MCK FY2022 Results Announcement and Investor Presentation

MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND
RECORDS A PROFIT DESPITE “TOUGH” 2022

Millennium & Copthorne Hotels New Zealand Limited (NZX: MCK) announced its 2022 results earlier today
having recorded a profit after tax and non-controlling interests of $21.7 million.

“2022 was another tough year for everyone in the tourism and accommodation sectors and our results
reflected that. Unlike last year, there were no one-off gains or events to help our results so as in 2021, the
contribution to our profit came from property development activities”, said MCK Chair Colin Sim.

He noted that while the New Zealand hotel operations recorded a loss for the year, that result was not a true
reflection of the work done to address the multiple challenges that the company had to face over the past
twelve months.

“Staffing remains our biggest challenge and we asked a lot of our people last year. We had to overcome
tremendous challenges in 2022 especially during those times during our high season when parts of New
Zealand were still very much under Covid restrictions. Many of those challenges are still here but we believe
that we are over the worst of it and can work towards profit and revenue growth once more”, he said.

MCK declared a dividend for 2022 of 3 cents per share payable on 12 May.

“The Board felt that we should reward our shareholders for sticking with us especially in tough times and
sharing our belief that better days are ahead”, said Mr. Sim.

MCK also signaled that it had started 2023 positively but like a lot of New Zealand it has been affected by
recent weather events in Northland and Auckland. Its hotels had escaped serious physical damage but had
received multiple cancellations which would affect its February revenues. Despite these unforeseen events,
MCK said that it was looking forward to increased business from events such as the FIFA Women’s World
Cup and an uptick in conferencing and the return of international visitors later in the year


“We’re seeing good demand in key market segments and we are looking to add as much business as we
can sustain in our hotels which have the right facilities”, said MCK Managing Director Stuart Harrison. “With
our refurbishment programme well underway, we are very excited to welcome guests to our new rooms at
Millennium Hotel Queenstown and in the near future to our new rooms at Millennium Hotel Rotorua and
Copthorne Hotel & Resort Bay of Islands. We are also working on our programmes for other hotels which
we are planning to commence later this year”, he said.


Summary of results:
• Profit after tax and non-controlling interests

$21.7 million

(2021: $40.0 million)
• Profit before tax and non-controlling interests $44.8 million (2021: $64.6 million)
• Group revenue $144.2 million (2021: $164.8 million)
• Shareholders’ funds excluding non-controlling interests $531.0 million (2021: $514.2 million)
• Total assets $709.2 million (2021: $680.8 million)
• Earnings per share (cents per share) 13.72 cents (2021: 25.31 cents *)
* Amount includes one-off gain from sale of land

ENDS
Issued by Millennium & Copthorne Hotels New Zealand Limited
Enquiries to:
Stuart Harrison
Managing Director
+64 21 869 216

About Millennium & Copthorne Hotels New Zealand Limited

Millennium & Copthorne Hotels New Zealand Limited (NZX:MCK) is the only NZSX listed hotel owner – operator with 18 owned /
leased / franchised hotels based in New Zealand under the Millennium, Grand Millennium, M Social, Copthorne and Kingsgate
brands. As part of the Millennium & Copthorne Hotels group, we are proud to be part of a global network of over 120 properties in
gateway cities across Asia, Europe, North America, the Middle East and New Zealand. MCK is also the majority shareholder in
land developer CDL Investments New Zealand Limited (NZX:CDI) and also has property interests in Australia through its Kingsgate
Group subsidiaries.
For more information, visit our website:
www.millenniumhotels.co.nz

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WELCOME TO OUR WORLD OF HOSPITALITY

18
HOTELS
NATIONWIDE
NEW ZEALAND COVERAGE

FINANCIAL PERFORMANCE -
Actual
Actual
CONSOLIDATED
FY2022
FY2021
Change
Change
$000's
$000's
$
%
Hotel revenue
65,245
55,247
9,998
18.1%
Rental income
3,002
1,942
1,060
54.6%
Property sales
75,951
107,583
(31,632)
(29.4%)
REVENUE
144,198
164,772
(20,574)
(12.5%)
One-Off land Sale
-
15,870
Operating Profit
43,242
64,406
(21,164)
(32.9%)
Net Finance income
1,539
187
1,352
723.0%
Profit before income Tax
44,781
64,593
(19,812)
(30.7%)
Profit for the year
21,713
40,049
(18,336)
(45.8%)
Earnings per share (cents)
13.72
25.31

BALANCE SHEET - CONSOLIDATED
Actual
Actual
FY2022
FY2021
Change
Change
$000's
$000's
$
%
Property plant & equipment
255,279
245,782
Development properties
228,346
215,335
Investment properties
36,381
23,332
Non-current assets
496,970
457,624
39,346
8.6%
Cash and bank deposits
173,333
179,639
TOTAL ASSETS
709,186
680,796
28,390
4.2%
Bank Debt
0
1,000
Other Liabilities
66,485
61,997
NET ASSETS
642,701
617,799
24,902
4.0%
NTA per quoted equity security
3.35
$

3.25
$

Bank FacilitiesActualActual
FY2022FY2021
$000's$000's
HSBC25,00040,000
Utilised01,000
Expiry31-Jan-2431-Jan-22
Secured Property Value37,700199,600

NEW ZEALAND HOTELSActualActual
FY2022FY2021ChangeChange
YoY
Occupancy (%)43.7%36.1%7.6%21.1%
Revenue per available room76.59$ 57.91$ 18.68$ 32.3%
Hotel Revenue65,24555,2479,99818.1%
Rooms Available 1,679
PERSONNEL
Wages, salaries & benefits34,27529,0775,19817.9%
Wages subsidy(222)(3,990)3,768(94.4%)
Personnel expenses34,05325,0878,96635.7%
Hotels Head Count873634

COPTHORNE HOTEL WELLINGTON

FINANCIAL PERFORMANCE -ActualActual
Australia (Owned 100%) FY2022FY2021ChangeChange
$000's$000's$%
Units Available (Open)4151
Number of units sold this year510
Units Available (Close)3641
Currently rented out3236
Rental & Sales Income11,60717,389(5,782)(33.3%)
Profit before income Tax5,4877,340(1,853)(25.2%)
BALANCE SHEET - AustraliaActualActual
FY2022FY2021ChangeChange
$000's$000's$%
Development properties25,19829,594
Cash and bank deposits56,43946,350
TOTAL ASSETS83,87378,8904,9836.3%
Bank Debt00
Other Liabilities2,5051,997
NET ASSETS81,36876,8934,4755.8%

FINANCIAL PERFORMANCE -ActualActual
CDLIFY2022FY2021ChangeChange
$000's$000's$%
REVENUE67,09891,941(24,843)(27.0%)
Operating Profit41,66142,811(1,150)(2.7%)
Net Finance income1,6576121,045170.8%
Profit before income Tax43,31843,423(105)(0.2%)
BALANCE SHEET - CDLIActualActual
(NZX:CDL - Owned 65.99%)FY2022FY2021ChangeChange
$000's$000's$%
Development properties203,148185,741
Investment properties36,38123,332
Non-current assets223,209187,96635,24318.7%
Cash and bank deposits71,74283,025
TOTAL ASSETS313,698297,62216,0765.4%
Bank Debt00
Other Liabilities4,81711,242
NET ASSETS308,881286,38022,5017.9%

COPTHORNE HOTEL
QUEENSTOWN LAKEFRONT

EXPLORE OUR COLLECTIONS
Uniquehotelswithpowerfullydistinctpersonalities
–fromhistoricpropertiestotrendyurbanescapes.
TheLeng'sCollectionhotelsrepresentthelegacyof
ourfounders,theLenggenerationoftheKwek
family.
BrandsintheLeng'sCollectioninclude:TheBailey's
Hotel,TheChelseaHarbourHotel,GrandHotel
PalaceRome,MHotels,StudioMHotels,MSocial.
The global travellers’ choice in gateway cities.
The Millennium Collection hotels are created with
timeless elegance and famed for their conference
and banquet offerings, world-class facilities and the
ultimate in personalized, gracious service. They are
perfect for corporate, leisure, meetings and
conventions.
Brands in the Millennium Collection include: Grand
Millennium Hotels and Millennium Hotels.
Comfortable hotels at a comfortable price. The
Copthorne Collection hotels are firmly established as
a true global brand recognized across the world as
the preferred choice for both business and leisure
travellers in providing comfortable service.
Brands in the Copthorne Collection include:
Copthorne Hotels and Kingsgate Hotels.

DISCLAIMER
This announcement has been prepared by Millennium & Copthorne Hotels New Zealand Limited ("M&C Hotels"). The details in this announcement
provide general information only. It is not intended as investment, legal, tax or financial advice or recommendation to any person and must not be
relied on as such. You should obtain independent professional advice prior to making any decision relating to your investmentorfinancial needs.
All references to $ are to New Zealand dollars unless otherwise indicated. Percentages may be subject to rounding.
This announcement may contain forward-looking statements. Forward-looking statements can include words such as “expect”, “intend”, “plan”,
“believe”, “continue” or similar words in connection with discussions of future operating or financial performance or conditions. The forward-
looking statements are based on management's and directors’ current expectations and assumptions regarding the M&C Hotels business, assets and
performance and other future conditions, circumstances and results. As with any projection or forecast, forward-looking statements are inherently
susceptible to uncertainty and to any changes in circumstances. M&C Hotels actual results may vary materially from those expressed or implied in
the forward-looking statements. M&C Hotels and its directors, employees and/or shareholders have no liability whatsoever to any person for any
loss arising from this announcement or any information supplied in connection with it. M&C Hotels are under no obligation to update this
announcement or the information contained in it after it has been released. Past performance is no indication of future performance.

