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1 24 th August, 2015 ASX Market Announcements Australian Stock Exchange Exchange Centre Level 6 20 Bridge Street Sydney NSW 2000 Australia Dear Sir/Madam RE: SKYCITY ENTERTAINMENT GROUP LIMITED (SKC) Please find attached the Bond Offer Roadshow Presentation for the just announced Seven Year Bond offer. Yours faithfully Peter Treacy Company Secretary SKYCITY Entertainment Group Limited Federal House 86 Federal Street PO Box 6443 Wellesley Street Auckland New Zealand Telephone +64 (0) Facsimile +64 (0)

2 Offer of Fixed Rate Seven Year Bonds Group Limited August 2015 SKYCITY Entertainment Arranger, Organising Participant & Joint Lead Manager Joint Lead Manager Joint Lead Manager Joint Lead Manager

3 Important Information A Product Disclosure Statement ( PDS ) dated 24 August 2015 has been prepared by SKYCITY Entertainment Group Limited ( Issuer ) in respect of unsubordinated, unsecured, redeemable, fixed rate, seven year bonds ( Bonds ) and lodged with the Registrar of Financial Service Providers in accordance with section 48 of the Financial Markets Conduct Act 2013 ( FMC Act ). You should read this document ( Presentation ) in conjunction with the PDS. Capitalised terms used in this Presentation and not otherwise defined have the meanings given to them in the PDS. Copies of the PDS can obtained free of charge by contacting your usual authorised financial adviser or by visiting The information in this Presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation by the Issuer, The New Zealand Guardian Trust Company Limited ( Supervisor ), Westpac Banking Corporation (acting through its New Zealand branch) ( Arranger and Organising Participant ), ANZ Bank New Zealand Limited, Deutsche Craigs Limited or First NZ Capital Securities Limited (together with the Arranger and Organising Participant, the Joint Lead Managers ), or any of the directors, officers, employees or agents of the Issuer, the Supervisor, the Arranger and Organising Participant or the Joint Lead Managers to subscribe for, or purchase, any of the Bonds. Nothing in this Presentation constitutes legal, financial, tax or other advice. The information in this Presentation does not take into account the particular investment objectives, financial situation, taxation position or needs of any person. You should make your own assessment of an investment in the Issuer based on the PDS and should not rely on this Presentation. No applications will be accepted or money received unless the applicant has received the PDS. In all cases, you should conduct your own research on the Issuer and analysis of any offer, the financial condition, assets and liabilities, financial position and performance, profits and losses, prospects and business affairs of the Issuer, and the contents of this Presentation. Except as required by law, none of the Issuer, the Supervisor, the Arranger and Organising Participant, the Joint Lead Managers, nor any of their respective advisers (including commercial advisers), directors, officers, employees or agents accept any responsibility or liability for; make any representation, warranty or undertaking, express or implied, as to the fairness, accuracy or completeness of; and to the maximum extent permitted by law shall have no liability whatsoever (including, without limitation, arising from fault or negligence) for any loss arising from, this Presentation or any information contained, referred to or reflected in it or supplied or communicated orally or in writing to you or any other person. Some of the information set out in this Presentation relates to future matters, that are subject to a number of risks and uncertainties (many of which are beyond the control of the Issuer), which may cause the actual results, performance or achievements of the Issuer to be materially different from the future results set out in the Presentation. The inclusion of forward-looking information should not be regarded as a representation or warranty by the Issuer, the directors of the Issuer or any other person that those forward-looking statements will be achieved or that the assumptions underlying any forward-looking statements will in fact be correct. The Issuer intends to offer the Bonds to the public in New Zealand. No action has been or will be taken by the Issuer which would permit an offer of Bonds, or possession or distribution of any offering material, in any country or jurisdiction where action for that purpose is required (other than New Zealand). Application has been made to NZX Limited ( NZX ) for permission to quote the Bonds on the NZX Debt Market and all the requirements of NZX relating thereto that can be complied with on or before the date of this Presentation have been duly complied with. However, the Bonds have not yet been approved for trading and NZX accepts no responsibility for any statement in this Presentation. NZX is a licensed market operator and the NZX Debt Market is a licensed market, each regulated under the FMC Act. 2

4 Agenda Introduction Overview of SKYCITY Group Financial Information Credit Strengths and Key Risks Bond Offer Information 3

5 Introduction Offer by SKYCITY of unsubordinated, unsecured, redeemable, fixed rate, seven year bonds due 28 September 2022 First offer of SKYCITY bonds into New Zealand market since issue of SKYCITY capital notes in 2000 Seeking to raise up to $100 million (plus up to $25 million oversubscriptions) Offer proceeds used to reduce Bank Debt 4

