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15 February 2012 Company Announcements Office Australian Stock Exchange Exchange Centre, Level 6 20 Bridge Street Sydney NSW 2000 AUSTRALIA Dear Sir/Madam RE : SKYCITY ENTERTAINMENT GROUP LIMITED – SKC

INTERIM RESULT (FOR THE SIX MONTHS TO 31 DECEMBER 2011) We supply herewith the financial information as required by Listing Rule 4.2A together with a copy of the company’s FY12 Interim Result presentation and the SKYCITY Entertainment Group Limited financial statements for the six month period ended 31 December 2011. Please find attached: 1. Appendix 4D (ASX Listing Rule 4.2A) detailing the Preliminary Announcement for

the six month period ended 31 December 2011. 2. FY12 Interim Result for the six month period ended 31 December 2011. 3. Copy of Appendix 7 (as required by NZX Listing Rule 7.12.2) detailing the interim

distribution of 9.0 cents per ordinary share to be paid on 5 April 2012 to those shareholders on the company’s share register as at 5.00pm on 22 March 2012.

4. Financial statements and notes for the six month period ended 31 December 2011. 5. ASX Listing Rule 4.2A.2 declaration by directors in respect of the half year financial

statements and notes. 6. A media release. Yours faithfully

James Burrell Chief Financial Officer

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SKYCITY Entertainment Group Limited ASX Preliminary final report For the six months ended 31 December 2011 (Previous corresponding period for the six months ended 31 December 2010) Lodged with the ASX under Listing Rule 4.2A.3 Contents Results for Announcement to the Market 2-3 (Appendix 4D item 2) Other Appendix 4D Information 4-5 (Appendix 4D items 3 to 9) Additional Information 5-6

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SKYCITY Entertainment Group Limited Half Year ended 31 December 2011

(Previous corresponding period: Half Year ended 31 December 2010)

Results for Announcement to the Market

All figures are NZ$ unless otherwise stated

Normalised $NZ’000 Normalised revenue including gaming GST from ordinary activities and including interest revenue

up 9.4% to 488,980

Normalised revenue from ordinary activities and including interest revenue up 9.0% to 446,857

Normalised profit/(loss) from ordinary activities after tax attributable to members up 14.2% to 77,032

Normalised net profit/(loss) for the period attributable to members up 14.2% to 77,032

Note: Normalised results adjust for non-recurring items and setting International Business win to theoretical win rate of 1.35%.

Reported $NZ’000 Reported revenue including gaming GST from ordinary activities and including interest revenue

up 10.3% to 494,003

Reported revenue from ordinary activities and including interest revenue (Appendix 4D item 2.1)

up 9.9% to 451,282

Reported profit/(loss) from ordinary activities after tax attributable to members (Appendix 4D item 2.2)

up 17.4% to 78,826

Reported net profit/(loss) for the period attributable to members (Appendix 4D item 2.3)

up 17.4% to 78,826

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Dividends/distributions (Appendix 4D item 2.4)

Amount per security Franked amount per security

Interim dividend 9.00 ¢ 5.4 ¢

Final dividend (prior year) 8.00 ¢ 4.8 ¢

Record date for determining entitlements to the dividend (Appendix 4D item 2.5) Explanation of Revenue (Appendix 4D item 2.6) Reference should be made to the Company’s FY12 Interim Result Presentation which provides detail and explanatory comment on operating and financial performance. Explanation of Dividends (Appendix 4D item 2.6) On 15 February 2012, the directors resolved to provide for an interim dividend to be paid in respect of the six months ended 31 December 2011. The 60% imputed/60% franked dividend of 9 cents per share will be paid on 5 April 2012 to all shareholders on the company's register at the close of business on 22 March 2012.

22 March 2012

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SKYCITY Entertainment Group Limited Supplementary Appendix 4D information

NTA Backing (Appendix 4D item 3) 2011 2010 Net tangible asset backing per ordinary share 68.0¢ 63.2¢ Controlled entities acquired or disposed of (Appendix 4D item 4) Acquired N/A Date control gained Contribution to profit from ordinary activities after tax in current period, where material

Profit from ordinary activities after tax during the whole of the previous corresponding period, where material

Disposed of N/A Date control lost Contribution to profit from ordinary activities after tax in current period, where material

Profit from ordinary activities after tax during the whole of the previous corresponding period, where material

Additional dividend information 1Details of dividends declared or paid during or subsequent to the half year ended 31 December 2011 are as follows:

(Appendix 4D item 5)

Record date Payment date Type Amount

per security

Total dividend /

distribution

Franked amount

per security

Foreign sourced dividend amount

per security

22 March 2012 5 April 2012 Interim 9.00 cents $51,926,000 5.4 cents 9.00 cents 30 September 2011 7 October 2011 Final 8.00 cents $46,079,000 4.8 cents 8.00 cents 18 March 2011 1 April 2011 Interim 8.00 cents $46,009,000 4.8 cents 8.00 cents Dividend reinvestment plans (Appendix 4D item 6) The dividend reinvestment plan will not be available for the April 2012 dividend payment.

1 Dividends declared between the end of the financial period and the completion of this report that have not been provided

for in the interim accounts are to be included in this disclosure.

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SKYCITY Entertainment Group Limited Supplementary Appendix 4D information

Associates and Joint Venture entities (Appendix 4D item 7) Name Ownership

interest Aggregate share of

profits/(losses), where material

Contribution to net profit, where material

2011 %

2010 %

2011 NZ$000

2010 NZ$000

2011 NZ$000

2010 NZ$000

Christchurch Casinos Limited

50.0 50.0 2,419 3,222

Foreign Accounting standards (Appendix 4D item 8) The company prepares its accounts pursuant to New Zealand International Financial Reporting Standards Audit (Appendix 4D items 9) This report is based on accounts that have been the subject of a review by the company’s auditor. Their review report is provided with this preliminary final report. Additional information N/a Earnings per share Amount (cents per

share) Percentage change

Reported 13.7 17.1% Normalised 13.4 14.5%

Reported earnings per share for the six months to 31 December 2011 year were 13.7 cents per share (31 December 2010: 11.7 cents per share). Normalised earnings per share for the six months to 31 December 2011 year were 13.4 cents per share (31 December 2010: 11.7 cents per share). “Normalised” eliminates non-recurring items and adjusts International VIP commission business win rate to theoretical. Discontinued Operations N/a F

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Results of Segments

Half year ended 31 December 2011

SKYCITY Auckland

Rest of New Zealand

SKYCITY Adelaide

SKYCITY Darwin

International Business

Corporate / Group Total

$'000 $'000 $'000 $'000 $'000 $'000 $'000

Revenue from external customers and other revenue 228,121 27,001 93,683 75,658 24,400 - 448,863 Share of net profits of associate - 2,419 - - - - 2,419 Total sales revenue 228,121 29,420 93,683 75,658 24,400 - 451,282 Less Expenses (118,288) (15,317) (69,951) (48,849) (15,818) (14,828) (283,051) Depreciation and amortisation (19,495) (2,874) (5,301) (5,754) - (2,812) (36,236) Segment profit/(loss) (Earnings before Interest and Tax) 90,338 11,229 18,431 21,055 8,582 (17,640) 131,995

Finance costs - net (25,498) Profit before income tax 106,497 Half year ended 31 December 2010

SKYCITY Auckland

Rest of New Zealand

SKYCITY Adelaide

SKYCITY Darwin



$'000 $'000 $'000 $'000 $'000 $'000 $'000

Revenue from external customers and other revenue 201,438 24,716 88,067 74,876 18,328 - 407,425 Share of net profits of associate - 3,222 - - - - 3,222 Less Expenses (104,583) (14,121) (67,309) (48,428) (12,295) (13,033) (259,769) Depreciation and amortisation (17,327) (2,512) (5,319) (5,875) - (3,488) (34,521) Segment profit/(loss) (Earnings before Interest and Tax) 79,528 11,305 15,439 20,573 6,033 (16,521) 116,357

Finance costs - net (23,180) Profit before income tax 93,177 Year end ended 30 June 2011

SKYCITY Auckland

Rest of New Zealand

SKYCITY Adelaide

SKYCITY Darwin



$'000 $'000 $'000 $'000 $'000 $'000 $'000

Revenue from external customers and other revenue 396,208 49,652 180,436 136,539 41,571 - 804,406 Share of net profits of associate - 5,976 - - - - 5,976 Less Expenses (205,522) (28,343) (135,629) (91,840) (25,356) (29,416) (516,106) Impairment of Christchurch Casino (15,000)) (15,000)) Depreciation and amortisation (35,089) (5,619) (10,976) (12,030) - (5,996) (69,710) Segment profit/(loss) (Earnings before Interest and Tax) 155,597 6,666 33,831 32,669 16,215 (35,412) (209,566)

Finance costs - net (43,772) Profit before income tax 165,794

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Half Year Result Presentation Six month period ended 31 December 2011

