2021 Annual Report Year ended 30 June 2021 Contents

GENERAL CORPORATE GOVERNANCE STATEMENT Report from the Chair and AND OTHER DISCLOSURES Chief Executive Officer 4 Corporate Governance Statement 128 About this Annual Report 9 Remuneration Report 138 Year in Review 10 Shareholder and Bondholder Information 150 Managing the Impacts of COVID-19 12 Directors’ Disclosures 153 Creating Value 16 Company Disclosures 155 Performance 20 An Award-Winning Business 22 FINANCIAL STATEMENTS Diversity Snapshot 24 Independent Auditor’s Report 159 Group Strategy 26 Income Statement 166 About SkyCity 34 Statement of Comprehensive Income 167 Auckland 36 Balance Sheet 168 Adelaide 40 Statement of Changes in Equity 170 Hamilton 44 Statement of Cash Flows 171 Queenstown 45 Notes to the Financial Statements 172 International Business 46 Index to the Notes to the Online 47 Financial Statements 218 Our Values 48

Refreshing Our Brand 49 RECONCILIATION OF NORMALISED Risk Profile and Management 50 RESULTS TO REPORTED RESULTS 219 Our Board 60 Our Senior Leadership Team 64 GRI CONTENT INDEX 223

GLOSSARY 227

SUSTAINABILITY DIRECTORY 228 Sustainability 70 Our Customers 78 Our People 88 Our Communities 102 Our Suppliers 108 Our Environment 116 Independent Limited Assurance Statement 126

ANNUAL MEETING

The 2021 SkyCity Annual Meeting will be held virtually via an online platform on 29 October 2021 commencing at 1.00pm (New Zealand time). Instructions and further details on how shareholders can participate in the virtual Annual Meeting will be included in the Notice of Meeting. Report from the GENERAL Chair and Chief Impact of COVID-19

• COVID-19 continued to significantly impact Executive Officer the business and operations at each of SkyCity’s properties over the period. Government mandated lockdowns in The 2021 financial year was a challenging one for New Zealand and South Australia resulted in SkyCity – responding to external events arising from the closure of SkyCity Auckland for 29 days and the COVID-19 pandemic, opening the Adelaide SkyCity Adelaide for 3.5 days. When permitted to expansion in an uncertain environment and running reopen, the properties initially operated under the business in a volatile operating and regulatory significant constraints due to restrictions on mass landscape. It has taken significant skill, energy gatherings and physical distancing requirements. and dedication from our team and support from • The Trans-Tasman border between New Zealand stakeholders to deliver a satisfactory performance and Australia reopened from 19 April 2021 for the business. (although subject to restrictions as pandemic Despite the ongoing disruption and volatility, outbreaks have occurred) – however, the broader SkyCity has maintained a strong financial position international borders remain closed, significantly over the period, delivered credible operating impacting our tourism-related businesses. performance when open and protected the health Strategy and Major Projects and wellbeing of our people. • A refreshed Group strategy was announced at The SkyCity Board and management have the time of our interim results in February 2021. considered the regulatory and governance Our strategic plan prioritises a focus on our environment in which the Group now operates. core business, executing our major projects The Board’s intention, endorsed by management, in Adelaide and Auckland, delivering on the is that SkyCity will maintain a casino and omnichannel opportunity and the efficient entertainment business which is characterised by allocation of capital. high levels of: • In December 2020, SkyCity completed its • service and facility quality; A$330 million expansion of the SkyCity Adelaide • customer enjoyment and safety; property transforming it into an integrated resort of international scale and quality. The project • staff safety, inclusion, diversity and satisfaction; (including Eos by SkyCity, a new 120-room • social and environmental responsibility; boutique hotel, and new gaming, hospitality and entertainment areas) was completed • economic performance and investment returns; on-time and on-budget and has been well and received by customers with consistent operating • ethical conduct in all respects. performance when open.

Critically, the SkyCity Board and management • Ongoing delays continue to the New Zealand team recognise the importance of protecting our International Convention Centre (NZICC) and casino licences and enhancing our social licence to Horizon Hotel project, exacerbated by the fire in operate. Moreover, maintaining a strong balance October 2019 and COVID-19. SkyCity continues sheet, meeting the interests of all stakeholders and to work closely with Fletcher Construction keeping a disciplined allocation of capital to provide 2020 following an internal succession process • The renewal of the SkyCity Board was confirmed on the project and has secured an extension appropriate risk-adjusted returns to shareholders (replacing the outgoing Chief Executive Officer, during March 2021 with the subsequent to the long stop date to complete the NZICC over the long term remain key priorities. Graeme Stephens). Michael brings strong appointment of three new directors – to 15 December 2027 with the New Zealand operational knowledge of the SkyCity business, as Silvana Schenone, Julian Cook and Chad Barton Government. Although Fletcher Construction’s The key features of the year can be summarised as: well as international gaming and entertainment – in June 2021. The new directors bring diverse latest draft programme indicates completion experience, to the role and has put in place a skills, backgrounds and experience to the Board. Management and Board of the NZICC in late 2024, SkyCity considers refreshed Senior Leadership Team. The Board will be conducting a thorough review it prudent to retain a buffer between the • The appointment of Michael Ahearne as the of its effectiveness during the 2022 financial year. • The retirement of Bruce Carter from the SkyCity programme and the long stop date. new Chief Executive Officer in November Board in March 2021.

4 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 Report from the Chair and Chief Executive Officer 5 GENERAL

• SkyCity Auckland opened new food and beverage Financial Performance, Balance Sheet At a property level, SkyCity Auckland delivered Project Nikau, an initiative to employ and develop facilities on the main gaming floor, improved VIP and Distributions resilient local gaming activity, but this was offset career pathways for youth with a focus on Māori gaming facilities on Levels 8 and 9 of the main by non-gaming performance being significantly and Pasifika. SkyCity has also made progress • Group reported EBITDA and NPAT were site and welcomed the arrival of the All Blacks impacted by COVID-19. SkyCity Hamilton and on refocusing the SkyCity Community Trusts in $317.3 million and $156.1 million respectively, Experience and Weta Workshop Unleashed, two SkyCity Queenstown delivered strong EBITDA New Zealand on initiatives that will enhance the down from the prior comparable period due world-class attractions, to the precinct. performances led by local gaming revenue growth employability and advancement of youth and has to the ongoing impact of the New Zealand combined with disciplined cost management. upweighted strategies to ensure its supply chain is • A strategic review into the International International Convention Centre fire and the SkyCity Adelaide’s performance prior to the ethical and supports local businesses. Business division was undertaken during April gain from the sale of the Auckland car park expansion opening was impacted by COVID-19 2021. SkyCity has decided to permanently cease concession. In terms of outlook for FY22, given the current disruption, but when open has significantly dealing with junket operators, but to continue unpredictable operating environment and • Group normalised EBITDA and NPAT of improved across all activities. SkyCity has been to operate the division under a revised operating uncertain near-term outlook due to COVID-19, $252.0 million and $90.3 million respectively are making operational adjustments to the business model where SkyCity will deal directly with SkyCity is unable to provide detailed earnings at the top end of the guidance provided to the when necessary and we continue to adhere to all patrons after appropriate know your customer guidance at this time, but this will remain under market during June 2021, but are still well below Government guidance to ensure our employees and (KYC) and customer financial due diligence regular review. Our performance over the next pre COVID-19 earnings in FY19. customers are managed safely. requirements are satisfied. year will be underpinned by the ongoing recovery • SkyCity’s financial position remains strong SkyCity has continued to operate its offshore of local gaming, optimising SkyCity Adelaide post Regulatory and Compliance post implementation of our funding plan from online casino venture, SkyCity Online Casino, with expansion and robust cost control across • Steady progress was made with initiatives mid-2020. SkyCity has satisfied its financial Gaming Innovation Group Inc, despite operational all activities. covenants for the 30 June 2021 testing period constraints. Performance has exceeded our to enhance SkyCity’s host responsibility We wish to take the opportunity to publicly thank and will pay a dividend of 7 cents per share expectations with significant growth in revenue and anti-money laundering (AML) control the SkyCity Board and management team and, in during September 2021. and EBITDA and in excess of 45,000 active frameworks. Minimising harm to customers particular, the broader SkyCity family for effectively customers currently. remains a key focus with appropriate effort, • SkyCity’s BBB- credit rating from S&P meeting the challenges over the past year and for resource and capital allocated to support this Global Ratings was upgraded to “Stable” SkyCity supports the regulation of online gaming continuing to support the business as it recovers initiative, such as increased resourcing and from “Negative” Outlook during April 2021. in New Zealand with an emphasis on strong host − your efforts are greatly appreciated. The SkyCity investment in bespoke ICT systems (including Following the issue of $175 million of six-year, responsibility and delivering community benefits Board and management are aligned in responding facial recognition technology and specialised unsecured, unsubordinated, fixed rate bonds in New Zealand and we continue to prepare for to the challenges at hand, managing the risks customer screening tools). SkyCity is committed in New Zealand in May 2021, SkyCity remains a regulated industry which ensures responsible faced by the business and addressing strategic to ensuring that it provides safe and responsible well positioned to fund future capital and gambling. Growth in online gambling continues opportunities as they arise. experiences and environments and places operating commitments. to be a significant global industry theme with Finally, and most importantly, thank you to our significant importance on its host responsibility numerous international jurisdictions regulating The financial result for the year was complicated by external stakeholders – from our shareholders, and AML obligations. online gambling (or intending to do so) to property closures and other restrictions imposed by financiers, suppliers, through to our customers. safely address the transition from physical to • In June 2021, SkyCity was informed by the COVID-19, which limit comparability with the prior SkyCity doesn’t exist without you − a big thank online entertainment. Australian Transaction Reports and Analysis comparable period. SkyCity has also been aided you for your ongoing support. Centre (AUSTRAC) that it had identified potential by Government responses in the form of wage SkyCity has continued to create and support a serious non-compliance by SkyCity Adelaide with subsidies and other assistance measures over the positive employee culture over the period, focusing the Australian AML legislation and that a formal period, a portion of which SkyCity has elected to on initiatives to enhance workplace flexibility, enforcement investigation into the compliance repay reflecting improved financial performance. wellbeing and diversity. To this end, SkyCity was of SkyCity Adelaide had been initiated. pleased to receive the Diversity and Inclusion The Group delivered a solid financial performance, The SkyCity Board and management team Leadership Award at the 2020 Deloitte Top 200 Rob Campbell Michael Ahearne despite the challenging operating environment. take the concerns raised by AUSTRAC seriously Awards for the second time in three years for Chair Chief Executive Officer and have taken immediate steps to investigate Local gaming has performed well when open and appropriately address the concerns raised. and operating without restrictions while our SkyCity will continue to fully cooperate with tourism-related businesses, including hotels, food AUSTRAC with regards to its inquiries and with and beverage and International Business, had a the investigation of SkyCity Adelaide. weaker result primarily due to ongoing international and domestic (Australia) border closures.

6 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 Report from the Chair and Chief Executive Officer 7 About this GENERAL Annual Report

This annual report is a review of SkyCity Entertainment financial information is to provide data that is useful Group Limited (SkyCity or the company and, together to the investment community in understanding the with its subsidiaries, the Group) and its subsidiary underlying operations of the SkyCity Group – the companies’ performance for the financial year ended intention being to provide information which is 30 June 2021. Where appropriate, information is also representative of SkyCity’s underlying performance provided in relation to activities that have occurred (as a potential indicator of future performance), after 30 June 2021, but prior to publication of this can be compared across years and can assist annual report. with comparison between publicly listed casino companies in New Zealand and Australia. This annual report has been prepared in accordance with the NZX Listing Rules and Corporate This objective is achieved by: Governance Code, the New Zealand Companies • eliminating the inherent volatility (or 'luck' factor) Act 1993 and the New Zealand Financial Markets from International Business, which has variable Conduct Act 2013 and, although SkyCity is turnover and actual win percentage period not required to comply with ASX Listing Rule to period; 4.10 (which requires entities to include certain prescribed information in their annual reports) • eliminating structural differences in the business as it has a ‘Foreign Exempt Listing’ status on ASX between periods; and Limited, substantially reflects the ASX Listing Rules • eliminating known different treatments with and the Corporate Governance Principles and other New Zealand and Australian publicly listed Recommendations (Fourth Edition) of the ASX casino companies. Corporate Governance Council. Normalised numbers are a non-GAAP financial This annual report has also been prepared with measure. A reconciliation of reported and due consideration of the International Integrated normalised earnings and a description of the Reporting Council’s International Integrated differences are provided on pages 219 – 222 of this Reporting Framework. Integrated reporting annual report. applies principles and concepts that are focused on bringing greater cohesion and efficiency to An electronic copy of this annual report is available the reporting process and adopting ‘integrated in the Investor Centre section of the company’s thinking’ as a way of breaking down internal silos website at www.skycityentertainmentgroup.com. and reducing duplication. If you have any feedback and questions in The non-financial information in this annual relation to SkyCity’s sustainability framework report has been informed by the principles and and/or reporting, please contact SkyCity at disclosures of the Global Reporting Initiative’s (GRI) [email protected]. Sustainability Reporting Standards. Ernst & Young Unless otherwise stated, all dollar amounts in this has undertaken limited assurance (in accordance annual report are expressed in New Zealand dollars. with the International Standard on Assurance Certain totals, subtotals and percentages stated in Engagements (New Zealand)) over disclosures this annual report may not agree throughout due associated with selected performance data to rounding. included in the Sustainability section included in this annual report. A GRI reference index based This annual report is dated 25 August 2021 and is on the GRI Sustainability Reporting Standards is signed on behalf of the SkyCity Board by: included on pages 223 – 226 of this annual report. The iconic Sky Tower The financial statements have been prepared celebrated its 24th birthday in accordance with the International Financial on 2 August 2021 with a Reporting Standards. This annual report Rob Campbell Jennifer Owen light show illuminating includes both reported and normalised financial Chair of the Chair of the Audit the Auckland skyline. information. Our objective in providing normalised SkyCity Board and Risk Committee

9 • SkyCity redeems 125 million • Flare bar and Food Republic

Year in • SkyCity completes a • SkyCity Auckland’s casino ‘Series 2015’ corporate bonds GENERAL (a new food court) open on $50 million share purchase and entertainment facilities at $1.0280 per bond the SkyCity Auckland main plan as part of a $230 million closed from 12 – 30 August • A new VIP gaming offering, gaming floor equity raising announced in response to the COVID-19 VIP BLACK and Ultra, opens in June 2020 to strengthen Alert Level in Auckland • SkyCity confirmed as the Review at SkyCity Auckland as part SkyCity’s balance sheet in increasing to Alert Level 3 official accommodation and of a $50 million upgrade of response to uncertainty around hospitality partner of the 2020 SkyCity Auckland’s gaming the impacts of COVID-19 Aotearoa Music Awards facilities

2020 JULY AUGUST SEPTEMBER OCTOBER

• The A$330 million SkyCity Adelaide expansion • Michael Ahearne appointed • SkyCity welcomes in the project officially opens as Chief Executive Officer, New Year with a fireworks (completed on-time and replacing outgoing display from the top of on-budget), including the Chief Executive Officer the Sky Tower involving new 120-room luxury hotel Graeme Stephens 500 kilograms of Eos by SkyCity pyrotechnics, 3,800 effects, • The All Blacks Experience • SkyCity Adelaide closed 1.6 tonnes of equipment and Weta Workshop from 19 – 22 November in and 14 kilometres of Unleashed attractions open response to state-wide computer control cabling at SkyCity Auckland COVID-19 restrictions

2021 JANUARY DECEMBER NOVEMBER

• Julie Amey appointed as Chief Financial Officer, replacing outgoing Chief Financial Officer Rob Hamilton

• SkyCity Auckland’s casino • SkyCity issues $175 million • Silvana Schenone, Julian Cook and entertainment facilities • S&P Global Ratings revises the of six-year, unsecured, and Chad Barton appointed closed from 14 – 17 February outlook for SkyCity's long term unsubordinated, fixed rate as non-executive directors of and 28 February – 6 March issuer credit rating and its debt bonds maturing on 21 May 2027 SkyCity Entertainment Group in response to the COVID-19 issue rating from 'Negative' to • Free sanitary products made Alert Level in Auckland 'Stable' and affirms SkyCity's • SkyCity informed by available in all female and increasing to Alert Level 3 long term issuer credit rating AUSTRAC of potential AML gender-neutral employee and its debt issue ratings non-compliance by • SkyCity Auckland celebrates bathrooms across SkyCity’s as BBB- SkyCity Adelaide its 25 year anniversary New Zealand properties

FEBRUARY APRIL MAY JUNE

11 We developed and implemented a

 COVID-19 Health GENERAL Managing the Management Framework and Operating Plan Impacts of COVID-19 for our business and operations.