---

1


CHAIRMAN’S REVIEW
Overview

If we had to use one word to describe 2022, it would be “tough”. The year commenced with a period of lockdowns affecting
our hotels – notably Rotorua and Bay of Islands – and transitioned with borders re-opened but restricted staffing. Like
most businesses in the hospitality and tourism sectors, we were affected by labour and skill shortages across the country
and the intense competition to retain and attract new employees. This continues to be a current on-going challenge.

It was pleasing to have the transition from an Auckland MIQ based focus (in the first half of the year) to an opening of the
international borders and the associated increases in visitor numbers. This was certainly welcome news, particularly for
Queenstown, however the lack of employees at our hotels across the country meant having to adjust our inventory and
service delivery to ensure that all of our guests received a warm welcome and the best possible service you would expect
at any of our New Zealand hotels.

2022 also was a year of change as we bade farewell to long-serving Managing Director BK Chiu and welcomed back
Stuart Harrison to MCK to take BK’s place in July. Stuart has already made an impact with the Board and the hotel teams
and we are very much looking forward to his contribution to our future strategic direction.

On behalf of the Board, we take this opportunity to sincerely thank all of our employees at our hotels and our corporate
offices for their work during the past year. We sincerely appreciate all of your efforts.


Financial Performance & Financial Position

For the year ended 31 December 2022, MCK recorded a profit attributable to owners of the parent of $21.7 million (2021:
$40.0 million).

With no one-off gains recognized during 2022, our majority-owned subsidiary CDL Investments New Zealand Limited
(“CDI”) has been the core contributor to our profits. CDI recorded another strong year with the year concluding a number
of section sales despite a rapid change in the residential markets in the last few months of the year.

MCK’s New Zealand hotel operations recorded a loss before tax of $4.0 million (2021: $2.1 million loss excl. one-off gain
from sale of land). Despite the reopening of the international border, visitor numbers remained comparatively low and
inventory reductions due to the lack of staff also impacted on revenue and profitability.

Our total revenue in 2022 was $144.2 million (2021: $164.8 million) and our earnings per share decreased to 13.72 cents
per share (2021: 25.31 cents per share (incl. one-off gain from sale of land). At 31 December 2022, MCK’s shareholders’
funds excluding non-controlling interests was $531.0 million (2021: $514.2 million). Total assets increased to $709.2 million
(2021: $680.8 million) with net asset backing (with land and building at cost and before distributions) also increasing to
335.4 cents per share (2021: 324.8 cents per share).

New Zealand Hotel Operations

2022 saw our New Zealand hotels record an operating revenue of $65.2 million (2021: $55.2 million) for the year. The
impact of Covid lockdowns and restrictions in place around isolation tempered revenues severely throughout the year.
The initial part of the year was supported by the utilisation of the M Social Hotel (Auckland) as an MIQ and on the
decommissioning and re-opening of borders the recovery commenced in the leisure locations of Bay of Islands,
Queenstown and Rotorua. Whilst there was an increase in revenue the sustained labour shortages and associated
increased costs meant delivering a profitable result for the year was always going to be challenging. The Board consider
the result creditable given the current circumstances but are targeting a return to overall profit this year.

Overall, an occupancy percentage of 43.7% (2021: 36.1%), was achieved with an average RevPAR (Revenue Per
Available Room) of $76.59 (2021: $57.91).

At the coalface, we were pleased to see the completion of the first stage of our refurbishment at Millennium Hotel
Queenstown of 62 rooms. We are already proceeding with the next 145 rooms which will be completed in stages between
May and December 2023.

2


CDL Investments New Zealand Limited (“CDLI”)

CDLI performed well in 2022 nearly matching its 2021 results despite a rapid change in the property markets in late 2022
and recorded an operating profit after tax for the year of $31.2 million (2021: $31.3 million).

CDLI has maintained its dividend at 3.5 cents per share and MCK’s Board has again resolved to take its CDLI dividend
in cash when it is paid in May.

Australia Update

In 2022, a total of five (2021: 10) apartments were sold at the Zenith Residences in Sydney. We continue to own and
manage 36 apartments being predominantly one bedroom units plus some two – three bedrooms units. In 2023, MCK will
continue its plans to gradually sell down its interest in the Zenith Residences.

Dividend Announcement

MCK’s Board has resolved to declare and pay all shareholders a fully imputed dividend of 3 cents per share for 2022. The
dividend, payable to all shareholders, will be paid on 12 May 2023 with a record date of 5 May 2023. The dividend remains
at a sustainable level where shareholders are able to receive a return commensurate with MCK’s current profitability while
still ensuring that the company retains sufficient resources to progress refurbishment and other business critical projects
over the coming year.


Outlook

Although worsening global economic conditions will have an inevitable impact on our performance over the coming year,
there are grounds for optimism as well. Global demand for travel is strong and is expected to remain so during 2023 as
people look to reconnect with family and friends across the world or explore new locations.

We have started 2023 positively with good demand seen in our summer season, but like a lot of New Zealand we have
been affected by recent weather events particularly in Northland and Auckland. While our hotels have escaped any
serious physical damage from the cyclones and flooding, the impact on our revenue and occupancy is still to be
determined. We do believe that there will be continued growth in the second half of 2023 thanks to events such as the
FIFA Women’s World Cup to be held in New Zealand and Australia in July and August.

Conferencing and meeting business is also showing good signs of recovery and growth and we are looking to add as
much business as we can sustain into our hotels which are geared to host such events.

We are excited that our refurbishment programme at Millennium Hotel Queenstown is now well underway along with other
locations being scheduled to be completed in 2024 which will see increased rate growth and clientele coming back to our
key hotels. In addition to the works at Millennium Hotel Queenstown, rooms refurbishment is scheduled to commence at
Copthorne Hotel & Resort Bay of Islands and at Millennium Hotel Rotorua in the second quarter of 2023 after the end of
the current high season.

Our optimism is tempered slightly with some moderate caution - we do not expect the next twelve to eighteen months to
be easy for our business but we also expect that trading conditions will be easier now that overriding restrictions caused
by the pandemic have eased.

Our new product will create a very strong platform which will allow us to deliver stronger returns from 2024 onwards and
the Board will be looking at additional ways to improve and invest in our properties. We therefore expect that 2023 will
be an exciting and critical year as we continue on our recovery journey.

Colin Sim
Chairman
16 February 2023

---

Distribution Notice





Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer
Millennium & Copthorne Hotels New Zealand
Limited
Financial product name/description
Ordinary Shares
NZX ticker code
MCK
ISIN (If unknown, check on NZX
website)
NZMCKE0004S9
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X
Quarterly
Half Year Special
DRP applies
Record date
5 May 2023
Ex-Date (one business day before the
Record Date)
4 May 2023
Payment date (and allotment date for
DRP)
12 May 2023
Total monies associated with the
distribution
1

$3,167,348.70
Source of distribution (for example,
retained earnings)
Retained earnings
Currency
NZD
Section 2: Distribution amounts per financial product
Gross distribution
2

$0.04166667
Gross taxable amount
3

$0.04166667
Total cash distribution
4

$0.03000000
Excluded amount (applicable to listed
PIEs)
n/a
Supplementary distribution amount
$0.00529412
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed
Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.01166667
Resident Withholding Tax per
financial product
$0.00208333
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Not applicable
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Takeshi Ito (Company Secretary)
Contact person for this
announcement
Takeshi Ito (Company Secretary)
Contact phone number
09 353 5005
Contact email address
takeshi.ito@millenniumhotels.com
Date of release through MAP

16/02/2023





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

Distribution Notice





Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer
Millennium & Copthorne Hotels New Zealand
Limited
Financial product name/description
Redeemable Preference Shares
NZX ticker code
MCK
ISIN (If unknown, check on NZX
website)
NZMCKE0005S6
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X
Quarterly
Half Year Special
DRP applies
Record date
5 May 2023
Ex-Date (one business day before the
Record Date)
4 May 2023
Payment date (and allotment date for
DRP)
12 May 2023
Total monies associated with the
distribution
1

$1,582,186.29
Source of distribution (for example,
retained earnings)
Retained earnings
Currency
NZD
Section 2: Distribution amounts per financial product
Gross distribution
2

$0.04166667
Gross taxable amount
3

$0.04166667
Total cash distribution
4

$0.03000000
Excluded amount (applicable to listed
PIEs)
n/a
Supplementary distribution amount
$0.00529412
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed
Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.01166667
Resident Withholding Tax per
financial product
$0.00208333
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Not applicable
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Takeshi Ito (Company Secretary)
Contact person for this
announcement
Takeshi Ito (Company Secretary)
Contact phone number
09 353 5005
Contact email address
takeshi.ito@millenniumhotels.com
Date of release through MAP

