A B N 5 1 0 0 0 0 0 5 1 0 3
EVENT HOSPITALITY & ENTERTAINMENT LIMITED
Annual
Report
2021
E V E N T H O S P I T A L I T Y & E N T E R T A I N M E N T L I M I T E D
A B N 5 1 0 0 0 0 0 5 1 0 3
2 0 2 1 A N N U A L R E P O R T
C O N T E N T S
Section
Directors’ Report
Directors’ Report: Remuneration Report – Audited
Lead Auditor’s Independence Declaration
Statement of Financial Position
Income Statement
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Section 1 – Basis of preparation
1.1 – Reporting entity
1.2 – Basis of preparation
1.3 – Foreign currency
1.4 – New and amended accounting standards adopted by the Group
1.5 – Restatement of comparatives and discontinued operations
Section 2 – Performance for the year
2.1 – Revenue
2.2 – Segment reporting
2.3 – Individually significant items
2.4 – Taxation
2.5 – Earnings per share
Section 3 – Operating assets and liabilities
3.1 – Trade and other receivables
3.2 – Inventories
3.3 – Property, plant and equipment
3.4 – Investment properties
3.5 – Assets held for sale
3.6 – Goodwill and other intangible assets
3.7 – Trade and other payables
3.8 – Provisions
3.9 – Commitments and leases
3.10 – Other liabilities
Section 4 – Capital structure and financing
4.1 – Share capital
4.2 – Dividends
4.3 – Reserves
4.4 – Loans, borrowings and financing arrangements
4.5 – Financial risk management
Section 5 – Group composition
5.1 – Business combinations
5.2 – Subsidiaries
5.3 – Interests in other entities
Section 6 – Employee benefits and related party transactions
6.1 – Share-based payments
6.2 – Director and executive disclosures
6.3 – Related parties
Section 7 – Other information
7.1 – Contingent liabilities
7.2 – Reconciliation of loss for the year to net cash provided by operating activities
7.3 – Auditors’ remuneration
7.4 – Parent entity disclosures
7.5 – Events subsequent to reporting date
7.6 – Deed of Cross Guarantee
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Other Information
1 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
Page
2
24
35
36
37
38
39
40
41
41
44
45
47
53
57
62
62
65
66
67
67
72
73
74
76
76
78
81
82
83
84
85
87
92
94
97
101
104
105
106
106
107
108
109
110
112
113
118
120
D I R E C T O R S ’ R E P O R T
The directors present their report together with the financial report of EVENT Hospitality & Entertainment Limited, being the
Company and its controlled entities (“Group”), for the year ended 30 June 2021 and the auditor’s report thereon.
DIRECTORS
The directors of the Company in office at any time during or since the end of the year are:
AG Rydge (Chairman)
Director since 1978
PR Coates
Director since 2009
VA Davies
Director since 2011
DC Grant
Director since 2013
JM Hastings (Managing Director and Chief Executive Officer)
Director since 2017
PM Mann
Director since 2013
RG Newton
Director since 2008.
Directors’ qualifications, experience and independent status
Alan Rydge
Non-executive Chairman, Board member since 1978, Chairman of the Board since 1980. Member of the Audit and Risk
Committee and member of the Nomination and Remuneration Committee.
Experience
A company director with more than 50 years of experience in the film, hospitality, leisure and tourism industries. Joined the
Greater Union group in 1971 and was formerly the Group Managing Director.
Directorships
Mr Rydge is also a director of the listed company, Carlton Investments Limited (appointed 1980, chairman since 1980). In
addition, Mr Rydge is chairman of Alphoeb Pty Limited and Enbeear Pty Limited.
Peter Coates AO, BSc (Mining Engineering), FAICD, FAusIMM
Independent non-executive director and Board member since 2009, and Chairman of the Nomination and Remuneration
Committee. Mr Coates is the lead independent director.
Experience
A company director with more than 50 years of resource industry experience including as chief executive officer of Xstrata and
Glencore’s global coal businesses until his retirement in December 2007. Mr Coates was a past non-executive chairman of
Santos Limited, Sphere Minerals Limited and Minara Resources Ltd, and a past chairman of the Minerals Council of Australia,
NSW Minerals Council and Australian Coal Association. He was made an Officer of the Order of Australia in 2009 and awarded
the Australasian Institute of Mining and Metallurgy Medal in 2011.
Directorships
Positions held by Mr Coates during the last three years include:
•
•
director of Glencore plc; and
chairman of the Industry Advisory Council for the School of Minerals and Energy Resource Engineering, UNSW.
2 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
Directors’ qualifications, experience and independent status (continued)
D I R E C T O R S ’ R E P O R T
Valerie Davies FAICD
Independent non-executive director and Board member since 2011.
Experience
A company director with more than 20 years of broad experience across diverse sectors, including tourism, property,
technology, labour-hire, health and media. In parallel, Ms Davies established her own consultancy in corporate
communications, working at the highest level with numerous tier 1 national and international business organisations
addressing the complexities of issues management, communications, coaching and mentoring. Ms Davies is a member of Chief
Executive Women, a former Telstra Business Woman of the Year (WA) and a past Vice-President of the Australian Institute of
Company Directors (WA).
Directorships
Positions held by Ms Davies during the last three years include:
•
•
director of Cedar Woods Properties Limited; and
commissioner of Tourism Western Australia (resigned 30 June 2021).
David Grant BComm, CA, GAICD
Independent non-executive director, Board member since 2013, and Chairman of the Audit and Risk Committee.
Experience
A company director and a Chartered Accountant with more than 25 years of accounting and finance experience spanning both
the accounting profession and the commercial sector. Mr Grant’s executive career included roles with Goodman Fielder Limited
and Iluka Resources Limited. Mr Grant was formerly a non-executive director of iiNet Limited.
Directorships
Positions held by Mr Grant during the last three years include:
•
•
•
•
director of Retail Food Group Limited;
director of The Reject Shop Limited;
director of A2B Australia Limited; and
director of Murray Goulburn Co-operative Co. Limited (appointed 27 October 2017 and resigned 26 June 2020).
Jane Hastings BComm
Managing Director and Chief Executive Officer (“CEO”) since 1 July 2017.
Experience
Ms Hastings has more than 20 years of experience in the tourism, hospitality and entertainment sectors. Ms Hastings was
previously CEO of New Zealand Media and Entertainment (NZME) (2014 − 2016). Ms Hastings was appointed as the Group’s
Chief Operating Officer in 2016 and CEO in 2017.
Directorships
Ms Hastings was previously a New Zealand Film Commission board member.
3 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
Directors’ qualifications, experience and independent status (continued)
D I R E C T O R S ’ R E P O R T
Patria Mann BEc, FAICD
Independent non-executive director and Board member since 2013. Member of the Audit and Risk Committee and member of
the Nomination and Remuneration Committee.
Experience
A professional non-executive director with extensive audit, ASX, risk management and corporate governance experience. Mrs
Mann is a Fellow of the Australian Institute of Company Directors, qualified as a Chartered Accountant and was a former
partner of KPMG. Mrs Mann has been a professional non-executive director for nearly 20 years.
Directorships
Positions held by Mrs Mann during the last three years include:
•
•
•
director of Ridley Corporation Limited;
director of Allianz Australia Limited (resigned 30 June 2020); and
director of Bega Cheese Limited (appointed 10 September 2019).
Richard Newton BBus (Marketing), FAICD
Independent non-executive director and Board member since 2008.
Experience
A company director with over 30 years of senior executive experience in property investment and development, specifically in
hotel operations.
Directorships
Positions held by Mr Newton during the last three years include:
•
•
chairman of Capricorn Village Joint Venture, WA;
chairman and director of Selpam (Australia) Pty Limited and a director of various companies wholly owned by Selpam
(Australia) Pty Limited; and
director of Bonsey Jaden Pte Ltd, a digital advertising agency.
•
Explanation of abbreviations and degrees: AO Officer of the Order of Australia; BBus (Marketing) Bachelor of Business (Marketing); BComm Bachelor of
Commerce; BEc Bachelor of Economics; BSc (Mining Engineering) Bachelor of Science (Mining Engineering); CA Member of Chartered Accountants Australia
and New Zealand; FAICD Fellow of the Australian Institute of Company Directors; FAusIMM Fellow of the Australasian Institute of Mining and Metallurgy; and
GAICD Graduate Member of the Australian Institute of Company Directors.
COMPANY SECRETARIES
GC Dean CA, ACIS was appointed to the position of Company Secretary for EVENT Hospitality & Entertainment Limited in
December 2002. GC Dean was Accounting Manager for the Company (2001 – 2002) and is a Chartered Accountant and a member
of the Governance Institute of Australia.
DI Stone FCA, ACIS was appointed to the position of Company Secretary for EVENT Hospitality & Entertainment Limited in
February 2012. Prior to this appointment, DI Stone was an audit senior manager at KPMG. DI Stone is a Fellow of the Institute of
Chartered Accountants in England and Wales and a member of the Governance Institute of Australia.
CORPORATE GOVERNANCE
The Board endorses the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, 4th
edition. The Group has disclosed its 2021 Corporate Governance Statement in the corporate governance section on its website
(https://www.evt.com/investors/). As required, the Group has also lodged the 2021 Corporate Governance Statement and
Appendix 4G with the ASX.
4 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
DIRECTORS’ MEETINGS
The number of directors’ meetings (including meetings of committees of directors) and the number of meetings attended by each
of the directors of the Company during the year are set out below:
Directors’
meetings
Audit and Risk
Committee
meetings
Nomination and
Remuneration
Committee meetings
Other special purpose
committee meetings (a)
Entitled
to attend
Attended
Entitled
to attend
Attended
Entitled
to attend
Attended
Entitled
to attend
Attended
9
9
9
9
9
9
9
9
9
9
8
9
8
9
5
–
–
5
5
5
–
5
–
–
5
5
5
–
7
7
–
–
4
7
–
7
7
–
–
4
7
–
13
13
–
13
13
–
–
13
12
–
13
13
–
–
AG Rydge
PR Coates
VA Davies
DC Grant
JM Hastings (b)
PM Mann
RG Newton
(a) Other special purpose committees were formed during the year to assist the Board with capital management matters and its oversight of the CineStar
Germany transaction (refer to note 1.5 of the financial statements).
(b)
JM Hastings attended Audit and Risk Committee and certain Nomination and Remuneration Committee meetings by invitation. Other directors who are
not members of a committee may attend meetings by invitation from time to time.
From time to time, directors visit various sites to improve their understanding of the Group’s locations and operations. Director site
visits have been limited during the year ended 30 June 2021 due to travel restrictions implemented as a result of the impact of the
global coronavirus pandemic (“COVID-19”).
PRINCIPAL ACTIVITIES
The principal activities of the Group during the course of the year included the following:
•
cinema exhibition operations in Australia and New Zealand, including technology equipment supply and servicing, and the State
Theatre;
cinema exhibition operations in Germany (refer to note 1.5 of the financial statements);
ownership, operation and management of hotels and resorts in Australia and overseas;
operation of the Thredbo resort including property development activities; and
property development, investment properties, and investment in shares in unlisted companies.
•
•
•
•
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
COVID-19 has had, and continues to have, a material impact on the Group’s operating divisions. The government-mandated
temporary closure of certain businesses, and subsequent periodic closures, lockdowns and travel restrictions, have materially
impacted all of the Group’s businesses. Further information regarding the impact of COVID-19 on the Group is set out below in the
Operating and Financial Review.
There were no other significant changes in the state of affairs of the Group during the year.
5 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
OPERATING AND FINANCIAL REVIEW
The result for the year was materially impacted by the continued and unprecedented global COVID-19 pandemic resulting in
significant government mandated trading restrictions and closures. These restrictions were most severe in the first half of the year,
and when restrictions eased in the second half, there were signs of a return to pre-COVID-19 demand. Group revenue excluding the
benefit of government subsidies was $540.7 million, down $449.3 million or 45.4% on the prior year. Group revenue in the second
half was up 30.9% on the first half and for divisions that were open, all exceeded revenue on the comparable half year period.
In Entertainment, with cinemas re-opening globally, towards the end of the year studios began to release blockbuster films and the
immediate pent-up demand for the cinema experience was evident. Despite various interstate and international travel restrictions,
Hotels experienced quarter-on-quarter improvement in trading, reaching 63.1% occupancy in the fourth quarter. At Thredbo, whilst
the available audience was impacted by more than 50% due to government restrictions, the changes implemented to adapt to the
constraints mitigated the impact. In addition, record demand for the summer experience contributed to Thredbo achieving a full
year record revenue result.
To mitigate the impact of government trading restrictions on revenue, swift action was taken by management in the development
of new COVID-safe and viable operating models. Active cost management as a result of business transformation initiatives reduced
costs by $158 million, excluding government subsidies. The new business models are expected to deliver longer term benefits with
improved margins post the pandemic. Since the commencement of the pandemic, active cost management strategies have delivered
a total reduction in costs in the period from March 2020 to June 2021 of $264 million.
1. Normalised EBITDA is profit before depreciation, amortisation, the impact of AASB 16 Leases, interest, tax and individually significant items. Normalised
profit is an unaudited non-International Financial Reporting Standards (“IFRS”) measure.
Reduced revenue is before wage subsidies and support (presented separately).
Revenue related cost savings include film hire and cost of goods sold.
Subsidies and support represent incremental amounts recognised during the year ended 30 June 2021 when compared with the year ended 30 June 2020
and includes German government support recognised during the year and wage subsidies including JobKeeper in Australia, the Wage Subsidy in New
Zealand, and Short-Time Pay in Germany. Approximately half of all wage subsidies received in the year represented a pass-through to employees that
were not working during the period.
Active cost management represents all other cost savings.
2.
3.
4.
5.
Since March 2020, the Group has applied government wage subsidy programs including JobKeeper in Australia, the Wage Subsidy
in New Zealand, and Short-Time Pay in Germany. The JobKeeper program concluded in March 2021. Overall, approximately half of
all wage subsidies received to date represented a pass-through to employees that were not working during the period, and as such
provided no net benefit to the Group. The balance of the wage subsidies received assisted the Group in retaining employees during
periods of government-mandated periodic closures, lockdowns and travel restrictions, which have materially impacted all of the
Group’s businesses.
The Group’s unallocated corporate costs were down 12.6% on the prior full year. This included the voluntary salary reductions from
the CEO and Executive, and reduced Board fees. In addition, no bonus payments were made in the financial year. These unallocated
cost savings were partially offset by an increase in insurance premiums of $2.0 million and overall, the Group’s insurance costs
escalated to $11.2 million, up 75.9%.
6 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
The Group achieved a positive normalised EBITDA for the year of $27.2 million. The second half delivered improved EBITDA when
compared with both the prior comparable period and the first half of the current year. All divisions generated a positive EBITDA in
the second half and for the first time Thredbo delivered a positive EBITDA and PBIT in this period.
Good progress has been made on the non-core property divestment strategy, realising $79.6 million of gross proceeds (before selling
costs and tax). Gross proceeds of $49.3 million were settled during the year ended 30 June 2021 and $30.3 million is to settle before
September 2021. The total gross proceeds exceeded the most recent valuations for these properties by $29.8 million, a 60% increase.
Further non–core properties have been identified and are being prepared for sale in the year ending 30 June 2022 with additional
non-core properties being contemplated for potential sale in FY23. The Group is on track to achieve the goal of realising proceeds
of $250 million in non-core asset sales within two years.
The overall independent value of the Group’s property portfolio increased 4.2% to $2,057.4 million at 30 June 2021, notwithstanding
the sale of non-core properties last valued at $49.8 million for proceeds of $79.6 million. Excluding Rydges Melbourne, Rydges North
Sydney and Rydges Queenstown, the portfolio valuations increased 8.4%. Rydges Melbourne has been identified as a priority asset
with a major upgrade programme required and, subject to cost assessments, planned to close for works to commence and complete
in calendar year 2022. Rydges North Sydney has been identified as a non-core property and is expected to be sold in the 2021/22
financial year. The Rydges Queenstown accommodation wings were closed in February 2019 and work is underway to determine
options for seismic strengthening.
Good progress was made on the two major property developments with significant initial value of $37 million added to the 525
George Street property through the Stage 1 Development Application (“DA”) approval. The Stage 2 DA application is expected to be
lodged this financial year and, subject to market conditions and the sale of the 109 apartments, this project is targeted to commence
in 2023/24 and be completed in 2026/27. The DA for the podium component of the proposed 458-472 George Street development
has been approved. This will include ground floor retail space (340m2) on George Street, an extension of the QT Sydney hotel with
72 additional hotel rooms, a conference centre and QT rooftop bar. The Stage 1 DA for the commercial office tower above the
podium will be lodged this financial year.
Improved trading in the second half, active cost management and the execution on the non-core property divestment strategy, has
enabled the Group to reduce gross debt to $476.4 million and net debt to $355.5 million at 30 June 2021.
The Group continues to make strong progress on transformation and future growth initiatives including:
• Hotel network expansion maximising local capabilities, introducing innovative commercial structures, and evaluating
emerging accommodation sectors; a record year of hotel network expansion was achieved.
• Right-sizing of the cinema portfolio, with ‘fewer and best’ locations and a targeted investment in proven ‘Cinema of the
•
Future’ concepts; new upgrades have delivered double digit growth in key metrics.
Transformation of the Thredbo business model and an enhanced on-mountain experience including the introduction of
year-round new revenue opportunities; a record earnings year was achieved.
• Growing the value of the property portfolio through major property developments at 458-472 George Street and 525
George Street in Sydney, investment in key hotel assets and divestment of non-core properties; property portfolio
increased in value, and on track to achieve proceeds of $250 million in non-core asset sales within two years.
Transformation of support functions to future-proof and increase agility and productivity; critical investment has been
required in IT and the first stage of the cloud migration project has been completed, established a centralised procurement
function and on track to deliver savings in future years, development of data dashboards and customised rostering tools to
underpin the new operating models.
•
• Commitment to customer-centric strategies to improve customer satisfaction and ensure best leverage of customer data;
customer sentiment measurement established, Group data project underway, eCommerce enhancements and
development and trial of new mobile customer transaction options.
•
• Highly engaged culture: ‘ELEVATE’ people framework and tools implemented including recognition of performance against
the Group’s vision, values and strategic goals, retention incentives and alternative recruitment programmes implemented
to recognise the competitive employment market.
This year, the Group will formally launch its corporate social responsibility strategy, details of which will be finalised and
communicated to shareholders and other stakeholders during the year ending 30 June 2022. In addition, to support the
Group’s existing climate change risk management framework, the Group has for the first time disclosed its Scope 1 and 2
carbon emissions in the Corporate Governance Statement released separately to ASX, and will start to report under the
Financial Stability Board’s Task Force on Climate-related Financial Disclosures (“TCFD”) framework with effect from the year
ending 30 June 2022.
