Skycity Entertainment Group Limited · NZX:SKC
Skycity Entertainment — Merger or Acquisition (August 2025)
41 slides from Skycity Entertainment's merger presentation, Aug 21, 2025
Slide 1: Equity Raising and Balance Sheet Initiatives
EQUITY RAISING AND BALANCE SHEET INITIATIVES INVESTOR PRESENTATION | 21 AUGUST 2025 THE ULTIMATE EXPERIENCE IN ENTERTAINMENT
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER IMPORTANT NOTICE & DISCLAIMER This presentation has been prepared by SkyCity Entertainment Group Limited (New Zealand incorporated company number 610568) (SkyCity) in relation to an offer of new fully paid ordinary shares in SkyCity (New Shares) by way of a placement
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER RESTRICTIONS ON DISTRIBUTION This presentation is not for distribution or release in the United States. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or any other jurisdiction in whi
Slide 4: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of SkyCity, including the FY26 and FY27 Outlook on slides 15 and 16. Forward-looking statements can gen
Slide 5: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER FINANCIAL INFORMATION All dollar values are in New Zealand dollars ($ or NZD) unless otherwise stated. SkyCity's statutory financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP) and comply with the Ne
Slide 6: Executive Summary
EXECUTIVE SUMMARY BUSINESS UPDATE BALANCE SHEET INITIATIVES Challenging trading conditions through period of elevated investment Equity raising and asset monetisations targeting net debt / EBITDA below 2.0x3 in FY27 • Operating performance impacted by: • In excess of $300m of increased debt as a res
Slide 7: Business Update
ENTERTAINMENT GROUP BUSINESS UPDATE
Slide 8: Market Backdrop
MARKET BACKDROP Challenging market conditions have impacted earnings since major FY22 COVID lock downs NZ recessionary environment AU regulatory • Earnings base re-set Covid impacted actions due to added • Jul-22: Adelaide • Sep-24: AUSTRAC fine independent review paid regulatory costs and announced
Slide 9: SkyCity Today
SKYCITY TODAY Leading gaming, entertainment and leisure operator +10.5m $20.6 +$2.7bn 2048 Visitations per annum Reported EBITDA per Book value of assets Auckland gaming visit1 licence expiry $216.1m +3,300 +1,000 ~4,500 Reported EBITDA1 EGM licences Hotel rooms Employees $233.7m +600 ~2,400 BBB- Un
Slide 10: Business Transformation Well Underway
BUSINESS TRANSFORMATION WELL UNDERWAY Delivering on our priorities OBJECTIVE PROGRESS TO DATE ✓ Continued focus on optimising site operating models to protect margins Core business Make the most of our existing assets to help ✓ Asset review completed; monetisation options being progressed optimisati
Slide 11: Carded Play
1 CARDED PLAY Live across all sites in New Zealand 3–5 0 minutes to Rebranded host enrol on average at responsibility for kiosk players Update SHOW by SkyCity ✓ Successful launch across NZ in July • All customers playing at SkyCity’s NZ casinos ✓ Initial impact in-line with guidance need their SHOW
Slide 12: NZICC
2 NZICC Potential for additional 500k visitations to Auckland precinct annually once operating at full capacity OPENING IN FEBRUARY 2026 NZICC will be New Zealand’s largest convention center, attracting major ✓ international conferences as well as having capability for sporting events, theatre and m
Slide 13: Risk Transformation
3 RISK TRANSFORMATION Learning from the past to create a better future Enterprise risk management framework implementation ongoing ✓ • • • Integrated Risk Management System to actively track issues and incidents now live Controls Centre of Excellence established and control effectiveness testing und
Slide 14: Core Business Optimisation and Online
CORE BUSINESS OPTIMISATION AND ONLINE Focus on growing visitation, EBITDA per visit and the path to Online Gaming 4 CORE BUSINESS OPTIMISATION 5 POSITIONING FOR ONLINE REGULATION Cost optimisation Progress to date • Continuation of FY25 cost saving initiatives, targeting minimum net cost ✓ Establish
Slide 15: Outlook
OUTLOOK Challenging trading conditions through period of ongoing investment in NZICC pre-opening and Online Gaming Early FY26 trading substantially in line with expectations • Carded play impact in-line with our guidance • No change observed in New Zealand consumer discretionary spending FY26 Underl
Slide 16: Outlook (cont.)
