MCK HY25 Results Announcement

HY25 INTERIM RESULTS
FOR THE HALF YEAR ENDED 30 JUNE 2025
1

Strategic execution proving the resilience of the business,
and value of the Revive and Thrive strategy
Long term property improvement programme adding
further value to existing assets
Positioned to capitalise as the tourism sector rebounds
2

HY25 Performance Snapshot
Short term impact of economic headwinds, on track for recovery
TOTAL
REVENUE
NZ HOTEL
REVENUE
PROFIT
BEFORE TAX
$79.3m
HY24: $85.3m
$64.1m
HY24: $55.9m
$11.3m
HY24: $21.5m
EARNINGS PER
SHARE
TOTAL
ASSETS
SHAREHOLDERS’
FUNDS
4.20 cents
HY24: 7.94 cents
1
BOOK VALUE
$787.3m
FY24: $762.3
$547.4m
FY24: $547.9m
•Hotels: continuing positive growth
in hotel business
▪Softer domestic consumer and
corporate travel as fiscal
conditions bite
•Residential property development:
cooldown in sales with trading
conditions more subdued than
envisaged
•Use of capital: continuing to invest
in hotel property refurbishments
and network expansion
1.Adjusted for one-off deferred tax adjustment, made as a result of government legislation change
3

•Uplift in NZ Hotels revenue driven by
refurbishments with increased rooms available
and demand
•Property sales opportunities softer
•Improvement in hotel operating profit offset by
drop in property sale contribution
•Profit before tax decreases 47.3% yoy
•HY24 profit after tax impacted by a one-off,
non-cash $25.8m deferred tax adjustment
due to the change in tax depreciation rules
Unaudited
HY25
Unaudited
HY24change
Revenue – Hotel
Rental income
Property sales
64.07
1.53
13.69
55.90
1.30
28.12
+14.6%
+18.0%
-51.3%
REVENUE79.3085.32-7.1%
Operating profit11.9719.81-39.6%
Finance (expense)/income(1.37)1.74
Share of profit of joint venture (Sofitel
Brisbane)
0.75(0.02)
Profit before tax11.3521.53-47.3%
One off deferred tax adjustment-25.76
Profit after tax8.50(10.17)+184%
Earnings per share4.20c(7.42c)
EPS excl. one-off deferred tax adjustment 7.94c
Group Summary
Strong Hotels trading benefits from increased rooms and revenue despite headwinds
4

•PP&E increases with the acquisition of The
Mayfair Hotel, Christchurch & hotel
refurbishments
•Development properties increase with the
strategic acquisitions of land by CDL Investments
•Utilisation of the bank facility to fund the
settlement of The Mayfair Hotel
Unaudited
HY25FY24Change
Property, plant and equipment (PP&E)322.7283.4
Development properties283.7264.1
Investment properties36.436.3
Investment in JV46.246.6
Loans in JV62.263.8
Cash and bank deposits18.741.3
Total assets787.3762.3+3.2%
Bank debt30.03.0
Deferred tax liability32.532.7
Other Liabilities61.961.6
Net Assets662.9664.9+0.3%
NTA per share3.463.46
Robust Balance Sheet
Ready to deploy, provides optionality for growth phase
5

Millennium Hotel Queenstown
Business Performance
6

HY2025: Hotel Rooms Revenue increased by 14.3% compared to the
same period last year with both Q1 and Q2 being higher
Q1 2025: Positive flow of international visitors and domestic market
along with increased room capacity. Q1 prior year was the first quarter
in five years without the impact of covid, weather events or large staffing
shortages
Q2 2025: Steady trading in challenging conditions as increased hotel
inventory impact. Q2 prior year had steady trading as hotels adjusted
with no special events (sport, concerts etc) to create demand.
Q1
2024
Q2
2024
Q1
2025
Q2
2025
NZ Hotels Quarterly Revenue
HY25 NZ Hotel Business Making Progress
Focused on making sure we have the best hotel properties available
to capture demand as the tourism market recovers
7

Millennium Hotel Queenstown - Suite
FILLING IN THE GAPS IN OUR NETWORK
The Mayfair Hotel, ChristchurchSettled January 2025, adding 67 rooms & suites$31.9m
Key projects in progressSizeTiming of completion
Millennium Hotel Queenstown15 suites nearing completionQ3 FY25
Millennium Hotel Rotorua127 rooms and 2 suites nearing completionQ3 FY25
Copthorne Hotel Palmerston NorthRecladding and other workscompleted
Continued Investment Into Hotel Network
Expansion and improvement; Full benefits of refurbishment programme yet to be realised
Millennium Hotel Rotorua – DeluxeCopthorne Hotel Palmerston North
8