7 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
July 2021 Result (unaudited)
Whilst the COVID-19 Delta variant outbreak and government lockdowns in Australia in June 2021 did not significantly impact the
result for the year, this has materially impacted the results for the Group’s Australian divisions in July 2021. New Zealand operated
largely without restrictions in July, however in August the New Zealand market also entered into a period of lockdown. German
cinemas have reopened from 1 July 2021 with government restrictions in place. The unaudited Group EBITDA for July 2021 was $0.4
million, up $6.7 million on July 2020, which included $9.6 million in relevant government wage subsidies.
Thredbo delivered a positive contribution in July despite restrictions limiting access to around 25% of the available audience. The
government mandated closure of Thredbo in August will materially impact the Winter season.
In Germany, initial trading results have been encouraging notwithstanding various capacity restrictions applicable across the German
states, with July 2021 achieving the best admissions total since July 2018. The Group’s Australian and New Zealand cinemas have
performed well when they have been open and when content has been available, with New Zealand EBITDA positive and up
approximately $1 million on July 2020. The Group’s Hotels and Resorts in New Zealand were EBITDA positive and ahead of July 2020,
whilst in Australia the result was severely impacted due to the increase in comparative year-on-year government lockdowns and
restrictions resulting in the first negative EBITDA since the pandemic commenced.
The absence of direct Australian government support in the current lockdowns for large businesses, including the EVENT Group, has
been challenging and the Group continues to implement active cost management strategies in response to these government-
mandated restrictions. It was pleasing to see the immediate response from the New Zealand Government with the return of the
wage subsidy scheme to support all businesses in retaining employees through the lockdown period. The speed of the government
vaccine rollout program will determine the timeline for re-opening in the affected areas of Australia and New Zealand.
The Group is confident that once restrictions are eased, the pent-up demand and swift rebound experienced in the second half, will
continue. The Group’s Hotels group continues to outperform the local market, there is a strong line up of films to release when all
cinemas can reopen and the new business model for Thredbo provides foundation for growth. The Group has a strong balance
sheet and is in an advantageous position to face the immediate challenges and invest in growth for the future.
8 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
T
R
O
P
E
R
’
S
R
O
T
C
E
R
I
D
d
n
a
t
s
e
r
e
t
n
i
e
r
o
f
e
b
t
l
u
s
e
r
d
e
s
i
l
a
m
r
o
n
e
h
T
.
t
l
u
s
e
r
r
a
e
y
r
o
i
r
p
e
h
t
e
v
o
b
a
,
0
0
0
1
5
9
8
$
,
,
,
)
0
0
0
7
8
9
6
5
$
,
f
o
s
s
o
l
:
0
2
0
2
(
,
0
0
0
6
3
0
8
4
$
,
s
a
w
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
y
l
l
a
u
d
i
v
i
d
n
i
d
n
a
x
a
t
r
e
t
f
a
s
s
o
l
t
e
n
d
e
t
r
o
p
e
R
p
u
o
r
G
e
h
t
f
o
w
e
i
v
r
e
v
O
,
0
0
0
1
5
0
4
5
$
,
f
o
s
s
o
l
a
s
a
w
x
a
t
r
e
t
f
a
t
l
u
s
e
r
d
e
s
i
l
a
m
r
o
n
e
h
t
d
n
a
,
,
)
0
0
0
2
1
0
4
1
$
,
f
o
t
i
f
o
r
p
:
0
2
0
2
(
,
0
0
0
1
6
0
1
5
$
,
f
o
s
s
o
l
a
s
a
w
e
s
n
e
p
x
e
x
a
t
e
m
o
c
n
i
:
l
w
o
e
b
d
e
n
i
l
t
u
o
s
i
t
l
u
s
e
r
d
e
s
i
l
a
m
r
o
n
0
0
0
’
$
t
i
f
o
r
p
t
e
n
d
e
t
r
o
p
e
r
o
t
n
o
i
t
a
i
l
i
c
n
o
c
e
R
0
0
0
’
$
6
1
B
S
A
A
f
o
t
c
a
p
m
I
6
5
7
1
1
,
)
4
5
6
8
1
(
,
8
2
7
3
3
,
9
4
9
0
2
,
4
5
3
6
,
0
2
0
,
7
3
)
3
1
1
7
1
(
,
)
3
1
5
2
3
(
,
7
0
5
,
4
)
2
8
6
8
(
,
)
5
7
1
,
4
(
)
2
1
8
2
5
(
,
)
7
8
9
,
6
5
(
8
5
4
1
,
6
2
4
0
2
,
4
2
1
1
,
―
―
―
8
0
0
,
3
2
)
3
8
3
4
2
(
,
)
5
7
3
,
1
(
9
8
4
)
6
8
8
(
4
t
l
u
s
e
r
0
0
0
’
$
)
0
7
6
8
(
,
)
2
1
1
0
2
(
,
4
0
6
2
3
,
9
4
9
0
2
,
4
5
3
6
,
)
3
1
1
7
1
(
,
2
1
0
,
4
1
)
0
3
1
8
(
,
2
8
8
,
5
)
1
7
1
9
(
,
)
9
8
2
,
3
(
e
h
t
f
o
y
r
a
m
m
u
s
A
,
.
)
0
0
0
9
8
2
3
$
,
f
o
s
s
o
l
:
0
2
0
2
(
1
d
e
t
a
t
s
e
R
0
2
0
2
e
n
u
J
0
3
d
e
s
i
l
a
m
r
o
N
d
n
a
d
e
s
i
l
a
m
r
o
N
n
o
i
t
a
i
c
e
r
p
e
D
3
n
o
i
t
a
s
i
t
r
o
m
a
2
A
D
T
I
B
E
t
i
f
o
r
p
t
e
n
d
e
t
r
o
p
e
r
o
t
n
o
i
t
a
i
l
i
c
n
o
c
e
R
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
)
9
9
3
3
3
(
,
)
6
9
6
1
1
(
,
)
8
1
4
8
2
(
,
)
6
1
9
3
(
,
)
8
8
7
2
(
,
)
4
2
3
2
(
,
)
1
4
5
,
2
8
(
9
2
7
4
2
,
)
6
1
4
8
(
,
2
2
0
1
6
,
5
6
8
4
2
,
2
4
1
9
,
3
5
5
,
6
9
)
9
8
7
4
1
(
,
)
5
8
2
3
2
(
,
)
3
5
4
2
4
(
,
7
1
8
5
,
4
2
1
5
2
,
3
0
0
4
1
,
)
0
5
9
4
1
(
,
)
4
4
7
,
5
3
(
)
4
9
1
1
4
(
,
)
8
3
9
,
6
7
(
8
2
1
7
1
,
)
0
1
8
,
9
5
(
4
7
7
1
1
,
)
6
3
0
,
8
4
(
0
0
0
’
$
6
1
B
S
A
A
f
o
t
c
a
p
m
I
9
3
1
6
1
3
5
1
,
―
―
―
)
8
3
1
(
7
1
3
,
5
1
)
0
8
2
3
2
(
,
4
0
2
2
,
)
3
6
9
7
(
,
)
9
5
7
,
5
(
4
t
l
u
s
e
r
0
0
0
’
$
)
1
0
6
8
3
(
,
)
2
9
5
2
4
(
,
5
5
9
5
,
4
2
1
5
2
,
3
0
0
4
1
,
)
0
5
9
4
1
(
,
)
1
6
0
,
1
5
(
)
4
1
9
7
1
(
,
)
5
7
9
,
8
6
(
4
2
9
4
1
,
)
1
5
0
,
4
5
(
0
0
0
’
$
0
0
0
’
$
3
n
o
i
t
a
s
i
t
r
o
m
a
2
A
D
T
I
B
E
)
1
0
2
2
3
(
,
)
6
7
9
8
(
,
)
1
5
6
4
(
,
)
5
4
7
2
(
,
)
5
1
2
2
(
,
)
4
9
4
7
2
(
,
)
2
8
2
,
8
7
(
)
0
0
4
6
(
,
)
6
1
6
3
3
(
,
9
4
4
3
3
,
5
7
7
9
2
,
8
4
7
6
1
,
1
2
2
,
7
2
)
5
3
7
2
1
(
,
1
2
0
2
e
n
u
J
0
3
d
e
s
i
l
a
m
r
o
N
d
n
a
d
e
s
i
l
a
m
r
o
N
n
o
i
t
a
i
c
e
r
p
e
D
s
m
e
t
i
T
L
U
S
E
R
P
U
O
R
G
D
E
T
A
D
I
L
O
S
N
O
C
l
d
n
a
a
e
Z
w
e
N
d
n
a
a
i
l
a
r
t
s
u
A
i
t
n
e
m
n
a
t
r
e
t
n
E
e
r
u
s
i
e
L
d
n
a
y
t
i
l
a
t
i
p
s
o
H
s
t
r
o
s
e
R
d
n
a
s
l
e
t
o
H
y
n
a
m
r
e
G
i
t
r
o
s
e
R
e
n
p
A
o
b
d
e
r
h
T
l
s
t
n
e
m
t
s
e
v
n
I
r
e
h
t
O
d
n
a
y
t
r
e
p
o
r
P
s
e
s
n
e
p
x
e
d
n
a
s
e
u
n
e
v
e
r
d
e
t
a
c
o
l
l
a
n
U
t
n
a
c
i
f
i
n
g
i
s
y
l
l
a
u
d
i
v
i
d
n
i
e
r
o
f
e
b
t
i
f
o
r
P
)
e
s
n
e
p
x
e
(
/
t
i
d
e
r
c
x
a
t
e
m
o
c
n
I
s
t
s
o
c
e
c
n
a
n
i
f
t
e
N
x
a
t
f
o
t
e
n
–
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
y
l
l
a
u
d
i
v
i
d
n
I
s
s
o
l
t
e
n
d
e
t
r
o
p
e
R
,
s
t
n
e
m
e
t
a
t
s
l
a
i
c
n
a
n
i
f
e
h
t
o
t
2
2
e
t
o
N
n
.
i
d
e
n
i
l
t
u
o
s
A
.
s
e
s
a
e
L
6
1
B
S
A
A
f
o
t
c
a
p
m
i
i
e
h
t
g
n
d
u
l
c
x
e
d
n
a
)
s
t
n
e
m
e
t
a
t
s
l
a
i
c
n
a
n
i
f
e
h
t
o
t
2
2
e
t
o
n
n
.
i
d
e
n
i
l
t
u
o
s
a
(
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
y
l
l
a
u
d
i
v
i
d
n
i
e
r
o
f
e
b
r
a
e
y
e
h
t
r
o
f
t
i
f
o
r
p
s
i
t
l
u
s
e
r
d
e
s
i
l
a
m
r
o
N
.
e
r
u
s
a
e
m
S
R
F
I
–
n
o
n
d
e
t
i
d
u
a
n
u
n
a
s
i
t
l
u
s
e
r
d
e
s
i
l
a
m
r
o
n
e
h
T
.
s
n
o
i
t
a
r
e
p
o
s
’
p
u
o
r
G
e
h
t
f
o
e
c
n
a
m
r
o
f
r
e
p
e
v
i
t
a
e
r
e
h
t
g
n
i
s
s
e
s
s
a
n
l
i
d
n
a
s
e
c
r
u
o
s
e
r
e
t
a
c
o
l
l
a
o
t
r
e
c
i
f
f
i
O
e
v
i
t
u
c
e
x
E
f
e
h
C
s
’
p
u
o
r
G
e
h
t
y
b
d
e
s
u
s
i
e
r
u
s
a
e
m
s
i
h
t
.
s
e
s
a
e
L
6
1
B
S
A
A
f
o
t
c
a
p
m
i
i
e
h
t
g
n
d
u
l
c
x
e
d
n
a
n
o
i
t
a
s
i
t
r
o
m
a
d
n
a
n
o
i
t
a
i
c
e
r
p
e
d
e
r
o
f
e
b
r
a
e
y
e
h
t
r
o
f
)
l
w
o
e
b
e
e
s
(
t
l
u
s
e
r
d
e
s
i
l
a
m
r
o
n
e
h
t
s
i
A
D
T
I
B
E
d
e
s
i
l
a
m
r
o
N
.
)
s
t
n
e
m
e
t
a
t
s
l
a
i
c
n
a
n
i
f
e
h
t
o
t
5
1
e
t
o
n
n
.
i
d
e
n
i
l
t
u
o
s
a
(
y
c
i
l
o
p
g
n
i
t
n
u
o
c
c
a
n
i
s
e
g
n
a
h
c
f
o
t
l
u
s
e
r
a
s
a
d
e
t
a
t
s
e
r
n
e
e
b
s
a
h
n
o
i
t
a
m
r
o
f
n
i
e
v
i
t
a
r
a
p
m
o
c
e
h
T
.
s
e
s
a
e
L
6
1
B
S
A
A
f
o
t
c
a
p
m
i
e
h
t
s
e
d
u
l
c
x
e
n
o
i
t
a
s
i
t
r
o
m
a
d
n
a
n
o
i
t
a
i
c
e
r
p
e
D
.
1
.
2
.
3
.
4
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
9
D I R E C T O R S ’ R E P O R T
Overview of the Group (continued)
An analysis of the last five years is outlined below:
Total revenue and other income ($’000)
Basic earnings per share (cents)
Dividends declared(a) ($’000)
Dividends per share (cents)
2021
692,474
(29.8)
–
–
Restated
2020(b)
1,030,921
(35.4)
33,851
21
2019
2018
2017
1,304,288
69.6
83,822
52
1,289,738
69.8
83,670
52
1,294,269
69.6
81,886
51
(a) No dividends were declared in relation to the year ended 30 June 2021 and no final dividend was declared in relation to the year ended 30 June 2020.
(b) The 2020 comparative information has been restated as outlined in note 1.5.
CineStar Germany
On 22 October 2018, the sale of the German cinema exhibition operations to Vue International Bidco plc (“Vue”), subject to German
Federal Cartel Office (“FCO”) approval, was announced. On 3 March 2020, the Group announced that the FCO had provided
conditional clearance for the transaction subject to the divestment of six sites within a six-month period. On 21 August 2020 the
Group announced that a sale of one of these six sites had been completed and that the FCO had provided an extension of time for
satisfaction of its conditions in respect of the remaining five sites until 13 November 2020. In December 2020, the sale was deemed
prohibited by the FCO as a result of Vue’s failure to satisfy the FCO’s condition for the sale transaction. The Group continues to
consider all of its legal options in relation to Vue’s breach of the sale and purchase agreement. Further details in relation to the
transaction have been provided within note 1.5 of the financial statements.
Individually significant items
Individually significant items comprised the following:
Profit on sale of properties
Reversal of impairment charges booked in previous years
Impairment charges
Write-off of assets
Restructure costs, redundancies and staff retention costs arising as a result of COVID-19
Hotel and cinema pre-opening costs
Legal and other costs associated with the sale of a business segment
Other expenses (net of income items)
Individually significant items expense before income tax
Income tax benefit
Individually significant items (expense)/income after income tax
2021
$’000
2020
$’000
35,205
3,997
(9,920)
–
(5,895)
–
(4,683)
(4,794)
13,910
(2,136)
11,774
–
2,219
(56,910)
(6,232)
(6,723)
(592)
(2,263)
(2,448)
(72,949)
20,137
(52,812)
Investments
The Group acquired property, plant and equipment totalling $30,283,000 during the year. The significant acquisitions and capital
additions include the following:
•
cinema developments at Village Clayton (joint venture) in Victoria and EVENT Edmondson Park (joint venture) in New South
Wales;
cinema refurbishments at EVENT Toowoomba and EVENT George Street in Sydney, EVENT Innaloo in Western Australia and
EVENT Queensgate in New Zealand; and
refurbishment requirements for Thredbo, cinemas, hotels and resorts.
•
•
On 30 April 2021, the Group acquired 100% of Jucy Snooze Limited (“Snooze”), having previously acquired a 50% interest on 3
February 2020. The net consideration paid for the acquisition of the remaining 50% interest was NZ$3,718,000 (A$3,460,000).
Further information relating to the acquisition has been outlined within note 5.1 of the Annual Report.
Property
The Group announced in February 2021 the initiation of a strategy to divest non-core property assets, and strong progress has been
made with this strategy during the year ended 30 June 2021. The Group has also continued to make progress with the two major
development projects at 525 George Street and 458-472 George Street, Sydney. Further information regarding these matters is set
out below in the Review of Operations by Division.
10 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
The Group’s interest in land and buildings and integral plant and equipment, including long term leasehold land and improvements,
is independently valued by registered qualified valuers on a progressive three-year cycle. Independent valuations for the majority
of the Group’s properties were obtained at 30 June 2021, and the total value of the Group’s interest in land and buildings based on
these independent valuations is $2,057,443,000 (refer to Notes 3.3, 3.4 and 3.5 to the financial statements) whilst the total written-
down book value of these land and buildings including integral plant and equipment at 30 June 2021 was $1,112,920,000.
The total value of the Group’s properties as at 30 June 2021 included:
Valuation of:
Interest in land and buildings
Investment properties
Assets held for sale (c)
Less: assets subsequently sold (d)
Total
Valuations
2021 (a)
$’000
Carrying value
2021
$’000
Valuations
2020 (a), (b)
$’000
Carrying value
Restated 2020 (a), (b)
$’000
1,965,563
64,500
27,380
2,057,443
–
2,057,443
1,030,447
64,500
17,973
1,112,920
–
1,112,920
1,953,202
74,550
–
2,027,752
(49,800)
1,977,952
1,092,506
74,550
–
1,167,056
(37,148)
1,129,908
(a) Valuations are based on independent valuations (as outlined in note 3.3 of the 2021 Annual Report).
(b) The comparative information has been restated as a result of changes in accounting policy (as outlined in note 1.5 of the 2021 Annual Report).
(c) Assets held for sale have been independently valued at 30 June 2021.
(d) Assets subsequently sold include those freehold assets disposed of during the year ended 30 June 2021.
Capital structure
Cash and term deposits at 30 June 2021 totalled $120,978,000 (2020: $76,594,000) and total bank debt outstanding was
$476,428,000 (2020: $488,300,000).
Treasury policy
The Group manages interest rate risk in accordance with a Board approved treasury policy covering the types of instruments, range
of protection and duration of instruments. The financial instruments cover interest rate swaps and forward rate agreements.
Maturities of these instruments are up to a maximum of five years. Interest rate swaps and forward rate agreements allow the
Group to raise long term borrowings at floating rates and swap a portion of those borrowings into fixed rates.