16/02/2023





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

Name of issuer
Reporting Period
Previous Reporting Period
Currency
Amount (000s)
Revenue from continuing operations$144,198
Total Revenue$144,198
Net profit/(loss) from continuing operations $21,713
Total net profit/(loss) $21,713
Amount per Quoted Equity Security
Imputed amount per Quoted Equity Security
Record Date
Dividend Payment Date
Prior comparable period
Net tangible assets per Quoted Equity Security$3.25
A brief explanation of any of the figures above
necessary to enable the figures to be understood
Name of person authorised to make this
announcement
Contact person for this announcement
Contact phone number
Contact email address
Date of release through MAP
$0.03000000
Results for announcement to the market
Millennium & Copthorne Hotels New Zealand Limited
12 months to 31 December 2022
12 months to 31 December 2021
NZD
Percentage change
(12.49%)
(12.49%)
(45.78%)
(45.78%)
Final Dividend
16 Feb, 2023
$0.01166667
05 May, 2023
12 May, 2023
Current period
$3.35
Refer to Chairman’s Statement and Media Release
Authority for this announcement
Takeshi Ito – Company Secretary
Takeshi Ito – Company Secretary
+64 9 353 5005
takeshi.ito@millenniumhotels.com

---

FIN 1
Millennium & Copthorne
M
illennium & CopthorneMillennium & Copthorne
Millennium & Copthorne

Hotels New Zealand Limited
Hotels New Zealand Limited Hotels New Zealand Limited
Hotels New Zealand Limited
Consolidated Income Statement
For the year ended 31 December
For the year ended 31 December For the year ended 31 December
For the year ended 31 December 202
202202
2022
22
2


Group
GroupGroup
GroupGroup
GroupGroup
Group
DOLLARS IN THOUSANDS
DOLLARS IN THOUSANDSDOLLARS IN THOUSANDS
DOLLARS IN THOUSANDS

Note
NoteNote
Note

2022
20222022
2022

2021
20212021
2021


Ho
tel revenue 65,245 55,247
Rental income 3,002 1,942
Property sales 75,951 107,583
Revenue
RevenueRevenue
Revenue

144
144144
144,
,,
,198
198198
198

164
164164
164,
,,
,772
772772
772


Cost of sales 3,10 (59,687) (78,513)
Gross profit
Gross profitGross profit
Gross profit 84
8484
84,
,,
,511
511511
511

86
8686
86,
,,
,259
259259
259


Other income 1(
c) - 15,870
Administration expenses 2,3 (22,678) (19,971)
Other operating expenses 2,3 (18,591) (17,752)
Operating profit
Operating profit Operating profit
Operating profit 43
4343
43,
,,
,242
242242
242

64
6464
64,
,,
,406
406406
406


Finance income 4 3,870 1,565
Finance costs 4 (2,331) (1,378)
Net finance income
Net finance incomeNet finance income
Net finance income

1,539
1,5391,539
1,539

187
187187
187


Profit before income tax
Pr
ofit before income taxProfit before income tax
Profit before income tax 44
4444
44,
,,
,781
781781
781

64
6464
64,
,,
,593
593593
593


Income tax expense 5 (12,363) (13,871)
Profit for the year
Profit for the yearProfit for the year
Profit for the year

32
3232
32,
,,
,418
418418
418

50
5050
50,
,,
,722
722722
722


Attributable to:
Attributable to:Attributable to:
Attributable to:
Owners of the parent 21,713 40,049
Non-controlling interests 10,705 10,673
Profit for the year
Profit for the yearProfit for the year
Profit for the year 32
3232
32,
,,
,418
418418
418

50
5050
50,
,,
,722
722722
722


Basic earnings per share (cents) 8 13.72 25.31
Diluted earnings per share (cents) 8 13.72 25.31
Consolidated Statement of Comprehensive Income
For the year ended 31 December
Fo
r the year ended 31 December For the year ended 31 December
For the year ended 31 December 2022
20222022
2022
Group
GroupGroup
GroupGroup
GroupGroup
Group
DOLLARS IN THOUSANDS
DOLLARS IN THOUSANDSDOLLARS IN THOUSANDS
DOLLARS IN THOUSANDS 2022
20222022
2022 2021
20212021
2021
Profit for the year
Profit for the yearProfit for the year
Profit for the year 32
3232
32,
,,
,418
418418
418 50
5050
50,
,,
,722
722722
722
Other comprehensive income
Ot
her comprehensive incomeOther comprehensive income
Other comprehensive income
Items that are or may be reclassified to profit or loss
Items that are or may be reclassified to profit or lossItems that are or may be reclassified to profit or loss
Items that are or may be reclassified to profit or loss
Foreign exchange translation movements 629 (326)
629
629629
629 (326)
(326)(326)
(326)
Total comprehensive income for the year
Total comprehensive income for the yearTotal comprehensive income for the year
Total comprehensive income for the year 33,047
33,04733,047
33,047 50,396
50,39650,396
50,396
Total comprehensive income for the year attributable to :
Total comprehensive income for the year attributable to :Total comprehensive income for the year attributable to :
Total comprehensive income for the year attributable to :
Owners of the parent 22,342 39,723
Non-controlling interests 10,705 10,673
Total comprehensive income for the year
Total comprehensive income for the yearTotal comprehensive income for the year
Total comprehensive income for the year 33
3333
33,
,,
,047
047047
047 50
5050
50,
,,
,396
396396
396
The accompanying notes form part of, and should be read in conjunction with, these financial statements

FIN 2
Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Changes in Equity
For the year ended 31 December
F
or the year ended 31 December
For the year ended 31 December
For the year ended 31 December 202
2022022022
222


Group
GroupGroupGroup

Attributable to equity holders of the Group
Attributable to equity holders of the GroupAttributable to equity holders of the GroupAttributable to equity holders of the Group

DOLLARS IN THOUSANDS
DOLLARS IN THOUSANDSDOLLARS IN THOUSANDSDOLLARS IN THOUSANDS

Share
Share Share Share
Capital
CapitalCapitalCapital

Exchange
Exchange Exchange Exchange
Reserve
ReserveReserveReserve

Retained
Retained Retained Retained
Earnings
EarningsEarningsEarnings

Treasury
Treasury Treasury Treasury
Stock
StockStockStock

Total
TotalTotalTotal

Non
NonNonNon-
---
controlling
controlling controlling controlling
Interests
InterestsInterestsInterests

Total
Total Total Total
Equity
EquityEquityEquity

Balance at 1 January 2022
383,266
383,266383,266383,266
(2,025)
(2,025)(2,025)(2,025)
132
132132132,
,,,974
974974974
(26)
(26)(26)(26)
514
514514514,
,,,189
189189189
103
103103103,
,,,610
610610610 617
617617617,
,,,799
799799799
Movement in exchange translation reserve
-
629
-
-
629
-
629
Total other comprehensive income
-
629
-
-
629
-
629
Profit for the year
-
-
21,713
-
21,713
10,705
32,418
Total comprehensive income for the year
-
629
21,713
-
22,342
10,705
33,047
Transactions with owners, recorded directly in equity: Dividends paid to:
Owners of the parent
-
-
(5,538)
-
-
-
-
Non-controlling interests
-
-
-
-
-
(3,982)
(3,982)
Supplementary dividends
-
-
(112)
-
-
-
(112
Foreign investment tax credits
-
-
112
-
-
-
112
Movement in non-controlling interests without a change in control
-
-
26
-
26
1,349
1,375
Balance at
Balance at Balance at Balance at 31 December 2022
31 December 202231 December 202231 December 2022

383,266
383,266383,266383,266

(1,396)
(1,396)(1,396)(1,396)

149
149149149,
,,,175
175175175

(26)
(26)(26)(26)
531
531531531,
,,,019
019019019
111
111111111,
,,,682
682682682
642
642642642,
,,,701
701701701

The accompanying notes form part of, and should be read in conjunction with, these financial statements

FIN 3
Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne Hotels New Zealand Limited
Consolidated Statement of Changes in Equity
For the year ended 31 December
F
or the year ended 31 December
For the year ended 31 December
For the year ended 31 December 2021
202120212021


Group
GroupGroupGroup

Attributable to equity holders of the Group
Attributable to equity holders of the GroupAttributable to equity holders of the GroupAttributable to equity holders of the Group

DOLLARS IN THOUSANDS
DOLLARS IN THOUSANDSDOLLARS IN THOUSANDSDOLLARS IN THOUSANDS

Share
Share Share Share
Capital
CapitalCapitalCapital

Exchange
Exchange Exchange Exchange
Reserve
ReserveReserveReserve

Retained
Retained Retained Retained
Earnings
EarningsEarningsEarnings

Treasury
Treasury Treasury Treasury
Stock
StockStockStock

Total
TotalTotalTotal

Non
NonNonNon-
---
controlling
controlling controlling controlling
Interests
InterestsInterestsInterests

Total
Total Total Total
Equity
EquityEquityEquity

Balance at 1 January 2021
383,266
(1,699)
93,129
(26)
474,670
95,312 569,982
Movement in exchange translation reserve
-
(326)
-
-
(326)
-
(326)
Total other comprehensive loss
-
(326)
-
-
(326)
-
(326)
Profit for the year
-
-
40,049
-
40,049
10,673
50,722
Total comprehensive income/(loss) for the year
-
(326)
40,049
-
39,723
10,673
50,396
Transactions with owners, recorded directly in equity: Dividends paid to: Non-controlling interests
-
-
-
-
-
(3,914)
(3,914)
Movement in non-controlling interests without a change in control
-
-
(204)
-
(204)
1,539
1,335
Balance at
Balance at Balance at Balance at 31 December
31 December 31 December 31 December 2021
202120212021

383,266
383,266383,266383,266

(2,025)
(2,025)(2,025)(2,025)