15 February 2012

SKYCITYEntertainmentGroup Limited

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1H12 Result Presentation 2

SKYCITY Interim Result 1H12

Appendices and Financial Summaries 21

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www.skycityentertainmentgroup.com

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1H12 Result Presentation

1H12 Result Highlights

1H12 1H11 Movement$m $m $m %

Reported Revenue (incl Gaming GST) 494.0 447.7 46.3 10.3%

Reported EBITDA 168.2 150.9 17.3 11.5%

Reported NPAT 78.8 67.1 11.7 17.4%

Reported EPS 13.7cps 11.7cps 2.0cps 17.1%

Dividend 9.0cps 8.0cps 1.0cps 12.5%

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Normalised Revenue (incl Gaming GST) 489.0 447.1 41.9 9.4%

Normalised EBITDA 165.5 151.4 14.1 9.3%

Normalised NPAT 77.0 67.4 9.6 14.2%

The difference between Normalised and Reported can be seen on page 34

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Record first half financial results, with Reported NPAT of $78.8m +17.4% on 1H11

Reported Revenue and EBITDA of $494.0m (+10.3%) and $168.2m (+11.5%)

Flagship Auckland Revenues $268.9m, up $33.8m (+14.4%)

Rugby World Cup 2011 was a one‐off boost to Revenue of $11.5m, EBITDA of $6.5m and NPAT of $4.7m

1H12 Result Highlights

Excluding RWC, we estimate that NPAT would have been $74m – up 10.4% on 1H11

Momentum continues in core gaming business

Strong momentum in Auckland Table Games following the opening of Horizon and Eight

$50m developments in Auckland completed on time and on budget; annualised post tax return of 15%

Auckland Gaming Machines Revenue growth of 17%, following upgrade and development of VIP rooms

Major expansion opportunities are progressing

Ongoing negotiations with NZ Government on the National Convention Centre in Auckland

Continuing discussions with SA Government on Adelaide re‐development and expansion

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o g o o o op p o

Cash flows and current and future debt provide capacity to fund major expansions

Strong balance sheet with Net Debt : EBITDA of 2.0 times and $585m committed undrawn facilities

Including new attractively priced 7‐year $185m bank facility which will be partly used to repay the $256m USPP due in March 2012

Reported 1H12$m1H11$m

Movement $m %

Revenue (including Gaming GST)

Gaming GST

494.0

42.7

447.7

37.1

46.3

(5.6)

10.3%

(15.1%)

1H12 Group ResultReported Revenues and Earnings

Revenue 451.3 410.6 40.7 9.9%

Expenses 283.1 259.7 (23.4) (9.0%)

EBITDA 168.2 150.9 17.3 11.5%

Depreciation and Amortisation 36.2 34.6 (1.6) (4.6%)

EBIT 132.0 116.3 15.7 13.5%

Interest Cost 25.5 23.2 (2.3) (9.9%)

N t P fit B f T 6 %

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Revenue (including Gaming GST) is shown above to facilitate Australasian comparisons. It also facilitates period on period comparisons given the GST rate increase in New Zealand on 1 October 2010 from 12.5% to 15% Normalised NPAT adjusts for non‐recurring items and International Business (IB) at theoretical win rate of 1.35% from 1.64% in 1H12 (1H11: 1.39%)

Net Profit Before Tax 106.5 93.1 13.4 14.4%

Tax and Minority Interest 27.7 26.0 (1.7) (6.5%)

Reported NPAT 78.8 67.1 11.7 17.4%

Normalised NPAT 77.0 67.4 9.6 14.2%For

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1H12 Revenue Summary by Business Unit(incl Gaming GST)

1H12$m

1H11$m

Movement $m %

New Zealand Casinos

Auckland 268.9 235.1 33.8 14.4%

Hamilton 26.5 23.3 3.2 13.7%

Christchurch 2.5 3.3 (0.8) (24.2%)

Queenstown, Other 4.1 4.1 0.0 0.0%

Total New Zealand 302.0 265.8 36.2 13.6%

Australian Casinos

Adelaide (A$) 82.6 77.3 5.3 6.9%

Darwin (A$) 63.6 63.5 0.1 0.2%

Total Australia (A$) 146.2 140.8 5.4 3.8%

Total Australia (NZ$) 187.0 181.3 5.7 3.1%

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Casino Revenues incl Normalised IB (incl Gaming GST) 489.0 447.1 41.9 9.4%

Adjust International Business to actual win rate 5.0 0.6 4.4

Reported Revenue incl Actual IB (incl Gaming GST) 494.0 447.7 46.3 10.3%

Revenue (including Gaming GST) is shown above to facilitate Australasian comparisons. It also facilitates period on period comparisons given the GST rate change in New Zealand on 1 October 2010Normalised Revenue is adjusted for IB at theoretical win rate of 1.35%. Actual 1H12 win rate of 1.64% (1H11 win rate: 1.39%)Average NZD/AUD cross‐rate during 1H12 0.7835 and 1H11 0.7795

1H12 EBITDA Summary by Business Unit

1H12$m

1H11$m

Movement $m %

New Zealand Casinos

Auckland 114.4 101.0 13.4 13.3%

Hamilton 11.0 10.0 1.0 10.0%

Christchurch 2.5 3.3 (0.8) (24.2%)

Queenstown, Other 0.5 0.4 0.1 25.0%

Total New Zealand 128.4 114.7 13.7 11.9%

Australian Casinos

Adelaide (A$) 19.2 17.0 2.2 12.9%

Darwin (A$) 20.8 20.7 0.1 0.5%

Total Australia (A$) 40.0 37.7 2.3 6.1%

Total Australia (NZ$) 51.0 48.7 2.3 4.7%

C C ( ) ( ) ( ) ( 8%)

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Normalised EBITDA is adjusted for non‐recurring items (NRI) and IB at theoretical Average NZD/AUD cross‐rate during 1H12 0.7835 and 1H11 0.7795

Corporate Costs (13.9) (12.0) (1.9) (15.8%)


Non‐recurring itemsInternational Business to actual win rate

(0.8)3.5

(0.9)0.4

0.13.1

11.1%

Reported EBITDA 168.2 150.9 17.3 11.5%For

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Strong fundamentals in our core Auckland gaming businesses, in particular: over the four month period since ‘EIGHT’ opened on

31 August 2011 to 31 December, total table games drop increased by over 20% and revenues by 11%

Auckland Highlights

momentum continues in 2H12, with table games drop continuing to be up over 20% in the period 31 August 2011 to 12 February 2012

international business turnover of $1.4 billion, up 26% on pcp and 195% against 1H10

IB turnover for the FY12 period to 12 February 2012 is up 45% on pcp

1H12 gaming machine revenues of $118 million, up 17%

Growth attributable to $50 million revitalisation of the Auckland property including:

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Auckland property, including: the continued growth in our International Business

following the opening of our ‘Horizon’ suites and salons

the domestic tables VIP facility, ‘EIGHT’ the ‘Diamond’ gaming machines room (enhanced

customer segmentation)

Non‐gaming revenues grew by $13 million, up 23%, largely due to the successful opening of new bars and restaurants on Federal Street and solid Hotels performance over RWC 2011

Annualised post tax return on capital of the $50m

Auckland Highlights

Annualised post tax return on capital of the $50m Capex is forecast to be in excess of 15%

One‐off benefit of RWC 2011, which added just under $11 million Revenue and $6 million EBITDA in Auckland

Excluding RWC, our core Auckland business showed strong underlying growth trends, with revenue up by 10% and EBITDA up more than 7%

The new ‘Bally’ gaming system will be launched in

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Auckland in 2H12, at a cost of approximately $10m

will further improve our approach to customer loyalty, customer segmentation, marketing execution, brand offering and host responsibilityF

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Negotiations continue with the New Zealand Government on the development of New Zealand’s International Convention Centre in Auckland

since the re‐election of the National Government in November 2011, discussions have been progressing

New Zealand International Convention Centre

p g g

we remain focused upon successfully negotiating an outcome which would see SKYCITY investing $350 million to deliver an iconic Convention Centre for New Zealand

In return, we are seeking:

an early renewal of the Auckland casino licence beyond 2021

an increase in gaming product to meet demand and provide for future growth, and

changes to gaming regulations which would increase the efficiency and

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attractiveness of the offering we are able to provide our customers

Shareholders should remain assured that unless we are confident of achieving acceptable returns on capital, the project will not proceed


Preliminary Concept Drawing

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Our Hamilton property continues to perform well, with revenues of $26.5 million up $3.2 million (+13.7%) on pcp

of this, we estimate revenue of circa $0.8 million is due to Rugby World Cup visitors who were present during the early stages of the tournament

