ADELAIDE CASINO EXPANSION – PROJECT UPDATE

21 May 2018

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NZX Limited
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AUSTRALIA


Dear Sir/Madam


RE: SKYCITY ENTERTAINMENT GROUP LIMITED (SKC)
ADELAIDE CASINO EXPANSION – PROJECT UPDATE

Please find attached an update regarding the company’s Adelaide Casino
expansion project and the appointment of Hansen Yuncken Pty Limited as the
main contractor for the delivery of the expansion project.

For more information, please contact:


Media
Colin Espiner
GM, Communications
DDI: +64 9 363 6467
Mobile: +64 27 5046294
Email: colin.espiner@skycity.co.nz
Investors & analysts
Ben Kay
GM, Corporate Development &
Investor Relations
DDI: +64 9 363 6067
Email: ben.kay@skycity.co.nz


Yours faithfully


Jo Wong
Company Secretary

SKYCITY
Entertainment
Group Limited
SKYCITY
Entertainment
Group Limited
SKYCITY Entertainment Group Limited
Project Update
Adelaide Expansion
21 May 2018

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Introduction
Construction contract signed with Hansen Yuncken for expansion of Adelaide Casino
•Hansen Yuncken is one of Australia’s leading building contractors
•Largely lump sum, fixed price contract
•Agreed commercial terms provide significant risk protection for SKYCITY
Total project budget of ~A$330m (including appropriate contingencies), in-line with previous guidance
Main construction works to commence by end of FY18, with completion expected in 1H21
Continue to expect car park (being developed by Walker Corporation) to be opened contemporaneous with
expansion
Remain confident in investment thesis for Adelaide – expect to deliver an acceptable return on the project
Project represents a significant investment in the future of Adelaide and the revitalisation of the Riverbank
precinct

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Construction Contract
Building works to deliver the hotel and casino
expansion, and integrate facility with existing
building, public spaces and car park
~27 month construction period from
commencement
Appropriate incentives to complete on-time
~90% of construction costs fixed
Remaining ~10% represented by provisional sums
within SKYCITY’s control (i.e. fit-out and FF&E)
Budget includes appropriate contingencies
Contract based on full detailed design – largely build
only, with design responsibility primarily remaining
with SKYCITY
Key Commercial Terms
One of Australia’s leading building contractors –
chosen following competitive tender process
Experienced in managing large construction
projects across a range of industries and asset
classes (e.g. Uni SA, Adelaide Airport)
100 years of operation in Australia − completed over
4,500 projects
Involved in initial scoping and development of
Adelaide Casino in 1985
Privately owned company, with significant presence
in Adelaide
Expect to create up to 1,000 local jobs during
construction phase
Main Contractor – Hansen Yuncken

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Final Design
Adelaide expansion from the Festival Plaza (1 of 3)

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Final Design
Adelaide expansion from the Festival Plaza (2 of 3)

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Final Design
Adelaide expansion from the Festival Plaza (3 of 3)

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Key Design Features
Significant expanded gaming and entertainment facilities
New casino podium to accommodate ~30% increase in gaming product post expansion, but with
flexibility to increase over time if required
Dedicated IB offering (4 salons)
Casino

Boutique all-suite hotel (123 rooms), including dedicated IB accommodation
Additional signature restaurants and bars / cafes (including a rooftop bar)
Function spaces (to accommodate up to 750 pax) and meeting rooms
1,500 space car park adjacent to casino (developed by Walker Corporation), of which 750 spaces to be
exclusively leased to SKYCITY
Improved back of house facilities
Non
-
gaming

Integration with
existing building

Revitalisation of existing gaming spaces that appeal to local market
Refurbishment and expansion of some restaurants & bars
Effective connection and circulation between the expansion and the existing building
Enhanced facade emphasising heritage aspects of the building

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Project Costs
Total project budget of ~A$330m, (including
appropriate contingency), in-line with previous
guidance
Total costs include a lease prepayment to the
SA Government, new gaming product /
gaming machine entitlements, internal costs,
contributions to the early works programme
and modifications to the existing building
Phasing of capex out to FY21 slightly changed
from previous guidance following receipt of
construction programme from Hansen
Yuncken
A$m
Early works programme 8
Site lease 12
Modifications to existing building 15
Gaming product / entitlements & operational costs 30
Construction, consultants & contingency 265
Total 330
A$m
Before
FY18
FY18 FY19 FY20 FY21+ Total
Adelaide expansion costs 29 29 68 152 52 330
Future Capex Profile
Total Project Costs

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Project Timetable
July 2017
May 2018
June 2018
Q3 2020
(1H21)
Q4 2020
(1H21)
Development Agreement signed
Early works completed, construction contract signed
Practical completion of expansion and Festival Plaza (including car parks)
Soft opening of expansion, followed by official opening
Main construction works commence

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Disclaimer
All information included in this presentation is provided as at 21 May 2018
This 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 investors investment objectives or other
circumstances. Investors are encouraged to make an independent assessment of SKYCITY

SKYCITY
Entertainment
Group Limited
SKYCITY
Entertainment
Group Limited