MCK H1 2024 results announcement

Name of issuer
Reporting Period
Previous Reporting Period
Currency
Amount (000s)
Revenue from continuing operations$85,319
Total Revenue$85,319
Net profit/(loss) from continuing operations ($11,747)
Total net profit/(loss) ($11,747)
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$3.37
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
7 August 2024
Not applicable
Not applicable
Not applicable
Current period
$3.36
Refer to the Media Release
Authority for this announcement
Takeshi Ito – Company Secretary
Takeshi Ito – Company Secretary
+64 21 591 531
takeshi.ito@millenniumhotels.com
No interim dividend has been declared
Results for announcement to the market
Millennium & Copthorne Hotels New Zealand Limited
6 months to 30 June 2024
6 months to 30 June 2023
NZD
Percentage change
42.08%
42.08%
(290.17%)
(290.17%)
Interim Dividend

---

M Social Auckland
MCK INTERIM RESULTS
For the six months to 30 June 2024 (HY24)

Indoor Pool, Millennium Hotel Rotorua
HY24 PERFORMANCE SNAPSHOT
Revive and Thrive strategy delivering value
TOTAL
REVENUE
NZ HOTEL
REVENUE
PROFIT
Before Tax and non-
controlling interests
$85.3m
HY23: $60.0m
$55.9m
HY23: $47.5m
$21.5m
HY23: $11.5m
EARNINGS PER
SHARE
TOTAL
ASSETS
SHAREHOLDERS’
FUNDS
7.94 cents*
HY23: 3.90 cents
$738.5m
FY23: $746.8m
$532.0m
FY23: $547.9m
•Strong turnaround in hotel business
•CDL Investments feeling the pressure
of the short-term cooldown in
residential land property sales
•Australia apartment sales progressed
•Continue to invest in property
refurbishments and network
expansion
•Removal of tax depreciation on
commercial buildings results in
adverse one-off non-cash impact to
net profit after tax
* Adjusted to remove one-off non-cash impact from tax depreciation changes

M Social Auckland
•Tourism continues to recover and demand from overseas
continues to improve
•Limited special events to attract international visitors to New
Zealand (following 2023 FIFA Women’s World Cup)
•Benefit of trading from Sofitel Brisbane Central
•Current economic headwinds expected to continue for 2024,
impacting on demand
HY24 SHOWS POSITIVE PROGRESS
Optimistic outlook for continued recovery in 2024
Ensure our hotels and guest experiences are of
the highest quality to meet the current demand
as the market rebounds
Q1 2024: Positive start to the year. First quarter in 5
years without the impact of Covid-19, weather events or
large staffing shortages
Q2 2024: Steady trading as hotels adjusted with no
special events
Q1
2022
Q2
2022
Q1
2023
Q2
2023
Q1
2024
Q2
2024
NZ Hotels Revenue

Copthorne Hotel and Resort Bay of Islands
HY24 RESULTS AT A GLANCE
Strong Q1 trading moving to a steady Q2
Hotel Operations
•First uninterrupted period of
trading since the pandemic
Property Sales
•Signs of recovery in residential land
sales
•Sale of six Sydney apartments
bolsters HY24 result
Tax Depreciation Changes
•Removal of tax depreciation on
commercial buildings results in one-
off non-cash deferred tax
adjustment
Deferred Tax adjustment due to government tax legislation changes on depreciation
FINANCIAL PERFORMANCE -
Unaudited
Unaudited
CONSOLIDATED
HY 2024
HY 2023
Change
Change
$000's
$000's
$
%
Hotel revenue
55,902
47,452
8,450
17.81%
Rental income
1,933
1,973
(40)
-2.03%
Property sales
27,484
10,626
16,858
158.65%
REVENUE
85,319
60,051
25,268
42.08%
Operating Profit
19,811
8,726
11,085
127.03%
Net finance income
1,742
2,740
(998)
-36.42%
Share of loss of joint venture
(19)
-
Profit before income tax
21,534
11,466
10,068
87.81%
Income tax expense
(5,948)
(3,085)
(2,863)
92.80%
One-off deferred tax adjustment*
(25,760)
-
(25,760)
-
Profit for the year
(10,174)
8,381
(18,555)
-221.39%
Earnings per share (cents)
-7.42
3.90
EPS excl One-off tax adjustment
7.94

M Social Auckland
FINANCIAL POSITION
Strong Balance Sheet to deploy
BALANCE SHEET - CONSOLIDATEDUnauditedAudited
HY2024FY2023ChangeChange
$000's$000's$%
Property plant & equipment266,742263,051
Development properties249,019244,082
Investment properties35,64635,834
Investment in JV44,33843,943
Non-current assets582,544560,05122,4934.02%
Loans in JV63,49562,218
Cash and bank deposits62,16975,331
TOTAL ASSETS738,522746,790(8,268)-1.11%
Bank Debt011,968
Provision for Deferred Taxation32,6097,001
Other Liabilities60,95665,369
NET ASSETS644,957662,452(17,495)-2.64%
NTA per quoted equity security3.36$ 3.46$