OUTLOOK (CONT.) Anticipated FY27 recovery driven by NZICC / Online Gaming moving from investment to operating, and increased spend as NZ economy improves Earnings expected to improve in FY27 with: ✓ NZICC expected to be breakeven in FY27 on a stand-alone basis (prior to contribution to broader preci
Slide 17: Sustainable Business Improvement
SUSTAINABLE BUSINESS IMPROVEMENT Our plan to return to earnings growth NZ economic recovery Portfolio optimisation Land-based growth Growth in online and business optimisation Increased visitation / spend Select asset monetisations NZICC to drive visitation uplift Establish offering (organic / M&A)
Slide 18: Balance Sheet Initiatives
effeye sk CITY @ ENTERTAINMENT GROUP BALANCE SHEET EN INITIATIVES Skveiry » A q _ Use
Slide 19: Capital Initiatives
CAPITAL INITIATIVES Equity raising provides near-term resilience; select asset monetisations targeting appropriate balance sheet settings over time EQUITY RAISING SELECT ASSET MONETISATIONS Reducing leverage to provide near-term resilience Delivering target balance sheet settings over time • $240m e
Slide 20: Pro Forma Balance Sheet
PRO FORMA BALANCE SHEET Net debt / Covenant EBITDA expected to remain below ~3.0x1 at relevant testing periods in FY26, providing resilience to navigate this challenging period PRO FORMA BALANCE SHEET (30 JUNE 2025)2 PRO FORMA DEBT MATURITY PROFILE 30 June 2025 30 June 2025 Offer (reported) (pro for
Slide 21: Longer Term Strategic Priorities
LONGER TERM STRATEGIC PRIORITIES
Slide 22: The Future of SkyCity
THE FUTURE OF SKYCITY Our plans for the future Regional gaming leader delivering connected customer experiences across entertainment precincts and Online Gaming, driving sustainable earnings growth and strong shareholder returns in the future Connected approach to gaming, leisure and entertainment L
Slide 23: Long Term Opportunity for Online Gaming
LONG TERM OPPORTUNITY FOR ONLINE GAMING Focus on leading ~$700m1 revenue regulated market opportunity PROPOSED REGULATION MARKET OPPORTUNITY MARKET POSITION AND RETURNS • Regulation expected by August 2026 • ~$700m1 revenue estimated ‘grey’ • Markets usually consolidate (3-5 years) market currently
Slide 24: Well-Positioned to Succeed in Online
WELL-POSITIONED TO SUCCEED IN ONLINE Focused on leveraging existing market position to drive competitive advantage in Online Gaming DRIVERS OF COMPETITIVE ADVANTAGE IN ONLINE GAMING Technology strategy: Playing to our strengths • Mobile-optimised website and native app, both owned and operated by Sk
Slide 25: Investment Proposition
INVESTMENT PROPOSITION Re-set capital structure to ensure a resilient platform to deliver shareholder returns going forward Quality assets with strong market position • Clear leader in land-based casino gaming in New Zealand (only licence holder in Auckland, Hamilton, Queenstown) • Operator of the l
Slide 26: Equity Raising
ENTERTAINMENT GROUP EQUITY RAISING
Slide 27: Equity Raising Details
EQUITY RAISING DETAILS • SkyCity is seeking to raise $240m (Offer) via a: Offer size and – Approximately $81m placement to eligible investors (Placement); and structure – 1 for 3.35 pro rata accelerated non-renounceable entitlement offer to raise approximately $159m (Entitlement Offer) • Approximate
Slide 28: Equity Raising Timetable
EQUITY RAISING TIMETABLE Event Date Equity raising announcement and trading halt Thursday, 21 August 2025 Placement and Institutional Entitlement Offer opens Thursday, 21 August 2025 Placement and Institutional Entitlement Offer closes Thursday, 21 August 2025 Trading halt lifted Friday, 22 August 2
Slide 29: Appendix A
APPENDIX A Additional information
Slide 30: Business Overview
BUSINESS OVERVIEW HAMILTON AND AUCKLAND ADELAIDE ONLINE (MALTA) QUEENSTOWN Operated since 1996 2002 & 2000 2000 2019 2048 2027 Hamilton 2085 (exclusive to 30 June 2035) NZ market regulating in late 2026 Gaming licence expiry 2025 Queenstown1 Pursuing Malta licence 1,877 EGMs2 425 EGMs2 1,080 EGMs ~2
Slide 31: Facilities and Covenants
FACILITIES AND COVENANTS EBITDA RECONCILIATION NET DEBT Amount drawn (NZ$m) 30 June 30 June FY25 Adjustment Maturity Total 2025 Offer 2025 (pro date amount (reported) forma) Bank facility Jul-27 NZ$57.5m - - - Reported EBITDA 216.1 Bank facility Sep-27 NZ$80.0m $50.0m $(50.0)m - Bank facility Sep-28
Slide 32: Appendix B: Key Risks
effeye sk CITY @ ENTERTAINMENT GROUP APPENDIX B KEY RISKS
Slide 33: Key Risks
KEY RISKS This section outlines the key risks that SkyCity has identified which are relevant to investors in the equity raise. These risks may affect the future operating and financial performance of SkyCity and the SkyCity share price. Like any investment, there are risks associated with an investm
Slide 34: Key Risks
KEY RISKS GOVERNMENT AND REGULATORY RISKS (CONTINUED) REGULATORY CHANGE The regulatory framework which SkyCity operates within is subject to change from time to time, which may adversely impact SkyCity’s operations, its competitiveness, and the costs of operating its business. In particular, if SkyC
Slide 35: Key Risks
KEY RISKS INDEPENDENT REVIEW INTO SKYCITY In July 2022 South Australia’s Liquor and Gambling regulator Consumer and Business Services (CBS) commissioned an independent review of casino operations in South Australia to ensure that the way that SkyCity Adelaide operates demonstrates that it, and SkyCi
Slide 36: Key Risks
KEY RISKS MERGERS, ACQUISITIONS AND DIVESTMENTS SkyCity has recently completed an asset review process, through which it identified certain non-core assets that it may consider monetising in the future. SkyCity is targeting approximately NZ$200 million in proceeds within the next 12-18 months from p
Slide 37: Key Risks
KEY RISKS CARDED PLAY SkyCity has recently introduced 100% carded play across its New Zealand properties. As outlined in SkyCity’s FY25 results announcement, the introduction of carded play is anticipated to have a material impact on SkyCity’s FY26 EBITDA. There is a risk that the cost of implementi
Slide 38: Appendix C: International Selling Restrictions
APPENDIX C INTERNATIONAL SELLING RESTRICTIONS
Slide 39: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austr
Slide 40: International Selling Restrictions
INTERNATIONAL SELLING RESTRICTIONS SINGAPORE This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in
Slide 41: Thank You
THANK YOU THE ULTIMATE EXPERIENCE IN ENTERTAINMENT
SkyCity Entertainment Group — Merger or Acquisition (August 2025) on 6ix