The approved range of interest rate cover is based on the projected debt levels for each currency and reduced for each future year.
At 30 June 2021, the Group had no interest rate hedges (2020: no interest rate hedges).
Liquidity and funding
As at 30 June 2021, the Group’s secured bank debt facilities comprised the following:
$650,000,000 revolving multi-currency loan facility maturing on 3 July 2023;
$43,500,000 non-revolving loan facility maturing on 3 January 2022; and
$2,500,000 credit support facility (for the issue of letters of credit and bank guarantees).
•
•
•
The debt facilities are supported by interlocking guarantees from most Australian and New Zealand domiciled Group entities and
secured by specific property mortgages. The debt facilities were amended and restated on 3 July 2020 and initially consisted of the
$650,000,000 revolving multi-currency loan, a $100,000,000 non-revolving loan facility and $2,500,000 credit support facility. In
relation to the non-revolving loan facility, the Group repaid and cancelled $56,500,000 of that facility during the year.
Debt drawn under the loan facilities bears interest at the relevant inter-bank benchmark reference rate plus a margin of between
1.75% and 4.35% per annum. As at 30 June 2021, the Group had drawn $476,428,000 (2020: $488,300,000) under the loan facilities
and $1,225,000 under the credit support facility (2020: $1,124,000). The debt facilities replaced a $545,000,000 revolving multi-
currency loan facility and a $15,000,000 credit support facility that were in place at 30 June 2020.
Cash flows from operations
Net cash inflows from operating activities as reported decreased to $148,137,000 from $176,367,000 in the prior year. After
adjusting to include the payment of lease liabilities, net cash inflows from operating activities decreased to $45,412,000 from
$77,035,000 in the prior year. This movement was driven by the full impact of COVID-19 on the Group’s operations during the year
ended 30 June 2021. Adjusted net cash flow from operating activities improved significantly in the second half of the year ended
30 June 2021 to net inflows of $77,976,000, from net outflows of $29,564,000 in the first half.
11 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
Impact of legislation and other external requirements
Since March 2020, a number of statutory requirements have been introduced in Australia, New Zealand and Germany by relevant
authorities in response to COVID-19. Where applicable, these requirements have been satisfied by the Group in each territory. Safety
and wellbeing remain the Group’s highest priority. Detailed COVID-19 safety plans and staff training programs have been developed
for each of the Group’s operating divisions. In addition, to ensure these plans are consistent with best practice in Australia, advice
was also sought from infectious diseases experts and the advice was incorporated into the Group’s safety plans.
There were no other changes in environmental or other legislative requirements during the year that have significantly impacted
the results of operations of the Group.
REVIEW OF OPERATIONS BY DIVISION
Entertainment Group
The Group’s Entertainment divisions continue to perform well when films are released, and Government mandated restrictions are
lifted. A combination of the benefits from the ‘Cinema of the Future’ strategic initiatives and new operating models have delivered
significant benefits when cinemas have been permitted to reopen, with an increase in revenue per admission, a lower cost to serve,
and improved customer sentiment.
The impact of COVID-19 globally resulted in cinema closures and studios making the decision to delay film releases in cinemas until
major markets had re-opened. Government restrictions and mandated closures have materially impacted the Group’s cinema
operations during the year. The German cinemas initially reopened in July and August 2020 and traded with Government mandated
capacity restrictions in place before closing again for nearly eight months from 2 November 2020. In Australia due to the various
state lockdowns, including the extended Victorian lockdown from July to November 2020, every trading month was impacted with
closures or government mandated restrictions. The New Zealand circuit was less impacted by government mandated restrictions
but suffered from the delay of major blockbuster film titles whilst key overseas markets remained closed.
The enduring customer appeal of cinemas continues to be demonstrated by strong and immediate demand when cinemas are open
and blockbuster titles are released. In Australia and New Zealand, Easter weekend outperformed the pre-COVID-19 Easter weekend
in 2019 in terms of box office, admissions and spend per head. In Germany, initial trading results have been encouraging
notwithstanding various capacity restrictions applicable across German states, with July 2021 achieving the best admissions total
since July 2018.
The reopening of cinemas in the USA and European markets because of more advanced vaccination programmes, has unlocked the
release of major blockbusters globally. Whilst there were fewer blockbuster films released in the second half relative to pre-COVID
2019, most of the franchise blockbusters released traded ahead of box office expectations and outperformed the prior release in
the franchise including Godzilla vs Kong (Godzilla: King of the Monsters), Fast and Furious 9 (Fast and Furious presents Hobbs and
Shaw) and A Quiet Place 2 (A Quiet Place). All results indicate that cinema rebounds quickly when blockbusters are available, due to
pent up demand for customers to return to cinemas.
Entertainment Australia
As at 30 June
Cinema locations*
Cinema screens*
2021
71
680
2020
Movement
72
686
(1)
(6)
* Managed and joint venture cinema sites (excludes Moonlight Cinema sites and screens and the State Theatre).
The Group’s Entertainment Australia revenue was $219.3 million, a 35.9% decrease on the prior year. The period was materially
disrupted by the various State government mandated closures and COVID-19 operating restrictions. In all States, every month of
the year was impacted due to government mandated closures or restrictions on operations, as outlined in the diagram below.
12 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
Impact of Australian state and territory government mandated closures or restrictions in the year ending 30 June 2021
D I R E C T O R S ’ R E P O R T
As a result of the above, the Australian Box Office decreased by 46.6% on the prior year due to the major disruption from Australian
government mandated restrictions and blockbuster titles being delayed. Only six blockbuster titles were released during the year
versus 14 in the prior year due to COVID-19 related cinema closures globally. The absence of blockbuster content resulted in the top
10 films grossing $182.2 million, a decrease of 50.0% on the collective gross of the top ten titles in the prior year.
Second half highlights
The second half result was significantly improved on the first half, with positive EBITDA of $15.7 million compared with an EBITDA
loss of $18.9 million in the first half, an improvement of $34.6 million. The key reasons for the improvement in performance in the
second half include:
1. More blockbuster films were released due to the gradual reopening of cinemas globally in markets with advanced COVID-
19 vaccination programs. Three of the six blockbuster films for the year were released in the second half and a further two
of these blockbuster films were released on Boxing Day and earned the majority of their box office in the second half. Only
one title, Tenet, earned the majority of its box office in the first half.
2. An immediate return of audiences due to pent-up demand for the cinema experience across all customer segments. In
addition, sequels including Godzilla vs Kong, Fast and Furious 9 and A Quiet Place 2 outperformed the previous titles in
their respective series. All customer segments have returned to the cinema with analysis of the Group’s Cinebuzz
membership database clearly showing similar audience demographics by age when compared with the pre-COVID-19
period.
3. Key revenue metrics including spend per head and average admission price delivered strong increases across the circuit
and the upgraded Cinema of the Future locations further exceeded the circuit averages.
4. Strong active cost management with total savings excluding government subsidies of $46.8 million in the year. In addition,
the success of the new operating model has demonstrated significant margin improvement when blockbuster titles were
released, with an over 20 percentage point improvement in profit per admission achieved during the release of Fast and
Furious 9 when compared with the previous title in that series.
5.
Increased customer sentiment because of desire for the cinema experience, COVID-safe practices at a lower cost to serve.
Premium concepts were strongly favoured by customers, reflected in the admission contribution from premium concepts increasing
by 3.9 percentage points. In addition, a period of record merchandising spend per head was achieved resulting in every month in
the year being a record, and overall merchandising spend per head grew by 24.5% over the prior period. The new merchandising
layouts, continued growth of the owned brand Parlour Lane and eCommerce enhancements underpinned this growth. The
percentage of admissions purchased online also increased by 6.3 percentage points. It is evident that the pent-up demand factor is
driving customers to spend more when they can visit a cinema.
13 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
The Group’s direct customer relationships remain exceptionally strong with Cinebuzz representing 71% of cinema visits and 88% of
online transactions. The total registered member database at 30 June 2021 was 2.4 million, consistent with the prior year.
Recognised COVID-19 safety plans were developed, implemented and endorsed by infectious disease experts. A new variable
operating model was designed to try and offset the cost of COVID-19 safety plan operation and better reflect trading patterns. This
has resulted in a strong improvement in customer satisfaction evidenced by improved net promoter scores, up nine points across
the circuit, at a reduced cost to serve. In addition, flexible work arrangements were introduced for required roles, and the review
and, where appropriate, restructure of head office functions continued.
Negotiations with landlords in relation to rental abatements and deferral for the COVID-19 closure period and the subsequent
rebuilding phase were substantially completed prior to 30 June 2021. Rental abatements are recognised when formal legal
agreements, and the majority have been recognised in the second half of the financial year.
The Group opened a new six-screen cinema, Event Cinemas Ed Square, Edmondson Park, Western Sydney in April 2021. The complex
is comprised of two 3-seat concept Vmax auditoriums and four traditional auditoriums with a choice of full recliners or wide-
cushioned standard seats. The cinema has performed very strongly from opening until the Greater Sydney lockdown in late June
2021, with the average admission price 28.0% higher than the circuit average, and merchandising spend per head for the site 33.9%
up on the circuit average excluding Gold Class.
During the year the Group refurbished the five screen Toowoomba Grand complex. In line with the strategy of targeted investment
in premium concepts, a new Vmax auditorium added to the existing complex which consisted of the new 3-seat concept format of
daybeds, reclining seats and premium fixed back seating delivering growth in key metrics.
As part of the pre-COVID-19 strategy to divest or close the underperforming cinemas in portfolio, the Group closed the Townsville
City cinema (5 screens) and Adelaide City cinema (5 screens) in July 2020, and exited the lease at Arndale (8 screens).
Entertainment New Zealand
(Note: all amounts in Australian dollars unless otherwise stated)
As at 30 June
Cinema locations *
Cinema screens *
* Managed and joint venture cinema sites.
2021
20
140
2020
Movement
21
144
(1)
(4)
Entertainment New Zealand revenue was $41.7 million or 39.4% below the prior year. Cinemas remained open with the exception
of the government mandated closure of the Auckland cinemas for an 18-day period in August when the city went into level three
COVID-19 restrictions. Cinemas across the country were impacted by capacity restrictions from mid-August to early October. Despite
the relaxation of COVID-19 restrictions in New Zealand, box office revenue was impacted by studio decisions to delay the release of
blockbuster films globally until key USA and European markets were able to reopen.
New Zealand nationwide box office decreased by 35.1% over the prior year. During the year there were only eight titles that grossed
over $2 million at the New Zealand Box Office: Godzilla vs Kong (NZ$4.5 million), Peter Rabbit 2 (NZ$3.9 million), Wonder Woman
1984 (NZ$3.9 million), The Croods: A New Age (NZ$3.7 million), Fast and Furious 9 (NZ$3.7 million), Tenet (NZ$3.0 million), A Quiet
Place Part II (NZ$2.5 million) and Trolls World Tour (NZ$2.3 million); compared to 15 titles in the prior comparable period. The
absence of blockbuster content resulted in the top 10 films grossing $30.6 million, a decrease of 48.9% on the collective gross of the
top ten titles in the prior year. Whilst there were no titles over NZ$6 million at the New Zealand Box Office during the financial year,
the number of titles released remained strong in the context of the impact of COVID-19-related restrictions.
In New Zealand, where there are less restrictions, the majority of sequel titles including Fast and Furious 9, Trolls: World Tour, The
Conjuring: The Devil Made Me Do It and Godzilla vs Kong exceeded the box office performance of the previous titles in those
respective series.
As with Entertainment Australia, the second half result was significantly improved on the first half. Adjusting for wage subsidies the
result for the second half was a positive EBITDA of $1.2 million compared with an adjusted EBITDA loss of $5.6 million in the first
half, an improvement of $6.8 million.
A material improvement in key metrics was driven by new pricing strategies and operational model changes introduced in 2020 in
response to the impact of COVID-19. Similar to the Australian market, customers continued to prefer the Group’s premium seating
options, with the proportion of admissions choosing these options increasing by 5.3 percentage points over the prior year. In
14 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
addition, a record period of merchandising spend per head was achieved up 20.0%. Cinebuzz maintained its strong influence with
Cinebuzz representing approximately 78.4% of all online transactions.
The Net Promoter Score for Entertainment New Zealand showed a strong improvement of 3 points to 46 points, resulting in an
improved customer experience at a lower cost to serve.
During the year the Group continued the cost mitigation plans which were implemented in response to the impact of COVID-19,
resulting in active cost management resulted in savings of $11.0 million during the year.
Negotiations with landlords in relation to rental abatements and deferral for the COVID-19 closure period and the subsequent
rebuilding phase were substantially completed prior to 30 June 2021. Rental abatements are recognised when formal legal
agreements, and the majority have been recognised in the second half of the financial year.
As part of the pre-COVID-19 strategy to divest or close the underperforming cinemas in the portfolio, the Group closed the four-
screen Mount Maunganui cinema in July 2020, and the Group signed a contract for the sale of this property in June 2021 at NZ$5.2
million, NZ$2.1 million above the most recent valuation.
Entertainment Germany
As at 30 June
Cinema locations *
Cinema screens *
* Managed and joint venture cinema sites.
2021
49
384
2020
Movement
51
394
(2)
(10)
The German circuit result for the year was defined by the German government-mandated closure of cinemas for most of the year,
including the entire second half, in response to the second wave of COVID-19 in Europe.
Given the extended market closure, even less films were able to be released in Germany. The highest grossing titles within the
German market included: Tenet (1.6 million admissions); After Truth (0.9 million admissions) and Jim Knopf und die Wilde 13 (0.7
million admissions). The top ten films achieved total market admissions of 5.1 million, 86.2% below the admissions achieved by the
top ten films in the prior year when the market was open.
Entertainment Germany revenue was $87.5 million, 64.5% below the prior year due to the impact of COVID-19. In the first half of
the financial year, cinemas re-opened, and nationwide box office recovered to only 53% down on prior year for the month of
September 2020, a strong result given the absence of major blockbuster releases as outlined above for Australia and New Zealand.
However, because of the German government directive to close cinemas in response to a second wave of COVID-19 in Europe, all
cinemas were closed in November 2020 through to the end of June 2021.
The Entertainment Germany division reopened on 1 July 2021. Given the extended lockdown period in Germany, the Group has
mitigated some of the financial impact with active cost management initiatives and has continued to pursue available German
government subsidies and support for our German personnel and operations. The German government has implemented a damage
compensation program for affected businesses for the November and December 2020 lockdown period, and a subsidy program for
the January to June 2021 period referred to as Bridging Aid III. Applications for Bridging Aid III subsidies are currently being prepared
and assessed. Applications for the German government’s November and December 2020 damage compensation program have been
lodged with a total value of €27.5 million received to date.
The active cost mitigation plans implemented by the Group resulted in a total of $64.6 million of savings during the year, including
the benefit of rent abatements, and excluding the government support outlined above. Including the benefit of German government
support and subsidies, and rent abatements finalised with landlords, normalised EBITDA was a loss of $33.6 million and normalised
PBIT was a loss of $42.6 million.
Initial trading results have been encouraging notwithstanding various capacity restrictions applicable across the various German
states. “3G” rules, referring to the German words geimpft (vaccinated), getestet (tested) and genesen (recovered), apply in certain
regions and require that customers admitted to a cinema provide evidence that they are vaccinated, have a recent negative COVID-
19 test, or have recovered from COVID-19.
The sale of CineStar to Vue International Bidco plc was prohibited by the German Federal Cartel Office (FCO) in December 2020 as
a result of Vue’s failure to satisfy the FCO’s condition for the transaction. The Group continues to consider all of its legal options in
relation to Vue’s breach of the sale and purchase agreement.
15 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
Hotels and Resorts
As at 30 June
Locations *
Rooms *
Locations (owned)
Rooms (owned)
D I R E C T O R S ’ R E P O R T
2021
70
11,071
25
3,705
2020
Movement
66
10,366
26
3,805
4
705
(1)
(100)
* Owned, managed and other hotels with which the Group has a branding, license or affiliate agreement.
Notwithstanding the impact of Government restrictions and lockdowns, which impacted a total of 205 trading days in Australia and
New Zealand, overall Hotels and Resorts revenue was $202.7 million, a decrease of only 27.0% on the prior comparable period,
reflecting the Group’s strong market share in a limited market.
Earnings momentum gathered pace throughout the year with trends improving significantly in the second half. All key metrics
showed steady quarter on quarter growth throughout the year, with occupancy reaching 63.1% in the fourth quarter. This was
despite trading disruption caused by the measures initiated by all Australian State and Territory governments to contain a spike in
COVID cases in late May and June.
Occupancy in the Group’s owned hotels was 51.7% with a revenue per available room (revpar) of $88, down on the prior comparable
period by 14.1 percentage points and $32 respectively. Both measures surged in the second half of the year supported by resilient
domestic leisure demand and the early stages of corporate travel recovery with peak weekly occupancy by brand for Rydges (68.6%),
QT (80.2%) and Atura (83.9%), all achieved in April 2021.
Business transformation initiatives conducted in the early stages of the pandemic, combined with improving revenues and good
market share is paving the path to an earnings recovery when current lockdowns and restrictions are eased. Active cost management
savings of $30.3 million were achieved, and from September 2020 the division was EBITDA positive (excluding government wage
subsidies) in every month of the financial year. The fourth quarter EBITDA was the highest quarterly result of the year despite being
impacted by regional lockdowns in Australia in May and June 2021.
The Group continued to participate in government hotel quarantine programs in Australian and New Zealand. Revenue from
quarantine business at the Group’s owned hotels Rydges Rotorua and QT Gold Coast comprised 6.2% of revenue for the year.
EBITDA of $33.4 million declined over the prior comparable period by $27.6 million or 45.2% and normalised profit before interest
and income tax expense was $6.0 million, a decrease of $26.6 million or 81.7% below the prior year.
At a brand level, Rydges, QT and Atura remain well positioned and are poised to benefit as pent-up demand underpins a market
recovery. In the latter months of the year, RevPAR across the Atura portfolio exceeded the comparable pre pandemic 2019 results.
Prior to the May and June lockdowns, QT Hotels were also approaching pre pandemic RevPAR levels, with peak weekly occupancy
of 80.2% achieved in April 2021. Rydges Hotels performed well relative to their respective market locations, however the pace of
recovery is impeded by the bulk of the portfolio being located in Sydney and Melbourne, the two Australian locations most impacted
by the pandemic.
Investment in customer experience technology has been a key priority. A new state of the art central reservations and distribution
platform is under development. Due for completion in the year ahead, the system is designed to enhance market share and speed
network growth. Several other technological innovations to enhance the guest digital experience are at an advanced stage of
development including a mobile app with digital check-in and digital guest menus.