The global COVID-19 pandemic has continued These collective measures have meant that SkyCity SkyCity’s New Zealand properties were amongst to significantly impact SkyCity’s business and has been well positioned to deal with the events of the first casino operations in the world to reopen operations at each of its properties over the last the last financial year and quickly respond when (at COVID-19 Alert Level 2) during the global financial year. Government mandated lockdowns our properties have been permitted to reopen. pandemic with robust health in New Zealand and South Australia resulted in Pleasingly, our core domestic gaming business has management strategies in place. the closure of the SkyCity Auckland casino and proved resilient. However, the ongoing health and entertainment facilities for a total of 29 days over safety risks of COVID-19 have significantly altered the period and the SkyCity Adelaide property for a the commercial landscape for SkyCity's land-based total of 3.5 days over the period. properties in both New Zealand and South Australia.

The SkyCity Wharf property has remained Fortunately, development work on the closed in Queenstown since initially closing on A$330 million SkyCity Adelaide expansion project 23 March 2020 (just prior to the initial COVID-19 and associated master planning projects, the lockdown in New Zealand) as the ongoing border New Zealand International Convention Centre and restrictions continue to have a detrimental effect on Horizon Hotel projects and the $50 million upgrade the local Queenstown economy in particular, which of the SkyCity Auckland gaming facilities was We introduced a new is largely dependent on tourism. able to continue over the period. The completed SkyCity Adelaide expansion project, including When permitted to reopen, our properties have Eos by SkyCity – a new 120-room luxury hotel, SkyCity Flex initially operated with significant operational was officially opened in December 2020. framework for our employees constraints due to restrictions on mass gatherings to enable flexible working and and physical distancing requirements. Significant SkyCity Online Casino, SkyCity’s offshore online We refocused SkyCity restructured our New Zealand operational effort has been required to rapidly close casino platform based in Malta, continued to trade as a smaller, workforce (downsizing it and reopen our properties with rigorous health and over the period without interruption and saw strong by around 25%). safety measures in place. growth in its customer base during lockdown domestically periods in New Zealand. Fortunately, due to the significant efforts of the focused business SkyCity team and the strength of our business SkyCity’s continuing focus is on managing the post and adjusted our operating model to continuity framework, SkyCity has been able to COVID-19 recovery and operating sustainability as reflect the new COVID-19 operating quickly and successfully respond to the ongoing a smaller, domestically focused business pending environment, including minimising challenges that the COVID-19 pandemic has the gradual recovery of international visitors as our operating costs, reducing presented and manage the impacts to SkyCity’s international borders reopen. operating hours across our business and operations. precincts and significantly reducing capital expenditure.

Impact of COVID-19 – FY21 vs FY19 Performance

We executed a $230 million equity raising in mid-2020 as part of a comprehensive funding plan to strengthen SkyCity’s We were assisted by the balance sheet in response to uncertainty around the New Zealand and Australian impacts of COVID-19 and secured the support Governments in the form of of existing lenders by way of covenant waivers/relief, extensions to $170 million of upcoming debt maturities and $160 million in Wage additional debt facilities. Subsidy International Auckland hotel Sky Tower In May 2021, we also issued $175 million of six-year, and JobKeeper payments visitation down occupancy down visitation down unsecured, unsubordinated, fixed rate bonds to (which SkyCity has subsequently institutional investors and New Zealand retail determined to partially refund). investors, the proceeds of which were used 95% 38% 71% to reduce the SkyCity Group's drawings on its bank facilities.

12 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 13 GENERAL

Impacts of COVID-19 Alert Level Changes Alert Levels The New Zealand Government introduced a four-tiered COVID-19 Alert System in March 2020 to manage and minimise the risk of COVID-19 in New Zealand and to help people understand the current level of risk and corresponding legal restrictions. The following table shows the impacts of the various COVID-19 Alert LEVEL Levels on SkyCity’s New Zealand properties. Full closure (excluding the SkyCity Auckland hotels) ALERT LEVEL 4

EFFECTIVE DATE OF AUCKLAND HAMILTON QUEENSTOWN CHANGE IN ALERT LEVEL LEVEL Full closure (excluding the SkyCity Auckland hotels), but construction work permissible 28 February 2020 First COVID-19 case reported in New Zealand 3 New Zealand border closed to all but New Zealand citizens and 19 March 2020 permanent residents LEVEL Open with significant operational constraints due 21 March 2020 Alert Level system introduced to restrictions on mass gatherings and physical 2/2.5 distancing requirements 21 March 2020 2 2 2

1.30pm, 23 March 2020 3 3 3 LEVEL Open with no restrictions on 11.59pm, 25 March 2020 4 4 4 mass gatherings or physical 1 distancing requirements 11.59pm, 27 April 2020 3 3 3

11.59pm, 13 May 2020 2 2 2 In Adelaide, COVID-19 restrictions have been implemented as required by the South Australian Government in response to the level of risk at the relevant times and businesses are required to have a COVID 11.59pm, 8 June 2020 1 1 1 Management Plan, approved by SA Health (the South Australian Government), and/or a COVID-Safe Plan in place outlining how high-risk activities will be managed to reduce the risk of transmission of 12.00pm, 12 August 2020 3 2 2 COVID-19 between patrons/attendees and staff. An approved COVID Management Plan is in place for the SkyCity Adelaide property. 11.59pm, 30 August 2020 2.5 2 2

11.59pm, 21 September 2020 2.5 1 1

11.59pm, 23 September 2020 2 1 1

11.59pm, 7 October 2020 1 1 1 To comply with physical distancing requirements, each move from Alert 1 Auckland CBD 13 November 2020 1 1 closed to Alert 2 (and vice versa) in Auckland

11.59pm, 14 February 2021 3 2 2 has required the construction (and deconstruction) of 11 separate zones 11.59pm, 17 February 2021 2 1 1 within the main casino floor and involved: 11.59pm, 22 February 2021 1 1 1 • moving approximately 400 6.00am, 28 February 2021 3 2 2 electronic gaming machines and 6.00am, 7 March 2021 2 1 1 370 hoarding panels

12.00pm, 12 March 2021 1 1 1 • 15 dedicated staff members over two days

14 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 15 Creating Value GENERAL

(as at 30 June 2021) FY21 Outputs and Financial Results Our Business FY21 revenue and annual visitation

GAMING HOTELS GAMING HOTELS CONTRIBUTIONS

$ $ 585.4million 112.1million including online in taxes to Governments land-based 5casino licences hotel755 rooms (reported) $ (including GST, gaming tax 29.5million and income tax) HOSPITALITY 4,259staff $666.1 million* $ including online 278.7million (normalised) 142,067 in remuneration rooms coccupied and benefits tostaff 309 18 table games restaurants 1.9 $ million 53.2million visits from loyalty card in dividends declared for members to our shareholders (in relation land-based casinos** to the FY21 period) properties5 across New Zealand and Australia SKY TOWER $ 12.3million in community contributions, automated331 table games 15bars HOSPITALITY levies and sponsorships SKY TOWER $ $ 293.8million million7.3 $ to suppliers 77.9million $177.5 online1 casino electronic3,456 gaming machines 328metres tall million of capital invested 3.4 166,096visits million FY21 REVENUE BY BUSINESS ACTIVITY restaurant/bar covers $38.7 Reported Normalised million in interest paid to lenders % % Local Gaming 75% 77% International Gaming 2% 3%

Online Gaming 2% 2% *Includes gaming GST. **Calculated by reference to customers who used their SkyCity Premier Rewards cards to game, where one visit records Hotels and Conventions 5% 4% a customer's patronage on a day irrespective of how many times they used their card on that day. Food and Beverage 10% 9% Other 6% 5%

17 Our sustainability vision recognises that, to be a sustainable business, we must be GENERAL a responsible business actively protecting and promoting the people we serve and FY21 Outcomes and Impacts the places we share, whilst creating value for our shareholders. SkyCity’s sustainability initiatives are therefore focused on doing good for our customers, our people, our communities, our suppliers, our environment and our shareholders.

OUR CUSTOMERS OUR PEOPLE OUR COMMUNITIES OUR SUPPLIERS OUR ENVIRONMENT OUR SHAREHOLDERS

Implemented ‘Phase 2’ of Provided increased support Since establishing the Refined our sourcing Achieved carbon zero facial recognition technology for employee mental health first SkyCity Auckland strategy by developing status for the SkyCity Group at the SkyCity Auckland and and wellbeing as employees Community Trust in 1996, clear definitions for what for FY21 by way of offset 7 cents SkyCity Hamilton casinos cope with the challenges and SkyCity has awarded constitutes “local” in the through Toitū Envirocare. dividend per share to enable SkyCity to better uncertainty that has been a nearly 5,000 grants context of our supplier and (fully imputed) declared identify customers who feature of the past year with totalling over $61.7 million product classifications. in relation to FY21 remain within the casino for the impact of COVID-19. to various community FY20 – 10 cents per share extended periods of time. groups and organisations in New Zealand, large and Over 16,750 tonnes CO2e small, through the four total carbon footprint Eligible shareholders SkyCity Community Trusts. million FY20 – 15,137 tonnes CO2e $ in New Zealand and paid426 to suppliers of goods 133 80% Australia were invited to additional cameras of our employees and services during installed within our casino participate in a participated in our biennial FY21 (including capital properties for Phase 2 of Speak Up employee $ million 4.1 expenditure) facial recognition in FY21 paid to the SkyCity 43.4% engagement survey reduction FY20 – over $530 million million with an engagement score Community Trusts in waste sent by SkyCity to $50 of 85% favourable achieved FY20 – $3.7 million Around landfill since 2015 share purchase plan – with 21,008,403 new ordinary

1,373 shares issued in July 2020 customers $ million tonnes at $2.38 per share, a 2.5% identified within our casino 39.2 key600 ongoing ZERO paid in gaming taxes and 148of food waste from our discount to the five-day properties in breach of their fatalities or life altering significant suppliers problem gaming levies SkyCity Auckland kitchens volume weighted average exclusion orders during FY21 injuries across the SkyCity Group FY20 – $33.1 million sent to be commercially price of SkyCity’s shares FY20 – 1,757 FY20 – around 800 composted to aid the traded on the NZX during Over New Zealand horticulture the last five days of the FREE industry offer period sanitary products provided active suppliers 1,077 $ million FY20 – 292 tonnes exclusion orders to all employees – with the 71had completed an EcoVadis raised2.2 for Leukaemia and issued across our casino initial pilot phase rolled out assessment/audit process as Blood Cancer New Zealand properties during FY21 in New Zealand in May 2021 at 30 June 2021 in two Firefighter Sky Tower FY20 – 982 and in Adelaide in July 2021 FY20 – 79 active suppliers Stair Challenges

18 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 Creating Value 19 Our Performance History GENERAL Performance Group Revenue 1,119 1,125 1,200 1,101 1,029 952 FY21 Highlights 1,000 878 816 822 822 SkyCity’s result for the financial year ended 30 June 2021 was significantly impacted by the New Zealand 780 800 International Convention Centre fire and COVID-19 pandemic (as was the case in the financial year

ended 30 June 2020), with normalised EBITDA and NPAT for the Group for the period to 30 June 2021 600

negatively impacted. $ million 400 The key features of the FY21 result are: Reported 200 Normalised 0 (Including gaming GST) EBITDA NPAT FY17 FY18 FY19 FY20 FY21

Reported Reported Group EBITDA 338 343 348 350 320 317 310 307 298

300 $ million $ million 252 317.3 156.1 250 FY20 – $348.3 million FY20 – $235.4 million 201

200

$ million 150 Normalised Normalised

100

50 Reported million million $ $ Normalised 0.0 252.0 90.3 FY17 FY18 FY19 FY20 FY21 FY20 – $200.7 million FY20 – $66.3 million

Earnings Per Share (EPS) and Dividend Per Share (DPS) 35.4 35.0

30.0 25.4 25.3 25.6 23.4 25.0 21.4 DIVIDEND BONDS 20.0 20.0 20.0 20.6 FY21 dividend* (fully imputed) of 20.0

15.0 11.9 10.0 10.0

Cents per share Cents 10.0 7.0 cents per share $ million 6.8 Reported EPS Normalised EPS 5.0 to7 be paid during September 2021 of six-year,175 unsecured, unsubordinated, Declared DPS fixed rate bonds issued in May 2021 0.0 FY20 – 10 cents per share FY17 FY18 FY19 FY20 FY21

Enterprise Value

3,196 3,500 3,258 3,072 3,036

3,000 447 349 590 488 2,308 2,500

541 2,000

$ million 1,500 2,723 2,749 2,668 2,548 1,000 1,767 *An interim dividend was not declared for FY21 due to restrictions in the covenant waivers/relief secured as part of a funding plan 500 Equity Value announced by the company in June 2020. Net Debt 0.0 FY17 FY18 FY19 FY20 FY21

20 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 21 An Award-Winning GENERAL Winning Teams Business • Winner of the Best Social Responsibility category at the 2020 CBD Celebration Awards, recognising SkyCity Hamilton’s commitment to community, customers, diversity and sustainability