Other New Zealand Highlights

p g y g

excluding RWC, underlying revenue growth remains strong at circa 10% on pcp

The addition of a 4+ star hotel with 135 rooms above our Hamilton property is being considered

we continue to believe this development would bring much needed quality hotel accommodation to central Hamilton and significantly improve the facilities that we are able to offer to our customers in a market which continues to demonstrate growth

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Christchurch has not performed as strongly in the first half due to some shift in machine play from the CBD to the suburbs, as well as general local economic conditions. Nonetheless, we remain supportive of the casino and its longer term prospectsFor

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Adelaide has continued the strong momentum experienced since 2H11 revenue of A$83 million is up 6.9% and EBITDA of A$19 million is up 12.9% on pcp strong volume growth in table games increased revenue by more than 7% to A$41 million gaming machines delivered nearly 9% revenue growth, to A$33 million

Adelaide Highlights

We believe the opportunity to redevelop the Adelaide Casino into a truly world class integrated entertainment facility, set amidst the redeveloped Adelaide Oval and expanded Adelaide Convention Centre represents an outstanding growth opportunity for SKYCITY

The South Australian State Government’s Master Plan for the redevelopment of the Adelaide Riverbank Precinct provides for a significant expansion and redevelopment of the Adelaide Casino would potentially allow SKYCITY to create a truly world class integrated entertainment facility,

featuring a boutique 5 star hotel, signature restaurants and bars, a spa and roof top pool lounge and expanded gaming facilities including International and VIP gaming suites and salons

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We are working closely with the Casino Task Force regarding the future regulatory framework for the Adelaide Casino. The outcome of these discussions will allow us to determine whether to proceed or not with progressing our plans for the transformation of the Adelaide Casino

While we are excited about the outstanding growth opportunity this transformational project potentially represents for SKYCITY, shareholders should be assured that this project will only proceed if we can be confident of achieving an acceptable return on the potential investment

Adelaide Riverbank Development Concept

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Adelaide Riverbank Development Concept

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Darwin gaming revenues are now returning to growth and after several periods of decline EBITDA has now also returned to modest growth

Darwin Highlights

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local table games in particular had a strong first half, with revenue growth +12%

Our Lagoon Resort is on budget (A$40m) and is scheduled to open on time, in July this year

The resort includes a number of International VIP Villas and gaming pavilions, which will provide our Darwin property the opportunity to compete in the International VIP market

Thi t th ith th tl d b i l fli ht di t f Si D i ’

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This, together with the recently announced business class flights direct from Singapore, Darwin’s proximity to Asia and the recently announced $32 billion Inpex Ichthys LNG project, gives us confidence that our Darwin property has a very bright future

Additionally, the SKYCITY Darwin casino licence has been extended for a further five years to 30 June 2031For

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Net Debt : EBITDA of 2.0 times and $585m committed undrawn facilities. Total cash of $104m at 1H12

Debt position was enhanced in 1H12 by a new attractively priced $185m 7‐year commitment from our local bank syndicate

Well Funded for Future Growth

this is the first such 7‐year bank funding provided in New Zealand for more than a decade it is part term loan, part revolving loan, providing flexibility around drawdown timing

When the $256m USPP is repaid in March 2012, there are no further debt maturities until FY15 (the $200m 3‐year maturity has been extended to January 2015)

This debt profile provides flexibility for potential capex plans and leaves the company well funded for future growth: a further $94m Capital Notes are held as treasury stock available to be placed in the market.

Capital notes currently yield 6 75%

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Capital notes currently yield 6.75% additional financing sources are available if required (such as local bank market, USPP, etc)

We are confident that we have the potential capacity to fund both our planned NZICC development and potential Adelaide developments from existing resources, operational cash flows and current and future debt facilities, while maintaining our policy to pay dividends within the 60‐70% NPAT band

Interim dividend of 9.0 cps is up 1.0 cent (+12.5%) on 1H 11

represents 66% of Group Reported NPAT, in line with policy range of 60%‐70%

includes upside from the additional RWC 2011 earnings

Interim Dividend of 9.0 cents per share

60% imputed at the company’s 28% tax rate in New Zealand

60% franked for Australian purposes

Payment date 5 April 2012 (entitlement/record date 22 March 2012)

Interim dividend represents an annualised gross dividend yield of 6.1% based on the current share price of $3.63

Due to the current stage of the negotiations between SKYCITY and the NZ Government in

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Due to the current stage of the negotiations between SKYCITY and the NZ Government in relation to the proposed New Zealand International Convention Centre, SKYCITY considers that it is prudent and appropriate not to apply the Dividend Reinvestment Plan at this time. The company will review this again at the time of the final dividend for FY12For

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Group results in January and February 2012, have continued the momentum of the first six months

we continue to capitalise on the investments made and strategies put in place

Momentum Continuing – Strong Outlook for FY12

Total group revenues, in the year to date to 12 February 2012 including normalised international are up 10.0% on pcp, compared to 9.4% at 1H12

Given:

the strong first half results

the continued momentum we have experienced in January and February

the turnaround in our Auckland table games

a strong Chinese New Year, with our Horizon suites and salons in strong demand

th f i A kl d

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the success of our capex programme in Auckland

we expect our normalised Net Profit for FY12 to be at the top end of our previous guidance range – in the high $140 millions

AppendixAppendix

Half Year Period Ended31 December 2011

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1H12$m

1H11$m

Movement $m %

Revenues

Machines 117.9 101.0 16.9 16.7%

Tables – Local 60.5 60.8 (0.3) (0.5%)

SKYCITY Auckland– including Normalised IB

Tables – International (Normalised) 18.6 14.8 3.8 25.7%

Gross Gaming Revenue (incl GST) 197.0 176.6 20.4 11.6%

Food and Beverage 23.1 18.8 4.3 22.9%

Hotels and Conventions 36.9 28.8 8.1 28.1%

Sky Tower, Parking, Other 11.9 10.9 1.0 9.2%

Non‐Gaming Revenue 71.9 58.5 13.4 22.9%

Total Revenue (incl gaming GST) 268.9 235.1 33.8 14.4%

Gaming GST 24.6 20.7 (3.9) (18.8%)

Total Revenue (excl gaming GST) 244.3 214.4 29.9 13.9%

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( g g ) 3 9 9 3 9

Expenses 129.9 113.4 (16.5) (14.6%)

Normalised EBITDA including IBEBITDA Margin

114.442.5%

101.043.0%

13.4 13.3%

Auckland IB to Actual win rate 1.1 0.7 0.4

Reported EBITDA including IB 115.5 101.7 13.8 13.6%

• EBITDA margin is calculated as a % of GST‐inclusive gaming revenues and GST‐exclusive non‐gaming revenues to facilitate Australasian comparisons

Revenue, EBITDA and Margin

43.0% 42.5%

Revenues (inclusive of GST) up $33.8m or 14.4% on pcp

Gaming machines continues strong revenue growth, +16.7%, reflecting our investment in new VIP gaming rooms

$268.9m

SKYCITY Auckland

Revenue Growth by Type (v pcp)

1H12 local table games revenue was flat, reflecting high hold of 21.9% in 1H11 (FY11 hold was 20.6%, 2H11 19.4%), compared to 1H12 hold of 19.2%

However, due largely to the opening of EIGHT, local table games drop increased by 13% to $315m in 1H12

Significant growth in non‐gaming (22.9%) driven by RWC hotel bookings and F&B revenues Grand Hotel: revenue up 59%. Occupancy of 90%

$235.1m$268.9m

$101.0m $114.4m

1H11 1H12Revenue EBITDA

25.7% 22.9%

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Gaming revenue figures as shown in the charts on this page are gaming win (inclusive GST). This facilitates Australasian comparisons. It also facilitates period on period comparisons given the GST rate change in New Zealand on 1 October 2010 Non gaming revenues are net of GST Total revenues as shown are gaming win plus non‐gaming revenues EBITDA margin is calculated as a % of gaming win (GST inclusive) plus non‐gaming revenue ‐ to facilitate Australasian and period on period comparisons

SKYCITY Hotel: revenue up 38%. Occupancy of 93%

RWC 2011 Revenue and EBITDA of $10.7m and $6.0m excluding RWC impact, underlying Revenue and

EBITDA growth of 9.8% and 7.3% respectively

16.7%

(0.5%)

22.9%

14.4%

Machines Tables -Local

IB Non Gaming

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SKYCITY Auckland – International Business

Table Games – International Business (IB) in Auckland

Horizon, our new $10m investment in private gaming salons and hotel suites for International VIP players, was successfully opened in July, in time for RWC

1H12 Turnover was $1.4bn, +26% on pcp

1H12 1H11 1H10 Movement 1H12 vs 1H11$ %

Movement 1H12 vs 1H10$ %

Turnover ($bn) 1.4 1.1 0.5 0.3 25.7% 0.9 195.4%

l d ld

4 , p p higher actual hold of 1.47% increased win by $5m (+31%)

