MCK 2018 Annual Report
ANNUAL REPORT 2018
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LTD
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | 1
CALENDAR
Annual Report Issued 22 March 2019
Dividend Paid 17 May 2019
Annual Meeting Late May 2019
Half Year End 30 June 2019
Interim Results August 2019
Financial Year End 31 December 2019
CONTENTS
02 Chairman’s Review
04 Managing Director’s Review
08 Directors’ Profiles
09 Hotel Ownership
10 - 14 Corporate Governance
FIN 01 - 30 Financial Statements
FIN 31 - 34 Regulatory Disclosures and
Statutory Information
BK Chiu
Managing Director
Colin Sim
Chairman
REVENUEPROFIT AFTER TAX & NCI
DIVIDENDTOTAL ASSETS
GROUP EQUITYNET ASSET BACKING / SHARE
2018
$218.8m
2018
$49.4m
2018
7.5cps
2018
$640.3m
2018
404.4cps
2014
$130.1m
2014
$30.2m
2014
2.4cps
2014
$585.4m
2014
$371.4m
2014
234.6cps
2016
$172.0m
2016
$40.4m
2016
5.0cps
2016
$713.9m
2016
$489.1m
2016
308.9cps
2015
$136.5m
2015
$21.7m
2015
2.8cps
2015
$590.0m
2015
$389.3m
2015
245.9cps
2017
$187.3m
2017
$43.1m
2017
6.0cps
2017
$828.2m
2017
$588.9m
2017
372.0cps
2018
$898.2m
2 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Financial Performance & Financial
Position
Millennium & Copthorne Hotels New
Zealand Limited (NZX:MCK) is pleased
to report a profit attributable to owners of
the parent of $49.4 million (2017: $43.1
million) for the year ended 31 December
2018.
MCK’s revenue for the year increased
to $218.8 million (2017: $187.3 million)
and profit before tax and non-controlling
interests totaled $85.1 million (2017:
$74.9 million) reflecting positive
hotel performance. Together with the
contribution from majority-owned
residential property developer CDL
Investments New Zealand Limited,
earnings per share increased to 31.21 cents
per share (2017: 27.25 cents per share).
Shareholders’ funds excluding non-
controlling interests as at 31 December
2018 totaled $640.3 million (2017:
$588.9 million). MCK’s total assets at 31
December 2018 was $898.2 million (2017:
$828.2 million) with net asset backing
(with land and building revaluations and
before distributions) as at 31 December
2018 also increasing to 404.41 cents per
share (2017: 371.96 cents per share).
New Zealand Hotel Operations
It was pleasing to see further
improvements in hotel revenue growth in
2018 which reflected both tourism growth
and MCK’s competitiveness. Our Gross
Operating Profit increased by 21.7% with
a 1.9 % point increase in total occupancy
throughout the New Zealand Hotels. Both
increases reflect positive contributions
from M Social Auckland and Millennium
Hotel New Plymouth Waterfront and
the overall results were underpinned
by the steady performances from
MCK’s Queenstown and Rotorua hotels
throughout the year.
Tourism is tied to international events,
both positive and negative but even more
so in New Zealand given its location. New
Zealand is particularly sensitive to negative
wealth effects from the economies of
our visitor countries. However domestic
conditions have had more significant
impacts on the accommodation sector in
2018 and will continue into 2019.
The tight supply of skills continues and
changes to the immigration policies on
work visas have not helped. These have
immediate flow through effects on the
quality of service and costs of doing
business going beyond wage or salary
rates.
Another domestic dampener affecting our
cost of doing business is the Auckland
Council’s Accommodation Provider
Targeted Rate (APTR) continues to impact
the performance and profitability of MCK’s
Auckland hotels. The cost of the council
rates, including APTR, to MCK in 2018 was
63% more in 2018 than the previous year.
To-date council rates have increased
by 109% from 2016 before the APTR
was imposed. This targeted rate, used
to fund ATEED activities, cannot be
passed through to guests as Council
had anticipated erroneously. The direct
effect of the APTR is the erosion of our
operational productivity gains we have
made.
The judicial review action initiated by
various Auckland hotel owner / operators
to which MCK is a party is now well
advanced and will be heard in the High
Court later in 2019.
2019 will see new challenges for tourism
and accommodation providers across
New Zealand. Increased inventory in key
markets such as Auckland will drive new
competitive pressures from new entrants
and existing operators. These international
and domestic shifts necessitates on an
urgent change in managing costs and
revenue in 2019 and into 2020.
CDL Investments New Zealand Limited
(“CDLI”)
CDLI continued to perform strongly
announcing another record operating profit
after tax for the year ended 31 December
2018 of $33.6 million (2017: $32.2 million).
Although it has seen signs of markets
starting to slow down in some areas,
CDLI is well positioned for the medium
term having acquired additional land for
development during 2018 and has a good
pipeline of sections for sale across New
Zealand.
CDLI maintained its ordinary dividend at
3.5 cents per share which MCK will take in
cash when paid in May this year.
Australia Update
During 2018, two apartments at the Zenith
Residences were sold and further units are
being advertised for sale progressively as
their leases come to an end. The rooftop
penthouse area is also available for sale.
Of the remaining leased apartments,
occupancy continued to be positive at
98%. The Board is targeting further sales
in 2019.
Dividend Announcement
In view of the improved result in 2018,
MCK’s Board has resolved to declare
and pay all shareholders a fully imputed
dividend of 7.5 cents per share (2017:
6.0 cents per share). The increased
dividend reflects a sound trading result
over the past 12 months, feedback from
shareholders and the Board’s progressive
dividend policy.
The dividend, payable to all shareholders,
will be paid on 17 May 2019. The record
date will be 10 May 2019.
Outlook
Although there are significant challenges
ahead, the Board is confident that MCK
will do well in 2019. We remain positive
about the year ahead and expect growth in
2019 although slower.
On behalf of the Board, I would like to
thank all of MCK’s management and staff
for their work in 2018.
Colin Sim
Chairman
CHAIRMAN’S REVIEW
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | 3
The Millennium Hotel New Plymouth, Waterfront is located in the heart of the CBD
with panoramic views of the Tasman Sea. Overlooking the Len Lye Wind Wand and
the Coastal Foreshore Walkway, this property is within walking distance of many
of the city’s attractions including the Pukeariki Museum & Information centre, the
Len Lye Centre and Govett Brewster Art Gallery, main street shopping, bars, cafes
and the world famous Pukekura Park featuring the Bowl of Brooklands and Festival
of the Lights.
NEW PLYMOUTH
WATERFRONT
A NEW ADDITION TO THE FAMILY
4 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
MANAGING DIRECTOR’S REVIEW
Ever wonder how visitors spend their money
when they come to New Zealand? The
average number of days a tourist stays in NZ
is around two weeks and 70% will fly into
Auckland before heading to other popular
destinations like Rotorua and Queenstown.
Let’s follow a family of three, mum, dad
and their young daughter on their first visit
to New Zealand. They land in Auckland,
clear immigration, buy some duty free, a
Vodafone sim card, get their rental vehicle
and off they go. First stop will probably be
to Countdown to buy snacks and bottled
water. They marvel at the blue skies and
note that they have only seen one bus. They
will then check into their hotel, freshen up,
take a walk around the Viaduct, and will be
surprised and amused that there are real fish
swimming in the harbour. After that, they’ll
plan for the next day and they choose to
take the Fullers ferry to Waiheke Island.
They will be walking on Queen Street as
they stop in at various places for some quick
shopping. In fact, they will do most of their
shopping closer to their departure - some
(Manuka) honey for gran, some Whittaker’s
chocolates to take back for other family and
friends. The top item on their shopping list
is a double sheepskin for their sitting room.
If the price is right, maybe an alpaca rug.
Like many visitors they would have had a
McDonalds hamburger and chips for lunch
and Pacific Rose apples they bought from
New World. Dinner is a sit-down affair most
likely at a restaurant made popular on social
media and located in the Viaduct.
Their next destination will be Rotorua and
making good on their promise to their
daughter, they will visit Hobbiton and not
the Waitomo Caves. They will fill up at
a petrol station in Matamata. You’d be
surprised at the amount of snacks and
drinks tourists buy from petrol stations.
Their mince & cheese pies and coffee from
that lunch place on the main street are really
good. The daughter has a Tip Top Trumpet,
Mum and Dad, something fancier from
Kapiti. They will top up their sim cards – the
mobile charges are higher here than in most
of the rest of the world and data is more
expensive.
As they drove towards Rotorua, past the
green, undulating farms and the forests they
can’t help noticing the weird smell of the
wind coming into their rental car. That’s
sulphur, explained Dad, as Rotorua is famous
for its geothermal highlights like geysers
and boiling mud as well as natural spas and
mineral pools with different temperatures.
Mum will like the Polynesian Spa.
Much to see and experience in Rotorua.
The sheep show at the Agrodome is a must,
the daughter loves collies and she wants to
be a vet and they also visit the new treetops
excursion, the luge and have dinner at the
top of the gondola ride.
That evening after dinner they will have
mapped out their next must-do lists for the
South Island over the next 5 days. They
will fly to Christchurch on Air New Zealand
and then hire a Toyota Highlander. Driving
south through the Canterbury Plains and
on to Central Otago, the daughter notes the
spectacular views which were right out of
the Lord of the Rings movies. They debate
the must-dos in Queenstown but there
are too many choices - the vineyards, jet
boating, the list goes on.
They will only watch bungy jumping, partly
because it’s scary but also because the
cost of one jump is as much as one night’s
accommodation. Besides, a day trip to the
Milford Sound is spectacular and unique.
And lucky they booked direct with their
hotel in Queenstown as one of the perks
they received was a room with a vista view
of the lake. What a way to end the day, with
a glass of New Zealand wine for Mum and
Dad and some L&P for the daughter as they
relax by enjoying the tranquillity of such
magnificent natural surroundings.
At the end of a fantastic holiday, the
daughter says, “I would like to come back
to New Zealand and study here. Massey
University has a vet course and grandad said
he will help pay for the first two years, you
and dad for the other three. Just say yes!”
So why this parable? Because it
demonstrates the many economic linkages
that tourism brings to New Zealand.
Education and international students are
literally a billion-dollar source of revenue
to the country. Tourism benefits a wide
spectrum of the country – from airlines,
airports, rental vehicle companies, taxis,
transport support services through to
accommodation, bed and breakfasts, holiday
parks, retail shops, food outlets, lunch
places to restaurants, visitor attractions,
supermarkets, telecommunications and
so on. Our rural communities and farmers
benefit as well when tourists come here
and enjoy New Zealand’s rich agricultural
produce.
