MCK: 2018 Interim Report

HEAD OFFICE
Head Office Tel: (09) 353 5010
Level 13, 280 Queen Street
PO Box 5640, Wellesley St, Auckland
NATIONAL CONFERENCE OFFICE
Ph: 0800 4 MEETINGS (0800 4 633 846)
Email: meetings@millenniumhotels.co.nz
www.meetingsnz.co.nz
SALES
Email: sales.marketing@millenniumhotels.co.nz
International Sales Tel: (09) 353 5085
Corporate Sales Auckland Tel: (09) 353 5010
Corporate Sales Wellington Tel: (04) 382 0770
CENTRAL RESERVATIONS
Ph: 0800 808 228
Email: central.res@millenniumhotels.co.nz
www.millenniumhotels.com
INTERIM REPORT 2018

Dear Valued Shareholder,
YOUR 2018/ 2019 SHAREHOLDER DISCOUNT CARD
Thank you for your continued support of our Millennium, Copthorne and Kingsgate Hotels and Resorts.
I am pleased to enclose your 2018 / 2019 Shareholder Discount Card along with our 2018 Half Year Report.
In response to positive feedback, we are continuing the shareholder discount at 20 percent off our Best
Available Fully Flexible Rate. This discount is available year-round at our participating hotels and has no
fees should you decide to cancel before the date of arrival. While we will be offering promotions that might
be cheaper than this discounted price from time to time, such promotions have a strictly limited timeframe.
We hope that you will find this an attractive discount and we do encourage you to use it.
In order to receive the discount, please make your bookings through our website http://www.
millenniumhotels.co.nz using promo code MCKSHR, by e-mail (central.res@millenniumhotels.co.nz) or via
our Central Reservations Office on 0800 808 228 (within New Zealand only). Bookings cannot be made
via the hotel directly.
In addition to the Shareholder Discount, we have a range of other special offers and promotions available.
You can find these on www.millenniumhotels.co.nz as well as www.besthoteldeals.co.nz.
To subscribe to our e-newsletter, please email emailoffers@millenniumhotels.co.nz.
We look forward to your custom at our Millennium, Copthorne and Kingsgate Hotels and Resorts throughout
New Zealand in the near future.
Yours faithfully,
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED
BK Chiu
Managing Director
Terms and Conditions: Shareholder Discount is available to current shareholders of Millennium & Copthorne Hotels New
Zealand Limited for private bookings (maximum 2 rooms) only. The discount is 20% off the Best Available Fully Flexible
Rate applicable at time of booking and does not apply to any other previously discounted / special rate. Where available, a
check-out time of 12.00pm may be requested. Reservations must be made via the internet (www.millenniumhotels.co.nz),
by e-mail to central.res@millenniumhotels.co.nz or by telephone (0800 808 228 within New Zealand). The promo code
MCKSHR must be used. Please present this card upon check-in. Card is valid until 30 September 2019 or when you cease
to be a shareholder, whichever is the earlier.
2018/19 SHAREHOLDER DISCOUNT CARD
As a valued shareholder of Millennium & Copthorne Hotels New Zealand Limited, we are
pleased to offer a shareholder discount of 20 percent off our Best Available Fully Flexible
Rate applicable at the time of booking and 12.00pm check-out (subject to availability) at
participating Millennium, Copthorne and Kingsgate hotels in New Zealand.
Please note: the participating hotels are Millennium Hotel Rotorua / Queenstown; Copthorne
Hotel & Resort Bay of Islands / Rotorua / Palmerston North / Auckland City / Wellington
Oriental Bay / Queenstown Lakefront / Queenstown Lakeview; Kingsgate Hotel Greymouth
/ Te Anau / Dunedin