• Awarded the Excellence in Treasury Award and named a finalist in the Market Leaders Best Investor SkyCity’s vision is to be the leader in gaming, entertainment and hospitality in Relations Award at the 2021 INFINZ Awards our communities. • Awarded an Excellence Award in the In-House Lawyer of the Year category and the In-House Team of the As a major employer with more than 4,200 staff across our properties in Year category at the 2020 New Zealand Law Awards New Zealand and Adelaide, South Australia, we play a significant role in our • Awarded a Gold Award in the 2021 Australian Reporting Awards General Award, and a Silver Award in the communities and are immensely proud of the contribution we make to the 2021 Australian Reporting Awards Sustainability Reporting Awards, for the 2020 SkyCity Annual Report communities we operate in, and our staff continue to do us proud, year-on-year. • Finalist in the 2020 New Zealand Events Awards in the Best Not-for-Profit or Cause-related Event category (for the Firefighter Sky Tower Stair Challenge), Best Event Sponsorship category (for Vertical Winning Employment Opportunities Pursuit) and Best Music or Entertainment Event category (for New Year's Eve) • Winner of the Diversity and Inclusion Leadership Award at the 2020 Deloitte Top 200 Awards and the Diversity and Inclusion Award at the 2021 NZ HR Awards for Project Nikau, SkyCity’s pathway to employment programme for vulnerable young people targeting Māori and Pasifika

• SkyCity Hamilton was awarded a Workbridge ‘Above and Beyond Employer Award’ in 2020 which recognises employers who are committed to creating a more inclusive workplace by supporting workers with disabilities Winning Partnerships Winning Experiences Over the last financial • The Grand by SkyCity named Oceania's Leading Business Hotel at the 27th World Travel Awards year, we were proud to • 2021 Tripadvisor Travellers' Choice Award for the SkyCity Hotel, The Grand by SkyCity, MASU, The Grill, sponsor and partner Orbit, Depot and Huami with great organisations in our communities: • 2020 Tripadvisor Travellers' Choice Award for the Sky Tower, The Sugar Club, MASU, The Grill, Orbit, Gusto and Depot

• MASU, Depot and Huami named in Viva’s ‘Top 50’ restaurants in Auckland for 2021

• MASU and Huami named in Metro Magazine’s ‘Top 50’ bars in Auckland for 2021

• MASU, Depot, Huami and Fed Deli named in the 2021 Denizen Hospo Heroes

• The Sugar Club named in Zufolo’s ‘Top 50’ Auckland restaurants for 2020-2021

• Fed Deli named ‘Best under $50’ in Remix Magazine’s 2021 Lifestyle Awards

Tripadvisor gives a Travellers’ Choice Award to accommodation, attractions and restaurants that consistently earn great reviews from travellers and are ranked within the top 10% of properties on Tripadvisor

22 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 23 PLEDGING SUPPORT TO THE 40:40 VISION

Although women make up around half of SkyCity’s workforce, female representation remains GENERAL challenging at higher levels of the organisation, particularly in senior leadership roles. Diversity Snapshot In May 2021, SkyCity signed up to the 40:40 Vision, pledging a commitment to achieve gender balance across its executive leadership by 2023. 40:40 Vision is an investor and business-led initiative to achieve At SkyCity, we employ a diverse range of people at all skill levels and aim to create an 40% women, 40% men and 20% any gender across the executive leadership teams of all ASX200 environment where people are at the centre, are motivated to work hard, progress in companies by 2030. See page 95 of this annual report for the gender composition of SkyCity’s directors, officers, senior their careers and are empowered to grow and achieve. executives and total workforce as at 30 June 2021. The following graphic shows the diverse make up of SkyCity’s workforce as at 30 June 2021 and, where relevant, as a comparison against our workforce numbers as at 30 June 2020.

OUR TOP 10 ETHNICITIES STAFF IDENTIFY WITH % 4,259 15% 14% 14% 8% 7% STAFF (full-time, part-time 62 34 of our workforce are YEARS – average age and casual) 36 years old and under of our workforce

FY20 – 3,817 FY20 – 58% FY20 – 36 years Chinese Australian New Zealander Indian Filipino

FY20 – 17% FY20 – 11% FY20 – 15% FY20 – 11% FY20 – 6%

% % 76 1 37 7% 6% 4% 4% 4% YEARS – age of our identify as having of leadership roles oldest staff member a disability held by women

FY20 – 79 years FY20 – 1% FY20 – 39% Other South East Other Asian Māori Asian Samoan European

FY20 – 7% FY20 – 8% FY20 – 1% FY20 – 3% FY20 – 6%

Given as a percentage of those staff members who provided details about their ethnicity and those who elected “prefer not to say”. % % % 49 51 0 % of total workforce of total workforce of total workforce are women are men are gender diverse 6 61 identify as being a member languages spoken FY20 – 48% FY20 – 51% FY20 – 1% of the LGBTTI+ community and/or written by staff

FY20 – 6% FY20 – 57

AGE BREAKDOWN Mandarin 24.4% 37.8% 28.3% 9.5% 0% Tagalog (Philippines) Hindi our top 3 non-English languages Generation Z Millennials Generation X Baby Boomers Veterans (<23 years) (24–36 years) (37–53 years) (54–75 years) (76–93 years) FY20 – Mandarin, Tagalog, Hindi

FY20 – 19.2% FY20 – 38.4% FY20 – 31.4% FY20 – 10.9% FY20 – 0.1%

24 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 25 Group Strategy SkyCity continues to monitor andevaluate adjacent asthey opportunitiesinthecasino arise. industry successsecure ourfuture acrossvarious financial,socialandhuman capitals. omnichannel opportunity,whilst focusing onprotecting andenhancingoursociallicence to operate to focus onourcore business,executing ourmajorprojectsinAdelaide andAuckland anddelivering onthe in November 2020,SkyCity announced arefreshed Groupstrategy. Ourrefreshed strategy prioritisesa 2021, followingIn February theappointmentof MichaelAhearneasthenew Chief Executive Officer A Refreshed GroupStrategy Operational excellenceOperational Culture of protecting andenhancingsociallicence – responsiblegaming, Capital allocation allocation Capital framework at our core our at anti-money laundering,community, sustainabilityandpeople

Key Strategic Pillars Financial Strategy Complete major projects projects major Complete and optimise portfolio optimise and settings Key financial (core focus) credit rating, etc) rating, credit (dividends, Pursue the omnichannel omnichannel the Pursue shareholder returnshareholder Sustainable total total Sustainable opportunity growth

27

GENERAL 28 strong local gamingactivity(particularlyelectronic performances for year thefull underpinnedby SkyCity Queenstown delivered strongEBITDA and hence value. BothSkyCity Hamilton and pleasing given itsimportance to Groupearnings businesses, particularlyinNew Zealand,hasbeen The resilientperformance of ourlocal gaming levels atallpropertiesonalike-for-like basis. operating marginsupcompared to preCOVID-19 are delivering acrosstheGroup,with efficiencies to COVID-19 andanongoingfocus oncost control Changes to SkyCity’s operating modelinresponse revenue significantly down acrossallproperties. with marketing expenditure asapercentage of cost-effective tool to drive higherqualityvisitation on tactical marketing andloyalty activations asa to travel internationally. SkyCity continues to focus customers continue to have limited opportunities in New ZealandandSouthAustralia aslocal have benefitted fromincreaseddomestic tourism assets to drive gamingvisitationandourproperties SkyCity continues to leverage itscomplementary project fromDecember 2020. Adelaide posttheopeningof thenew expansion opening of new premiumgamingroomsandin across theGroup,particularlyinAuckland withthe the gamingfloorlayout continue to berealised product, productmanagementandchangesto The benefits of ourinvestment innew gaming and international environment. model to effectively manageanuncertain domestic to leverage amoreflexible andresilientoperating COVID-19 pandemic.Pleasingly,we have beenable face significant challenges fromtheimpact of the During thepastfinancial year, SkyCity continued to Operational Excellence atourCore Business Goals FY21 Performance –Our and ourprioritiesfor theyear ahead. value duringthefinancial year ended30June2021 performance andstrategic positioningto create This of SkyCity’s sectionprovides asummary SkyCity Entertainment Group AnnualReportYear Ended30June2021 gaming product. main floorandpremium)a30%increasein casino podium,contemporary gamingspaces (both and entertainment facilities withamulti-level expansion delivers significantly expanded gaming the ongoinginternational borderclosures.The initially onlocal andinterstate customers given reflecting customer demand -withthe focus a stagedmannerfromearlyDecember 2020, new food andbeverage venues were openedin hotel) andamajorityof the 120-room luxury The new gamingspaces, Eosby SkyCity (thenew for customers. building andimprove thelayout andexperience historic Railway Stationbuildingto restore the planning works attheexisting propertywithinthe December 2020andincludedsignificant master project was delivered on-timeandon-budgetin The A$330millionSkyCity Adelaide expansion Adelaide ExpansionProject financial year. to optimiseourexisting portfolio over thelast We have progressedanumberof key initiatives Complete MajorProjectsandOptimisePortfolio anddata analytics. relationship management(CRM) experience, centred aroundloyalty, customer focusing oninitiatives to improve customer investment andenhancingourdigitalcapability, We continue to make goodprogressonourICT around 20%. has seenpropertymarginsaheadof expectations at proving popularwithcustomers. Goodcost execution share around9%)andnew non-gamingfacilities customers (withelectronicgamingmachinemarket local gamingactivity,particularlyfrompremium the expansion projecthasbeenconsistent withstrong Performance atSkyCity Adelaide posttheopeningof during weekend andholiday peaks. consistently above preCOVID-19 levels, particularly local gamingactivityatSkyCity Auckland was When operating atAlertLevel 1inNew Zealand, gaming machines)andgoodcost execution. reinstatement costs) stillremainedto bespent. around $120millionof projectcosts (excluding fire (of around$750 million).Asat20August 2021, to previous guidance for thetotal projectcosts and accordingly thereisnomaterial change be covered by insurance orFletcher Construction cost to reinstate the NZICC andHorizon Hotel to As previously reported, we stillexpect thetotal with theNew ZealandGovernment. date to complete theNZICC (to 15December 2027) July 2021,we securedanextension to thelongstop responding to the damage caused by the fire and, in is requiredto complete theproject,insurance is our contractual position–Fletcher Construction project timetable,we remaincomfortable with Despite theimpactof thefireand COVID-19 onthe late 2024. of theHorizon Hotel during2024andtheNZICC in Fletcher Construction now indicates completion The latest draft construction programme from currently onsite), butslower thanexpected. (with over 300Fletcher Construction personnel Reinstatement works postthefireareprogressing significantresulting infurther projectdelays. NZICC andHorizon Hotel projectmorecomplex, and theCOVID-19 pandemichave madethe The fireattheNZICC site duringOctober 2019 Horizon Hotel Project New ZealandInternational Convention Centre and over earningsuplift meaningful themedium-term. when openandSkyCity continues to expect a Trading atSkyCity Adelaide hasbeenconsistent SkyCity Adelaide. by venues withina50kilometreradius of electronic gamingmachinerevenue was generated Adelaide –in2019,aroundA$500millionof offered by suburbanvenues inmetropolitan to theprecinctandto addresstheconvenience Plaza car parkwillbeakey assetto drive visitation park spaces for SkyCity’s exclusive use.The Festival precinct and,inJune2021,handedover 750car the Festival Plaza adjacent to theSkyCity Adelaide 1,500-space car parkaspartof itsredevelopment of Walker Corporation hasnow completed a multi-protocol gamingsystem. (TITO) onthemaingamingflooranda functionality use of banknote acceptors, ticket-in ticket-out time for theexpansion opening,permittingthe reformsNew were regulatory implemented in “Stable” from“Negative” OutlookduringApril2021. from S&PGlobalRatingswhichwas upgraded to SkyCity remainscommitted to itsBBB-creditrating waivers/relief securedduring2020. being suspendedwhilstinreliance oncovenant share duringSeptember 2021,following dividends period andwillpay adividendof 7cents per its financial covenants for the30June2021 testing COVID-19further disruptions.SkyCity has satisfied New ZealandandAustralia, events one-off and/or commitments, andwithstandslower recovery in strategic plan.We have significant liquidity fund to a strongpositionto deliver onourmediumterm planinmid-2020,thebalancefunding sheetisin discipline and,following implementationof our SkyCity remainsfocused oneffective capital relevance to theAuckland precinct. experiences andwillhelpto ensurethelongterm attractions provide unique,interactive customer Weta Workshop Unleashed.These two world-class became hometo theAllBlacks Experience and the former SkyCity Auckland Convention Centre launching theSkyCity OnlineCasino,inlate 2020 to new forms of entertainment. Inadditionto SkyCity ischallengedto stay relevant inrelation As anentertainment andhospitalityprovider, in Auckland. and expansion of ourpremiumgamingfacilities during theperiod,includingamajorrefurbishment A range of smallergrowth projectswere completed border closures. remains closeddueto ongoinginternational strong domestictourism whilstthe WharfCasino on optimisingSkyCity Queenstown andleveraging continue to beevaluated, butwiththecurrentfocus Future optionsfor ourtwo Queenstown properties embedded in our Auckland and Hamilton precincts. Significant long term option value remains Other Projects to 2048. extension of theAuckland casino venue licence out precinct, inadditionto having securedthe be asignificant demanddriver for our Auckland growth intourism expenditure inNew Zealandand regrettable, theNZICC willsupportlongterm delaysWhilst thefurther ontheprojectare Group Strategy 29

GENERAL GENERAL

Pursue the Omnichannel Opportunity Steady progress has also been made to enhance SkyCity’s host responsibility and AML SkyCity has continued to optimise the SkyCity control frameworks. Online Casino with Gaming Innovation Group Inc (GiG) despite operational constraints. Performance Minimising harm to customers remains a key of the offshore online casino has exceeded our focus with appropriate effort, resource and capital Bowl and Social at expectations with significant growth in revenue and allocated to support this initiative, such as increased SkyCity Hamilton EBITDA and in excess of 45,000 active customers. resourcing and investment in bespoke ICT systems GiG continues to provide SkyCity with a full-suite (including facial recognition technology and online casino solution, which includes a technical specialised customer screening tools). SkyCity platform, gaming content, managed services and is committed to ensuring that it provides safe front-end development. and responsible experiences and environments and places significant importance on its host SkyCity remains supportive of future regulation of responsibility and AML obligations. We continue online gaming in New Zealand with an emphasis on to deliver on our health and safety strategy, which strong host responsibility and delivering community is centred around preventing harm and building benefits and we continue to prepare for a regulated wellness, particularly in response to the risks posed industry to deliver on the omnichannel opportunity by COVID-19 in our communities. for the Group. Growth in online gambling continues to be a significant global industry theme with SkyCity has continued to create and support a numerous international jurisdictions regulating positive employee culture over the period, focusing online gambling (or intending to do so) to on initiatives to enhance workplace flexibility, address the transition from physical to online wellbeing and diversity. To this end, SkyCity was entertainment, which has been exacerbated by the pleased to be awarded the Diversity and Inclusion impact of COVID-19. Leadership Award at the 2020 Deloitte Top 200 Awards for the second time in three years for Following a public consultation which commenced Project Nikau, an initiative to employ and develop during 2019, the New Zealand Department of career pathways for youth with a focus on Māori Internal Affairs continues to develop a policy and Pasifika. SkyCity has also made progress framework for potential regulation. Regulation of on refocusing the SkyCity Community Trusts in the New Zealand online gaming market would New Zealand on initiatives that will enhance the enable SkyCity to pursue the omnichannel employability, wellbeing and advancement of youth opportunity and address a fast-growing category and has upweighted strategies to ensure its supply which is highly complementary to our land-based chain is ethical (including the implementation of a activities whilst offering customers a varied gaming modern slavery statement, approved by the Board experience (both physical and digital). in October 2020) and supports local businesses. FY21 Performance – Our Character We continue to meaningfully reduce our gender pay gap across the New Zealand businesses and thefinal and Culture Goals instalment of our ‘$20 by 2020’ wage initiative was Culture of Protecting and Enhancing our implemented in New Zealand at the end of 2020. Social Licence We remain proud of, and rely on, our culture of At SkyCity, we need to continually focus on compliance, which encourages people to focus protecting and enhancing our social licence to on doing the right thing by themselves, their operate. A feature of the past financial year has teammates, the company and stakeholders. To been the steady progress made with the many ensure our future success across various financial, initiatives under SkyCity’s ESG/sustainability social and human capitals, it is important to framework. continue conducting the business holistically within the terms of our ESG/sustainability framework.