During the year, the Group launched a pivotal new strategic growth brand ‘The Independent Collection by Event’. The new brand
recognises the opportunity to maximise the Group’s local market leading expertise across all hotel categories and meet the emerging
needs of independent hotel owners. The Independent Collection portfolio will grow to 13 hotels during the year ending 30 June
2022. Six existing hotels transitioned into the Independent Collection portfolio during the year and three hotels were added including
the Tank Stream Sydney, the Oval Hotel Adelaide and the Yarra Valley Lodge. Agreements were signed for a further four properties
to join the portfolio in the 2022 financial year including The Terrace Adelaide (July 2021), The Kennigo Brisbane (July 2021), Hotel
Motel Adelaide (October 2021) and The Chifley Adelaide (early 2022).
QT brand expansion continued with QT Auckland taking the total number of QT hotels to 10, with management agreements signed
for QT Newcastle (opening 2022) and QT Parramatta (opening 2024). Three new Rydges management agreements were signed for
Rydges Gold Coast Airport (October 2020), Rydges Formosa Resort (December 2020), Rydges Port Adelaide (opening 2023), whilst
the Atura brand continues to expand with the conversion of a 108-room Atura Hotel (formerly the Thorndon) completed (February
2021), and a management agreement executed for a new Atura Hotel to be developed in Oran Park Sydney (opening 2023).
16 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
The Group acquired a 100% interest in the Jucy Snooze budget accommodation business in April 2021. Jucy Snooze currently has
two locations, in Queenstown and Christchurch, with a new flagship property in Auckland due to open in the first half of the 2022
calendar year.
As part of the strategy to divest underperforming assets, The Reef Plaza Cairns (formerly Rydges Plaza) was sold and the Rydges on
Swanston management agreement was terminated in the second quarter of the financial year. Over the next year, divestment of
two hotels not located in key city locations, Rydges Bankstown and Rydges North Sydney, are planned. The priority upgrade
properties include Rydges Melbourne and QT Gold Coast. At this stage, Rydges Melbourne is planned to close for the 2022 calendar
year to complete this project. Both upgrade projects have identified underutilised real estate to unlock new revenue opportunities.
Thredbo Alpine Resort
The full year result for Thredbo reflects the continued success of the new business model generating a strong return from the 2020
snow season despite material COVID-19 capacity restrictions and less than favourable snow conditions. In addition, the 2020-21
summer mountain biking and hiking season resulted in record visitation and mountain biking revenue, despite continuing COVID-19
restrictions resulting in the cancellation of all larger summer events, with a positive EBITDA and PBIT delivered for the peak summer
period (December to April) for the first time.
A new strategic direction was developed that focussed on an improved customer experience to protect revenue and grow
profitability. The strong response by management in developing industry leading COVID-19 practices and defining a new operating
model enabled Thredbo to operate successfully throughout the year. Customer sentiment remained high with an improved NPS
score.
COVID-19 related government mandated restrictions resulted in a delayed start to the 2020 snow season. Furthermore, capacity
restrictions were imposed that permitted only up to 50% of pre-COVID capacity, and skier days for the year were down 38.7% on
the prior year. The new operating model implemented by the Group in response was essential, and the effective new product
strategies offset the impact of reduced visitation with a 66.2% improvement in yield.
Revenue from summer operations continued the growth trend with an increase in visitation of 23% compared to the 2018-19
summer, with the 2019-20 summer having been severely impacted by bushfires and COVID-19. The summer performance
underpinned a record setting second half result.
EBITDA for the full year was $29,775,000, 19.7% above the prior comparable full year, and the normalised profit before income tax
expense was $25,124,000, 19.9% above the prior comparable full year result. This was an incredible result in the context of the
COVID-19 capacity restrictions outlined above.
Strong progress continues to be made with Thredbo’s strategic growth plan. Merritts Gondola was completed ahead of the 2020
winter season, whilst planning is underway for a major upgrade of Merritts Mountain House. A new mountain biking skills park was
added during the year, taking total mountain biking trails to eight. A new trail, Sidewinder, will open for the 2021-22 summer and
will be Thredbo’s easiest beginner trail. A further four more trails in the Cruiser area are planned for the next two years, and a
proposed Alpine Coaster installation is expected to add a further year-round attraction. Major improvements to the snowmaking
pipeline were completed prior to the 2021 winter season, and preparatory work has commenced for the replacement of the two-
seater Snowgums chairlift with a new six-seater chairlift.
Property and Other Investments
The normalised profit before interest and income tax expense was $14,003,000, $7,694,000 or 120.4% above the prior year. The
result included a fair value increment of $6,950,000 compared to a $1,657,000 decrement in the prior year.
Rental revenue was below the prior year due to COVID-19 related rent relief provided to tenants and, in addition, the normalised
result includes a provision for rental income receivable that is not expected to be recovered from tenants impacted by COVID-19.
The Group’s property portfolio is independently valued on a three-year cycle and updated valuations were obtained at 30 June 2021.
The overall independent value of the Group’s property portfolio increased to $2,057.4 million, up from $2,027.7 million at 30 June
2020, notwithstanding $79.6 million in non-core property sales. Excluding the properties sold during the year ended 30 June 2021,
the overall portfolio value increased 4.2%. The non-core property sales were achieved at an average of 60% above previous
valuations. Overall, the Group is on track to achieve the goal of realising proceeds of $250 million in non-core asset sales within two
years.
17 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
Excluding Rydges Melbourne and Rydges Queenstown the portfolio valuations were up 7.8%. Rydges Melbourne is a priority asset
with a major upgrade programme in development and subject to cost assessments, planned to take 12 months to complete
commencing early 2022. The Rydges Queenstown accommodation wings were closed in February 2019 and work is underway to
determine options for seismic strengthening.
The Group has continued to make strong progress with the two major development projects at 525 George Street and 458-472
George Street, Sydney. A Stage One Development Application has been approved for the proposed 525 George Street, Sydney
development for a mixed use development of up to 43 storeys to include a podium with ground floor retail space on George Street
(810m2), a five screen cinema complex, and a tower including a new hotel with 335 rooms, conference centre, 109 residential
apartments and 165 car parking spaces. Subject to market conditions, construction is targeted to commence in the 2023/24 financial
year with completion in the 2026/27 financial year.
In November 2020 the City of Sydney approved the Development Application for the podium component of the proposed 458-472
George Street, Sydney development. This will include ground floor retail space (340m2) on George Street, an extension of the QT
Sydney hotel with 72 additional rooms and conference centre and QT rooftop bar. A second Development Application will be lodged
for a commercial officer tower above the podium with 33 levels and approximately 34,000m2 of commercial office space. Subject to
market conditions, construction is targeted to commence in the 2025/26 financial year. It is anticipated that a joint venture partner
will be identified to assist in funding and developing the commercial office tower component.
The Group expects the value of the 458-472 George Street and 525 George Street properties to grow as Development Applications
are approved for the proposed developments, with $37 million added to the 525 George Street independent valuation following the
approval of the Stage One Development Application.
Good progress has been made with the strategy announced in February 2021 to divest non-core property assets, realising $79.6
million of gross proceeds (before selling costs and tax). Gross proceeds of $49.3 million were settled during the year and $30.3
million is to settle before September 2021. The total gross proceeds exceeded most recent valuations by $29.8 million, a 60%
increase. The assets sold were the Forum Building in Brisbane (retail and commercial office), Double Bay (commercial and service
office), 201-203 Port Hacking Road Miranda (warehouse and light industrial), Rydges Plaza Cairns Hotel, Cairns City Cinema (cinema
operations ceased in 2019) and Mt Maunganui Cinemas (cinema operations ceased in 2020).
Further non–core properties have been identified and are being prepared for sale in FY22, with additional non-core properties being
contemplated for potential sale in FY23.
Unallocated revenues and expenses
The unallocated revenues and expenses, which include the Group’s corporate functions and various head office expenses, were
12.6% below the prior year. The favourable variance was driven by cost reduction measures, including measures taken in response
to COVID-19, voluntary CEO and executive salary reductions and Director fee reductions in response to COVID-19. No short-term
incentive awards were paid during the year and long-term incentives did not vest. The Group has also absorbed a material increase
in insurance premiums of approximately $2,013,000.
BUSINESS STRATEGIES AND PROSPECTS FOR FUTURE FINANCIAL YEARS
COVID-19 government mandated restrictions have had a material impact on the Group’s operating divisions. Further information
regarding the impact of COVID-19 on the Group in the year ended 30 June 2021 is set out above in the Operating and Financial
Review.
Safety and wellbeing remain the Group’s highest priority. Detailed COVID-19 safety plans and staff training programs have been
developed for each of the Group’s operating divisions. In addition, to ensure these plans are consistent with best practice in
Australia, advice was also sought and implemented from infectious disease experts.
The Group’s strategic plan remains unchanged but the timing will depend on the ongoing impact of COVID-19 in addition to other
industry, economic and political conditions, the potential impact of global events, the future financial performance and available
capital, the competitive environment, evolving customer needs and trends, and the availability of attractive opportunities.
Strategies to achieve the Group’s objectives will continue to evolve and change in response to these and other factors.
Further commentary regarding business strategies and prospects for future financial years is set out below.
18 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
MAXIMISING ASSETS – PROPERTY
The Group has a property portfolio including land and buildings, integral plant and equipment and long term leasehold land and
improvements with a fair value of $2.1 billion (see Note 3.3 to the financial statements). The Group will pursue the following
strategies in relation to the property portfolio:
•
•
investing in the development of priority operating assets that generate a reasonable return;
optimising the potential future development of the properties located at 458-472 George Street, Sydney and 525 George Street,
Sydney and identifying other potential future developments of the Group’s freehold properties;
divesting non-core properties to realise total proceeds before tax of $250 million within two years, with $79.6 million realised
to date;
•
• managing and maximising rental income associated with the Group’s investment properties;
•
•
divesting under-performing assets; and
subject to available capital, considering opportunities to acquire assets that generate positive earnings and compliment the
Group’s portfolio.
Industry developments and risk factors
The independently-determined fair value of the Group’s property portfolio may rise or fall according to a number of factors outside
of the Group’s control such as changes in applicable property market conditions, including as a result of COVID-19.
The Group’s property portfolio includes property in zones of earthquake risk in New Zealand. A catastrophic incident affecting a
Group property could have a material adverse impact on the Group’s earnings as a result of catastrophic damage and loss of future
profits.
ENTERTAINMENT
Whilst the Group has no control over the supply and general audience appeal of available films, providing consumers with a
demonstrably superior experience in the cinema to that which can be achieved in the home is a central strategic platform. To achieve
this, the Group will pursue the following strategies:
•
•
•
•
•
•
•
•
continuing to develop the ‘Cinemas of the Future’ model to deliver a greater return from assets;
investing in the best locations, and reviewing options for under-performing locations including potential divestment;
implementing new pricing strategies;
developing new food and beverage concepts;
growing and enhancing the quality and value of the group’s leading customer data position;
identifying other sources of entertainment income and growing alternative content;
leveraging technology to increase efficiency through automation;
applying an agile approach with continual financial and operations scenario planning to respond to changing COVID-19
government-mandated restrictions; and
implementing and enhancing COVID-19 practices to provide a safe environment for employees and customers.
•
Industry developments and risk factors
The Group believes that there are certain current issues pertaining to the industry, including in respect of COVID-19, that have the
capacity to impact the strategic plans and future direction of the cinema operations. The Group will continue to monitor
developments in relation to the following issues:
•
•
disruption to global release dates of major film titles as a result of COVID-19;
alternative film delivery methods and the rise in popularity of other forms of entertainment (including over-the-top (“OTT”)
internet content, subscription-based streaming services and video on demand (“VOD”));
further shortening of the release window of film to other formats such as OTT and VOD;
increase in unauthorised recording (piracy) of visual recordings for commercial sale and distribution via the internet;
increase in competition including in relation to pricing;
international media industry consolidation which may reduce the number of distributors of Hollywood film titles;
changes in operating expenses including employee expenses and energy costs; and
impact of weather on cinema attendance.
•
•
•
•
•
•
19 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
HOTELS AND RESORTS
The Group will work to leverage the advantage of being Australasian based in the short-term as the market pivots heavily toward
domestic demand drivers due to COVID-19 and the long term recognising the trend of international travellers seeking authentic local
experiences.
A continued focus on the expansion of a strong hotel portfolio covering all key market segments, with the lifestyle brands QT and
Atura, mid-market brand Rydges Hotels, budget brand Jucy Snooze and the multi segment Independent Collection by Event,
maintaining the flexibility for unique locally branded hotels to join the portfolio. To provide this, the Group will continue to pursue
the following strategies:
•
•
continual improvement of brands and customer experiences to improve customer sentiment;
investing in upgrades of key properties and redevelopment of existing properties after capital expenditure restraints imposed
in response to COVID-19 have been relaxed;
leveraging and monetising capabilities by adding new rooms to the Group’s portfolio through innovative commercial structures;
enhancing sales practices and product innovation to adapt and secure new and emerging market opportunities;
enhancing the Priority Guest Rewards loyalty program as a competitive advantage in Australia and New Zealand markets;
improving and innovating food and beverage offerings;
leveraging technology to increase customer engagement and operational efficiency;
applying an agile approach with continual financial and operations scenario planning to respond to changing COVID-19
government-mandated restrictions;
implementing and enhancing COVID-19 practices to provide a safe environment for employees and customers; and
developing talent locally and maintaining a strong culture of retention of key talent.
•
•
•
•
•
•
•
•
Industry developments and risk factors
The Group believes that there are certain current issues pertaining to the industry that have the capacity to impact the strategic
plans and future direction of the hotel operations. The Group will continue to monitor developments in relation to the following
issues:
•
•
•
•
•
disruption to corporate and international inbound travel as a result of COVID-19;
new hotel supply in key markets increasing competition for the Group’s hotels in those markets;
competition for the distribution of rooms from online travel agents;
growth and market penetration of alternative accommodation providers; and
staffing and skills shortages due to international border closures and a strong local job market.
•
•
•
THREDBO ALPINE RESORT
The key strategy for the Thredbo Alpine Resort is to grow by enhancing the on-mountain experience and increasing capacity (subject
to COVID-19), securing Thredbo Alpine Resort’s position as one of the premier Australian holiday destinations. This strategy includes:
•
continuing to ensure the popularity, high quality and ambience of the winter-time resort facility with continued upgrading of
resort infrastructure;
innovating with new experiences, products and associated pricing strategies to continue to be market leaders;
continuing to improve snowmaking capability to mitigate risk in poor snow seasons;
increasing the number and quality of events and year round attractions to increase visitation outside of the snow season, subject
to COVID-19 constraints;
expanding the mountain bike trail network to appeal to a broader range of riders;
introducing new year-round experiences such as the proposed Alpine Coaster;
ensuring that the environmental integrity of the Resort is maintained and, where possible, improved.
realising underutilised property and bed rights;
applying an agile approach with continual financial and operations scenario planning to respond to changing COVID-19
government-mandated restrictions;
implementing and enhancing COVID-19 practices to provide a safe environment for employees and customers; and
developing local snow sports instructor talent to compensate for a reduced talent pool and the restrictions of the internal
border closures.
•
•
•
•
•
•
•
20 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
Industry developments and risk factors
The Group believes that there are certain current issues pertaining to the industry that have the capacity to impact the strategic
plans and future direction of Thredbo’s operations. The Group will continue to monitor developments in relation to the following
issues:
• COVID-19 related capacity and travel constraints;
•
•
•
reliance on natural snowfall, which is partially mitigated by the Group’s snowmaking capability;
changes in operating expenses including employee expenses and energy costs; and
short and long-term climate-related physical, regulatory and transition risks. Further information regarding the Group’s
response to climate change is available in section 7.4 of the 2021 Corporate Governance Statement.
DIVIDENDS
To assist the Group’s liquidity during the COVID-19 recovery period, no dividend has been declared in respect of the year ended 30
June 2021. Future dividend payments will be subject to Board consideration and approval having regard to all relevant circumstances
including lender gearing requirements and the Group’s trading performance. Dependent upon more stabilised prevailing trading
conditions, the Board desires to resume dividend payments from the 2022 calendar year.
REMUNERATION REPORT
The Remuneration Report, which forms part of the Directors’ Report, is set out on pages 24 to 34 and has been audited as required
by section 308(3C) of the Corporations Act 2001.
EVENTS SUBSEQUENT TO REPORTING DATE
Lockdowns occurring within certain geographic areas of Australia
A number of the Group’s sites are currently closed or significantly impacted due to the COVID-19 lockdowns within certain
geographic locations within Australia and New Zealand. The duration of the lockdowns are dependent upon the various governments
relaxing the lockdown and travel restrictions. The general expectation is that the lockdowns will continue, or continue to reoccur,
until the COVID-19 vaccination rates of the general population meet or exceed the appropriate levels expected by the various
government authorities. It is expected that the relaxation of the restrictions could start to occur within the last quarter of calendar
2021.
Reopening of the German Cinema operations and German government support
The Group re-opened the German Cinema operations on 1 July 2021 following an eight-month closure period. The
German government has implemented a damage compensation program for affected businesses for the November and December
2020 lockdown period, and a subsidy program (Bridging Aid III) for the January to June 2021 period. The Group lodged applications
for the November and December 2020 damage compensation program and recognised €27.5 million within the results for the year
ended 30 June 2021. The proceeds were received in July and August 2021.
The Group expects to lodge applications for Bridging Aid III support payments in September 2021.
Sale of a number of group properties
A number of freehold assets that were considered non-core to the business operations of the Group were sold during the during
the year, with gross proceeds totalling $79.65 million. Further additional non-core properties have been identified for potential sale
and the Group has commenced a number of expression of interest campaigns for the sale of certain freehold assets. The Group is
on track to achieve $250 million of proceeds from non-core assets within two years.
Dividends
On 23 August 2021, the directors resolved that no final dividend be declared for the year ended 30 June 2021.
LIKELY DEVELOPMENTS
Likely developments in the operations of the Group are referred to in the Review of Operations by Division, set out within this report.
21 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
DIRECTORS’ INTERESTS
The relevant interest of each director of the Company in share capital of the Company, as notified by the directors to the ASX in
accordance with section 205G(1) of the Corporations Act 2001, at the date of this report is as follows:
Director
AG Rydge
PR Coates
VA Davies
DC Grant
JM Hastings
PM Mann
RG Newton
Ordinary shares held
directly
4,431,663
−
−
7,500
12,000
−
−
Ordinary shares held
by companies in which
a director has a
beneficial interest(a)
68,948,033
46,960
14,000
−
−
7,000
66,000
Performance shares
held directly
−
−
−
−
−
−
−
Performance rights
held directly
−
−
−
−
361,830
−
−
(a) Relevant interest under the Corporations Act 2001 differs from the disclosure required under Australian Accounting Standards as presented in the
Remuneration Report.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company’s constitution provides an indemnity to each person, including AG Rydge, PR Coates, VA Davies, DC Grant, JM Hastings,
PM Mann and RG Newton, who is or who has been a director or alternate director of the Company or of any related body corporate
of the Company. The indemnity also extends to such other officers or former officers, including executive officers or former executive
officers, of the Company and of any related body corporate of the Company as the directors of the Company determine.