132
132132132,
,,,974
974974974

(26)
(26)(26)(26)
514
514514514,
,,,189
189189189
103
103103103,
,,,610
610610610
617
617617617,
,,,799
799799799

The accompanying notes form part of, and should be read in conjunction with, these financial statements

FIN 4
Millennium & Copthorne
Millennium & CopthorneMillennium & Copthorne
Millennium & Copthorne

Hotels New Zealand Limited
Hotels New Zealand Limited Hotels New Zealand Limited
Hotels New Zealand Limited
Consolidated Statement of Financial Position
As at 31 December
As at 31 December As at 31 December
As at 31 December 202
202202
2022
22
2


Group
GroupGroup
GroupGroup
GroupGroup
Group
DOLLARS IN THOUSANDS
DOLLARS IN THOUSANDSDOLLARS IN THOUSANDS
DOLLARS IN THOUSANDS

Note
NoteNote
Note

202
202202
2022
22
2

2021
20212021
2021


SHAREHOLDERS’ EQUITY
SHAREHOLDERS’ EQUITYSHAREHOLDERS’ EQUITY
SHAREHOLDERS’ EQUITY
Issued capital 7 383,266 383,266
Reserves 147,779 130,949
Treasury stock 7 (26) (26)
Equity attributable to owners of the parent
Equity attributable to owners of the parentEquity attributable to owners of the parent
Equity attributable to owners of the parent

5
55
531
3131
31,
,,
,019
019019
019

514
514514
514,
,,
,189
189189
189


Non-controlling interests 111,682 103,610
T
TT
TOTAL EQUITY
OTAL EQUITYOTAL EQUITY
OTAL EQUITY

6
66
642
4242
42,
,,
,701
701701
701

617
617617
617,
,,
,799
799799
799


Represented by:
Represented by:Represented by:
Represented by:


NON CURRENT ASSETS
NON CURRENT ASSETSNON CURRENT ASSETS
NON CURRENT ASSETS


Property, plant and equipment 9 255,279 245,782
Development properties 10 205,308 188,508
Investment properties 11 36,381 23,332
Investment in associates 2 2
Total non
Total nonTotal non
Total non-
--
-current assets
current assetscurrent assets
current assets 4
44
496
9696
96,
,,
,970
970970
970

457
457457
457,
,,
,624
624624
624


CURRENT ASSETS
CURRENT ASSETSCURRENT ASSETS
CURRENT ASSETS


Cash and cash equivalents 12 61,387 58,143
Short term bank deposits 111,946 121,496
Trade and other receivables 13 14,436 15,434
Inventories 1,409 1,272
Development properties 10 23,038 26,827
Total current assets
Total current assetsTotal current assets
Total current assets

2
22
212
1212
12,
,,
,216
216216
216

223
223223
223,
,,
,172
172172
172


Total assets
Total assetsTotal assets
Total assets

709
709709
709,
,,
,186
186186
186

680
680680
680,
,,
,796
796796
796


NON
NON NON
NON CURRENT LIABILITIES
CURRENT LIABILITIESCURRENT LIABILITIES
CURRENT LIABILITIES


Lease liability 22 25,458 15,858
Deferred tax 15 9,717 9,298
Total non
Total nonTotal non
Total non-
--
-current liabilities
current liabilitiescurrent liabilities
current liabilities 3
33
35
55
5,
,,
,175
175175
175

25
2525
25,
,,
,156
156156
156


CURRENT LIABILITIES
CURRENT LIABILITIESCURRENT LIABILITIES
CURRENT LIABILITIES
Interest-bearing loans and borrowings 14 - 1,000
Trade and other payables 16 28,024 30,001
Trade payables due to related parties 20 2,248 3,977
Lease liability 22 233 457
Income tax payable 805 2,406
Total current liabilities
Total current liabilitiesTotal current liabilities
Total current liabilities

3
33
31
11
1,
,,
,310
310310
310

37
3737
37,
,,
,841
841841
841


Total liabilities
T
otal liabilitiesTotal liabilities
Total liabilities

6
66
66
66
6,
,,
,485
485485
485

62
6262
62,
,,
,997
997997
997


NET ASSETS
NET ASSETSNET ASSETS
NET ASSETS

6
66
642
4242
42,
,,
,701
701701
701

617
617617
617,
,,
,799
799799
799


For and on behalf of the board
For and on behalf of the boardFor and on behalf of the board
For and on behalf of the board


LS
LSLS
LS

PRESTON
PRESTONPRESTON
PRESTON,
, ,
, DIRECTOR
DIRECTORDIRECTOR
DIRECTOR,
, ,
, S
SS
SNB
NBNB
NB

HARRISON
HARRISONHARRISON
HARRISON, MANAGING DIRECTOR
, MANAGING DIRECTOR, MANAGING DIRECTOR
, MANAGING DIRECTOR,
,,
,


1
11
16
66
6

February
February February
February 202
202202
2023
33
3



1
11
16
66
6

February
February February
February 202
202202
2023
33
3


The accompanying notes form part of, and should be read in conjunction with, these financial statements

FIN 5
Millennium & Copthorne
Millennium & CopthorneMillennium & Copthorne
Millennium & Copthorne

Hotels New Zealand Limited
Hotels New Zealand Limited Hotels New Zealand Limited
Hotels New Zealand Limited
Consolidated Statement of Cash Flows
For the year ended 31 December
For the year ended 31 December For the year ended 31 December
For the year ended 31 December 202
202202
2022
22
2


Group
GroupGroup
Group

Group
GroupGroup
Group


DOLLARS IN THOUSANDS
DOLLARS IN THOUSANDSDOLLARS IN THOUSANDS
DOLLARS IN THOUSANDS

Note
NoteNote
Note

202
202202
2022
22
2

2
021
20212021
2021


CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Cash was provided from:Cash was provided from:
Cash was provided from:


Receipts from customers 146,085 161,320
Interest received 2,980 1,751
Dividends received 4 1 2
Cash was applied to:
Cash was applied to:Cash was applied to:
Cash was applied to:
Payments to suppliers and employees
(84,544) (62,099)
Purchases of development land 1 (24,607) (56,528)
Interest paid (18)(139)
Income tax paid (13,547) (15,288)
Net cash inflow from operating activities
Net cash inflow from operating activitiesNet cash inflow from operating activities
Net cash inflow from operating activities

26,350
26,35026,350
26,350

29,019
29,01929,019
29,019


CASH FLOWS FROM INVESTING ACTIVITIES
Cash was (applied to)/provided from:
Cash was (applied to)/provided from:Cash was (applied to)/provided from:
Cash was (applied to)/provided from:


Proceeds from the sale of property, plant and equipment 41 10
Proceeds from the sale of asset held for sale -18,000
Purchases of property, plant and equipment 9 (7,148) (3,981)
Purchases of investment property (13,587) (20,077)
Investments in short term bank deposits
9,550 55,778
Net cash
Net cash Net cash
Net cash inflow/(o
inflow/(oinflow/(o
inflow/(outflow
utflowutflow
utflow)
))
)

from investing activities
from investing activitiesfrom investing activities
from investing activities (11
(11(11
(11,
,,
,144)
144)144)
144)

49,730
49,73049,730
49,730


CASH FLOWS FROM FINANCING ACTIVITIES
Cash was (applied to)/provided from:
Cash was (applied to)/provided from:Cash was (applied to)/provided from:
Cash was (applied to)/provided from:


Repayment of borrowings 14 (1,000) (37,000)
Principal repayment of lease liability 22(c) (3,235) (1,577)
Dividends paid to shareholders of Millennium & Copthorne
Hotels New Zealand Ltd 7 (5,538) -
Dividends paid to non-controlling shareholders (3,982) (3,914)
Net cash
Net cash Net cash
Net cash outflow
outflowoutflow
outflow

from financing activities
from financing activitiesfrom financing activities
from financing activities

(13,755)
(13,755)(13,755)
(13,755)

(42,491)
(42,491)(42,491)
(42,491)


Net increase
Net increaseNet increase
Net increase

in cash and cash equivalents
in cash and cash equivalentsin cash and cash equivalents
in cash and cash equivalents

1
11
1,
,,
,451
451451
451

36
3636
36,
,,
,258
258258
258


Add opening cash and cash equivalents 58,143 20,766
Exchange rate adjustment 1,793 1,119
C
losing cash and cash equivalents
Closing cash and cash equivalents Closing cash and cash equivalents
Closing cash and cash equivalents 12

61
6161
61,
,,
,387
387387
387

58,143
58,14358,143
58,143


The accompanying notes form part of, and should be r
ead in conjunction with, these financial statements

FIN 6
Millennium & Copthorne
Millennium & CopthorneMillennium & Copthorne
Millennium & Copthorne

Hotels New Zealand Limited
Hotels New Zealand Limited Hotels New Zealand Limited
Hotels New Zealand Limited
Consolidated Statement of Cash Flows – continued
For the year ended 31 December
For the year ended 31 December For the year ended 31 December
For the year ended 31 December 202
202202
2022
22
2


Group
GroupGroup
Group

Group
GroupGroup
Group


DOLLARS IN THOUSANDS
DOLLARS IN THOUSANDSDOLLARS IN THOUSANDS
DOLLARS IN THOUSANDS

Note
NoteNote
Note

202
202202
2022
22
2

2021
20212021
2021


RECONCILIATION OF NET PROFIT FOR THE YEAR TO CASH FLOWS
FROM OPERATING ACTIVITIES
Profit for the year
Profit for the yearProfit for the year
Profit for the year