30 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 31 32 SkyCity Entertainment Group AnnualReportYear Ended30June2021 opportunity omnichannel Pursue the core excellence atour Operational Our BusinessGoals optimise portfolio projects and Complete major • • • • • • • • • • • • • • • • • FY22 Priorities

Explore new product verticals, suchasBingoandPoker preparedness Resource theonlinebusinessandprogresswithpre-regulationplanning Continue to venture optimiseouroffshore (SkyCity OnlineCasino)withGiG Progress theopportunityfor aregulated onlinecasino market inNew Zealand Workshop Unleashed)inAuckland Support thenew entertainment attractions (AllBlacks Experience andWeta Deliver assetmaintenance plan particularly inAuckland Explore leasingand/orsaleopportunitiesfor non-operational propertyassets, Develop andrefine thelong term master plans for eachproperty around $750millionandconsistent withtherevised timetable Deliver theNZICC andHorizon Hotel projectinlinewithmarket guidance of Complete assetreview anddevelop holisticpropertystrategy Ongoing review andassessmentof potential licence renewal and/orrelocation layout andtechnology Ongoing review andappraisal of gamingflooroptimisation,including product, Optimise theSkyCity Adelaide expansion andintegration of thenew assets experience management(CXM) Improve loyalty andmarketing execution withanincreasedfocus oncustomer Continue to pursueoperating and efficiencies cost savings machines Continue growth inthelocal gamingbusiness,particularlyelectronic gaming operating modelto respondto theoperating environment Continue to managetheCOVID-19 recovery, includingmaintainingaflexible in Queenstown andHamilton

laundering and anti-money gaming leadership Responsible Culture Goals Our Character and sustainability Community and • • • • • • • • • • • • • • • • • • FY22 Priorities

Implement initiatives to reduce waste to landfilland water usage SkyCity'sMeasure, reportandoffset carbon footprint working inareasimpacted by theserisks Increase awareness of modernslavery risks and mitigationsfor employees Maintain labourstandardscommensurate withanemployer of choice Refine oursustainablesourcingstrategy for oursupplychain Implement the'SkyCity SustainableWage' inNew Zealand programme Deliver employment opportunitiesfor youth through ourProjectNikau Ongoing improvements ingenderand ethnicpay equality Ongoing reductionof employee turnover Increase understandingof/participation inflexibility at work programme Deliver ongenderandethnicitydiversity targetsinleadership/talentpipeline Ongoing improvements inhealth,safety andwellbeing strategies resilience,Focus onbuildingstaff morale andmotivation Promote awareness of SkyCity’s anti-money laundering,know your customer Finalise longplay detection trialsandimplementtechnology andenhance Deliver bestpractice hostresponsibilitystandardsacrossallproperties Deliver bestpractice anti-money launderingstandardsacrossallproperties Respond to theAUSTRAC enforcement investigation into SkyCity Adelaide facial recognition systems and hostresponsibilityobligations,training andeducation amongststaff Group Strategy

33

GENERAL About SkyCity GENERAL SkyCity is New Zealand’s largest tourism, leisure and entertainment company and is dual listed on the New Zealand and Australian stock exchanges. As one of three major publicly listed casino operators in Australasia, SkyCity PROPERTIES ONLINE HOTELS operates integrated entertainment complexes in New Zealand (in Auckland, across New Zealand Hamilton and Queenstown) and in Adelaide, South Australia – each featuring 5 CASINO and Australia 1 3 casino gaming facilities and premium restaurants and bars, which appeal to both domestic and international visitors alike. SkyCity also offers premium hotel accommodation in Auckland and Adelaide. SkyCity Auckland In addition to its land-based casino operations, SkyCity Online Casino (based out and Group of Malta) offers New Zealanders an exciting online gaming experience. SkyCity Online Casino Malta Head Office

SkyCity Hamilton OUR HISTORY AT A GLANCE SkyCity Adelaide

2019 SkyCity sells SkyCity SkyCity Darwin Queenstown SkyCity Online Casino and SkyCity launches offshore Wharf*

SkyCity sells long term concession (licence to

operate) over SkyCity *Wharf Casino has been Auckland car parks to closed since March 2020. Macquarie Principal Finance Group 1999 A significant fire breaks 2016 2005 SkyCity lists 2021 out at the New Zealand The first sod is turned 2012 SkyCity acquires 2002 on the 1997 1994 SkyCity Auckland International on the New Zealand SkyCity acquires full ownership SkyCity Australian Sky Tower Construction of the celebrates its Convention Centre International Convention full ownership of of SkyCity Hamilton stock opens in SkyCity Auckland 25th anniversary (under construction) Centre/Horizon Hotel site SkyCity Queenstown Hamilton opens exchange Auckland complex commences

2021 2020 2015 2010 2005 2000 1995 1994

2020 2018 2013 2004 2000 1998 1996 COVID-19 pandemic Construction SkyCity acquires SkyCity acquires SkyCity Harrah’s SkyCity opens its flagship temporarily closes all commences on the SkyCity Wharf SkyCity Darwin Queenstown management SkyCity Auckland complex SkyCity properties SkyCity Adelaide in Queenstown opens contract ends with Harrah’s Entertainment in New Zealand expansion project and SkyCity (now Caesars Entertainment), SkyCity and Adelaide, becomes a the largest casino acquires South Australia New Zealand- entertainment operator in the SkyCity managed United States, as the operator SkyCity Adelaide Adelaide operation expansion project SkyCity lists on the officially opens New Zealand stock exchange

34 35 GENERAL

Auckland

During the last financial year, SkyCity completed a FY21 PERFORMANCE Property SkyCity Auckland, New Zealand $50 million upgrade within the SkyCity Auckland SkyCity Auckland celebrated its 25-year anniversary Property Manager casino with the opening of Flare bar, Food Republic in February 2021 and delivered a satisfactory (a three-restaurant food court) and a new VIP BLACK performance for the full year period with earnings and Ultra gaming machine area that provides an up 4.9% compared to the prior comparable unrivalled VIP offering and experience to SkyCity’s period, despite operational constraints arising domestic VIP customers. Two new attractions also due to the impact of COVID-19. The property opened within the SkyCity Auckland precinct – was closed for 29 days during the period due the All Blacks Experience, a joint venture between to COVID-19 lockdowns in August 2020 and New Zealand Rugby and Ngāi Tahu Tourism that Callum Mallett, Chief Operating Officer New Zealand February/March 2021, and operated for 48.5 provides visitors with a state-of-the-art, interactive days under Alert Levels 2 and/or 2.5 restrictions Opened 1996 experience showcasing the All Blacks through during the period with limits on gatherings and the use of innovation and technology, and Weta Casino Venue Licence Runs until 2048* mandatory social distancing requirements which Workshop Unleashed, an immersive film effects significantly reduced capacity, particularly in the Facilities • Casino • Sky Tower workshop created by Academy Award-winning gaming business. • Hotels • Theatre design and effects company Weta Workshop. Local gaming performance remained resilient over • Food and beverage • Telecommunications and SkyCity is currently investing around $750 million the period and, when operating at Alert Level 1 (with broadcasting facilities within the SkyCity Auckland precinct to develop the • Entertainment no restrictions, except at the border), electronic New Zealand International Convention Centre, an • Car parking gaming machine activity was consistent with or adjacent laneway, over 1,250 additional car parking above pre COVID-19 levels, particularly during spaces, and Horizon Hotel – a new 300-room, 5-star Licensed Gaming Product • 1,877 electronic gaming machines** weekend and holiday peaks. The property continues hotel. This development was originally expected to • 150 table games** to benefit from new product and an improved floor be completed in 2019 – however, due to delays by layout, in addition to the new premium gaming • 240 automated table games*** the contractor, the significant fire that broke out rooms which have been well received by customers. at the New Zealand International Convention in Workforce ~2,500 staff October 2019 and the subsequent impacts of the Our tourism-related businesses in Auckland ^ FY21 Revenue $436.4 million (reported) COVID-19 pandemic, Horizon Hotel is now expected continue to be impacted by ongoing international $488.2 million (normalised) to be completed during 2024 and the New Zealand border closures, but performance improved International Convention Centre and adjacent progressively over the period and benefitted *The casino venue licence can be renewed for a further period of 15 years pursuant to sections 134–138 of the New Zealand Gambling Act 2003. **This allowance may be alternatively utilised to enable automated table game terminals. laneway are expected to be completed in late 2024. from ongoing strong domestic tourism across New Zealand as customers continue to have ***This allowance may be alternatively utilised to enable table games. When open, the New Zealand International ^Excludes New Zealand International Convention Centre fire income and liquidated damages received. limited options for international travel. Our hotels Convention Centre will be New Zealand’s premier remain profitable and continue to outperform the convention centre enabling New Zealand to attract SkyCity Auckland is the flagship property of the free-standing structure in the Southern competitor set, but RevPAR and earnings were major international conferences as well as having SkyCity Entertainment Group, featuring a casino, Hemisphere. Visitors can enjoy breathtaking well down on pre COVID-19 levels. Our food and capability for sporting events, theatre and musical two award-winning hotels – The Grand by SkyCity views right across Auckland from the observation beverage and attraction businesses were at broadly performances. The centre is designed to be a and SkyCity Hotel, bars and restaurants, a 700-seat decks or any of the three restaurants in the Sky break-even contribution. welcoming, open building complemented by a fresh theatre and the iconic Sky Tower. Located in the Tower, including Auckland’s only 360-degree new streetscape for local, national and international Pleasingly, operating margins at the property heart of Auckland’s CBD, the SkyCity Auckland revolving restaurant. At the very top of the visitors alike to enjoy. remained stable compared to the prior precinct occupies ~295,000sqm of gross floor Sky Tower, a 93-metre communications mast comparable period leveraging cost saving initiatives area across the majority of three city blocks accommodating VHF, UHF, AM and FM broadcasting implemented during 2020. (~3.5 hectares). and telecommunications antennas provides telecommunications and broadcasting facilities to Opened in 1997, the 328-metre tall Sky Tower the telecommunications industry. is an icon of Auckland’s skyline and the tallest

36 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 About SkyCity 37 GENERAL

Food Republic

Weta Workshop Unleashed

VIP BLACK All Blacks Experience Flare

38 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 About SkyCity 39 40 **This allowance may bealternatively utilisedto enableautomated tablegameterminals. Adelaide four additionalsignature restaurants. Aspectacular guests, two new bars(includingarooftop bar)and and conferencefunction facility for upto 650 VIPgamingfacilities,spa, pool,saunaandgym, hotel –Eosby SkyCity, wellness centre withaday new development includesa120-roomluxury Walter Brooke, andbuiltby HansenYuncken, the Buchan GroupinassociationwithHecker Guthrie integrated entertainment hub.Designedby The transforming SkyCity Adelaide into aworld-class million expansion projectattheAdelaide property, In December 2020,SkyCity completed aA$330 Centre andneartheAdelaide Oval. Adelaide Festival Centre andAdelaide Convention on theFestival Plaza forecourt adjacent to the Adelaide isSouthAustralia’s onlycasino destination building onthebanks of theTorrens River, SkyCity Located inandaroundthehistoric Railway Station * SkyCity Entertainment Group AnnualReportYear Ended30June2021 Adelaide Casinowithexclusive rightsto provide casino gaming(except for interactive gambling)inSouthAustralia until30June2035. The Approved Licensing Agreement between theMinister for andConsumers BusinessServices andSkyCity Adelaide PtyLimited provides FY21 Revenue Workforce Licensed GamingProduct Facilities Licensing Agreement Acquired Property Manager Property A$196.9 million(normalised) A$183.2 million(reported) ~1,350 staff David Christian,Chief Operating Officer Australia • 91automated tablegames(allowance for 300) • 118tablegames(allowance for 200)** • • Conventions • Entertainment • Foodandbeverage • Hotel • Casino Runs until2085* 2000 SkyCity Adelaide, Australia 1,080 electronicgamingmachines(allo  across thecasino. on themaingamingfloorand banknote acceptors introduced ticket-in ticket-out (TITO) technology Australia, inOctober 2020,SkyCity Adelaide broader review of gambling regulationinSouth As partof theSouthAustralian Government’s a casino (operated by Pirate Life). Australia’s entertainment space (The DistrictatSkyCity) and for customers, andnow includesanew live and restored to improve thelayout andexperience Railway Station,was alsoextensively revitalised Adelaide business,housedintheiconic Adelaide As partof thetransformation, theexisting SkyCity new development. Station buildingseamlesslywiththeadjoining three-storey glassatriumconnects theRailway fi rst fully functional microbrewery functional within rst fully wance for 1,500) particularly frompremiumcustomers (with been consistent withstronglocal gamingactivity, Performance atSkyCity Adelaide whenopenhas COVID-19 outbreak. in late November 2020inresponseto alocal period andthepropertywas closedfor 3.5days due to COVID-19 for year alargepartof thefull Strict socialdistancingmeasureswere required significantly improved acrossallactivities. performance since openingthenew facilities COVID-19 andconstruction disruption,but impacted by operational constraints dueto expansion openinginDecember 2020was SkyCity Adelaide’s performance priorto the FY21 PERFORMANCE performance inFY21. be madeto reflect SkyCity’s improved financial treated asotherincome. Apartialrepayment will EBITDA impact)duringtheperiodwhichwas Australian Jobkeeper scheme(around A$11million SkyCity Adelaide received benefit aone-off fromthe around 20%. seen propertymarginsaheadof expectations at prior comparable period).Goodcost execution has 2021 dueto thepropertybeingclosedin the FY20 periods (includingFY19for Aprilthroughto June was uparound50%compared to thecomparable with customers. Propertyrevenue during2H21 9%) andnew non-gamingfacilities proving popular electronic gamingmachinemarket shareof around About SkyCity 41

GENERAL 42 rooms frombothdomesticandinternational visitors. appointed to meetthegrowing demandfor qualityhotel rooms ranging from50sqm–230sqmandopulently Eos by SkyCity isAdelaide’s mostluxurioushotel, with development openedto thepublicinDecember 2020. The A$330millionSkyCity Adelaide expansion A NEWERAOFLUXURY INADELAIDE SkyCity Entertainment Group AnnualReportYear Ended30June2021 About SkyCity 43