The statistics I refer to are not a surprise
to anyone who knows the tourism industry
and can be found in the Tourism Satellite
Account which is maintained by the
Ministry of Business, Employment and
Innovation (MBIE). The Monthly Regional
Tourism Estimates from the MBIE are
revealing as well - 42% of total visitor spend
went on retail followed by 18% going to food
and beverage serving services. Passenger
transport (excluding air) accounted for
17% with accommodation only 10% of
total visitor spend. Accommodation is a
smaller part of the cost of a holiday or visit.
Visitors do not come to New Zealand just
to sleep in hotels and motels, they come to
see the country and take in the sights and
experiences. It is therefore incongruous as
to why policy makers would therefore single
out accommodation providers when it is
clear that other sectors see two or even over
three times more visitor spend.
I have made comment previously on the
Auckland Accommodation Providers
Targeted rate (APTR) previously and stated
that it singles out accommodation providers.
MCK maintains that bed taxes and other
similar levies are not the solution – they
are unfair, disproportionate and inefficient.
A lack of consultation and research,
poorly informed analysis and a lack of
accountability, waste and duplication results
in significant and inequitable financial
burdens to a limited sector of the economy.
Rayma Jenkins, President of the Bed &
Breakfast Association of New Zealand has
also said recently that “A bed tax is being
suggested as the solution.....and again
the burden is put on the accommodation
industry when the wider community
benefits. (Tourism) is an industry that brings
spenders to the country, regions, cities,
towns, villages and rural areas. And all New
Zealanders benefit in some form or another
from this industry.” I agree with these
comments.
Visitors spent a total of $39.1 billion in New
Zealand in the year ended March 2018
according to the official statistics of MBIE.
The Government takes in $1.7 billion in GST
but has undertaken limited reinvestment
into this sector. This in turn causes local
governments to impose targeted rates
in Auckland and calling for a bed tax in
Queenstown. Will others follow? Surely
the correct approach must be to do what is
right, look at the facts, have the conviction
and the courage to do the right thing.
B K Chiu
Managing Director
4 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | 5
(Clockwise from left) Nikki from Copthorne Hotel Palmerston North whips up an Old Fashioned at the bar; Copthorne Hotel and Resort;
Queenstown Lakefront with the Remarkables mountain range in the background; One80 Restaurant at Copthorne Hotel Wellington Oriental
Bay’s iconic Beef Wellington; Social dining in the heart of the waterfront at Beast & Butterflies Restaurant at M Social Auckland.
6 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
PARTNERSHIPS FOR
THE FUTURE
M SOCIAL AUCKLAND HOSTS
NEW ZEALAND FASHION WEEK
Millennium Hotels and Resorts New Zealand has been a proud
sponsor of New Zealand Fashion Week for many years and was
an elite sponsor in 2018. M Social Auckland was selected as
the social and accommodation hub for designers, buyers, and
guests coming into town for the fashion festival. To celebrate,
Beast & Butterflies at M Social Auckland created Tirabuzon,
a special cocktail for the fashion-forward consisting of
passionfruit, apple, tequila and lime. A truly fashionable, sweet
and tangy concoction and a refreshing treat for before and after
a show.
The hotel also partnered with Kiwi Tuk Tuk, the only 100%
electric tuk tuk operators in Auckland, to provide guests with a
sustainable way to get around the city. Tuk tuks with M Social
and Beast & Butterflies branding were used to transport guests
in style between the hotel and the Viaduct Event Centre where
the shows were held.
M Social Auckland also ran social media contests with prizes
including tickets to shows for local designers.
Grand Millennium Auckland was also a part of the action playing
host to the model auditions that took place a week earlier. The
Hotel’s Atrium Bar was transformed into a catwalk for model
auditions and approximately 200 models attended the castings
showcasing over 90 designers.
PARTNERSHIP WITH KAPITI CHEESE
In collaboration with Fonterra, Millennium Hotels and Resorts
New Zealand created a National Cheese Festival ‘Festival du
Fromage’ to feature the delectable cheeses part of the Kapiti
Fine Foods range. Fourteen hotels in the group took part by
creating their own cheesy creation to offer to guests in July and
August 2018.
Fonterra supplied each hotel with an ‘inspiration kit’ in order
for our chefs to come up with concepts for their dishes. A
successful joint social media marketing campaign was run to
advertise the festival with both Kapiti and Millennium giving
away a two-night stay and cheese hamper to a lucky winner.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | 7
(Clockwise from left) The Festival Du Fromage promotional image as part of the collaboration with Fonterra for the 2018
National Cheese Festival;
New Generation Runway Show, New Zealand Fashion Week, ANZ Viaduct Events Centre, August 2018;
Not For You Runway Show, New Zealand Fashion Week, ANZ Viaduct Events Centre, August 2018;
Attending IMEX AMERICA 2018 (with Tourism New Zealand, Las Vegas October 2018);
Alison Smith, Director of Sales Conference and Incentives (left) and Tania Barnes Conference and Incentives Business
Development Manager Australia (right) attending the Australian and New Zealand Professional Conference Association
Conference (PCOA) in Melbourne;
M Social Auckland hosted the New Zealand launch of the new Samsung Galaxy Note9, a VIP event with a live art challenge
‘draw off’ between local artists using the building façade as their canvasses.
SAMSUNG
8 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
DIRECTORS’ PROFILES
B K CHIU
Managing Director
Mr Chiu is also the Managing Director of Millennium & Copthorne
New Zealand Limited. Prior to joining the company, Mr. Chiu was
Regional Vice - President and Managing Director, Asia of Merisant
Company. He holds a Masters degree in agricultural economics
and marketing from Massey University, Palmerston North. Mr
Chiu was last re-elected to the Board at the 2017 annual meeting
of shareholders.
COLIN SIM
Chairman & Non-Executive Director
Mr Sim is the executive chairman of the East Quarter Group
of companies (East Quarter Hurstville, EQ Projects and EQ
Constructions) (EQ) in Australia. EQ is currently involved in the
development and construction of residential units across New
South Wales. Mr Sim is also an executive director of Waterbrook
Lifestyle Resorts (Waterbrook); an award-winning creator,
developer and operator of luxury resort lifestyles for retirees.
Mr Sim has strong analytical skills and extensive experience in
construction and property development/investment in Australia.
He studied Mechanical Engineering in London and has lived in
Sydney, Australia for the last 40 years. Mr Sim was appointed to
the board in 2017.
KIAN SENG TAN
Non-Executive Director
Mr Tan was appointed to the Board effective from 28 February 2017
as a non-executive director.
Mr Tan is the Interim Group CEO of Millennium & Copthorne Hotels
plc. Mr Tan’s management background includes over 30 years of
senior executive level experience managing SGX-listed businesses
and US multinational corporations. His diverse experience
incorporates operations, financial management, legal and investor
relations, purchasing, business development, human resources,
and information technology functions. He started his career as an
accountant in the U.K. and audit manager in Malaysia with the audit
firms currently known as Deloitte and PricewaterhouseCoopers
respectively. Mr Tan is an associate of the Institute of Chartered
Accountants in England and Wales. Mr Tan was elected to the
Board at the 2017 annual meeting of shareholders.
KEVIN HANGCHI
Non-Executive Director
Mr Hangchi is currently Senior Vice President, Hong Leong
Management Services Pte. Limited. He has global transactional
experience across many of the Hong Leong Group’s entities
including listings and public offerings, mergers and acquisitions
as well as capital markets issuances and banking facilities. Mr
Hangchi has been called to the English and Singaporean bars
and holds an honours degree in Accountancy and Law from
the University of Southampton. Mr Hangchi was elected to the
Board at the 2018 annual meeting of shareholders.
RICHARD BOBB
Independent Director, Chair of the Audit Committee
Mr Bobb is a Chartered Accountant and Chartered Tax Advisor
with over forty years’ experience. He is currently a member of the
Professional Conduct Appeals Tribunal of Chartered Accountants
Australia and New Zealand (formerly known as the Institute of
Chartered Accountants in Australia) and was a member of New
South Wales Joint State Taxes Committee of Chartered Accountants
ANZ and CPA Australia. He was also a member and past Chairman
of the Joint Legislation Review Committee and a member and past
Chairman the Legislation Review Board of Chartered Accountants
ANZ and CPA Australia. He is admitted as a Barrister in New South
Wales and holds a Bachelor Commerce degree from the University
of NSW, a Diploma in Law from the Barristers Admission Board
(NSW) and a Master of Laws from the University of Sydney. He also
holds a Graduate Diploma in Applied Finance and Investment from
the Securities Institute of Australia (now known as the Financial
Services Institute of Australasia (“FINSIA”)) and is a Fellow of FINSIA.
Mr Bobb was last re-elected to the Board at the 2018 annual
meeting of shareholders.
GRAHAM MCKENZIE
Independent Director, Member of the Audit Committee
Mr McKenzie is a Barrister and Solicitor with over thirty years
experience in corporate and commercial law and is a former
Partner and Consultant to Bell Gully, a leading New Zealand
law firm. He is currently a member of the New Zealand Law
Society Disciplinary Tribunal. Mr McKenzie is a member of
the New Zealand Law Society and the Queensland Law Society,
Australia and holds a Bachelor of Laws degree from Victoria
University, Wellington and a Master of Laws degree from
Warwick University, England. Mr McKenzie was a Director of
CDL Investments New Zealand Limited from 2005 to 2006.
Mr McKenzie was last re-elected to the Board at the 2017 annual
meeting of shareholders.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | 9
QUANTUM LIMITED
MILLENNIUM &
COPTHORNE HOTELS
NEW ZEALAND LIMITED
OWNED
Millennium Hotel Queenstown
Copthorne Hotel Auckland City
Copthorne Hotel Rotorua
Copthorne Hotel Palmerston North
Copthorne Hotel Wellington Oriental Bay
Copthorne Hotel & Apartments
Queenstown Lakeview
Kingsgate Hotel Dunedin
FRANCHISED
Millennium Hotel & Resort
Manuels Taupo
Copthorne Hotel & Resort Hokianga
Copthorne Hotel Grand Central New
Plymouth
Copthorne Hotel & Resort Solway
Park Wairarapa
Kingsgate Hotel The Avenue
Wanganui
OWNED
Millennium Hotel New Plymouth
Waterfront
Millennium Hotel Rotorua
M Social Auckland
Copthorne Hotel & Resort Bay of Islands
(49%)
Copthorne Hotel & Resort Queenstown
Lakefront
Kingsgate Hotel Greymouth
Kingsgate Hotel Te Anau
HOTEL OWNERSHIP
Hole In The Rock, Bay Of Islands
MANAGED/FRANCHISED
Grand Millennium Auckland
Kingsgate Hotel Autolodge Paihia
HOSPITALITY
SERVICES LIMITED
10 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels
New Zealand Limited is committed
to maintaining strong corporate
governance in line with best practice
at all times. With that in mind, the
company undertook a review of its
corporate governance framework and
objectives in 2018 and has adopted
the following which, in the Board’s
opinion, complies materially with the
NZX Corporate Governance Code
(“the NZX Code”) as well as the
Financial Markets Authority Corporate
Governance Principles and Guidelines
(the FMA Principles).