32,418 50,722
Adjusted for non
Adjusted for nonAdjusted for non
Adjusted for non-
--
-cash items:
cash items:cash items:
cash items:


G
ain on sale of property, plant and equipment
2
(20)(5)
Gain on sale of asset held for sale -(15,870)
D
epreciation of property, plant and equipment and investment property
9, 11
7,353 7,417
Depreciation of Right-Of-Use assets
9
968 961
Unrealised foreign exchange losses 10 115
Income tax expense
5
12,363 13,871
5
55
53
33
3,
,,
,092
092092
092

57
5757
57,
,,
,211
211211
211


Adjustments for movements in working capital:
Adjustments for movements in working capital:Adjustments for movements in working capital:
Adjustments for movements in working capital:


(
Increase)/Decrease in trade & other receivables 998 (3,264)
(Increase)/Decrease in inventories (137)80
(Increase)/Decrease in development properties (12,654) (16,272)
I
ncrease in trade & other payables 344 7,204
(Decrease) in related parties (1,729) (513)
Cash generated from operations
Cash generated from operationsCash generated from operations
Cash generated from operations

39
3939
39,
,,
,914
914914
914

44
4444
44,
,,
,446
446446
446


Interest paid (17)(139)
Income tax paid (13,547) (15,288)
Cash inflows from operating activities
Cash inflows from operating activities Cash inflows from operating activities
Cash inflows from operating activities
2
22
26
66
6,
,,
,350
350350
350

29
2929
29,
,,
,019
019019
019


Reconciliation of movement of liabilities to cash flows arising from
Reconciliation of movement of liabilities to cash flows arising from Reconciliation of movement of liabilities to cash flows arising from
Reconciliation of movement of liabilities to cash flows arising from
financing activities
financing activitiesfinancing activities
financing activities


As at 01 January

1,000

38,000


Proceeds from borrowings

-

-


Repayment of term loans


(1,000)

(37,000)


Financing cash flows
Financing cash flowsFinancing cash flows
Financing cash flows


(1,000
(1,000(1,000
(1,000)
))
)

(
((
(37
3737
37,000)
,000),000)
,000)


As at 31 December

-
--
-1
11
1,000
,000,000
,000
The accompanying notes form part of, and should be read in conjunction with, these financial statements

FIN 7
Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
Significant accounting policies
Significant accounting policiesSignificant accounting policies
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 2022 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; investment properties comprising commercial warehousing and retail shops in New Zealand; and development and
sale of residential units in Australia.
(a) Statement of compliance
(a) Statement of compliance(a) Statement of compliance
(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 16 February 2023.
(b) Basis of preparation
(b) Basis of preparation(b) Basis of preparation
(b) Basis of preparation


The financial statements are presented in the Company’s functional currency of New Zealand Dollars, rounded to the
nearest thousand. They are prepared on the historical cost basis and on a going concern basis.
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 21
– Accounting Estimates and Judgements.
(c)
(c) (c)
(c) Change in
Change in Change in
Change in accounting policies
accounting policiesaccounting policies
accounting policies

and new standards adopted in the year
and new standards adopted in the yearand new standards adopted in the year
and new standards adopted in the year


The accounting policies have been applied consistently to all periods presented in these consolidation financial statements.
The accounting policies are now included within the relevant notes to the consolidated financial statements.
(
((
(d
dd
d) Foreign currency
) Foreign currency) Foreign currency
) Foreign currency
Foreign currency transactions
Foreign currency transactionsForeign currency transactions
Foreign currency transactions


Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies at the balance date are translated to New Zealand dollars at the
foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income
statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are
translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign
currencies that are stated at fair value are translated to New Zealand dollars at foreign exchange rates ruling at the dates
the fair value was determined.
(
((
(e
ee
e)
) )
) Insurance proceeds
Insurance proceedsInsurance proceeds
Insurance proceeds


Compensation from third parties for items of property, plant and equipment that were damaged, impaired, lost or given up
is included in the profit or loss when the compensation becomes virtually certain. Any subsequent purchase or construction
of replacement assets are separate economic events and are accounted for separately.
(
((
(f
ff
f) Revenue
) Revenue) Revenue
) Revenue


Revenue from sale of goods and services in the ordinary course of business is recognised when the Group satisfies a
performance obligation by transferring control of a promised good or service to the customer. The amount of revenue
recognised is the amount of the transaction price allocated to the satisfied performance obligation.
Revenue represents amounts derived from:
•The ownership, management and operation of hotels: recognised on an accruals basis to match the provision
of the related goods and services.
•Income from property rental: recognised on an accruals basis, straight line over the lease period. Lease
incentives granted are recognised as an integral part of the total rental income.
•Income from development property sales: recognised when the customer obtains control of the property and is
able to direct and obtain the benefits from the property. The Group grants deferred settlement terms of up to 12
months on certain sections. The total value of these deferred settlements amounted to $17 million (2021: $14
million). In some instances the acquirers are permitted access to the residential sections for building activities
prior to settlement. However, the acquirer does not obtain substantially all of the remaining benefits of the asset
until final settlement of the land and title has passed.

FIN 8
M
MM
Mi
ii
illennium & Copthorne
llennium & Copthornellennium & Copthorne
llennium & Copthorne

Hotels New Zealand Limited
Hotels New Zealand Limited Hotels New Zealand Limited
Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
Index
1. Segment reporting
2. Administration and other operating expenses
3
. Personnel expenses
4. Net finance income
5
. Income tax expense
6. Imputation credits
7. Capital and reserves
8. Earnings per share
9. Property, plant and equipment
1
0. Development properties
11. Investment properties
12. Cash and cash equivalents
13. Trade and other receivables
14. Interest-bearing loans and borrowings
15. Deferred tax assets and liabilities
1
6. Trade and other payables
17. Financial instruments
18. Capital and land development commitments
19. Related parties
20. Group entities
21. Accounting estimates and judgements
22. Lease
23. New standard and interpretations issued but not yet adopted
24. Assets classified as held for sale
2
5. Contingent liabilities
.

FIN 9
Millennium & Copthorne
Millennium & CopthorneMillennium & Copthorne
Millennium & Copthorne

Hotels New Zealand Limited
Hotels New Zealand Limited Hotels New Zealand Limited
Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
1.
1.1.
1. Segment reporting
Segment reportingSegment reporting
Segment reporting


Operating
OperatingOperating
Operating

segments
segmentssegments
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.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater
than 10% of the Group’s total revenue.
(a) Operating Segments
Hotel Operations
H
otel OperationsHotel Operations
Hotel Operations


Residential Land
Residential Land Residential Land
Residential Land
Development
DevelopmentDevelopment
Development

Investment Property
Investment PropertyInvestment Property
Investment Property


Residential Property
Residential PropertyResidential Property
Residential Property


Development
DevelopmentDevelopment
Development

Group
GroupGroup
Group


Dollars in thousands

202
202202
2022
22
2

2021
20212021
2021

202
202202
2022
22
2

2021
20212021
2021

202
202202
2022
22
2

2021
20212021
2021

202
202202
2022
22
2

2021
20212021
2021

202
202202
2022
22
2

2021
20212021
2021


External revenue
65,245 55,247 66,106 92,088 1,240 48 11,607 17,389 144,198

164,772

Other Income – Note 1(c)
-15,870- -
- -
- - -15,870
Earnings before interest,
depreciation
& amortisation
4,754 22,876 41,446 42,863 775 34 4,590 7,011 51,565 72,784
Finance income 1,271 585 1,664 616 - - 935 364 3,870

1,565

Finance expense (2,321) (1,374) (7)(4)- - (3)-(2,331)

(1,378)

Depreciation and amortisation
(6,807) (7,337) (3)(2)(538)(70)(7)(8)(7,355)

(7,417)

Depreciation of Right-of-use
assets (940)(940)(19)(13)- - (9)(8)(968)(961)
Profit before income tax
(4,043) 13,810 43,081 43,460 237 (36) 5,506 7,359 44,781

64,593

Income tax expense 1,417 495 (12,063) (12,169) (66)10 (1,651) (2,207) (12,363)

(13,871)

Profit after income tax
(2,626) 14,305 31,018 31,291 171 (26) 3,855 5,152 32,418

50,722

Cash & cash equivalents and
short term bank deposits 45,152 50,264 71,742 83,025 - - 56,439 46,350 173,333

179,639

Other segment assets
266,463 254,020 205,573 191,263 36,381 23,332 27,434 32,540 535,851

501,155

Investment in associates
- - 2 2 - - - - 2

2

Total assets 311,615 304,284 277,317 274,290 36,381 23,332 83,873 78,890 709,186

680,796

Segment liabilities
(52,502) (42,048) (1,542) (7,397) - - (1,919) (1,849) (55,963)

(51,294)

Tax liabilities (6,661) (7,710) (3,275) (3,845) - - (586)(148)(10,522)

(11,703)

Total liabilities
(59,163) (49,758) (4,817) (11,242) - - (2,505) (1,997) (66,485)

(62,997)

Property, plant and equipment
expenditure
17,312 6,218 77 35
- -
44 5 17,433

6,258

Investment property
expenditure
- - - - 13,587

15,593

- - 13,587

15,593

Residential land development
expenditure
- - 13,327 12,948
- -
- - 13,327

12,948

Purchase of land for
residential land development
- - 24,607 56,258 - - - - 24,607

56,258

FIN 10
Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
1.
1.1.
1.