Sofitel Brisbane
•Consistent demand across all major segments
•Uplift from special events (British & Irish Lions Tour,
State of Origin and In-house Conferencing)
•Increasing contribution to group profitability expected
to continue
Zenith Apartments (Sydney)
•Sale of one apartment (HY2024: 6)
•Continuing stream of rental income
•Transfer of several units from rental pool to vacant
to meet market demand as part of sell-down
Sofitel Brisbane Joint VentureUnaudited
HY25
$m
Unaudited
HY24
$m
Hotel Revenue 25.2523.26
Hotel Operating profit2.730.85
Profit after tax for the year1.51(0.04)
MCK’s share of: Profit after tax0.75(0.02)
Interest Income0.550.61
Zenith Apartments – 100%HY25HY24
Units sold this year16
Units Available2125
Rental & Sales Income$1.4m$12.8m
Profit/(Loss) before tax for the year($0.4m)$5.8m
Australia Operations
Strong performance from Sofitel Brisbane, positive progress on apartment sales
9

•Diverse portfolio of land development and
commercial property leasing
•Total land holding 302ha
•Maintained a nationwide geographical spread
Continually looking to grow the Portfolio
•R2 Growth Cell (Hamilton) and Arataki Rd (Havelock
North) projects included in Fast-track Approvals
legislation
Unaudited
HY25
$m
Unaudited
HY24
$m
Revenue 13.7616.61(17.2%)
Operating profit4.817.86(38.8%)
Profit before tax5.059.21(45.2%)
FY24
Development properties271.8251.4
Investment properties36.436.3
Cash and bank deposits10.933.3
Total assets323.9328.6(1.4%)
Bank debt--
Net assets313.7319.7(1.9%)
CDL Investments
Trading conditions more subdued than envisaged, effects of recent reductions in bank lending rates have
not yet translated to increased activity in housing and other property markets
10

•Global and domestic economic recovery will drive
demand – timing and pace remains uncertain
•Varied regional demand – some areas remain
extremely strong
•Central and local Government action and support
needed to promote NZ and attract tourists,
conferences and events
•Property markets in New Zealand are more
subdued than envisage so looking for signs of
improvement
•Optimising the sale of residential sections where
demand is highest
•Advancing development works across key sites
2025 Priorities
2025 Outlook
Continued progress under Revive
and Thrive strategy
•Ongoing control over the controllables - strong
staffing levels and more room capacity
•Continue to increase the number of rooms available
to sell following refurbishments and rooms being
recommissioned
•Continued investment into refurbishment and
upgrades
•Grow My Millennium loyalty scheme to drive
bookings
•Identify and assess opportunities for surplus land
2025 represents MHR’s 30
th
year of continuous
operations in New Zealand
11

Copthorne Hotel and Resort Bay of Islands
Appendices
12

New Zealand Hotel Brands:
•Lifestyle – M Social
•Premium – Grand Millennium & Millennium
•Comfortable - Copthorne & Kingsgate
CDL Investments New Zealand:
•Land developments
•Investment properties
•Projects in progress across New Zealand
Australia:
•Zenith Residences – Exit Strategy
•JV - Sofitel Brisbane Central
Our Business
•Own and operate hotels across New Zealand;
building beachhead in Australia
•Experienced executive team
•~1,200 team members across New Zealand and
Australia
•Own 65% shareholding in CDL Investments NZ –
residential and commercial land development
•NZX-listed. Board with independent Chairman, as
well as representation from majority shareholder
•MCK is 83.9% owned by CDL Hotels Holdings, a
100% subsidiary of Hong Leong Group
13

19
Hotels in New Zealand
Opportunity to fill in the network
2,300 rooms per night owned and managed
1
Hotel in Australia
*
Beachhead established.
Significant opportunity to build footprint
*50/50 Joint Venture of Brisbane Central Hotel – with Hotel Management Agreement
The Mayfair acquired January 2025, post financial year end
Our Hotel Networks
As at 30 June 2025
14