PRINCIPLE 1 – ETHICAL BEHAVIOUR
Directors should set high standards of
ethical behaviour, model this behaviour and
hold Management accountable for these
standards being followed throughout the
organisation.
All of MCK’s directors are bound by the
Board’s Code of Ethics which is as follows:
• Directors shall undertake their duties
with due care and diligence at all times
and will conduct themselves honestly
and with integrity. Directors shall not do
anything, or cause anything to be done,
which may or does bring MCK or the
Board into disrepute.
• All Directors must act in the best
interests of the company and exercise
unfettered and independent judgement.
All Directors must carry out their
duties with integrity and honesty and
participate in open and constructive
discussions.
• To the best of their ability, Directors will
use reasonable endeavours to ensure
that MCK’s records and documents
(including its financial reports) are
true and complete and comply with
the requisite reporting standards and
controls.
• So that the Board may determine a
Director’s independence and to ensure
that there are no conflicts of interest,
all Directors shall promptly disclose
all relevant business and / or personal
interests they may have to the Board
forthwith as well as any relationships
they may have with MCK.
• All Directors shall ensure that they do
not support any organisation other than
in a personal capacity without the prior
written approval of the Chairman.
• Directors shall not accept any gifts or
personal benefits from external parties
if it could be perceived that this could
compromise or influence any decision by
the Board or by MCK.
• All Directors shall maintain and protect
the confidentiality of all information
about MCK at all times except where
disclosure is permitted or required by
law.
• All Directors shall ensure that they do
not use company information and /
or property for personal gain or profit.
All Directors shall use and / or retain
company information and property only
for business purposes in their capacity
as Directors of MCK or to meet legal
obligations.
• All Directors shall comply with the laws
and regulations that apply to MCK.
• All Directors shall immediately report
any illegal or unethical behaviour
of which they become aware to the
Chairman of the Board and to the
Chairman of the Audit Committee.
All of MCK’s employees are expected to act
in the best interests of MCK and to enhance
the reputation of the company. MCK also
has a number of operational policies which
must be followed by employees and the
MCK Code of Conduct forms part of each
employee’s employment agreement.
MCK also believes in fair dealing with its
customers and suppliers, shareholders,
employees and other stakeholders and
external third parties.
MCK has recently revised its Share
Trading Policy which applies to Directors
and Officers. It also has a global
Whistleblowing Policy which extends
to all management and employees. The
Whistleblowing Policy facilitates the
disclosure and impartial investigation of any
serious wrongdoing.
This policy advises employees of their right
to disclose serious wrongdoing, and sets
out the Company’s internal procedures for
receiving and dealing with such disclosures.
The policy is consistent with, and facilitates,
the Protected Disclosures Act 2000 and is
supported by the Board.
CORPORATE GOVERNANCE
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | 11
CORPORATE GOVERNANCE
Large enterprise /
Multinational business or
leadership experience
Chiu, Hangchi, Sim, Tan
Accounting / Finance / Tax
experience
Bobb, Hangchi
Legal or Regulatory
knowledge and experience
Hangchi, McKenzie
Business strategy experienceChiu, Sim, Tan
Property development /
management experience
Chiu, Sim
The Board encourages all directors to
undertake their own continuous education
so that they can perform their duties as
directors and provide maximum benefit to
the Board and to shareholders.
In 2018, MCK also adopted its own
Diversity and Inclusion Policy which is a
separate stand-alone document.
PRINCIPLE 3 – BOARD COMMITTEES
The Board should use committees where this
will enhance its effectiveness in key areas
while still retaining board responsibility.
Committees help the Board in carrying out
its responsibilities and MCK currently has
one standing committee being its Audit
Committee which is comprised solely of
Independent Directors.
The current members of the Audit
Committee are Richard Bobb (Chair) and
Graham McKenzie. The Managing Director
and senior management attend only by
invitation.
loss of experience and expertise from the
Board. MCK’s Constitution specifies a
minimum number of three directors and a
maximum number of nine directors at any
one time. Two directors must ordinarily
be living in New Zealand. In line with the
NZX Main Board Listing Rules, MCK is
required to have at least two Independent
Directors. Currently, MCK has determined
that its Chair Colin Sim and Messrs. Bobb
and McKenzie are Independent Directors
as none of them have a Disqualifying
Relationship (as that term is defined in
the NZX Main Board Listing Rules) or
Substantial Product Holders. Messrs Chiu,
Hangchi and Tan are not considered by the
Board to be Independent Directors.
Board meetings are generally held quarterly
with additional meetings convened when
required. The table below details directors’
attendances during 2018.
DirectorMeetings attended in 2018
Colin Sim (Chair)2/3
Kian Seng Tan3/3
BK Chiu (Managing Director)3/3
Kevin Hangchi3/3
Richard Bobb3/3
Graham McKenzie3/3
In 2018, the Board devised its own Skills
Matrix to demonstrate the skills, experience
and diversity of its Board.
Skill / AttributeRelevant Director
Retail, marketing, brand and
sales experience
Chiu
Governance Experience
Chiu, Hangchi,
McKenzie, Sim
PRINCIPLE 2 – BOARD COMPOSITION
AND PERFORMANCE
To ensure an effective Board, there should be
a balance of independence, skills, knowledge,
experience and perspectives.
MCK’s Board has responsibility, control
and oversight of the business activities,
strategic direction and the governance
of MCK and its subsidiary companies. It
looks at how the company is operating,
how risk and compliance are managed,
approving financial and other reports
and capital expenditure and reporting to
MCK’s shareholders. The Board approves
MCK’s budgets and business plans as well
as significant projects and has statutory
obligations for other matters such as
the payments of dividends and the issue
of shares. The Board is accountable to
MCK’s shareholders for the company’s
performance.
Certain powers are delegated to Board
Committees and Subcommittees. The
role of the Committees is detailed under
Principle 3.
Day-to-day management is delegated to the
Managing Director and senior management.
The levels of authority are approved by way
of a Delegated Authorities Manual which
is reviewed by the Audit Committee and
ultimately approved by the Board.
Appointments to the Board are considered
by the Board and the Board takes into
account the skills required to allow it to
carry out its functions and governance role.
The Board does not impose a restriction on
the tenure of any Director as it considers
that such a restriction may lead to the
View from balcony at Millennium Hotel Waterfront New Plymouth
12 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
The table below reports attendance of the
Audit Committee members during 2018:
DirectorMeetings attended in 2018
Richard Bobb2/2
Graham McKenzie2/2
The Board also forms subcommittees as
and when required.
MCK does not currently have a
Remuneration or Nominations Committee.
The Board as a whole deals with the issues
that would normally be dealt with by these
committees and conducts periodic reviews
of its fees and the remuneration of the
Managing Director and senior management.
Vacancies and appointments to the Board
are considered by the Board as a whole.
For those reasons, MCK does not consider
it necessary to form and maintain either
Committee at this time.
MCK has in the past formed a Due
Diligence Committee (DDC) to oversee,
review and report on material or complex
transactions and will do so when required.
The DDC will comprise only of Independent
Directors, members of senior management
and external advisors directly involved in
the transaction.
The Board has not established a protocol
which sets out procedures to be followed in
the event of a takeover offer being received
by the Company. This is because the
Board considers that receipt of a takeover
offer to be a very unlikely event in light
of CDL Hotels Holdings New Zealand
Limited’s long-term majority shareholding
in the Company. MCK is also the owner
of property assets including “sensitive
land” (as defined under the Overseas
Investment Act 2015) which, if the subject
of an overseas takeover offer, would require
regulatory and / or government approvals
for their acquisition.
MCK’s Board believes that the Company
would have sufficient time to adopt
protocols and procedures necessary to
respond to any such offer when received
and to communicate those to shareholders.
MCK’s Board therefore believes that it
is reasonable and appropriate for the
Company not to follow Recommendation
3.6 of the new Code at this time but agrees
with the principles behind Recommendation
3.6.
PRINCIPLE 4 – REPORTING & DISCLOSURE
The Board should demand integrity in
financial and non-financial reporting and
in the timeliness and balance of corporate
disclosures.
As an NZX-listed entity, MCK recognises
the need to ensure that it is fully compliant
in terms of reporting and disclosure and
has in place a Continuous Disclosure
Policy (CDP) which applies to MCK,
its subsidiaries (“Group”), and all their
respective directors and employees. The
Board has appointed the Chairman, the
Chairman of the Audit Committee, the
Managing Director, the Company Secretary
and the Vice President Finance to act as
MCK’s Continuous Disclosure Committee
(the Disclosure Committee). A quorum of
the Disclosure Committee shall consist of
no less than three (3) of these persons.
The Disclosure Committee is responsible
for:
• Determining what information amounts
to material information and must be
disclosed;
• Determining the timing of disclosure of
any information in accordance with the
CDP;
• Approving the content of any disclosure
to NZX (including matters not directly
covered by the CDP);
• Ensuring that all employees and
directors within the Group whom the
Committee considers appropriate
receive a copy of the CDP and
appropriate training with respect to it;
• Developing mechanisms designed to
identify potential material information
(e.g. agenda item on management
meetings); and
• Liaising with legal advisers in respect of
MCK’s compliance with its continuous
disclosure obligations.
The key points from the CDP are:
• No person may release material
information concerning MCK to any
person who is not authorised to receive
it without the approval of the Disclosure
Committee.
• The Board will consider at each
Board meeting whether there is any
information that may require disclosure
in accordance with the CDP, and will
note any disclosures made subsequent
to the prior meeting. Any employee or
director of MCK must inform a member
of the Disclosure Committee as soon as
practicable after that person becomes
aware of any material information.
