SKYCITY ENTERTAINMENT GROUP LIMITED. FY07 Result Year Ended 30 June 2007

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1 SKYCITY ENTERTAINMENT GROUP LIMITED FY07 Result Year Ended 30 June 2007

2 Contents FY07 Financial Result - Overview FY08 Guidance Cost Reduction Programme Asset Reviews Customer Welfare CEO and Director Recruitment FY07 Financial Reviews Grou International Rebate Business Auckland Adelaide Darwin Hamilton Other New Zealand Oerations Cinemas Funding and Caital Management Business Direction Summary Financial Results

3 FY07 Financial Result Reorted and Underlying NPAT and FY08 Guidance

4 FY07 Grou Result Revenue +7% to $816.1m Organic growth in most business units, offset by reduced gaming revenue in Auckland EBITDA -1.3% to $297.2m Comarison imacted negatively by significant international rebate business wins in FY06 not reeated in FY07 NPAT May guidance of $98m achieved Reorted net rofit down 18% from FY06 Underlying net rofit u 7% from $83.3m in FY06 to $89.3m in FY07 Distribution 12 cents er share Distribution olicy maintained at 90% of reorted tax-aid rofit

5 FY07 Grou Result Revenue u 6.7%, EBITDA down 1.3% Net rofit after tax at exectation, but 18% down on FY06 on a reorted basis. Underlying net rofit u 7%. Grou Result FY07 $m FY06 $m $m Movement % Movement Revenue $816.1 $ $ % EBITDA $297.2 $ $ % EBIT $224.9 $ $ % Reorted Net Profit after tax $98.4 $ $ % Underlying Net Profit after tax (excluding Cinemas) $89.3 $83.3 +$ % EBITDA = Earnings before interest, tax, dereciation and amortisation. EBIT = Earnings before interest and tax.

6 Underlying Net Profit A number of non-recurring gains and losses in FY07 and FY06 mask the underlying erformance of the business and imact on the comarison of FY07 against FY06 FY07 underlying net rofit (excluding Cinemas) at $89.3m u 7.2% over FY06 ($83.3m) with FY07 underlying EBITDA (excluding Cinemas) u 3%, from $273m in FY06 to $285m in FY07 The adjustments shown in the table below are summarised on the following age. FY07 $m FY06 $m FY05 $m Reorted Net Profit after tax $98.4 $120.1 $106.4 Tax $33.1 $32.6 $38.1 Minority interest -$0.4 $1.1 Reorted Net Profit before tax Adjustments $131.5 $152.3 $ $6.6 -$35.8 -$9.9 Adjusted Net Profit before tax $124.9 $116.5 $135.7 Tax at normalised rate (28.5%) $35.6 $33.2 $38.7 Underlying Net Profit after tax $89.3 $83.3 $97.0 While FY07 was disaointing against FY05, the underlying net rofit assessment shows that FY07 is not the continuation of an adverse trend and highlights some unusual circumstances which increased the reorted FY06 net rofit result.

7 Adjustments to Reorted NPAT The adjustments to reorted net rofit (which include an elimination of Cinemas, elimination of funding restructuring gains and international rebate business at theoretical) would reduce reorted NPBT by $6.6m in FY07, by $35.8m in FY06 and by $9.9m in FY05 The adjustments are made to facilitate comarability across reorting eriods and to identify the underlying earnings base of the business Excetional wins in international rebate business and funding structure gains in FY06 did not aly in FY05 and were not reeated in FY07. FY07 $m Deduct gain on sale of roerty -$4.2 SKYCITY Metro oerating trust account: final entries +$1.3 Add back restructuring costs +$4.3 Transfer from foreign currency translation reserve -$3.3 FY06 $m Deduct interest rate swa gains -$4.1 FY05 $m Adjust international rebate business to theoretical +$2.4 -$13.8 +$3.7 Deduct IAS revaluation gain -$1.5 Deduct Cinemas one-off revenue gain -$1.5 EBITDA adjustments (excluding Cinemas) +$0.5 -$17.9 +$0.7 Exclude Cinemas EBIT -$7.1 -$7.6 -$9.9 Eliminate Darwin amortisation +$3.1 Deduct funding transaction gains -$10.3 -$3.8 Total adjustments (retax) -$6.6 -$35.8 -$9.9

8 FY07 Result EBITDA Summary At EBITDA the Grou result is down marginally by 1.3%. Hamilton, Darwin, Other New Zealand Oerations and reduced Grou/Cororate exenses contributed to a gain on FY06 but offset by Auckland, Adelaide and international rebate business which were down on rior year Cinemas shows a reorted increase in EBITDA. However, given that FY06 was 50% ownershi and FY07 was 100%, the underlying EBITDA erformance in FY07 was down significantly on FY06 The following table sets out underlying oerational erformance by business unit. EBITDA FY07 $m FY06 $m Variance to FY06 $m % Auckland $208.6 $ $ % Hamilton Adelaide $19.5 $17.4 +$ % A$20.9 A$23.1 -A$ % Darwin A$35.2 A$33.0 +A$ % Other New Zealand Oerations $9.8 $4.5 +$ % Grou/Cororate Exenses ($24.7) ($26.0) -$ % International rebate business $6.6 $17.6 -$ % Sub-Total: Gaming/Entertainment Oerations $284.2 $ $ % Cinemas $13.0 $9.9 +$3.1 n/a Grou EBITDA $297.2 $ $ %

9 Annual Results: FY01-FY07 Profits and Distributions Net Profit After Tax : $98.4m Interim Distribution 4/07 9.0cs Final Distribution 10/ cs Total Distribution FY cs NZ$m cs $120.1m 26.5c* 26.0c 100 $107.2m $100.2m $106.4m $98.4m c 24.0c 21.0c c* $68.3m 15.8c 60 $57.2m FY01 FY02 FY03 FY04 FY05 FY06 FY07 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 * Dividends were aid at 90% of net rofit before non-recurring items in FY02 and FY04 to reflect underlying earnings rior to SKYCITY Leisure (FY02) and Canbet (FY04) write-offs.