Residential & commercial land development
4x Commercial Investment properties -
2x Warehouses
2x Retail
Projects across New Zealand
11x Residential Land Development
1x Commercial Land Development
CDL Investments NZ (NZX: CDI)
65.3% shareholding
Provides MCK with a diversified property portfolio and revenue stream
15

16

Explore New Zealand with Millennium Hotel and Resorts
At Millennium Hotels and Resorts, we believe there are A Thousand Ways of Happiness — and it all starts with
where you stay. Proudly located across New Zealand’s most sought-after destinations, from the urban energy of
gateway cities to scenic lakes, bays, and mountains, our hotels offer the best of both business and leisure.
With trusted global standards and deep local roots, our 19 properties are uniquely equipped to deliver
memorable experiences. We offer everything from refined corporate stays and large-scale conferences to group
tours, romantic escapes, and unforgettable family holidays. Our versatile event spaces include some of the
largest ballrooms in their regions, backed by dedicated on-site teams and cutting-edge facilities.
Every hotel offers easy access, and some locations provide ample car parking, ensuring a smooth and hassle-
free guest experience. And with a range of brands — from smart 3-star solutions to elegant 5-star escapes —
we cater to a wide range of budgets, travel styles, and business needs. Plus, My Millennium members enjoy
exclusive rates, stay benefits, and recognition every time they book direct.
17

LIFESTYLE
18

PREMIUM
19

COMFORTABLE
20

21

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
22

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MCK interim results for six months to 30 June 2025

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 2025.

The Hotel business continued to perform strongly, with positive gains offset by a softer result from CDL
Investments, which reported reduced property sales as a result of market conditions which have been more
subdued than anticipated.

Hotel revenue grew by 15% year on year, driven by increased room availability as a result of the long term
refurbishment plan and from increasing demand from international travellers. The year on year uplift was
despite softer domestic and corporate travel, and further gains are expected when these market recover.

Property sales were impacted by the cool down in the property market (with sales revenue down 51% YOY),
resulting in a 7% decrease in total revenue to $79.3m (FY24: 85.3m).

One sale at the Zenith Residences was also recorded in this half year. We are aiming to exit our remaining units
within the next 12 months, subject to favourable market conditions.

The reduced contribution from CDL was the primary driver for MCK’s lower profit result, with profit before tax of
$11.35m (FY24: 21.53m).

MCK has a robust balance sheet, providing resilience to navigate through the current cycle and optionality for
growth. Bank facilities were utilised for the acquisition of the Mayfair Hotel in January 2025, with bank debt
increasing to $30m as at 30 June 2025.

MCK’s Managing Director, Stuart Harrison, noted the positive performance of MCK’s recently acquired hotels.

“Both the Mayfair Hotel Christchurch and Sofitel Brisbane Central hotel continue to perform above our
expectations. The Mayfair Hotel Christchurch’s contribution to our revenue and profit in this half year has been
positive and Sofitel Hotel Brisbane saw an increase in their average rate and occupancy and their contribution to
profit has increased. We expect that both hotels will continue to do well in the second half of the year. “

“2025 has also seen more progress with our refurbishment and upgrade works. We have completed room
upgrades at Copthorne Hotel & Resort Bay of Islands and Copthorne Hotel Palmerston North this year and guest
feedback has been very positive at both hotels. That has translated into improved guest satisfaction scores. We
will shortly have more rooms including suites back from refurbishment at Millennium Hotel Queenstown just in
time for the peak of the winter season”.

MCK’s majority owned property development subsidiary, CDL Investments New Zealand Limited (CDI), has been
impacted by the subdued New Zealand housing market which affected half year revenue and profit. CDI has not
yet seen the effects of recent reductions in bank lending rates being translated to increased activity in housing
and other property markets within New Zealand.


Results snapshot

Six months to 30 June 1H25 1H24
Average hotel occupancy across the Group 70.0% 69.0%
Group revenue $79.30m $ 85.32m
Profit before income tax $11.35m $21.53m
Profit/(Loss) after tax attributable to equity holders of
parent
$6.65m $ (11.75m)
Profit/(Loss) after tax attributable to equity holders of
parent (excluding one-off tax adjustment)
$12.57m
Earnings per share (cents per share) 4.20c -7.42 cps
Earnings per share (adjusted for one-off tax adjustment) 7.94 cps

Outlook

We expect that challenging trading conditions will continue into Q3 2025 across all business segments, with some
growth expected from domestic and international business in Q4 2025. The company continues to monitor global
events closely as travel patterns are changing rapidly in response to unexpected events and policy changes.