Copthorne Hotel and Resort Bay of Islands
HotelSizeTiming
Millennium Hotel
Queenstown
132 rooms completed
70 rooms underway
15 suites to be commenced
FY23 - FY24
Millennium Hotel Rotorua99 rooms completed
127 rooms and 2 suites commencing
FY23 - FY24
Copthorne Hotel Palmerston
North
Recladding and other works
– stage 1 nearing completion
FY23 - FY24
Copthorne Hotel & Resort
Bay of Islands
50 rooms in Seaspray Wing commencing
Exterior repainting nearing completion
FY24 – FY25
Current pipeline of activity:
Whole-of-network plan being developed which will inform medium term investment decisions
ENHANCING OUR HOTEL PRODUCT
Continued investment to upgrade and refurbish hotels

Millennium Hotel Queenstown
7
•HY24 apartment sales
o1 x 3-bedroom studio
o4 x 1-bedroom units settled
o1 x 2-bedroom unit
•Rented units transferred to vacant pool to meet
market demand
AUSTRALIAN OPERATIONS
Sydney Apartments
FINANCIAL PERFORMANCE -
Unaudited
Unaudited
Australia (owned 100%)
HY2024
HY2023
Change
Change
$000's
$000's
$
%
Units Available (Open)
31
36
Number of units sold this year
6
0
Units Available (Close)
25
36
Currently rented out
23
30
Rental & Sales Income
12,803
631
12,172
1929%
Profit before income Tax
5,729
450
5,279
1173%

M Social Auckland
AUSTRALIAN OPERATIONS
Sofitel Brisbane Joint Venture
•Sofitel Brisbane draws upon its strong market positioning
as one of the oldest and most reputable luxury hotels in
Brisbane
•HY24 hotel operations outperforms 2023 levels
oQ1 - traditionally quieter period of operation
oQ2 - stepping up on the back of specially equipped
sporting group facilities and utilisation of
conferencing / functions capabilities
•Ownership structure includes debt funding from MCK
(interest expense to joint venture / income to MCK)
•Trading loss reported after deduction of property and
funding costs
Financial PerformanceHY2024
$000's
Hotel revenue23,261
Hotel operating profit3,644
Property and funding costs
Depreciation & insurance(2,790)
Interest income317
Interest expense on related party loans(1,225)
Income tax expense16
(3,682)
Profit/(loss) for the period100%(38)
Group's share of profit /(loss)50%(19)
Joint VentureUnauditedAudited
Financial PositionHY2024FY2023ChangeChange
$000's$000's$%
Non-current assets201,809202,650
Current assets22,85127,477
TOTAL ASSETS224,660230,127(5,467)-2.4%
Non-current liabilities
Loans - internal126,266124,462
Current liabilities9,71917,779
Net assets (100%)88,67587,8867890.9%
Group's share (50%)44,33843,943

Executive Chef Chetan Pangam, One80 Restaurant
•Hotel’s central location, a secure CBD environment, plethora of
food & beverage options, specially equipped sporting group
facilities, paired with a strong commercially focused leadership
team
•Over the next 12 months, the city will see the staged opening
and introduction of further precincts via the highly anticipated
Queen’s Wharf project putting the hotel in direct competition
with some of Australia’s most well-known hotel brands
BRISBANE MARKET PERFORMANCE

CDL INVESTMENTS PIPELINE
* Estimated section yield, subject to residential zoning/resource consents
•Solid pipeline of land development
•Total land holding 294.2Ha
•Estimated yield circa 3,500 sections*
•Maintained a nationwide geographical spread
•Diverse portfolio, offers flexibility for diversification
•Continually looking to grow their portfolio –
unconditional agreement to purchase 10.08 hectares
of land in Burnside, Christchurch
FINANCIAL PERFORMANCE -
Unaudited
Unaudited
CDLI
HY 2024
HY 2023
Change
Change
$000's
$000's
$
%
REVENUE
16,614
11,968
4,646
38.8%
Operating Profit
7,862
5,271
2,591
49.2%
Net Finance income
1,345
1,707
(362)
-21.2%
Profit before income Tax
9,207
6,978
2,229
31.9%
BALANCE SHEET - CDLI
Unaudited
Audited
(NZX:CDL - Owned 65.99%)
HY2024
FY2023
Change
Change
$000's
$000's
$
%
Development properties
234,719
224,541
Investment properties
35,646
35,834
Non-current assets
259,196
238,984
20,212
8.5%
Cash and bank deposits
35,853
52,159
TOTAL ASSETS
313,461
319,228
(5,767)
-1.8%
Bank Debt
0
0
Other Liabilities
6,448
5,503
NET ASSETS
307,013
313,725
(6,712)
-2.1%

Ember Restaurant
Occupancy 74.2%
Revenue HY24 A$21.5m
+ 5.4% v YTD 2023

•Filling in the gaps in our New Zealand hotel network
•Whangarei land acquisition, conditional on detailed feasibility study
•Building on our initial entry into Australia
•Short term focus to deliver return on Sofitel acquisition
•Key facts
NETWORK EXPANSION AND GROWTH
Settled: Dec 2023
Purchase price: A$177.7m
Structure: 50% JV
Equity funding: NZ$44.3m
Internal debt funding: NZ$62.2m