GENERAL 44 category atthe 2020Waikato BusinessAwards. and therunner-upinCommunity Contribution community, customers, diversity andsustainability, recognising SkyCity Hamilton’s commitment to Association’s 2020CBDCelebration Awards, category attheHamilton Central Business named thewinnerof theBestSocialResponsibility destination. We were therefore thrilledto have been being theWaikato region’spremierentertainment of thelocal community andiscommitted to SkyCity Hamilton isakey memberandsupporter remain capacity constrained at peak times). demand for electronicgamingmachines(which Hamilton’s market leader positionandmanagehigh optimisation withinthecasino to maintainSkyCity Room. Akey focus hasbeenonproductandlayout space, function and arefurbished The Garden Hamilton property,includinganew Baccarat Lounge with arange of improvements acrosstheSkyCity invest initscore casino andhospitalitybusinesses Over thelastfinancial year, SkyCity has continued to bowling alley –Bowl andSocial. a conference centre andHamilton’s onlytenpin Hamilton features acasino, barsandrestaurants, location onthebanks of theWaikato River, SkyCity a buildingdesignedto maximise itssuperbriverside Situated withinHamilton’s historic Chief PostOffice, **This allowance may bealternatively utilisedto enableautomated tablegameterminals. *The casino venue licence can berenewed for periodof 15years afurther pursuantto sections134–138of theNew ZealandGamblingAct 2003. SkyCity Entertainment Group AnnualReportYear Ended30June2021 Hamilton FY21 Revenue Workforce Licensed GamingProduct Facilities Casino Venue Licence Opened General Manager Property Michelle Baillie $73.5 million(normalised) $65.0 million(reported) ~300 staff • 23tablegames** • 339electronicgamingmachines** • Entertainment • Foodandbeverage • Casino Runs until2027* Increased ownership from70%to 100%in2005 2002 SkyCity Hamilton, New Zealand compared to thepriorcomparable period. delivered significant marginimprovement A focus oncost control andoperating efficiencies international borders remainclosed. domestic tourism activityinNew Zealandas Waikato regionhasalsobenefitted fromstrong improved connectivity to theAuckland region. The economy sector) (lessreliance and ontheprimary population growth, anincreasinglydiverse local business andsupportive external factors, including a predominantlydomestic(and gaming)focused COVID-19 over thelastfinancial year due to having The propertyhasshown resilience to theimpactsof VIP customers. product mixandnew gamingareas,particularlyfor capacity constraints, benefitting fromimproved strong electronicgamingmachineactivity,despite Consistent withpriorperiods,Hamilton delivered restrictions over theperiod. despite 51days operating underAlertLevel 2 by stronglocal gamingactivityandcost control, earnings resultfor year afull period,underpinned SkyCity Hamilton delivered astrongrevenue and FY21 PERFORMANCE • Tenpin bowling • Carparking • Conventions

electronic gamingmachineactivity, positive result for year afull period,underpinnedby strong SkyCity Queenstown delivered astrongearnings FY21 PERFORMANCE is largelydependentontourism. the local Queenstown economy inparticular,which restrictions continue to have adetrimentaleffect on closing on23March2020asongoingborder Wharf propertyhasremainedclosedsince initially lockdown inNew Zealand,thesmallerSkyCity reopened on14May 2020after thefirst COVID-19 Whilst thelargerSkyCity Queenstown property Southern Alps. central Queenstown surroundedby themajestic Queenstown and SkyCity Wharf,arelocated in SkyCity’s two Queenstown casinos, SkyCity **This allowance may bealternatively utilisedto enableautomated tablegameterminals. *The casino venue licence can berenewed for periodof 15years afurther pursuantto sections134–138of theNew ZealandGamblingAct 2003. Queenstown FY21 Revenue Workforce Licensed GamingProduct Facilities Casino Venue Licence Opened/Acquired General Manager Property Jono Browne $12.3 million(normalised) $10.9 million(reported) ~50 staff • 6tablegames(Wharf)** • 74electronicgamingmachines(Wharf)** • 12tablegames(Queenstown)** • 86electronicgamingmachines(Queenstown)** • Conventions • Entertainment • Foodandbeverage • Casino Runs until2024*for Wharf Runs until2025*for Queenstown Acquired Wharfin2013 from 60%to 100%in2012 Opened Queenstown in2000andincreasedownership SkyCity Queenstown andSkyCity Wharf,New Zealand tourism trends. Queenstown andleveraging strongdomestic with thecurrentfocus onoptimisingSkyCity Queenstown propertiescontinue to beevaluated, the WharfCasinoclosed.Future optionsfor ourtwo during 1H21whenthedecisionwas madeto keep onerous leasebenefit of $986,076 was realised a significant increaseinoperating margins–an Good cost execution over the perioddelivered foreseeable future. the periodandisexpected to remainsofor the closures. The WharfCasinoremainedclosedover the periodandongoinginternational border operating underAlertLevel 2restrictionsover This strongperformance was despite 51days peak holiday periods,andeffective cost control. domestic tourism into theregion,particularlyduring About SkyCity

45

GENERAL GENERAL

International Business Online

General Manager Managing Director

Stewart Neish Steve Salmon

Facilities Premium gaming facilities at SkyCity Auckland, Facilities Online casino SkyCity Adelaide and SkyCity Queenstown FY21 Revenue $13.1 million (reported) FY21 Revenue $17.8 million (reported) $13.1 million (normalised) $22.1 million (normalised) Launched in August 2019, SkyCity Online Casino complementary to our land-based activities whilst SkyCity’s International Business division caters permanently cease dealing with junket operators provides New Zealanders with an offshore online offering customers a varied gaming experience for high-net worth international players who visit and continue to operate its International Business casino platform, featuring over 1,600 online games. (both physical and digital). casinos as part of their leisure activities. division under a revised operating model where SkyCity Online Casino is operated out of Malta by SkyCity will deal directly with International Business FY21 PERFORMANCE The flagship SkyCity Auckland property features international iGaming company Gaming Innovation patrons after appropriate know your customer and several premium gaming spaces, including Group Inc (GiG) on behalf of SkyCity Malta Limited, SkyCity continued to optimise its online casino customer due diligence requirements are satisfied. 1,800 sqm of luxury high-end gaming space an independently operated subsidiary of the SkyCity venture with GiG over the period, despite operational constraints. SkyCity Online Casino’s above the SkyCity Hotel featuring four luxurious FY21 PERFORMANCE Entertainment Group, and led by a Managing gaming salons for exclusive use and four private Director based in Europe. performance over the year has exceeded accommodation suites. Each salon has its own Our International Business division continues to be expectations with significant growth in revenue GiG provides a full-suite online casino solution, private dining facilities, bar and massage chairs, as significantly impacted by COVID-19 and ongoing and EBITDA and in excess of 45,000 active including a technical platform, gaming content, well as its own lounge area and outdoor balcony. international border closures resulting in negligible customers currently. international tourism activity over the period. managed services and front-end development. Gaming dealers are available on request for With gross gaming revenue of $27.9 million (and customers, who enjoy the full range of gaming Cost control and modest interstate tables activity in SkyCity remains supportive of future regulation of net revenue attributable to SkyCity of $13.1 million) options offered at SkyCity Auckland in their own Adelaide post expansion reduced expected losses, online gaming in New Zealand with an emphasis on and reported EBITDA of $9.1 million for the period, private salon. with 2H21 performance slightly EBITDA positive. strong host responsibility and delivering community SkyCity Online Casino is now making a meaningful benefits in New Zealand and we continue to contribution to the Group. EBITDA margin for Additional VIP luxury gaming facilities were opened Our International Business team has continued prepare for a regulated industry to deliver on the the period was in line with expectations due to in December 2020 as part of the A$330 million to focus on proactive customer engagement to omnichannel opportunity for the Group. Growth operating leverage and effective management of SkyCity Adelaide expansion. prepare the business for when borders reopen in online gambling continues to be a significant customer acquisition costs. In April 2021, SkyCity announced, following and customers can return to our properties. global industry theme with numerous international completion of a strategic review into its jurisdictions regulating online gambling (or International Business division, that it would intending to do so) to address the transition from physical to online entertainment, which has been exacerbated by the impact of COVID-19.

Following a public consultation which commenced during 2019, the Department of Internal Affairs (the New Zealand gambling regulator) continues to develop a policy framework for potential regulation. Regulation of the New Zealand online gaming market would enable SkyCity to pursue the omnichannel opportunity and address a fast-growing category which is highly

46 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 GENERAL

Our Values Refreshing Our Brand

Our people-centric values represent what it means to succeed at SkyCity – they In June 2021, SkyCity Auckland launched a new brand campaign, Feel It, across outdoor, online video and print media channels. Designed to remind Aucklanders and visitors from the rest of New Zealand that identify what is expected from us when we come to work and define the important SkyCity offers a range of memorable experiences, the campaign celebrates the feelings SkyCity creates role we all play in creating magic at SkyCity. for its visitors across its extensive range of offerings. The campaign features many of SkyCity’s most iconic attractions, as well as several less well known experiences.

Feel It unifies the many and varied parts of SkyCity under the many and varied feelings they create, be that a We all have a unique set of skills with which we delicious meal, a relaxing massage or yoga class, a walk around the outside of the Sky Tower, or a jump off it, do our part for SkyCity. a stay in one of our hotels, or a night at the roulette table – all of these activities create memorable feelings that are celebrated in this campaign. Own your role, embrace it with passion and energy, act with integrity, be genuine with your interactions and be accountable for your work.

Be proud of your successes.

Take responsibility for your mistakes and learn from them to keep improving.

We're all a part of the SkyCity team.

Be a passionate member of your team and work towards your shared goals.

Help others along the way, treat your colleagues and customers fairly and with respect.

Be honest and connect with others to build strong relationships.

Be inclusive and embrace diversity.

Be enthusiastic and take pride in working for SkyCity.

Always strive to deliver exceptional customer experiences.

Seek out ways to go the extra mile and leave a lasting impression.

Help us to continually improve and create the best version of SkyCity.

48 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 49 GENERAL Risk Profile and Management

SkyCity operates in a dynamic and challenging The SkyCity Board and management recognise that environment with risks and opportunities both a positive culture is fundamental to an effective locally and internationally. The SkyCity Board risk management framework and instils and is ultimately responsible for the governance of promotes a culture which values the principles the Group’s risk management, which includes of honesty, fairness, cooperation, diversity and formulating the Group’s risk appetite and setting inclusion, and accountability – as reflected in the and monitoring risk tolerance. SkyCity Group’s Code of Conduct (available in the Governance section of the company’s website at SkyCity maintains a risk management framework www.skycityentertainmentgroup.com). for the identification, assessment, monitoring and management of risk to the company’s business. The Group Risk team monitors the company’s As part of this framework, SkyCity maintains an culture for indications on how well the risk culture is independent, centrally managed Group Risk performing and/or areas for improvement by way of: function which evaluates and reports on risks and • leadership risk culture surveys conducted controls across the Group. The Group Risk team annually across the SkyCity Group; collates, assesses and monitors the risks the Group faces by way of a Top Risk Profile, which is updated • mini risk culture surveys conducted as part of regularly. The Top Risk Profile is a current view of the each assurance and risk review; most significant emerging or potential risks facing • bi-annual reviews of various metrics to help the Group, as well as a summary of how those risks provide a proxy view of risk culture; are being mitigated or prepared for, and is a critical input to strategic planning, insurance renewal, • bi-annual presentation of a risk culture investment and resource prioritisation, assurance dashboard to the Audit and Risk Committee; and planning, and ongoing business improvements. • regular discussions with management on risk Management reports to the SkyCity Board and culture. the Board’s Audit and Risk Committee on the effectiveness of the company’s management of its material business risks at least annually. Our Material Risks SkyCity operates a combined assurance model SkyCity’s ability to create and preserve value for its which is led by the Group Risk team and includes a shareholders requires the successful execution of combination of business self-assurance (production its business strategy, while maintaining a sound and maintenance of business unit risk registers), culture and practices to maintain compliance with internal audit activity, and the selected outsourcing responsible gaming frameworks. Risks influencing of a number of independent reviews. The overall its ability to do this, including SkyCity’s material effectiveness of the combined assurance model exposure to economic, environmental and social is monitored and assessed by, and all significant sustainability risks, if any, and how it manages or assurance findings are communicated to, the Audit intends to manage those risks, are outlined in the and Risk Committee. table overleaf.