In terms of the indemnity, the Company will indemnify the directors and other officers of the Company acting as such, to the full
extent permitted by law, against any liability to another person (other than the Company or a related body corporate) incurred in
acting as a director or officer of the Company, unless the liability arises out of conduct involving a lack of good faith. The indemnity
includes any liability for costs and expenses incurred by such person in defending any proceedings, whether civil or criminal, in which
judgement is given in that person’s favour, or in which the person is acquitted and in making an application in relation to any
proceedings in which the court grants relief to the person under the law.
The Company has provided directors’ and officers’ liability insurance policies that cover all the directors and officers of the Company
and its controlled entities. The terms of the policies prohibit disclosure of details of the amount of the insurance cover, its nature
and the premium paid.
OFFICERS WHO WERE PREVIOUSLY PARTNERS OF THE AUDIT FIRM
Mrs PM Mann was previously a partner of the current audit firm, KPMG, at a time when KPMG undertook an audit of the Group.
AUDITOR INDEPENDENCE
The lead auditor’s independence declaration is set out on page 35 and forms part of the Directors’ Report for the year ended 30
June 2021.
NON-AUDIT SERVICES PROVIDED BY KPMG
During the year, KPMG, the Group’s auditor, performed certain other services in addition to their statutory duties.
The Board has considered the non-audit services provided during the year by the auditor and in accordance with written advice
provided by resolution of the Audit and Risk Committee is satisfied that the provision of those non-audit services during the year by
the auditor is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 for
the following reasons:
•
•
all non-audit services were subject to the corporate governance procedures adopted by the Group and have been reviewed by
the Audit and Risk Committee to ensure they do not impact the integrity and objectivity of the auditor; and
the non-audit services provided do not undermine the general principles relating to auditor independence as set out in APES
110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in
a management or decision-making capacity for the Group, acting as an advocate for the Group or jointly sharing risks and
rewards.
22 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 has been included
in this Directors’ Report.
Details of the amounts paid to the auditor of the Group, KPMG, and its related practices for audit and non-audit services provided
during the year are set out in Note 7.3 to the financial statements.
ROUNDING OFF
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 as issued
by the Australian Securities and Investments Commission (“ASIC”). In accordance with that Instrument, amounts in the Directors’
Report and financial report have been rounded off to the nearest thousand dollars, unless otherwise stated.
Signed in accordance with a resolution of the directors:
AG Rydge
Director
JM Hastings
Director
Dated at Sydney this 23rd day of August 2021.
23 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
REMUNERATION REPORT – AUDITED
This report outlines the remuneration arrangements in place for the Group’s key management personnel (“KMP”) as defined in
AASB 124 Related Party Disclosures including non-executive directors, the CEO (who is also the Managing Director), and other senior
executives who have authority for planning, directing and controlling the activities of the Group. The KMP for the financial year are
set out on page 29.
Impact of COVID-19 on remuneration arrangements
COVID-19 has continued to have a material impact on the Group’s operating divisions. In response, adjustments were made to
director and executive remuneration from 1 April 2020 in response to the impact of COVID-19. These adjustments continued during
the year ended 30 June 2021 and included the following:
•
•
•
•
•
•
the Group’s CEO, Jane Hastings, voluntarily reduced her pay by $200,000 per annum;
the Chairman, Alan Rydge, agreed to waive his fee;
the Lead Independent Director, Peter Coates, agreed to a voluntary reduction of 50% and all other directors agreed to a
voluntary reduction of 20%;
senior executives agreed to voluntary reductions in their salaries of up to 12.5%;
a wage freeze (for non-award roles) was implemented; and
there were no cash payments under the Short Term Incentive (“STI”) plan in respect of the year ending 30 June 2020,
notwithstanding the achievement of certain individual key performance indicators by executives.
Whilst the temporary and voluntary remuneration adjustments outlined above concluded on 30 June 2021, the Chairman has
volunteered to reduce his fee by $150,000 to $185,000 with effect from 1 July 2021.
Remuneration philosophy
The Nomination and Remuneration Committee is responsible for making recommendations to the Board on remuneration policy
and packages applicable to the Board members and senior executives. The objective of the remuneration policy is to ensure the
remuneration package properly reflects the person’s duties and responsibilities, and that remuneration is competitive in attracting,
motivating and retaining people of the appropriate quality.
Remuneration levels are competitively set to attract appropriately qualified and experienced directors and executives. The
Nomination and Remuneration Committee obtains independent advice on the level of remuneration packages. The remuneration
packages of the CEO and other senior executives include at-risk components that are linked to the overall financial and operational
performance of the Group and based on the achievement of specific goals of the Group. Executives participate in the Group’s
Executive Performance Rights Plan. The long term benefits of the Executive Performance Rights Plan are conditional upon the Group
achieving certain performance criteria, details of which are outlined below.
Further details in relation to the Group’s share plans are provided in Note 6.1 to the financial statements.
Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive director remuneration is separate and
distinct from senior executive remuneration.
Non-executive director remuneration
Objective
The Group’s remuneration policy for non-executive directors aims to ensure that the Group can attract, retain and appropriately
remunerate suitably skilled, experienced and committed individuals to serve on the Board and its committees.
Structure
The Company’s constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be
determined from time to time by a general meeting. The latest determination was at the Annual General Meeting held on 22 October
2010 when shareholders approved a maximum aggregate remuneration of $1,500,000 per year. Non-executive directors do not
receive any performance related remuneration nor are they issued shares or performance rights.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned among
directors are reviewed annually. The Board considers the fees paid to non-executive directors of comparable companies when
undertaking the annual review process.
Each director receives a fee for being a director of the Company. A committee fee is also paid for being a member of the Audit and
Risk Committee and the Nomination and Remuneration Committee. The payment of the committee fee recognises the additional
time commitment required by directors who serve on those committees. Other Board committees may be established from time
to time to deal with issues associated with the conduct of the Group’s various activities, and directors serving on such committees
24 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
may receive an additional fee in recognition of this additional commitment. With effect from 1 July 2021, an additional fee is paid
to the Lead Independent Director in recognition of the additional responsibilities associated with that role.
As noted above, with effect from 1 April 2020, each director volunteered a reduction in directors’ fees for 15 months due to the
impact of COVID-19 on the Group. In addition, the Chairman has agreed a reduction in his fee of $150,000 to $185,000 with effect
from 1 July 2021. The Board approved non-executive director fees (excluding voluntary reductions) were as follows:
Chairman (including committee fee entitlements)
Other non-executive directors
Base fee entitlement
Lead Independent Director fee entitlement(a)
Audit and Risk Committee
Chairman – Audit and Risk Committee
Nomination and Remuneration Committee
Chairman – Nomination and Remuneration Committee
2022
$
2021
$
185,000
335,000
137,000
14,000
14,000
13,000
7,000
6,000
137,000
14,000
14,000
13,000
7,000
6,000
(a)
In June 2021, the Board approved an additional annual entitlement of $14,000 for the Lead Independent Director, PR Coates, with effect from 1 July 2020. The
additional fee entitlement reflects the additional responsibilities and contribution of the Lead Independent Director including serving on special purpose
committees as required from time to time.
The remuneration of non-executive directors for the year ended 30 June 2021 is detailed on page 30.
Directors’ fees cover all main Board activities. Non-executive directors are also entitled to be reimbursed for all reasonable business
related expenses, including travel, as may be incurred in the discharge of their duties.
CEO and other executive remuneration
Objective
The Group’s remuneration policy aims to reward the CEO and other executives with a level and mix of remuneration commensurate
with their position and responsibilities within the Group, and to:
•
reward executives for Group, applicable business unit and individual performance against targets set by reference to
appropriate benchmarks and key performance indicators (“KPIs”);
align the interests of executives with those of shareholders;
link reward with the strategic goals and performance of the Group; and
ensure total remuneration is competitive by market standards.
•
•
•
Structure
In determining the level and composition of executive remuneration, the Nomination and Remuneration Committee obtains
independent advice on the appropriateness of remuneration packages for senior executives, based on remuneration trends in the
market, from which recommendations are made to the Board.
It is the Group’s policy that employment contracts are entered into with the CEO and other senior executives. Details of these
employment contracts are provided on pages 28 and 29.
Remuneration consists of both fixed and variable remuneration components. The variable remuneration component includes a short
term incentive (“STI”) plan and a long term incentive (“LTI”) plan. The proportion of fixed and variable remuneration (potential STI
and LTI) is set and approved for each senior executive by the Board based on recommendations provided by the Nomination and
Remuneration Committee.
Fixed annual remuneration
Objective
Remuneration levels for executives are reviewed annually to ensure that they are appropriate for the responsibilities, qualifications
and experience of each executive and are competitive with the market.
The Nomination and Remuneration Committee establishes and issues an appropriate guideline for the purpose of the annual review
of fixed remuneration levels. The guideline is based on both current and forecast Consumer Price Index, remuneration trends on
the market and general market conditions. There are no guaranteed fixed remuneration increases in any executives’ contracts.
25 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
Structure
Executives have the option to receive their fixed annual remuneration in cash and a limited range of fringe benefits such as motor
vehicles and car parking. Fixed annual remuneration includes superannuation and all fringe benefits, including fringe benefits tax.
Variable remuneration – STI
Objective
The objective of the STI plan is to link the achievement of key operational targets with the remuneration received by the executives
charged with meeting those targets. The total potential STI available is set at a level to provide sufficient incentive to the executive
to achieve the operational targets and ensuring that the cost to the Group is reasonable in the circumstances.
Structure
Actual STI payments to each executive are determined based on the extent to which specific operating targets, set at the beginning
of the year, are met. The targets consist of a number of KPIs covering both financial and non-financial measures of performance.
Typically, KPIs and assessment criteria include predetermined growth in Group and divisional earnings over the prior year, and other
strategic and operational objectives.
A work, health and safety gateway applies to the STI plan and executives will only be eligible for a payment under the plan if the
requirements of the gateway have been satisfied. A financial gateway also applies to the STI plan, whereby the Group’s financial
position at the time of assessment must be such that, in the Board’s opinion, the delivery of STI awards is prudent and appropriate
based on the circumstances at that time.
The Group has predetermined benchmarks which must be met in order to trigger payments under the STI. The benchmarks were
chosen to directly align the executive’s STI to the KPIs of the Group and to its strategies and performance.
On an annual basis, an earnings performance rating for the Group and each division is assessed by the Nomination and Remuneration
Committee and approved by the Board. The individual performance of each executive is also assessed and rated and the ratings are
taken into account when determining the amount, if any, of the STI to be allocated to each executive.
The aggregate of annual STI payments available for executives across the Group is subject to review by the Nomination and
Remuneration Committee and approval by the Board. STI payments are delivered as a cash bonus.
For the CEO and other executive KMP, the general target bonus opportunity range is from 50% to 90% of fixed annual remuneration.
The target bonus range for the CEO and other executive KMP is detailed below for the year ended 30 June 2021:
Maximum STI calculated
on fixed annual
remuneration(a)
Group
earnings
Allocated between:
Divisional
earnings
Special
projects
CEO
JM Hastings(b)
Other executive KMP
GC Dean
MR Duff
90%
50%
60%
45%
25%
25%
–
–
–
15%
17%
32%
Other
KPIs
30%
8%
3%
(a) Fixed annual remuneration is comprised of base salary, superannuation and benefits provided through salary sacrificing arrangements.
(b) The targets set for the STI of the CEO relate to the Group’s performance, the management of current property developments and other business growth targets.
The Board considers the specific targets to be commercially sensitive and further details of these targets have not been disclosed.
Bonuses may be paid above these levels at the discretion of the Board, if it is assessed that an exceptional contribution has been
made by an executive. There is no separate profit-share plan.
Variable remuneration – LTI
Objective
The objectives of the LTI plan are to:
•
•
•
align executive incentives with shareholder interests;
balance the short term with the long term Group focus; and
retain high calibre executives by providing an attractive equity-based incentive that builds an ownership of the Group mindset.
26 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
Structure
Executives are awarded performance rights which will only vest on the achievement of certain performance hurdles and service
conditions. An offer is generally made under the Executive Performance Rights Plan to executives each financial year and is based
on individual performance as assessed by the annual appraisal process. If an executive does not sustain a consistent level of high
performance, they will not be nominated for Executive Performance Rights Plan participation. The Nomination and Remuneration
Committee reviews details of executives nominated for participation subject to final Board approval. In accordance with the ASX
Listing Rules, approval from shareholders is obtained before participation in the Executive Performance Rights Plan commences for
the CEO.
Only executives who are able to directly influence the long term success of the Group participate in the Executive Performance
Rights Plan.
Performance rights do not carry the right to vote or to receive dividends during the Performance Period.
The performance hurdles for the awards of performance rights to executives in the financial year ended 30 June 2021 are based on
EVENT Hospitality & Entertainment Limited’s earnings per share (“EPS”) growth and relative total shareholder return (“TSR”)
performance over the Performance Period of the three years to 30 June 2023, with EPS performance measured against the year
ended 30 June 2020 (being the base year).
The performance hurdles for the awards of performance rights to executives in the financial year ended 30 June 2021 are as follows:
EPS hurdle
The EPS hurdle requires that the Group’s EPS growth for the Performance Period must be greater than the target set by the Board.
The EPS hurdle was chosen as it provides evidence of the Group’s growth in earnings. The hurdle is as follows:
•
•
if annual compound EPS growth over the Performance Period is less than 4%, no performance rights will vest with the executive;
if annual compound EPS growth over the Performance Period is equal to or greater than 4% but less than 6%, the proportion of
performance rights vesting will be increased on a pro-rata basis between 50% and 100%; or
if annual compound EPS growth over the Performance Period is equal to or greater than 6%, all of the performance rights
awarded (and attaching to this hurdle) will vest with the executive.
•
TSR hurdle
The TSR hurdle requires that the Group’s relative TSR performance must be above the median of the Company’s comparator group
(“comparator group”). The comparator group is the S&P/ASX 200 (excluding trusts, infrastructure groups and mining companies).
TSR is defined as share price growth and dividends paid and reinvested on the ex-dividend date (adjusted for rights, bonus issues
and any capital reconstructions) measured from the beginning to the end of the Performance Period.
The TSR performance hurdle was chosen as it is widely recognised as one of the best indicators of shareholder value creation. The
comparator group for TSR purposes has been chosen as it represents the group with which the Group competes for shareholders’
capital. The hurdle is as follows:
•
if the Company’s TSR ranking relative to the comparator group over the Performance Period is less than the 51st percentile, no
performance rights will vest;
if the Company’s TSR ranking relative to the comparator group over the Performance Period is equal to or exceeds the 51st
percentile but is less than the 75th percentile, the proportion of performance rights vesting will be increased on a pro-rata basis
between 50% and 100%; or
if the Company’s TSR ranking relative to the comparator group over the Performance Period is equal to or greater than the 75th
percentile, all of the performance rights awarded will vest.
•
•
After the Board has assessed the extent to which the above performance hurdles and criteria have been achieved, executives will
be allocated ordinary shares equal to the number of vested performance rights held.
The Board has retained the discretion to vary the performance hurdles and criteria.
Recognition and Retention Incentive
Shareholders approved at the 2020 AGM a Recognition and Retention Incentive for the CEO with a face value totalling $1,550,000.
This award was an additional equity-based award designed to recognise the additional effort required from the CEO both during the
COVID-19 response period and during the recovery period, and the importance of retaining the CEO during this critical period. Sixty
per cent of the grant value vests following the release of the results for the year ended 30 June 2021, and the remainder will vest
after the release of the results for the year ended 30 June 2022. The performance rights to be issued in satisfaction of the vested
portion of the award will remain restricted until after the release of the results for the year ended 30 June 2023.
27 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
GC Dean and MR Duff were granted Retention and Recognition Incentives on similar terms to the CEO’s award with a face value of
$530,000 and $600,000, respectively. Incentives on similar terms have been made to other senior executives under the Recognition
and Retention Incentive plan.
Group performance
To provide further context on the Group’s performance and returns for shareholders, the following table outlines a five-year history
of key financial metrics:
2021
Restated
2020(b)
2019
2018
2017
Net (loss)/profit before individually
significant items and income tax ($)(a)
Dividends per share (cents)
Share price at year end ($)(c)
(76,938,000)
–
12.64
4,507,000
21
8.41
158,524,000
52
12.50
183,214,000
52
13.39
160,937,000
51
13.37
(a) Refer to page 9 in the Directors’ Report for a reconciliation to reported net profit for the year.
(b) The 2020 comparative information has been restated as a result of changes in accounting policy as outlined in note 1.5.
(c) The share price at 30 June 2016 was $14.53.
Employment contracts for the CEO and other executive KMP
A summary of the key terms of Ms Hastings’ employment contract is set out in the table below:
Contract term Ongoing and there is no fixed term.
Fixed annual
remuneration
Effective from 1 July 2021, a remuneration package to the value of $1,550,000 per annum, comprising base
salary, superannuation and, if applicable, any fringe benefits.(a)
Incentives (b)
Ms Hastings is eligible to participate in the Group’s incentive arrangements (including STI and LTI).
Effective from 1 July 2021, Ms Hastings is eligible to receive an annual STI bonus payment with a maximum
award of up to 110% of her fixed annual remuneration, subject to the achievement of performance criteria
determined by the Board.
Ms Hastings is also eligible to participate in the Group’s LTI. The current LTI is the Executive Performance Rights
Plan approved by shareholders at the 2013 Annual General Meeting. Subject to any required or appropriate
shareholder approval, Ms Hastings’ allocation of performance rights under the LTI will be determined based on
a face value of 100% of the fixed annual remuneration.
Termination
Either party may terminate the agreement at any time by giving six months’ notice.
The Group may at its discretion make a payment in lieu of all or part of the notice period based on Ms Hastings’
fixed annual remuneration at the time of the notice of termination.
Ms Hastings may terminate immediately if there is a fundamental change in her responsibilities or authority
without her consent. In that case, Ms Hastings is entitled to a payment equivalent to six months’ fixed
remuneration.
The Group may terminate the agreement immediately in circumstances of misconduct, or if Ms Hastings
breaches any material term of the agreement, in which case there is no payment in lieu of notice.
