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) has secured the right to apply for two online casino licences, though our analysis suggests the opportunity is relatively modest.</li><li>At the announced price of NZ$30m, we estimate the project is broadly net present value (NPV) neutral, with an internal rate of return (IRR) broadly in line with our estimate of SKC’s cost of capital.</li><li>At maturity, we think online gaming would contribute a modest ~5% of group pre-overhead EBITDA.</li></ul>

SkyCity (SKC) has secured the right to apply for two online casino licences, though our analysis suggests the opportunity is relatively modest.At the announced price of NZ$30m, we estimate the project is broadly net present value (NPV) neutral, with an internal rate of return (IRR) broadly in line with our estimate of SKC’s cost of capital.At maturity, we think online gaming would contribute a modest ~5% of group pre-overhead EBITDA.

Skycity Entertainment

SkyCity Weighing Up the Online Odds