10 Distribution to Shareholders Final FY07 12 cents er share (14cs FY06) Entitlement/record date 10 Setember Payment date 5 October Total distribution FY07 21cs comared to 26cs in FY06 and 24cs in FY05 Distribution continues at 90% x Net Profit after adding back Adelaide casino licence amortisation Distribution by way of non-taxable bonus shares with fully-imuted cash buyback alternative continued The take-u rate of the rofit distribution lan has significantly exceeded exectations, with a significant number of new shares having been issued under the PDP since its incetion in February last year. The board now feels it is unnecessary for the discount of 2.5% (in calculating the strike rice) to be continued for the FY07 final distribution and thereafter until further notice Strike rice for the bonus share issue for the FY07 distribution will be the weighted average SKC rice on the NZSX during the 5 day eriod Setember Advice of the number of bonus shares to be issued in resect of the FY07 final distribution to shareholders on 20 Setember Shareholder elections (to elect the cash/buyback otion) are due to the share registry (Comutershare) by 3 October.

11 FY08 Guidance

12 Profit Guidance FY08 Profit guidance for FY08 is for growth in reorted NPAT of 10%-12%, based on the current business model and current exectations as to earnings erformance. The comany s FY08 guidance incororates the following assumtions: gradual recovery of Auckland gaming revenues as main gaming floor renovation comonents are rogressively comleted smoking ban imact in Adelaide (from 1/11/07) assumed will be similar to that exerienced in New Zealand in calendar 2005 and into 2006 achievement of savings from the cost reduction rogramme average cost of debt funding at 7.8% tax rate of 25.5% Assuming no disosal of business assets (to be discussed later), major caex items in the FY08-FY10 eriod will include comletion of the Auckland gaming floor refurbishment, the Darwin exansion roject, continuation of the Adelaide refurbishment (and carark) roject, and cinema fit-outs.

13 Cost Reduction Programme

14 Cost Reduction Initiatives In May 2007 the comany announced a cost reduction rogramme targeted to achieve $33m in FY07-FY09 Cost reductions totalling $33.7m are identified in the following areas: $15.3m in labour costs from imroved rostering and utilisation of labour, reduction in absenteeism, combining job resonsibilities, restructuring of Grou/Cororate functions $12.8m in rocurement initiatives from strategic sourcing including contracts at lower costs, management of waste and shrinkage, tighter control over consumables $5.6m in miscellaneous exenditures from reduced sonsorshis, rofessional and consultancy fees, secific Auckland cost reduction initiatives not referred to above and tighter cost control across the business The key focus has been on back of house oerations, to reduce costs without imacting customer exerience.

15 Net Cost Performance The $33.7m of cost savings identified on the revious age are offset by underlying cost growth due to wage increases, inflation, and volume/activityrelated costs The timing of the cost reductions is summarised below. FY07 $m FY08 $m Total FY07/FY08 $m Volume-related, cost inflation, bonus movements and fx imact $33.3 $36.7 $70.0 Cost savings $11.6 $22.1 $33.7 Net cost increase $21.7 $14.6 $36.3 Identified cost savings have been incororated into management budgets and are searately reorted in internal reorting to ensure cost targets will be achieved Reviews are underway to examine costs from a bottom-u analysis to ensure synergies in back office and the oortunity for shared services are catured and to further rioritise discretionary sending However, the comany will continue to ensure there are no comromises in customer service, safety, regulatory comliance and intent, and in the overall customer exerience.

16 Asset Reviews - Adelaide Casino -Cinemas - Christchurch Casino

17 Asset Review: Adelaide Casino A strategic develoment lan for the SKYCITY Adelaide roerty has been comleted, incororating carark develoment and comletion of the roerty redeveloment rogramme Valuation of the business has been verified by external financial advisors and shows how this roerty can deliver shareholder value Enquiries have been received from a range of interested arties. In order to comlete the strategic review seven arties were invited to indicate otential value Based on these indicative values, the board considers it owes shareholders the oortunity to realise this value If the interested arties wish to roceed to binding offers they will be invited to do so This is not an undertaking that a sale will be concluded and it will only roceed should offers significantly exceed the comany s own valuation.

18 Asset Review: SKYCITY Cinemas FY07 was a disaointing trading year for SKYCITY Cinemas Whilst it is anticiated that FY08 will deliver stronger results, which are starting to come through, the Cinemas business has not delivered its financial and strategic objectives as was originally anticiated The comany has develoed a strategic lan for the business which validates the carrying cost of the entity and indeendent advisors have reviewed the business lan and the valuation However, the board considers that shareholder interests may be better served if industry secialists ascribe a higher value than under SKYCITY oeration The comany is therefore announcing today that it will enter into a rocess to test the sale value of its cinema assets The board emhasises however that this will not involve a sale at any rice and that offers will need to exceed the comany s internal view of value Should a satisfactory sale value not be reached, the comany will imlement its own lans and is confident that these can add to the value of SKYCITY.

19 Asset Review: Christchurch Casino Core business for SKYCITY: gaming/entertainment in New Zealand or Australia Christchurch Casino is regarded as a strategic investment in the New Zealand gaming/entertainment sector and the board sees no comelling reason to exit its existing osition There is a good relationshi between the two main shareholders (SKYCITY and Skyline at 40.5% each) and we are looking forward to our ongoing involvement Christchurch Casino is currently generating a satisfactory return, desite an extended eriod without a ermanent CEO aointment in lace We see uside otential in our Christchurch investment from oerational and roerty develoment oortunities New CEO (Brett Anderson, a New Zealander ex Macau) commenced 30 July and is settling in well.

20 Customer Welfare Harm Minimisation and Regulatory Initiatives

21 Business Policy and Harm Minimisation SKYCITY does not see a tension between its obligations to create value for shareholders and to rovide a safe and enjoyable entertainment environment The longer-term interests of customers, staff and shareholders are best served by ensuring olicies to combat undesirable and illegal behaviour are effective within all asects of the comany s oerations If there is a tension, it occurs in the sace between observation and action at the ersonal level. When our eole observe behaviours that suggest an intervention, we do our best to get it right. Sometimes we intervene and offend, sometimes we may hold back when we should act Errors of judgement will inevitably occur from time to time and our challenge and oortunity is to ensure these continue to be at a minimal level We reaffirm our commitment to harm minimisation and host resonsibility olicies designed to rotect our customers and, at the same time, rovide them with an enjoyable entertainment exerience.

22 Harm Minimisation and Regulatory Initiatives In recent weeks there has been considerable media coverage in New Zealand alleging criminal activities and undesirable behaviour in and around casinos SKYCITY has a range of olicies and rocedures to deal with illegal or undesirable behaviour and takes its host resonsibility and regulatory comliance obligations seriously and has them under continuous review SKYCITY has undertaken or is undertaking numerous initiatives to enhance its erformance effectiveness in the imortant area of customer welfare, including as below: an external review of internal ractices, rocedures, actions and attitudes imlementation of an incident tracking system that will imrove co-ordination, monitoring and information sharing targeting of undesirable behaviour in or around the casino roerties increased secialist resources recruited and increased management focus (incororated into ersonal erformance measures, etc) on customer welfare and undesirable activity by customers or staff enhanced training in host resonsibility for staff seeking an imroved dialogue with stakeholder grous (roblem gambling service roviders, others) to imrove information-sharing lanning a working arty with government agencies (olice, officials, others) to discuss co-oeration and collaboration At a recent Gambling Commission hearing, the comany s Host Resonsibility Programme was commended as being at international standard.