• The CDP includes a list of incidents
which should be disclosed to a
member of the Disclosure Committee.
The Disclosure Committee must
confer, decide whether disclosure is
required, and coordinate disclosure
of any material information in a form
specified by the Listing Rules as soon as
practicable after it becomes aware of the
existence of material information, unless
it determines:
a. a reasonable person would not expect
the information to be disclosed; and
b. the information is confidential and its
confidentiality is maintained; and
c. one or more of the following applies:
i. it would breach the law to disclose
the information; or
ii. the information concerns an
incomplete proposal or negotiation;
or
iii. the information comprises matters
of supposition or is insufficiently
definite to warrant disclosure; or
iv. the information is generated for
internal management purposes of
MCK or its subsidiaries; or
v. the information is a trade secret.
The Disclosure Committee will ensure that
all Board members, not already aware of the
information, are promptly provided with it.
• The Disclosure Committee is responsible
for MCK’s obligations under the Listing
Rules to release material information
to NZX to the extent necessary to
prevent development or subsistence
of a market for its listed securities
which is materially influenced by false
or misleading information emanating
from the issuer or any associated
person of the issuer; or other persons
in circumstances in each case which
would give such information substantial
credibility.
• All employees of MCK, as soon as
practicable after becoming aware
of a rumour or speculation that is
“generally available to the market”, must
disclose the existence of that rumour
or speculation to a member of the
Disclosure Committee.
• The Disclosure Committee is also
responsible for co-ordinating MCK’s
responses to leaks and inadvertent
disclosures. Even in the event that leaked
or inadvertently disclosed information
is not price sensitive, the Disclosure
Committee should consider whether the
information should be released to NZX via
its market announcement platform in order
to provide investors with equal access.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | 13
• All external communications by MCK
must comply with the CDP, any media
policy and the Company’s rules with
respect to confidential information. No
material information is to be disclosed
to such persons before it is released to
NZX.
• Slides and presentations used in
briefings should be released to NZX for
immediate release to the market.
• Prior to approval and release of MCK’s
half year and full year results, the
Vice President Finance and Company
Secretary are required to provide a
letter of representation to the Board (or
its nominated subcommittee) that the
financial statements have been prepared
in accordance with generally accepted
accounting practice and are correct in all
material respects.
PRINCIPLE 5 – REMUNERATION
The remuneration of directors and executives
should be transparent, fair and reasonable.
The total pool for Directors’ Fees is capped
at $200,000 and was last approved by
shareholders in 1996. In 2018, all non-
executive directors receive a base fee of
NZ$35,000 per annum. The Chair of
the Audit Committee receives a further
NZ$7,000 per annum and member(s) of
the Audit Committee receive NZ$3,500 per
annum. Executive Directors do not receive
Directors’ or Committee fees.
Employee (including the Managing Director
and senior management) remuneration
is made up of two primary components
being a fixed component and a short term
incentive. Remuneration is determined
with reference to market information as
well as the responsibilities of the position,
experience and overall performance. Short
term incentives are designed to reward high
performing employees with appropriate
incentives which are measured on key
performance indicators which are reviewed
and monitored regularly and company
performance. The Company reserves
the right to suspend or adjust incentives
if targets are not met. MCK does not
currently have an employee share plan or a
long term incentive scheme.
Employees are eligible for a range
of benefits including discounted
accommodation at MCK’s hotels in New
Zealand and Millennium & Copthorne
Hotels around the world (subject to
availability).
PRINCIPLE 6 – RISK MANAGEMENT
Directors should have a sound understanding
of the material risks faced by the issuer and
how to manage them. The Board should
regularly verify that the issuer has appropriate
processes that identify and manage potential
and material risks.
While risks are a part of doing business, it
does need to be monitored and addressed.
MCK’s Board, Audit Committee and
Management Team all have a role in
identifying areas of risk and understanding
their impact on the Company as well as
how these areas are to be managed and
mitigated.
MCK’s Management Team is responsible
for the day-to-day identification,
assessment and management of risks
applicable to the Company as well as the
implementation of appropriate controls,
processes and policies to manage such
risks. Management also ensures that there
are training programmes in place to identify,
manage, mitigate or eliminate hazards and
risks in the workplace.
The Audit Committee’s role is to
review and report to the Board on the
adequacy of Management’s oversight and
implementation of risks with particular
regard to financial and operational risks.
The Audit Committee also has oversight of
the Company’s Internal Audit function and
reviews internal audit reports as part of its
duties.
The Board is ultimately responsible for
the oversight and implementation of the
Company’s responses to risk management.
MCK’s Board has identified three main risks
areas being Reputational, Operational and
Financial Risks. Reputational Risks may
arise through errors or omissions by staff or
Management, failed procedures, an incident
that affects guests or staff or external
events. Operational Risks may arise from
change in the competitive or regulatory
environment, customer demand changes or
even failing to keep properties competitive.
Financial risks may arise where earnings or
cashflow change or are affected in some
way due to market conditions or events
within or outside MCK’s control.
MCK has a series of internal controls in
place covering such areas as financial
monitoring and reporting, human resources
and risk management. The primary
responsibility for monitoring and reporting
against internal controls and remedying any
deficiencies lies with Management.
MCK also keeps current insurances
appropriate to its business with reputable
global insurers.
PRINCIPLE 7 – AUDITORS
The Board should ensure the quality and
independence of the external audit process.
External Audit plays a critical role in
ensuring the integrity of financial reporting.
The role of the external auditor is to plan
and carry out an audit of MCK’s annual
financial reports and review the half-yearly
reports. The Audit Committee reviews
the performance and independence of the
external auditors.
MCK has in place an External Auditor
Independence Policy which deals with
the provision of services by the MCK’s
external auditors, auditor rotation and the
relationships between the external auditor
and the Company. The policy states that:
The Audit Committee shall only
recommend to the Board a firm to be
external auditor if that firm:
• would be regarded by a reasonable
investor, with full knowledge of all
relevant facts and circumstances,
as capable of exercising objective
and impartial judgment on all issues
encompassed within the auditor’s
engagement;
• audit partners are members of
Chartered Accountants Australia New
Zealand (CAANZ);
• has not, within two years prior to the
commencement of the audit, had as
a member of its audit engagement
team MCK’s Managing Director, Vice
President Finance, Group Accounting
Manager, or any member of the
Company’s Management who acts in a
financial oversight role.
• does not allow the direct compensation
of its audit partners for selling non-audit
services to MCK.
The general principles to be applied in
assessing non-audit services are as follows:
a. the external auditor should not have
any involvement in the production of
financial information or preparation
of financial statements such that they
might be perceived as auditing their
own work. This includes the provision
of bookkeeping and payroll services as
well as valuation services where such
valuation forms an input into audited
financial information;
b. the external auditor should not perform
any function of management, or be
responsible for making management
decisions;
14 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
c. the external auditor should not
be responsible for the design or
implementation of financial information
systems; and
d. the separation between internal audit
and external audit should be maintained.
MCK’s Audit Committee shall pre-approve
all audit and related services that are to be
provided by the auditor. Aside from core
external audit services, it is appropriate for
the MCK’s auditors to provide the following
services:
• due diligence (except valuations) on
proposed transactions;
• review of financial information where
third party verification is required or
deemed necessary (outside the normal
audit process);
• completion audits / reviews;
• financial model preparation or review;
• accounting policy advice;
• listing advice;
• accounting/technical training; and
• taxation services of an assurance nature.
It is not considered appropriate for MCK’s
external auditors to provide:
• book keeping services related to
accounting records or financial
statements;
• tax planning and strategy services
unless specifically approved by the Audit
Committee;
• appraisal / valuation services including
opinions as to fairness;
• provision of payroll services;
• the design or implementation of
financial information systems;
• outsourced internal audit and risk
management services;
• legal services;
• management functions;
• broker / dealer / investment adviser /
investment banking services;
• advocacy for the Company;
• actuarial services; and
• assistance in the recruitment of senior
management.
These prohibitions apply to all offices of the
audit firm, including overseas offices and
affiliates.
The billing arrangements for services
provided by MCK’s external auditors should
not include any contingent fees.
MCK’s expects that its external auditors
will rigorously comply with their own
internal policies on independence and all
relevant professional guidance, including
independence rules and guidance issued by
CAANZ.
The nature of services provided by MCK’s
auditors and the level of fees incurred
should be reported to the Audit Committee
Chairman semi-annually (or sooner where
requested) to enable the Committee to
perform its oversight role and report back
to the Board. This policy does not prescribe
any particular ratio of non-audit service
fees to audit fees but the Committee shall
monitored the fees and ratio.
The continued appointment of MCK’s
external auditors is confirmed annually by
the Board on recommendation from the
Audit Committee.
Rotation of the lead audit partner or firm
will be required every five years. Lead audit
partners who are rotated will be subject to
a 2 year cooling off period (i.e. 2 years must
expire between the rotation of an audit
partner and that partner’s next engagement
with the Company).
The hiring by MCK of any former lead
audit partner or audit manager must first
be approved by the Chairman of the Audit
Committee. There are no other restrictions
on the hiring of other staff from the audit
firm.
KPMG are currently MCK’s external auditor
and the lead external audit engagement
partner was rotated earlier this year.
The Audit Committee monitors local and
overseas practice on auditor independence
regularly to ensure that this policy remains
consistent with best practice and meets
MCK’s requirements.
MCK’s external auditors also attend the
Company’s Annual Meeting to answer any
questions from shareholders as to the audit
and the content of the Annual Report.
MCK has an internal audit function
to conduct audits and reviews of the
Company’s operations which is independent
of the External Auditors. A programme of
work is developed annually and submitted
to the Audit Committee for approval. The
areas covered by internal audit mainly
centre around those which pose an
operational business risk for MCK’s hotels
and corporate office functions. In this way,
the internal audit function strengthens
MCK’s internal controls and provides the
Audit Committee and the Board with an
assessment of the functioning and overall
adequacy of MCK’s processes.
PRINCIPLE 8 – SHAREHOLDER RIGHTS &
COMMUNICATION
The Board should respect the rights of
shareholders and foster constructive
relationships with shareholders that
encourage them to engage with the issuer.
MCK is committed to providing
shareholders and stakeholders with
timely information on its activities and
performance. MCK does this through a
number of channels including:
• announcements in accordance with
continuous disclosure as required under
the Listing Rules;
• publication of the company’s annual
and interim reports which are sent to all
shareholders; and
• encouraging shareholders to attend the
Annual Meeting in May of each year to
hear the Chairman and the Managing
Director provide updates on the
company’s performance, ask questions
of the Board and vote on the resolutions
to be determined at the meeting.
