nine entertainment co. holdings limited :: 30 June 2016 Nine Entertainment Co. Holdings Limited ABN 60 122 203 892 25 August 2016: Nine Entertainment Co. Holdings Limited (ASX: NEC) today announced the Preliminary Final Results for the year ended 30 June 2016 (FY16). Attached are the following documents relating to the Nine Entertainment Co. Holdings Limited results for this period. 1. Appendix 4E 2. FY16 audited Financial Report For personal use only nine entertainment co. holdings limited :: Appendix 4E – 30 June 2016 Appendix 4E (Rule 4.3A) For the year ended 30 June 2016 Results for Announcement to the Market Key Financial Information1 Jun 2016 Jun 2015 $’000 $’000 Revenue from ordinary continuing activities, excluding specific items Down 6% to 1,286,360 1,373,557 Profit/(loss) from ordinary continuing activities after tax attributable to n/a2 33,223 (597,624) members Net profit from ordinary activities after tax, excluding specific items Down 15% to 121,894 140,096 Refer to the attached Financial Report, Results Announcement and Investor Presentation for management commentary on the results. Dividends A final fully franked dividend of 4.0c has been declared payable on 19 October 2016. Franked amount Tax rate for Amount per share per share franking credit Dividends cents cents % Interim 2016 dividend per share (paid 19 April 2016) 8.0 8.0 100% Final 2016 dividend per share (to be paid 19 October 2016) 4.0 4.0 100% The final 2016 dividend was declared following the approval by the Directors of the 30 June 2016 Financial Report. Final 2016 Dividend Dates Ex-dividend date 5 September 2016 Record date 6 September 2016 Payment date 19 October 2016 Net Tangible Assets per Share 2016 2015 Reported cents cents Net tangible asset backing per ordinary share 28.8 8.3 Net asset backing per ordinary share 141.6 119.8 1 Additional Appendix 4E disclosure requirements can be found in the Directors’ Report and the 30 June 2016 Financial Report. 2 The percentage increase from the prior corresponding period has not been included as the movement from loss to profit cannot be expressed as a % movement. The dollar movement from the prior corresponding period is an increase of $630.8 million. For personal use only nine entertainment co. 24 artarmon rd willoughby nsw 2068 tel +61 2 9906 9999 fax +61 2 9965 2215 ABN 60 122 203 892 www.nineentertainment.com.au nine entertainment co. holdings limited :: Financial Report – 30 June 2016 Nine Entertainment Co. Holdings Limited ABN 60 122 203 892 Financial Report for the year ended 30 June 2016 For personal use only nine entertainment co. holdings limited :: Financial Report – 30 June 2016 Contents Directors’ Report ............................................................................................................................................................................. 2 Remuneration Report – Audited .................................................................................................................................................... 9 Operating and Financial Review .................................................................................................................................................. 32 Consolidated Statement of Comprehensive Income .................................................................................................................. 37 Consolidated Statement of Financial Position ........................................................................................................................... 38 Consolidated Statement of Cash Flows ...................................................................................................................................... 39 Consolidated Statement of Changes in Equity ........................................................................................................................... 40 Notes to the Consolidated Financial Statements ....................................................................................................................... 41 Directors’ Declaration ................................................................................................................................................................... 97 Independent Auditor’s Report to the Members of Nine Entertainment Co. Holdings Limited ............................................. 