Copthorne Hotel Greymouth
REVIVE AND THRIVE FY23 TO FY26
Key initiatives
ACHIEVED
FY23
Revival
•Bring all rooms back online
•Build occupancy back to former
levels
•Attract and retain full
complement of staff
•Marketing and sales activity to
drive guest visits
•Continued investment in
refurbishment and upgrades
IN PROGRESS
FY23 - 24
Early Stage Growth
•Identify opportunities to fill the
gaps in the New Zealand hotel
network
•Build beachhead in Australia
•Formalise strategy for
sustainable operations
•Continued investment in
refurbishment and upgrades
FUTURE PLANNING
FY25 - 26
Accelerate Growth
•Optimise hotel network and
under-utilised land and
buildings
•Expand footprint in Australia
•Continued investment in
refurbishment and upgrades

2024 OUTLOOK
Remain confident in continued progress under Revive and Thrive strategy
•Good control over the controllables - strong staffing levels and more
room capacity
•Varied regional demand – some areas such as Queenstown remain
extremely strong
•Ongoing challenges – cost inflation, lower consumer and business
confidence, cost of living increases
•No major sporting events scheduled in 2024
•Central and local Government action and support needed to promote NZ
and attract tourists, conferences and events

OUR HOTEL NETWORKS
18 Hotels in NZ
Opportunity to fill in the network
2,250 rooms per night owned and managed
1 Hotel in Australia
Beachhead being established.
Significant opportunity to build footprint

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 investment or financial 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.
DISCLAIMER

---

MCK interim results for six months to 30 June 2024

New Zealand hotel owner and operator, Millennium & Copthorne Hotels New Zealand Limited (MCK), has today
announced its unaudited results for the six months to 30 June 2024 and reported revenue growth of 42% and an increase
in net profit before tax of 88% compared to the same period last year.

As announced last week, MCK recognised a one-off non-cash deferred tax liability adjustment amounting to $25.76m
which arose from a change in tax legislation that came into effect this year and relates to the depreciation of buildings
owned by MCK. The effect of the adjustment, which does not affect MCK’s trading position or cash flow, meant that MCK
recorded an after tax loss for the period of $10.17 million.

MCK was able to show
improving occupancy and profit in the Hotels business, despite a slowdown in demand for
corporate travel and meetings. The first half of the financial year was the first time in five years where the hotels have
been able to operate without the impact of pandemic restrictions, weather-related issues or large staffing shortages.

Outside of the hotel operations, MCK’s majority owned property development subsidiary, CDL Investments New Zealand
Limited (CDI), improved its contribution to group profit, recording a 32% increase on its 2023 profit before tax. CDI
believes that the property markets have passed peak trough and are showing signs of recovery and are still targeting an
improvement on their 2023 results by year end.

MCK Chairman Colin Sim, said the strong Hotels result was reflective of the hard work of the team and the successful
execution of the Revive and Thrive strategy.

“Our team has worked hard to attract both international and domestic visitors, improve our hotel offer, and drive room
profitability in a challenging trading environment. Despite economic headwinds and depressed demand in some regions as
a result of reduced business and government demand, the good news is that tourism, particularly from overseas,
continues to improve. We expect another strong result from our Hotels business in the 2024/25 high season, with CDI also
expected to deliver a year on year improvement, as the number of sections sales increases over time.”

Business highlights for the period include positive progress on the Hotels refurbishment programme, the inclusion of
Sofitel Brisbane Central hotel in the Hotels portfolio, and the continued sell down of the Zenith apartments in Australia.

MCK’s Managing Director, Stuart Harrison, said the performance of the Sofitel Brisbane Central hotel over the last six
months had provided many learnings. “The hotel’s trading metrics are positive. In the first quarter, the hotel saw growth
in average daily rate and occupancy ahead of budget. A recent highlight for the hotel was hosting multiple teams over the
NRL’s Magic Round in May and the State of Origin final game in July which emphasised how popular the hotel is for
sporting teams and spectators coming to Brisbane.”

Results snapshot

Six months to 30 June 1H24 1H23
Average hotel occupancy across the Group 69.0% 59.8%
Group revenue $ 85.32m $ 60.05m
Profit before income tax and non-controlling interests $21.53m $ 11.47m
Profit/(Loss) after tax and non-controlling interests $ (11.75m)$ 6.18m
Profit after tax and non-controlling interests (excluding tax
adjustment)
$ 12.57m $ 6.18m
Earnings per share (cents per share)
Earnings per share (adjusted for one-off tax adjustment)
-7.42 cps
7.94 cps
3.90 cps

Group revenue was $85.32m (1H23: $60.05m), with profit before tax and non-controlling interests of $21.53m (1H23:
$11.47m). Group loss after tax and non-controlling interests of $(11.75m) (1H23: $6.18m) was impacted by a one-off non-
cash $25.76m deferred tax liability adjustment as a result of a change in tax legislation. Excluding this adjustment and
other one-off items, profit after tax was $12.57m.

Earnings per share for the period was -7.42 cents per share (1H23: 3.9 cps). Net Tangible Assets per share as at 30 June
2024 was $3.36 per share (Dec 2023: $3.46 per share).

Outlook

The Hotels business now has good staffing levels and more room capacity following completion of certain refurbishment
works. While some regions have seen a dampening in demand, other areas such as Queenstown remain extremely strong.
Economic headwinds remain challenging and there are no major tourist attractions, such as last year’s FIFA Women’s
World Cup, planned for the winter period. These trends of dampened demand are expected to continue into the third
quarter, but with a resurgence of activity from overseas visitors in quarter four.

CDL Investments 2024 sales performance is showing improvement and the company is also positioning itself for future
diversification with its recent purchase of industrial-zoned land in Christchurch. MCK will see the benefits from both in the
near to medium term.