23 CEO and Director Recruitment

24 CEO and Director Recruitment CEO Recruitment A short list of candidates is close to finalisation An aointment is exected by the end of October But will be subject to timing of regulatory arovals (in three jurisdictions) Director Recruitment The board exects to make an offer to two candidates by the end of August Announcement of aointments will be subject to regulatory rocesses.

25 FY07 Financial Reviews by Business Unit

26 Additional Disclosures in FY07 Result Presentation This result resentation includes a high level of detailed disclosure which is intended to assist the investment community in understanding and interreting the comany s historical (and rojected) erformance. The main additional information in this year s result resentation includes the following: In addition to reorted NPAT, underlying earnings erformance (NPAT) for the ast three years FY05-FY07 (ages 5 and 6) Details of the comany s international rebate business for the ast three years FY05-FY07 (age 16). International rebate business will be reorted as a searate business unit in FY08 Given the rosect that the Cinemas business will be divested, the Cinemas result is shown searately in a number of the charts to facilitate comarisons of the erformance of the Grou s core gaming/entertainment oerations Searation of Grou and cororate exenses from within the SKYCITY Auckland EBIT statement Secific rofit guidance for FY08 (age 11).

27 Grou Result: FY07

28 FY07 Result Grou Summary EBITDA FY07 $m FY06 $m Variance to FY06 $m % Auckland $208.6 $ $ % Hamilton $19.5 $17.4 +$ % Adelaide A$20.9 A$23.1 -A$ % Darwin A$35.2 A$33.0 +A$ % Other New Zealand Oerations $9.8 $4.5 +$ % Grou/Cororate Exenses ($24.7) ($26.0) +$ % International rebate business $6.6 $17.6 -$ % Sub-Total: Gaming/Entertainment Oerations $284.2 $ $ % Cinemas $13.0 $9.9 +$3.1 n/a Grou EBITDA $297.2 $ $ % Dereciation and amortisation $72.3 $65.0 +$ % Grou EBIT $224.9 $ $ % Funding $93.4 $83.9 +$ % Tax $33.1 $32.6 +$ % Minority Interest - $0.4 -$0.4 - Reorted Net Profit after tax $98.4 $ $ % Underlying Net Profit after tax $89.3 $83.3 +$ % The key FY07 erformance statistics for each business unit are summarised on the following two ages

29 FY07 Result Grou Summary Auckland Reduced gaming revenues (machines, tables and international/commission business) artially offset by increased Attractions (non-gaming) revenues and cost management has resulted in reduced earnings erformance with FY07 EBITDA down 2.9% on rior year Hamilton Strong revenue erformance in all sectors leading to 12.1% increase in EBITDA Adelaide Revenues u marginally, offset by slightly higher costs, leading to a 9.5% decline in EBITDA Darwin Revenues u 8.5% leading to a 6.7% increase in EBITDA Christchurch U 5.7% over rior year Queenstown Positive earnings outcome in FY07 after loss in FY06, but not material to overall Grou result Cororate Indirect Exenses Down 4.8% ($1.5m) in FY07 as the cost rationalisation rogramme starts to come through

30 FY07 Result Grou Summary Grou International Rebate Business (IRB) EBITDA comrises gross revenue $32.5m (FY06: $31.7m) less commissions, comlimentaries and taxes $19.6m (FY06: $10.7m) equals net win after commissions comlimentaries and taxes $12.9m (FY06: $21.0m) less IRB exenses $6.3m (FY06: $3.4m) equals IRB EBITDA $6.6m (FY06: $17.6m) Gaming/Entertainment Grou Sub-Total (excluding Cinemas) Down 2.4% at EBITDA due rimarily to Auckland gaming revenues and IRB EBITDA being down on rior year Cinemas Reorted EBITDA shows a substantial increase but adjusting for increase in ownershi from 50% to 100%, revenues were flat but costs increased, with EBITDA effectively well down on rior year Funding Cost of $93.4m in line with guidance rovided in FY06 result resentation (August 2006) Tax Tax rate for FY07 at 25.2%. Lower than exected tax rate as advised at FY07 interim result (February 2007) due to subsequent New Zealand cororate tax rate change from 33% to 30% effective 1 Aril 2008, but imacting FY07 NPAT due rimarily to reduction in deferred tax liability.

31 NZ$m FY07 Result Oerating Revenues: Five Year Trends 150 SKYCITY Darwin NZ$m 450 SKYCITY Auckland A$76m A$89m +17% A$95m + 7% $378m + 8% $392m + 4% $396m + 1% $428m + 8% $418m -2% 0 NZ$m FY03 FY04 FY05 FY06 FY07 A$104m + 9% SKYCITY Adelaide A$110m + 6% A$108m -2% A$131m +21% A$133m + 2% NZ$m FY03 FY04 FY05 FY06 FY Other NZ Oerations $132m +57% $68m +39% $78m +15% $83m + 6% $84m + 1% 50 0 FY03 FY04 FY05 FY06 FY07 0 FY03 FY04 FY05 FY06 FY07

32 FY07 Result EBITDA: Five Year Trends NZ$m 60 SKYCITY Darwin NZ$m 250 SKYCITY Auckland A$30m A$34m +13% A$35m + 3% 200 $212m +10% $215m + 1% $210m -2% $227m + 8% $209m -8% 0 NZ$m FY03 FY04 FY05 FY06 FY07 SKYCITY Adelaide A$25m +39% A$25m A$18m -28% A$27m +50% A$25m -7% NZ$m FY03 FY04 FY05 FY06 FY07 60 Other NZ Oerations $20m +82% $26m +30% $35m +35% $32m -9% $43m +34% 0 FY03 FY04 FY05 FY06 FY07 0 FY03 FY04 FY05 FY06 FY07

33 FY07 Result Oerating Revenues and EBITDA Notes re Revenue Grahs (age 30) Other New Zealand Oerations include SKYCITY Hamilton, SKYCITY Queenstown, SKYCITY Cinemas and Christchurch Casino. SKYCITY Hamilton commenced oerations Setember 2002, SKYCITY Darwin acquired July 2004, 40.5% shareholding in Christchurch Casino acquired June 2004, Village Roadshow s 50% of cinema joint venture interest acquired July 2006 FY05-FY07 comly with NZ IFRS (rior years NZ GAAP) The FY05 result for Darwin covers a reorting eriod of 344 days, from 22/7/04-30/6/05, ie. effectively an 11.3 month year. FY06 and FY07 are full 12 month eriods Notes re EBITDA Grahs (age 31) FY06: Hamilton $17.4m, Queenstown -$0.4m, Cinemas $9.9m, Christchurch $5.3m, Other -$0.4m FY07: Hamilton $19.5m, Queenstown $1.0m, Cinemas $13.0m, Christchurch $5.6m, Other $3.9m.