Segment reporting
Segment reporting Segment reporting
Segment reporting -
--
-

continued
(b)
(b) (b)
(b) Geographical
Geographical Geographical
Geographical areas
areasareas
areas


The Group operates in the following main geographical areas:
•New Zealand.
•Australia.
Segment revenue is based on the geographical location of the asset.
New Zealand
N
ew ZealandNew Zealand
New Zealand

Australia
AustraliaAustralia
Australia

Group
GroupGroup
Group


Dollars In Thousands 202
202202
2022
22
2

2021
20212021
2021

202
202202
2022
22
2

2021
20212021
2021

202
202202
2022
22
2

2021
20212021
2021


External revenue 132,591 147,383 11,607 17,389 144,198 164,772
Other Income – Note 1(c)
-15,870- - -15,870
Earnings before interest, depreciation &
amortisation 46,994 65,792 4,571 6,992 51,565 72,784
Finance income 2,935 1,201 935 364 3,870 1,565
Finance expense (2,328) (1,378) (3)-(2,331) (1,378)
Depreciation and amortisation (7,348) (7,409) (7)(8)(7,355) (7,417)
Depreciation of Right-Of-Use Assets (959)(953)(9)(8)(968)(961)
Profit before income tax 39,294 57,253 5,487 7,340 44,781 64,593
Income tax (expense)/credit (10,718) (11,669) (1,645) (2,202) (12,363) (13,871)
Profit after income tax 28,576 45,584 3,842 5,138 32,418 50,722
Cash & cash equivalents and short term
bank deposits
116,894 133,289 56,439 46,350 173,333 179,639
Segment assets 472,036 445,283 27,434 32,540 499,470 477,823
Investment properties 36,381 23,332 - - 36,381 23,332
Investment in associates 2 2 - - 2 2
Total assets 625,313 601,906 83,873 78,890 709,186 680,796
Segment liabilities (54,044) (49,445) (1,919) (1,849) (55,963) (51,294)
Tax liabilities (9,936) (11,555) (586)(148)(10,522) (11,703)
Total liabilities (63,980) (61,000) (2,505) (1,997) (66,485) (62,997)
Material additions to segment assets:
Property, plant and equipment expenditure 17,389 6,253 44 5 17,433 6,258
Investment property expenditure
13,587 15,593 - - 13,587 15,593
Residential land development expenditure 13,327 12,948 - - 13,327 12,948
Purchase of land for residential land
development 24,607 56,258 - - 24,607 56,258
An operating segment is a distinguishable component of the Group:
•that is engaged in business activities from which it earns revenues and incurs expenses;
•whose operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions on
resource allocation to the segment and assess its performance; and
•for which discrete financial information is available.
Segment information is presented in respect of the Group’s reporting segments. Operating segments are the primary basis of
segment reporting. The Group has determined that its chief operating decision maker is the Board of Directors on the basis that it
is this group which determines the allocation of resources to segments and assesses their performance.
Inter-segment pricing is determined on an arm’s length basis. Segment results include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for
more than one period.
(c) Other income
(c) Other income(c) Other income
(c) Other income


Other income comprised the gain on sale of assets classified as held for sale. See note 24 for details of the asset sold.

FIN 11
M
MM
Millennium & Copthorne Hotels New Zealand Limited
illennium & Copthorne Hotels New Zealand Limited illennium & Copthorne Hotels New Zealand Limited
illennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
2
22
2.
..
.

Administration and other operating expenses
Administration and other operating expensesAdministration and other operating expenses
Administration and other operating expenses


Group
GroupGroup
Group


Dollars In Thousands Note
NoteNote
Note 202
202202
2022
22
2

2021
20212021
2021


Depreciation 9, 11 8,323 8,378
Auditors remuneration
Audit fees 344 367
Tax compliance and tax advisory fees 34 34
Directors fees 19
322 345
Rental expenses 699 300
Provision for bad debts
Debts written off 4 18
Movement in doubtful debt provision 65 (49)
Net loss on disposal of property, plant and equipment 20 5
Resurgence Support Payments (28)(187)
During 2022, the Group applied for government assistance in the form of Resurgence Support Payments. A total of $28,400 (2021:
$187,200) was received and applied as credits to the local council rates which are classified under operating expenses in the income
statement.
3
33
3.
..
.

Personnel expenses
Personnel expensesPersonnel expenses
Personnel expenses


Group
GroupGroup
Group


Dollars In Thousands 2022
20222022
2022

2021
20212021
2021


Wages and salaries 32,632 27,734
Wage subsidies (222)(3,990)
Employee related expenses and benefits 1,135 962
Contributions to defined contribution plans 476 362
Increase/(decrease) in liability for long-service leave 32 19
34
3434
34,
,,
,053
053053
053

25,087
25,08725,087
25,087


Wage subsidy scheme
Wage subsidy schemeWage subsidy scheme
Wage subsidy scheme


The Group applied for government support arising from the Red and Orange Traffic Alert Levels 3 and 4 lockdowns in the early part
of 2022. A total of $272,345 was received under the COVID-19 Leave Support Scheme and the COVID-19 Short-term Absence
Payment. In 2021 the Group received a total of $4.16 million under the COVID-19 Wage Subsidy August 2021 Scheme and $13,200
under the COVID-19 Leave Support Scheme and $1,400 for COVID-19 Short-term Absence Payment.
The wage subsidies including Leave Support Scheme and Short-term Absence Payment were recorded as a deduction against payroll
costs in personnel expenses. The personnel expenses are included in cost of sales, administration expenses and other expenses in
the income statement.
Employee long
Employee longEmployee long
Employee long-
--
-term service benefits
term service benefitsterm service benefits
term service benefits


The Group’s net obligation in respect of long-term service benefits, is the amount of future benefit that employees have earned in
return for their service in the current and prior periods. The obligation is calculated using their expected remuneration and an
assessment of the likelihood that the liability will arise.
4
44
4.
..
.

Net finance income
Net finance incomeNet finance income
Net finance income


Recognised in the income statement
Recognised in the income statementRecognised in the income statement
Recognised in the income statement

Group
GroupGroup
Group


Dollars In Thousands 202
202202
2022
22
2

2021
20212021
2021


Interest income 3,869 1,563
Dividend income 1 2
Foreign exchange gain - -
Finance income 3,870 1,565
Interest expense (2,321) (1,263)
Foreign exchange loss (10)(115)
Finance costs (2,331) (1,378)
Net finance income recognised in the income statement
Net finance income recognised in the income statementNet finance income recognised in the income statement
Net finance income recognised in the income statement

1
11
1,539
,539,539
,539

187
187187
187

FIN 12
M
illennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
4
44
4.
..
.

Net finance income
Net finance incomeNet finance income
Net finance income

- continued
Finance income and expenses
Finance income and expensesFinance income and expenses
Finance income and expenses


Finance income comprises interest income on funds invested, dividend income and foreign currency gains that are recognised in
profit or loss. Interest income is recognised as it accrues, using the effective interest method. Dividend income is recognised in the
income statement on the date the entity’s right to receive payments is established which in the case of quoted securities is the ex-
dividend date.
Finance expenses comprise interest payable on borrowings calculated using the effective interest rate method, interest costs on lease
liability and foreign exchange losses that are recognised in the income statement.
Recognised in other comprehensive income
R
ecognised in other comprehensive incomeRecognised in other comprehensive income
Recognised in other comprehensive income
Group
GroupGroup
Group


Dollars In Thousands 2022
20222022
2022

2021
20212021
2021


Foreign exchange translation movements 629 (326)
Net
Net Net
Net finance income recognised in other comprehensive income
finance income recognised in other comprehensive incomefinance income recognised in other comprehensive income
finance income recognised in other comprehensive income

629
629629
629

(326)
(326)(326)
(326)


Exchange translation of f
Exchange translation of fExchange translation of f
Exchange translation of financial statements of foreign operations
inancial statements of foreign operationsinancial statements of foreign operations
inancial statements of foreign operations


The assets and liabilities of foreign operations are translated to New Zealand dollars at foreign exchange rates ruling at the balance
date. The revenues and expenses of foreign operations are translated to New Zealand dollars at rates approximating the foreign
exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on re-translation are recognised directly
as a separate component of equity. When a foreign operation is disposed of, in part or in full, the relevant amount in the exchange
reserve is released into the income statement.


5
55
5.
..
.

Income tax expense
Income tax expenseIncome tax expense
Income tax expense


Recognised in the income statement
Recognised in the income statementRecognised in the income statement
Recognised in the income statement


Group
GroupGroup
Group


Dollars In Thousands

202
202202
2022
22
2

2021
20212021
2021


Current tax expense
Current tax expenseCurrent tax expense
Current tax expense
Current year 12,182 13,803
Adjustments for prior years (239)104
11,943 13,907
Deferred tax expense
Deferred tax expenseDeferred tax expense
Deferred tax expense


Origination and reversal of temporary difference 420 (36)
420 (36)
Total income tax expense in the income statement
Total income tax expense in the income statementTotal income tax expense in the income statement
Total income tax expense in the income statement

1
11
12
22
2,
,,
,363
363363
363

13,871
13,87113,871
13,871


Reconciliation of tax
Reconciliation of tax Reconciliation of tax
Reconciliation of tax expense
expenseexpense
expense


Group
GroupGroup
Group


Dollars In Thousands 2022
20222022
2022

2021
20212021
2021


Profit before income tax 44,781 64,593
Income tax at the company tax rate of 28% (2021: 28%) 12,539 18,086
Adjusted for:
Tax rate difference (if different from 28% above) 108 147
Tax exempt income (45)(4,466)
Under/(Over) - provided in prior years (239)104
Total income tax expense
Total income tax expenseTotal income tax expense
Total income tax expense


12,363
12,36312,363
12,363

13,871
13,87113,871
13,871


Effective tax rate 28% 21%

FIN 13
Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
5
55
5.
..
.