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
1
Financial Performance:
Millennium & Copthorne Hotels New Zealand Limited (“MCK”) announced an
unaudited profit after tax and non-controlling interests of $30.15 million for the six
month period ended 30 June 2018 (2017: $24.23 million). Profit before income tax and
non-controlling interests was $54.66 million (2017: $43.91 million). Group revenue
and other income for this increased to $127.51 million (2017: $104.14 million) and gross
profit for the period also increased to $77.66 million (2017: $62.33 million).
These increases in profit and revenue from the previous year reflect a steady tourism
market across New Zealand as well as additional contributions from M Social Auckland
and Millennium Hotel New Plymouth Waterfront. MCK’s majority-owned land
development subsidiary CDL Investments New Zealand Limited also saw good sales in
the first half of 2018 which boosted MCK’s overall results.
Earnings per share for the period increased to 19.05 cents per share (2017: 15.32 cps).
New Zealand Hotel Operations:
The New Zealand hotel operations (14 owned or leased and operated hotels (excluding
5 franchised and 2 managed hotels) continue to perform well. Revenue for the period
increased in the past six months to $64.27 million (2017: $51.63 million). RevPAR also
increased by 13.2% to $133.12 (2017: $117.63). Occupancy for the owned / leased hotels for
the period improved to 83.2% (2017: 81.3%).
While demand for accommodation remains steady, the imminent arrival of new
competitors in regions such as Auckland and Queenstown together with non-traditional
accommodation supply has seen rate pressure in certain market segments.
MCK is party to a judicial review action brought by several Auckland hotel owner /
operators against Auckland Council in relation to the Accommodation Provider Targeted
Rate (APTR). This High Court action seeks to rescind the APTR on the basis of unfairness
and lack of consultation by Auckland Council and will likely be heard some time in the first
half of 2019. This will have no material impact on MCK’s 2018 results.
CDL Investments New Zealand Limited (‘CDL’):
CDL announced an unaudited operating profit after tax for the six months ended 30
June 2018 of $25.47 million, (2017: $20.39 million). Sales were recorded in Auckland,
Hamilton and Canterbury. While it has noted that market conditions in some areas
appear to have peaked, CDL remains on target to better its 2017 results.
Chairman’s Review

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
2
Offshore investments – Australia:
Occupancy at the Zenith Residences, Sydney was steady at 88.5% across the complex.
Apartment units are now being put up for sale as the leases expire and one apartment
was sold in the first half of 2018.
Outlook:
The outlook for the group as a whole remains positive for the rest of 2018. MCK’s
hotels are expected to continue to see positive occupancy and revenue and with further
sales from CDL, the Board expects MCK to better its 2017 performance this year.

Colin Sim
Chairman
Millennium & Copthorne Hotels New Zealand Limited
2 August 2018
Chairman’s Review
CONTINUED

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
3
Condensed Interim Income Statement
For the six months ended 30 June 2018
Unaudited Unaudited
6 months 6 months
Dollars in thousands Note to 30/06/18 to 30/06/17

Revenue 127,506 104,141
Cost of sales (49,850) (41,815)
Gross profit
77
,656
62,
326

A
dministrative expenses
(12,
408)
(9
,742)
Other operating expenses
(11,
413)
(9
,661)
Operating profit before finance income
5
3,835
42,
923

F
inance income
1,
687
1,
900
Finance costs
(858) (911)
Net financ
e income
829

98
9

P
rofit before income tax
54,
664
43,
912

Inc
ome tax expense
(15,
043)
(12,
071)
Profit for the period
39,621 31,841


P
rofit for the period attributable to:

Equity holders of the parent 30,147 24,233
Non-controlling interests 9,474 7,608
Profit for the period
39
,621
31,84
1


Basic earnings per shar
e (cents)
4

19
.05c
15.
32c
Diluted earnings per share (cents)

4

19
.05c
15.
32c


Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
The attached notes form part of, and are to be read in conjunction with, these financial statements.

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
4
Condensed Interim Statement of Comprehensive Income
For the six months ended 30 June 2018
Unaudited Unaudited
6 months 6 months
Dollars in thousands to 30/06/18 to 30/06/17
Profit for the period 39,621 31,841

Other comprehensive income
Items that are or may be reclassified to profit or loss
Movement in exchange translation reserve
- Recognised in equity
(1,535)

330
T
otal comprehensive income for the period
38,
086
32,
171

T
otal comprehensive income for the period attributable to:
E
quity holders of the parent
28,
612
2
4,563
Non-controlling interests
9
,474
7
,608
Total comprehensive income for the period
38,
086
32,
171
DETAILS OF SPECIFIC RECEIPTS/OUTLAYS,
REVENUES/EXPENSES :
Audit fees (158) (154)
Depr
eciation
(
4,186)
(3,
048)
Interest income
1,687 1,895
Net foreign exchange gain/(loss)

(15)

(5)
Interest expense (843) (901)
Leasing and rental expenses

(1,
208)
(1,
168)


Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
The attached notes form part of, and are to be read in conjunction with, these financial statements.