34 FY07 Result Revenues and EBITDA Comosition Grou Revenues $816m (FY06: $765m) EBITDA $297m (FY06: $301m) $m FY07 FY06 Auckland NZ$418 51% 56% $m FY07 FY06 Auckland NZ$209 65% 69% Other NZ NZ$137 17% 12% Other NZ NZ$43 13% 10% Adelaide A$133 19% 19% Darwin A$95 13% 13% Adelaide A$25 9% 9% Darwin A$35 13% 12% TOTAL NZ$816 Cororate Costs (NZ$25) TOTAL NZ$297 Gaming/Non-Gaming Revenues $m FY07 FY06 Gaming NZ$576 71% 76% Non-Gaming NZ$240 29% 24%

35 International Rebate Business

36 International Rebate Business FY07, FY06, FY05 Revenues International rebate business revenues were excetionally strong in Auckland in FY06, roducing a net after commission revenue outcome of $14.4m and a Grou revenue of $21.0m The more normal Grou IRB result, as indicated by the FY05 and FY07 years, is between $8m-$14m er annum. $m Theoretical Actual Variance Revenue Commission Net Win (1) Revenue Commission Net Win (1) Revenue Commission Net Win (1) Auckland FY07 $26.5 $14.4 $12.1 $19.1 $15.0 $4.1 -$7.4 -$0.6 -$8.0 FY06 $9.5 $5.2 $4.3 $20.3 $5.9 $14.4 +$10.8 -$0.7 +$10.1 FY05 $12.0 $6.5 $5.5 $13.1 $7.2 $5.9 +$1.1 -$0.7 +$0.4 Adelaide FY07 A$6.0 A$3.6 A$2.4 A$9.7 A$3.3 A$6.4 +A$3.7 +A$0.3 +A$4.0 FY06 A$5.1 A$3.1 A$2.0 A$7.5 A$2.5 A$5.0 +A$2.4 +A$0.6 +A$3.0 FY05 A$5.8 A$3.5 A$2.3 A$3.4 A$3.0 A$0.4 -A$2.4 +A$0.5 -A$1.9 Darwin FY07 A$0.9 A$0.6 A$0.3 A$1.0 A$0.5 A$0.5 +A$0.1 +A$0.1 +A$0.2 FY06 A$1.4 A$0.9 A$0.5 A$2.7 A$1.7 A$1.0 +A$1.3 -A$0.8 +A$0.5 FY05 A$0.9 A$0.6 A$0.3 A($0.9) A$0.7 A($1.6) -A$1.8 -A$0.1 -A$1.9 Grou Total (2) FY07 $34.8 $19.5 $15.3 $32.5 $19.6 $12.9 -$2.3 -$0.1 -$2.4 FY06 $17.0 $9.8 $7.2 $31.7 $10.7 $21.0 +$14.7 -$0.9 +$13.8 FY05 $19.9 $11.4 $8.5 $16.4 $11.6 $4.8 -$3.5 -$0.2 -$3.7 (1) The urose of the above table is to identify the above/below theoretical IRB erformance. Net win is before the deduction of labour costs, gambling levies and other related costs not imacting on theoretical versus actual comarisons. (2) SKYCITY Queenstown figures not shown searately but included in Grou total. Queenstown FY07 actual win $0.8m (theoretical $0.1m), FY06 -$0.1m (theoretical $0.1m), FY05 $0.2m (theoretical $0.3m).

37 Auckland Result: FY07

38 SKYCITY Auckland FY07 Result Summary FY07 $m Variance to FY06 $m % Revenue (excluding IRB) Gaming - Local $ $ % Other $ $ % Total Revenue - Local $ $ % Direct and Indirect Exenses $ $ % EBITDA (excluding IRB) $ $ % IRB EBITDA $0.5 -$ % Total EBITDA $ $ % The Auckland result is rimarily imacted by the following key factors: gaming GOI (excluding international rebate business) down 7.6% (-$16m) offset by Attractions GOI u 12% and indirect exenses down $5m resulting in re IRB EBITDA down 2.9% and IRB inclusive EBITDA down 7.9% Revenues, costs and margins are summarised in the table on the following age. IRB = international rebate business.

39 SKYCITY Auckland Revenues, Costs and Margins (IRB identified searately) Gaming EBITDA (excluding IRB) FY07 $m $ % FY06 $m $ % Variance to FY06 -$ % IRB EBITDA $0.5 $12.1 -$ % Dereciation and Amortisation $41.3 $39.4 +$ % EBIT $ % $ % $m % Revenue $296.1 $ $ % Direct Costs GOI Attractions $100.6 $ $ % $ % Revenue $102.4 $92.6 +$ % Direct Costs $55.2 $50.4 +$ % GOI $ % Total $ % $ % Revenue $398.5 $ $ % Direct Costs $155.8 $ $ % GOI $ % $ % -$ % +$ % -$ % Indirect Exenses $34.1 $38.9 -$ % -$ %

40 SKYCITY Auckland FY07 Revenue Comosition FY07 $m Variance to FY06 $m % Revenue Gaming Machines $189.7m -$4.8m 2.5% Gaming Tables - Local $106.4m -$13.6m 11.3% Total Gaming Revenue - Local $296.1m -$18.4m 5.9% Food and Beverage $40.4m +$3.0m 8.0% Hotels $32.1m +$4.1m 14.6% Conventions $16.9m +$1.5m 9.7% Sky Tower, Parking, Other $24.8m +$1.4m 6.0% Comlimentaries (1) ($11.8m) (+$0.2m) ( 1.7%) Total Attractions Revenue $102.4m +$9.8m 10.6% IRB Revenue (2) $19.1m -$1.2m 5.9% Total Revenue $417.6m -$9.8m 2.3% (1) Comlimentaries steady at 2.7% of total revenues (FY06 2.6%). (2) Revenues before commissions. FY07 net win after commissions $4.1m. FY06 net win after commissions $14.4m. Variance -$10.3m.