Restraint
The agreement contains non-solicitation and other restraints that apply for a restriction period of up to 12
months. Ms Hastings may receive a restraint payment for some or all of the restriction period, calculated based
on her fixed annual remuneration at the termination date.
(a) Due to the impact of COVID-19 on the Group, Ms Hastings voluntarily reduced her fixed remuneration by $200,000 per annum from 1 April 2020 until up
to 30 June 2021. The increase in fixed annual remuneration to $1,550,000 effective from 1 July 2021 represented a 3.3% increase and was the first
adjustment to Ms Hastings’ fixed annual remuneration since 1 July 2019.
(b) Ms Hastings was also granted a Recognition and Retention Incentive as disclosed above.
28 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
The CEO’s contract provides for an annual review of the CEO’s fixed annual remuneration and maximum incentive opportunities.
Employment contracts typically outline the components of remuneration paid to the CEO and other senior executives but do not
prescribe how remuneration levels are to be modified from year to year. Generally, remuneration levels are reviewed each year to
take into account Consumer Price Index changes, remuneration trends in the market, any change in the scope of the role performed
by the executive and any changes required to meet the principles of the remuneration policy.
Termination provisions in the employment contracts with other executive KMP are summarised in the table below:
Executive
GC Dean
MR Duff
Termination by
the executive
The notice
period is three
months.
Termination by the Group
Expiry date of
contract
The notice period is three months. The Group may make a
payment in lieu of notice, equal to the notice period.
Not applicable,
rolling contracts.
The Group retains the right to terminate the contract
immediately in circumstances of misconduct. There are no
other termination payments.
Payment of any LTI (or pro-rata thereof) is subject to the
rules in operation at the termination date and at the
discretion of the Board.
Use of remuneration consultants
No remuneration consultants were engaged during the year to provide remuneration recommendations as defined in section 9B of
the Corporations Act 2001.
Key management personnel
The KMP for the financial year are set out in the table below:
Name
Position
Period of responsibility
Non-executive directors
Alan Rydge
Peter Coates
Valerie Davies
David Grant
Patria Mann
Richard Newton
Executive director
Jane Hastings
Other executive KMP
Gregory Dean
Mathew Duff
Chairman and non-executive director
Independent non-executive director and
lead independent director
Independent non-executive director
Independent non-executive director
Independent non-executive director
Independent non-executive director
1 July 2020 to 30 June 2021
1 July 2020 to 30 June 2021
1 July 2020 to 30 June 2021
1 July 2020 to 30 June 2021
1 July 2020 to 30 June 2021
1 July 2020 to 30 June 2021
CEO and Managing Director
1 July 2020 to 30 June 2021
Director Finance and Accounting,
Company Secretary
Director Commercial
1 July 2020 to 30 June 2021
1 July 2020 to 30 June 2021
All executive KMP are employed by Event Hospitality & Entertainment Limited.
29 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
d
e
t
a
e
r
l
f
o
n
o
i
t
r
o
p
o
r
P
n
o
i
t
a
r
e
n
u
m
e
r
e
c
n
a
m
r
o
f
r
e
p
$
l
a
t
o
T
–
–
–
–
–
–
–
–
–
–
–
–
)
e
(
–
0
5
2
,
1
5
2
0
0
0
,
9
8
3
8
5
,
2
2
1
0
0
6
,
9
0
1
0
5
1
,
0
3
1
0
0
2
,
1
3
1
7
6
4
,
4
6
1
0
0
4
,
6
2
1
0
0
1
,
0
5
1
0
0
6
,
9
0
1
0
5
1
,
0
3
1
%
0
4
1
.
%
3
8
3
.
5
5
4
,
7
1
8
,
2
4
8
5
,
2
3
4
,
2
$
–
–
–
–
–
–
–
–
–
–
–
–
–
,
8
5
1
5
0
0
1
,
$
–
–
–
–
–
–
–
–
–
–
–
–
6
4
0
5
9
3
,
3
8
8
,
1
1
1
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
n
o
i
t
n
e
t
e
R
)
d
(
e
v
i
t
n
e
c
n
I
d
n
a
n
o
i
t
i
n
g
o
c
e
R
)
c
(
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
g
n
o
l
d
e
u
r
c
c
A
e
v
a
e
l
e
c
i
v
r
e
s
–
–
–
–
–
–
–
–
–
–
–
–
8
4
3
4
1
1
,
0
1
5
7
4
,
)
e
(
–
2
5
7
5
1
,
1
2
7
7
,
5
3
6
0
1
,
9
0
5
9
,
2
9
2
1
1
,
3
8
3
1
1
,
9
6
2
4
1
,
6
6
9
0
1
,
2
2
0
3
1
,
9
0
5
9
,
2
9
2
1
1
,
4
9
6
1
2
,
2
0
0
1
2
,
)
e
(
–
8
9
4
,
5
3
2
9
7
2
,
1
8
8
4
9
,
1
1
1
1
9
0
,
0
0
1
8
5
8
,
8
1
1
7
1
8
,
9
1
1
8
9
1
,
0
5
1
4
3
4
,
5
1
1
8
7
0
,
7
3
1
1
9
0
,
0
0
1
8
5
8
,
8
1
1
)
b
(
$
–
–
–
–
–
–
–
–
–
–
–
–
s
i
m
u
m
e
r
p
9
0
2
,
1
8
2
,
1
9
8
1
,
2
5
2
,
2
3
0
9
2
,
1
9
1
3
,
t
r
o
p
e
R
I
T
S
)
a
(
s
e
s
u
n
o
b
$
–
–
–
–
–
–
–
–
–
–
–
–
–
0
0
0
0
2
8
,
m
r
e
t
t
r
o
h
S
$
s
e
e
f
d
n
a
y
r
a
a
s
h
s
a
C
l
)
e
(
–
8
9
4
5
3
2
,
9
7
2
,
1
8
8
4
9
1
1
1
,
1
9
0
,
0
0
1
8
5
8
8
1
1
,
7
1
8
,
9
1
1
8
9
1
0
5
1
,
4
3
4
,
5
1
1
8
7
0
7
3
1
,
1
9
0
,
0
0
1
8
5
8
8
1
1
,
,
6
0
3
8
7
2
1
,
,
8
9
9
8
2
4
1
,
1
2
0
2
0
2
0
2
1
2
0
2
0
2
0
2
1
2
0
2
0
2
0
2
1
2
0
2
0
2
0
2
1
2
0
2
0
2
0
2
1
2
0
2
0
2
0
2
1
2
0
2
0
2
0
2
e
v
i
t
u
c
e
x
e
-
n
o
N
S
R
O
T
C
E
R
D
I
e
g
d
y
R
G
A
s
e
t
a
o
C
R
P
s
e
i
v
a
D
A
V
t
n
a
r
G
C
D
n
n
a
M
M
P
n
o
t
w
e
N
G
R
s
g
n
i
t
s
a
H
M
J
e
v
i
t
u
c
e
x
E
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
0
3
d
e
s
a
b
-
e
r
a
h
S
m
r
e
t
g
n
o
l
r
e
h
t
O
t
n
e
m
y
o
p
m
e
l
-
t
s
o
P
$
e
v
a
e
l
$
$
s
n
o
i
t
u
b
i
r
t
n
o
c
m
r
e
t
t
r
o
h
s
l
a
t
o
T
l
a
u
n
n
a
d
e
u
r
c
c
A
n
o
i
t
a
u
n
n
a
r
e
p
u
S
e
c
n
a
r
u
s
n
I
:
l
w
o
e
b
t
u
o
t
e
s
e
r
a
p
u
o
r
G
e
h
t
T
R
O
P
E
R
’
S
R
O
T
C
E
R
I
D
f
o
P
M
K
r
e
h
t
o
d
n
a
y
n
a
p
m
o
C
e
h
t
f
o
r
o
t
c
e
r
i
d
h
c
a
e
f
o
n
o
i
t
a
r
e
n
u
m
e
r
e
h
t
l
j
f
o
t
n
e
m
e
e
r
o
a
m
h
c
a
e
f
o
t
n
u
o
m
a
d
n
a
e
r
u
t
a
n
e
h
t
f
o
s
l
i
a
t
e
D
n
o
i
t
a
r
e
n
u
m
e
r
’
s
e
v
i
t
u
c
e
x
e
d
n
a
’
s
r
o
t
c
e
r
i
D
d
e
t
a
e
r
l
f
o
n
o
i
t
r
o
p
o
r
P
n
o
i
t
a
r
e
n
u
m
e
r
e
c
n
a
m
r
o
f
r
e
p
$
l
a
t
o
T
$
n
o
i
t
n
e
t
e
R
)
d
(
e
v
i
t
n
e
c
n
I
d
n
a
n
o
i
t
i
n
g
o
c
e
R
$
)
c
(
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
$
g
n
o
l
d
e
u
r
c
c
A
e
v
a
e
l
e
c
i
v
r
e
s
%
9
7
.
%
8
4
2
.
%
5
7
.
%
8
5
2
.
6
1
1
,
0
1
9
5
0
3
,
9
0
1
,
1
6
9
8
,
5
5
9
3
8
0
,
9
9
1
,
1
–
6
5
7
4
6
3
,
–
2
3
9
2
1
4
,
5
1
9
7
8
,
)
7
8
1
5
4
(
,
9
0
3
0
9
,
)
5
2
6
4
4
(
,
5
9
7
2
1
,
1
9
9
2
1
,
5
2
0
3
1
,
2
6
2
3
1
,
l
a
u
n
n
a
d
e
u
r
c
c
A
n
o
i
t
a
u
n
n
a
r
e
p
u
S
e
c
n
a
r
u
s
n
I
$
e
v
a
e
l
0
6
2
6
3
,
0
2
1
7
1
,
9
7
9
5
6
,
4
6
9
7
1
,
4
9
6
1
2
,
2
0
0
1
2
,
4
9
6
1
2
,
2
0
0
1
2
,
5
8
8
,
5
8
5
0
9
1
,
4
0
9
4
4
1
,
5
9
5
3
9
2
,
8
4
9
8
4
2
8
,
0
7
6
7
,
9
6
8
5
,
5
5
9
5
,
$
$
s
n
o
i
t
u
b
i
r
t
n
o
c
m
r
e
t
t
r
o
h
s
l
a
t
o
T
)
b
(
$
s
i
m
u
m
e
r
p
d
e
s
a
b
-
e
r
a
h
S
m
r
e
t
g
n
o
l
r
e
h
t
O
t
n
e
m
y
o
p
m
e
l
-
t
s
o
P
T
R
O
P
E
R
’
S
R
O
T
C
E
R
I
D
I
T
S
)
a
(
s
e
s
u
n
o
b
$
–
5
7
2
1
7
2
,
–
5
7
2
1
9
2
,
m
r
e
t
t
r
o
h
S
$
s
e
e
f
d
n
a
y
r
a
a
s
h
s
a
C
l
7
3
6
7
7
5
,
5
4
2
5
2
6
,
5
7
2
9
8
5
,
3
6
0
1
5
6
,
1
2
0
2
0
2
0
2
1
2
0
2
0
2
0
2
n
a
e
D
C
G
f
f
u
D
R
M
P
M
K
E
V
I
T
U
C
E
X
E
R
E
H
T
O
s
i
m
u
m
e
r
p
y
f
i
c
e
p
s
t
o
n
o
d
s
t
c
a
r
t
n
o
c
e
h
t
s
a
s
t
c
a
r
t
n
o
c
e
c
n
a
r
u
s
n
i
y
t
i
l
i
b
a
i
l
’
s
r
e
c
i
f
f
o
d
n
a
’
s
r
o
t
c
e
r
i
d
f
o
t
c
e
p
s
e
r
n
i
p
u
o
r
G
e
h
t
y
b
d
a
p
s
i
i
m
u
m
e
r
p
e
c
n
a
r
u
s
n
i
e
d
u
l
c
x
e
P
M
K
e
v
i
t
u
c
e
x
e
r
e
h
t
o
d
n
a
s
r
o
t
c
e
r
i
d
f
o
n
o
i
t
a
r
e
n
u
m
e
r
r
o
f
e
v
o
b
a
d
e
s
o
l
c
s
i
d
s
t
n
u
o
m
A
.
p
u
o
r
G
e
h
t
n
o
9
1
-
D
V
O
C
f
o
t
c
a
p
m
I
i
i
e
h
t
o
t
e
u
d
1
2
0
2
e
n
u
J
0
3
g
n
d
n
e
r
a
e
y
e
h
t
g
n
i
r
u
d
d
a
p
e
r
e
w
P
M
K
r
o
f
i
s
e
s
u
n
o
b
I
T
S
o
N
)
a
(
)
b
(
r
o
f
p
u
o
r
G
e
h
t
y
b
d
a
p
s
i
l
i
m
u
m
e
r
p
o
t
e
t
a
e
r
e
v
o
b
a
e
b
a
t
e
h
t
n
l
i
d
e
s
o
l
c
s
i
d
s
t
n
u
o
m
a
e
h
T
.
2
2
e
g
a
p
n
o
t
r
o
p
e
R
’
s
r
o
t
c
e
r
i
D
e
h
t
n
h
t
i
i
w
t
u
o
t
e
s
s
i
s
t
c
a
r
t
n
o
c
e
c
n
a
r
u
s
n
i
l
e
h
t
o
t
g
n
i
t
a
e
r
n
o
i
t
a
m
r
o
f
n
I
.
s
r
e
c
i
f
f
o
d
n
a
s
r
o
t
c
e
r
i
d
l
a
u
d
i
v
i
d
n
i
f
o
t
c
e
p
s
e
r
n
i
i
d
a
p
.
e
c
n
a
r
u
s
n
i
e
c
n
a
u
n
i
t
n
o
c
y
r
a
a
s
l
n
o
i
t
a
r
e
n
u
m
e
R
e
h
t
n
h
t
i
i
w
t
u
o
t
e
s
e
r
a
e
u
s
s
i
n
o
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
p
d
n
a
s
e
r
a
h
s
e
c
n
a
m
r
o
f
r
e
p
f
o
s
l
i
a
t
e
D
.
e
t
a
d
g
n
i
t
s
e
v
o
t
e
t
a
d
t
n
a
r
g
m
o
r
f
d
o
i
r
e
p
e
h
t
r
e
v
o
s
t
n
u
o
m
a
l
a
u
q
e
n
i
d
e
n
o
i
t
r
o
p
p
a
e
u
a
v
l
t
a
h
t
e
v
a
h
o
t
n
e
h
t
d
n
a
e
t
a
d
t
n
a
r
g
e
h
t
t
a
s
t
h
g
i
r
.
s
t
n
e
m
e
t
a
t
s
l
a
i
c
n
a
n
i
f
e
h
t
o
t
1
.
6
e
t
o
N
n
i
t
u
o
t
e
s
e
r
a
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
p
d
n
a
s
e
r
a
h
s
e
c
n
a
m
r
o
f
r
e
p
e
s
e
h
t
f
o
s
n
o
i
t
i
d
n
o
c
d
n
a
s
m
r
e
t
e
h
t
n
o
s
l
i
a
t
e
d
r
e
h
t
r
u
f
d
n
a
t
r
o
p
e
R
e
c
n
a
m
r
o
f
r
e
p
f
o
e
u
a
v
r
i
a
f
e
h
t
l
f
o
t
n
e
m
e
r
u
s
a
e
m
e
h
t
s
e
r
i
u
q
e
r
2
B
S
A
A
.
t
n
e
m
y
a
P
d
e
s
a
b
-
e
r
a
h
S
2
B
S
A
A
f
o
s
t
n
e
m
e
r
i
u
q
e
r
e
h
t
h
t
i
w
e
c
n
a
d
r
o
c
c
a
n
i
i
d
e
n
m
r
e
t
e
d
n
e
e
b
e
v
a
h
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
p
o
t
g
n
i
t
a
e
r
n
o
i
t
a
r
e
n
u
m
e
r
l
r
o
f
e
v
o
b
a
d
e
s
o
l
c
s
i
d
s
t
n
u
o
m
A
)
c
(
f
o
s
l
i
a
t
e
D
.
1
2
0
2
e
n
u
J
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
s
e
e
f
r
i
e
h
t
f
o
t
r
a
p
d
e
v
i
a
w
o
s
l
a
s
r
o
t
c
e
r
i
d
r
e
h
t
o
d
n
a
,
s
n
o
i
t
a
r
e
p
o
s
’
p
u
o
r
G
e
h
t
n
o
9
1
-
I
D
V
O
C
f
o
t
c
a
p
m
i
e
h
t
o
t
e
s
n
o
p
s
e
r
n
i
1
2
0
2
e
n
u
J
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
s
e
e
f
l
l
a
d
e
v
i
a
w
,
e
g
d
y
R
G
A
,
n
a
m
r
i
a
h
C
e
h
T
.
4
2
e
g
a
p
n
o
t
u
o
t
e
s
e
r
a
s
t
n
e
m
j
t
s
u
d
a
e
e
f
r
o
t
c
e
r
i
d
y
r
a
t
n
u
o
v
e
h
t
l
.
7
2
e
g
a
p
n
o
d
e
s
i
r
a
m
m
u
s
e
r
a
s
m
r
e
t
d
r
a
w
A
e
v
i
t
n
e
c
n
I
n
o
i
t
n
e
t
e
R
d
n
a
n
o
i
t
i
n
g
o
c
e
R
e
h
T
)
d
(
)
e
(
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
1
3
D I R E C T O R S ’ R E P O R T
STI bonuses included in remuneration
There were no awards made under the STI plan in respect of the year ended 30 June 2020, notwithstanding the achievement
of certain individual key performance indicators by executives.
Other transactions with key management personnel and their related parties
AG Rydge is a director of Carlton Investments Limited. Carlton Investments Limited rents office space from a controlled entity.
Rent is charged to Carlton Investments Limited at a market rate. Rent and office service charges received during the year were
$23,870 (2020: $21,675). The Company previously held ordinary shares in Carlton Investments Limited, and continues to hold
preference shares in Carlton Investments Limited. Dividends received during the year from preference shares held in Carlton
Investments Limited were $5,312 (2020: $5,312).
AG Rydge paid rent, levies and other costs to Group entities during the year amounting to $143,307 (2020: $117,287). Rent is
charged to AG Rydge at market rates.
Apart from the details disclosed in the Remuneration Report, no KMP has entered into a material contract with the Group since
the end of the previous year and there were no material contracts involving directors’ interests existing at the reporting date.
From time to time, KMP of the Group, or their related parties, may purchase goods or services from the Group. These purchases
are usually on the same terms and conditions as those granted to other Group employees. Where the purchases are on terms
and conditions more favourable than those granted to other Group employees, the resulting benefits form part of the total
remuneration outlined within the Remuneration Report.