98 For personal use only nine entertainment co. 24 artarmon rd willoughby nsw 2068 tel +61 2 9906 9999 fax +61 2 9965 2215 ABN 60 122 203 892 www.nineentertainment.com.au 1 nine entertainment co. holdings limited :: Financial Report – 30 June 2016 Directors’ Report The Directors present the financial report for the year ended 30 June 2016. The financial report includes the results of Nine Entertainment Co. Holdings Limited (the “Company”) and the entities that it controlled during the year (the “Group”). Directors The Directors of the Company at any time during the financial year or up to the date of this report were as follows. Directors held office for the entire period unless otherwise stated. Name Title Date Appointed Date Resigned Peter Costello Independent Non-Executive Chairman 1 6 February 2013 Hugh Marks Chief Executive Officer 2 6 February 2013 David Haslingden Independent Non-Executive Chairman 6 February 2013 1 March 2016 Kevin Crowe Jr Non-Executive Director 6 February 2013 13 November 2015 Elizabeth Gaines Independent Non-Executive Director 1 March 2016 David Gyngell Non-Executive Director 3 25 November 2010 Holly Kramer Independent Non-Executive Director 6 May 2015 Steve Martinez Independent Non-Executive Director 4 6 February 2013 9 May 2016 Catherine West Independent Non-Executive Director 9 May 2016 1 Mr Costello was an independent Non-Executive Director of the Company until 1 March 2016, when he was appointed as Chairman. 2 Mr Marks was an independent Non-Executive Director of the Company until 10 November 2015, when he was appointed Chief Executive Officer. 3 Mr Gyngell was Chief Executive Officer of the Company until his resignation from that role which took effect on 30 November 2015. 4 Mr Martinez became an independent Director on 23 November 2015, when the Apollo group sold its remaining shareholding in the Company. Peter Costello (Independent Non-Executive Chairman) Mr Costello was appointed to the Board in February 2013 as an independent, Non-Executive Director and in March 2016 was appointed Chairman of the Board. He is also a member of the Nomination & Remuneration Committee. Mr Costello is currently Chairman of the Board of Guardians of Australia’s Future Fund and serves on a number of advisory boards. He is a Trustee of Melbourne Cricket Ground. His business ECG Financial Pty Ltd is a boutique advisor on mergers and acquisitions, foreign investment, competition and regulatory issues which affect business in Australia. Mr Costello served as a member of the House of Representatives from 1990 to 2009 and was Treasurer of the Commonwealth of Australia from March 1996 to December 2007. Prior to entering Parliament Mr Costello was a barrister. He has a Bachelor of Arts and a Bachelor of Laws LLB (Hons) and a Doctorate of Laws (Honoris Causa) from Monash University. In 2011 Mr Costello was appointed a Companion of the Order of Australia. David Haslingden (Independent Non-Executive Chairman) Mr Haslingden served as an independent, Non-Executive chairman for the Company from 6 February 2013 to 1 March 2016. Hugh Marks (Director and Chief Executive Officer) Mr Marks was appointed Chief Executive Officer of Nine Entertainment Co. in November 2015. Prior to this, Mr Marks had been an independent, Non-Executive Director since February 2013. Mr Marks has almost 20 years’ experience as a senior Executive in content production and broadcasting in Australia and overseas. Prior to his appointment as CEO, Mr Marks owned talent management agency RGM Artists and had ownership and management interests in a number of independent companies producing content for broadcast and pay TV. Before joining the Board, Mr Marks was an authority member for the Australian Communications and Media Authority for over two years. Previously, Mr Marks was Chief Executive Officer of the Southern Star Group. Mr Marks has also worked with the Nine Network as legal counsel and then as Director of Nine Films & Television for seven years. Mr Marks received a Bachelor of Commerce and Bachelor of Laws from the University of New South Wales. Kevin Crowe Jr (Non-Executive Director) Mr Crowe served as a nominee of Apollo Management (“Apollo”) for the Company from 6 February 2013 to 13 November 2015. For personal use only nine entertainment co. 24 artarmon rd willoughby nsw 2068 tel +61 2 9906 9999 fax +61 2 9965 2215 ABN 60 122 203 892 www.nineentertainment.com.au 2 nine entertainment co. holdings limited :: Financial Report – 30 June 2016 Directors’ Report (continued) Elizabeth Gaines (Independent Non-Executive Director) Ms Gaines was appointed to the Board in March 2016 as an Independent, Non-Executive Director and is the Chair of the Audit and Risk Committee. Ms Gaines was previously the CEO of ASX listed Helloworld, a travel distribution business operating in the brick and mortar and online retail sector. Ms Gaines' executive career included extensive experience in financial services, construction, infrastructure and media in both the UK and Australia. Ms Gaines is currently a Non-Executive Director of Fortescue Metals Group Limited, Next DC Limited and ImpediMed Limited and she was appointed a Commissioner of Tourism Western