Income tax expense
Income tax expense Income tax expense
Income tax expense - continued
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement
except to the extent that it relates to items recognised directly in other comprehensive income or equity, in which case it is recognised
in other comprehensive income or equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the
balance date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of the temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill
not deductible for tax purposes; the initial recognition of assets or liabilities that neither affect accounting nor taxable profit; and
differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates enacted or substantively enacted at the balance date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the
asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
Deferred tax assets and deferred tax liabilities are offset only if the Group has a legally enforceable right to set off current tax assets
against current tax liabilities; the Group intends to settle net; and the deferred tax assets and the deferred tax liabilities relate to
income taxes levied by the same taxation authority.
6
66
6.
..
.

Imputation credits
Imputation creditsImputation credits
Imputation credits


The KIN Holdings Group has A$12.01 million (2021: A$10.66 million) franking credits available as at 31 December 2022.
7
77
7.
..
.

Capital and reserves
Capital and reserves Capital and reserves
Capital and reserves
Share capital
Share capital Share capital
Share capital


Group
GroupGroup
Group

Group
GroupGroup
Group


2022
20222022
2022

2022
20222022
2022

2021
20212021
2021

2021
20212021
2021


Shares
SharesShares
Shares

$000’s
$000’s$000’s
$000’s

Shares
SharesShares
Shares

$000’s
$000’s$000’s
$000’s


Ordinary shares issued 1 January
105,578,290 350,048 105,578,290 350,048
Ordinary shares issued at 31 December
Ordinary shares issued at 31 December Ordinary shares issued at 31 December
Ordinary shares issued at 31 December –
––
–

fully paid
fully paidfully paid
fully paid


105,578,290
105,578,290105,578,290
105,578,290

350,048
350,048350,048
350,048

105,578,290
105,578,290105,578,290
105,578,290

350,048
350,048350,048
350,048


Redeemable preference shares 1 January
52,739,543 33,218 52,739,543 33,218
Redeemable preference shares
Redeemable preference shares Redeemable preference shares
Redeemable preference shares issued at 31 December
issued at 31 December issued at 31 December
issued at 31 December –
––
–

fully
fully fully
fully
paid
paidpaid
paid

52,739,543
52,739,54352,739,543
52,739,543

33,218
33,21833,218
33,218

52,739,543
52,739,54352,739,543
52,739,543

33,218
33,21833,218
33,218


Ordinary shares repurchased and held as treasury stock 1
January (99,547) (26) (99,547) (26)
Ordinary shares repurchased and held as treasury stock 31
Ordinary shares repurchased and held as treasury stock 31 Ordinary shares repurchased and held as treasury stock 31
Ordinary shares repurchased and held as treasury stock 31
December
DecemberDecember
December

(99,547)
(99,547)(99,547)
(99,547)

(26
(26(26
(26)
))
)

(99,547)
(99,547)(99,547)
(99,547)

(26
(26(26
(26)
))
)


Total shares issued and outstanding
Total shares issued and outstandingTotal shares issued and outstanding
Total shares issued and outstanding


158,218,286
158,218,286158,218,286
158,218,286

383,240
383,240383,240
383,240

158,218,286
158,218,286158,218,286
158,218,286

383,240
383,240383,240
383,240


At 31 December 2022, the authorised share capital consisted of 105,578,290 ordinary shares (2021: 105,578,290 ordinary shares)
with no par value and 52,739,543 redeemable preference shares (2021: 52,739,543 redeemable preference shares) with no par
value.
The non-voting redeemable preference shares rank equally with ordinary shares with respect to all distributions made by the
Company (including without limitation, to dividend payments) except for any distributions made in the context of a liquidation of the
Company. The Company reserves the right to the redemption of these preference shares as well as any distributions relating to these
shares and makes no guarantee that these preference shares will be redeemed or that dividends will be paid in respect of these
preference shares.
G
roup
GroupGroup
Group


Dollars In Thousands

202
202202
2022
22
2

2021
20212021
2021


Imputation credits available for use in subsequent reporting periods 126,825 110,508

FIN 14
Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
7
77
7.
..
.

Capital and reserves
Capital and reservesCapital and reserves
Capital and reserves

–
––
– continued
Repurchase of share capital
Repurchase of share capitalRepurchase of share capital
Repurchase of share capital


When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributed costs,
is recognised as a change in equity. Repurchased shares are classified as treasury stock and presented as a deduction from total
equity.
Exchange reserve
Exchange reserveExchange reserve
Exchange reserve


The exchange reserve comprises the foreign exchange differences arising from the translation of the financial statements of foreign
operations.



D
ividends
DividendsDividends
Dividends
The following dividends were declared and paid during the year ended 31 December:
Company
CompanyCompany
Company


Dollars In Thousands

202
202202
2022
22
2

2021
20212021
2021


Ordinary Dividend
Ordinary Dividend Ordinary Dividend
Ordinary Dividend – 3.5 cents per qualifying share (2021: Nil cents)

5,538 -
Supplementary Dividend
Supplementary Dividend Supplementary Dividend
Supplementary Dividend – 0.0062 cents per qualifying share (2021: Nil cents) 112 -
5,650 -
After 31 December 2022, the following dividends were declared by the directors. The dividends have not been provided for and there
are no income tax consequences.
Dollars In Thousands


Company
CompanyCompany
Company


Ordinary Dividend
Ordinary DividendOrdinary Dividend
Ordinary Dividend – 3.0 cents per qualifying share (2021: 3.5 cents)

4,747
Supplementary Dividend
Supplementary DividendSupplementary Dividend
Supplementary Dividend – 0.0053 cents per qualifying share (2021: 0.0062 cents) 96
Total
TotalTotal
Total

Dividend
DividendDividend
Dividends
ss
s

4,843
Dividends
DividendsDividends
Dividends

and tax
and taxand tax
and tax


Dividends are recognised as a liability in the period in which they are declared. Additional income taxes that arise from the
distribution of dividends are recognised at the same time as the liability to pay the related dividend.
8
88
8.
..
.

Earnings per share
Earnings per shareEarnings per share
Earnings per share


Basic earnings per share
Basic earnings per shareBasic earnings per share
Basic earnings per share


The calculation of basic earnings per share at 31 December 2022 was based on the profit attributable to ordinary and redeemable
preference shareholders of $21,713,000 (2021: $40,049,000) and weighted average number of shares outstanding during the year
ended 31 December 2022 of 158,218,286 (2021: 158,218,286), calculated as follows:
Profit attributable to shareholders
Profit attributable to shareholdersProfit attributable to shareholders
Profit attributable to shareholders


Group
GroupGroup
Group


Dollars In Thousands

2022
20222022
2022

2021
20212021
2021


Profit for the year 32,418 50,722
Profit attributable to non-controlling interests (10,705) (10,673)
Profit attributable to shareholders 21,713 40,049
Weighted average number of
Weighted average number ofWeighted average number of
Weighted average number of

shares
sharesshares
shares


Group
Group Group
Group


2022
20222022
2022

2021
20212021
2021


Weighted average number of shares (ordinary and redeemable preference shares) 158,317,833 158,317,833
Effect of own shares held (ordinary shares) (99,547) (99,547)
Weighted average number of shares for earnings per share calculation 158,218,286 158,218,286
Diluted earnings per share
Diluted earnings per shareDiluted earnings per share
Diluted earnings per share


The calculation of diluted earnings per share is the same as basic earnings per share.
Group
Group Group
Group


2022
20222022
2022

2021
20212021
2021


Basic and Diluted Earnings per share (cents per share) 13.72 25.31

FIN 15
Millennium & Copthorne
Millennium & CopthorneMillennium & Copthorne
Millennium & Copthorne

Hotels New Zealand Limited
Hotels New Zealand Limited Hotels New Zealand Limited
Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
9
99
9.
..
.