Players have reacted extremely positively to the enhanced facilities. The enlarged facilities allow us to leverage peak periods, such as Chinese New Year turnover was up by more than 50% year on year, during the 2‐week holiday period

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Normalised Hold % 1.35% 1.35% 1.35%

Normalised Win ($m) 18.6 14.8 6.3 3.8 25.7% 12.3 195.4%

Normalised EBITDA ($m) 4.5 4.1 1.1 0.4 9.8% 3.4 309.1%

Actual Hold % 1.47% 1.42% 1.33% 0.05pts 0.14pts

Actual Win ($m) 20.3 15.5 6.2 4.8 31.0% 14.1 227.4%

Actual EBITDA ($m) 5.6 4.8 1.0 0.8 16.7% 4.6 460.0%

1H12A$m

1H11A$m

Movement A$m %

Revenues

Machines 32.5 29.9 2.6 8.7%

T bl L l 8 8 %

Adelaide Casino– including Normalised Adelaide IB

Tables – Local 38.4 35.5 2.9 8.2%

Tables – International (Normalised) 2.8 2.9 (0.1) (3.4%)


Food and Beverage, Other 8.9 9.0 (0.1) (1.1%)


Gaming GST 6.7 6.2 (0.5) (8.1%)


Expenses 56.7 54.1 (2.6) (4.8%)


25

Normalised EBITDAEBITDA Margin

19.223.2%

17.022.0%

2.2 12.9%

Adjust IB to Actual win rate 1.3 0.3 1.0

Reported EBITDA 20.5 17.3 3.2 18.5%


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Another strong performance with solid revenue, EBITDA and margin growth

Total revenue up 6.9% in a challenging retail environment;

Revenue, EBITDA and Margin (A$)

22.0%23.2%

$77 3m$82.6m

Adelaide Casino

environment;

pleasing EGM performance driven by strong volume growth in VIP

strong table gaming performance impacted by lower than theoretical hold in local VIP (compared to high hold in 1H11), strong growth in drop

non‐gaming revenues impacted by lower bar trade in the current half compared with a strong 1H11 which featured the Soccer World Cup in July 2010 Revenue Growth by Type (v pcp)

$77.3m

$17.0m $19.2m


8.7% 8.2%6 9%

Effective cost management continued to deliver record margin for Adelaide

South Australian retail environment still challenging

26

Gaming revenue figures as shown in the charts on this page are gaming win (inclusive GST). This facilitates Australasian comparisons Non gaming revenues are net of GST Total revenues as shown are gaming win plus non‐gaming revenues EBITDA margin is calculated as a % of gaming win (GST inclusive) plus non‐gaming revenue ‐ to facilitate Australasian comparisons

(3.4%)

(1.1%)

6.9%

Machines Tables -Local

IB Non Gaming

Total

1H12A$m

1H11A$m

Movement A$m %

Revenues

Machines 32.4 32.7 (0.3) (0.9%)

Tables Local 9 4 8 4 1 0 11 9%

SKYCITY Darwin– including Normalised Darwin IB

Tables – Local 9.4 8.4 1.0 11.9%

Tables – International (Normalised) 0.0 1.0 (1.0) (100%)

Keno 7.2 6.5 0.7 10.8%


Food and Beverage, Hotel, Other 14.6 14.9 (0.3) (2.0%)


Gaming GST 4.5 4.4 (0.1) (2.3%)


8 8

27

Expenses 38.3 38.4 0.1 0.3%

Normalised EBITDAEBITDA Margin

20.832.7%

20.732.6%

0.1 0.5%

Adjust IB to Actual win rate 0.3 (0.7) 1.0



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SKYCITY Darwin

Revenue, EBITDA and Margin (A$)

32.6% 32.7%

1H12 comparison to 1H11 is a like for like basis post smoking bans introduced January 2010

Overall revenues up 0.2% despite a slow start to 1H12

Gaming machines revenue down 0.9% in a weak Darwin


economy with softer tourism visitation

Local table games revenue up 11.9% with increased operating hours on a revitalised floor layout

IB normalised revenue decrease has offset the local table games increase

Keno revenues up over 10% with additional interest in the growing jackpots

F&B revenue was consistent but hotel revenue was impacted by the ongoing construction to the Tropical

$63.5m $63.6m

$20.7m $20.8m


28

Gaming revenue figures as shown in the charts on this page are gaming win (inclusive GST). This facilitates Australasian comparisons Non gaming revenues are net of GST Total revenues as shown are gaming win plus non‐gaming revenues EBITDA margin is calculated as a % of gaming win (GST inclusive) plus non‐gaming revenue ‐ to facilitate Australasian comparisons

impacted by the ongoing construction to the Tropical Resort

EBITDA of $21m is up 0.5% on 1H11 with a consistent margin percentage of 33%

A number of recent changes to the Executive team will continue to drive operational improvements

(0.9%)

0.0%

10.8%

(2.0%)

0.2%

Machines Tables Keno Non Gaming

Total

1H12$m

1H11$m

Movement $m %

Revenues

Machines 17.1 14.6 2.5 17.1%

Tables – Local 4.6 5.0 (0.4) (8.0%)

SKYCITY Hamilton– including Normalised Hamilton IB

Tables Local 4.6 5.0 (0.4) (8.0%)

Tables – International (Normalised) 0.4 0.1 0.3 300.0%


Food and Beverage, Other 4.4 3.6 0.8 22.2%


Gaming GST 2.9 2.3 (0.6) (26.1%)


Expenses 12.6 11.0 (1.6) (14.5%)


29

EBITDA Margin 41.5% 42.9%

Adjust IB to Actual win rate 0.5 0.3 0.2



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SKYCITY Hamilton

Revenue, EBITDA and Margin

42.9% 41.5%

Hamilton continues to perform well with EBITDA up 10% on pcp

Hamilton’s performance reflects successful growth initiatives, together with the stronger rural‐based


$23.3m$26.5m

$10.0m $11.0m


, g geconomy of the Waikato region

Machine and non‐gaming revenues were both up in 1H12, offset by table games down marginally, delivering an overall revenue growth of 13.7%

Gaming machine revenue growth a particular highlight, up 17.1% third consecutive half of sequential revenue

growth 17.1%22.2%

30

Gaming revenue figures as shown in the charts on this page are gaming win (inclusive GST). This facilitates Australasian comparisons. It also facilitates period on period comparisons given the GST rate change in New Zealand on 1 October 2010 Non gaming revenues are net of GST Total revenues as shown are gaming win plus non‐gaming revenues EBITDA margin is calculated as a % of gaming win (GST inclusive) plus non‐gaming revenue ‐ to facilitate Australasian and period on period comparisons

g

RWC 2011 Revenue and EBITDA of $0.8m and $0.5m respectively excluding RWC impact, underlying Revenue and

EBITDA growth of 10.3% and 5.0% respectively (2.0%)

13.7%

Machines Tables Non Gaming Total

Capex, Depreciation, Interest, Tax

Capex and Depreciation

1H12 Capex shown below, totalling $88m

2H12 capex will include Bally gaming system in New Zealand and Adelaide (c.$10m), completion f D i t ( $ ) d l

Debt & Interest: $25.5m, up $2.3m (9.9%)

Higher interest cost in 1H12 reflects refinancing of historically cheaper SKYCITY ACES in December 2010 with new USPP debtof Darwin resort (c.$25m) and general

maintenance capex (c.$25m)

1H12 depreciation increase of $1.5m to $36.1m reflects recent capex spend, largely in Auckland

Depreciation and amortisation for full year FY12 projected to be in the mid $70m’s

debt

Average debt balance during 1H12 at $699m, at average debt cost of 7.3%

Expect average debt cost to start to reduce in 2H12, as cheaper financing replaces USPP

Full year interest cost is expected to be circa $50m

Tax: $26.8m, up $0.6m (2.6%) Capex Spend 1H12Completion of Auckland $50m Projects $32m

31

Normalised

Tax: $26.8m, up $0.6m (2.6%)

Effective tax rate for 1H12 at 25.8% after the decrease in New Zealand corporate tax rate effective 1 July 2011 for SKYCITY

FY12 tax rate projected to remain broadly consistent with 1H12

p j 3

Darwin Resort $13m

Other Development Capex $8m

Bally $4m

Maintenance Capex $31m

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Normalised 1H12$m1H11$m

Movement $m %

Revenue (including Gaming GST)

Gaming GST

489.0

42.1

447.1

37.1

41.9

(5.0)

9.4%

(13.5%)

1H12 Group ResultNormalised Revenues and Earnings

Revenue 446.9 410.0 36.9 9.0%

Expenses 281.4 258.6 (22.8) (8.8%)

EBITDA 165.5 151.4 14.1 9.3%

Depreciation and Amortisation 36.1 34.6 (1.5) (4.3%)

EBIT 129.4 116.8 12.6 10.8%

Interest Cost 25.5 23.2 (2.3) (9.9%)