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
5
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
The attached notes form part of, and are to be read in conjunction with, these financial statements.
Condensed Interim Statement of Changes in Equity
For the six months ended 30 June 2018
Balance at 1 January 2017 383,266 161,370 (3,323) (52,224) (26) 489,063 63,218 552,281

Movement in exchange translation
reserve - - 330 - - 330 - 330
Income and expense
recognised directly in equity
-

-

330

-

-

330

-

330

Profit for the period
- - - 24,233 - 24,233 7,608 31,841
Total comprehensive income for
the period
-

-

330

2
4,233
-

2
4,563
7
,608
32,
171


T
ransactions with owners,
recorded directly in equity :
Dividends paid t
o:
E
quity holders of the parent
5

-

-

-

(7
,911)
-

(7
,911)
-

(7
,911)
Non-controlling interests
-

-

-

-

-

-

(3,
142)
(3,
142)


Mo
vement of non-controlling interests
without a change in control
-

-

-

80

-

80

385

465



Supplementary dividends

5

-

-

-

(2
21)
-

(2
21)
-

(2
21)
Foreign investment tax credits
-

-

-

2
21
-

2
21
-

2
21


Balanc
e at 30 June 2017
383,
266
16
1,370
(2,
993)
(35,82
2)
(2
6)
505,
795
68,
069
5
73,864


Balanc
e at 1 January 2018
383,
266
2
22,465
114

(16,
939)
(2
6)
588,880

7
4,810
663,
690


Mo
vement in exchange translation
reserve

-

-

(1,535)

-

-

(1,535)

-

(1,535)

Inc
ome and expense recognised
directly in equity
-

-

(1,535)

-

-

(1,535)

-

(1,535)
P
rofit for the period
-

-

-

30
,147
-

30
,147
9
,474
39
,621
Total comprehensive income
for the period

-

-

(1,535)

30
,147
-

28,
612
9
,474
38,
086


T
ransactions with owners,
recorded directly in equity :

Dividends paid t
o:

E
quity holders of the parent
5

-

-

-

(9
,493)
-

(9
,493)
-

(9
,493)
Non-controlling interests
-

-

-

-

-

-

(3,
655)
(3,
655)


Mo
vement of non-controlling
interests without a change in control
-

-

-

99

-

99

454

553



Supplementary dividends

5

-

-

-

(2
42)
-

(2
42)
-

(2
42)
Foreign investment tax credits
-

-

-

2
42
-

2
42
-

2
42
Balance at 30 June 2018
383,
266
2
22,465
(1,
421)
3,814

(2
6)
608,
098
81,
083
68
9,181
Attributable to Equity Holders of the Group

Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited

Share Revaluation Exchange Accumulated Treasury Unaudited Non-controlling Total
Dollars in thousands Note Capital Reserves Reserves Losses Stock Total Interests Equity

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
6
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
The attached notes form part of, and are to be read in conjunction with, these financial statements.
Unaudited Audited Unaudited
as at as at as at
Dollar
s in thousands Note 30/06/2018 31/12/2017 30/06/2017
SHAREHOLDERS’ EQUITY
Issued capital 3 383,266 383,266 383,266
Reserves

2
24,858
205,
640
12
2,555
Treasury stock
3

(2
6)
(2
6)
(2
6)
Non-controlling interests
81,083 74,810 68,069
Total equity
689,181 663,690 573,864
Represented by:


NON CURRENT ASSETS
Property, plant and equipment 514,355 505,908 427,016
Development properties

17
4,747
145,
751
130
,461
Investment in associates
2

2

2
T
otal non-current assets 689,104 651,661 557,479

CURRENT AS
SETS
Cash and cash equivalents 28,976 34,195 22,035
Short term bank deposits 98,749 88,890 104,060
Trade and other receivables 14,257 17,729 12,282
Trade receivables due from related parties

6

15

-

-

Inventories 1,493 1,646 1,417
Income tax receivable 163 - 656
De
velopment properties
29
,229
34,
104
28,5
22
Total current assets 172,882 176,564 168,972
Total assets
861,986 828,225 726,451

NON CURRENT LIABILITIES

Int
erest-bearing loans and borrowings
66,
000
66,
000
66,
000
Provision for deferred taxation

7
0,596
7
0,245
58,
986
Total non-current liabilities

136,5
96
136,
245
12
4,986
CURRENT LIABILITIES


Trade and other payables 21,715 22,442 20,371
Trade payables due to related parties
6 1,612 1,981 1,254
Loans due to related parties