CDI’s priority for the rest of this year will be optimising the sale of its sections where demand is highest. It is
expecting a pick up in the residential property markets in 2026 as a result of reduced interest rates and also due
to economic growth in areas of New Zealand which are currently doing well.

Stuart Harrison commented: “Economic headwinds are continuing, both in New Zealand and around the world,
impacting on travel numbers and spend. Our focus is on ensuring that we have the best people and product in
place, for both the current market and as visitor numbers grow. This will drive our revenue, our profit and value
for our shareholders.

“We are engaging the market with more targeted marketing and clever management of our inventories and
revenue. Our strong relationships with our key clients and customers are the key to our success and we will be
looking to drive occupancies and revenues across our hotels as much as possible.”

He concluded: “As the global Millennium & Copthorne group celebrates its 30
th
anniversary of excellence in
operations, we are also looking to mark the occasion appropriately. We are already looking forward to the next
30 years and to creating new memories through exceptional hospitality”.

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 19 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

---

Name of issuer
Reporting Period
Previous Reporting Period
Currency
Amount (000s)
Revenue from continuing operations$79,296
Total Revenue$79,296
Net profit/(loss) from continuing operations $6,650
Total net profit/(loss) $6,650
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$3.36
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
12 August 2025
Not applicable
Not applicable
Not applicable
Current period
$3.46
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 2025
6 months to 30 June 2024
NZD
Percentage change
(7.06%)
(7.06%)
156.61%
156.61%
Interim Dividend

---

Page 1

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Income Statement
for the six months ended 30 June 2025





UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNoteto 30/06/25to 30/06/24
Revenue79,296 85,319
Cost of sales(36,634) (38,485)
Gross profit42,662 46,834
Administrative expenses(16,734) (14,649)
Other operating expenses(13,962) (12,374)
Operating profit before finance income11,966 19,811
Finance income1,049 2,837
Finance costs(2,423) (1,095)
Net finance (expense)/income(1,374) 1,742
Share of profit/(loss) of joint venture9753 (19)
Profit before income tax11,345 21,534
Income tax expense5(2,848) (5,948)
Income tax expense arising from change in building depreciation5- (25,760)
Profit/(loss) for the period8,497 (10,174)
Profit/(loss) for the period attributable to:
Equity holders of the parent6,650 (11,747)
Non-controlling interests1,847 1,573
Profit/(loss) for the period 8,497 (10,174)
Basic earnings per share (cents)44.20c-7.42c
Diluted earnings per share (cents)44.20c-7.42c
The attached notes form part of, and are to be read in conjunction with, these financial statem ents.

Page 2

UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNoteto 30/06/25to 30/06/24
Profit/(loss) for the period8,497 (10,174)
Items that are or may be reclassified to profit or loss
Foreign exchange translation movements(2,232) 841
- Tax (expense)/credit on foreign exchange(22) -
(2,254) 841
Total comprehensive income/(loss) for the period6,243 (9,333)
Total comprehensive income/(loss) for the period attributable to:
Equity holders of the parent4,396 (10,906)
Non-controlling interests1,847 1,573
Total comprehensive income/(loss) for the period6,243 (9,333)
DETAILS OF SPECIFIC RECEIPTS/OUTLAYS, REVENUE/EXPENSES
Classified under:
Administrative expenses
Audit fees(199) (195)
Other operating expenses
Depreciation of Property, Plant & Equipment(4,277) (3,581)
Depreciation of Investment Property(275) (275)
Depreciation of Right-Of-Use Assets (445) (447)
Leasing and rental expenses(368) (367)
Finance income
Interest income1,030 2,479
Foreign exchange gain19 358
Finance costs
Interest expense(706) (71)
Interest expense on lease liability(938) (951)
Foreign exchange loss(779) (73)
The attached notes form part of, and are to be read in conjunction with, these financial statements.
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Comprehensive Income
for the six months ended 30 June 2025