32

Net Profit Before Tax 103.9 93.6 10.3 11.0%

Tax and Minority Interest 26.9 26.2 (0.7) (2.7%)

Normalised NPAT 77.0 67.4 9.6 14.2%

Revenue (including Gaming GST) is shown above to facilitate Australasian comparisons. It also facilitates period on period comparisons given the GST rate change in New Zealand on 1 October 2010 Normalised NPAT adjusts for non‐recurring items and International Business (IB) at theoretical win rate

Normalised P&L Summary by Business Unit

33

• Other NZ Operations includes Queenstown and other minor operations. Minority Interests relate to SKYCITY Queenstown• EBITDA margin is calculated as a % of GST‐inclusive gaming revenues and GST‐exclusive non‐gaming revenues to facilitate Australasian comparisons

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1H12 1H11Revenue

$mEBITDA

$mEBIT$m

NPAT$m

Revenue $m

EBITDA$m

EBIT$m

NPAT$m

Reported 494.0 168.2 132.0 78.8 447.7 150.9 116.3 67.1

Restructuring Costs 0 3 0 3 0 2 0 6 0 6 0 4

Reported and Normalised Earnings

Restructuring Costs 0.3 0.3 0.2 ‐ 0.6 0.6 0.4

Canterbury Earthquake Charity ‐ 0.3 0.3 0.2

Other NRI 0.5 0.6 0.5

Total NRI 0.8 0.9 0.7 ‐ 0.9 0.9 0.6

Adjusted for NRI 494.0 169.0 132.9 79.5 447.7 151.8 117.2 67.7

International Business at Theoretical (5.0) (3.5) (3.5) (2.5) (0.6) (0.4) (0.4) (0.3)

Normalised 489.0 165.5 129.4 77.0 447.1 151.4 116.8 67.4

34

• Revenue includes GST inclusive gaming revenues and GST exclusive non‐gaming revenues• ‘Normalised’ (underlying) earnings eliminates non‐recurring items and adjusts international VIP commission business win rate to theoretical

Other NRI includes one‐off costs associated with opening the new Auckland facilities and other miscellaneous items

IB win rate at 1.64% for 1H12. Adjustment to theoretical win rate of 1.35% reduces IB

1H12 Notes re Reported and Normalised Earnings

(normalised) EBITDA by $3.5m from $8.6m to $5.1m

Gaming revenue figures reflect gaming win (inclusive of gaming GST). This facilitates Australasian comparisons. It also facilitates period on period comparisons given the GST rate change in New Zealand on 1 October 2010

Non‐gaming revenues are net of GST

Total revenues are gaming win plus non‐gaming revenues

35

EBITDA margin is calculated as a % of gaming win (GST inclusive) plus non‐gaming revenue ‐to facilitate Australasian and period on period comparisons

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International Business Consolidated Result

1H12 1H11 MovementNZ$m NZ$m NZ$m %

Actual Revenue (incl Gaming GST)Auckland 20.3 15.5 4.8 31.0% Other 7.5 5.1 2.4 47.1% T t l A t l R 8 6 % Total Actual Revenue 27.8 20.6 7.2 35.0%

Actual EBITDA Auckland 5.6 4.8 0.8 16.7% Other 3.0 1.2 1.8 150.0% Total Actual EBITDA 8.6 6.0 2.6 43.3%

Actual Win RateAuckland 1.47% 1.42% 0.05 pts Other 2.24% 1.49% 0.75 pts Total Actual Win Rate 1.64% 1.39% 0.25 pts

Normalised Revenue (incl Gaming GST)Auckland 18.6 14.8 3.8 25.7% Other 4 2 5 2 (1 0) (19 2%)

36

The difference between Normalised and Reported can be seen on page 34

Other 4.2 5.2 (1.0) (19.2%)Total Normalised Revenue 22.8 20.0 2.8 14.0%

Normalised EBITDA Auckland 4.5 4.1 0.4 9.8% Other 0.6 1.5 (0.9) (60.0%)Total Normalised EBITDA 5.1 5.6 (0.5) (8.9%)

Cash Flows

Consistent and reliable cash flows

SKYCITY continues to generate strong cash flows

cash flows from operating activities were $164m d $ i H d H i l

Cashflow summary 1H12 1H11

Reported EBITDA 168.2 150.9 Tax paid (11.8) (19.2) Working capital/other 7.1 (9.4) Operating cash flow 163 5 122 3 and $122m in 1H12 and 1H11 respectively

Capex spend $88m

capex includes completing Horizon/Eight ($15m), Diamond Room ($5m), Fortuna Buffet ($3m) and Federal Street ($7m), as well as continued development of the Darwin Tropical Resort (A$10m). The balance broadly consists of development and maintenance capex across all sites1

Working Capital/Other

Operating cash flow 163.5 122.3

Capex ‐ net (87.5) (35.6) Free cash flow 76.0 86.7

Dividends (41.3) (53.2) Interest paid (27.9) (19.5) Share purchases (7.5) (3.8) Repayment of debt ‐ (199.4) New debt ‐ 163.0 Derivatives/other 0.1 0.1 Change in cash balance (0.6) (26.1)

37

Working Capital/Other

these adjustments relate primarily to movements in the underlying working capital of the Group. 1H12 largely related to a decrease in receivables while 1H11 relates to movements in receivables, payables and inventory

Opening cash balance 104.6 102.5 Closing cash balance 104.0 76.4

1 Dollar amounts represent cash expenditure in 1H12

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Consolidated Balance SheetSKYCITY Entertainment Group Limited

EquityAs at 31/12/11

NZ$mAs at 30/06/11

NZ$mMovement

NZ$mShare Capital 726.6 728.6 (2.0)Retained profits 73.9 41.1 32.8 Reserves 9.7 3.7 6.0 Minority interests 1.5 1.4 0.1 y 5 4

Total Equity 811.7 774.8 36.9

Current AssetsCash and bank 104.0 104.6 (0.6)Receivables and prepayments 23.2 30.9 (7.7)Inventories 8.0 7.0 1.0 Tax prepayment 36.4 36.6 (0.2)Derivative financial instruments 2.6 0.3 2.3 Total Current Assets 174.2 179.4 (5.2)

Non‐Current AssetsProperty, plant and equipment 1,031.6 991.3 40.3

38

Intangible assets 419.1 410.4 8.7 Investments in associates 75.2 73.8 1.4 Tax prepayment 14.6 27.8 (13.2)Derivative financial instruments 21.7 ‐ 21.7 Total Non‐Current Assets 1,562.2 1,503.3 58.9

Total Assets 1,736.4 1,682.7 53.7

Consolidated Balance Sheet (continued)SKYCITY Entertainment Group Limited

As at 31/12/11NZ$m

As at 30/06/11NZ$m

MovementNZ$m

Total Assets (carried forward) 1,736.4 1,682.7 53.7

Current LiabilitiesPayables 98.7 110.9 12.2 Current tax liabilities 9 4 5 3 (4 1)Current tax liabilities 9.4 5.3 (4.1)USPP ‐ Current 256.1 247.3 (8.8)Derivative financial instruments 1.0 10.1 9.1 Total Current Liabilities 365.2 373.6 8.4

Non‐Current LiabilitiesUSPP ‐ Term 370.7 350.2 (20.5)Subordinated debt ‐ capital notes 56.4 56.4 0.0 Deferred tax liabilities 92.4 94.3 1.9 Derivative financial instruments 40.0 33.4 (6.6)Total Non‐Current Liabilities 559.5 534.3 (25.2)

Total Liabilities 924.7 907.9 (16.8)

N t A t 8 8 6

39

Net Assets 811.7 774.8 36.9

Net Debt (excluding cash in house)

Net Debt:EBITDA

630.0

2.0

598.2

2.0

(31.8)

Net Position of Derivative Financial Instrumentsincluded in Balance Sheet Assets/(Liabilities) (16.7) (43.2) 26.5For

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Balance Sheet Notes

Equity⁻ Movements in share capital relate to the employee long‐term incentive plan and the dividend

reinvestment plan⁻ Movement in retained profits records the current period’s net profit after tax less the FY11

final dividendfinal dividend⁻ Reserves⁻ the movement in foreign currency translation reserve reflects changes in the New Zealand

dollar value of the company’s net Australian assets due to movements in the NZD/AUD exchange rate

⁻ the movement in the cash flow hedge reserve represents fair value movements in SKYCITY’s interest rate and cross currency interest rate swaps that are part of cash flow hedging relationships

⁻ Minority interest of $1.5m is Skyline Enterprises’ 40% shareholding in Queenstown Casino

40

Current Assets⁻ Cash and bank balances: $53.2m interest‐bearing deposits and $50.8m cash held in‐house/on‐

property⁻ Tax prepayments ($36.4m) also appear on the balance sheet under Non‐Current Assets