6

7
,100
-

2,800
Inc
ome tax payable
5,
782
3,86
7
3,
176
Total current liabilities
36,209 28,290 27,601

Total liabilities

17
2,805
16
4,535
152,58
7

Net assets

68
9,181
66
3,690
5
73,864
Condensed Interim Statement of Financial Position
As at 30 June 2018

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
7
The attached notes form part of, and are to be read in conjunction with, these financial statements.
Condensed Interim Statement of Cash Flows
For the six months ended 30 June 2018
Unaudited Unaudited
6 months 6 months
Dollars in thousands Note to 30/06/18 to 30/06/17
CASH FLOWS FROM OPERATING ACTIVITIES
Cash w
as provided from:
Receipts from customers 130,779 111,329
Interest received 1,871 1,123
132,650 112,452
Cash was applied to:
Payments to suppliers and employees (59,063) (52,404)
Purchase of development land

(36,
354)
-

Interest paid

(865)

(806)
Income tax paid (13,461) (13,285)
(109,743) (66,495)
Net cash inflow from operating activities
2
2,907
45,
957

C
ASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from/(applied to):
Purchase of property, plant and equipment
(12,
635)
(7
,461)
Increase in short term bank deposits
(9,859) (18,462)
Net cash outflow from investing activities
(2
2,494)
(25,
923)

C
ASH FLOWS FROM FINANCING ACTIVITIES
Cash w
as provided from/(applied to):
Repayment of borrowings
-

(
4)
Advance/(repayment) of related parties loans
6

7
,100
(3,
000)
Dividends paid to shareholders of
Millennium & Copthorne Hotels New Zealand Ltd
5 (9,493) (7,911)
Dividends paid to non-controlling interests

(3,
655)
(3,
142)
Net cash outflow from financing activities
(6,
048)
(14,
057)

Net (
decrease)/increase in cash and cash equivalents


(5,
635)
5,
977
Add opening cash and cash equivalents
34,
195
15,5
20
Exchange rate adjustment

4
16
538
Closing cash and cash equivalents 28,976 22,035
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
8
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
The attached notes form part of, and are to be read in conjunction with, these financial statements.
Unaudited Unaudited
6 months 6 months
Dollars in thousands to 30/06/18 to 30/06/17
RECONCILIATION OF NET PROFIT FOR THE PERIOD
TO CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period 39,621 31,841
Depreciation

4,
186
3,
048
Income tax expense 15,043 12,071

Adjustments for movements in working capital:
Decrease in receivables 3,457 6,411
Decrease in inventories 153 91
(Increase)/Decrease in development properties
(25,011) 11,249
Increase/(Decrease) in payables 153 (3,685)
Increase/(Decrease) in related parties
(36
9)
(883)
Cash generated from operations 37,233 60,143

Interest paid (865) (901)
Income tax paid (13,461) (13,285)
Net cash inflow from operating activities
22,907 45,957

Condensed Interim Statement of Cash Flows
For the six months ended 30 June 2018

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
9
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2018 (unaudited)
1. Significant accounting policies
Millennium & Copthorne Hotels New Zealand Limited is a company domiciled in New Zealand,
registered under the Companies Act 1993 and listed on the New Zealand Stock Exchange. Millennium
& Copthorne Hotels New Zealand Limited (the “Company”) is a Financial Markets Conduct Reporting
Entity in terms of Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013. The
condensed interim financial statements of the Company for the six months ended 30 June 2018
comprise the Company and its subsidiaries (together referred to as the “Group”). The registered office
is located at level 13, 280 Centre, 280 Queen Street, Auckland, New Zealand.
The principal activities of the Group are ownership and operation of hotels in New Zealand; residential
development and sale of land in New Zealand; and development and sale of residential units in Australia.
T
he condensed interim financial statements were authorised for issuance on 2 August 2018.
(a) Statement of compliance
The condensed interim financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (NZ GAAP). They comply with NZ IAS 34 Interim Financial
Reporting. The condensed interim financial statements do not include all of the information required for
full annual financial statements.
The accounting policies and methods of computation applied by the Group in these condensed interim
financial statements are the same as those applied by the Group in its financial statements for the year
ended 31 December 2017.
2. Segment reporting
Segment information is presented in the condensed interim financial statements in respect of the
Group’s reporting segments. Operating segments are the primary basis of segment reporting. The
Group has determined that its chief operating decision maker is the Board of Directors on the basis
that it is this group which determines the allocation of resources to segments and assesses their
performance.
Inter-segment pricing is determined on an arm’s length basis. Segment results include items directly
attributable to a segment as well as those that can be allocated on a reasonable basis.
Segment
capital expenditure is the total cost incurred during the period to acquire segment assets that
are expected to be used for more than one period.