Stuart Harrison commented: “One matter which is hampering our ability to optimise our future projections is the lack of
any clear direction, new initiatives or funding announced by Government in relation to boosting tourism. With other
countries actively competing for world-class events and receiving government funding to do so, there is a real risk of New
Zealand missing out and creating a disadvantage which will take some years to fix. Our view is that such funding would be
a wise investment and help the tourism and accommodation industries “get back on track” and secure their medium-term
futures.”

He continued: “Our team are highly focused on securing business across all market segments and in all regions for the
remainder of the year and into 2025. We have set ourselves stretch targets for both revenue and profit for this year and
we are determined to achieve these. Our half year profit before tax result highlights that we are making excellent progress
on our strategy and laying the groundwork to truly Thrive from 2025 onwards”, he said.

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 including a 50% ownership interest in the Sofitel
Hotel Brisbane Central through a joint venture.

For more information, visit our website:
www.millenniumhotels.co.nz

---

Page 1

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Income Statement
for the six months ended 30 June 2024



UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNOTE
to 30/06/24to 30/06/23
Revenue85,319 60,051
Cost of sales(38,485) (28,780)
Gross profit46,834 31,271
Administrative expenses(14,649) (12,981)
Other operating expenses(12,374) (9,564)
Operating profit before finance income19,811 8,726
Finance income2,837 3,785
Finance costs(1,095) (1,045)
Net finance income1,742 2,740
Share of profit/(loss) of joint venture
9
(19) -
Profit before income tax21,534 11,466
Income tax expense
5
(5,948) (3,085)
Income tax expense arising from change in building depreciation
5
(25,760) -
Profit/(loss) for the period(10,174) 8,381
Profit/(loss) for the period attributable to:
Equity holders of the parent(11,747) 6,177
Non-controlling interests1,573 2,204
Profit/(loss) for the period (10,174) 8,381
Basic earnings per share (cents)
4
-7.42c3.90c
Diluted earnings per share (cents)
4
-7.42c3.90c
The attached notes form part of, and are to be read in conjunction with, these financial statem ents .

Page 2

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Comprehensive Income
for the six months ended 30 June 2024



UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNote
to 30/06/24to 30/06/23
Profit/(loss) for the period
(10,174) 8,381
Items that are or may be reclassified to profit or loss
Foreign exchange translation movements841 894
- Tax (expense)/credit on foreign exchange- (5)
841 889
Total comprehensive income/(loss) for the period(9,333) 9,270
Total comprehensive income/(loss) for the period attributable to:
Equity holders of the parent(10,906) 7,066
Non-controlling interests1,573 2,204
Total comprehensive income/(loss) for the period(9,333) 9,270
DETAILS OF SPECIFIC RECEIPTS/OUTLAYS, REVENUE/EXPENSES
Classified under:
Administrative expenses
Audit fees(195) (176)
Other operating expenses
Depreciation of Property, Plant & Equipment(3,581) (3,444)
Depreciation of Investment Property(275) (511)
Depreciation of Right-Of-Use Assets (447) (411)
Leasing and rental expenses(367) (341)
Finance income
Interest income2,479 3,785
Finance costs
Interest expense on lease liability(951) (895)
Foreign exchange loss(73) (144)
The attached notes form part of, and are to be read in conjunction with, thes e financial s tatem ents .

Page 3
Millennium & Copthorne Hotels New Zealand Limited a
nd Subsidiaries
Condensed Interim Statement of Changes in Equity for the six months ended 30 June 2024 (unaudited)

Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Unaudi
ted
Share
Exchange
Retained
Treasury
Unaudited
Non-controlli
ng
Total
DOLLARS IN THOUSANDS
NOTE
Capital
Reserves
Earnings
Stock
Total
Interests
Equity
Balance at 1 January 2023
383,266

(1,396)

149,175

(26)

531,019

111,682

642,701

Movement in exchange translation reserve
-

889

-

-

889

-

889

Income and expense recognised directly in equity
-

889

-

-

889

-

889

Profit for the period
-

-

6,177

-

6,177

2,204

8,381

Total comprehensive income for the period
-

889

6,177

-

7,066

2,204

9,270

Transactions with owners, recorded directly in equi
ty :
Dividends paid to:
Equity holders of the parent
6
-

-

(4,747)

-

(4,747)

-

(4,747)

Non-controlling interests
-

-

-

-

-

(3,940)

(3,940)

Movement of non-controlling interests without a cha
nge in control
-

-

(374)

-

(374)

1,863

1,489

Balance at 30 June 2023
383,266

(507)

150,231

(26)

532,964

111,809

644,773

Balance at 1 January 2024
383,266

(980)

165,656

(26)

547,916

114,536

662,452

Movement in exchange translation reserve
-

841

-

-

841

-

841

Income and expense recognised directly in equity
-

841

-

-

841

-

841

Profit/(loss) for the period
-

-

(11,747)

-

(11,747)

1,573

(10,174)

Total comprehensive income for the period
-

841

(11,747)

-

(10,906)

1,573

(9,333)

Transactions with owners, recorded directly in equi
ty :
Dividends paid to:
Equity holders of the parent
6
-

-

(4,747)

-

(4,747)

-

(4,747)

Non-controlling interests
-

-

-

-

-

(4,138)

(4,138)