($14.6m), and Current Liabilities ($9.4m). The tax prepayments balances relate to the timing of tax payments

Balance Sheet Notes continued

Non‐Current Assets

⁻ $40.3m increase in Property, Plant and Equipment relates primarily to additions (Horizon/Eight, Diamond Room, Fortuna Buffet, Federal Street, Darwin Tropical Resort and gaming machines) and the impact of movement in the NZD/AUD exchange rate (+$4.3m impact) partially offset by depreciationimpact), partially offset by depreciation

⁻ The increase in intangible assets is largely the result of movements in the NZD/AUD exchange rate and the new Bally Gaming System

⁻ Investments in Associates comprise SKYCITY’s investment in Christchurch Casinos Limited (CCL) (effective ownership 50%). The balance of the investment in CCL is held via shareholder advances

Current and Non‐Current Liabilities

⁻ Derivative financial instruments represent the market value of interest rate swaps, cross currency interest rate swaps and forward foreign exchange contracts

41

g g

⁻ At 31 December 2011, SKYCITY’s committed syndicated bank facility was undrawn

⁻ The company has a working capital deficit as at 31 December 2011 due to the 15 March 2012 maturity of USPP $256.1m. The Group has obtained additional committed funding available for draw down from March 2012 and has the ability to fully repay the debt dueF

or p

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Debt Profile

Following obtaining the additional $185m bank facility our debt profile is now:

$256 $56

$200

$200 $185

Debt Maturity Profile as at 31 December 2011

USPP (2005) USPP (2011) C/Notes Bank ‐ Undrawn

42

$89$35 $21

$97 $130$200 $185

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

1H12 NPAT result comparison to 1H11 is impacted by NZD/AUD exchange rate

Average NZD/AUD cross‐rate during 1H12 0.7835

Australian Dollar EarningsAdelaide and Darwin

Average NZD/AUD cross‐rate during 1H11 0.7795

Restating 1H11 prior period at 0.7835 to remove the FX differential would have the following impact

1H11 Reported EBITDA (‐$0.2m)

1H11 Normalised NPAT (‐$0.1m)

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Disclaimer

All information included in this presentation is provided as at 15 February 2012.

The presentation includes a number of forward‐looking statements. Forward looking statements, p f f g g ,by their nature, involve inherent risks and uncertainties. Many of those risks and uncertainties are matters which are beyond SKYCITY’s control and could cause actual results to differ from those predicted. Variations could either be materially positive or materially negative.

This presentation has not taken into account any particular investor’s investment objectives or other circumstances. Investors are encouraged to make an independent assessment of SKYCITY.

44

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APPENDIX 7 – NZSX Listing Rules

Number of pages including this one(Please provide any other relevant

NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.

Full nameof Issuer

Name of officer authorised to Authority for event,make this notice e.g. Directors' resolution

Contact phone Contact faxnumber number Date

Nature of event Bonus If ticked, Rights IssueTick as appropriate Issue state whether: Taxable / Non Taxable Conversion Interest Renouncable

Rights Issue Capital Call Dividend If ticked, state Fullnon-renouncable change X whether: Interim X Year Special DRP Applies

EXISTING securities affected by this If more than one security is affected by the event, use a separate form.

Description of the ISINclass of securities

If unknown, contact NZX

Details of securities issued pursuant to this event If more than one class of security is to be issued, use a separate form for each class.

Description of the ISINclass of securities

If unknown, contact NZX

Number of Securities to Minimum Ratio, e.gbe issued following event Entitlement 1 for 2 for

Conversion, Maturity, Call Treatment of FractionsPayable or Exercise Date

Tick if provide anpari passu OR explanation

Strike price per security for any issue in lieu or date of theStrike Price available. ranking

Monies Associated with Event Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.

Source ofAmount per security Payment(does not include any excluded income)

Excluded income per security(only applicable to listed PIEs)

Supplementary Amount per securityCurrency dividend in dollars and cents

details -NZSX Listing Rule 7.12.7

Total monies

Taxation Amount per Security in Dollars and cents to six decimal places

In the case of a taxable bonus Resident Imputation Creditsissue state strike price Withholding Tax (Give details)

Foreign FWP CreditsWithholding Tax (Give details)

Timing (Refer Appendix 8 in the NZSX Listing Rules)

Record Date 5pm Application DateFor calculation of entitlements - Also, Call Payable, Dividend /

Interest Payable, Exercise Date,Conversion Date. In the caseof applications this must be thelast business day of the week.

Notice Date Allotment DateEntitlement letters, call notices, For the issue of new securities.conversion notices mailed Must be within 5 business days

of application closing date.

OFFICE USE ONLYEx Date:Commence Quoting Rights: Security Code:Cease Quoting Rights 5pm:Commence Quoting New Securities: Security Code:Cease Quoting Old Security 5pm:

EMAIL: [email protected]

Notice of event affecting securities

SKYCITY Entertainment Group Limited

Peter Treacy Directors' resolution

(09) 363 6141 (09)363 6140 15 2 2012

NZSKCE0001S2

In dollars and cents

Profit$0.0900

Ordinary Shares

Enter N/A if not applicable

NZ Dollars $0.009529

$51,926,251 Date Payable 5 April, 2012

$ $0.015630 $0.021000

$

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SKYCITY Entertainment Group Limited Consolidated income statements

For the six month period ended 31 December 2011

Unaudited 6 months

31 December

Unaudited 6 months

31 December

Audited 12 months 30 June

2011 2010 2011

Notes $'000 $'000 $'000

Total receipts including GST 3 505,223 455,614 902,381 Less non-gaming GST 3 (14,512) (11,526) Gaming win plus non-gaming revenue

(22,562) 3 490,711 444,088 879,819

Less gaming GST 3 (42,721) (37,111) Total revenue

(76,674) 3 447,990 406,977 803,145

Revenue 3 447,990 406,977 803,145

Other income 4 873 448 1,261 Share of net profit of associate 2,419 3,222 5,976 Employee benefits expense (139,316) (130,076) (260,676) Other expenses 5 (53,099) (49,785) (92,623) Direct consumables (31,377) (24,950) (52,607) Gaming taxes and levies (32,337) (30,562) (61,275) Marketing and communications (25,587) (23,398) (44,886) Directors' fees (535) (350) (741) Depreciation and amortisation expense 5 (36,236) (34,521) (69,710) Restructuring costs (800) (648) (3,298) Impairment of Christchurch Casino - - (15,000) Finance costs - net 6 (25,498) (23,180) Profit before income tax

(43,772)

106,497 93,177 165,794

Tax expense pre Government Budget changes (27,582) (26,025) Profit before tax expense relating to Government Budget changes

(48,226)

78,915 67,152

Tax expense relating to Government Budget changes

117,568

- - Profit for the year

5,435 78,915 67,152

Income tax expense

123,003

(27,582) (23,180) (42,791) Attributable to:

Shareholders of SKYCITY Entertainment Group Limited 78,826 67,126 122,960 Profit attributable to non-controlling interest 89 26

43

78,915 67,152

123,003

Cents Cents Cents Earnings per share for profit attributable to the shareholders of the company Basic earnings per share (cents) 13.7 11.7 21.4 Diluted earnings per share (cents) 13.5 10.7 20.9

The above consolidated income statements should be read in conjunction with the accompanying notes.

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SKYCITY Entertainment Group Limited Statements of comprehensive income

31 December 2011

-2-

Unaudited 6 months

31 December

Unaudited 6 months

31 December


2011 2010 2011

$'000 $'000 $'000

Profit for the period 78,915 67,152 123,003

Other comprehensive income

Movement in cash flow hedges (1,111) (2,997) (13,733) Exchange differences on translation of overseas subsidiaries 6,898 18,235 5,397 Income tax relating to components of other comprehensive income 243 1,060 Other comprehensive income/(expenses) for the period, net of tax

4,133 6,030 16,298

Total comprehensive income for the period

(4,203)

84,945 83,450

Total comprehensive income for the period is attributable to:

118,800

Shareholders of the company 84,856 83,424 118,757 Non-controlling interest 89 26

43

84,945 83,450

The above consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.

