New Zealand Professional Investment Services Firm

Forsyth Barr

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.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>SkyCity (SKC) and the AUSTRAC (Australian Transaction Reports and Analysis Centre) have agreed SKC will pay a fine of ~A$67m due to its alleged contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF Act) at its Adelaide casino.</li><li>After almost three years of enhanced regulatory scrutiny, the announcement is a positive outcome for SKC with the fine modestly lower than our expectations, though other regulatory risks with potentially larger valuation implications remain. Retain NEUTRAL.</li><li>SKC's total provision for the AUSTRAC fine and associated cost is A$73m. Assuming ~A$6m of legal costs (SKC is required to pay for AUSTRAC's as well as its own), the fine amounts to ~A$67m</li></ul>

SkyCity (SKC) and the AUSTRAC (Australian Transaction Reports and Analysis Centre) have agreed SKC will pay a fine of ~A$67m due to its alleged contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF Act) at its Adelaide casino.After almost three years of enhanced regulatory scrutiny, the announcement is a positive outcome for SKC with the fine modestly lower than our expectations, though other regulatory risks with potentially larger valuation implications remain. Retain NEUTRAL.SKC's total provision for the AUSTRAC fine and associated cost is A$73m. Assuming ~A$6m of legal costs (SKC is required to pay for AUSTRAC's as well as its own), the fine amounts to ~A$67m

SkyCity - Light Peeks Through Regulatory Clouds in Sky

Skycity Entertainment

SkyCity - Light Peeks Through Regulatory Clouds in Sky