Movement of non-controlling interests without a cha
nge in control
-

-

(242)

-

(242)

965

723

Balance at 30 June 2024
383,266

(139)

148,920

(26)

532,021

112,936

644,957

The attached notes form part of, and are to be read
in conjunction with, these financial statements.
Attibutable to Equity Holders of the Group

Page 4

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Financial Position
As at 30 June 2024



UnauditedAudited
as atas at
DOLLARS IN THOUSANDSNOTE
30/06/2431/12/23
SHAREHOLDERS' EQUITY
Issued capital3383,266 383,266
Reserves148,781 164,676
Treasury stock
3(26) (26)
Non-controlling interests112,936 114,536
Total equity644,957 662,452
Represented by:
NON CURRENT ASSETS
Property, plant and equipment266,742 263,051
Development properties 235,816 217,221
Investment properties35,646 35,834
Investment in associates2 2
Investment in joint venture44,338 43,943
Total non-current assets582,544 560,051
CURRENT ASSETS
Cash and cash equivalents35,387 11,256
Short term bank deposits26,782 64,075
Trade and other receivables15,422 20,391
Advance to related parties
7
63,495 62,516
Inventories1,689 1,640
Development properties13,203 26,861
Total current assets155,978 186,739
Total assets738,522 746,790
NON CURRENT LIABILITIES
Lease liabilities26,988 27,111
Provision for deferred taxation32,609 7,001
Total non-current liabilities59,597 34,112
CURRENT LIABILITIES
Interest-bearing loans and borrowings- 11,968
Trade and other payables29,551 32,348
Trade payables due to related parties
7
2,804 2,318
Lease liabilities251 215
Income tax payable1,362 3,377
Total current liabilities33,968 50,226
Total liabilities93,565 84,338
Net assets644,957 662,452
Net Asset Backing before Distributions (cents per share)
The attached notes form part of, and are to be read in conjunction with, thes e financial s tatements .

Page 5

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Cash Flows
For the six months ended 30 June 2024




UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNOTE
to 30/06/24to 30/06/23
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers89,888 52,108
Interest received2,269 3,673
92,157 55,781
Cash was applied to:
Payments to suppliers and employees(62,039) (44,449)
Purchase of development land(6,620) -
Interest paid(95) -
Income tax paid(8,137) (7,083)
(76,891) (51,532)
Net cash inflow from operating activities15,266 4,249
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from/(applied to):
Purchase of property, plant and equipment(7,680) (5,051)
Purchase of investment property(87) (286)
Proceed from the sale of property, plant and equipment- (3)
(Investments in) / withdrawals from short term bank deposits37,293 5,849
Net cash inflow/(outflow) from investing activities29,526 509
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from/(applied to):
Repayment of borrowings(11,968) -
Principal repayment of lease liability(1,086) (1,082)
Dividends paid to shareholders of Millennium & Copthorne
Hotels New Zealand Ltd
6
(4,747) (4,747)
Dividends paid to non-controlling interests (4,138) (3,940)
Net cash outflow from financing activities(21,939) (9,769)
Net (decrease)/increase in cash and cash equivalents22,853 (5,011)
Add opening cash and cash equivalents11,256 61,387
Exchange rate adjustment1,278 1,960
Closing cash and cash equivalents35,387 58,336
The attached notes form part of, and are to be read in conjunction with, thes e financial s tatem ents.

Page 6

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Cash Flows
For the six months ended 30 June 2024


UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNOTE
to 30/06/24to 30/06/23
Reconciliation of net profit/(loss) for the period to cash flows from operating activities
Profit/(loss) for the period(10,174) 8,381
Adjusted for non cash items:
Share of loss/(profit) Joint Venture
9
19 -
(Gain)/loss on Sale of Fixed Assets9 3
Foreign Exchange (Gain)/ Loss(285) 144
Depreciation of Property, Plant & Equipment3,581 3,444
Depreciation of Right-Of-Use Assets 447 411
Depreciation of Investment Property275 511
Income tax expense / (credit)31,708 3,085
Adjustments for movements in working capital:
Decrease/(Increase) in receivables4,359 (8,055)
Decrease in inventories(49) 35
(Increase)/Decrease in development properties(4,787) 1,952
Increase/(Decrease) in payables(1,722) 1,262
Increase/(Decrease) in related parties117 159
Cash generated from operations23,498 11,332
Interest paid(95) -
Income tax paid(8,137) (7,083)
Net cash inflow from operating activities15,2664,249
Reconciliation of movement of liabilities to cash flows arising
UnauditedUnaudited
from financing activities
6 months6 months
to 30/06/24to 30/06/23
As at 1 January
11,968 -
Proceeds from borrowings- -
Repayment of borrowings(11,968) -
Financing cash flows
(11,968) -
As at 30 June- -
The attached notes form part of, and are to be read in conjunction with, these financial s tatements .

Page 7

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2024 (unaudited)

1. Significant accounting policies

Millennium & Copthorne Hotels New Zealand Limited is a company domiciled in New Zealand, registered under the
Companies Act 1993 and listed on the New Zealand Stock Exchange. Millennium & Copthorne Hotels New Zealand Limited
(the “Company”) is a Financial Markets Conduct Reporting Entity in terms of Financial Markets Conduct Act 2013 and the
Financial Reporting Act 2013. The condensed interim financial statements of the Company for the six months ended 30 June
2024 comprise the Company and its subsidiaries (together referred to as the “Group”). The registered office is located at
level 7, 23 Customs Street East, Auckland, New Zealand.