Oper
ating segments
The Group consisted of the following main operating segments:
• Hotel operations, comprising income from the ownership and management of hotels.
•
Residential land development, comprising the development and sale of land.
•

R
esidential property development, comprising the development and sale of residential apartments.
Geographical segments
The Group operates in the following main geographic segments:
• New Zealand
•

A
ustralia
Segment revenue is based on the geographical location of the asset. The Group has no major customer
representing greater than 10% of the Group’s total revenue.
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
10
Notes to the Condensed Interim Financial Statements

For the six months ended 30 June 2018 (unaudited)
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
(a) Operating Segments


R
esidential Land

R
esidential and Commercial


Hot
el Operations

De
velopment

P
roperty Development

Gr
oup

Unaudit
ed

Unaudited

Unaudited

Unaudited

Unaudit
ed

Unaudit
ed

Unaudit
ed

Unaudit
ed


6 months

6 months

6 months

6 months

6 months

6 months

6 months

6 months t
o
Dollars in thousands
to 30/06/18
to 30/06/17
to 30/06/18
to 30/06/17
to 30/06/18
to 30/06/17
to 30/06/18
to 30/06/17
External revenue

6
4,267

5
1,626

60
,226

5
1,039

3,
013

1,
476

12
7,506

104,
141
Earnings before interest,

depreciation & amortisation

2
2,534

18,
316

34,
652

2
7,317

835

338

58,
021

45,
971
Finance income

8
77

833

7
26

1,
000

84

6
7

1,
687

1,
900
Finance expense

(858)

(911)

-

-

-

-

(858)

(911)
Depr
eciation and amortisation

(
4,184)

(3,
045)

-

(1)

(2)

(2)

(
4,186)

(3,
048)
Profit before income tax

18,
369

15,
193

35,
378

28,
316

917

40
3

54,
664

43,
912
Income tax expense

(
4,883)

(
4,028)

(9
,908)

(7
,928)

(25
2)

(115)

(15,
043)

(12,
071)
Profit after income tax

13,
486

11,
165

25,
470

20
,388

665

288

39
,621

31,84
1


Segment assets

58
7,430

480
,328

210
,625

179
,992

63,
766

65,
473

86
1,821

7
25,793
Tax assets

-

-

-

-

163

656

163

656
In
vestment in associates

-

-

2

2

-

-

2

2
T
otal assets

58
7,430

480
,328

210
,627

179
,994

63,
929

66,
129

86
1,986

7
26,451


Segment liabilities

(9
2,477)

(86,
732)

(2,
766)

(2,50
1)

(1,
184)

(1,
192)

(96,
427)

(90
,425)
Tax liabilities

(7
0,766)

(5
9,443)

(5,
438)

(3,
154)

(17
4)

435

(7
6,378)

(6
2,162)
Total liabilities

(163,
243)

(146,
175)

(8,
204)

(5,
655)

(1,
358)

(7
57)

(17
2,805)

(15
2,587)


Property, plant and equipment expenditure

12,
635

7
,461

-

-

-

-

12,
635

7
,461
Residential land development expenditure

-

-

12,568

10
,159

-

-

12,568

10
,159
Purchase of land for residential land development

-

-

36,
354

-

-

-

36,
354

-
2.

Segment r
eporting - continued

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
11
(b) Geographic Segments

Ne
w Zealand

A
ustralia

Gr
oup

Unaudit
ed

Unaudited

Unaudited

Unaudited

Unaudit
ed

Unaudit
ed


6 months

6 months

6 months

6 months

6 months

6months

Dollars in thousands

t
o 30/06/18

t
o 30/06/17

t
o 30/06/18

t
o 30/06/17

t
o 30/06/18

t
o 30/06/17
External revenue

12
4,493

10
2,665

3,
013

1,
476

12
7,506

104,
141
Earnings before interest,

depreciation & amortisation

5
7,163

45,
609

858

36
2

58,
021

45,
971
Finance income

1,
603

1,833

84

6
7

1,
687

1,
900
Finance expense

(858)

(911)

-

-

(858)

(911)
Depr
eciation and amortisation

(
4,184)

(3,
046)

(2)

(2)

(
4,186)