41 SKYCITY Auckland FY07 Result: Key Features The discretionary sending ower of customers has been imacted by the economic environment, in articular by increased etrol rices and interest rates Gaming revenues down in each of the three main sectors: machines, tables (local) and tables (IRB). The main floor refurbishment rogramme (construction and layout noise and disrution) has had a significantly adverse imact on Auckland gaming revenues since the roject commenced in Setember 2006 Gaming machine revenues down 2.5% for the year with second half revenues down 7% on first half Local table games the most affected by construction noise and disrution with revenues down 11% for the year and second half revenues down 8% on first half IRB revenues recovered well in the second half after a strongly adverse first half but IRB EBITDA at $0.5m was still well down on FY06 s excetionally strong EBITDA result of $12.1m The main floor refurbishment/renovation roject has been more disrutive than originally anticiated and this has clearly imacted on customer frequency and duration of visit, and hence overall send There is clearly an element of customer fatigue with the construction disturbance and the inevitable disrution to floor layout as the works rogress which will imact on revenues during the first half of FY08 and, to a lesser extent, into the first half of 2H08. As more elements of the refurbishment become available, the fatigue factor will be relaced by a renewed enthusiasm for the new gaming facilities, layout and roduct. Enthusiasm from customers for the new saces already commissioned is highly encouraging

42 SKYCITY Auckland FY07 Result: Key Features Being the main contributor to overall Grou erformance, management attention has been focused in recent months on Auckland gaming roduct and customer service. An intensive worksho, involving gaming ersonnel from around the Grou, has reviewed the Auckland oeration and a range of erformance imrovement initiatives, including machine mix and service imrovement have been identified for imlementation Attractions sector erformed strongly revenues u 11% with GOI u from 45.6% to 46.1% restaurants and bars u 8% at GOI of 21% SKYCITY Hotel at 85% occuancy at $146 ADR SKYCITY Grand Hotel at 50% occuancy in only its second year of oeration, u from 41% in year 1 (FY06), with ADR maintained above $200 at $220 convention revenues u a further 10% in FY07 at $17m increased revenues in cararking and Sky Tower Desite general wage and cost inflation, indirect exenses were managed down by 12% ($5m), reducing from $39m in FY06 to $34m in FY07. The main exenditure within indirect costs is roerty services (utilities, cleaning, roerty maintenance) and rates at 45%, with the balance made u of finance/accounting, marketing and advertising, HR and IS.

43 Moving Forward Auckland Gaming Oerations Review

44 Auckland Review: 5 Key Focus Areas Caitalising on the Grou s gaming exertise, a eer review of the Auckland gaming oerations was undertaken in July Five key enhancements were identified to imrove erformance from the Auckland gaming business 1. Greater influence on vendors to ensure that the design of machine game roduct better meets the needs of the New Zealand layer Product develoment over the ast three years has been led by the needs of the larger Australian gaming market and emergence of the Asian markets The majority of roducts cater for the low denomination layer (1c and 2c). The New Zealand market has a strong layer base that refers to lay mid-denomination roduct (5c and 10c) and their needs are not being met The SKYCITY Auckland site will bring back at least 10% of the gaming floor in the mid-denomination range through sulier influence 2. Dedicated High Value Player zones are underway to enhance the exerience and retain and grow this segment of the market Dedicated northern zone of the casino floor with relevant roduct and enhanced service levels New technology introduction to enhance on-site recognition

45 Auckland Review: 5 Key Focus Areas 3. Re-rioritisation and further otimisation of the refurbishment roject underway to minimise imact on revenues and otimise investment Loss of gaming roduct on the main gaming floor during refurbishment has decreased the erformance of the Auckland gaming business The key riority areas for the Auckland refurbishment have been fasttracked to ensure a seedier comletion by January 2008 Comleted areas such as the Baccarat room rovide a suerior gaming exerience which is being reflected in results Analysis has shown that a two-level gaming exerience does not otimise gaming returns. A single floor gaming exerience is being evaluated 4. Customer communications on new roduct to facilitate layer references 25% of the gaming floor has new roduct with a different style of lay Better communications with customers on the new roduct features, to ensure a safe and rewarding level of lay, is underway Further oortunities exist to imrove customer services

46 Auckland Review: 5 Key Focus Areas 5. Relaunch of the ACTION rogramme The SKYCITY ACTION loyalty rogramme is a key business driver to suort visitation growth across all asects of the business Enhancements to the ACTION rogramme have been evolving over the ast six months with ositive results in visitation evidenced from target customer segments The new rogramme design for the New Zealand sites is well underway with external market testing lanned for Setember and a launch date of March 2008 Enhanced alication of ACTION data to suort host resonsibility within SKYCITY s Harm Minimisation Framework is also underway. International exerts in the develoment of harm rediction models have been engaged by SKYCITY to advise the comany on the otential for this data to suort this key area of our business.

47 Adelaide Result: FY07

48 SKYCITY Adelaide FY07 Result Summary FY07 A$m Variance to FY06 A$m % Revenue (excluding IRB) Gaming Machines $56.4 +$ % Gaming Tables - Local $51.1 -$ % Total Gaming Revenue - Local $ $ % Food and Beverage, Other $16.2 -$ % Total Revenue $ Direct and Indirect Exenses $ $ % EBITDA (excluding IRB) $20.9 -$ % IRB EBITDA $4.5 +$ % Total EBITDA $25.4 -$ % IRB = international rebate business. IRB net revenue after commissions: FY07 A$6.4m, FY06 A$5.0m.