Resolutions at shareholder meetings are
usually determined by poll where each
ordinary shareholder has one vote per
share.
Relevant communications, copies of annual
reports and key corporate governance
documents and policies are now available
on a dedicated webpage http://mckhotels.
co.nz/investors/
Shareholders also receive a discount
card for use at MCK’s hotels within New
Zealand which provides them with a twenty
percent off Best Available Rate (subject to
availability).
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | 15
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16 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
JIMMY COOK’S KIWI KITCHEN
Jimmy Cook’s Kiwi Kitchen, unique to
Copthorne and Kingsgate hotels in New
Zealand, draws its inspiration from Captain
James Cook, the renowned explorer who
visited New Zealand three times during the
18th Century. In addition to his seafaring
activities, James Cook was known for having a
grasp of nutrition that was ahead of his time.
Using fresh local produce, our chefs combine
the indigenous flavours of New Zealand to
create a relaxed dining environment.
BEAST & BUTTERFLIES
Located within M Social Auckland is Beast &
Butterflies, a casual all-day dining destination
complete with an outdoor terrace. The
tantalising menu features Pacific-Asian
flavours with street food influences including
dishes that showcase the region’s best fresh
seafood.
Or catch up with friends, old or new, at the
Beast & Butterflies Bar. The drinks menu
contains a range of classic and signature
cocktails alongside a comprehensive wine list
encompassing all regions of New Zealand and
around the world.
KATSURA JAPANESE RESTAURANT
Katsura Japanese restaurant specialising
in Steaks, Seafood and Teppanyaki was
established in 1989 and has a dedicated
following amongst Local and International
guests.
Katsura’s Chefs are the first each day into
the seafood market and with over 25 years of
relationships this ensures we get the first pick
and often exclusivity. Katsura also features the
very best in premium Japanese Beers, Whisky
and Sake and twice weekly we showcase our
famous Grand Seafood Buffet.
ONE80 RESTAURANT
Located inside Copthorne Wellington, Oriental
Bay, Executive One80’s award-winning chefs
blend seasonal ingredients with a touch of
city flair. They have created a kitchen culture
that is based on techniques and different
backgrounds, but continuously endeavor to
serve new flavours and textures.
One80° Restaurant is focused in providing
only the best seasonal ingredients & freshest
local market produce. An award winning dining
experience that is uniquely One80° Restaurant
with “views to dine for.’’
SALT ON THE WATERFRONT
Salt is an award winning restaurant located
inside Millennium Hotel New Plymouth
Waterfront, offering stunning sea views from
all tables. The restaurant is an ideal venue
for breakfast, lunch and dinner or simply for
coffee, light meal, or leisurely drink. Guests
can get comfortable in our lounge area
before moving to a table inside or bask in the
sunshine on the large balcony.
Salt On The Waterfront promises an array of
award-worthy dishes expertly prepared using
some of New Zealand’s finest ingredients.
As our guests come
from around the
country and across
the globe, we strive
to serve up the best
local and international
flavours using the
finest ingredients from
around New Zealand.
FINEST
LOCAL & INTERNATIONAL FLAVOURS AT THEIR
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | 17
MILLENNIUM HOTELS & RESORTS IN NEW ZEALAND
1. Grand Millennium Auckland
71 Mayoral Drive, Auckland
Phone +64 6 366 3000
grandmillennium.auckland@millenniumhotels.co.nz
2. Millennium Hotel Rotorua
Cnr Eruera & Hinemaru Streets, Rotorua
Phone +64 7 347 1234
Fax +64 7 348 1234
millennium.rotorua@millenniumhotels.co.nz
3. Millennium Hotel & Resort Manuels Taupo
243 Lake Terrace, Taupo
Phone +64 7 378 5110
Fax +64 7 378 5341
millennium.taupo@millenniumhotels.co.nz
4. Millennium Hotel Queenstown
Cnr Frankton Road & Stanley Street, Queenstown
Phone +64 3 450 0150
Fax +64 3 441 8889
millennium.queenstown@millenniumhotels.co.nz
5. Millennium Hotel New Plymouth Waterfront
1 Egmont St, New Plymouth 4310
Phone +64 6 769 5301
Fax +64 6 769 5302
millennium.waterfront@millenniumhotels.co.nz
1. M Social Auckland
196 - 200 Quay Street, Auckland 1010
Phone +64 9 377 0349
msocial.auckland@millenniumhotels.com
1. Copthorne Hotel & Resort Bay of Islands
Tau Henare Drive, Paihia
Phone +64 9 402 7411
Fax +64 9 402 8200
copthorne.bayofislands@millenniumhotels.co.nz
2. Copthorne Hotel & Resort Hokianga
S.H 12 Omapere, Hokianga
Phone +64 9 405 8737
Fax +64 9 405 8801
copthorne.hokianga@millenniumhotels.co.nz
3. Copthorne Hotel Auckland City
150 Anzac Avenue, Auckland
Phone +64 9 379 8509
Fax +64 9 379 8582
copthorne.aucklandcity@millenniumhotels.co.nz
4. Copthorne Hotel Rotorua
Fenton Street, Rotorua
Phone +64 7 348 0199
Fax +64 7 346 1973
copthorne.rotorua@millenniumhotels.co.nz
5. Copthorne Hotel Grand Central
New Plymouth
42 Powderham Street, New Plymouth
Phone +64 6 758 7495
Fax +64 6 758 7496
copthorne.newplymouth@millenniumhotels.co.nz
6. Copthorne Hotel Palmerston North
110 Fitzherbert Avenue, Palmerston North
Phone +64 6 356 8059
Fax +64 6 356 8604
copthorne.palmerston@millenniumhotels.co.nz
7. Copthorne Hotel & Resort Solway Park
Wairarapa
High Street, South Masterton
Phone +64 6 370 0500
Fax +64 6 370 0501
reservations@solway.co.nz
8. Copthorne Hotel Wellington Oriental Bay
100 Oriental Parade, Wellington
Phone +64 4 385 0279
Fax +64 4 384 5324
copthorne.orientalbay@millenniumhotels.co.nz
9. Copthorne Hotel & Resort Queenstown
Lakefront
Cnr Adelaide Street and Frankton Road, Queenstown
Phone +64 3 450 0260
Fax +64 3 442 7472
copthorne.lakefront@millenniumhotels.co.nz
10. Copthorne Hotel & Apartments
Queenstown Lakeview
88 Frankton Road, Queenstown
Phone +64 3 442 7950
Fax +64 3 442 8066
copthorne.lakeview@millenniumhotels.co.nz
11. Kingsgate Hotel Autolodge Paihia
Marsden Road, Paihia
Phone +64 9 402 7416
Fax +64 9 402 8348
kingsgate.paihia@millenniumhotels.co.nz
12. Kingsgate Hotel The Avenue Wanganui
379 Victoria Avenue, Wanganui
Phone +64 6 349 0044
Fax +64 6 345 3250
kingsgate.wanganui@millenniumhotels.co.nz
13. Kingsgate Hotel Greymouth
32 Mawhera Quay, Greymouth
Phone +64 3 768 5085
Fax +64 3 768 5844
kingsgate.greymouth@millenniumhotels.co.nz
14. Kingsgate Hotel Te Anau
20 Lakefront Drive, Te Anau
Phone +64 3 249 7421
Fax +64 3 249 8037
kingsgate.teanau@millenniumhotels.co.nz
15. Kingsgate Hotel Dunedin
10 Smith Street, Dunedin
Phone +64 3 477 6784
Fax +64 3 474 0115
kingsgate.dunedin@millenniumhotels.co.nz
M COLLECTION
18 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
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MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | 19
Financial Statements – Contents
Consolidated Income Statement FIN 1
Consolidated Statement of Comprehensive Income FIN 1
Consolidated Statement of Changes in Equity FIN 2-3
Consolidated Statement of Financial Position FIN 4
Consolidated Statement of Cash Flows FIN 5-6
Notes to the Financial Statements FIN 7-26
Audit Report FIN 27-30
Regulatory Disclosures and Statutory Information –
Contents
Shareholder Information FIN 31
Waivers from NZX Limited FIN 32
Statutory Information FIN 32-34
FIN 1 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Income Statement
For the year ended 31 December 2018
FIN 1
FIN 1
FIN 1
FIN 1
For the year ended 31 December 2018
FIN 1
FIN 1
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 2
FIN 2
FIN 2
FIN 3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
FIN 3
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 4
FIN 4
The accompanying notes form part of, and should be read in conjunction with, these financial statements
R BOBB, DIRECTOR, 13 February 2019 BK CHIU, MANAGING DIRECTOR, 13 February 2019
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Financial Position
As at 31 December 2018
FIN 4
FIN 5 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
FIN 5
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Cash Flows
For the year ended 31 December 2018
FIN 5
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 6
FIN 6
FIN 6
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Cash Flows – continued
For the year ended 31 December 2016
Group
Group
DOLLARS IN THOUSANDS Note 2016
2015
RECONCILIATION OF NET PROFIT FOR THE YEAR TO CASH FLOWS
FROM OPERATING ACTIVITIES
Profit for the year
50,420 28,372
Adjusted for non-cash items:
Goodwill written off 12 2,823 -
Gain on sale of property, plant and equipment 3 (9) (58)
Depreciation 10 5,837 6,662
Unrealised foreign exchange (gain)/losses (74) 71
Income tax expense 6 20,117 11,645
Gain on insurance claim 2 (4,311) -
74,803 46,692
Adjustments for movements in working capital:
Increase in trade & other receivables 2,120 789
(Increase)/Decrease in inventories (256) 4
Decrease/(Increase) in development properties 8,030 (30,933)
Increase in trade & other payables 3,514 2,791
Increase in related parties 1,497 127
Cash generated from operations 89,708 19,470
Interest expense 5 (2,128) (3,178)
Income tax paid (16,571) (10,563)
Cash inflows from operating activities 71,009 5,729
The accompanying notes form part of, and should be read in conjunction with, these financial statements
Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Cash Flows –
continued
For the year ended 31 December 2018
FIN 6
FIN 7 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 7
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
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 the Financial Markets Conduct Act 2013 and the Financial Reporting Act
2013. The financial statements of the Company for the year ended 31 December 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; development and sale of residential
land in New Zealand; and development and sale of residential units in Australia.
