ANNUAL MEETING OF SHAREHOLDERS

SkyCity Entertainment Group Limited
2019 Annual Meeting
18 October 2019

2019 Annual Meeting
Meetingdulyconvened
Quorumpresent
Minutesof2018AnnualMeetingavailableonSkyCity’swebsite

Sequence of Meeting
Chair’sAddress
ChiefExecutiveOfficer’sAddress
BoardCommitteeChairs’Addresses
GeneralQ&Asessiononmanagementandoperationsofbusiness
Tworesolutionsandquestionsrelatingtotheresolutions
Refreshments

Chair’s
Address
Rob Campbell

Chair’s Address
FY19
A sound year, progressing medium-term strategy aimed at
creating both sustainable shareholder returns and enhanced
social and sustainability initiatives
Progressed major projects in Auckland and Adelaide
Divested non-core assets, releasing ~$450 million
Progressed new ventures
Progressed master planning activities across the Group
Consolidated our core casino performance

Chair’s Address
SkyCity today
Set the stage for improved future performance
Strong platform to drive medium-term earnings growth
Management team focused on delivery of strategic plan
Board’s primary role, alongside development of strategy, to
maintain strong discipline on capital allocation
Our vision for SkyCity is to be the leader in gaming,
entertainment and hospitality in our communities

Chair’s Address
Looking out over the next 5 years
Continuing to grow our core gambling business in Auckland
Auckland – an expanded precinct and the leading tourist and
entertainment area in New Zealand
New Zealand International Convention Centre – a world-class
venue of leading architecture and construction
Adelaide – a leading luxury destination in Australia
Operating a regulated online casino business in New Zealand

Chair’s Address
Looking out over the next 5 years
Hamilton and Queenstown
Significant increase in operating earnings following
completion of major projects in Auckland and Adelaide
Steady dividend of 20 cents per share per annum, with
opportunity to grow
Safe entertainment destinations
Digital technology
Zero carbon and industry leading waste management
programmes

Chair’s Address
Looking out over the next 5 years
Industry leading employment practices, training and
development
SkyCity Community Trusts - best in class philanthropic practice
Strong employment pathways
Industry leading surveillance and monitoring, customer
management and exclusion practices
Highest standards of governance practice

Chief
Executive
Officer’s
Address
Graeme Stephens

Group Strategic Plan

FY19FY18
(2)
Movement
$m$m$m%
Reported Revenue
(1)
822.3815.96.40.8%
Reported EBITDA
(1)
297.8310.0(12.2)(3.9%)
Reported NPAT144.6169.5(24.9)(14.7%)
Reported EPS21.4cps25.3cps(3.9cps)(15.4%)
(1)Continuing operations
(2)FY18 reported results have been restated to reflect adoption of NZIFRS 15 (Revenue from Contracts with Customers) and Darwin classification
FY19 Results
FY19FY18Movement
$m$m$m%
Normalised Revenue (incl Gaming
GST)
1,118.91,100.818.11.6%
Normalised EBITDA342.7338.24.51.3%
Normalised NPAT173.0169.93.11.9%
Normalised EPS25.6cps25.4cps0.2cps0.8%
Final Dividend DPS10.0cps10.0cps0.0cps0.0%

Reported earnings down vs prior period due to one-off items
and low International Business win rate
Record Group result (normalised)
Normalised NPAT up 7.5% on like-for-like basis
Record performance in International Business (normalised),
Auckland and Hamilton
Strong electronic gaming machine performance in Auckland
Softer performance in domestic tables
FY19 Highlights

Improved performance in Adelaide on like-for-like basis
(post restructure)
Operating efficiencies mitigating cost pressures
Ongoing investment in ICT
Total dividend of 20cps (5% cash yield), consistent with
existing policy
FY19 Highlights

Comparability of FY20 earnings to FY19 impacted by structural
changes (ie. asset sales and closure of Auckland convention centre)
Adjusted FY19 normalised earnings provides for
better like-for-like comparative
Reduces FY19 normalised EBITDA to $303m and NPAT to $151m
Expect to achieve some growth in FY20 Group normalised
EBITDA vs pcp on like-for-like basis
Expect FY20 Group normalised NPAT to be flat vs prior period
on like-for-like basis
Operating environment to continue to be challenging
with cost pressures
FY20 Outlook

Positive start in New Zealand - particularly Auckland electronic
gaming machines
Reasonable start in International Business (lower turnover/win rate
higher than theoretical)
No change to FY20 earnings guidance
(1)
Trading update: 7 November 2019 – SkyCity Investor Day in Adelaide
Year to Date Trading
(1)Refer to previous page

Project progressing, although slower than previously indicated
NZICC expected to be completed in late 2020
Horizon Hotel expected to be completed before NZICC
Remain comfortable with contractual position
No change to previous guidance for total project costs
(net of liquidated damages)
Focus on establishing new business operations prior to completion
Good pipeline of conventions: APEC in 2021 -marquee event for NZ
Significant number of new jobs to be created
NZICC & Horizon Hotel Project

Project on-time and on-budget
Total project costs remain at A$330m (including contingency)
Opening expected in October 2020 (T20 World Cup Cricket
November 2020)
Walker Corporation advancing car park development at
Festival Plaza (could be up to 6 months delayed)
SA Government regulatory review complete – Bill to allow note
acceptors (amongst other changes) being considered by SA
Parliament
Enhancements to existing building underway
Adelaide Expansion Project

Successfully executed asset sales during 2H19 (Darwin and
Auckland car parks)
Feasibility analysis for Auckland master planning ongoing
Continue to evaluate development opportunities in
Hamilton and Queenstown
Online casino launched in August 2019 in partnership with GiG
Non-gaming attractions secured for Auckland − partnering
with two iconic NZ brands (All Blacks and Weta Workshop)
Key Strategic Initiatives