49 SKYCITY Adelaide Revenues, Costs and Margins (IRB identified searately) Gaming EBITDA (excluding IRB) FY07 A$m $ % FY06 A$m $ % Variance to FY06 A$m % Revenue $107.5 $ $ % Direct Costs GOI Food and Beverage, Other $74.2 $72.5 +$ % $ % Revenue $16.2 $16.8 -$ % Direct Costs $12.7 $13.4 -$ % GOI Total $ % $ % $ % Revenue $123.7 $ Direct Costs $86.9 $85.9 +$ % GOI $ % $ % -$ % +$ % -$ % Indirect Exenses $15.9 $14.7 +$ % -$ % IRB EBITDA $4.5 $4.2 +$ % Dereciation and Amortisation $9.9 $10.2 -$ % EBIT $ % $ % -$ %

50 SKYCITY Adelaide FY07 Result: Key Features Local gaming revenues u marginally over FY06 with machines increase of A$1.9m offset by A$1.3m decrease in table revenues IRB revenues u A$2.2m with IRB EBITDA u A$0.3m over rior year Direct and indirect exenses increased by A$2.2m resulting in EBITDA (excluding IRB) droing back by A$2.2m (-9.5%) comared to FY06 The extremely extended aroval rocess for the carark roject is not yet comletely finalised. While the imortant ste of State Government aroval has been obtained there are a number of rocedural matters to attend to. The comany exects that these matters will be comleted to enable construction to start in early calendar 2008 The delays in the carark aroval rocess have seriously imeded the lanned redeveloment roject, to the detriment of the SKYCITY Adelaide facility, its customers and staff, and the financial returns being achieved from SKYCITY s significant investment in its Adelaide roerty As referred earlier in this resentation, SKYCITY will now test market interest in submitting formal bids for this asset.

51 Darwin Result: FY07

52 SKYCITY Darwin FY07 Result Summary FY07 A$m Variance to FY06 A$m % Revenue (excluding IRB) Gaming Machines $53.0 +$ % Gaming Tables - Local $11.1 +$ % Keno/Other $10.1 +$ % Total Gaming Revenue - Local $74.2 +$ % Hotel $5.0 +$ % Food and Beverage, Conventions $14.4 +$ % Total Revenue $93.6 +$ % Direct and Indirect Exenses $58.4 +$ % EBITDA (excluding IRB) $35.2 +$ % IRB EBITDA $0.1 -$ % Total EBITDA $35.3 +$ % IRB = international rebate business. IRB net revenue after commissions: FY07 A$0.5m, FY06 A$1.0m.

53 SKYCITY Darwin Revenues, Costs and Margins (IRB identified searately) Gaming EBITDA (excluding IRB) FY07 A$m $ % FY06 A$m $ % Variance to FY06 +$ % IRB EBITDA $0.1 $0.6 -$ % Dereciation and Amortisation $6.7 $5.6 +$ % EBIT $ % $ % A$m % Revenue $74.2 $69.5 +$ % Direct Costs GOI Hotel, Convention, Food & Beverage $32.9 $31.0 +$ % $ % Revenue $19.4 $16.8 +$ % Direct Costs $13.5 $11.4 +$ % GOI Total $ % $ % $ % Revenue $93.6 $86.3 +$ % Direct Costs $46.4 $42.4 +$ % GOI $ % $ % +$ % +$ % +$ % Indirect Exenses $12.0 $10.9 +$ % +$ %

54 SKYCITY Darwin FY07 Result: Key Features Local gaming revenues u in each sector: machines (+6%), tables (+7%), Keno/other (+11%) offset by IRB. IRB EBITDA down A$0.5m Overall, gaming revenues continue to build, u 4% over rior year Strong hotel erformance continued with occuancy u 3% oints to 82% and average room rate u 10% at A$168 Food and beverage and banquet/convention revenues u 15% at A$14.4m Casino licence extension agreed with the Northern Territory government. Effectively a 15/20 year renewable licence with continuing exclusivity A$30m exansion roject (in resonse to growth and licence extension undertaking) will commence with reliminary work starting late August, building work commencing mid-november, with comletion scheduled for December 2008 Project works include 370m 2 gaming floor exansion (+12%), new 320m 2 bar, new 225m 2 restaurant (180 seats) and additional outdoor entertainment saces to comlement the ugraded ool facility comleted in May 2006 Little Mindil site (adjacent to existing site) secured to otimise future flexibility.

55 Hamilton Result: FY07

56 SKYCITY Hamilton FY07 Result FY07 $m Variance to FY06 $m % Revenue Gaming $33.3 +$ % Food and Beverage, Other $6.4 +$ % Total Revenue $39.7 +$ % Direct and Indirect Exenses $20.2 +$ % EBITDA $19.5 +$ % Strong erformance (revenues and cost management) with EBITDA ratio maintained at 49.1% (FY06: 49.9%) Gaming growth of 12% contributed by machines u 12% and tables u 13% Food and beverage revenues u strongly (+21%) over FY06 with new Zone bar a significant contributor New café/restaurant oened May 2007.

57 Other New Zealand Oerations: FY07

58 Other New Zealand Oerations FY07 Result $m Christchurch Casino Queenstown (1) Other (2) Total Other New Zealand FY07 FY06 FY07 FY06 FY07 FY06 FY07 FY06 Revenue $5.6 $5.3 $7.4 $5.7 $4.4 $0.3 $17.4 $11.3 Direct and Indirect Exenses - - $6.4 $6.1 $0.5 $0.7 $6.9 $6.8 EBITDA $5.6 $5.3 $1.0 ($0.4) $3.9 ($0.4) $10.5 $4.5 Dereciation and Amortisation - - $0.7 $0.9 $0.2 $0.2 $0.9 $1.1 EBIT $5.6 $5.3 $0.3 ($1.3) $3.7 ($0.6) $9.6 $3.4 (1) Queenstown includes IRB revenue and EBITDA of $1.0m and $0.7m resectively (FY06: nil, nil). (2) Other rimarily comrises gain on foreign exchange from Australian comany caital restructure of $3.3m and rofit on sale of Christchurch roerty of $0.7m.

59 Christchurch and Queenstown Christchurch Casino (41% shareholding) Earnings from Christchurch Casino (and Christchurch Crowne Plaza Hotel) at $5.6m, u $330k on rior year FY06 New gaming floor bar oened November 2006 with further roerty enhancements and new facilities currently under consideration. Neighbouring site acquired to ensure future cararking caacity and flexibility Uside otential in this roerty through oerational and roerty imrovements New Chief Executive (Brett Anderson ex Macau) commenced 30 July 2007 SKYCITY Queenstown Casino (60% shareholding) Gaming revenues u 33% over FY06 due rimarily to international rebate business but both machines and local table revenues also u by 6% and 27% resectively Food and beverage revenues u 10% over rior eriod Positive EBITDA and EBIT results, u significantly over rior year.