(3,
048)
Profit before income tax

53,
724

43,
485

9
40

42
7

54,
664

43,
912
Income tax expense

(14,
793)

(11,
963)

(250)

(108)

(15,
043)

(12,
071)
Profit after income tax

38,
931

31,5
22

6
90

319

39
,621

31,84
1


Segment assets

798,
164

660
,320

63,
657

65,
473

86
1,821

7
25,793
Tax assets

-

-

163

656

163

656
In
vestment in associates

2

2

-

-

2

2
T
otal assets

798,
166

660
,322

63,8
20

66,
129

86
1,986

7
26,451


Segment liabilities

(9
5,280)

(8
9,265)

(1,
147)

(1,
160)

(96,
427)

(90
,425)
Tax liabilities

(7
6,199)

(6
2,600)

(179)

438

(7
6,378)

(6
2,162)
Total liabilities
(171,479)
(151,865)
(1,326)
(722)
(172,805)
(152,587)


Property, plant and equipment expenditure

12,
635

7
,461

-

-

12,
635

7
,461
Residential land development expenditure

12,568

10
,159

-

-

12,568

10
,159
Purchase of land for residential land development

36,
354

-

-

-

36,
354

-
Notes to the Condensed Interim Financial Statements

For the six months ended 30 June 2018 (unaudited)
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
2.

Segment r
eporting - continued

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
12
3. Share capital
Ordinary
shares
R
edeemable preference
shares
Total ordinary shares issued –
fully paid
Shar
es$ 000sShares$ 000s
Balance at 30 June 2017105,578,290350,048 52,739,54333,218
Balance at 30 June 2018105,578,290350,048 52,739,54333,218
Ordinary shares repurchased
and held as treasury stock
Balanc
e at 30 June 2017(99,547)(26)--
Balance at 30 June 2018(99,547)(26)--
Shares issued – fully paid
Balance at 30 June 2017105,478,743350,02252,739,54333,218
Balance at 30 June 2018105,478,743350,02252,739,54333,218
At 30 June 2018, the authorised share capital consisted of 105,578,290 ordinary shares (2017:
105,578,290 ordinary shares) with no par value and 52,739,543 redeemable preference shares (2017:
52,739,543) with no par value.
4. Earnings per share
The basic earnings per share of 19.05 cents (30 June 2017: 15.32 cents) is based on the profit attributable
to ordinary shareholders of $30.15 million (30 June 2017: $24.23 million) and weighted average number
of ordinary shares and redeemable preference shares outstanding during the period ended 30 June 2018
of 158,218,286 (30 June 2017: 158,218,286).
The redeemable preference shares are included in the computation of earnings per share as they rank
equally with ordinary shares in respect of distributions made by the Company except any distribution in
the case of liquidation.
The calculation of diluted earnings per share of 19.05 cents (30 June 2017: 15.32 cents) is the same as
basic earnings per share.
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2018 (unaudited)
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
13
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2018 (unaudited)
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
5. Dividends
The following dividends were paid during the interim periods:
Group
Dollars in thousandsUnaudited
30/06/18
Unaudited
30/06/17
Ordinary dividend: 6.0 cents per qualifying share
(2017: 5.0 cents)

9,493
7
,911
Supplementary dividend: 1.0588 cents per qualifying
share (2017: 0.5524 cents)

242
22
1
9,7358,132
6. R elated party transactions
Millennium & Copthorne Hotels New Zealand Limited is a 75.78% (2017: 75.20%) (economic interests
from both ordinary and preference shares) owned subsidiary of CDL Hotels Holdings New Zealand
Limited which is a wholly owned subsidiary of Millennium & Copthorne Hotels plc in the United
Kingdom. The ultimate parent company is Hong Leong Investment Holdings Pte Limited in Singapore.
At balance date there were related party advances owing from/(owing to) the following related
companies:
Group
Dollars in thousandsNature of balanceUnaudited
30/06/18
Unaudited
30/06/17
Trade payables and receivables
due to related parties
Millennium & Copthorne

Hotels plc
R
echarge of expenses(899)(434)
Millennium & Copthorne
International Limited
Recharge of expenses
& provision of
management and
marketing support
–(135)
CDL Hotels Holdings
New Zealand Limited
R
echarge of expenses15–
CDLH (BVI) One LimitedRent payment(731)(685)
(1,597)(1,254)
Loans due to related parties
CDL Hotels Holdings

New Zealand Limited
Int
er-company loan(7,100)(2,800)
(7,100)(2,800)