51 52 SkyCity Entertainment Group AnnualReportYear Ended30June2021 share price. financial performance andoutlook,liquidityand/or to have, amaterial adverse effect onSkyCity, its economies have had,andarelikely to continue effects of thepandemicon globalanddomestic and bordercontrols/travel restrictions)andthe other Governments (includingnationallockdowns in responseby theNew Zealand,Australian and The COVID-19 pandemicandrelated actionstaken and/or temporary closureof one or moreof itssites. have thepotential to cause significant disruption must bepreparedfor awiderange of events that As withany large,distributed business,SkyCity Pandemic PreparednessandBusinessContinuity of thisannualreportfor moredetails. on SkyCity’s ‘sociallicence’ to operate –seepage58 laundering andhostresponsibilityobligations) and Australia (includinginrespectof anti-money of land-basedcasino operators inNew Zealand oversightprotection requirementsandregulatory been anincreasedfocus onadditionalconsumer For example, over thepastfinancial year therehas New ZealandandAustralia. conservatism inrelationto in thecasino industry orincreasedgovernment industry andregulatory response to thebehaviour of othersoperating inthe introduced for avariety of reasons,includingin gaming taxes andlevies. Suchchangesmay be legislation andregulations,licence conditions and unfavourable changesto gamingand/or smoking Potential examples of suchchangesinclude keep improving SkyCity’s standards. aswellthe casino asongoingpressureto industry, focus byincreased regulatory different regulators of of operating itsbusiness.Inaddition,thereisan operates andincreasethecosts andcomplexities may impacttheenvironment inwhichSkyCity but alsosubjectto changefromtimeto time,which which thebusinessoperates isnotonlycomplex highly regulated. The framework regulatory in SkyCity operates whichis inthecasino industry, Highly Regulated Industry Material Exposure pandemic to date. the ongoingimpactsof theglobalCOVID-19 have worked well inrespondingto andmanaging framework, theSkyCity Boardandmanagement Due to thestrengthof thebusinesscontinuity improvement to enhance resilience. to test managementreadinessandcapability) and simulated crisisresponsedrillsonaregularbasis readiness andcapability (includingundertaking to ongoingmonitoring to ensuremanagement The businesscontinuity framework issubject disasters, fire,emergencyincidentsandpandemics. a widerange of critical events, includingnatural which supportspreparednessandresponseto comprehensive businesscontinuity framework, To mitigate this risk,SkyCity maintainsa regulations. licence conditions andapplicable legislationand and framework to ensurecompliance with SkyCity alsosupportsarobustcompliance culture business. occurring andtheimpactitwould have onSkyCity’s required basedonthelikelihood of therisk Targeted initiatives areundertaken asandwhen maintained. are metandhighstandardsof compliance are stakeholders toindustry ensurethatexpectations jurisdiction inwhichSkyCity operates andwith with thegovernments andregulators ineach maintaining frequentandtransparent engagement of theevolving landscape, regulatory including The riskismitigated by regulatory closemonitoring Risk Management negative impactonSkyCity. SkyCity’s othercasino licences would alsohave a The suspension,cancellation orexpiry of any of significant negative impactonSkyCity. of theAuckland casino licence, would have a through thesuspension,cancellation orexpiry SkyCity’s Auckland operations, whichmay arise the Auckland property. Asignificant disruption to performance of SkyCity isheavily dependentupon concentration of earningsmeansthatthe significant portion of SkyCity’s EBITDA. This SkyCity’s Auckland propertycontributes a Loss of Casino Licence term investor confidence. andregulatory during thesetimesiscritical to maintaininglong SkyCity’s abilityto demonstrate fiscal resilience being adversely impacted. SkyCity'sfuture performance financialpositionand control. Suchunexpected matters could resultin a numberof matters beingoutsideof SkyCity's those matters, includingasaconsequence of There issignificant complexity related to managing earnings. no and/orsignificantly diminishedrevenue and its liquidityandsolvency throughoutaperiodof dependent onitbeingableto effectively manage SkyCity’s abilityto achieve itsbusinessobjectives is Liquidity andSolvency Risk Material Exposure with itsregulators onmatters of concern. 20 years andiscommitted to working cooperatively SkyCity has anexcellent of compliance history over in eachjurisdictionwhichSkyCity operates. engagement withthegovernments andregulators, gaming legislationandregulations,maintaining ensure compliance withlicence conditions and a robustcompliance cultureandframework to In addition,SkyCity mitigates theriskby maintaining course. of theGamblingAct 2003(New Zealand)indue sought inaccordance withtherenewal provisions and Queenstown casino licences areintended to be until 30June2085andextensions to theHamilton The SkyCity Adelaide casino licence currentlyruns 30 June2048. extension of theAuckland casino licence to SkyCity hasmitigated thisriskby securingan approach to capital management. COVID-19, SkyCity continues to adoptaconservative significant riskanduncertainty still exists around Given thecautious economic outlookandthat the SkyCity Group'sdrawings onitsbankfacilities. bonds –theproceeds of whichwere usedto reduce of six-year, unsecured,unsubordinated, fixed rate management strategy, SkyCity issued$175million In May 2021,aspartof itsongoingcapital Auckland andAdelaide. committed investment initstwo majorprojectsin to longterm liquidity fund its andsufficient to appropriate level of equitycapital for themedium and July2020ensuredthatSkyCity hadan planwasfunding successfully implemented inJune uncertainty aroundtheimpactsof COVID-19. The secure additionalliquidityinresponseto the plantofunding strengthenitsbalance sheetand In June2020,SkyCity announced acomprehensive United States private placement noteholders). relationships withitslenders(includingbanks and SkyCity alsomaintainscloseandtransparent counterparties andmaturities. committed creditlinesavailable withavariety of maintaining flexibilityfunding in by keeping monitoring forecast andactualcash flows and SkyCity managesliquidityriskby continuously Risk Management Risk Profile and Management 53

GENERAL 54 SkyCity Entertainment Group AnnualReportYear Ended30June2021 reputational impacts. operations, potential breachesof privacy and/or costs to resolve orrepair,potential downtime of ability to operate critical systems andresultin deleted orcorrupted, whichcould impactSkyCity’s information isaccessed withoutauthorisation, of critical systems may becompromised and/or of key systems. There isariskthatthesecurity SkyCity’s operations aredependentonanumber requirements. ensuring compliance andlicence withregulatory its operations, butalsomitigatingcyber-threatsand SkyCity’s business–notonlyfor facilitating/enabling Technology representsacritical platform to Technology Risk innovation. including new offerings, technologies and in bothitsgamingandnon-gamingoperations, evolving customer demographics andpreferences SkyCity recognises thatitisimportantto consider Customer andInnovation Risk company. influence thefinancialperformance ofthe in certain partsof thebusiness,can significantly that SkyCity operates in,inadditionto volatility The general economic conditions inthemarkets Economic andBusinessVolatility Material Exposure employees. organisation to raise securityawareness amongst phishing emailsarealsoregularly sentwithinthe vulnerabilities thatcould beexploited. Simulated test system any resilience security andidentify Penetration testing isundertaken regularlyto the proposedmeasuresto prevent recurrence. to majorcyberandprivacy incidentsandoversee SkyCity’s securityposture,andreview andrespond matrix, prioritisetheoperational initiatives to lift mitigation initiatives againstthecybersecurityrisk cybersecurity strategy andprogramme, prioritise govern thedevelopment of SkyCity’s privacy and Steering Committee hasbeenestablishedto A management-ledPrivacy and Cybersecurity and assurance. technology projectgovernance, riskmanagement Additionally, thereisastrong,ongoingfocus on latest cybersecurityissuesandsecuritypatches. recovery preparedness)andto keep abreastof the around ensuringimproved levels of ICTdisaster invest intheseareasasrequired(particularly improve cyber-resilience. SkyCity continues to capability anddatamanagement,to to improve technology systems, infrastructure, in asignificant programme over recent years To mitigate technology risk,SkyCity hasinvested entertainment offerings. for food andbeverage, new gaming spaces and each of theSkyCity sites to explore opportunities Master planningalsocontinues to beprogressedfor technology anddemographic changes. trends andopportunitiesfor leveraging new progressed, withafocus onemerging industry key strategic projectsarecurrentlybeing To ensureSkyCity remainsrelevant to itscustomers, portfolio reflecting itsriskappetite. its businessactivitiesto ensureithasabalanced SkyCity alsocontinually reviews theoptimalmixfor liquidity managementframework. and globaleconomic landscape, andhasarobust its external environment, includingthegeo-political To mitigate theserisks, SkyCity continually monitors Risk Management reporting areoutlined onpage122of thisannualreport. operations. Further details ontheserisks and SkyCity's approachto climate changeriskmanagement and in itsusualday-to-day operations. SkyCity nonethelessrecognises thecriticality of climate related risks to its Given thenatureof SkyCity’s operations, SkyCity doesnothave amaterial exposure to environmental risks manual taskrelated injuries. includes risks suchasslipsandtripscutsfrom consequence/high frequencycategory, which company’s healthandsafety riskfalls into thelow SkyCity’s business,ahighpercentage of the Due to thehospitalityandretailfocus of and low consequence/high frequencyrisks. consequence/low frequency(beingcritical risks) risksplace intwo key thatidentify categories –high SkyCity hasHealthandSafety RiskRegisters in Health andSafety Risk Adelaide expansion project. and occupancy for therecently openedSkyCity to isexpected mediumfuture to impactvisitation interstate andinternational bordersover theshort For example, theongoingclosureof Australian for returnoncapital invested inmajorprojects. The COVID-19 pandemic has significant implications constraints andprojectcost overruns. project risks includeprojectdelays, supplychain Horizon Hotel development inAuckland). Potential New ZealandInternational Convention Centre and SkyCity hasasignificant projectstillunderway (the (including ReturnfromMajorProjects) Development andProjectRisk Material Exposure properties inbothjurisdictions. the commercial landscape for SkyCity's land-based safety risks of COVID-19 have significantly altered around theworld. However, theongoinghealth and and mortalitycompared to many othercountries relative success inensuringalow level of infection Both New ZealandandAustralia have achieved Framework for itsbusiness operations. implemented aCOVID-19 HealthManagement associated withCOVID-19 andhasdeveloped and and safety standardsto manage theongoingrisks SkyCity iscommitted to delivering robusthealth improve itshealthandsafety performance. activities to maintaincertifications and continually employer. The company undertakes assurance and itsAdelaide site isaregistered self-insured Corporation (ACC) Accredited Employers Programme accredited undertheAccident Compensation SkyCity’s New Zealandpropertiesaretertiary contractors. promoting wellness amongstitsemployees and which areaimedatreducingminorinjuriesand SkyCity hasharmprevention programmes inplace ensuring SkyCity keeps itspeopleandvisitors safe. appropriate, strengthencritical riskcontrols activities seekto test thesecontrols and,where potential for anincident.Ongoingsafety assurance safe systems of work to effectively control the fire and explosion), SkyCity hasinplace extensive heights, confined spaces, electrical, moving plant, To mitigate critical risks (whichincludeworking at shareholder returns. robust governance over capital allocation and major growth projects.SkyCity alsoensures oversight frameworks for bothcurrentandfuture SkyCity hasestablishedstronggovernance and project management. contractual obligations,andmaintainingrobust monitoring progressby contractors against SkyCity seeks to mitigate theserisks by continually Risk Management Risk Profile and Management 55

GENERAL 56 • • • • place acrossitsland-basedcasinos: and Australia, SkyCity hasthefollowing measuresin purposes of theAML/CFT legislationinNew Zealand As acasino operator andreportingentityfor the every partof theorganisation. financing of terrorism (CFT)obligationsthroughout anti-money laundering (AML)andcountering At SkyCity, we place greatimportance onour the funds. protect theidentityof thoseproviding andreceiving launderers to avoid detection by authoritiesandto of terrorism usesimilartechniques to money disguise theillegaloriginsof theirmoney. Financers financing. Money launderingishow criminals to guardagainstmoney launderingandterrorism and requiresthemto take appropriate measures deter money launderingandterrorism financing financial institutionsand casinos, to detect and obligations oncertain organisations,including Counter Terrorism place FinancingAct 2006(Cth) and theAustralian AntiMoney Launderingand Countering Financingof Terrorism Act 2009 The New ZealandAnti-Money Launderingand responsible, experiences andenvironments. entertaining andprofitable, yet safe and SkyCity iscommitted to ensuringthatitprovides Tackling FinancialCrime SkyCity Entertainment Group AnnualReportYear Ended30June2021

of identity; customer identification and verification customer duediligence processes, including maintain theAML/CFT Programmes; of New Zealand andAustralia to administer and an AMLCompliance Officer appointed ineach and thefinancing of terrorism; deter, manageandmitigate money laundering Australia thatincludeprocedures to detect, AML/CFT Programmes inNew Zealandand face inthecourse of runningitsbusiness; financing of terrorism risks thatSkyCity could an assessmentof themoney launderingand • • deliver bestpractice AML/CFT standardsatSkyCity. solutions andseekexpert advice whererequiredto We continue to explore available technology administers andmaintainstheAML/CFT Policy. processes. AMoney LaunderingReportingOfficer auditing andannualreportingsystems and of identity),andsuspiciousactivityreporting, (including customer identification and verification of terrorism, customer duediligence processes and mitigate money launderingandthefinancing that includesprocedures to detect, deter, manage Group Inc(GiG).hasinplace anAML/CFT Policy international iGamingcompany GamingInnovation Casino, isoperated fromMalta inpartnershipwith SkyCity’s onlinegamingsite, SkyCity Online AML/CFT matters. in AML/CFT related dutiesalsoreceive training on SkyCity seniormanagersandemployees engaged SkyCity’s AML/CFT obligationsacross theGroup. and supportstheeffective implementationof to AML/CFT related matters acrosstheGroup Management Groupprovides enhanced governance requirements andamanagement-ledAMLSenior the Group’songoingcompliance withAML/CFT Within thebusiness,aspecialistAMLteam oversees AML/CFT obligations. Committee meeting,matters relatingto theGroup’s agenda item ateachscheduledAudit andRisk Zealand andAustralia anddiscusses,asastanding compliance withAML/CFT requirementsinNew committee thathasresponsibilityfor ensuring The Audit andRiskCommittee isadedicated Board

of AML/CFT compliance. regular internal andexternal auditsandreviews (AUSTRAC) (as applicable); and Transaction ReportsandAnalysis Centre to theNew ZealandPolice andtheAustralian activity, andcash transactions over $10,000, suspicious activitythatmay berelated to illegal and processes. Forexample, SkyCity reportsany transaction reportingandauditingof systems suspicious activityreporting,threshold • established inNew Zealand customer duediligence and (subject to regularinternal An AML Senior Management AnAMLSeniorManagement Development Governance &Oversight to theAdelaide operations programmes AML training SkyCity’s AMLprocesses enhanced duediligence and Adelaide outlining Learning & transaction monitoring, Group meetsregularlyto Senior Management and external review) customer screening, customer screening, regulatory reporting, reporting, regulatory relevant to theGroup and procedures for for staff Senior Management Committee oversees AML Programmes • AML issuesspecific discuss AMLissues AnAdelaide AML Programmes AML

in thecourse of itsbusiness reasonably expect to face

and terrorism financing assessment identifying assessment identifying Each AMLProgramme the money laundering risks thatSkyCity may contains arisk Assessment AML Risk laundering (AML)compliance SkyCity BoardandAudit oversight of anti-money Board Governance and RiskCommittee Anti-Money Framework Laundering & Oversight SkyCity Control AML system (JadeThirdEye) used to facilitate customer (Bally andiTrak) usedfor screening andreporting

• Anexternal specialist • AML record keeping Internal ITsystems

IT Systems AML Compliance Officers) A specialistAMLteam (including designated oversees theGroup’s within thebusiness ongoing day-to-day AML requirements compliance with 2–3 years inNew Zealand Roles &Duties and Adelaide to monitor An independentreview Risk Profile and Management compliance withthe is carried outevery AML Programmes Independent AML Assurance AML advisors experienced Assisted by Advisors External external 57