The principal activities of the Group are ownership and operation of hotels in New Zealand; residential development and sale
of land in New Zealand; ownership and leasing of investment properties in New Zealand and development and sale of
residential units in Australia.

The condensed interim financial statements were authorised for issuance on 07 August 2024.

(a) Statement of compliance

The condensed interim financial statements have been prepared in accordance with New Zealand Generally Accepted
Accounting Practice (NZ GAAP). They comply with NZ IAS 34
Interim Financial Reporting. The condensed interim financial
statements do not include all of the information required for full annual financial statements.

The accounting policies and methods of computation applied by the Group in these condensed interim financial statements
are the same as those applied by the Group in its financial statements for the year ended 31 December 2023.


2. Segment reporting

Segment information is presented in the condensed interim financial statements in respect of the Group’s reporting segments.
Operating segments are the primary basis of segment reporting. The Group has determined that its chief operating decision
maker is the Board of Directors on the basis that it is this group which determines the allocation of resources to segments and
assesses their performance.

Inter-segment pricing is determined on an arm’s length basis. Segment results include items directly attributable to a segment
as well as those that can be allocated on a reasonable basis.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be
used for more than one period.

Operating segments

The Group consisted of the following main operating segments:
• Hotel operations, comprising income from the ownership and management of hotels.
• Residential land development, comprising the development and sale of residential land sections.
• Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouse.
• Residential and commercial property development, comprising the development and sale of residential apartments.

Geographical segments

The Group operates in the following main geographic segments:
• New Zealand
• Australia

Segment revenue is based on the geographical location of the asset. The Group has no major customer representing
greater than 10% of the Group’s total revenue.

Page 8

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2024 (unaudited)

2. Segment reporting - continued

(a) Operating Segments













Dollars in thousands
to 30/06/24 to 30/06/23 to 30/06/24 to 30/06/23 to 30/06/24 to 30/06/23 to 30/06/24 to 30/06/23 to 30/06/24 to 30/06/23
External revenue55,90147,45215,31010,7491,3051,21912,80363185,31960,051
Earnings before interest, depreciation,
am ortisation & tax
Finance incom e7601,1951,3501,713--7278772,8373,785
Finance expens e(1,088)(1,038)(6)(6)--(1)(1)(1,095)(1,045)
Depreciation and am ortisation(3,574)(3,438)(4)(3)(275)(511)(3)(3)(3,856)(3,955)
Depreciation of Right-of-use ass ets(422)(392)(20)(14)--(5)(5)(447)(411)
Share of profit/(loss) of joint venture(19)-------(19)-
Profit before incom e tax6,5704,0298,1866,2901,0216885,75745921,53411,466
Incom e tax expens e(23,516)(992)(2,265)(1,761)(4,199)(193)(1,728)(139)(31,708)(3,085)
Profit/(los s) after income tax(16,946)3,0375,9214,529(3,178)4954,029320(10,174)8,381
Property, plant and equipm ent
expenditure
7,7277,470-6---137,7277,489
Investm ent property expenditure----87285--87285
Res idential land developm ent
expenditure
--11,6262,420----11,6262,420
Purchas e of land for res idential
land developm ent
--6,620-----6,620-
30/06/2431/12/23 30/06/2431/12/23 30/06/2431/12/23 30/06/2431/12/23 30/06/2431/12/23
Cas h & cas h equivalents and
short term bank deposits
18,46716,98235,85352,159--7,8496,19062,16975,331
Investm ent in as sociates --22----22
Investm ent in joint venture44,33843,943------44,33843,943
Other s egm ent as sets320,048339,925241,752231,23135,64635,83434,56720,524632,013627,514
Total assets382,853400,850277,607283,39235,64635,83442,41626,714738,522746,790
Segment liabilities(56,050)(68,516)(2,148)(4,053)--(1,396)(1,391)(59,594)(73,960)
Tax liabilities(27,756)(7,393)(180)(1,449)(3,913)-(2,122)(1,536)(33,971)(10,378)
Total liabilities(83,806)(75,909)(2,328)(5,502)(3,913)-(3,518)(2,927)(93,565)(84,338)
10,9137,7026,8664,6001,296
Hotel Operations
Residential Land
Development
Investment Property
Residential Property
Development
Group
1,1995,039(409)24,11413,092
6 m onths6 m onths6 m onths6 m onths6 m onths
As atAs atAs atAs atAs at

Page 9

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2024 (unaudited)