6 Overview of SKYCITY Group

7 SKYCITY Group Owner/operator of casino and other entertainment facilities in New Zealand and Australia Key activities casinos, restaurants and bars, hotels, convention facilities and out-catering services Two major growth projects NZICC and Adelaide transformation Employs approximately 5,900 people Listed on NZX and ASX with current market cap of approximately $2.3 billion Investment grade corporate rating of BBB- (stable outlook) from Standard & Poor s 6

8 New Zealand Properties Auckland Hamilton Queenstown/Wharf Business Activities Gaming Hotels Restaurants & bars Convention facilities Out-catering Sky Tower Gaming Restaurants & bars Convention facilities Bowling alley Gaming Restaurant & bars Employees (FY15 average) Normalised* Revenue (FY15) Normalised* EBITDA (FY15) 3, $603 million $51 million $19 million $248 million $20 million $3 million Electronic Gaming Machines and Tables (at 30 June 2015) 1,647 EGMs 110 Tables 339 EGMs 23 Tables SKYCITY Queenstown: 86 EGMs 12 Tables SKYCITY Wharf: 70 EGMs 6 Tables Casino License Term Expires 2021 (extended to 2048 under NZICC Agreement if conditions satisfied) Expires 2027 Expires 2025 (Queenstown) and 2024 (Wharf) * Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense items. Normalised revenue is grossed up for gaming GST for comparison purposes to other casinos. 7

9 Australian Properties Business Activities Adelaide Gaming Restaurants & bars Darwin Gaming Hotels Restaurants & bars Employees (FY15 average) 1, Normalised* Revenue (FY15) A$174 million A$137 million Normalised* EBITDA (FY15) A$27 million A$39 million Gaming Machines and Tables (at 30 June 2015) 914 EGMs 79 Tables 634 EGMs 34 Tables Casino License Term Expires 2085 Exclusivity in South Australia until 2035 Exclusivity in northern half of Northern Territory until 2031 * Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense items. Normalised revenue is grossed up for gaming GST for comparison purposes to other casinos. 8

10 Revenue Sources FY15 Normalised* Revenue by Business Segment (including gaming GST ) FY15 Normalised* Revenue by Property (including gaming GST) 79% 21% Non-Gaming Gaming 19% 15% 5% 2% Auckland 59% Adelaide Darwin Hamilton Queenstown & Wharf * Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense items. Normalised revenue is grossed up for gaming GST for comparison purposes to other casinos. 9

11 NZICC Project SKYCITY committed to designing and building the NZICC In return, regulatory concessions provided for SKYCITY Auckland * : Extension of casino venue license to 2048 Additional EGMs, tables and ATGs TITO and cashless gaming Expansion of casino venue description Compensation if increase in casino duty within seven years of signing building works contract Further plans to expand NZICC car park and develop five-star 300-room hotel and laneway Resource consent proceeding on non-notified basis SKYCITY expects to begin construction by December 2015 * Concessions become effective once all conditions of the NZICC Agreement are satisfied including signing of a building works contract. 10

12 Adelaide Casino Transformation Two-phase transformation of Adelaide Casino New Approved Licensing Agreement and Casino Duty Agreement effective from February 2014: 20 year extension of exclusivity to 2035 Additional EGMs, tables and ATGs TITO and cashless gaming Lower tax rates for VIP gaming A$50 million spent on first phase, involving major refurbishment and reconfiguration of existing property completed in January 2015 Evaluating options for second phase: Expanded casino and six-star hotel No firm timetable but required to be completed by June 2019 (unless extended) Total cost of second phase expected to be around A$350 million Also agreed with Walker Corporation the key terms for an exclusive lease of 750 of 1,560 total car park spaces in proposed Festival Plaza development 11

13 Board of Directors Chris Moller (Chairman) Bruce Carter (Deputy Chairman) Nigel Morrison (Managing Director) Peter Cullinane Richard Didsbury Brent Harman Sue Suckling Richard Tsiang 12

14 Financial Information

15 Historical Financial Performance (NZ$ million) FY14 FY15 Revenue EBITDA NPAT Normalised* Revenue ,007.7 Normalised* EBITDA Normalised* NPAT Total Assets 1, ,925.6 Total Debt Total Liabilities 1, ,108.6 Total Equity Total Debt/Normalised* EBITDA 2.3x 2.3x Normalised* EBITDA/Normalised* Interest Expense 6.5x 8.0x * Normalised results adjust the VIP business win rate to a theoretical win rate of 1.35% and adjust for certain one-off revenue and expense items. Normalised revenue is grossed up for gaming GST for comparison purposes to other casinos. 14

16 Debt Funding Sources Total committed debt facilities as at 30 June 2015 of $918 million, of which $217 million was undrawn Source Ranking Amount Outstanding (NZ$ million) (as at 30 June 2015) Bank Debt Facilities Senior 384 USPP Notes Senior 317 Deferred Expenses (2) Total Debt 699 No debt maturities until March 2017, when US$27 million of USPP notes mature Offer of Bonds will diversify debt funding sources and increase debt funding headroom 15