GENERAL GENERAL

Increased Focus on the Casino Industry relating to ongoing customer due diligence, adopting and maintaining an AML/CTF Programme Over the last financial year, there has been an and compliance with Part A of an AML/CTF increased focus on casino operators in Australia as a Programme. These concerns were identified in consequence of the New South Wales Independent the course of a compliance assessment which Liquor and Gaming Authority’s inquiry into the AUSTRAC commenced in September 2019 focusing operation of Crown Casino in Sydney, the Royal on SkyCity Adelaide’s management of customers Commission established by the Western Australian identified as high risk and politically exposed Government to inquire into and report on the affairs persons over the periods from 1 July 2015 of the Crown Casino Perth and related matters and – 30 June 2016 and 1 July 2018 – 30 June 2019. the Royal Commission established by the Victorian Government to inquire into the suitability of Crown AUSTRAC has made clear that it has not made Melbourne Limited to hold a casino licence. a decision regarding the appropriate regulatory response that it may apply to SkyCity Adelaide, These inquiries have led to increased focus and including whether or not enforcement action will scrutiny on SkyCity and other casino operators and be taken. could lead to more stringent regulations for casino operators in Australia and New Zealand in relation The SkyCity Board and management team take the to money laundering and other financial crimes. concerns raised by AUSTRAC very seriously and took As a result, there are heightened expectations immediate steps to investigate and appropriately on SkyCity around its obligations under AML/CFT address AUSTRAC's concerns, including: legislation and regulations, monitoring cash and • establishing a Steering Committee (led by third-party transactions, and undertaking enhanced the Chair of the SkyCity Board) to oversee due diligence checks on higher risk customers. SkyCity Adelaide's engagement with AUSTRAC Banks in both New Zealand and Australia are also throughout the investigation process and its signalling to casinos that they have a significantly response to addressing the concerns raised by reduced risk appetite for accepting cash deposits AUSTRAC; and from higher risk customers. • engaging an independent expert to conduct In April 2021, SkyCity announced, following a comprehensive review of SkyCity Adelaide’s completion of a strategic review of its International AML/CTF Programme and broader AML function Business division, that it would permanently in light of the concerns raised by AUSTRAC to cease dealing with all junket operators, effective assist SkyCity where appropriate to enhance immediately, and continue to operate its and improve the AML/CTF Programme and AML International Business division under a revised function. SkyCity has also devoted substantial operating model where SkyCity will deal directly further resources to reviewing these matters with International Business patrons after with a view to identifying and implementing appropriate know your customer and customer due appropriate improvements to SkyCity’s AML diligence requirements are satisfied. function. These reviews have not been limited AUSTRAC Enforcement Investigation in their scope to matters specifically raised by AUSTRAC - they have also been directed In June 2021, SkyCity was informed by AUSTRAC’s to identifying areas where SkyCity Adelaide’s Regulatory Operations Team that it had AML/CTF Programme and AML function could be identified potential serious non-compliance by enhanced or uplifted more generally. SkyCity Adelaide Pty Limited with the Australian Anti-Money Laundering and Counter-Terrorism SkyCity will continue to fully co-operate with Financing Act 2006 and Anti-Money Laundering AUSTRAC in relation to its inquiries and with its and Counter-Terrorism Financing Rules Instrument investigation into SkyCity Adelaide. 2007 (No. 1) and it had, consequently, referred the matter to AUSTRAC’s Enforcement Team which had initiated a formal enforcement investigation into the compliance of SkyCity Adelaide. The potential non-compliance includes concerns

58 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 Risk Profile and Management 59 Our Board GENERAL

ROB CAMPBELL SUE SUCKLING JENNIFER OWEN MURRAY JORDAN Chair Director Director Director

Member of the Audit and Risk Committee Chair of the Sustainability Committee Chair of the Audit and Risk Committee Chair of the People and Culture Committee Member of the People and Culture Committee Member of the Governance and Nominations Member of the People and Culture Committee Member of the Audit and Risk Committee Member of the Sustainability Committee Committee Member of the Governance and Nominations Member of the Sustainability Committee Chair of the Governance and Nominations Committee Member of the Governance and Nominations Appointed a director of SkyCity in May 2011 Committee Committee Appointed a director of SkyCity in December 2016 Appointed a director of SkyCity in June 2017 Appointed a director of SkyCity in December 2016 and Chair of the SkyCity Board in January 2018 Sue Suckling is an independent director and consultant with over 25 years in commercial Jennifer Owen has more than 30 years’ experience corporate governance. She is recognised for her in the areas of accountancy, audit, finance, treasury Murray Jordan is currently a director of Metlifecare Rob is currently the Chair of Tourism Holdings leadership in the technology innovation space and and equities research. She has specific specialist Limited, Chorus Limited, Metcash Limited, Limited, New Zealand Rural Land Company Limited, her deep governance experience. knowledge of the New Zealand and Australian Stevenson Group Limited, Asia Pacific Village Ara Ake Limited and WEL Networks Limited and gaming and entertainment sectors through her Group Limited, Southern Cross Benefits Limited, Sue is currently the Chair of the Insurance a director of Ultrafast Fibre Limited. Rob has over previous roles as Director of Equities Research Southern Cross Hospitals Limited and the Southern & Financial Services Ombudsman Scheme 30 years’ experience in capital markets and is a at Citigroup Global Markets, with a specialist Cross Medical Care Society. He is also a trustee of Commission, Jacobsen Holdings Limited, 5th director of, or advisor to, a range of investment fund focus on the Australasian gaming sector, and as Southern Cross Health Trust, Starship Foundation, Element Limited, Eat My Lunch Limited, Rubix and private equity groups in New Zealand, Australia, Equities Research Analyst at Macquarie Group Foodstuffs’ Members Protection Trust and The Limited, Jade Software Corporation Limited and Hong Kong and the United States of America. He focusing on the tourism/leisure sector, and a wide Foodstuffs Co-operative Perpetuation Trust. Taska Prosthetics Limited. Previous governance was made a Companion of the New Zealand Order network within the gaming industry and a strong roles include chairing NIWA, the New Zealand Prior to embarking on a governance career in of Merit (CNZM) in the New Year Honours 2020 list understanding of industry and investor issues. Qualifications Authority and AgriQuality Limited, 2015, he held various senior management roles at for his services to governance and business. and as a director of Restaurant Brands Limited, Jennifer is currently a Principal of Owen Gaming Foodstuffs Limited from 2004 to 2015, including Rob holds a Bachelor of Arts with First Class Westpac Investments Limited and the New Zealand Research, an independent research firm specialising Managing Director of Foodstuffs North Island and Honours in Economic History and Political Science Dairy Board. She holds an OBE for her contribution in the gaming and wagering markets, and a director Managing Director and General Manager Retail, and a Master of Philosophy in Economics. to New Zealand business. of Aspire Child Care (Mascot) Pty Limited. Sales and Performance of Foodstuffs Auckland Limited. In 2013, he led the merger of the Auckland Sue is a Chartered Fellow of the New Zealand Jennifer holds a Bachelor of Business from the and Wellington businesses of Foodstuffs to create Institute of Directors and a Companion of the Royal Queensland Institute of Technology and a Master what is now known as Foodstuffs North Island and Society of New Zealand. of Business Administration from the University of established and oversaw the integration programme. Queensland, is a graduate of the Australian Institute of Company Directors’ Diploma course and is a His early career was in the property sector, including member of Chartered Accountants Australia and as General Manager of Telecom NZ’s property New Zealand. business and General Manager of AMP Capital Investors NZ Limited’s property portfolio. Murray has a Master’s degree in Property Administration from the University of Auckland.

Murray will retire from the SkyCity Board effective from 30 September 2021.

60 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 61 GENERAL

SILVANA SCHENONE JULIAN COOK CHAD BARTON Director Director Director

Member of the People and Culture Committee Member of the Audit and Risk Committee Member of the Audit and Risk Committee Member of the Sustainability Committee Member of the People and Culture Committee Member of the People and Culture Committee Member of the Governance and Nominations Member of the Governance and Nominations Member of the Governance and Nominations Committee Committee Committee

Appointed a director of SkyCity in June 2021 Appointed a director of SkyCity in June 2021 Appointed a director of SkyCity in June 2021

Silvana Schenone is a corporate partner at Julian Cook was Chief Executive Officer of Chad Barton has extensive experience across MinterEllisonRuddWatts in Auckland where Summerset Group Holdings Limited from 2014 to finance, capital markets, mergers, acquisitions and she leads the firm’s Corporate division. She has March 2021 and, prior to becoming Chief Executive property development. He is currently the Interim extensive expertise in mergers and acquisitions, Officer, Summerset’s Chief Financial Officer where Chief Financial Officer of Nuix Limited, an ASX-listed private equity investments, takeovers, scheme he oversaw the company’s transition to become a global software company, and was the Chief of arrangements, capital raisings and corporate publicly listed company on the New Zealand and Financial Officer of ASX-listed companies The Star governance matters. Australian stock exchanges. Entertainment Group Limited from 2014 to 2019 and Salmat Limited from 2009 to 2014. Prior to this, Silvana is recognised internationally for her Prior to joining Summerset in 2010, Julian was he was Chief Financial Officer of the Australia and commercial acumen and negotiation skills, and an Associate Director at Macquarie Group where New Zealand business of Electronic Data Systems is a thought leader on corporate governance he gained significant experience in the energy, from 2006 to 2009. issues. Prior to joining MinterEllisonRuddWatts in industrial services, tourism and aged care sectors 2007, Silvana was a corporate lawyer at Sullivan over a 12-year career. Chad, as founding Chairperson, established Women & Cromwell LLP in New York and prior to that at in Gaming & Hospitality Australasia to achieve Julian is currently a director of WEL Networks Cariola Diez Pérez-Cotapos in Chile. gender equity and support the development and Limited and holds a Master of Finance from success of women in the gaming industry. Committed to championing greater diversity, Victoria University and a Master of Science from the Silvana is a founding member of OnBeingBold. University of Waikato. Chad is currently a director of NeuRA (Neuroscience She is also a Board member of the New Zealand Research Australia) Foundation and a member of Takeovers Panel and holds a Master of Laws from the Australian Institute of Company Directors and Harvard University. Chartered Accountants ANZ and holds a Bachelor of Business from the University of Technology in Sydney.

62 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 Our Board 63 64 Team Leadership Our Senior SkyCity Entertainment Group AnnualReportYear Ended30June2021 Absent: David Christian McLatchie Glen and Jamieson Simon Wong, Amey, Jo Julie Ahearne, Michael Ballesty, Matt Walker, Claire Mallett, Callum George, Nirupa TO RIGHT: LEFT FROM Our SeniorLeadership Team 65

GENERAL 66 University of Waikato. Bachelor of ManagementStudiesfromthe Julie isachartered accountant andholds a Worldwide PublishingandDeloitte &Touche. finance rolesatFletcher ChallengeEnergy,BBC Arab Emirates. Priorto joiningShell,sheheld Controller for UpstreamMiddleEastintheUnited Turkey andBusinessFinance ManagerandFinancial Shell, Chief FinancialOfficer for Shell& Turcas A.S. 2001, includingasVice President Finance Qatar roles withtheShellGrouparoundworld since Gas. Shehasalsoheldanumberof seniorfinance held theroleof Vice PresidentFinance Integrated Julie joinedSkyCity fromShell Australia whereshe the SkyCity Group. andhelpstofunction drive thestrategic directionof Information andCommunications Technology development. Shealsooversees SkyCity’s riskmanagementandcorporatetreasury, management of SkyCity, includingreporting, in May 2021andisresponsiblefor thefinancial Julie joinedSkyCity asChief FinancialOfficer Chief FinancialOfficer JULIE AMEY University of Technology, Sydney. a Master of BusinessAdministration fromthe Michael isaqualifiedaccountant andholds Casino inSydney. several seniormanagementpositions atThe Star the Australia and New Zealand regions and has held formerly theChief Operating Officer for Aristocrat in leaders insportsbettingandgaming.Michaelwas roles atPaddyPower Betfair, oneof theworld commercial, operational andproductleadership joining SkyCity, Michaelheldanumberof senior as well asretailandonlinesportsbetting.Priorto sectors, includingland-basedandonlinecasinos, spansoverindustry 20years acrossmultiple Michael’s extensive globalexperience inthegaming Casino in2019. overseeing theestablishmentof SkyCity Online also ledSkyCity’s onlinegamingstrategy, including properties inNew ZealandandAustralia. Michael responsible for drivingvalue acrossSkyCity’s 2017 asGroupChief Operating Officer and was November 2020.HejoinedSkyCity inDecember Michael was appointed Chief Executive Officer in Chief Executive Officer MICHAEL AHEARNE SkyCity Entertainment Group AnnualReportYear Ended30June2021 Tasmania. House, of HospitalityManagement fromDrysdale from DeakinUniversity, Victoria, andaDiploma David holdsaMaster of BusinessAdministration and General ManagerSkyCity Hamilton. GeneralSkyCity ManagerSkyCity Darwin, Auckland expansion development), General Manager and openingof theA$330millionAdelaide he was responsiblefor overseeing theconstruction including General ManagerSkyCity Adelaide (where during hiscareer withSkyCity since joiningin2005, Singapore. Hehasheldanumberof seniorroles including working inseveral Australian States and casino management, hospitality, hotel and 30 years’ experience in David hasmorethan gaming business. the Australian interstate business andoverseeing for SkyCity’s Adelaide 2021 andisresponsible Australia inFebruary Chief Operating Officer David was appointed Chief Operating Officer Australia DAVID CHRISTIAN the University of Nevada. Cornell University, The LondonBusinessSchooland of Wellington, andhascompleted studieswith a Bachelorof Commerce fromVictoria University retail andfinancialinvestment sectors. Heholds senior leadershiprolesacrossthehospitality, Prior to joiningSkyCity, Callumheldnumerous Hospitality for SkyCity Auckland. Sky Tower, andExecutive General Managerof SkyCity Auckland Hotels, Convention Centre and GeneralManager of SkyCity Manager Darwin, SkyCity since joiningin2009,includingasGeneral experience having heldanumberof seniorrolesat Callum hassignificant gamingandhospitality of SkyCity Auckland. businesses, includingtheday-to-day operations responsibility for SkyCity’s New Zealand 2021andhasoperatingNew ZealandinFebruary Callum was appointed Chief Operating Officer Chief Operating Officer New Zealand CALLUM MALLETT Wellington. a Bachelorof ArtsfromVictoria University of Asian LeadersandholdsaBachelor of Laws and Leaders Programme, isamemberof New Zealand a graduate of the 2017GlobalWomen Breakthrough one of theleadinglawyers acrossNew Zealand.Jois Lawyer’s 2019and2020In-House Leaderslistsas Law Awards andwas recognised inNew Zealand Year category inthe2019and2020New Zealand Jo was afinalistintheIn-HouseLawyer of the New Zealand. at RussellMcVeagh, oneof theleadinglaw firmsin financial services industry and was aSeniorSolicitor industry financial services Group Corporate Counsel rolesintheNew Zealand SkyCity in2009,sheheldGeneral Counsel and practice andin-houselegalroles.Before joining Jo hasover 20years’ experience inbothprivate Chief Privacy Officer. andisdesignatedlaundering functions asSkyCity’s affairssecretarial, regulatory andanti-money 2016. Sheisresponsiblefor SkyCity’s legal,company Counsel andCompany inSeptember Secretary 2009andwas appointed asGeneralJanuary Jo joinedSkyCity asSeniorLegalCounsel in General Counsel andCompany Secretary JO WONG of theSustainableBusinessCouncil inNew Zealand. Claire holdsagovernance board roleontheadvisory the education sector. Harvey andDowner afterseveral years working in held seniorhumanresource roleswithCarter Holt for theSkyCity Auckland business.Clairehasalso human resources andemployee relationsfunction for theorganisationand,priorto that,Claireledthe the sustainabilityandintegrated reportingactivities established thehumanresources andled function People Officer atSanford Limited whereshe Prior to joiningSkyCity in2016,Clairewas Chief sustainability atSkyCity. SkyCity Groupandhasexecutive responsibilityfor practice peopleandculturestrategy acrossthe the development andimplementationof best and CultureOfficer. Sheisresponsible for leading sectors, andholdsthepositionof Chief People management gainedacrossanumberof different more than20years’ experience inhumanresource Claire was appointed inAugust 2016,bringing Chief PeopleandCultureOfficer WALKERCLAIRE Massey University, New Zealand. Australia, andaBachelorof BusinessStudiesfrom of Information Systems fromSwinburneUniversity, member of CyberResearchNZ.GlenholdsaMaster board Big BrothersSisters andanadvisory New Zealand,aboardmemberof Auckland charity Glen isamemberof theInstitute of Directors in the MiddleEast. UK, France, USA, Australia, Malaysia, India,Chinaand industries globally,having worked inandoutof the technology experience fromacrossseveral and digitalcapability. Hehasover 25years of and modernisedtheiragingtechnology footprint ICT withMeridianEnergywherehetransformed Prior to joiningSkyCity, Glenwas General Manager growth strategies. respond to innovation future initiatives and capability of theorganisationto beableto Officer andisresponsible thedigital for lifting Glen joinedSkyCity in2016asChief Information Chief Information Officer GLEN MCLATCHIE experience to theSkyCity business. of commercial, property,projectandtourism hospitality businesses,Simonbringsawealth With morethan35years’ experience inlarge-scale health andsafety. SkyCity’s development projectsinNew Zealandand project inAuckland. Heisalsoresponsiblefor International Convention Centre andHorizon Hotel the development of SkyCity’s New Zealand As General ManagerNZICC, Simonoversees SkyCity Auckland. SkyCity Auckland andActing General Manager Manager SkyCity Adelaide, General ManagerHotels has heldanumberof roles,including General Since joiningSkyCity inSeptember 2007,Simon General ManagerNZICC SIMON JAMIESON Our SeniorLeadership Team 67