(a) Statement of compliance
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice
(NZ GAAP). They comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRSs) as
appropriate for Tier 1 profit-oriented entities. The financial statements also comply with International Financial Reporting
Standards (IFRSs).
The financial statements were authorised for issuance on 13 February 2019.
(b) Basis of preparation
The financial statements are presented in New Zealand Dollars, rounded to the nearest thousand. They are prepared on
the historical cost basis except that hotel land and buildings are stated at their fair value (refer to Note 9).
The preparation of financial statements in conformity with NZ IFRSs requires management to make judgments, estimates
and assumptions that affect the application of the Group’s policies and reported amounts of assets and liabilities, income
and expenses. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and in any future period affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting
policies that have the most significant effect on the amount recognised in the financial statements are described in Note
23 – Accounting Estimates and Judgements.
(c) Change in accounting policies and new standards adopted in the year
The Group has adopted two standards, NZ IFRS 15 Revenue from Contracts with Customers and NZ IFRS 9 Financial
Instruments, which are mandatory for the financial period beginning on 1 January 2018.
Impact of Adoption of NZ IFRS 15 Revenue from Contracts with Customers
Effective 1 January 2018, the Group applied NZ IFRS 15 for its accounting of revenue from customers. The new
standard replaced NZ IAS 18 Revenue and introduces a principles based five-step model to recognise revenue when a
performance obligation is satisfied by transferring control of a good or service to the customer.
It has been determined that the impact of the new standard is not significant. All revenue of the Group is derived from
the satisfaction of a single performance obligation, which can be the provision of hotel and conference rooms, sale of
food and beverage, rental of property or sale of development property. There has been no change in the timing of
revenue recognition for these performance obligations.
The Group elected to apply the cumulative effect method under NZ IFRS 15, which did not result in an impact on the
financial statements for the year ended 31 December 2018.
Impact of Adoption of NZ IFRS 9 Financial Instruments
Effective 1 January 2018, the Group applied NZ IFRS 9 for its accounting of financial instruments, which included the
adoption of the “expected loss model”, replacing the “incurred loss” impairment model for financial assets that are not
measured at fair value through profit and loss (FVTPL). In accordance with the new standard, the Group’s financial
assets which consist primarily of trade and other receivables, are assessed for impairment on a forward looking basis
taking into consideration not only past events and current conditions, but also forecast future economic conditions.
It has been determined that the impact of NZ IFRS 9 on the Group’s impairment assessment of trade and other
receivables is not significant. Other provisions of NZ IFRS 9 were not considered applicable to the Group’s financial
statements in 2018.
The Group elected to apply the cumulative effect method under NZ IFRS 9 which did not result in an impact on the
financial statements for the year ended 31 December 2018.
The accounting policies have been applied consistently to all periods presented in these financial statements. The
accounting policies are now included within the relevant notes to the consolidated financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 8
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 8
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
•
•
•
FIN 9 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 9
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 10
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 10
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
1. Segment reporting
Operating 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 residential land sections.
• Residential and commercial property development, comprising the development and sale of residential
apartments.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
Operating segments
Hotel Operations
Residential Land
Development
Residential
Property
Development Group
Dollars In Thousands 2018 2017 2018 2017 2018 2017 2018 2017
External revenue 126,478 105,567 85,030 78,667 7,330 3,033 218,838 187,267
Earnings before interest, depreciation
& amortisation 43,826 35,925 45,069 42,526 2,370 799 91,265 79,250 xxxx xxxx
Finance income 1,923 1,778 1,652 2,144 197 150 3,772 4,072
Finance expense (1,748) (1,897) - - - - (1,748) (1,897)
Depreciation and amortisation (8,172) (6,476) (1) (1) (14) (5) (8,187) (6,482)
Profit before income tax 35,829 29,330 46,720 44,669 2,553 944 85,102 74,943
Income tax (expense)/credit (9,565) (6,725) (13,078) (12,507) (503) (615) (23,146) (19,847)
Profit after income tax 26,264 22,605 33,642 32,162 2,050 329 61,956 55,096
Segment assets 617,040 572,697 217,613 191,703 63,527 63,823 898,180 828,223
Investment in associates - - 2 2 - - 2 2
Total assets 617,040 572,697 217,615 191,705 63,527 63,823 898,182 828,225
Segment liabilities (88,083) (87,154) (2,207) (2,160) (1,206) (1,109) (91,496) (90,423)
Tax liabilities (78,178) (71,235) (4,813) (3,433) 178 556 (82,813) (74,112)
Total liabilities (166,261) (158,389) (7,020) (5,593) (1,028) (553) (174,309) (164,535)
Material additions to segment
assets:
Property, plant and equipment
expenditure
14,326 14,463 - - 49 3 14,375 14,466
Residential land development
expenditure
- - 29,329 23,941 - - 29,329 23,941
Purchase of land for residential land
development
- - 51,557 15,139 - - 51,557 15,139
FIN 11 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 11
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
•
•
•
•
•
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 12
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 12
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 13 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 13
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 13
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 14
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 14
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
.
¶
¶¶
¶
¶
¶¶
¶
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-
-
FIN 15 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 15
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 16
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 16
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 17 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 17
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
•
•
•
•
•
•
•
FIN 17
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
•
•
•
•
•
•
•
FIN 17
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
•
•
•
•
•
•
•
FIN 17
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
•
•
•
•
•
•
•
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 18
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 18
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 18
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 19 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 19
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 20
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 20
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 21 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 21
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 21
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 21
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 22
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 22
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 23 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 24
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 26
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
FIN 26
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
•
•
•
•
•
•
FIN 26
Notes to the Consolidated Financial Statements for the year ended 31 December 2018
•
•
•
•
•
•
FIN 27 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
© 2019 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Independent Auditor’s Report
To the shareholders of Millennium & Copthorne Hotels New Zealand Limited
Report on the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of Millennium & Copthorne
Hotels New Zealand Limited (the company) and its
subsidiaries (the group) on pages FIN1 to FIN26:
i.present fairly in all material respects the Group’s
financial position as at 31 December 2018 and
its financial performance and cash flows for the
year ended on that date; and
ii.comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
—the consolidated statement of financial position
as at 31 December 2018;
—the consolidated statements of comprehensive
income, changes in equity and cash flows for
the year then ended; and
—notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 (Revised) Code of
Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the group in relation to taxation compliance, taxation advisory &
scrutineering at the group’s annual meeting of shareholders. Subject to certain restrictions, partners and
employees of our firm may also deal with the group on normal terms within the ordinary course of trading
activities of the business of the group. These matters have not impaired our independence as auditor of the
group. The firm has no other relationship with, or interest in, the group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $4.1 million determined with reference to a benchmark of group profit before
tax. We chose the benchmark because, in our view, this is a key measure of the group’s performance.
FIN 28 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
FIN 28
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements in the current period. We summarise below those matters and our key
audit procedures to address those matters in order that the shareholders as a body may better understand the
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not
express discrete opinions on separate elements of the consolidated financial statements
The key audit matter How the matter was addressed in our audit
1.Valuation of Hotel Land and Building assets
Refer to note 9 of the
consolidated financial
statements.
Hotel land and buildings of
$509.5 million (representing
70% of net assets) are
recognised at fair value in the
financial statements. To
establish fair value, each hotel
is required to undergo an
independent valuation on a tri-
annual basis. In the intervening
years, management complete
an impairment assessment,
and assess whether the
carrying value of each hotel
continues to reflect fair value.
The valuations and impairment
assessments are based on
discounted future cashflow
models which include a number
of assumptions taking into
consideration future economic
and market conditions. The key
assumptions (including forecast
growth, occupancy rates and
revenue per available room) are
inherently judgemental and
consequently a change in the
assumptions could have a
material impact on the
valuations and the carrying
value of the hotel land and
buildings.
Our procedures on the independently valued hotels involved the following:
—Using our own valuation specialist to assist us in assessing the
appropriateness of the valuation model used, including compliance with
relevant accounting standards and alignment to market practice.
—We assessed the scope of work performed, competency, professional
qualifications and experience of the external expert engaged by the group.
—We challenged the key assumptions used within each valuation in
determining the fair value of these hotel assets. This included a comparison
of occupancy rates, revenue per available room, market growth and
expected inflation with externally derived data including external hotel
industry reports.
—We also performed our own assessment of other key inputs such as
estimated future costs, discount rates and terminal multipliers, and
considered the external expert’s estimates with historical hotel performance.
—We performed sensitivities and break-even analysis on the key assumptions.
Our testing indicated that the estimates and assumptions used were reasonable
in the context of the group’s property portfolio.
For those hotels assets that were not valued within the tri-annual valuation cycle,
management assessed these assets for impairment, and assessed whether their
carrying value continues to reflect fair value.
—We considered management’s impairment assessment of each hotel’s
recoverable amount. This included comparing actual hotel performance to
previous forecasts.
—Based on this analysis two hotels warranted a detailed impairment review.
For these hotels we challenged the key assumptions used in determining the
recoverable amount of the hotel land and buildings. We also considered
future forecasts, comparing these to internal plans and external market
information.
—Three hotels were identified where there were indicators the property was
outperforming expectation compared to projections in their previous
valuations. We challenged key assumptions in the cashflow models used by
management to assess that the carrying value of these hotels continues to
reflect fair value.
Our testing indicated that the estimates and assumptions used were reasonable
in the context of the group’s property portfolio.
FIN 29 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
FIN 29
Other information
The Directors, on behalf of the group, are responsible for the other information included in the entity’s Annual
Report. Other information includes the Chairman’s Review, Managing Director’s Review, disclosures relating to
corporate governance, the financial summary and the other information included in the Annual Report. Our
opinion on the consolidated financial statements does not cover any other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have received the Chairman’s Review and have
nothing to report in regards to it. The Annual Report is expected to be made available to us after the date of this
Independent Auditor's Report and we will report the matters identified, if any, to those charged with
governance.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the company, are responsible for:
—the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards;
—implementing necessary internal control to enable the preparation of a consolidated set of financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
—assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial
statements
Our objective is:
—to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error; and
—to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
FIN 30 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
FIN 30
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at
the External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Aaron Woolsey
For and on behalf of
KPMG
KPMG Auckland
13 February 2019
FIN 29
Other information
The Directors, on behalf of the group, are responsible for the other information included in the entity’s Annual
Report. Other information includes the Chairman’s Review, Managing Director’s Review, disclosures relating to
corporate governance, the financial summary and the other information included in the Annual Report. Our
opinion on the consolidated financial statements does not cover any other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have received the Chairman’s Review and have
nothing to report in regards to it. The Annual Report is expected to be made available to us after the date of this
Independent Auditor's Report and we will report the matters identified, if any, to those charged with
governance.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the company, are responsible for:
—the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards;
—implementing necessary internal control to enable the preparation of a consolidated set of financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
—assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial
statements
Our objective is:
—to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error; and
—to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
FIN 31 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
I
REGULATORY DISCLOSURES
20 LARGEST ORDINARY SHAREHOLDERS (as at 1 March 2019) (Listing Rule 3.7.1 c)
Rank Shareholder No. of Securities %
1. CDL HOTELS HOLDINGS NEW ZEALAND LIMITED 74,743,077 70.79
2. BNP PARIBAS NOMINEES (NZ) LIMITED - NZCSD 5,962,409 5.65
3. HSBC NOMINEES (NEW ZEALAND) LIMITED A/C STATE STREET -NZCSD 5,666,701 5.37
4. NATIONAL NOMINEES NEW ZEALAND LIMITED - NZCSD 2,758,417 2.61
5.