60 Cinemas Result: FY07

61 SKYCITY Cinemas FY07 Result FY07 $m FY06 $m (50%) 100% Cinemas Revenue $67.6 $33.7 $67.4 Direct and indirect exenses $58.9 $26.9 $53.8 EBITDA $8.7 $6.8 $13.6 Dereciation $5.8 $2.1 $4.2 EBIT $2.9 $4.7 $9.4 SKYCITY Metro Revenue $3.5 $4.0 $4.0 Gain on sale of roerties* $3.5 Direct and indirect exenses $1.4 $0.9 $0.9 SKYCITY Metro oerating trust account final entries (exense) $1.3 EBITDA $4.3 $3.1 $3.1 Dereciation $0.1 $0.2 $0.2 EBIT $4.2 $2.9 $2.9 SKYCITY Cinemas Total Revenue $74.6 $37.7 $71.4 EBITDA $13.0 $9.9 $16.7 EBIT $7.1 $7.6 $12.3 * SKYCITY Metro +$1.0m, 82 Symonds Street $2.5m.

62 SKYCITY Cinemas SKYCITY Metro Centre sold for $55.1m. Sale roceeds cover the cost of acquisition of the Village 50% cinema joint venture interest (New Zealand and Fiji, July 2006, $52.0m). Settlement date 11 June 2007 Comarison to rior eriod needs to allow for 100% ownershi in FY07, 50% ownershi in FY06. In the chart on the revious age FY06 is shown at 50% (actual ownershi) and also converted to 100% to facilitate comarison to FY07 Disaointing cinemas outcome for FY07 on the back of low erforming film roduct. Stronger film roduct in late 2H07 and into the front end of FY08 is roviding a ositive imetus to revenue erformance Cinema revenues (allowing for doubling of ownershi interest) essentially flat (desite new cinema venues in Queensgate (Lower Hutt), New Plymouth and The Embassy Wellington) at $67.6m comared to $67.4m in FY06 (assuming 100% ownershi) Cinema exenses increased more than roortionately (due mainly to an increase in number of sites/screens) from $26.9m in FY06 to $58.9m in FY07, resulting in an EBIT contraction from the cinema oerations of $1.8m (from $4.7m in FY06 to $2.9m in FY07) SKYCITY Metro gain on sale of $1.0m offset by oerating trust account final entries of $1.3m.

63 Funding and Caital Management

64 Funding and Caital Management Caital exenditure, dereciation and interest cost guidance for the three year eriod FY08-FY10 is included in the financial schedules attached to this resentation As at 30 June 2007, the comany s debt structure was: 30/6/07 30/6/06 Senior bank facility and US rivate Placement long-term facilities Subordinated Debt: NZ$ caital notes and A$ SKYCITY ACES notes $753m $951m $285m $302m Total Grou Debt NZ$1,038m NZ$1,253m The reduction in senior debt facilities during FY07 (as reorted in the comany s financial statements) was due to reayment of NZ$ facilities ($93m) lus exchange rate movement on the US$447m rivate lacement facilities Currency exosure on US$ debt is fully hedged by way of cross currency interest rate swas. Currency exosure on A$ debt is hedged against the net investment in Australian subsidiaries

65 Funding and Caital Management Debt to book value of equity is not a valid ratio for SKYCITY as significant value (the comany s Auckland, Hamilton and Queenstown casino licences) is not reorted on the balance sheet and revious share buybacks have reduced equity at market value of shares bought back not at book value Debt to enterrise value is a more aroriate gearing ratio for SKYCITY. At a share rice of $4.30, the debt:enterrise value ratio (re debt as at 30/6/07) would have been 35%. At a share rice of $5.00, the debt:enterrise ratio would have been 32% The comany is comfortable in a debt:enterrise ratio range between 30%-40% given existing covenant structures for its senior and subordinated debt Average interest rate currently (20/8/07) alying to SKYCITY s debt ortfolio is 7.71%. The comany s debt osition is well-hedged to restrict the imact of interest rate increases Any asset divestment roceeds will either be used to reduce debt and/or be returned to shareholders. The aroriate caital management strategy will deend on assets divested and the level of roceeds realised.

66 Moving Forward Comany Direction

67 Summary Financial Results Year ended 30 June 2007 The financial results as set out on the following ages summarise the key features of the oerating erformance achieved by the SKYCITY Grou during the year ended 30 June They are not the financial statements of SKYCITY Entertainment Grou Limited and therefore do not contain all the detail and disclosures which are included in the comany s 2007 financial statements. In the financial statements, interest received and gains on some financial transactions are included as other revenue. In these result summaries these items have reviously been netted off against funding costs to better identify the net cost of the comany s debt funding arrangements but these summaries have now been amended to avoid the differential with IFRS treatment.

68 SKYCITY Entertainment Grou Result Summary For the year ended 30 June 2007 New Zealand oerations exressed in NZ$m FY07 FY06 Australian oerations exressed in A$m Auckland NZ$m Hamilton NZ$m Adelaide A$m Darwin A$m Other NZ Oerations (1) NZ$m Cororate/ Unallocated NZ$m Sub-Total NZ$m Cinemas NZ$m SKYCITY Grou NZ$m Auckland NZ$m Hamilton NZ$m Adelaide A$m Darwin A$m Other NZ Oerations (1) NZ$m Cororate/ Unallocated NZ$m Sub-Total NZ$m Cinemas NZ$m SKYCITY Grou NZ$m Excluding Comlimentaries Gaming Revenue Direct Exenses Gross Margin (1.7) % 62.8% 32.3% 55.1% 35.4% 53.9% 53.9% 66.8% 61.3% 33.7% 54.2% 20.4% 56.7% 56.7% Other Revenue Direct Exenses Gross Margin % 39.1% 21.6% 30.4% 88.1% 45.3% 31.0% 40.9% 45.6% 48.1% 20.2% 32.1% 81.3% 44.9% 39.5% 43.8% Excluding Comlimentaries Total Revenue Direct Exenses Gross Margin % 58.9% 31.0% 50.0% 68.4% 52.0% 31.0% 50.0% 62.2% 59.3% 32.0% 50.0% 54.9% 54.3% 39.5% 53.6% Indirect Exenses % 9.8% 11.9% 12.7% 8.0% 13.6% 13.5% 13.6% 9.1% 9.5% 11.2% 12.2% 15.0% 14.3% 13.3% 14.2% EBITDA (24.7) (26.0) % 49.1% 19.0% 37.3% 60.3% 38.3% 17.4% 36.4% 53.1% 49.9% 20.8% 37.8% 39.8% 40.1% 26.3% 39.4% Dereciation Amortisation EBIT (25.0) (26.3) % 37.0% 11.6% 30.2% 55.2% 29.4% 9.5% 27.6% 43.9% 37.5% 13.0% 31.5% 30.1% 31.4% 20.2% 30.9% Funding Net Profit before tax % 19.9% Tax Minority Interests Net Profit after tax (and Minority Interests) (1) Other NZ Oerations includes Queenstown and Christchurch Casino Limited (associate). Minority Interests relate to SKYCITY Queenstown. Comlimentaries NZ$ NZ$ A$ A$ NZ$ NZ$ NZ$ NZ$ NZ$ NZ$ NZ$ A$ A$ NZ$ NZ$ NZ$ NZ$ NZ$ #REF!