2. Segment reporting - continued










(b) Geographic Segments
Dollars in thousands
to 30/06/24 to 30/06/23 to 30/06/24 to 30/06/23 to 30/06/24 to 30/06/23
External revenue72,51659,42012,80363185,31960,051
Earnings before interes t, depreciation,
amortis ation & tax
Finance incom e2,1102,9087278772,8373,785
Finance expens e(1,094)(1,044)(1)(1)(1,095)(1,045)
Depreciation and amortis ation(3,853)(3,952)(3)(3)(3,856)(3,955)
Depreciation of Right-of-us e as sets(442)(406)(5)(5)(447)(411)
Share of profit/(los s ) of joint venture--(19)-(19)-
Profit before incom e tax15,80511,0165,72945021,53411,466
Income tax expens e(29,983)(2,949)(1,725)(136)(31,708)(3,085)
Profit/(los s ) after income tax(14,178)8,0674,004314(10,174)8,381
Property, plant and equipment expenditure 7,7277,476-137,7277,489
Inves tm ent property expenditure87285--87285
Res idential land development expenditure11,6262,420--11,6262,420
Purchas e of land for res idential land
development
6,620---6,620-
30/06/2431/12/23 30/06/2431/12/23 30/06/2431/12/23
Cas h & cas h equivalents and s hort term
bank depos its
54,32069,1417,8496,19062,16975,331
Inves tm ent in as s ociates22--22
Inves tm ent in joint venture--44,33843,94344,33843,943
Inves tm ent property35,64635,834--35,64635,834
Other s egm ent as s ets517,462508,89578,90582,785596,367591,680
Total ass ets 607,430613,872131,092132,918738,522746,790
Segm ent liabilities(58,198)(72,569)(1,396)(1,391)(59,594)(73,960)
Tax liabilities(31,849)(8,842)(2,122)(1,536)(33,971)(10,378)
Total liabilities(90,047)(81,411)(3,518)(2,927)(93,565)(84,338)
New ZealandAustraliaGroup
19,08413,5105,030(418)24,11413,092
6 m onths6 m onths6 m onths
As atAs atAs at

Page 10

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2024 (unaudited)


3. Share capital


Ordinary shares Redeemable preference shares
Shares $ 000s Shares $ 000s
Total shares issued – fully paid

Balance at 30 June 2023 105,578,290 350,048 52,739,543 33,218
Balance at 30 June 2024 105,578,290 350,048 52,739,543 33,218


Ordinary shares repurchased and
held as treasury stock



Balance at 30 June 2023 (99,547) (26) - -
Balance at 30 June 2024 (99,547) (26) - -


Shares issued – fully paid

Balance at 30 June 2023 105,478,743 350,022 52,739,543 33,218
Balance at 30 June 2024 105,478,743 350,022 52,739,543 33,218



At 30 June 2024, the authorised share capital consisted of 105,578,290 ordinary shares (2023: 105,578,290 ordinary shares)
with no par value and 52,739,543 redeemable preference shares (2023: 52,739,543) with no par value.




4. Earnings per share

The basic earnings per share of -7.42 cents (30 June 2023: 3.90 cents) is based on the profit/(loss) attributable to ordinary
shareholders of -$11.7 million (30 June 2023: $6.18 million) and weighted average number of ordinary shares and redeemable
preference shares outstanding during the period ended 30 June 2024 of 158,218,286 (30 June 2023: 158,218,286).

The redeemable preference shares are included in the computation of earnings per share as they rank equally with ordinary
shares in respect of distributions made by the Company except any distribution in the case of liquidation.

The calculation of diluted earnings per share of -7.42 cents (30 June 2023: 3.90 cents) is the same as basic earnings per share.



5. Income tax expense

Recognised in the income statement

Group
Dollars In Thousands

Six months to
30/06/24
Six months to
30/06/23
Current tax expense

Current year 6,132 3,186
Adjustments for prior years (27) -
6,106 3,186

Deferred tax expense


Origination and reversal of temporary difference (158) (101)
Changes in treatment of building depreciation 25,760 -
25,602 (101)
Total income tax expense in the income statement

31,708 3,085

Page 11

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2024 (unaudited)

5. Income tax expense -continued


Reconciliation of tax expense

Group
Dollars In Thousands
Six months to
30/06/24
Six months to
30/06/23
Profit before income tax 21,534 11,466
Income tax at the company tax rate of 28% (2023: 28%) 6,030 3,211
Adjusted for:
Tax rate difference (if different from 28% above) 114 10
Non-deductible expenses 1 -
Tax exempt income (170) (135)
Changes in treatment of building depreciation 25,760 -
Under/(Over) - provided in prior years (27) -
Total income tax expense
31,708 3,085
Effective tax rate (147%) 27%


Impact of change in tax depreciation

Before 2010, all components of commercial buildings were depreciable for tax purposes. On 28 March 2024, the Taxation
(Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) legislation was enacted, encompassing a range of
changes to tax legislation including the removal of the tax deduction for depreciation on building core of commercial buildings.

As a result of the change in legislation, income tax expense and deferred tax liability has increased by $25.8m for the six months
ended 30 June 2024.


6. Dividends

The following dividends were paid during the interim periods:



Group
Dollars In Thousands
Six months to
30/06/24
Six months to
30/06/23


Ordinary dividend: 3.0 cents per qualifying share (2023: 3.0 cents) 4,747 4,747
Supplementary dividend: 0.529412 cents per qualifying share (2023:
0.529412 cents)

94

98

4,841 4,845

Page 12

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2024 (unaudited)


7. Related party transactions

Millennium & Copthorne Hotels New Zealand Limited is a 75.78% (2023: 75.78%) (economic interests from both ordinary and
preference shares) owned subsidiary of CDL Hotels Holdings New Zealand Limited which is a wholly owned subsidiary of
Millennium & Copthorne Hotels Ltd in the United Kingdom. The ultimate parent company is Hong Leong Investment Holdings
Pte Limited in Singapore.