118,800

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SKYCITY Entertainment Group Limited Consolidated balance sheets

As at 31 December 2011

Unaudited

31 December Unaudited

31 December Audited 30 June

2011 2010 2011

Notes $'000 $'000 $'000

ASSETS Current assets Cash and bank balances 104,010 76,423 104,577 Receivables and prepayments 23,221 27,127 30,901 Inventories 7,975 8,592 6,970 Tax prepayment 36,428 9,872 36,637 Derivative financial instruments 2,626 335 Total current assets

272 174,260 122,349

Non-current assets

179,357

Tax prepayment 14,580 30,491 27,789 Property, plant and equipment 1,031,554 971,325 991,331 Intangible assets 419,125 422,974 410,412 Investment in associate 75,210 86,028 73,782 Derivative financial instruments 21,700 2,667 Total non-current assets

- 1,562,169 1,513,485

Total assets

1,503,314

1,736,429 1,635,834

LIABILITIES

1,682,671

Current liabilities Payables 98,714 99,184 110,852 Current tax liabilities 9,430 9,846 5,349 Derivative financial instruments 1,013 - 10,102 Interest bearing liabilities 8 256,073 163,000 Total current liabilities

247,267 365,230 272,030

Non-current liabilities

373,570

Interest bearing liabilities 8,9 370,817 401,504 350,202 Subordinated debt - capital notes 56,405 56,393 56,400 Deferred tax liabilities 92,378 95,363 94,290 Derivative financial instruments 39,968 24,126 Total non-current liabilities

33,393 559,568 577,386

Total liabilities

534,285

924,798 849,416

Net assets

907,855

811,631 786,418

EQUITY

774,816

Share capital 10 726,565 729,559 728,616 Reserves 11(a) 9,712 24,183 3,682 Retained profits 11(b) 73,897 31,325 Parent entity interest

41,150 810,174 785,067

Non-controlling interest

773,448

1,457 1,351 Total equity

1,368 811,631 786,418

The above consolidated balance sheets should be read in conjunction with the accompanying notes.

774,816

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SKYCITY Entertainment Group Limited Consolidated statements of changes in equity

For the six month period ended 31 December 2011

Share capital

Hedging Reserves

Foreign Currency

Translation Reserve

Retained profits

Minority interest

Total equity

$'000 $'000 $'000 $'000 $'000 $'000

Balance as at 1 July 2010 732,910 (2,740) 10,625 17,397 1,325

Total comprehensive income/(expense)

759,517

- (1,937) 18,235 67,126 26 83,450

Dividends - - - (53,198) - (53,198) Share rights issued for employee services 459 - - - - 459 Net purchase of treasury shares (3,810) - - - - Balance as at 31 December 2010

(3,810) 729,559 (4,677) 28,860 31,325 1,351

786,418



774,816

- (868) 6,898 78,826 89 84,945

Shares issued under dividend reinvestment plan 4,736 - - - - 4,736 Dividends - - - (46,079) - (46,079) Share rights issued for employee services 705 - - - - 705

Net purchase of treasury shares (7,492) - - - - Balance as at 31 December 2011

(7,492) 726,565 (13,208) 22,920 73,897 1,457

811,631



759,517

- (9,600) 5,397 122,960 43 118,800

Shares issued under dividend reinvestment plan 6,101 - - - - 6,101

Dividends - - - (99,207) - (99,207) Share rights issued for employee services 1,047 - - - - 1,047 Net purchase of treasury shares (11,442) - - - - Balance as at 30 June 2011

(11,442) 728,616 (12,340) 16,022 41,150 1,368

The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.

774,816

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SKYCITY Entertainment Group Limited Statements of cash flows

For the half year ended 31 December 2007

Unaudited 6 months

31 December

Unaudited 6 months

31 December


2011 2010 2011

Notes $'000 $'000 $'000

Cash flows from operating activities Receipts from customers 455,510 405,078 795,231 Payments to suppliers and employees (252,693) (238,014)

(469,413)

202,817 167,064

Dividends received

325,818

996 747 747 Interest received 90 104 192 Gaming taxes paid (28,699) (26,484) (54,896) Income taxes paid (11,752) (19,169) Net cash inflow / (outflow) from operating activities

(62,496) 17 163,452 122,262

Cash flows from investing activities

209,365

Purchase of/proceeds from property, plant and equipment (82,254) (31,848) (74,822) Payments for intangible assets (5,205) (3,783) (1,893) Loan repayment from Christchurch Hotels Limited 160 127 Net cash inflow / (outflow) from investing activities

194

(87,299) (35,504)

Cash flows from financing activities

(76,521)

New borrowings - 163,000 401,799 Cash flows associated with derivatives - - (20,884) Repayment of borrowings - (199,359) (362,359) Net purchase of treasury shares (7,492) (3,810) (11,442) Dividends paid to company’s shareholders (41,343) (53,198) (93,106) Interest paid (27,885) (19,474) Net cash (outflows) from financing activities

(44,781) (76,720) (112,841)

Net (decrease)/increase in cash and cash equivalents

(130,773)

(567) (26,083) 2,071 Cash and bank balances at the beginning of the period 104,577 102,506 Cash and cash equivalents at end of the half-year

102,506 104,010 76,423

The above cash flow statements should be read in conjunction with the accompanying notes.

104,577

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SKYCITY Entertainment Group Limited Notes to the financial statements

31 December 2011

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1 General information SKYCITY Entertainment Group Limited (SKYCITY or the company and its subsidiaries or the Group) operates in the gaming/entertainment, hotel and convention, hospitality, recreation, and tourism sectors. The Group has operations in New Zealand and Australia.

SKYCITY is a limited liability company incorporated and domiciled in New Zealand. The address of its registered office is Federal House, 86 Federal Street, Auckland. The company is dual listed on the New Zealand and Australian stock exchanges.

SKYCITY is a company registered under the Companies Act 1993 and is an issuer in terms of the Securities Act 1978. These consolidated interim financial statements have been prepared in accordance with the requirements of the Financial Reporting Act 1993.

These consolidated financial statements have been approved for issue by the board of directors on 15 February 2012.

2 Summary of significant accounting policies These general purpose financial statements for the interim half year reporting period ended 31 December 2011 have been prepared in accordance with generally accepted accounting practice in New Zealand, International Accounting Standard 34 and NZ IAS 34 Interim Financial Reporting.

The preparation of interim financial statements in accordance with NZ IAS 34 Interim Financial Reporting requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

These financial statements have been prepared under the historical cost convention except for the revaluation of certain financial instruments (including derivative instruments). The Group is designated as a profit-oriented entity for financial reporting purposes.

The Group has a negative working capital balance as a portion of the USPP debt is a current liability as at 31 December 2011. The Group has the ability to service and repay this debt. As detailed in note 9, the Group has significant committed long term bank facilities that are unutilised and available to repay the due debt.

The accounting policies that materially affect the measurement of the Income Statements, Balance Sheets and the Statements of Cash Flows have been applied on a basis consistent with those used in the audited financial statements for the year ended 30 June 2011 and the unaudited financial statements for the six months ended 31 December 2010.

These interim financial statements do not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2011.

(a) Changes in accounting policies

There have been no significant changes in accounting policies during the current period. Accounting policies have been applied on a basis consistent with prior half year and annual financial statements.

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31 December 2011 (continued)

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3 Revenue

6 months

31 December 6 months

31 December 12 months 30 June

2011 2010 2011

$'000 $'000 $'000

Total receipts including GST 505,223 455,614 902,381 Less non-gaming GST (14,512) (11,526) Gaming win plus non-gaming revenue

(22,562) 490,711 444,088 879,819

Less gaming GST (42,721) (37,111) Total revenue

(76,674) 447,990 406,977 803,145

Gaming 341,738 313,482 628,051 Non-gaming 106,252 93,495 Total revenue

175,094 447,990 406,977

Included within gaming revenue is revenue relating to loyalty action points of $6,188,000 (31 December 2010: $4,861,000, 30 June 2011: $10,486,000).

803,145

Included within non-gaming revenue is revenue relating to loyalty action points of $155,000 (31 December 2010: $159,000, 30 June 2011: $306,000).

Gaming win represents the gross cash inflows associated with gaming activities. “Total receipts including GST” and “Gaming win plus non gaming revenue” do not represent revenue as defined by NZ IAS 18 “Revenue”. The Group has decided to disclose these amounts as they give shareholders and interested parties a better appreciation for the scope of the Group’s gaming activities and is consistent with industry practice adopted by casino operations in Australia.

4 Other income

6 months



2011 2010 2011

$'000 $'000 $'000

Net gain on disposal of property, plant and equipment 778 340 1,065 Interest income - Christchurch Hotels Limited 90 104 192 Dividend income 5 4

4 873 448

5 Profit before income tax

1,261

6 months



2011 2010 2011

$'000 $'000 $'000

Profit before income tax includes the following specific expenses:

Depreciation Buildings 12,648 12,640 24,198 Plant and equipment 17,187 14,184 31,402 Furniture and fittings 3,357 3,568 6,834 Motor vehicles 195 172 Total depreciation

404 33,387 30,564

Amortisation

62,838

Casino licence (Adelaide) 1,338 1,346 2,736 Software 1,511 2,611 Total amortisation

4,136 2,849 3,957

Total depreciation and amortisation

6,872

36,236 34,521 69,710

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5 Profit before income tax (continued) 31 December 31 December 30 June 2011 2010 2011

$'000 $'000 $'000

-8-

Other expenses includes: Utilities, insurance and rates 10,581 9,750 19,616 Community Trust donations 1,622 1,524 3,185 Minimum lease payments relating to operating leases 2,211 2,156 4,408 Other property expenses 8,032 7,690 15,302 Other items (including International commissions) 30,635 28,624 50,031 Provision for bad and doubtful debts 18 41

81 53,099 49,785

Restructuring costs

92,623

Redundancy and other staff payments 293 648 2,471 Other restructuring costs 507 -

827 800 648

3,298

6 Finance costs - net

6 months



2011 2010 2011

$'000 $'000 $'000

Finance costs Interest and finance charges 27,718 24,914 50,280 Exchange gains (640) (780) (2,105) Interest Income (1,580) (954) (2,783) Gain on funding reorganisation - -

Total net finance costs (1,620)

25,498 23,180

7 Significant Associates and Joint Ventures

43,772

The Group holds a 50% (31 December 2010: 50%; 30 June 2011: 50%) interest in Christchurch Casinos Limited (33.3% direct and 16.7% indirect).

