Slide 5: Regulatory Environment and Compliance
Regulatory Environment and Compliance SkyCity Adelaide (SCA) continues to manage heightened regulatory activity while advancing comprehensive uplifts Australian Regulatory Environment SkyCity Adelaide (SCA) Enhancement Programmes AUSTRAC Australian federal regulator of AML/CTF + Investigation initia
Slide 6: Regulatory Environment and Compliance
Regulatory Environment and Compliance SkyCity New Zealand continues to uplift compliance activities while working constructively with the regulators New Zealand Regulatory Environment SkyCity New Zealand Enhancement Programmes Department of Internal Affairs (DIA) NZ gambling and AML/CFT regulator *
Slide 7: Slide 7
Slide 8: 1H23 Group Summary Profit & Loss
g ) 1) Ww Zz a =) a > ) z Q = > a fd E z ° ) x = 2% onuine 3% INTERNATIONAL BUSINESS 58% aucktand 28% ave valve Group Normalised? Revenue 1H23 1% Queenstown 8% HAMILTON 3% ontine 1% INTERNATIONAL BUSINESS 9 13% aveLaive 71% aucktano 1% Queenstown Group Normalised? EBITDA 1H23, 11% HaMitton NOTE: Gro
Slide 9: SkyCity Auckland
1H23 SkyCity Auckland Record normalised EBITDA driven by revenue recovery and favourable business mix = Strong EGM performance driven by the Main Gaming Floor and continued investment in new gaming product = Customer value proposition benefits realised from investments in Flare Bar and Food Republic
Slide 10: SkyCity Hamilton
1H23 SkyCity Hamilton Record 1H23 normalised EBITDA, benefiting from a strong economy and margin efficiencies = Record result for the property for the period, with strong gaming visitation enabled by new product investment = Operating hours of casino reduced to increase the efficiency and margin acr
Slide 11: SkyCity Queenstown
1H23 SkyCity Queenstown Record normalised EBITDA for 1H23 = Single casino operation model working well and compensating in part for significant regional worker shortage = Strong performance from EGMs up over 30% on pre COVID-19 levels = Preparations underway for the casino venue licence renewal proc
Slide 12: SkyCity Adelaide
1H23 SkyCity Adelaide Positive performance in 1H23 across the business = Overall strong gaming performance: ~ EGM win growth increased 89.4% since 1H19, compared to pubs and clubs at 34.7% — EGM market share increased from 6.84% 1H19 to 9.35% during 1H23 — table games growing, but at a slower rate =
Slide 13: International Business
1H23 International Business Business significantly reduced compared to pre COVID-19 levels = Visitation significantly impacted by ongoing overseas Turnover 1,215.0 187.5 547.8% international border closures - a material recovery not 5 anticipated in the near term given ongoing uncertainty Reported R
Slide 14: SkyCity Online
1H23 SkyCity Online SkyCity Online Casino continues to be a meaningful contributor to the Group = First period without COVID-19 disruptions since 2020 = Customer conversion from registration high, and long-term customer retention rates remain above market norms, despite stringent up front KYC checks
Slide 15: Capital Projects
pres i ‘ill it | APITAL PROJECTS &_ :
Slide 16: Capital Projects
1H23 Capital Projects Group continues to focus on completion of major projects, and effective capital spend discipline Group Capital Spend = 1H23 CAPEX of $23.4m reflects cautious spend that prioritises NZICC project and essential BAU activations = Ongoing focus on closely managing capital spend New
Slide 17: Financial Resilience
1H23 Financial Resilience The Group continues to preserve its balance sheet strength to manage future uncertainties . Group Secured Debt - Maturation Profile $m * Total borrowing! of $391m at 31 December 2022 (excluding leases), with liquidity headroom of $475m 900.0 MM Syndicate Debt and a debt gea
Slide 18: FY23 Outlook
FY23 OUTLOOK
Slide 19: FY23 Trading Outlook
FY23 Trading Outlook Performance trend expected to continue but with ongoing uncertainties = FY23 normalised! EBITDA expected to track ahead of FY19 levels on a like-for-like basis, with estimates ranging from $305m to $320m excluding upside from integration of the Auckland carpark = Group performan
Slide 20: Appendices
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Slide 21: Notes on presentation basis
Unless otherwise stated, all dollar amounts in this presentation are expressed in New Zealand dollars Average NZ$ vs. A$ cross-rate for 1H23 = 0.9061 and 1H22 = 0.9525 Weighted average number of shares excludes shares held on trust under the Group's executive incentive schemes: 1H23 = 758,117,231 1H
Slide 22: Normalisation of Group Results
BNormatisation of Group Results The Group's objective in preparing normalised financial information is to enable the investment community to better understand the Group’s underlying operational performance = The Group achieves this objective by providing information that: — is representative of SkyC
Slide 23: Normalisation of Group Results: Reconciliation to Reported Results
Nomalisation of Group Results Reconciliation to Reported Results sm es Revenue EBITDA EBIT Reported 462.6 106.3 60.9 IB Revenue Adjustment 3.2 = 2 Gaming GST 45.2 S 2 IB Theoretical Win Rate 01 0.7 0.7 NZICC Fire Impact (23.7) 43.4 43.4 Asset Impairment 2 3.6 3.6 Property Revaluation - 8.4 8.4 Signi
Slide 24: Important information and forward-looking statements
All information in this presentation is provided as at 15 February 2023 This presentation includes forward-looking statements that by their nature involve inherent risks and uncertainties, many of which are matters beyond SkyCity’s control and could cause actual results to differ from those predicte
SkyCity Entertainment Group — 1H23 Earnings Presentation on 6ix