At balance date there were related party advances owing from/(owing to) the following related companies:


Group
Dollars In Thousands
Nature of balance 6 months to
30/06/24
6 months to
30/06/23
Trade payables and receivables due to
related parties

Millennium & Copthorne Hotels Limited Recharge of expenses (1,637) (2,096)

Millennium & Copthorne International
Limited
Recharge of expenses
& provision of management and
marketing support

-

-

-

(102)
Marquee Hotel Holdings Pty Ltd
Interest bearing advance
19,265 -
Marquee Hotel Holdings Pty Ltd Interest free advance 43,539 -
Marquee Hotel Holdings Pty Ltd
Interest receivable
661 -
CDL Hotels Holdings New Zealand Limited Recharge of expenses 30 (51)
CDLH (BVI) One Limited Recharge of expenses (938) -
CDLH (BVI) One Limited Rent payment (229) (158)

60,691 (2,407)

No debts with related parties were written off or forgiven during the year. Interest at 6.43% was charged on interest bearing
advance during 2024. No interest was charged for the other payables or on the interest free advance. The related party advances
to Marquee Hotel Holdings Pty Ltd are unsecured.

During 2024, the Group had the following transactions with related parties:
Group
Dollars In Thousands Nature of balance
6 months
to
30/06/24
6 months
to
30/06/23
Marquee Hotel Holdings Pty Ltd Interest receivable 613 -

CDLHT (BVI) One Ltd
Management, franchise and incentive
income 478 646
M&C Reservation Services Ltd (UK) Management and marketing support (590) (137)
CDL Hotels Holdings New Zealand
Limited
Accounting support fee received
30 30


8. Capital commitments

As at 30 June 2024, the Group has entered into contractual commitments for capital expenditure and development
expenditure.

Group
Dollars In Thousands
30/06/24 30/06/23
Capital expenditure on property, plant and equipment 4,144 2,072
Development expenditure 10,542 21,471
Capital expenditure on investment properties 11 60
Land purchases 17,100 20,407

31,797 44,010

As at 30 June 2024, the Group had entered into contractual commitments for development expenditure, and construction of
investment properties. Contractual agreements for the purchase of land are subject to a satisfactory outcome of the Group's
due diligence process, board approval, and OIO approval. Development expenditure represents amounts contracted and
forecast to be incurred in the remainder of 2024 in accordance with the Group’s development programme.

Page 13

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2024 (unaudited)



9. Investment in joint venture

A joint venture is an arrangement in which the Group has joint control, over the financial and operating policies. They are
accounted for using the equity method. The financial statements include the Group’s share of the income, expenses and
reserves of the joint venture from the date that joint control commences until the date that joint control ceases. When the Group’s
share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest (including any long-
term investments) is reduced to nil and the recognition of further losses is discontinued except to the extent that the Group has
an obligation or has made payments on behalf of the joint venture.

During 2023, the Group through Kingsgate Holdings Pty Limited (100% subsidiary) formed a 50:50 joint venture with its Parent
Company to acquire the leasehold assets and the freehold assets of the Sofitel Brisbane Central hotel in Queensland,
Australia. The joint venture is Marquee Hotel Holdings Pty Ltd Limited. Within the Marquee Hotel Holdings group, there are six
wholly owned entities. Marquee Hotel Holdings group completed the acquisition of the Sofitel Brisbane Central on 15
December 2023. The hotel is managed by an external hotel management group.

The Group’s share of loss in its joint venture for the period ended 30 June 2024 was $19,016.




Principal Activity
Principal
Place of
Business
Group
interest%

2024
Marquee Hotel Holdings Pty
Limited Investment Holding Australia 50.00

100% owned subsidiaries of
Marquee Hotel Holdings Pty
Limited are:

Marquee Brisbane Hotel Pty
Limited
Trustee Company of Marquee Brisbane Hotel
Trust Australia
Marquee Brisbane Hotel Trust Lessee of leasehold assets expiring 30
December 2057 Australia

Marquee Brisbane Hotel 2 Pty
Limited
Trustee Company of Marquee Brisbane Hotel
2 Trust Australia
Marquee Brisbane Hotel 2 Trust Lessee of leasehold assets expiring 24 May
2120 Australia


Marquee Hotel Operations Pty
Limited
Trustee Company of Marquee Hotel
Operations Pty Trust Australia
Marquee Hotel Operations Pty
Trust
Hotel Assets and Operations
Australia

Page 14


Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2024 (unaudited)



9. Investment in joint venture (continued)


Summary financial information for joint venture, not adjusted for the percentage ownership held by the Group:

Group Group
Dollars In Thousands
As at
30/06/24
As at
31/12/23
Non-current assets 201,809 202,650
Current assets 22,851 27,477
Non-current liabilities - -
Current liabilities (135,985) (142,241)
Net assets (100%) 88,675 87,886
Group’s share (50%) 44,338 43,943


The current assets balance of the joint venture includes a cash and cash equivalents balance of $20.21m. The current
liabilities balance of the joint venture includes balances owing to shareholders of $126.3m.

Group

6 months to
30/06/24
Revenue 23,261
Operating profit/(loss) 854
Interest income 317
Interest expense (1,225)
Income tax expense 16
Profit for the year (100%) (38)
Group’s share of profit (50%) 19


Movements in the carrying value of joint venture:
Group

As at
30/06/24
Balance at 1 January 43,943
Share of profit for the year (19)
Foreign exchange adjustments 414
Balance at 30 June 44,338