JPMORGAN CHASE BANK NA NZ BRANCH-SEGREGATED CLIENTS ACCT -
NZCSD
2,568,748 2.43
6. CITIBANK NOMINEES (NEW ZEALAND) LIMITED - NZCSD 1,873,578 1.77
7. ACCIDENT COMPENSATION CORPORATION - NZCSD 1,164,603 1.10
8. SKY HILL LIMITED 917,449 0.87
9. LENG BENG KWEK 906,000 0.86
10. HSBC NOMINEES (NEW ZEALAND) LIMITED - NZCSD 733,276 0.69
11. AMALGAMATED DAIRIES LIMITED 684,980 0.65
12. KAY HONG CHIAM 475,251 0.45
13. MFL MUTUAL FUND LIMITED - NZCSD 463,297 0.44
14. CUSTODIAL SERVICES LIMITED 399,780 0.38
15. JALAER INVESTMENTS LIMITED 277,977 0.26
16. GEOK LOO GOH 168,002 0.16
17. ASB NOMINEES LIMITED 166,953 0.16
18. SITA SINGH 151,000 0.14
19. ASB NOMINEES LIMITED 140,000 0.13
20. HOWARD CEDRIC ZINGEL 139,915 0.13
NZCSD is the New Zealand Central Securities Depositary and provides a custodial depositary service to its clients and does not have
a beneficial interest in the shares held in its name.
20 LARGEST REDEEMABLE PREFERENCE SHAREHOLDERS (as at 1 March 2019) (Listing Rule 3.7.1 c))
Rank Shareholder No. of Securities %
1. CDL HOTELS HOLDINGS NEW ZEALAND LIMITED 45,224,095 85.75
2. BNP PARIBAS NOMINEES (NZ) LIMITED - NZCSD 2,945,671 5.59
3. HSBC NOMINEES (NEW ZEALAND) LIMITED - NZCSD 1,675,950 3.18
4. ACCIDENT COMPENSATION CORPORATION - NZCSD 935,848 1.77
5. LENG BENG KWEK 453,000 0.86
6. NATIONAL NOMINEES NEW ZEALAND LIMITED - NZCSD 397,131 0.75
7. KAY HONG CHIAM 211,324 0.40
8. ASB NOMINEES LIMITED 136,425 0.26
9. ALAN DAVID WHITE 107,400 0.20
10. CUSTODIAL SERVICES LIMITED 44,600 0.08
11. JENNIFER GAYE SIMPSON 43,000 0.08
12. CUSTODIAL SERVICES LIMITED 40,300 0.08
13. THEODORE JOHN VAN GELDERMALSEN + MARGARET GAY FREEMANTLE 38,000 0.07
14. HOWARD CEDRIC ZINGEL 31,592 0.06
15. JOAN LESLEY THOMPSON 30,200 0.06
16. ROGER EDWARD HAYWARD + SUSAN ELIZABETH HAYWARD 28,909 0.05
17. SEA AND PEAK EQUITIES LIMITED 23,400 0.04
18.
LYNNE MARIE MARX-SHEATHER + WALTER BRENT SHEATHER + PATRICIA
VERA SHEATHER + SIMON MIDDLETON PALMER
22,263 0.04
19. RICHARD ALEXANDER COUTTS 22,228 0.04
20. LING FOO KOK 20,134 0.04
NZCSD is the New Zealand Central Securities Depositary and provides a custodial depositary service to its clients and does not have
a beneficial interest in the shares held in its name.
HOLDINGS SIZE – ORDINARY SHARES (as at 1 March 2019)
Range Total Holders Number of shares Percentage of Issued Capital
1 - 99 5 208 0.00
100 - 199 32 4,844 0.00
200 - 499 469 161,673 0.15
500 - 999 327 231,595 0.22
1,000 - 1,999 212 305,089 0.29
2,000 - 4,999 231 708,564 0.67
5,000 - 9,999 118 834,135 0.79
10,000 - 49,999 89 1,705,006 1.61
50,000 - 99,999 15 1,109,829 1.05
100,000 - 499,999 9 2,039,678 1.93
500,000 - 999,999 3 2,508,429 2.38
1,000,000 - 2 95,969,240 90.90
Rounding 0.01
Total 1512 105,578,290 100.00
HOLDINGS SIZE – REDEEMABLE PREFERENCE SHARES (as at 1 March 2019)
Range Total Holders Number of shares Percentage of Issued Capital
100 - 199 38 5,843 0.01
200 - 499 39 12,067 0.02
500 - 999 25 17,351 0.03
1,000 - 1,999 23 32,781 0.06
2,000 - 4,999 19 69,250 0.13
5,000 - 9,999 12 73,862 0.14
10,000 - 49,999 19 441,545 0.84
100,000 - 499,999 4 908,149 1.72
1,000,000 - 2 51,178,695 97.04
Rounding 0.01
Total 181 52,739,543 100.00
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 32
II
DOMICILE OF ORDINARY SHAREHOLDERS (as at 1 March 2019)
Number Number of shares Percentage of Issued Capital
New Zealand 1,417 102,554,685 97.14
Overseas holders 95 3,023,605 2.86
Total 1,512 105,578,290 100.00
DOMICILE OF REDEEMABLE PREFERENCE SHAREHOLDERS (as at 1 March 2019)
Number Number of shares Percentage of Issued Capital
New Zealand 170 51,984,976 98.57
Overseas holders 11 754,567 1.43
Total 181 52,739,543 100.00
WAIVERS FROM NZX LIMITED
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 that date (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 the Company certify to NZX Regulation that allowing the preference shares to remain quoted is in the best interests of the holders
of the preference shares;
(b) the Company clearly and prominently discloses the waiver, its conditions and the implications in its half-year and annual reports; and
(c) that the Company 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 holding at least a Minimum Holding; and
(d) the Company notifies NZX Regulation as soon as practicable if there are 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 3 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 that
date (the Ordinary Shares Waiver).
NZX granted the Ordinary Shares Waiver on the following conditions:
(a) that the Company clearly and prominently discloses the waiver, its conditions and the implications in its half-year and annual reports; and
(b) that the Company 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 holding at least a Minimum Holding; and
(c) the Company notifies NZX Regulation as soon as practicable if there are 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.
SUBSTANTIAL SECURITY HOLDERS
According to notices given to the Company under the Securities Markets Act 1988, as at 1 March 2019, the substantial security holders in the Company are noted
below:
Securities Class %
CDL Hotels Holdings New Zealand Limited 74,139,077 Ordinary Shares 70.79%
Aberdeen Standard Asia Focus plc 5,962,409 Ordinary Shares 5.65%
Aberdeen Standard Investments (Asia) Limited 13,960,356 Ordinary Shares 13.24%
CDL Hotels Holdings New Zealand Limited is a wholly owned subsidiary of Millennium & Copthorne Hotels plc. As at 1 March 2019, the total number of issued
voting securities of Millennium & Copthorne Hotels New Zealand Limited (all of which are ordinary shares) was 105,578,290. The Company holds 99,547
repurchased ordinary shares as treasury stock.
The total number of non-voting redeemable preference shares was 52,739,543. As these securities are non-voting securities, there is no requirement to provide
substantial security holder notices.
STATUTORY INFORMATION
DIRECTORS (section 211 (1)(i) Companies Act 1993)
As at 31 December 2018, the Company’s Directors were Messrs. C Sim, BK Chiu, R Bobb, K Hangchi, GA McKenzie and KS Tan. Messrs. Chiu, Hangchi and
Tan were appointed by Millennium & Copthorne plc
The gender breakdown of the Board is 6 male directors and 0 female directors. MCK currently has 4 female and 6 male officers.
INTERESTS REGISTER (sections 189 (1) (c) and 211(1)(e) Companies Act 1993)
The Company maintains an Interests Register as required under the Companies Act 1993. For the period under review, the following entries were recorded:
USE OF COMPANY INFORMATION (section 145 Companies Act 1993)
During 2018, the Board did not receive any notices from any Directors of the Company requesting the use of company information which they would have received
in their capacity as Directors which would not otherwise have been available to them.
SHARE DEALING (section 148, Companies Act 1993)
No share dealings by Directors occurred during 2018.
DIRECTORS’ AND ASSOCIATED PERSONS SHAREHOLDINGS (as at 31 December 2018)
Director 2017 2018
C Sim Nil Nil
B K Chiu Nil Nil
K Hangchi Nil Nil
KS Tan Nil Nil
R Bobb Nil Nil
GA McKenzie Nil Nil
FIN 33 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
III
REMUNERATION (section 161 and 211(1)(f), Companies Act 1993)
The total remuneration and value of other benefits earned received by each of the Directors of the Company for the year ending 31 December 2018 was:
Director Remuneration
C Sim 35,000
B K Chiu (*) 598,684
K Hangchi 35,000
KS Tan (*) Nil
R Bobb 42,000
GA McKenzie 38,500
(*)Mr. KS Tan is currently Interim Group Chief Executive Officer of Millennium & Copthorne Hotels plc and Mr. B K Chiu is an employee of the Company. Neither
of these persons received remuneration as a director of the Company or of any of the Company’s subsidiaries.
INDEMNITY AND INSURANCE (section 162, Companies Act 1993)
In accordance with the Company’s constitution, the Company has insured all its Directors and the Directors of its subsidiaries against liabilities to other parties
(except the Company or a related party of the Company) that may arise from their positions as Directors. The insurance does not cover liabilities arising from
criminal actions.
