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>At ~0.5x book value, SkyCity (SKC) is being priced as a perpetual value destroyer.</li><li>Our valuation is underpinned by 29% terminal EBITDA margin and 8% ROIC assumptions, with our NZ$1.10 target price, -20% below book value.</li><li>SKC needs to show that its earnings downgrade cycle is ending and that its earnings potential remains intact before an anticipated rerating takes place.</li></ul>

At ~0.5x book value, SkyCity (SKC) is being priced as a perpetual value destroyer.Our valuation is underpinned by 29% terminal EBITDA margin and 8% ROIC assumptions, with our NZ$1.10 target price, -20% below book value.SKC needs to show that its earnings downgrade cycle is ending and that its earnings potential remains intact before an anticipated rerating takes place.

Skycity Entertainment

SkyCity Playing by the Book