8 Current liabilities - Interest bearing liabilities

31 December 31 December 30 June 2011 2010 2011

$'000 $'000 $'000

Unsecured Syndicated Bank Facility - 163,000 - US Private Placement 256,073 - Total current interest bearing borrowings

247,267 256,073 163,000

Refer note 9 (Non-current liabilities) for details of Syndicated Bank Facility and USPP.

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9 Non-current liabilities - Interest bearing liabilities 31 December 31 December 30 June 2011 2010 2011

$'000 $'000 $'000

Unsecured US Private Placement 372,129 402,318 350,202 Deferred funding expenses (1,312) (814) Total unsecured non-current interest bearing borrowings

- 370,817 401,504

(a) United States Private Placement (USPP)

350,202

On 15 March 2005 SKYCITY borrowed NZ$96,571,000, A$74,900,000 and US$274,500,000 with maturities between 2012 and 2020 from private investors (primarily US based) on an unsecured basis.

In July and August 2009, the Group repurchased USD115,500,000 of USPP debt. All repurchased debt was previously maturing in March 2012.

In March 2011, additional US$175,000,000 of USPP debt was raised, US$100,000,000 with 10 year maturity and US$75,000,000 with 7 years.

The USPP fixed rate US dollar borrowings have been converted to New Zealand and Australian dollar floating rate borrowings by use of cross-currency interest rate swaps to eliminate foreign exchange exposure to the US dollar within the Income Statement. Concurrent with the debt repurchase in 2009, all cross-currency interest rate swaps and interest rate swaps hedging the relevant debt were closed out.

March 2012 maturities of USPP (US$85,000,000, A$74,900,000, NZ$47,275,000) have been recognised as current liabilities (refer note 8).

The movement in the USPP from 30 June 2011 relates to foreign exchange and interest rate movements.

(b) Syndicated bank facility

As at 30 June 2011, the revolving credit bank facility was $400,000,000 being two tranches of $200,000,000 (maturing April 2014 and June 2016).

During the six months to 31 December 2011, the $200,000,000 tranche maturing April 2014 was extended to January 2015. Also, a NZ$85,000,000 revolving credit facility maturing March 2019 and an A$75,000,000 term facility maturing March 2019 were added.

The funding syndicate is comprised of ANZ National Bank Limited, Bank of New Zealand Limited, Commonwealth Bank of Australia, New Zealand Branch and Westpac New Zealand Limited. As at 31 December 2011 the bank facility was undrawn (31 December 2010: $163,000,000; 30 June 2011: undrawn).

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10 Share capital

31

December 31

December 30

June 31

December 31

December 30

June 2011 2010 2011 2011 2010 2011

Shares Shares Shares $'000 $'000 $'000

Opening balance of ordinary shares issued 576,958,340 575,114,687 575,114,687 728,616 732,910 732,910 Share rights issued for employee services - - - 705 459 1,047 Employee share entitlements issued 610,404 - 275,034 - - - Treasury shares issued (2,028,915) - (275,034) - - - Net purchase of treasury shares - - - (7,492) (3,810) (11,442) Shares issued under dividend reinvestment plan 1,418,511 - 1,843,653 4,736 -

6,101 576,958,340 575,114,687 576,958,340 726,565 729,559

728,616

Included within the number of shares are treasury shares of 4,581,160 (31 December 2010: 2,426,800 and 30 June 2011: 4,351,766) held by the company. The movement in treasury shares during the period related to the purchase of shares by an external trustee as part of the executive long term incentive plan. Treasury shares may be used to issue shares under the company's employee incentive plan or upon the exercise of share rights/options.

11 Reserves and retained profits

6 months 31 December

2011

6 months 31 December

2010

12 months 30 June

2011

$'000 $'000 $'000

(a) Reserves

Hedging reserve - cash flow hedges (13,208) (4,677) (12,340) Foreign currency translation reserve 22,920 28,860

16,022 9,712 24,183

Hedging reserve - cash flow hedges

3,682

Balance at the beginning of the period (12,340) (2,740) (2,740) Revaluation 27,728 (26,707) (77,025) Transfer to net profit (28,839) 23,710 63,292 Deferred tax 243 1,060 Balance 31 December

4,133 (13,208) (4,677)

Foreign currency translation reserve

(12,340)

Balance at the beginning of the period 16,022 10,625 10,625 Exchange differences on translation of overseas subsidiaries 6,898 18,235 Balance 31 December

5,397 22,920 28,860

(i) Hedging reserve - cash flow hedges

16,022

The hedging reserve is used to record gains or losses on a hedging instrument in a cash flow hedge that are recognised directly in equity. Amounts are recognised in profit and loss when the associated hedged transaction affects profit and loss.

(ii) Foreign currency translation reserve

Exchange differences arising on translation of the foreign operations are taken to the foreign currency translation reserve. The reserve is recognised in profit and loss when the net investment is disposed of.

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11 Reserves and retained profits (continued)

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(b) Retained profit

Movements in retained profit were as follows:

Balance at the beginning of the period 41,150 17,397 17,397 Profit attributable to sharesholders of the company 78,826 67,126 122,960 Dividends (46,079) (53,198) Balance at the end of the period

(99,207) 73,897 31,325

12 Dividends

41,150


$'000 $'000 $'000

Prior year's final dividend 46,079 53,198 53,198 Interim dividend - - Total dividends provided for or paid

46,009 46,079 53,198

Subsequent to balance date the Board of Directors has resolved to pay a 60% imputed/60% franked interim dividend of 9 cents per share.

99,207

Cents per share

Prior year's final distribution/dividend 8.00¢ 9.25¢ 9.25¢ Interim distribution/dividend n/a n/a 8.00¢

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13 Contingencies

There are no significant contingent liabilities or assets (31 December 2010 and 30 June 2011: none).

14 Commitments

(a) Capital commitments

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:


$'000 $'000 $'000

Property, plant and equipment 61,296 26,412 59,695

(b) Operating lease commitments 31 December 31 December 30 June 2011 2010 2011

$'000 $'000 $'000

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year 7,500 7,170 5,482 Later than one year but not later than five years 20,062 13,401 13,419 Later than five years 326,983 318,338

318,673 354,545 338,909

15 Segment information

337,574

Management has determined the operating segments based on the reports reviewed by the Chief Executive Officer/Managing Director that are used to make strategic decisions.

The Group is organised into the following main operating segments:

SKYCITY Auckland SKYCITY Auckland includes casino operations, hotels and convention, food and beverage, carparking, Sky Tower, and a number of other related activities.

Rest of New Zealand Rest of New Zealand includes the Group's interest in SKYCITY Hamilton, SKYCITY Queenstown Casino and Christchurch Casino.

SKYCITY Adelaide SKYCITY Adelaide includes casino operations and food and beverage.

SKYCITY Darwin SKYCITY Darwin includes casino operations, food and beverage and hotel.

International Business International Business includes commission and complimentary play. The international business segment is made up of customers sourced mainly from Asia, and the rest of the world. The revenue is generated at SKYCITY's Auckland, Darwin, Adelaide and Queenstown locations.

Corporate / Group Head office functions including legal and regulatory, group finance, human resources and information technology, the Chief Executive's office and directors.

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15 Segment information (continued)

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Half year ended 31 December 2011

SKYCITY Auckland

Rest of New Zealand

SKYCITY Adelaide

SKYCITY Darwin



$'000 $'000 $'000 $'000 $'000 $'000 $'000

Revenue from external customers and other revenue 228,121 27,001 93,683 75,658 24,400 - 448,863 Share of net profits of associate - 2,419 - - - - 2,419 Total sales revenue 228,121 29,420 93,683 75,658 24,400 - 451,282 Less Expenses (118,288) (15,317) (69,951) (48,849) (15,818) (14,828) (283,051) Depreciation and amortisation (19,495) (2,874) (5,301) (5,754) - (2,812) Segment profit/(loss) (Earnings before Interest and Tax)

(36,236) 90,338 11,2

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