Page 3

UnauditedUnauditedUnauditedUnauditedUnauditedUnaudited
ShareExchangeRetainedTreasuryUnauditedNon-controllingTotal
DOLLARS IN THOUSANDSNoteCapitalReservesEarningsStockTotalInterestsEquity
Balance at 1 January 2024383,266 (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 equity :
Dividends paid to:
Equity holders of the parent6- - (4,747) - (4,747) - (4,747)
Non-controlling interests- - - - - (4,138) (4,138)
Movement of non-controlling interests without a change in control- - (242) - (242) 965 723
Balance at 30 June 2024383,266 (139) 148,920 (26) 532,021 112,936 644,957
Balance at 1 January 2025383,266 1,246 163,429 (26) 547,915 116,990 664,905
Movement in exchange translation reserve- (2,254) - - (2,254) - (2,254)
Income and expense recognised directly in equity- (2,254) - - (2,254) - (2,254)
Profit/(loss) for the period- - 6,650 - 6,650 1,847 8,497
Total comprehensive income for the period- (2,254) 6,650 - 4,396 1,847 6,243
Transactions with owners, recorded directly in equity :
Dividends paid to:
Equity holders of the parent6- - (4,747) - (4,747) - (4,747)
Non-controlling interests- - - - - (4,186) (4,186)
Movement of non-controlling interests without a change in control- - (150) - (150) 824 674
Balance at 30 June 2025383,266 (1,008) 165,182 (26) 547,414 115,475 662,889
The attached notes form part of, and are to be read in conjunction with, these financial statements.
Attibutable to Equity Holders of the Group
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Changes in Equity
for the six months ended 30 June 2025 (unaudited)

Page 4

UnauditedAudited
as atas at
DOLLARS IN THOUSANDSNote30/06/202531/12/2024
SHAREHOLDERS' EQUITY
Issued capital3383,266 383,266
Reserves164,174 164,675
Treasury stock3(26) (26)
Non-controlling interests115,475 116,990
Total equity662,889 664,905
Represented by:
NON CURRENT ASSETS
Property, plant and equipment322,694 283,430
Development properties 251,731 228,634
Investment properties36,409 36,301
Investment in associates2 2
Investment in joint venture46,193 46,554
Total non-current assets657,029 594,921
CURRENT ASSETS
Cash and cash equivalents16,098 39,726
Short term bank deposits2,650 1,571
Trade and other receivables12,615 23,497
Advance to related parties763,465 65,326
Inventories1,608 1,771
Income tax receivable1,810 -
Development properties32,002 35,454
Total current assets130,247 167,345
Total assets787,276 762,266
NON CURRENT LIABILITIES
Lease liabilities26,508 26,726
Provision for deferred taxation32,495 32,718
Interest-bearing loans and borrowings30,000 3,000
Total non-current liabilities89,003 62,444
CURRENT LIABILITIES
Trade and other payables33,118 30,524
Trade payables due to related parties71,828 1,767
Lease liabilities438 370
Income tax payable- 2,256
Total current liabilities35,384 34,917
Total liabilities124,387 97,361
Net assets662,889 664,905
The attached notes form part of, and are to be read in conjunction with, these financial statem ents.
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Financial Position
As at 30 June 2025

Page 5

UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNoteto 30/06/25to 30/06/24
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers90,145 89,888
Interest received518 2,269
90,663 92,157
Cash was applied to:
Payments to suppliers and employees(63,743) (62,039)
Purchase of development land2(14,811) (6,620)
Interest paid(651) (95)
Income tax paid(7,114) (8,137)
(86,319) (76,891)
Net cash inflow from operating activities4,344 15,266
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was (applied to)/provided from:
Purchase of property, plant and equipment(43,979) (7,680)
Purchase of investment property(383) (87)
Proceed from the sale of property, plant and equipment(15) -
(Investments in) / withdrawals from short term bank deposits(1,079) 37,293
Net cash (outflow)/inflow from investing activities(45,455) 29,526
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was (applied to)/provided from:
Drawdown/(Repayment) of borrowings27,000 (11,968)
Lease payments(1,112) (1,086)
Dividends paid to shareholders of Millennium & Copthorne
Hotels New Zealand Ltd6(4,747) (4,747)
Dividends paid to non-controlling interests (4,186) (4,138)
Net cash inflow/(outflow) from financing activities16,955 (21,939)
Net (decrease)/increase in cash and cash equivalents(24,156) 22,853
Add opening cash and cash equivalents39,726 11,256
Exchange rate adjustment528 1,278
Closing cash and cash equivalents16,098 35,387
The attached notes form part of, and are to be read in conjunction with, these financial statements.
Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Cash Flows
For the six months ended 30 June 2025

Page 6

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Condensed Interim Statement of Cash Flows
For the six months ended 30 June 2025