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
14
6. R elated party transactions – continued
No debts with related parties were written off or forgiven during the period. No interest was charged
on these payables during 2018 and 2017. There are no set repayment terms. During this period, costs
amounting to $125,000 (2017: $125,000) have been recorded in the income statement in respect of
fees payable to Millennium & Copthorne International Limited for the provision of management and
marketing support.
As at balance date, CDL Hotels Holdings New Zealand Limited has lent a total of $7.10 million (30 June
2017: $2.80 million) to Millennium & Copthorne Hotels New Zealand Limited. The interest rates are
fixed at 2.07% (30 June 2017: 2.06%) until the loans are reviewed on 3 September 2018. The unsecured
loans are repayable on demand.
7. Capital commitments
As at 30 June 2018, the Group has entered into contractual commitments for capital expenditure and
development expenditure.
Group
Dollars in thousandsUnaudited
30/06/18
Unaudited
30/06/17
Capital expenditure3,0102,360
Development expenditure26,8308,730
29,84011,090
8. Changes in contingent liabilities and contingent assets since last annual balance
sheet date
The Group has an outstanding claim from the main contractor of the Copthorne Hotel Harbourcity City
project. The Group received the notice for an arbitration but no date has been set. The total of the claim
is unknown and the outcome of the arbitration is indeterminate at present, hence no liability has been
recognised in the financial statements at balance date.
Notes to the Condensed Interim Financial Statements
For the six months ended 30 June 2018 (unaudited)
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
15
Top Holders (Ordinary Shares) as at 24 August 2018
Top Holders Redeemable Preference Shares (as at 24 August 2018)
Shareholder Information and Disclosures
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Rank Name Units % of Units
1.
CDL HO
TELS HOLDINGS NEW ZEALAND LIMITED
7
4,743,077
7
0.79
2.

HSBC NOMINEES (NEW ZEALAND
) LIMITED A/C STATE STREET - NZCSD
6,5
19,544
6.
18
3.
BNP P
ARIBAS NOMINEES (NZ) LIMITED - NZCSD
5,
962,409
5.
65
4.

JP
MORGAN CHASE BANK NA NZ BRANCH-SEGREGATED CLIENTS ACCT - NZCSD
2,
676,550
2.54
5.

NA
TIONAL NOMINEES NEW ZEALAND LIMITED - NZCSD
1,885,
919
1.
79
6.

CITIBANK NOMINEES (NEW ZEALAND
) LIMITED - NZCSD
1,863,
406
1.
76
7.
SK
Y HILL LIMITED
1,
264,881
1.
20
8.
A
CCIDENT COMPENSATION CORPORATION - NZCSD
1,
164,603
1.
10
9.

LENG BENG K
WEK
906,
000
0
.86
10.

AMAL
GAMATED DAIRIES LIMITED
684,
980
0
.65
11.
KA
Y HONG CHIAM
4
75,251
0
.45
12.
MFL M
UTUAL FUND LIMITED - NZCSD
463,
297
0
.44
13.

CUS
TODIAL SERVICES LIMITED
39
7,780
0
.38
14.
HSBC NOMINEES (NEW ZEALAND
) LIMITED - NZCSD
3
76,168
0
.36
15.
J
ALAER INVESTMENTS LIMITED
2
75,977
0
.26
16.

GE
OK LOO GOH
168,
002
0
.16
17.

ASB NOMINEES LIMITED

166,
953
0
.16
18.
SIT
A SINGH
15
1,000
0
.14
19.
ASB NOMINEES LIMITED

140
,000
0
.13
20.

HO
WARD CEDRIC ZINGEL
139
,915
0
.13
TOTALS: TOP 20 HOLDERS OF ORDINARY SHARES
100
,425,712
9
5.13
Rank Name Units % of Units
1.
CDL HO
TELS HOLDINGS NEW ZEALAND LIMITED
45,
224,095
85.
75
2.

BNP P
ARIBAS NOMINEES (NZ) LIMITED - NZCSD
2,
945,671
5.5
9
3.
HSBC NOMINEES (NEW ZEALAND
) LIMITED - NZCSD
1,
675,950
3.
18
4.

A
CCIDENT COMPENSATION CORPORATION - NZCSD
9
35,848
1.
77
5.

LENG BENG K
WEK
453,
000
0
.86
6.

NA
TIONAL NOMINEES NEW ZEALAND LIMITED - NZCSD
39
7,131
0
.75
7.

