Slide 1: Results Presentation
ESULTS PRESENTATION Ae
Slide 2: Summary Information
SUMMARY INFORMATION This presentation has been prepared by Experience Co Limited (‘EXP’) contains summary information about EXP and its related bodies corporate and their activities. The information in this presentation is of a general background nature and does not purport to be complete or compris
Slide 3: Section One: Overview
SECMONIONE OVERVIEW
Slide 4: Overview: Chairman Update
01 OVERVIEW CHAIRMAN UPDATE BUSINESS SIMPLIFICATION AND REFOCUS ON GROWING THE CORE BUSINESS FY19 SNAPSHOT * Management refresh undertaken * Core skydiving business traded well * Challenging trading conditions in FNQ ° Review of assets, product mix & strategy * Investing in customer experience MANAG
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Slide 6: Financial Performance
02 FINANCIAL RESULTS FINANCIAL PERFORMANCE STATUTORY RESULTS SIGNIFICANTLY IMPACTED BY GOODWILL IMPAIRMENT, NON-CASH AND ONE-OFF ITEMS Revenue increased by 19.2% driven by full year contribution of FY18 REVENUE 161.3 135.3 19.2% acquisitions GROSS PROFIT 63.2 55.7 13.6% * Gross profit increased 13.6
Slide 7: Underlying Financial Performance
02 FINANCIAL RESULTS UNDERLYING FINANCIAL PERFORMANCE SKYDIVING OPERATIONS CONTINUE TO BE EARNINGS DRIVER OF THE BUSINESS KEY FINANCIAL METRICS SEGMENT EARNINGS I Co REVENUE 161.3 135.3 19.2% SKYDIVING 26.2 26.4 (0.9%) EBITDA 19.3 27.4 (29.5%) ADVENTURE EXPERIENCES 12.4 147 (15.7%) NPAT (48.3) 68 n/
Slide 8: Skydiving
02 FINANCIAL RESULTS SKYDIVING VOLUME GROWTH OF 1.3% ACROSS THE PORTFOLIO. PERFORMANCE IN AUS (EX-FNQ) AND NEW ZEALAND DRIVING VOLUME GROWTH * Australia (ex FNQ) up 5.5% driven by larger DZs SKYDIVING JUMP REVENUE 80.8 78.4 3.0% OTHER 36 30 219% . New Zealand ae healed onl a ‘strong 2H19, driven in
Slide 9: Adventure Experiences
02 FINANCIAL RESULTS ADVENTURES EXPERIENCES WEATHER AND A SOFTER FNQ TOURISM MARKET IMPACTED EARNINGS IN THE PERIOD * Revenue growth driven by full period contribution from Great Barrier Reef REVENUE 76.8 53.9 42.5% Helicopters (GBRH), Big Cat and Tropical Journeys UNDERLYING EBITDA 124 147 (15.79%
Slide 10: Cash Flow
02 FINANCIAL RESULTS CASH FLOW ROBUST OPERATING CASH GENERATION NET CASH FROM OPERATIONS 148 24.8% FINANCE COSTS 18 Ww 5.8% INCOME TAXES 67 47 427% OPERATING CASHFLOW 27.0 21.2 21.4% SIGNIFICANT ITEMS 02 48 nla UNDERLYING OPERATING CASHFLOW 27.2 25.8 5.6% UNDERLYING OPERATING CASHFLOW % 100.2% 85.4%
Slide 11: Capital Management
02 FINANCIAL RESULTS CAPITAL MANAGEMENT BALANCE SHEET OPTIONALITY MAINTAINED TO RESET THE BUSINESS AND IMPROVE RETURN ON INVESTED CAPITAL FIXED WING 2.9% HELICOPTERS 19.4 16.5 16.8% . VESSELS 27.0 32.4 (16.7%) TOTAL TANGIBLE ASSETS 142.5 1475 (3.3%) . NET DEBT 29.5 28.4 3.9% . GEARING! 207% 19.3% 1.