69 SKYCITY Entertainment Grou Limited Result Summary For the year ended 30 June 2007 All figures in NZ$m unless otherwise indicated FY07 FY06 Revenue (1) $816m $765m - New Zealand Oerations +$36.1m +$51m - Adelaide +A$2.2m (+$6.4m) - Darwin +A$5.6m (+$9.0m) Gross Margin $408m $410m - New Zealand Oerations -$6.3m -$2m - Adelaide -A$0.7m (+$0.4m) - Darwin +A$2.7m (+$4.4m) Indirect Exenses $183m $174m (including dereciation and amortisation) +$9m EBIT $225m $236m - New Zealand Oerations -$11.2m -$11m - Adelaide -A$1.6m (-$1.4m) - Darwin +A$0.6m (+$1.2m) Funding $93m $84m +$9m Net Profit after Tax $98.4m $120.1m -$21.7m Underlying/Normalised NPAT (excluding Cinemas) $89.3m $83.3m (1) Revenues are stated net of comlimentaries +$6.0m

70 As at 30/6/07 NZ$000 As at 30/6/06 NZ$000 Equity Share caital 364, ,735 Retained rofits 31,044 32,756 Reserves (16,069) (8,171) Minority interests 2,491 2,463 TOTAL EQUITY 381, ,783 Current Assets Cash and bank 71,537 74,098 Receivables and reayments 30,996 30,803 Inventories 5,523 5,241 Tax receivables 25,971 - Assets held for sale - 52,400 Other current assets 334 1, , ,019 Non-Current Assets Proerty, lant and equiment 940, ,123 Investment roerty 8,845 8,593 Intangible assets 433, ,011 Investments in associates 80,831 78,304 Tax receivables - 47,438 Deferred tax assets 15,978 26,667 Derivative financial instruments 26,865 37,055 Other non-current assets 2,514 2,622 1,508,608 1,561,813 TOTAL ASSETS 1,642,969 1,725,832 Current Liabilities Payables 119, ,801 Non-Current Liabilities 119, ,801 Term borrowings 753, ,904 Subordinated debt 285, ,676 Deferred tax liabilities 52,992 60,596 Derivative financial instruments 50,774 3,072 1,141,934 1,316,248 SKYCITY Entertainment Grou Limited Consolidated Balance Sheet TOTAL LIABILITIES 1,261,435 1,417,049 NET ASSETS 381, ,783

71 SKYCITY Entertainment Grou Limited Balance Sheet Notes As at 30 June 2007 Equity Share caital increased by $82.3m as a result of bonus shares issued under the comany s rofit distribution lan in October 2006 and Aril 2007, shares issued to SKYCITY ersonnel under the comany s incentive remuneration lan, and shares issued ursuant to the exercise of otions by executives. Retained rofits decreased by $1.7m. The transactions during the year that affected retained rofits were net surlus after tax for the year ended 30 June 2007 of $98.4m, less the FY06 final and FY07 interim distribution ayments of $100.1m. The Reserves balance as at 30/6/07 is reresented by the shares awarded but not yet issued to salaried staff under the Performance Pay Incentive Plan $3.5m, foreign currency translation reserve balance - $20.9m, and cash flow hedge reserve $1.3m. The foreign currency translation reserve reflects changes in the New Zealand dollar value of the comany s net Australian assets due to movements in the NZD/AUD exchange rate. The cash flow hedge reserve (created on adotion of NZ IFRS) reresents fair value movements in SKYCITY s interest and cross currency interest rate swas that are art of cash flow hedging relationshis. Minority interest of $2.5m is Skyline Enterrises 40% shareholding in Queenstown Casinos Limited. Current Assets Cash and bank comrises $43.7m of funds on interest-bearing deosit and $27.8m of cash held inhouse/on-roerty. FY06 assets held for sale relate to the SKYCITY Metro roerty in Queen Street, Auckland. The building was sold on 11/6/07. Tax receivables of $26.0m relate to reaid tax to ensure the Grou s imutation credit account was in credit on 31/3/07. The balance is shown as a current asset this year as it is exected to be utilised within the next twelve months. The decrease in this balance (FY06 non-current asset) relates to the tax liability for the twelve months.

72 Non-Current Assets The $5.0m increase in roerty, lant and equiment relates rimarily to the Auckland main gaming floor refurbishment, Zone sorts bar (Hamilton), increase in cinema assets following move to 100% ownershi, and new gaming machines and conversions offset by dereciation. Investment roerty of $8.8m relates to the roerty at Hobson Street, Auckland, acquired in June This strategically-located roerty has been urchased for otential future car arking exansion. Intangible assets have increased by $7.5m mainly as a result of goodwill arising from the urchase of Village Roadshow s New Zealand and Fiji cinema interests and the urchase of New Plymouth Totown cinemas ($37.7m), the imact of movements in the NZD/AUD exchange rate on the Adelaide and Darwin casino licences (-$35.7m), amortisation of the Adelaide casino licence (-$2.5m), and software additions and software amortisation ($8.0m). Investments in associates comrise SKYCITY s direct investment in Christchurch Casinos Limited (30.7%) and other minor associates of SKYCITY Cinemas Holdings Limited. SKYCITY s effective shareholding in Christchurch Casinos Limited is 40.5%. An effective 9.8% is held via a shareholding and reayable advance in Christchurch Hotels Limited which owns (through a subsidiary) the Christchurch Crowne Plaza Hotel. Tax receivables are now classified as a current asset. Deferred tax assets of $16.0m relates to tax losses recognised from SKYCITY Cinemas Holdings Limited and Queenstown Casinos Limited and other temorary differences. Refer deferred tax liability under non-current liabilities (below). Derivative financial instruments reresent the fair value of interest and cross currency interest rate swas that were reviously held off balance sheet and are now required to be recognised under NZ IFRS. Derivative assets and derivative liabilities are not netted off under NZ IFRS. The combined derivative asset and liability osition as at 30/6/07, if able to be netted off, would be a net liability of $23.9m. It is the comany s current intention that interest rate swa instruments will run through to maturity and not be realised early. However, NZ IFRS requires that all derivatives be marked to market and recorded on the balance sheet as at the comany s reorting date.