New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>SkyCity (SKC) issued a positive 1Q23 trading update, with group normalised EBITDA +10% above pre-COVID levels on a like-for-like basis (excluding the sold Darwin casino and Auckland carpark).</li><li>The domestic consumer environment remains robust with all properties benefitting from operating restriction free.</li><li>SKC warns against extrapolating 1Q23 performance over the remainder of FY23 given “global economic uncertainty, and how this will impact the domestic economies in which our business operates”.</li></ul>

SkyCity (SKC) issued a positive 1Q23 trading update, with group normalised EBITDA +10% above pre-COVID levels on a like-for-like basis (excluding the sold Darwin casino and Auckland carpark).The domestic consumer environment remains robust with all properties benefitting from operating restriction free.SKC warns against extrapolating 1Q23 performance over the remainder of FY23 given “global economic uncertainty, and how this will impact the domestic economies in which our business operates”.

SkyCity (SKC): Strong 1Q23 Trading Update

<ul><li>Macquarie Bank owned MRF Parking NZ (MRF) has exercised its right to terminate the long-term concession agreement with SkyCity (SKC) for its Auckland carpark</li><li>MRF originally paid SKC NZ$220m for the licence to operate the carparks</li><li>SKC has funding plans in place to buyback the carparks</li></ul>

Macquarie Bank owned MRF Parking NZ (MRF) has exercised its right to terminate the long-term concession agreement with SkyCity (SKC) for its Auckland carparkMRF originally paid SKC NZ$220m for the licence to operate the carparksSKC has funding plans in place to buyback the carparks

SkyCity (SKC): Termination of Auckland Carpark Concession Agreement

<ul><li>Rationale for regulation: The current offshore grey market for online gambling in New Zealand allows leakage of potential tax revenues.</li><li>Online market opportunity: SKC estimates that the online casino market in New Zealand is ~NZ$350m annually, representing ~12% of the total gambling market</li><li>The potential prize: The range of potential regulatory frameworks and tax settings is wide</li></ul>

Rationale for regulation: The current offshore grey market for online gambling in New Zealand allows leakage of potential tax revenues.Online market opportunity: SKC estimates that the online casino market in New Zealand is ~NZ$350m annually, representing ~12% of the total gambling marketThe potential prize: The range of potential regulatory frameworks and tax settings is wide

<ul><li>Revenue recovery strong, pathway to full earnings recovery in FY23 clear</li><li>Cost pressures apparent: SKC has a high level of staff vacancy (it is currently seeking ~400 FTEs, ~15% of its total)</li><li>Adelaide proving difficult on both sides of the revenue and cost coin</li></ul>

Revenue recovery strong, pathway to full earnings recovery in FY23 clearCost pressures apparent: SKC has a high level of staff vacancy (it is currently seeking ~400 FTEs, ~15% of its total)Adelaide proving difficult on both sides of the revenue and cost coin

<ul><li>SKYCITY (SKC) reported a FY22 result unsurprisingly consistent with its June 2022 guidance with EBITDA of NZ$138m, in line with our forecast</li><li>As with previous reopenings, trading has recovered strongly with group revenue consistently above pre-COVID levels from May 2022 onwards</li><li>Assuming no significant restrictions, SKC is guiding to FY23 Normalised EBITDA “to be consistent with pre-COVID levels.”</li></ul>

SKYCITY (SKC) reported a FY22 result unsurprisingly consistent with its June 2022 guidance with EBITDA of NZ$138m, in line with our forecastAs with previous reopenings, trading has recovered strongly with group revenue consistently above pre-COVID levels from May 2022 onwardsAssuming no significant restrictions, SKC is guiding to FY23 Normalised EBITDA “to be consistent with pre-COVID levels.”

SKYCITY (SKC): FY22 Result – Initial Impressions

Australia

SKYCITY Entertainment Group Ltd. provides gaming and casino services. The Company offers various casinos accompanied with various bars, hotels, restaurants, and convention centers. SKYCITY Entertainment Group offers services in Australia and New Zealand.

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Skycity Entertainment (SKC AU)

SkyCity (SKC): Strong 1Q23 Trading Update

SkyCity (SKC) issued a positive 1Q23 trading update, with group normalised EBITDA +10% above pre-COVID levels on a like-for-like basis; this would...

Forsyth Barr

SkyCity (SKC): Termination of Auckland Carpark Concession Agreement

Macquarie Bank owned MRF Parking NZ (MRF) has exercised its right to terminate the long-term concession agreement with SkyCity (SKC) for its...

Forsyth Barr

SKYCITY: Online Jackpot

SkyCity's (SKC) online casino business has the potential to be a material contributor to group earnings and valuation

Forsyth Barr

SKYCITY: FY22 — More Chips Please

SkyCity (SKC) has promptly returned to pre-COVID levels of profitability with the company guiding to a pre-pandemic level of EBITDA in FY23

Forsyth Barr

SKYCITY (SKC): FY22 Result – Initial Impressions

SKYCITY (SKC) reported a FY22 result unsurprisingly consistent with its June 2022 guidance with EBITDA of NZ$138m, in line with our forecast

Forsyth Barr

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