GENERAL MATT BALLESTY NIRUPA GEORGE Chief Casino Officer Chief Corporate Affairs Officer GENERAL Matt was appointed Chief Casino Officer in Nirupa joined SkyCity as Chief Corporate Affairs February 2021 and is responsible for managing Officer in June 2021 and is responsible for leading the casino operations at SkyCity’s largest SkyCity’s corporate affairs activities, including property in Auckland and providing strategic government, community and industry stakeholder direction on all gaming products across the relations and SkyCity’s public policy and advocacy. SkyCity Group. Before joining SkyCity, Nirupa was Chief of Staff to the Matt has over 25 years’ experience in the gaming Mayor of Auckland responsible for running his office and hospitality sector having held senior and executing the Mayor’s political priorities. Prior executive positions in Australia, New Zealand, to this, she ran Mayor Phil Goff’s successful mayoral Macau and Canada. Matt joined SkyCity originally campaign in 2016 and worked in Parliament as a in 2005, leading the Auckland gaming machines Political and Media Advisor. Early in her career, Nirupa business and returned in 2013 as General was a Senior Solicitor specialising in refugee and Manager Group Gaming Strategy after gaining humanitarian law. international gaming and hospitality experience Nirupa is currently a board member of Amnesty in Macau. International Aotearoa New Zealand and holds a Bachelor of Laws and a Bachelor of Health Science from the University of Auckland.

BOARD AND SENIOR LEADERSHIP TEAM STRUCTURE

SkyCity is committed to maintaining the highest standards of corporate behaviour and responsibility AD-HOC BOARD SUB-COMMITTEES and has adopted governance policies and procedures reflecting this. Our corporate governance (established to oversee SkyCity’s major projects) framework ensures Board accountability to shareholders and provides for an appropriate delegation of responsibilities to the Chief Executive Officer and Senior Leadership Team.

The SkyCity Board has responsibility for the affairs and activities of the company, which in practice is achieved through delegation to the Chief Executive Officer and Senior Leadership Team who are charged with the day-to-day leadership and management of the company. Further information on SkyCity’s corporate governance framework is set out on pages 128 – 137 of this annual report. SkyCity’s constitution and relevant charters and policies are available in the Governance section of the company’s website at www.skycityentertainmentgroup.com.

SKYCITY BOARD

STANDING BOARD COMMITTEES

Governance and Nominations Audit and Risk People and Culture Sustainability Committee Committee Committee Committee

CHIEF EXECUTIVE OFFICER Michael Ahearne

SENIOR LEADERSHIP TEAM

Chief Chief Operating Chief Operating Chief People General Counsel and Financial Officer Officer and Culture Officer Company Secretary Officer New Zealand Australia Claire Walker Jo Wong Julie Amey Callum Mallett David Christian

General Chief Chief Information Chief Manager Corporate Affairs Officer Casino Officer NZICC Glen McLatchie Matt Ballesty Officer Simon Jamieson Nirupa George

SkyCity Hamilton is located on the banks of the Waikato River. 69 In July 2021, the Sky Tower was once again awarded the SUSTAINABILITY Qualmark Gold Award. A Gold Award recognises the best sustainable tourism businesses in New Zealand and identifies businesses leading the way in making the Sustainability New Zealand tourism industry a world-class sustainable visitor destination. At SkyCity, we recognise that Setting Our Sustainability Framework sustainability is critical to all levels of and Strategy our business and operations. In 2016, after engaging with both internal and external stakeholders on which sustainability issues Part of being a responsible business were most relevant to SkyCity’s business, SkyCity is understanding the impacts arising adopted its first set of sustainability goals, priority actions and targets and developed a materiality from our operations. The aim of this matrix to identify a set of priority impact areas and understanding is to enable positive issues for the business. These were subsequently impacts to be fostered and negative refined in 2018 to incorporate global trends and impacts to be at the very least mitigated local market conditions in our approach to, and assessment of, risks and opportunities, culminating and ideally abated. This is particularly in a refreshed set of sustainability pillars. true when there is potential for harm to In early 2020, we commenced a review of our either people or the environment. materiality matrix to prioritise the issues most As a casino operator, we must continually focus on important to our business and stakeholders and our social licence to operate. SkyCity is committed to ensure the issues were appropriately weighted to maintaining the highest levels of sustainability in our sustainability strategy. As part of this review, objectives and practices, with priority given to internal and external stakeholders were asked minimising the impacts associated with problem to prioritise issues material to SkyCity’s business gambling as an area of primary focus. from a long list of potentially material issues via a desktop review. SkyCity’s sustainability strategy Our sustainability initiatives are focused on doing was subsequently refreshed to reflect the priorities good for our customers, our employees, our identified in that review and to incorporate communities, our suppliers, our environment and financial performance alongside social and our shareholders. Our objective is to ensure that our environmental performance. strategic decisions strengthen the communities we operate in and provide environments and opportunities for our customers, suppliers and staff to enjoy, to be entertained and to be safe.

Part of being a responsible business “is understanding the impacts arising from our operations ”

71 72 SkyCity Entertainment Group AnnualReportYear Ended30June2021 (as prioritisedby ourinternal andexternal stakeholders) Our Material Issues Business View 4.00 3.80 3.90 4.50 4.60 3.60 4.30 4.40 4.20 3.70 4.10 3.00 Growth Technology innovation 3.20

3.40 Business Business model Operational efficiency Community Community engagement & Iwi & Iwi 3.60 investment Return on on Return Theft & & Theft Stakeholder View fraud Community investment

3.80 Regulatory Regulatory risk

continuity Sustainable Business Business portfolio experience Customer Customer 4.00 Responsible Responsible security Cyber- Climate Climate hosting change Diversity 4.20 engagement Employee Employee Organisational Organisational structure 4.40 Health & safety 4.60 the Governance sectionof thecompany’s website Sustainability Committee Charter (available in the SustainabilityCommittee aresetoutinthe composition, structureandmembershipof sustainability activitiesandtherole,responsibilities, The guidingprinciplesthatunderpin SkyCity’s associated withSkyCity’s sustainabilitypillars. reporting to theBoardoncompany’s impacts objectives and performance, andreviewing and ensure alignmentwiththecompany’s strategic policies andpractices of thecompany to Board thesustainabilitystrategy, principles, include reviewing andrecommending to the The responsibilitiesof theSustainabilityCommittee focus. gambling asanareaof primary minimising theimpactsassociated withproblem of sustainabilityobjectives, withprioritygiven to is bestpractice andsupportsthehighestlevel ensuring thatthecompany’s sustainabilitystrategy contribute to SkyCity’s visionandstrategic planby Board committee thatassiststheSkyCity Boardto The SustainabilityCommittee isadedicated Governance performance. which underpinourreportingonnon-financial informed oursustainabilitystrategy andpriorities, our focus onmanagingSkyCity’s risks andhave The material issuesidentifiedhave influenced SkyCity operates. into alllevels of theorganisationandinway focus onembeddingoursustainabilitypillars in 2020)remainrelevant today. We continue to stakeholders aspartof themateriality review priorities (as validated by thefeedback fromour strategy andstrategic pillargoals,plansand global pandemic,SkyCity’s currentsustainability Despite thechallengespresented by theCOVID-19 other products. participants to create andassessresponsibleinvestment and funds practices. The FTSE4Goodindices areusedby awidevariety of market demonstrating strongEnvironmental, SocialandGovernance (ESG) Index Seriesisdesignedto measuretheperformance of companies Created by the globalindex provider FTSERussell,theFTSE4Good FTSE4Good Index Series. and hassatisfiedtherequirements to become a constituent of the has beenindependentlyassessedaccording to theFTSE4Good criteria, Russell Company) hasconfirmed that SkyCity Entertainment Group FTSE Russell(thetrading nameof FTSEInternational Limited andFrank external expectations. business strives to keep pace withinternal and performance indicators, whichwillensurethe performance oneachgoal,through specific key the coming years. We arecommitted to measuring dedicated framework for measuringprogressover to andprovide challengethebusinessandstaff a business andourcommunities. They areintended activities setoutwhatwe intend to dobothinour and for ourstakeholders. Ourobjectives and considered highlymaterial for SkyCity’s business The areasidentifiedaspriorityissues arethose non-financial disclosures. way throughouttheentiretyof ourfinancialand Shareholders’ pillarisprovided inanoverarching year onthe‘Our ended30June2021.Commentary achievement againstourprioritiesfor thefinancial strategy, of our andprovide asummary activities undertaken to supportoursustainability ‘Our Suppliers’andEnvironment’, outlinethe ‘Our Customers’, ‘OurPeople’,Communities’, and activitiesfor eachof thesustainabilitypillars– The following pagesoutlineourpriorities,objectives Our Pillars having day-to-day responsibilityfor theactivities. with key operational personnelwithinthebusiness responsibility for SkyCity’s sustainabilityactivities Chief PeopleandCultureOfficer, has executive effective management.ClaireWalker, SkyCity’s activities throughclearlydefined policyand ofoperational SkyCity’s sustainability supervision The BoardandSustainabilityCommittee maintain annual basis. is reviewed andapproved by theBoardonan at www.skycityentertainmentgroup.com), which Sustainability 73

SUSTAINABILITY Our Sustainability Vision SUSTAINABILITY To be a sustainable business, we must be a responsible business actively protecting and promoting the people we serve and the places we share, whilst creating value for our shareholders.

Suppliers

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PLACE

PEOPLE PLACE PROFIT

Inspire our people Protect our environments Create sustainable value

Create a great place to work Respect and protect our Ensure business continuity through where people are empowered physical environments for operational efficiency, sustainable to grow and achieve future generations investment and customer focus

Great, safe place to work Sustainable success Reliable return on investment

74 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 Sustainability 75 CUSTOMERS | Always put customers first | Be responsible leaders in our community COMMUNITY | Be responsible leaders in our communities Ensure safe and enjoyable experiences for our customers, employees and communities Serve a social purpose by investing in our local economies and communities SUSTAINABILITY Our Priorities Our Plan Material Issues Our Priorities Our Plan Material Issues

• Maintain industry-leading harm minimisation practices • Measure and evaluate SkyCity’s economic contribution Economic • Community investment • Responsible hosting to the communities in which we operate, through local • Host Responsibility Programme performance and problem contribution procurement spend • Community and Iwi gambling indicators • Customer experience Leading host engagement • Industry benchmarking of SkyCity’s Host Responsibility • Cybersecurity and • In collaboration with the SkyCity Community Trusts, make responsibility Building communities Programmes a positive impact on youth development, employment and data privacy by developing people career paths • Leverage technology to enhance the identification of actual • Regulatory risk or potential problem gamblers and act on that information Investing in our • Community based partnerships that achieve sustainable communities through the social change • Employee Host Responsibility training completion rates SkyCity Community Trusts • Report on community outcomes through narrative and case Customer experience • Accelerate customer experience and engagement through in New Zealand studies accompanied by quantitative results and engagement improved data, digital and loyalty capability Developing deeper • Build SkyCity’s confidence and capability to engage connections with Iwi and authentically with Māori and indigenous peoples Community awareness • Increase in community knowledge and understanding of indigenous peoples of harm minimisation SkyCity’s harm minimisation practices practices • Customer data security and privacy practices PEOPLE | Offer a great and safe place to work A great place to work where our people are empowered to grow and achieve SUPPLIERS | Be responsible leaders in our communities Source ethically and locally Our Priorities Our Plan Material Issues

Our Priorities Our Plan Material Issues Employee engagement • Employee engagement pulse checks • Employee engagement • Meaningful career and Low carbon • Encourage suppliers to set science-based targets and strive • Ethical sourcing Meaningful career and development pathways • Internal promotions and development opportunities supply chain to achieve zero carbon by 2050 development pathways • Diversity, inclusion and belonging • Serve meals from a sustainable supply chain • Leverage the competitive advantage SkyCity’s diverse to employees and customers • Health, safety and Diversity, inclusion workforce provides wellbeing • Source animal products responsibly (eg. free range eggs) and belonging Buy local • Ethnicity and gender reporting, including gender equality • Track and report on local vs international and seasonal of pay, and representation procurement spend Health, safety and • Support supplier diversity (indigenous economy) • Health, safety and wellbeing scorecards and working conditions wellbeing

Connect to the • Remove single-use plastics from our supply chain circular economy SHAREHOLDERS | Improve our operating performance | Optimise our Progress initiatives to • Develop and maintain a modern slavery statement for the existing portfolio | Grow and diversify our business | Always put customers first eliminate modern slavery purposes of the Modern Slavery Act 2019 (Cth) Create value and maintain our social licence to operate • Progressively work towards an end-to-end understanding Ethical supply chain of our supply chain, ensuring that all suppliers meet the Our Priorities Our Plan Material Issues standards of our Ethical Sourcing Code

• Strengthen and maintain good relationships with all Business continuity • Business continuity stakeholders, including shareholders and debt providers ENVIRONMENT | Be responsible leaders in our communities • Return on investment

Offer a great and safe place to work Improve operating • Grow gaming visitation and spend and develop • Operational efficiency Active commitment to reducing our environmental footprint performance complementary activities that drive gaming • Sustainable portfolio • Achieve operating efficiencies which protect and Our Priorities Our Plan Material Issues Optimise existing portfolio • Regulatory risk grow margins

Climate change/ • Measure, report and offset SkyCity’s • Climate change • Develop digital businesses and leverage investment emissions reduction carbon emissions in technology • Capital allocation balances short term returns and Reducing waste • Reduction of waste and diversion from landfill Grow and diversify long term sustainability our business • Ownership of assets balances strategic control and return Employee activation • Employee-led Green Fund on capital • Monitor and evaluate regional merger and acquisition Reduction in water use • Implement initiatives to reduce water use opportunities in our industry

76 SkyCity Entertainment Group Annual Report Year Ended 30 June 2021 Sustainability 77