17 Debt Maturity Profile Debt maturity profile at 30 June 2015 with pro forma adjustment for this Offer (assumed to be $100 million) Proforma Debt Maturity Profile - 30 June 2015 (NZ $ million) USPP Proposed Senior Bond Bank - Drawn Bank - Undrawn $109 $88 $120 $172 $112 $40 $110 $147 $100 $0 $21 FY16 FY17 FY18 FY19 FY20 FY21 FY22 NZD/USD NZD/AUD

18 Credit Strengths and Key Risks

19 Credit Strengths Significant gaming and entertainment business with diversified revenue sources in New Zealand and Australia Sole casino operator in all cities that SKYCITY Group operates in All casino licenses expire after maturity of Bonds (assuming Auckland casino venue license is extended under NZICC Agreement) Significant cash generation from business activities Investment grade corporate rating of BBB- (stable outlook) from Standard & Poor s Diversified debt funding sources (following this offer) with no maturities until FY17 Experienced Board of Directors 18

20 Key Risks Highly regulated industry Earning concentration in Auckland Economic conditions affecting discretionary income Renewal or extension of Auckland casino license Development project risks 19

21 Bond Offer Information

22 Offer Structure PDS lodged with Register of Financial Service Providers on 24 August 2015 Open to institutional investors and members of the public resident in New Zealand Up to $100 million (plus up to $25 million of over-subscriptions) All Bonds may be reserved under Firm Allocations No public pool 21

23 Key Terms of Bonds Issuer Description of Bonds Issue Price Maturity Date SKYCITY Entertainment Group Limited ( SKYCITY ) Unsubordinated, unsecured, redeemable, fixed rate debt obligations of SKYCITY $1.00 per Bond Seven year term maturing on 28 September 2022 (unless redeemed earlier) Interest Rate Fixed rate of interest to be set following the book-build on 2 September 2015 Interest Payments Early Bird Interest Early Redemption Quotation* Quarterly in arrears in equal amounts on 28 March, 28 June, 28 September and 28 December each year First Interest Payment Date will be Tuesday, 29 December 2015 as Monday, 28 December 2015 is not a Business Day Early bird interest (calculated at the Interest Rate) will be paid on application money paid in respect of accepted applications, within seven Business Dates of the Issue Date. SKYCITY may redeem Bonds on any Interest Payment Date from the third anniversary of the Issue Date in accordance with the early redemption calculation Expected to be quoted on NZX Debt Market. NZX ticker code SKC040 has been reserved for the Bonds * Application has been made to NZX for permission to quote the Bonds on the NZX Debt Market and all the requirements of NZX relating thereto that can be complied with on or before the date of this presentation have been duly complied with. However, the Bonds have not yet been approved for trading and NZX accepts no responsibility for any statement in this document. NZX is a licensed market operator, and the NZX Debt Market is a licensed market, each regulated under the FMC Act. 22

24 Protections for Bondholders Ranking Bonds rank equally on liquidation with all other unsecured unsubordinated obligations of SKYCITY Bonds rank ahead of Equity Guarantee Bonds guaranteed by all current members of SKYCITY Group Financial Covenants Restrictions on new security interests and prior ranking debt Debt/EBITDA ratio* equivalent to that for Bank Debt and USPP Notes (currently must not exceed 3.5x) EBITDA/Financing Costs ratio* must exceed 3.0x Debt/(Debt plus Equity) ratio* must not exceed 75% Events of Default Non-payment of interest or principal Breach of financial covenants Cross-default (with other debt facilities) Insolvency * Refer to the PDS and the Trust Deed for definitions of these ratios 23

25 Offer Process Book-build Primary Market Participants, institutional investors and other approved financial intermediaries are invited to participate in the book-build process Indicative coupon of 4.65% % Firm Allocations to be determined by SKYCITY following the bookbuild conducted by JLMs No public pool Minimum Application Minimum application amount of $5,000 and in multiples of $1,000 thereafter Fees Firm Allocation fee of 0.50% to book-build participants Brokerage of 0.50% (on stamped applications) 24

26 Important Dates PDS lodged Monday, 24 August 2015 Roadshow presentations Tuesday, 25 August 2015 and Wednesday, 26 August 2015 Book-build bids due 12.00pm on Wednesday, 2 September 2015 Rate Set Date and Firm Allocations notified Wednesday, 2 September 2015 Offer opens Thursday, 3 September 2015 Offer closes Tuesday, 22 September 2015 Issue Date Monday, 28 September 2015 Initial quotation and trading on NZX Debt Market Tuesday, 29 September 2015 First Interest Payment Date Tuesday, 29 December 2015 SKYCITY reserves the right to extend the Offer Closing Date and to vary any of the other dates set out in the timetable. 25