For personal use only GAMES THEME PARKS ENTERTAINMENT For personal use only Kung Fu Panda, Madagascar, Shrek © DreamWorks Animation Ardent Leisure The People The Business Financial Reports Sustainability 04 Chairman’s message 10 Asset Locations 46 Income Statements 50 Committed to the Future & Statements of and Dreamworld Wildlife 06 CEO & Managing 12 Main Event Entertainment Comprehensive Income Foundation Director’s message 18 Health Clubs 47 Balance Sheets 08 Meet the Board and 24 Theme Parks Senior Management 48 Statement of Changes Dreamworld cover images 34 Bowling & Entertainment in Equity reproduced with permission. © 2015 The Wiggles Pty Ltd. 40 Marinas 49 Statement of Cash Flows Kung Fu Panda, Madagascar, Shrek © DreamWorks 48 Corporate Directory Animation. The fun starts here. Ardent Leisure Group is a leading leisure and entertainment business with a diverse portfolio of premier assets encompassing theme parks, tenpin bowling and family entertainment centres, health clubs and marinas. The businesses, owned and For personal use only operated by the publicly listed Ardent Leisure Group, have in common the delivery of outstanding guest experiences, exceptional customer service and exposure to growth markets. Our activities already span Australasia and are expanding across the United States. ARDENT LEISURE 3 THE PEOPLE Message from The Chairman Neil Balnaves AO elcome to Ardent Leisure. understanding across retail sales, product broadening the skills available in the The past 12 months have development, marketing, licensing, areas of marketing, tourism, investment W seen signifi cant changes communications, digital innovation, and new technology. to the strategic direction and culture of customer service and leadership. In the United States, the past the Group and I would like to take this The renewed customer focus, along 12 months has seen a measured opportunity to share the Board’s vision with our continued commitment to the acceleration of the development of with our investors, employees, partners Group strategy has been supported through new Main Event Entertainment centres. and other stakeholders. the appointment of two highly regarded With 20 centres, Main Event now In 2012, the Group commenced and experienced non-executive directors, represents the Group’s largest business a growth strategy for the Main Event Melanie Willis and David Haslingden. by contribution to earnings. The Group Entertainment business and this strategy Melanie is currently a non-executive will benefi t from further growth in US has seen that business increase its director of Mantra Group and Pepper earnings and the continued weakness of contribution to Group earnings from Group and has signifi cant experience in the Australian dollar against the US dollar. 14% in FY12 to 35% in FY15. The the global fi nancial, investment banking Main Event is now the fastest-growing Group will continue to execute on its and professional services sectors along bowling-anchored family entertainment United States growth strategy and will with extensive exposure to domestic and chain in the United States. The successful also drive increased revenue from the international leisure related businesses. launch of new Main Event Entertainment existing Australian brands through the delivery of superior customer experience and the development of leading edge “The past 12 months have seen signifi cant digital capabilities. changes to the strategic direction and culture of As part of the Group’s capital management strategy, in August the Group … [There has been] a refocus for the 2015 Ardent Leisure extended its Group squarely on the customer – the customer Australian and US dollar debt facilities experience, value proposition and service.” and increased its US dollar facility by US$120.0 million to US$280.0 million. This facility, along with the support from David is the non-executive chairman centres outside of Texas has validated a US-based institutional real estate of Nine Entertainment Co. Holdings the Group’s ability to operate outside investor of up to US$100.0 million, Limited and he also owns a network of of Texas. Expansion across the Southern combined with the use of both the television production companies. David and Mid-West states continues with Distribution Reinvestment Plan and has extensive international experience seven new centres scheduled to be retainedFor personal use only earnings, will provide fi nancing working for Fox Networks Group and opened in FY16, of which six are for the planned expansion of Main Event as CEO of Fox International Channels. outside of Texas, and another eight over the next two years. His international relationships will be sites signed off for FY17. The appointment of Deborah Thomas of benefi t to the Board as the Group The Group’s Goodlife Health Club as Group CEO in March 2015 signalled expands its operations further in business has seen improved membership a refocus for the Group squarely on the the United States. growth and attrition levels as the customer – the customer experience, These appointments serve to conversion of clubs to 24-hour, seven day value proposition and service. Deborah strengthen the Board in key commercial a week operation counters the challenge has a wealth of experience and areas and strategic direction as well as from low-cost franchise 24/7 clubs. 4 ARDENT LEISURE / ARDENTLEISURE.COM THE PEOPLE While the sector remains highly competitive, Goodlife is positioned to compete strongly through the combination of 24/7 access, a broad service offering and superior customer service. In Queensland, the Theme Park division has seen a renewed drive to strengthen the customer service culture and to improve customer experience through people, service and unique entertainment offerings and products. The division is expected to directly benefi t from the nearby Coomera Town Centre development, the Gold Coast Commonwealth Games in 2018 and the anticipated increase in inbound international tourism to the area. Dreamworld, SkyPoint and WhiteWater From top: The exterior design of the Main Event Entertainment centres in the US; Goodlife Health World will further develop their unique Clubs are generating improved sales by changing to 24/7 operation. experiences including the Indigenous precinct of Dreamworld Corroboree, The Bowling division, comprising by a portfolio rationalisation to ensure that Tiger Island and SkyPoint Climb. the AMF and Kingpin brands, is set to our venues offer the best experiences in Dreamworld’s focus on endangered transition from predominantly single the right locations. species and education about conservation, activity bowling centres to contemporary, In our Marina division we are combined with the public’s support, multi-attraction venues combining the seeking to identify opportunities to create has raised over A$2 million for wildlife variety of entertainment that has made world-class leisure and entertainment conservation projects. This internationally Main Event successful. This will include hubs in strategic locations to drive recognised fund is committed to quality food and beverages and a greater patronage and a sense of community. projects that protect threatened and focus on amusement machines. The Group is also investigating endangered wildlife. The highly successful launch of the opportunities to maximise the use of The focus on improving customer multi-attraction Kingpin in Darwin in land adjacent to our marina berths to For personal use only experience was recognised during August 2015 has shown the possibilities create leisure venues in what are some the year with Dreamworld voted of family entertainment centres based on of Sydney’s most beautiful locations. Queensland’s Best Major Tourist a Main Event model in Australia in key On behalf of the Board, I would Attraction and Australia’s Third Most strategic locations. The key learnings from like to thank our customers, investors, Popular Tourist Attraction in the National this and the US will inform a signifi cant business partners and employees Tourism Awards. Dreamworld was also investment in a fl agship venue located in for their support throughout the year. named the top amusement / water Melbourne’s popular Crown Casino. I know that our stakeholders share the park in the South Pacifi c in the annual The Bowling division’s repositioning excitement and enthusiasm for the TripAdvisor Travellers’ Choice awards. to multi-entertainment will be supported opportunities ahead. ARDENT LEISURE 5 THE PEOPLE Message from The Group Chief Executive Offi cer Deborah Thomas elcome. As the recently our online transactional capabilities feedback about what they do and don’t appointed CEO of Ardent with upgraded websites at Goodlife, like, as well as offer new experiences W Leisure Group, it is my AMF Bowling and Main Event. and targeted offers that suit particular pleasure to update you on how our Recently we completed a strategic customer interests, demographics, business is performing, and share our review of the sales and marketing location and budget. strategy to deliver growth and improved functions across our businesses to We have commenced building performance in the future. identify revenue growth opportunities. a digital marketing platform to create Put simply, our businesses create These opportunities include better a single source of customer data. the best value leisure and entertainment ways to leverage our partnerships with This will facilitate a targeted loyalty experiences for our customers across leading entertainment brands