UnauditedUnaudited
6 months6 months
DOLLARS IN THOUSANDSNoteto 30/06/25to 30/06/24
Reconciliation of net profit/(loss) for the period to cash flows from operating activities
Profit/(loss) for the period8,497 (10,174)
Adjusted for non cash items:
Share of (profit)/loss Joint Venture9(753) 19
Loss on Sale of Fixed Assets19 9
Foreign Exchange (Gain)/ Loss775 (285)
Depreciation of Property, Plant & Equipment4,277 3,581
Depreciation of Right-Of-Use Assets 445 447
Depreciation of Investment Property275 275
Income tax expense 2,848 31,708
Adjustments for movements in working capital:
Decrease in receivables10,337 4,359
Decrease/(Increase) in inventories163 (49)
(Increase) in development properties(19,940) (4,787)
Increase/(Decrease) in payables4,211 (1,722)
Increase in related parties954 117
Cash generated from operations12,108 23,498
Interest paid(650) (95)
Income tax paid(7,114) (8,137)
Net cash inflow from operating activities4,34415,266
Reconciliation of movement of liabilities to cash flows arisingUnauditedUnaudited
from financing activities6 months6 months
to 30/06/25to 30/06/24
As at 1 January3,000 11,968
Proceeds from borrowings34,000 -
Repayment of borrowings(7,000) (11,968)
Financing cash flows27,000 (11,968)
As at 30 June30,000 -
The attached notes form part of, and are to be read in conjunction with, these financial statements.

Page 7

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2025 (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
2025 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 12
th
August 2025.

(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 2024.


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 2025 (unaudited)

2. Segment reporting - continued

(a) Operating Segments











Dollars in thousands
to 30/06/25
to 30/06/24
to 30/06/25
to 30/06/24
to 30/06/25
to 30/06/24
to 30/06/25
to 30/06/24
to 30/06/25
to 30/06/24
External revenue
64,071
55,901
12,279
15,310
1,529
1,305
1,417
12,803
79,296
85,319
Earnings before interest, depreciation,
amortisation & tax
Finance income
735
760
241
1,350
-
-
73
727
1,049
2,837
Finance expense
(1,680)
(1,088)
(6)
(6)
-
-
(737)
(1)
(2,423)
(1,095)
Depreciation and amortisation
(4,264)
(3,574)
(4)
(4)
(275)
(275)
(9)
(3)
(4,552)
(3,856)
Depreciation of Right-of-use assets
(425)
(422)
(15)
(20)
-
-
(5)
(5)
(445)
(447)
Share of profit/(loss) of joint venture
753
(19)
-
-
-
-
-
-
753
(19)
Profit before income tax
6,678
6,570
3,807
8,186
1,244
1,021
(384)
5,757
11,345
21,534
Income tax expense
(1,641)
(23,516)
(1,136)
(2,265)
(348)
(4,199)
278
(1,728)
(2,847)
(31,708)
Profit/(loss) after income tax
5,037
(16,946)
2,671
5,921
896
(3,178)
(106)
4,029
8,498
(10,174)
Property, plant and equipment
expenditure
43,978
7,727
-
-
-
-
1
-
43,979
7,727
Investment property expenditure
-
-
-
-
383
87
-
-
383
87
Residential land development
expenditure
-
-
11,737
11,626
-
-
-
-
11,737
11,626
Purchase of land for residential land
development
-
-
14,811
6,620
-
-
-
-
14,811
6,620
30/06/25
31/12/2024
30/06/25
31/12/2024
30/06/25
31/12/2024
30/06/25
31/12/2024
30/06/25
31/12/2024
Cash &

cash equivalents and short
term bank deposits
2,546
2,599
10,886
33,287
-
-
5,316
5,411
18,748
41,297
Investment in associates
-
-
2
2
-
-
-
-
2
2
Investment in joint venture
46,194
46,555
-
-
-
-
-
-
46,194
46,555
Other segment assets
395,873
364,960
276,601
259,032
36,409
36,301
13,449
14,119
722,332
674,412
Total assets
444,613
414,114
287,489
292,321
36,409
36,301
18,765
19,530
787,276
762,266
Segment liabilities
(84,681)
(58,256)
(5,806)
(2,362)
-
-
(1,405)
(1,769)
(91,892)
(62,387)
Tax liabilities
(28,025)
(27,720)
(4,413)
(2,229)
-
(4,379)
(57)
(646)
(32,495)
(34,974)
Total liabilities
(112,706)
(85,976)
(10,219)
(4,591)
-
(4,379)
(1,462)
(2,415)
(124,387)
(97,361)
As at
As at
As at
As at
As at
6 m onths
6 m onths
6 m onths
6 m onths
6 m onths
1,296
294
5,039
16,963
24,114
Hotel Operations
Residential Land
Development
Investment Property
Residential Property
Development
Group
11,559
10,913
3,591
6,866
1,519