Slide 12: Section Three: Strategy
‘= i, eh, SECTION THREE ~ sTRATEGY :
Slide 13: CEO Insights
03 STRATEGY CEO INSIGHTS EARLY OBSERVATIONS FIRST IMPRESSIONS Business positioned strongly to take advantage of growing adventure experience market * Core skydive product has market leading position in key markets, Free Independent Traveller (‘FIT’) customer base, unique operating model and location
Slide 14: Business Simplification
03 STRATEGY BUSINESS SIMPLIFICATION AT THE CORE OF OUR BUSINESS ARE LONG TERM PROVEN CASH GENERATIVE OPERATING MODELS BEFORE Strong appetite for acquisitive growth Increasingly concentrated exposure to FNQ wet tropics Volume led business Ineffective integration Limited investment in processes and sy
Slide 15: Strategic Review
03 STRATEGY STRATEGIC REVIEW STRATEGIC REVIEW UNDERWAY OF ASSETS AND OPERATIONS ASSESSMENT CRITERIA MARKET LEADING POSITIONS: SCALABILITY GEOGRAPHIC DIVERSIFICATION RETURN ON INVESTED CAPITAL ORGANIC GROWTH BARRIERS TO ENTRY EXPOSURE TO EARNINGS FACTORS: QUALITY OF ASSET / PRODUCT SKYDIVING ADVENTUR
Slide 16: Marketing, Sales & Distribution
03 STRATEGY MARKETING, SALES & DISTRIBUTION LEVERAGE FY19 INVESTMENT IN ELEVATE YOUR COURAGE CAMPAIGN AND WEBSITE REBUILDS FOR ADVENTURE EXPERIENCES BRANDS ELEVATE YOUR COURAGE CAMPAIGN WEBSITE AND BOOKING ENGINE REBUILDS OLD WEBSITE skyave australia SS uer-o ‘You snow neglect se-care.nogen shares w
Slide 17: Customer Experience
03 STRATEGY CUSTOMER EXPERIENCE KEEPING PACE WITH TECHNOLOGY AND EVOLVING CUSTOMER EXPECTATIONS BOOKING & PAYMENT THE EXPERIENCE SHARE THE EXPERIENCE 8:50 “o> 728 «om OCS IEnEY ¢ : 8 syrenars. estan Bok Nom Py lee Easy Now OfterpayAnT ose. 8 OWEN KEMP. 1 Skydive Cairns Aug 2, 2019 Facebook » Se SCAI
Slide 18: Corporate
03 STRATEGY CORPORATE OPPORTUNITY TO BE LEANER FY19 ACHIEVEMENTS v QQ 88S Management team renewal Debt maturity extended to October 2020 Business simplification underway Launch of Dreamtime Dive and Snorkel product Elevate Your Courage campaign EXPERIENCE CO LIMITED | FY19 RESULTS PRESENTATION | 30
Slide 19: Way Forward
03 STRATEGY WAY FORWARD CLARITY ON SHORT TERM EXECUTION FOR 1H20 * Portfolio level review of earnings and ROIC + Define ‘core’ business for the future STRATEGIC REVIEW * Implementation of ROIC evaluation criteria CAPITAL DISCIPLINE + Appropriate dividend policy * Current Multi Option Facility maturi
Slide 20: Outlook
03 STRATEGY OUTLOOK STRATEGIC REVIEW UPDATE & TRADING UPDATE AT NOVEMBER AGM * CEO to present strategic review update at AGM in November ° Australia and New Zealand core skydiving business remains robust * FNQ tourism market outlook remains soft in the short term * Focus on FY20 operational trading
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Slide 22: Appendix 1: Key Reconciliations
04 APPENDICES APPENDIX 1: KEY RECONCILIATIONS RECONCILIATION OF STATUTORY TO UNDERLYING permton ree | ens) Statutory EBITDA 19.3 27.4 (29.6%) Non-cash items Correction of deferred tax balances 1 43 - Acquisitions and consolidation 2 Os - Onerous leases 3 08 - Other asset write down 4 06 - Share base
Slide 23: Appendix 2: Skydive by Country
04 APPENDICES APPENDIX 2: SKYDIVE BY COUNTRY AUSTRALIA AND NEW ZEALAND SKYDIVING AUSTRALIA NEW ZEALAND SKYDIVING REVENUE 514 17% SKYDIVING REVENUE 285 270 55% OTHER 11 as 314% OTHER 25 22 18.2% SALES REVENUE 53.4 52.2 23% SALES REVENUE 31.0 291 65% UNDERLYING EBITDA 165 167 (0.9%) UNDERLYING EBITDA