KA
Y HONG CHIAM
211,
324
0
.40
8.
ASB NOMINEES LIMITED

136,
425
0
.26
9.
ALAN D
AVID WHITE
105,
402
0
.20
10.
CUS
TODIAL SERVICES LIMITED <A/C 3>
44,
600
0
.08
11.
JENNIFER GA
YE SIMPSON
43,
000
0
.08
12.

CUS
TODIAL SERVICES LIMITED <A/C 4>
40
,300
0
.08
13.

THE
ODORE JOHN VAN GELDERMALSEN + MARGARET GAY FREEMANTLE
38,
000
0
.07
14.

HO
WARD CEDRIC ZINGEL
31,5
92
0
.06
15.
JO
AN LESLEY THOMPSON
30
,200
0
.06
16.
R
OGER EDWARD HAYWARD + SUSAN ELIZABETH HAYWARD
28,
909
0
.05
17.
SEA AND PEAK E
QUITIES LIMITED
23,
400
0
.04
18.
L
YNNE MARIE MARX-SHEATHER + WALTER BRENT SHEATHER +

PATRICIA VERA SHEATHER + SIMON MIDDLETON PALMER 22,263 0.04
19.
RICHARD ALEXANDER C
OUTTS
2
2,228
0
.04
20.
LING F
OO KOK
20
,134
0
.04
TOTALS: TOP 20 HOLDERS OF REDEEMABLE PREFERENCE SHARES

52,
429,472
99
.40

Millennium & Copthorne Hotels New Zealand Limited
Half Year Report 2018
16
On 23 March 2018, NZX Limited (NZX) granted the Company a waiver from NZX Main Board Listing Rule (Listing
Rule) 5.2.3 in respect of its preference shares for a period of twelve months from 23 March 2018 (the Preference
Shares Waiver).
Listing Rule 5.2.3 provides that a class of securities will generally not be considered for quotation unless those securities
are held by at least 500 members of the public, holding at least 25% of the number of securities of the class issued, with
each member holding at least a minimum holding.
NZX granted the Preference Shares Waiver on the following conditions:
(a) that the directors of MCK certify to NZX Regulation in a form acceptable to NZX Regulation that allowing the
Preference Shares to remain quoted is in the best interests of the holders of the Preference Shares; and
(b) MCK clearly and prominently discloses the waiver, its conditions and the implications in its half-year and annual
reports; and
(c) MCK consistently monitors the total number of Members of the Public holding Preference Shares and the percentage
of Preference Shares held by Members of the Public holdings at least a Minimum Holding; and
(d) MCK notified NZX Regulation as soon as practicable if there are any material changes to the total number
of Members of the Public holding Preference Shares, and / or the percentage of Preference Shares held by Members
of the Public.
On 11 April 2018, NZX also granted the Company a waiver from Listing Rule 5.2.3 in respect of its ordinary shares for a
period of twelve months from 11 April 2018 (the Ordinary Shares Waiver).
NZX granted the Ordinary Shares Waiver on the following conditions:
(a) that MCK clearly and prominently discloses the waiver, its conditions and the implications in its half-year and
annual reports;
(b) that MCK consistently monitors the total number of Members of the Public holding Ordinary Shares and the
percentage of Ordinary Shares held by Members of the Public holdings at least a Minimum Holding; and
(c) MCK notifies NZX Regulation as soon as practicable if there are any material changes to the total number
of Members of the Public holding Ordinary Shares, and / or the percentage of Ordinary Shares held by Members of
the Public.
The implication of these waivers is that the Company’s preference and ordinary shares may not be widely held and
there may be reduced liquidity in both classes of shares.
Shareholder Information and Disclosures
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries

HEAD OFFICE
Head Office Tel: (09) 353 5010
Level 13, 280 Queen Street
PO Box 5640, Wellesley St, Auckland
NATIONAL CONFERENCE OFFICE
Ph: 0800 4 MEETINGS (0800 4 633 846)
Email: meetings@millenniumhotels.co.nz
www.meetingsnz.co.nz
SALES
Email: sales.marketing@millenniumhotels.co.nz
International Sales Tel: (09) 353 5085
Corporate Sales Auckland Tel: (09) 353 5010
Corporate Sales Wellington Tel: (04) 382 0770
CENTRAL RESERVATIONS
Ph: 0800 808 228
Email: central.res@millenniumhotels.co.nz
www.millenniumhotels.com
INTERIM REPORT 2018