Page 9

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2025 (unaudited)

2. Segment reporting - continued










(b) Geographic Segments
Dollars in thousands
to 30/06/25 to 30/06/24 to 30/06/25 to 30/06/24 to 30/06/25 to 30/06/24
External revenue77,87972,5161,41712,80379,29685,319
Earnings before interest, depreciation,
amortisation & tax
Finance income4312,1106187271,0492,837
Finance expense(1,686)(1,094)(737)(1)(2,423)(1,095)
Depreciation and amortisation(4,543)(3,853)(9)(3)(4,552)(3,856)
Depreciation of Right-of-use assets(440)(442)(5)(5)(445)(447)
Share of profit/(loss) of joint venture--753(19)753(19)
Profit before income tax11,53015,805(185)5,72911,34521,534
Income tax expense(3,128)(29,983)281(1,725)(2,847)(31,708)
Profit/(loss) after income tax8,402(14,178)964,0048,498(10,174)
Property, plant and equipment expenditure 43,9787,7271-43,9797,727
Investment property expenditure38387--38387
Residential land development expenditure11,73711,626--11,73711,626
Purchase of land for residential land
development
14,8116,620--14,8116,620
30/06/2531/12/2024 30/06/2531/12/2024 30/06/2531/12/2024
Cash & cash equivalents and short term
bank deposits
13,43235,8865,3165,41118,74841,297
Investment in associates22--22
Investment in joint venture--46,19446,55546,19446,555
Investment property36,40936,301--36,40936,301
Other segment assets609,666560,24076,25777,871685,923638,111
Total assets 659,509632,429127,767129,837787,276762,266
Segment liabilities(90,487)(29,970)(1,405)(32,417)(91,892)(62,387)
Tax liabilities(32,438)(34,328)(57)(646)(32,495)(34,974)
Total liabilities(122,925)(64,298)(1,462)(33,063)(124,387)(97,361)
As atAs atAs at
New ZealandAustraliaGroup
17,76819,084(805)5,03016,96324,114
6 m onths6 m onths6 m onths

Page 10

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2025 (unaudited)


3. Share capital


Ordinary shares Redeemable preference shares
Shares $ 000s Shares $ 000s
Total shares issued – fully paid
Balance at 30 June 2024 105,578,290 350,048 52,739,543 33,218
Balance at 30 June 2025 105,578,290 350,048 52,739,543 33,218

Ordinary shares repurchased and
held as treasury stock



Balance at 30 June 2024 (99,547) (26) - -
Balance at 30 June 2025 (99,547) (26) - -

Shares issued – fully paid
Balance at 30 June 2024 105,478,743 350,022 52,739,543 33,218
Balance at 30 June 2025 105,478,743 350,022 52,739,543 33,218



At 30 June 2025, the authorised share capital consisted of 105,578,290 ordinary shares (2024: 105,578,290 ordinary shares)
with no par value and 52,739,543 redeemable preference shares (2024: 52,739,543) with no par value.


4. Earnings per share

The basic earnings per share of 4.20 cents (30 June 2024: -7.42 cents) is based on the profit/(loss) attributable to ordinary
shareholders of $6.6 million (30 June 2024: -$11.7 million) and weighted average number of ordinary shares and redeemable
preference shares outstanding during the period ended 30 June 2025 of 158,218,286 (30 June 2024: 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 4.20 cents (30 June 2024: -7.42 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
30/06/25
Six months to
30/06/24
Current tax expense
Current period 3,016 6,132
Adjustments for prior period 46 (27)
3,062 6,106

Deferred tax expense

Origination and reversal of temporary difference (214) (158)
Changes in treatment of building depreciation - 25,760
(214) 25,602
Total income tax expense in the income statement 2,848 31,708

Page 11

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2025 (unaudited)