Property, plant and equipment
Property, plant and equipmentProperty, plant and equipment
Property, plant and equipment


G
GG
Group
rouproup
roup


Initial recording
Initial recordingInitial recording
Initial recording


Items of property, plant and equipment are initially stated at cost. The cost of purchased property, plant and equipment is the value
of the consideration given to acquire the assets and the value of other directly attributable costs, which have been incurred in bringing
the assets to the location and condition necessary for their intended service. Where parts of an item of property, plant and equipment
have different useful lives, they are accounted for as separate items of property, plant and equipment.
Capital expenditure on major projects is recorded separately within property, plant and equipment as capital work in progress. Once
the project is complete the balance is transferred to the appropriate property, plant and equipment categories. Capital work in progress
is not depreciated.
Subsequent measurement
Subsequent measurementSubsequent measurement
Subsequent measurement


Property, plant and equipment is subsequently measured at cost less accumulated depreciation and impairment losses. The Group
recognises the cost of replacing part of such an item of property, plant and equipment when that cost is incurred if it is probable that
the future economic benefits embodied within the item will flow to the Group and the cost of the item can be measured reliably. All
other costs are recognised in the income statement as an expense as incurred.
D
ollars In Thousands



Freehold
FreeholdFreehold
Freehold


Land
LandLand
Land


Building
BuildingBuilding
Building
s
ss
s


Plant,
Plant, Plant,
Plant,
Equipment,
Equipment, Equipment,
Equipment,
Fixtures
Fixtures Fixtures
Fixtures &
&&
&


Fittings
FittingsFittings
Fittings


Motor
MotorMotor
Motor


Vehicles
VehiclesVehicles
Vehicles


Work
WorkWork
Work


In
InIn
In


Progress
ProgressProgress
Progress


Right Of
Right Of Right Of
Right Of
Use Asset
Use AssetUse Asset
Use Asset

Total
TotalTotal
Total


Cost
CostCost
Cost


Balance at 1 January 2021 43,691 213,611 104,972 76 2,638 17,640 382,628
Acquisitions -205433 -3,3432,276 6,257
Disposals -(39)(31)-(32)(129)(231)
Transfers between categories -21224 - (245)- -
Movements in foreign exchange --(2) - - - (2)
B
BB
Balance at
alance at alance at
alance at 31 December 202
31 December 20231 December 202
31 December 2021
11
1



43
4343
43,
,,
,691
691691
691

213
213213
213,
,,
,798
798798
798



10
1010
105
55
5,
,,
,596
596596
596



76
7676
76



5
55
5,
,,
,704
704704
704



19,787
19,78719,787
19,787

38
3838
388
88
8,
,,
,6
66
652
5252
52


Balance at 1 January 2022 43,691 213,798 105,596 76 5,704 19,787 388,652
Acquisitions - - 8 -7,13810,286 17,432
Disposals - - (84) -(128)(1,948) (2,160)
Transfers between categories 2,970 3,874 2,916 -(9,760)- -
Movements in foreign exchange - - 4 --- 4
Balance at
Balance at Balance at
Balance at 31 December 202
31 December 20231 December 202
31 December 2022
22
2

4
44
46
66
6,
,,
,661
661661
661

2
22
21
11
17
77
7,
,,
,672
672672
672

10
1010
108
88
8,
,,
,440
440440
440

76
7676
76

2
22
2,
,,
,954
954954
954

28
2828
28,
,,
,125
125125
125

403
403403
403,
,,
,928
928928
928


Depreciation and impairment losses
Depreciation and impairment lossesDepreciation and impairment losses
Depreciation and impairment losses


Balance at 1 January 2021 - (45,406)(86,612) (69)-(2,633) (134,720)
Depreciation charge for the year - (3,434)(3,911) (2)-(961)(8,308)
Disposals --27 --129 156
Movements in foreign exchange --2 --- 2
Balance at
Balance at Balance at
Balance at 31 December 2021
31 December 202131 December 2021
31 December 2021

-
--
-

(48,840)
(48,840)(48,840)
(48,840)

(90,494)
(90,494)(90,494)
(90,494)

(71)
(71)(71)
(71)

-
--
-

(3,465)
(3,465)(3,465)
(3,465)

(142,870)
(142,870)(142,870)
(142,870)


Balance at 1 January 2022 - (48,840)(90,494) (71)-(3,465) (142,870)
Depreciation charge for the year - (3,246)(3,570) (1)-(968)(7,785)
Disposals --65 --1,945 2,010
Movements in foreign exchange --(3) --(1) (4)
Balance at
Balance at Balance at
Balance at 31 December 202
31 December 20231 December 202
31 December 2022
22
2

-
--
-

(52,086)
(52,086)(52,086)
(52,086)

(94,002)
(94,002)(94,002)
(94,002)

(72)
(72)(72)
(72)

-
--
-

(
((
(2
22
2,4
,4,4
,489
8989
89)
))
)

(14
(14(14
(148
88
8,
,,
,649
649649
649)
))
)


Carrying amounts
Carrying amountsCarrying amounts
Carrying amounts


At 1 January 2021 43
4343
43,
,,
,691
691691
691

168
168168
168,
,,
,205
205205
205

18
1818
18,
,,
,360
360360
360

7
77
7

2,638
2,6382,638
2,638

15,007
15,00715,007
15,007

247
247247
247,
,,
,908
908908
908


At
At At
At 31 December 2021
31 December 202131 December 2021
31 December 2021

43
4343
43,
,,
,691
691691
691

164
164164
164,
,,
,958
958958
958

15
1515
15,
,,
,102
102102
102

5
55
5

5,704
5,7045,704
5,704

16,322
16,32216,322
16,322

245
245245
245,
,,
,782
782782
782


At 31 December
At 31 December At 31 December
At 31 December 2022
20222022
2022

46
4646
46,
,,
,661
661661
661

165
165165
165,
,,
,58
5858
586
66
6

14
1414
14,
,,
,438
438438
438

4
44
4

2,954
2,9542,954
2,954

25
2525
25,
,,
,636
636636
636

255
255255
255,
,,
,279
279279
279

FIN 16
Millennium & Copthorne
Millennium & CopthorneMillennium & Copthorne
Millennium & Copthorne

Hotels New Zealand Limited
Hotels New Zealand Limited Hotels New Zealand Limited
Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
9
99
9.
..
.

Property, plant and equipment
Property, plant and equipment Property, plant and equipment
Property, plant and equipment –
––
–

continued
Impairment
ImpairmentImpairment
Impairment


The testing for impairment is undertaken with an internal review by management and supplemented by external review on selected
hotels by an independent registered valuer. The internal review requires management to determine the assets value in use by
estimating future cash flows to be generated by the cash generating units. The basis of the impairment test is the net present value
of the future earnings of the assets. The major unobservable inputs that management use that require judgement in estimating
future cash flows include expected rate of growth in revenue and costs, projected occupancy and average room rates, operational
and maintenance expenditure profiles, and the appropriate discount rate to apply when discounting future cash flows. Average
annual growth rates appropriate to the hotels range from 5.14% to 78.61% (2021: 0.26% to 358.78%) over the five years projection.
Pre-tax discount rates ranging between 6.25% to 10.50% (2021: 6.25% and 11.25%) were applied to the future cash flows of the
individual hotels based on the specific circumstances of the property. Hotel assets dependent on international travel have been
projected to return to normal pre-COVID occupancy levels during 2023.
During the year management identified four hotel assets with a carrying value of $40.0 million that had indicators of impairment and
were subsequently tested for impairment. The recoverable amount of one of the hotel assets with a carrying value of $9.56 million
was determined by reference to its fair value applying a comparative approach due to the level of estimation uncertainty associated
with projecting its future cashflows. The fair value of this hotel asset exceeded its carrying value by $0.84 million and is considered
to be sensitive to impairment from a reasonably possible increase in market capitalisation rates. Two other hotel assets with a
carrying value of $20.33 million were considered to be sensitive to impairment. A 5.0% reduction in RevPAR (via a combination of
lower occupancy and lower average room rate) over the forecast period would result in impairment of $3.12 million. An increase in
their discount rate and terminal capitalisation rate by 1.25% percentage point would result in impairment of $0.11 million.
Depreciation
DepreciationDepreciation
Depreciation


Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual
values over their estimated useful lives, as follows:
•Building core50 years or lease term if shorter
•Building surfaces and finishes30 years or lease term if shorter
•Plant and machinery15 - 20 years
•Furniture and equipment10 years
•Soft furnishings5 - 7 years
•Computer equipment5 years
•Motor vehicles4 years
No residual values are ascribed to building surfaces and finishes. Residual values ascribed to building core depend on the nature,
location and tenure of each property. Residual values ascribed to building core range between 10% to 24% of the building core.
Disposal or
Disposal or Disposal or
Disposal or retirement
retirementretirement
retirement


Gains or losses arising from the disposal or retirement of property, plant and equipment are determined as the difference between
the actual net disposal proceeds and the carrying amount of the asset and are recognised in the income statement on the date of
retirement or disposal.
Right of use assets
Right of use assetsRight of use assets
Right of use assets


The accounting policy for right of use asset is disclosed in Note 23.
Pledged assets
Pledged assetsPledged assets
Pledged assets


A total of two (2021: ten) hotel properties with a total book value of $37.70 million (2021: $199.60 million) are pledged to the bank
as security against the loan facility.
1
11
10
00
0.
..
.

Development propert
Development propertDevelopment propert
Development properties
iesies
ies


Group
G
roupGroup
Group


Dollars In Thousands 202
202202
2022
22
2

202
202202
2021
11
1


Development land 203,148 185,741
Residential development 25,198 29,594
228,346 215,335
Less expected to settle within one year (23,038) (26,827)
205
205205
205,
,,
,30
3030
308
88
8

1
11
188
8888
88,
,,
,508
508508
508


Development land recognised in cost of sales 20,527 44,902
Residential development recognised in cost of sales 4,844 8,329
Development land is carried at the lower of cost and net realisable value. Interest of $Nil (2021: $Nil) was capitalised during the year.
Residential development at balance date consists of the residential development known as Zenith Residences in Sydney, Australia.
Property held for future development and development property completed and held for sale are stated at the lower of cost and net
realisable value. Cost includes the cost of acquisition, development, and holding costs. Development properties also include deposits
paid on unconditional contracts on land purchases. All holding costs incurred after completion of development are expensed as
incurred. Revenue and profit are not recognised on development properties until the legal title passes to the buyer when the full
settlement of the purchase consideration of the properties occurs and the development property is derecognised.