GENERAL DISCLOSURES OF INTEREST (section 140(2), Companies Act 1993)
As at 31 December 2018, the Directors of the Company have made general disclosures of interest in the following companies:
C SIM
Chairman / Director of:
CDL Investments New Zealand Limited
Director of: Autocaps (Aust) Pty Ltd Autocaps Pastoral Division Pty Limited
Autocaps Vogue Pty Limited Bathurst Range Investments Pty Limited Builders Recycling Properties Pty Ltd
Builders Recycling Operations Pty Ltd CS Investments No. 1 Pty Ltd Desert Rose Group Pty Limited
Desert Rose Holdings Pty Limited DMM Investments (NSW) Pty Ltd Dockside Parramatta Pty Limited
Dockside Venues Pty Ltd East Quarter Group Pty Ltd East Quarter Hurstville Pty Limited
EQ Constructions Pty Ltd EQ Equity Pty Ltd EQ Finance Services Pty Limited
EQ Gosford Pty Ltd EQ Projects Pty Ltd EQ Projects Holdings Pty Ltd
EQ Property Holdings Pty Ltd EQ Revesby Pty Ltd EQ Riverside Pty Ltd
EQ Zetland Pty Ltd EQ Zetland Finance Pty Ltd Hurstville NSW Pty Limited
Llenruk Pty Ltd Naxta Pty Ltd New Dale Sim Pty Ltd
PBD Phoenix Pty Limited PCC Devco 1 Pty Limited Phoenix Palm Developments Pty Limited
Preslite Drive Technologies Pty Limited SSK Investments Pty Ltd SSK Investments No 2 Pty Ltd
SSK Investments O/S Pty Ltd Waterbrook Bayview Pty Ltd Waterbrook Bayview Investment Pty Ltd
Waterbrook Bayview Village Management Pty Ltd Waterbrook Bowral Pty Ltd Waterbrook Bowral Investment Pty Ltd
Waterbrook Brand Pty Ltd West Quarter Hurstville Pty Limited
R BOBB
Director of: Bobb Management Pty Ltd Birkenhead Holdings Pty Ltd
Birkenhead Investments Pty Ltd Continental Investments Pty Ltd Furscarbo Pty Ltd
Hotelcorp New Zealand Pty Ltd Kingsgate Hotel Pty Ltd Kingsgate Holdings Pty Ltd
Kingsgate Investments Pty Ltd Melmark Securities Pty Ltd. Millennium & Copthorne Hotels Pty Ltd.
RAB Capital Pty Ltd Star Securities Australia Pty Ltd Trans National Properties Ltd
BK CHIU
Chairman / Director of: Quantum Ltd Waitangi Resort Joint Venture Committee
Director of: All Seasons Hotels & Resorts Ltd CDL Investments New Zealand Ltd
CDL Land New Zealand Ltd Context Securities Ltd Hospitality Group Ltd
Hospitality Leases Ltd Hospitality Services Ltd Kingsgate Hotels & Resorts Ltd
Millennium & Copthorne Hotels Ltd QINZ Holdings (New Zealand) Ltd QINZ (Anzac Avenue) Ltd
K HANGCHI
Director of: CDL Hotels Holdings New Zealand Limited KIN Holdings Limited
Hong Leong Finance Limited Hong Leong Finance Nominees Pte Ltd Hong Leong Nominees (Private) Limited
Millennium Securities Nominees Pte Ltd Millennium Securities Pte Ltd Singapore Nominees Private Ltd
Sun Yuan Holdings Pte Ltd Sun Yuan Overseas Pte Ltd
G A MCKENZIE
Director of: CMO Energy NZ GMACK Consulting Ltd
Luxottica Retail New Zealand Ltd McHarry Holdings Ltd Saw 2015 Ltd
K S TAN
Chairman / President/ Director of: Grand Plaza Hotel Corporation
Director / President of: The Philippine Fund Limited
Internal Director of: CDL Hotels (Korea) Ltd
Executive Director / Chief Executive Officer of: Millennium & Copthorne Hotels plc
Commissioner of: PT Millennium Sirih Jakarta Hotel
Director of: CDL Investments New Zealand Limited
CDL Entertainment & Leisure Pte Ltd City Century Pte Ltd First Sponsor Group Limited
Harbour Land Corporation Hong Leong Hotel Development Limited
Millennium & Copthorne Hotels Management (Shanghai) Limited Millennium & Copthorne International Limited
Rogo Realty Corporation
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018 | FIN 34
IV
EMPLOYEE REMUNERATION (section 211(1) (g) Companies Act 1993)
The number of employees or former employees of the Company and its subsidiaries (excluding publicly listed subsidiaries) who received remuneration and any
other benefits in their capacity as employees, the value of which was or exceeded $100,000 per annum in 2018 are as follows:
Remuneration and value
of other benefits
Number. of
employees
100,001 – 110,000 4
110,001 – 120,000 4
120,001 – 130,000 2
130,001 – 140,000 2
150,001 – 160,000 3
160,001 – 170,000 1
180,001 – 190,000 3
190,001 – 200,000 3
200,001 – 210,000 1
220,001 – 230,000 3
230,001 – 240,000 1
390,001 – 400,000 1
590,001 – 600,000 1
DONATIONS (section 211(1)(h) and (2)
The Company and its subsidiaries made donations to charity totaling $319 during the year.
AUDIT FEES (section 211(1)(j) and (2)
During the period under review, the following amounts were payable to the external auditors KPMG:
2017 ($’000) 2018 ($’000)
New Zealand Australia New Zealand Australia
Annual Audit
283 23 292 25
KPMG Other Services
52 nil 64 nil
SUBSIDIARY COMPANIES AND DIRECTORS (section 211(2) of the Companies Act 1993)
The Company’s subsidiaries and their directors as at 31 December 2018 are listed below:
NAME DIRECTORS OWNERSHIP ACTIVITY
All Seasons Hotels and Resorts Ltd
BK Chiu, JB Pua 100% Non-trading
Birkenhead Holdings Pty Ltd
R Bobb, JB Pua 100%
Holding Company (Australia)
Birkenhead Investments Pty Ltd
R Bobb, JB Pua 100%
Holding Company (Australia)
CDL Investments New Zealand Ltd ()
C Sim, RJ Austin, BK Chiu,
J Henderson, KS Tan, VWE Yeo
66.42% Holding Company
CDL Land New Zealand Ltd*
BK Chiu, JB Pua 66.42% Property Investment & Development Company
Context Securities Ltd
BK Chiu, JB Pua 100% Investment Holding Company
Hospitality Group Ltd
BK Chiu, N Hood, KF Luxon 100% Holding Company
Hospitality Leases Ltd
BK Chiu 100% Lessee Company
Hospitality Services Ltd
BK Chiu, KF Luxon, JB Pua 100% Hotel Management Company
Hotelcorp New Zealand Ltd
R Bobb, JB Pua 100%
Holding Company (Australia)
KIN Holdings Ltd
JB Pua, K Hangchi 100%
Holding company
Kingsgate Holdings Pty Ltd
R Bobb, JB Pua 100%
Holding Company
Kingsgate Hotels And Resorts Ltd
BK Chiu, JB Pua 100% Franchise Holder
Kingsgate Hotels Ltd
JB Pua 100%
Non-trading
Kingsgate Hotel Pty Ltd
R Bobb, JB Pua 100%
Non-trading (Australia)
Kingsgate Investments Pty Ltd
R Bobb, JB Pua 100%
Residential Apartment Owner (Australia)
Kingsgate International Corporation Ltd
JB Pua, 100%
Holding Company
Millennium & Copthorne Hotels Ltd
BK Chiu, JB Pua 100% Non-trading
Millennium & Copthorne Hotels Pty Ltd
R Bobb, JB Pua 100% Non-trading (Australia)
QINZ (Anzac Avenue) Ltd
BK Chiu, JB Pua 100%
Hotel Owner
QINZ Holdings (New Zealand) Ltd
BK Chiu, JB Pua 100%
Holding Company
Quantum Ltd
BK Chiu, KF Luxon, JB Pua, 100%
Holding company
() Listed on the New Zealand Stock Exchange
* Mr DJ Lindsay ceased to be a director of CDL Land New Zealand Limited on 15 November 2018
--Where the directors of the Company’s subsidiaries are employees of the Company, they do not receive any remuneration or other benefits as a director. Their
remuneration and other benefits are received as employees and are included in the relevant banding under Employee Remuneration.
--The following persons received remuneration as Directors of the Company’s subsidiaries during 2018: C Sim ($37,500), VWE Yeo ($30,000), RJ Austin
($35,000), J Henderson ($30,000).
FIN 35 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2018
THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK
BOARD OF DIRECTORS
Colin Sim (Chairman)
BK Chiu (Managing Director)
Kian Seng Tan (Non-Executive Director)
Kevin Hangchi (Non-Executive Director)
Richard Bobb (Independent Director)
Graham McKenzie (Independent Director)
SENIOR MANAGEMENT
Greg Borrageiro (Director, Information Technology)
Evette Chauvineau (New Zealand Marketing Manager)
Brendan Davies (Director, International Sales & Marketing)
Craig Fletcher (Director, Property Management)
Takeshi Ito (Vice President Legal & Company Secretary)
Karl Luxon (Vice President Operations)
Boon Pua (Vice President Finance)
Kim-Marie Rixson (Vice President Human Resources)
Alison Smith (National Director of Sales, Conferences
and Incentives)
Josie Wilson (National Distribution & Revenue Manager)
REGISTERED OFFICE & CONTACT DETAILS
Level 13, 280 Queen Street, Auckland, New Zealand
PO Box 5640, Wellesley Street, Auckland 1141
Telephone: (09) 353 5010
Facsimile: (09) 309 3244
Website: www.millenniumhotels.com
Email: sales.marketing@millenniumhotels.co.nz
AUDITORS
KPMG, Auckland
BANKERS
ANZ Bank New Zealand Limited
Hong Kong & Shanghai Banking Corporation Limited
SOLICITORS
Bell Gully
SHARE REGISTRAR
Computershare Investor Services Limited,
Level 2, 159 Hurstmere Road, Takapuna,
Private Bag 92119, Auckland 1020, New Zealand
Telephone: +64 9 488 8700
Facsimile: +64 9 488 8787
email: enquiry@computershare.co.nz
STOCK EXCHANGE LISTING:
New Zealand Exchange (NZX)
Company Code: MCK
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
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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