5. Income tax expense - continued


Reconciliation of tax expense
Group
Dollars In Thousands
Six months to
30/06/25
Six months to
30/06/24
Profit before income tax 11,345 21,534
Income tax at the company tax rate of 28% (2024: 28%) 3,177 6,030
Adjusted for:
Tax rate difference (if different from 28% above) (3) 114
Non-deductible expenses 24 1
Tax exempt income (396) (170)
Changes in treatment of building depreciation - 25,760
Under/(Over) - provided in prior periods 46 (27)
Total income tax expense
2,848 31,708
Effective tax rate (25%) (147%)


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 2024-25, 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
30/06/25
Six months to
30/06/24

Ordinary dividend: 3.0 cents per qualifying share (2024: 3.0 cents) 4,747 4,747
Supplementary dividend: 0.529412 cents per qualifying share (2024:
0.529412 cents)

29

94
4,776 4,841

Page 12

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2025 (unaudited)


7. Related party transactions

Millennium & Copthorne Hotels New Zealand Limited is a 86.39% (2024: 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
30/06/25
6 months to
30/06/24
Trade payables and receivables due to related parties
Millennium & Copthorne Hotels Limited Recharge of expenses (1,547) (1,637)
Millennium & Copthorne International Recharge of expenses (281) -
Marquee Hotel Holdings Pty Ltd Interest bearing advance 19,092 19,265
Marquee Hotel Holdings Pty Ltd Interest free advance 43,146 43,539
Marquee Hotel Holdings Pty Ltd Interest receivable 571 661
CDL Hotels Holdings New Zealand Limited Recharge of expenses - 30
CDLH (BVI) One Limited Recharge of expenses 756 (938)
CDLH (BVI) One Limited Rent payment (100) (229)
61,637 60,691

No debts with related parties were written off or forgiven during the period. Interest at 5.45% was charged on interest bearing
advance during 2025. 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 2025, the Group had the following transactions with related parties:
Group
Dollars In Thousands Nature of balance 6 months to
30/06/25
6 months to
30/06/24
Marquee Hotel Holdings Pty Ltd Interest receivable 545 613
CDLH (BVI) One Limited Management and franchise income 452 478
M&C Reservation Services Ltd (UK) Management and marketing support (249) (590)
CDL Hotels Holdings New Zealand Limited Recharge of takeover offer expenses
and accounting support fee received 2,141 30
Millennium & Copthorne International Limited Recharge of expenses (281) (126)



8. Property, plant & equipment

The acquisition of the Mayfair Hotel Christchurch was completed on 22 January 2025. This was a freehold acquisition of the
existing hotel located at 155 Victoria Street, Christchurch.

The company acquired the following assets for a total consideration of $31.9m.

i. Freehold land and buildings from Centro Roydvale Limited
ii. Furniture, fittings & plant and business as a going concern of the Mayfair Hotel from Mayfair Luxury Hotels
Limited

The acquisition was accounted for as an acquisition of assets.

Page 13

Millennium & Copthorne Hotels New Zealand Limited and Subsidiaries
Notes to the Condensed Interim Financial Statements
for the six months ended 30 June 2025 (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 profit in its joint venture for the period ended 30 June 2025 was $753,519 (2024: -$19,016).




Principal Activity
Principal
Place of
Business
Group
interest%
2025
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 2025 (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
30/06/25
As at
31/12/24
Non-current assets 197,857 203,903
Current assets 31,892 26,112
Non-current liabilities (1,987) (1,382)
Current liabilities (135,377) (135,985)
Net assets (100%) 92,385 93,108
Group’s share (50%) 46,193 46,554


The current assets balance of the joint venture includes a cash and cash equivalents balance of $29.34m (2024:$20.21m).
The current liabilities balance of the joint venture includes balances owing to shareholders of $125.01m (2024:$126.3m).

Group Group
6 months to
30/06/25
6 months to
30/06/24
Revenue 25,250 23,261
Operating profit 2,732 854
Interest income 511 317
Interest expense (1,090) (1,225)
Income tax (expense)/credit (646) 16
Profit/(loss) for the period (100%) 1,507 (38)
Group’s share of profit/(loss) (50%) 753 (19)


Movements in the carrying value of joint venture:
Group Group
As at
30/06/25
As at
30/06/24
Balance at 1 January 46,554 43,943
Share of profit/(loss) for the period 753 (19)
Foreign exchange adjustments (1,114) 414
Balance at 30 June 46,193 44,338