Executive Performance Rights Plan − current LTI plan
Analysis of LTI performance rights granted as remuneration
Details of the vesting profile of performance rights granted as remuneration to the CEO and other executive KMP are shown
below:
Number
Grant date
CEO
JM Hastings
159,236(b)
18 Feb 2021
113,637
20 Feb 2020
88,957
82,737
21 Feb 2019
15 Feb 2018
Other executive KMP
GC Dean
MR Duff
36,356
25,945
22,665
25,855
37,062
26,448
22,665
25,855
18 Feb 2021
20 Feb 2020
21 Feb 2019
15 Feb 2018
18 Feb 2021
20 Feb 2020
21 Feb 2019
15 Feb 2018
Vested during
the year
Forfeited
during the
year
Year in which
the grant
vests
Performance
right – EPS
$
Performance
right – TSR
$
Fair value(a)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
30 Jun 2024
30 Jun 2023
30 Jun 2022
82,737
30 Jun 2021
–
–
–
30 Jun 2024
30 Jun 2023
30 Jun 2022
25,855
30 Jun 2021
–
–
–
30 Jun 2024
30 Jun 2023
30 Jun 2022
25,855
30 Jun 2021
10.00
11.07
11.21
11.82
10.00
11.07
11.21
11.82
10.00
11.07
11.21
11.82
6.99
5.15
5.11
6.80
6.99
5.15
5.11
6.80
6.99
5.15
5.11
6.80
(a)
The fair value of the performance rights calculated at grant date, estimated using a Binomial tree model for those rights that have EPS hurdles and a
Monte Carlo simulation model for those rights that have TSR hurdles.
(b) Granted pursuant to shareholder approval under Listing Rule 10.14 obtained at the 2020 AGM.
32 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
Analysis of movements in performance rights
The movement during the year, by value, of performance rights in the Company held by the CEO and other executive KMP is
detailed below:
CEO
JM Hastings
Other executive KMP
GC Dean
MR Duff
Granted during
the year(a)
$
Exercised during
the year
$
Performance
rights exercised
Number
Amount paid per
right exercised
$
1,352,710
308,844
314,842
–
–
–
–
–
–
–
–
–
(a)
The value of performance rights granted in the year is the fair value of the performance rights calculated at grant date, estimated using a Binomial tree
model for those rights that have EPS hurdles and a Monte Carlo simulation model for those rights that have TSR hurdles. The total value of the
performance rights granted is included in the table above. This amount is allocated to remuneration over the vesting period.
No performance rights have been granted since the end of the year.
Performance rights holdings and transactions
The movement during the year in the number of performance rights in EVENT Hospitality & Entertainment Limited held by the
CEO and other executive KMP is detailed below:
Held at
the beginning of
the year
Granted
Exercised
Forfeited
CEO
JM Hastings
Other executive KMP
GC Dean
MR Duff
2021
2020
2021
2020
2021
2020
285,331
201,997
159,236
113,637
74,465
69,058
74,968
69,058
36,356
25,945
37,062
26,448
–
–
–
–
–
–
(82,737)
(30,303)
(25,855)
(20,538)
(25,855)
(20,538)
Held at
the end of
the year
361,830
285,331
84,966
74,465
86,175
74,968
No performance rights have been granted since the end of the year. No performance rights are held by any related parties of
KMP.
33 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
D I R E C T O R S ’ R E P O R T
Equity holdings and transactions
The movement during the year in the number of ordinary shares of EVENT Hospitality & Entertainment Limited held, directly,
indirectly or beneficially, by each KMP, including their related parties, is as follows:
Held at
the beginning of
the year
Purchases
Received on
release of
performance
shares or
rights
Sales
Other
Directors
AG Rydge (Chairman)
PR Coates
VA Davies
DC Grant
PM Mann
RG Newton
JM Hastings
(CEO)
Other KMP
GC Dean
MR Duff
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
73,396,103
73,396,103
46,960
46,960
14,000
14,000
7,500
7,500
7,142
7,142
66,840
66,840
12,000
6,000
158,222
158,222
84,899
62,410
–
–
–
–
–
–
–
–
–
–
–
–
–
6,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
22,489
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Held at
the end of
the year
73,396,103
73,396,103
46,960
46,960
14,000
14,000
7,500
7,500
7,142
7,142
66,840
66,840
12,000
12,000
158,222
158,222
84,899
84,899
Other than the arrangements disclosed above, no shares were granted to KMP as compensation in the year ended 30 June 2021.
Performance rights were granted to certain KMP as disclosed on page 32.
End of Directors’ Report: Remuneration Report – Audited
34 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
S T A T E M E N T O F F I N A N C I A L P O S I T I O N
A S A T 3 0 J U N E 2 0 2 1
2021
$’000
Restated*
2020
$’000
Note
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Current tax receivables
Inventories
Prepayments and other current assets
Assets held for sale
Total current assets
Non-current assets
Trade and other receivables
Other financial assets
Other investments
Investments accounted for using the equity method
Property, plant and equipment
Right-of-use assets
Investment properties
Goodwill and other intangible assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Loans and borrowings
Current tax liabilities
Provisions
Deferred revenue
Lease liabilities
Other current liabilities
Total current liabilities
Non-current liabilities
Loans and borrowings
Deferred tax liabilities
Provisions
Deferred revenue
Lease liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Share capital
Reserves
Retained earnings
Total equity
4.4
3.1
3.2
3.5
3.1
4.5
5.3
3.3
3.9
3.4
3.6
2.4
3.7
4.4
3.8
3.9
3.10
4.4
2.4
3.8
3.9
3.10
4.1
4.3
120,978
98,800
6,074
16,360
8,692
17,973
268,877
672
1,086
78
13,945
1,249,793
908,541
64,500
101,345
39,276
20,467
2,399,703
2,668,580
130,278
44,980
–
22,131
120,159
129,869
2,504
449,921
431,210
–
19,958
8,266
881,873
4,816
1,346,123
1,796,044
872,536
219,126
70,242
583,168
872,536
76,594
56,023
3,944
21,143
8,768
–
166,472
543
1,086
78
18,299
1,335,397
848,909
74,550
99,146
63,110
24,281
2,465,399
2,631,871
109,493
489,121
1,072
18,969
100,447
134,610
4,429
858,141
1,804
9,094
19,082
12,712
802,453
5,149
850,294
1,708,435
923,436
219,126
73,106
631,204
923,436
* The 2020 comparative information has been restated as a result of changes in accounting policy as outlined in note 1.5.
The Statement of Financial Position is to be read in conjunction with the accompanying notes.
36 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
I N C O M E S T A T E M E N T
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
Revenue and other income
Revenue from sale of goods and rendering of services
Other revenue and income
Expenses
Employee expenses
Depreciation, amortisation and impairments
Film hire and other film expenses
Occupancy expenses
Purchases and other direct expenses
Other operating expenses
Finance costs
Advertising, commissions and marketing expenses
Equity accounted profit/(loss)
Share of net profit/(loss) of equity accounted associates and joint ventures
Loss before tax
Income tax benefit
Loss for the year
Earnings per share
Basic earnings per share
Diluted earnings per share
2021
$’000
Restated*
2020
$’000
505,841
186,633
956,991
73,930
692,474
1,030,921
(234,776)
(196,547)
(55,763)
(89,108)
(57,801)
(65,174)
(41,409)
(15,614)
(310,405)
(259,797)
(167,685)
(133,258)
(88,279)
(76,880)
(32,882)
(29,430)
(756,192)
(1,098,616)
690
(747)
(63,028)
14,992
(48,036)
(68,442)
11,455
(56,987)
Restated*
2020
Cents
2021
Cents
(29.8)
(35.4)
(29.8)
(35.4)
Note
2.1
2.1
5.3
2.4
2.5
2.5
* The 2020 comparative information has been restated as a result of changes in accounting policy as outlined in note 1.5.
The Income Statement is to be read in conjunction with the accompanying notes.
37 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
S T A T E M E N T O F C O M P R E H E N S I V E I N C O M E
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
Loss for the year
Other comprehensive (expense)/income
Items that may be reclassified to profit or loss
Foreign currency translation differences for foreign operations – net of tax
Net change in fair value of cash flow hedging instruments – net of tax
Other comprehensive (expense)/income for the year – net of tax
Total comprehensive expense for the year
2021
$’000
Restated*
2020
$’000
(48,036)
(56,987)
(4,350)
−
(4,350)
883
11
894
(52,386)
(56,093)
* The 2020 comparative information has been restated as a result of changes in accounting policy as outlined in note 1.5.
The Statement of Comprehensive Income is to be read in conjunction with the accompanying notes.
38 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
0
0
0
’
$
y
t
i
u
q
e
l
a
t
o
T
0
0
0
’
$
i
s
g
n
n
r
a
e
d
e
n
a
t
e
R
i
0
0
0
’
$
s
e
v
r
e
s
e
R
0
0
0
’
$
l
a
t
i
p
a
c
e
r
a
h
S
Y
T
I
U
Q
E
N
I
S
E
G
N
A
H
C
F
O
T
N
E
M
E
T
A
T
S
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
,
6
3
4
3
2
9
,
4
0
2
1
3
6
6
0
1
3
7
,
,
6
2
1
9
1
2
)
6
3
0
,
8
4
(
)
6
3
0
,
8
4
(
−
−
)
0
5
3
4
(
,
)
0
5
3
4
(
,
)
6
8
3
,
2
5
(
6
8
4
,
1
)
0
0
9
,
0
5
(
,
6
3
5
2
7
8
)
8
5
0
,
0
6
(
2
4
1
,
5
2
1
,
1
4
8
0
,
5
6
0
,
1
−
−
−
)
6
3
0
,
8
4
(
−
)
6
3
0
,
8
4
(
,
8
6
1
3
8
5
,
1
7
0
2
3
8
)
8
5
0
,
0
6
(
,
3
1
0
2
7
7
)
7
8
9
,
6
5
(
)
7
8
9
,
6
5
(
1
1
3
8
8
4
9
8
−
−
−
)
3
9
0
,
6
5
(
)
7
8
9
,
6
5
(
)
3
3
7
1
(
,
)
2
2
8
,
3
8
(
)
5
5
5
,
5
8
(
,
6
3
4
3
2
9
−
)
2
2
8
,
3
8
(
)
2
2
8
,
3
8
(
,
4
0
2
1
3
6
−
)
0
5
3
4
(
,
)
0
5
3
4
(
,
)
0
5
3
4
(
,
6
8
4
,
1
)
4
6
8
2
(
,
2
4
2
0
7
,
−
5
4
9
3
7
,
5
4
9
3
7
,
−
1
1
3
8
8
4
9
8
4
9
8
−
)
3
3
7
1
(
,
)
3
3
7
1
(
,
6
0
1
3
7
,
−
−
−
−
−
−
−
,
6
2
1
9
1
2
−
,
6
2
1
9
1
2
,
6
2
1
9
1
2
−
−
−
−
−
−
−
−
,
6
2
1
9
1
2
.
5
.
1
e
t
o
n
n
i
d
e
n
i
l
t
u
o
s
a
y
c
i
l
o
p
g
n
i
t
n
u
o
c
c
a
n
i
s
e
g
n
a
h
c
f
o
t
l
u
s
e
r
a
s
a
d
e
t
a
t
s
e
r
n
e
e
b
s
a
h
n
o
i
t
a
m
r
o
f
n
i
e
v
i
t
a
r
a
p
m
o
c
0
2
0
2
e
h
T
*
.
s
e
t
o
n
g
n
i
y
n
a
p
m
o
c
c
a
e
h
t
h
t
i
w
n
o
i
t
c
n
u
n
o
c
n
j
i
d
a
e
r
e
b
o
t
s
i
y
t
i
u
q
E
n
i
s
e
g
n
a
h
C
f
o
t
n
e
m
e
t
a
t
S
e
h
T
*
x
a
t
f
o
t
e
n
–
s
n
o
i
t
a
r
e
p
o
n
g
e
r
o
f
i
r
o
f
s
e
c
n
e
r
e
f
f
i
d
n
o
i
t
a
l
s
n
a
r
t
y
c
n
e
r
r
u
c
n
g
e
r
o
F
i
x
a
t
f
o
t
e
n
–
s
t
n
e
m
u
r
t
s
n
i
i
g
n
g
d
e
h
w
o
l
f
h
s
a
c
f
o
e
u
a
v
l
r
i
a
f
n
i
e
g
n
a
h
c
t
e
N
y
t
i
u
q
e
n
i
y
l
t
c
e
r
i
d
d
e
s
i
n
g
o
c
e
r
e
m
o
c
n
i
/
)
e
s
n
e
p
x
e
(
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
l
a
t
o
T
x
a
t
f
o
t
e
n
–
e
s
n
e
p
x
e
s
t
n
e
m
y
a
p
d
e
s
a
b
-
e
r
a
h
s
e
e
y
o
p
m
E
l
e
m
o
c
n
i
/
)
e
s
n
e
p
x
e
(
e
v
i
s
n
e
h
e
r
p
m
o
c
l
a
t
o
T
*
d
e
t
a
t
s
e
r
–
0
2
0
2
e
n
u
J
0
3
t
a
e
c
n
a
a
B
l
s
r
e
n
w
o
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
t
l
a
t
o
T
i
d
a
p
s
d
n
e
d
i
v
i
D
9
1
0
2
y
l
u
J
1
t
a
e
c
n
a
a
b
d
e
t
a
t
s
e
R
l
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
*
r
a
e
y
e
h
t
r
o
f
s
s
o
L
x
a
t
f
o
t
e
n
–
s
n
o
i
t
a
r
e
p
o
n
g
e
r
o
f
i
r
o
f
s
e
c
n
e
r
e
f
f
i
d
n
o
i
t
a
l
s
n
a
r
t
y
c
n
e
r
r
u
c
n
g
e
r
o
F
i
x
a
t
f
o
t
e
n
–
s
t
n
e
m
u
r
t
s
n
i
i
g
n
g
d
e
h
w
o
l
f
h
s
a
c
f
o
e
u
a
v
l
r
i
a
f
n
i
e
g
n
a
h
c
t
e
N
y
t
i
u
q
e
n
i
y
l
t
c
e
r
i
d
d
e
s
i
n
g
o
c
e
r
e
m
o
c
n
i
/
)
e
s
n
e
p
x
e
(
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
l
a
t
o
T
x
a
t
f
o
t
e
n
–
e
s
n
e
p
x
e
s
t
n
e
m
y
a
p
d
e
s
a
b
-
e
r
a
h
s
e
e
y
o
p
m
E
l
e
m
o
c
n
i
/
)
e
s
n
e
p
x
e
(
e
v
i
s
n
e
h
e
r
p
m
o
c
l
a
t
o
T
*
d
e
t
a
t
s
e
r
-
0
2
0
2
y
l
u
J
1
t
a
e
c
n
a
a
B
l
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
r
a
e
y
e
h
t
r
o
f
s
s
o
L
s
r
e
n
w
o
h
t
i
w
s
n
o
i
t
c
a
s
n
a
r
t
l
a
t
o
T
1
2
0
2
e
n
u
J
0
3
t
a
e
c
n
a
a
B
l
*
d
e
t
a
t
s
e
r
–
9
1
0
2
y
l
u
J
1
t
a
e
c
n
a
a
B
l
x
a
t
f
o
t
e
n
–
6
1
B
S
A
A
f
o
n
o
i
t
a
c
i
l
p
p
a
l
a
i
t
i
n
i
n
o
t
n
e
m
t
s
u
d
A
j
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
9
3
S T A T E M E N T O F C A S H F L O W S
F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
Cash flows from operating activities
Cash receipts in the course of operations
Cash payments in the course of operations
Cash provided by operations
Dividends from joint ventures
Other revenue
Dividends received
Interest received
Finance costs paid
Income tax refunds
Income tax paid
Net cash provided by operating activities
7.2
Cash flows from investing activities
Payments for property, plant and equipment and redevelopment of properties
Finance costs paid in relation to qualifying assets
Purchase of management rights, software and other intangible assets
Payments for interest in joint venture
Payment for business acquired
Decrease in loans from other entities
Proceeds from disposal of property, plant and equipment
Net cash from/(used) by investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayments of borrowings
Transaction costs related to borrowings
Payments of lease liabilities
Dividends paid
Net cash used by financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effect of exchange rate fluctuations on cash held
Cash and cash equivalents at the end of the year
4.2
Note
2021
$’000
Restated*
2020
$’000
581,166
(574,911)
1,094,162
(946,978)
6,255
303
154,601
5
215
(38,776)
26,925
(1,391)
148,137
(25,543)
(3,661)
(1,350)
(143)
(4,359)
(4)
49,475
14,415
66,373
(77,873)
(3,081)
(102,725)
–
(117,306)
45,246
76,594
(862)
120,978
147,184
858
87,175
5
369
(32,770)
–
(26,454)
176,367
(121,680)
(3,149)
(7,405)
(6,104)
–
(495)
14,011
(124,822)
181,803
(68,000)
–
(99,332)
(83,822)
(69,351)
(17,806)
93,761
639
76,594
* The 2020 comparative information has been restated as a result of changes in accounting policy as outlined in note 1.5.
The Statement of Cash Flows is to be read in conjunction with the accompanying notes.
40 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
This section explains the basis of preparation for the Group’s financial statements, including information regarding
the impact of the adoption of new accounting standards.
1.1 – REPORTING ENTITY
EVENT Hospitality & Entertainment Limited (“Company”) is a company domiciled in Australia. The consolidated financial report of
the Company as at and for the year ended 30 June 2021 comprises the Company and its subsidiaries (collectively referred to as the
“Group”) and the Group’s interest in associates, joint ventures and joint operations.
EVENT Hospitality & Entertainment Limited is a for-profit company incorporated in Australia and limited by shares. The shares are
publicly traded on the ASX. The nature of the operations and principal activities of the Group are described in Note 2.2.
The financial report was authorised for issue by the Board of Directors of EVENT Hospitality & Entertainment Limited on 23 August
2021.
1.2 – BASIS OF PREPARATION
Statement of compliance
The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting
Standards (“AASBs”) (including Australian Accounting Interpretations) adopted by the Australian Accounting Standards Board and
the Corporations Act 2001. The financial report also complies with International Financial Reporting Standards and interpretations
adopted by the International Accounting Standards Board.
Basis of measurement
The financial report is prepared on the historical cost basis except for the following material items in the Statement of Financial
Position which are measured at fair value: derivative financial instruments, investments designated as at FVOCI, liabilities for cash-
settled share-based payments and investment properties. Assets held for sale are stated at the lower of carrying amount, and fair
value less costs to sell.