Focused on capital discipline and improving returns
Immediate priority completing investment on major projects
Major projects funded from existing/planned debt facilities
Future growth investments still being developed/evaluated
~$450m realised from asset sales - used to pay down debt
Low level of gearing
Continuing with share buy back (up to 5% of issued capital)
Committed to current dividend policy (minimum of 20cps)
Capital Allocation

Sustainability at SkyCity
“The aim of SkyCity is to be a business which
succeeds in financial, social and
environmental terms in the long-run”
(1)
(Rob Campbell, SkyCity Chair)
(1)FY19 SkyCity Annual Report

Customers
Ongoing investment in ICT/digital
Continue to refine and enhance host responsibility programme
(facial recognition)
Refreshed brand launched
People
New values agreed with staff –“Own it, Share it, Live it”
Increasing minimum wage in NZ - $20 by 2020
Continue to deliver on health and safety plan – focus on preventing
harm and building awareness
Other Strategic Initiatives

Communities
Refocused SkyCity Community Trusts (particularly youth initiatives)
Launched project to create pathways to employment for youth
Suppliers
Procurement Strategy refocused –prioritisingethical sourcing,
sustainability
and local suppliers
Environment
Taking action on climate change initiatives
Carbon neutral in NZ (Australia 2020)
Creating awareness and reducing emissions
Future developments to adopt green building technologies
Other Strategic Initiatives

Improve operating performance − deliver on earnings guidance
Deliver major projects (NZICC/Horizon Hotel and Adelaide), including
preparing for new business operations
Progress key strategic initiatives
Master planning (including investment in VIP/International
Business gaming in Auckland)
Hamilton and Queenstown
Online gambling
Continue to develop and deliver sustainability and wellbeing
initiatives
FY20 Focus

Positive momentum in business
Delivering on promises and shareholder expectations
Well positioned to unlock value – FY20 transitional year ahead
of new openings
Working on medium-term strategy 2021 and beyond
Focus on capital allocation and shareholder wealth
Seeking to maximise existing assets and leverage core competencies
Strive to be good corporate citizen
Closing Remarks

Bruce Carter
Chair of Audit &
Risk Committee
Chair of Adelaide
Development
Sub-Committee

Activities of Audit & Risk Committee
Complex set of financial statements in FY19
Balance sheet in good shape following recent asset sales
Clear focus from the Board on capital allocation
Stay-in-business capex
Growth projects
Debt repayment
Dividends and capital returns
Strong focus on key risks during FY19

Activities of Adelaide Development
Sub-Committee
Oversee
Delivery of A$330m Adelaide
expansion project
Modernisation of the existing
casino and its integration with
the expanded building
Relationships with State and
private stakeholders in the
Riverbank Precinct

Sue
Suckling
Chair of
Sustainability
Committee

Activities of Sustainability Committee
Protect and enhance our social licence to operate
Strategic pillars
Customers■ People■ Communities
Suppliers ■ Environment
Be responsible hosts
Upgrade of predictive algorithm model at SkyCity Auckland
Facial recognition technology

Activities of Sustainability Committee
Growourcommunities
Pathwaystoemploymentforyouth
Protecttheenvironment
Climatechange
GreenFundandemissionsreduction
Science-basedtargets

Murray
Jordan
Chair of People &
Culture Committee

Activities of People & Culture Committee
Overseeremunerationprogrammeofwork
Continuetomonitorandreportongenderpayequality
Comprehensivediversityandinclusionprogramme
2018 Deloitte Top 200 Diversity & Inclusion Leadership award
Established the SkyCity Inclusion Council at SkyCity Auckland
Achieved Gender Tick accreditation
Joined Women in Gaming and Hospitality Australasia as a
Platinum Partner

Activities of People & Culture Committee
Ensurerobustsuccessionplaninplaceforkeytalent
RefreshedSkyCityvalues
Highlyengagedemployees
Continuefocusonimprovinghealthandsafetyperformance

Richard
Didsbury
Chair of NZICC
Sub-Committee

Activities of NZICC Sub-Committee
Directing and supporting
Management in the
navigation of the delivery of
the
New Zealand International
Convention Centre
Horizon Hotel
Ensuring that the project is
fiscally governed within the
budget set by the Board

Activities of NZICC Sub-Committee
Convention Centre
Iconic building
Strong demand for the
Centre in years ahead
Horizon Hotel
Progress over the past
year
Total project cost

General Questions from
Shareholders
(not relating to the resolutions)

Voting
Votingbywayofpoll
508.7 million proxy votes (representing ~76% of all voting
securities) received by 10am on Wednesday 16 October 2019

Resolution 1
AlterationofConstitution
SkyCity transitioned to the new NZX Listing Rules on 1 March 2019
To comply with the new NZX Listing Rules, SkyCity must alter its
constitution
Copy of the amended constitution tabled at the meeting
Shareholders are being asked to resolve that SkyCity’s existing
constitution be altered with effect from the close of the meeting
The Board unanimously recommends shareholders vote in favour
of altering the current constitution

Resolution 2
RemunerationofAuditor
AuthorisetheDirectorstofixtheauditor'sremuneration
PricewaterhouseCooperscontinuesastheauditorofSkyCity

Conclusion
Place completed voting papers in one of the ballot boxes
If you need a voting paper, please see Computershare in the
foyer after the meeting
Results advised to NZX and ASX later today
Close of meeting
Refreshments

Disclaimer
All information included in this presentation is provided as at
18 October 2019
This presentation has not taken into account any particular
investors investment objectives or other circumstances. Investors
are encouraged to make an independent assessment of SkyCity