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 and in
accordance with the Instrument, amounts in the financial report and Directors’ Report have been rounded off to the nearest
thousand dollars, unless otherwise stated.
Use of estimates and judgements
The preparation of a financial report in conformity with AASBs requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and reported amounts of assets, 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.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised and in any future periods if affected. Judgements made by management in the application
of AASBs that have a significant effect on the financial report are discussed in Notes 3.3 (Property, plant and equipment) and 3.6
(Goodwill and other intangible assets).
Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-
financial assets and liabilities. When measuring the fair value of an asset or a liability, the Group uses market observable data as far
as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:
•
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
•
41 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.2 – BASIS OF PREPARATION (continued)
If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy,
then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input
that is significant to the entire measurement. The Group recognises transfers between levels of the fair value hierarchy at the end
of the reporting period during which the change has occurred. Further information about the assumptions made in measuring fair
values is included in Notes 3.3 (Property, plant and equipment), 3.4 (Investment properties), 3.5 (Assets held for sale) and 4.5
(Financial risk management).
Global coronavirus pandemic (“COVID-19”)
In March 2020 the World Health Organisation declared a global pandemic in relation to COVID-19. Within the geographic locations
where the Group has operations, governments responded to COVID-19 by introducing a number of COVID-19 measures, including
restrictions on business activity, societal interaction and travel. The effects of these measures on the Group has been significant
and, as a result, COVID-19 has resulted in impacts to key estimates and judgements used in these financial statements, including:
•
Impairment (see Note 2.3, Note 3.3 and Note 3.6);
• Provision for expected credit losses (see Note 3.1);
• Revaluations of investment properties (see Note 3.4); and
• Valuations of property plant and equipment (see Note 3.3).
government-mandated temporary closure of certain cinemas within in Australia, New Zealand and Germany;
Going concern basis of accounting
COVID-19 continues to have a material impact on the Group’s operational divisions, including:
•
• Disruption to the film release schedule;
• Reduction in hotel visitation due to international and domestic travel restrictions and lock-downs;
•
Implementation of social distancing, the impact of lockdowns in key feeder markets and other visitation impacts for the Thredbo
resort; and
• Reduction in rental income as a result of rental stress by tenants and relief provided in accordance with the Mandatory Code of
Conduct.
The Group has incurred significant and material reductions in revenue and to maintain an appropriate level of current and future
liquidity has implemented certain initiatives to ensure the viability of the Group for the current and longer term. The actions have
included:
•
Implementation of operational and corporate cost saving initiatives to ensure that the impact of COVID-19 on earnings was
appropriately minimised and managed. The cost saving initiatives included, but were not limited to, a stand down or furlough
of employees across the Group, voluntary salary reductions and freeze arrangements and negotiated reductions or deferral of
supplier and leasehold payments.
Participation in government support initiatives, including JobKeeper in Australia, the Wage Subsidy in New Zealand and the
Kurzarbeitergeld and Damage Support program in Germany.
Suspension of dividend payments for the year ended 30 June 2021. Future dividend payments will be subject to Board
consideration and approval having regard to all relevant circumstances including lender gearing requirements and the Group’s
trading performance.
•
•
In addition, the Group has reported a net current asset deficiency of $181.0 million. This deficiency is predominately a consequence
of the recognition of current lease liabilities (under AASB 16 Leases) totalling $129.9 million. Current lease and other liabilities are
expected to be supported by future operating cash flows and available liquidity from undrawn debt facilities of $217.0 million at 30
June 2021.
From a financial and liquidity perspective, and in the context of the continuing and challenging environment highlighted above,
COVID-19 budget modelling based on conservative recovery scenarios was undertaken across all of the Group’s businesses. The
budget modelling included a number of anticipated outcomes based upon current known circumstances and past COVID-19 business
performance. The range of scenarios included a number of variants including lockdown and deferral of recovery overlay
contingencies.
42 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.2 – BASIS OF PREPARATION (continued)
The budget modelling, which is based upon currently available information, assumes that there are no future material or significant
government mandated mass closure of operations beyond that which has occurred or currently occurring at the date of this report.
The Group’s budget modelling included a limited number of asset sales and further German government support initiatives.
Whilst there continues to be uncertainty regarding the future COVID-19 impacts, the budget modelling was adopted by the Group
as the current and most likely scenario. COVID-19 budget modelling is subject to certain risks and uncertainties which may cause
results to differ materially from those expected including, but not limited to, the following:
•
the duration of the impacts of COVID-19 and related government restrictions and social distancing requirements and the level
of customer demand following the relaxation of such requirements;
the availability, in terms of both quantity and audience appeal, of the film line-up, as well as other industry dynamics such as
the maintenance of a suitable and viable exhibition window;
the effects of adverse economic conditions caused by COVID-19;
the effects on occupancy and room rates caused by COVID-19 and the effects on occupancy and room rates of the relative
industry supply of available rooms at comparable hotels in the market once hotels and resorts fully reopened;
the effects of weather, particularly for Thredbo with winter conditions and the availability of snow; and
the ability of partners (both from a supply and operational perspective) to continue to operate for the current foreseeable
future.
•
•
•
•
•
The Group considers that, whilst COVID-19 will continue to create uncertainty for the short-term prospects for its operating
businesses, the current outlook provides sufficient liquidity for the foreseeable future.
In relation to the Group’s debt arrangements, the Group has received covenant waivers for the 30 June 2021 testing period and an
amended testing regime has been implemented for the 31 December 2021 testing period. The Group anticipates it will be able to
comply with covenant requirements at future testing dates on and beyond 31 December 2021. On this basis, the financial report has
been prepared on a going concern basis.
43 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.3 – FOREIGN CURRENCY
Functional and presentation currency
All amounts are expressed in Australian dollars, which is the Group’s presentation currency. Items included in the financial
statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the
entity operates (“functional currency”). The functional currency of the Company is Australian dollars.
Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies at the year end date are translated to Australian dollars at the foreign exchange
rate ruling at that date. Foreign exchange differences arising on translation are recognised in profit or loss, except for differences
arising on retranslation of a financial liability designated as a hedge of the net investment in a foreign operation that is effective,
which are recognised in other comprehensive income. Non-monetary assets and liabilities that are measured in terms of historical
cost in a foreign currency are translated using the exchange rate at the dates of the transactions. Non-monetary assets and liabilities
denominated in foreign currencies that are stated at fair value are translated to Australian dollars at foreign exchange rates ruling
at the dates the fair value was determined.
Financial statements of foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to
Australian dollars at foreign exchange rates ruling at the reporting date. The income and expenses of foreign operations are
translated to Australian dollars at rates approximating the foreign exchange rates ruling at the dates of the transactions. Foreign
exchange differences arising on retranslation are recognised in other comprehensive income, and presented in the foreign currency
translation reserve in equity.
When a foreign operation is disposed of in its entirety or partially such that control, significant influence or joint control is lost, the
cumulative amount in the foreign currency translation reserve related to that foreign operation is reclassified to profit or loss as part
of the gain or loss on disposal. If the Group disposes of part of its interest in a subsidiary but retains control, then the relevant
proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of an
associate or joint venture whilst retaining significant influence or joint control, the relevant proportion of the cumulative amount is
reclassified to profit or loss.
Net investment in foreign operations
Exchange differences arising from the translation of the net investment in foreign operations, and the effective portion of related
hedges, are taken to the foreign currency translation reserve. They are released to profit or loss as an adjustment to profit or loss
on disposal. Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the
settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a
foreign operation and are recognised directly in other comprehensive income and presented in the foreign currency translation
reserve in equity.
44 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.4 – NEW AND AMENDED ACCOUNTING STANDARDS ADOPTED BY THE GROUP
The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards
Board (the AASB) that are relevant to its operations and were effective for the year ended 30 June 2021. New and revised Standards,
amendments thereof, and Interpretations effective for the current year that are relevant to the Group are:
AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business
This Standard amends AASB 3 Business Combinations. The Group has adopted the amendments for the first time in the current
year. The amendments clarify that while businesses usually have outputs, outputs are not required for an integrated set of activities
and assets to qualify as a business. To be considered a business an acquired set of activities and assets must include, at a minimum,
an input and a substantive process that together significantly contribute to the ability to create outputs.
The amendments remove the assessment of whether market participants are capable of replacing any missing inputs or processes
and continuing to produce outputs. The amendments also introduce additional guidance that helps to determine whether a
substantive process has been acquired.
The amendments introduce an optional concentration test that permits a simplified assessment of whether an acquired set of
activities and assets is not a business. Under the optional concentration test, the acquired set of activities and assets is not a business
if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar assets.
The amendments are applied prospectively to all business combinations and asset acquisitions for which the acquisition date is on
or after 1 January 2020.
AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material
This Standard amends AASB 101 Presentation of Financial Statements and AASB 108 Accounting Policies, Changes in Accounting
Estimates and Errors, and makes consequential amendments to several other pronouncements and publications. The Group has
adopted these amendments for the first time in the current year. The amendments make the definition of material in AASB 101
easier to understand and are not intended to alter the underlying concept of materiality in Australian Accounting Standards. The
concept of 'obscuring' material information with immaterial information has been included as part of the new definition.
The threshold for materiality influencing users has been changed from 'could influence' to 'could reasonably be expected to
influence'. The definition of material in AASB 108 has been replaced by a reference to the definition of material in AASB 101. In
addition, the Standard also amends other Australian Accounting Standards and the Conceptual Framework that contain a definition
of 'material' or refer to the term 'material' to ensure consistency.
AASB 2019-1 Amendments to Australian Accounting Standards – References to Conceptual Framework
The Group has adopted the amendments included in AASB 2019-1 for the first time in the current year. The amendments include
consequential amendments to affected Australian Accounting Standards, Interpretations and other pronouncements to reflect the
issuance of the Conceptual Framework for Financial Reporting (Conceptual Framework) by the AASB.
The amendments:
• Update numerous pronouncements to refer to the new Conceptual Framework for Financial Reporting or to clarify which
version of the Framework is being referenced. These amendments apply to for-profit private sector entities that have public
accountability and are required by legislation to comply with Australian Accounting Standards and other for- profit entities that
voluntarily elect to apply the new Conceptual Framework; and
Permit other entities to continue using the Framework for the Preparation and Presentation of Financial Statements adopted
by the AASB in 2004.
•
This Standard makes amendments to AASB 1054 Additional Australian Disclosures by adding a disclosure requirement for an entity
intending to comply with IFRS Standards to disclose the information specified in paragraphs 30 and 31 of AASB 108 Accounting
Policies, Changes in Accounting Estimates and Errors on the potential effect of an IFRS Standard that has not yet been issued by the
AASB. The Group has adopted these amendments for the first time in the current year.
45 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.4 – NEW AND AMENDED ACCOUNTING STANDARDS ADOPTED BY THE GROUP (continued)
AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform
The amendments in AASB 2019-3 modify specific hedge accounting requirements to allow hedge accounting to continue for affected
hedges during the period of uncertainty before the hedged items or hedging instruments affected by the current interest rate
benchmarks are amended as a result of the on- going interest rate benchmark reforms.
The amending standard does not materially impact the Group.
AASB 2019-5 Amendments to Australian Accounting Standards – Disclosure of the Effect of New IFRS Standards Not Yet Issued in
Australia
This Standard makes amendments to AASB 1054 Additional Australian Disclosures by adding a disclosure requirement for an entity
intending to comply with IFRS Standards to disclose the information specified in paragraphs 30 and 31 of AASB 108 Accounting
Policies, Changes in Accounting Estimates and Errors and the potential effect of an IFRS Standard that has not yet been issued by
the AASB. The Group has adopted these amendments for the first time in the current year.
AASB 2020-4 Amendments to Australian Accounting Standards – C0VID-19 Related Rent Concessions
The amendments introduce a practical expedient into AASB 16. The practical expedient permits a lessee to elect not to assess
whether a COVID-19-related rent concession is a lease modification. A lessee that makes this election does account for any change
in lease payments resulting from the COVID-19 related rent concession the same way it would account for the change applying
AASB 16 if the change were not a lease modification.
The practical expedient applies only to rent concessions occurring as a direct consequence of COVID-19 and only if all of the following
conditions are met:
•
The change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the
consideration for the lease immediately preceding the change
• Any reduction in lease payments affects only payments originally due on or before 30 June 2021
•
There is no substantive change to other terms and conditions of the lease.
The Group has applied the practical expedient to all rent concessions that meet the conditions in AASB 16.46B.
The Group has benefited from abatement of lease payments relating to cinema and hotel premises during the year. The abatement
of lease payments has been accounted for as a negative variable lease payment in the profit or loss. The Group has derecognised
the part of the lease liability that has been extinguished by the forgiveness of lease payments, consistent with the requirements of
paragraph 3.3.1 of AASB 9 Financial Instruments.
New and revised Standards issued but not yet effective
There are no other new or amended standards that are issued but not yet effective that are expected to have a material impact on
the financial statements of the Group in future periods.
46 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.5 – RESTATEMENT OF COMPARATIVES AND DISCONTINUED OPERATIONS
Restatement of comparatives
The Group has applied various changes to accounting policies, which has impacted both the opening position of its financial
statements and the performance and position of previous reporting periods. The details of the accounting policy adjustments have
been outlined below:
Adjustment 1
Reclassification of discontinued
operations to continuing
operations
In December 2020, the Group announced that the sale of the Entertainment Germany
segment as notified to the Federal Cartel Office (“FCO”) had been deemed a prohibited
transaction due to Vue’s deliberate failure to satisfy the FCO conditions. As a result,
the Group has reclassified and reported the Entertainment – Germany segment as a
continuing operation.
The retrospective restatement adjustment is applicable for financial statements issued
for all reporting periods since October 2018.
Adjustment 2
Reinstatement of amortisation,
depreciation and impairment
charges for the Entertainment
– Germany segment
Amortisation, depreciation and impairment charges relating to the Entertainment –
Germany segment ceased in October 2018 when the segment was classified as an asset
held-for sale. As a result of the FCO’s determination (see Adjustment 1) the Group has
reclassified and reported the Entertainment – Germany segment as a continuing
operation, with a retrospective restatement relating to amortisation, depreciation and
impairments.
Adjustment 3
AASB 16 amortisation and
depreciation charges for
Entertainment Germany
The retrospective restatement adjustment is applicable for financial statements issued
for all reporting periods since October 2018.
Amortisation and depreciation charges relating to the Entertainment – Germany
segment ceased in October 2018 when the segment was classified as an asset held-for
sale. As a result of the FCO’s determination (see Adjustment 1) the Group has
reclassified and reported the Entertainment – Germany segment as a continuing
operation, with a retrospective restatement relating to AASB 16 Leases amortisation
and depreciation applied retrospectively from 1 July 2019, being the Group’s initial
application date for AASB 16.
The retrospective restatement adjustment is applicable for the financial statements
issued for the reporting periods ended 31 December 2019 and 30 June 2020.
47 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.5 – RESTATEMENT OF COMPARATIVES AND DISCONTINUED OPERATIONS (continued)
30 June 2020 – Restated
Reported
$’000
67,062
49,439
18,573
7,717
455,837
598,628
543
1,086
78
15,999
1,252,837
604,448
74,550
92,829
58,636
1,699
2,102,705
2,701,333
90,128
488,300
1,072
17,362
78,474
86,322
4,429
320,601
1,086,688
859
9,094
11,135
8,864
604,353
5,149
639,454
1,726,142
975,191
219,126
73,945
702
(1,733)
838,397
(60,058)
(11,366)
(83,822)
975,191
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments and other current assets
Assets held for sale
Total current assets
Non-current assets
Trade and other receivables
Other financial assets
Other investments
Equity accounted investments
Property, plant and equipment
Right-of-use assets
Investment properties
Goodwill and other intangible assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Loans and borrowings
Current tax liabilities
Provisions
Deferred revenue
Lease liabilities
Other current liabilities
Liabilities held for sale
Total current liabilities
Non-current liabilities
Loans and borrowings
Deferred tax liabilities
Provisions
Deferred revenue
Lease liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Share capital
Reserves
Opening reserves
Other comprehensive (expense)/income
Employee share-based payments – net of tax
Retained earnings
Opening retained earnings
Adjustment on initial application of AASB 16 – net of tax
Profit after tax
Dividends paid
Total equity
48 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
Adjustment 1 Adjustment 2 Adjustment 3
$’000
$’000
$’000
9,532
10,528
2,570
1,051
(455,837)
(432,156)
–
–
–
2,300
102,080
298,877
–
6,317
–
22,582
432,156
–
19,365
821
–
1,607
21,973
48,288
–
(320,601)
(228,547)
945
17,707
7,947
3,848
198,100
–
228,547
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(19,520)
(939)
–
–
–
–
(20,459)
(20,459)
–
–
–
–
–
–
–
–
–
–
(6,138)
–
–
–
–
(6,138)
(6,138)
(14,321)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(53,477)
–
–
4,474
–
(49,003)
(49,003)
–
–
–
–
–
–
–
–
–
–
(11,569)
–
–
–
–
(11,569)
(11,569)
(37,434)
–
–
192
–
(6,326)
–
(7,995)
–
(14,321)
–
–
(37,626)
–
(37,434)
Restated
$’000
76,594
59,967
21,143
8,768
–
166,472
543
1,086
78
18,299
1,335,397
848,909
74,550
99,146
63,110
24,281
2,465,399
2,631,871
109,493
489,121
1,072
18,969
100,447
134,610
4,429
–
858,141
1,804
9,094
19,082
12,712
802,453
5,149
850,294
1,708,435
923,436
219,126
73,945
894
(1,733)
832,071
(60,058)
(56,987)
(83,822)
923,436
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.5 – RESTATEMENT OF COMPARATIVES AND DISCONTINUED OPERATIONS (continued)
Revenue and other income
Revenue from sale of goods and rendering of services
Other revenue and income
Expenses
Employee expenses
Film hire and other film expenses
Occupancy expenses
Amortisation, depreciation and impairments
Purchases and other direct expenses
Other operating expenses
Advertising, commissions and marketing expenses
Finance costs
Equity accounted (loss)/profit
Net (loss)/profit of equity accounted associates and joint ventures
(Loss)/profit before tax
Tax credit/(expense)
Net (loss)/profit after tax
Discontinued operations
Profit after tax from discontinued operations
Profit for the period
Other comprehensive income
Foreign currency translation differences – net of tax
Cash flow hedges – net of tax
Other comprehensive income – net of tax
Total comprehensive income
30 June 2020 – Restated
Reported
$’000
Adjustment 1
$’000
Adjustment 2
$’000
Adjustment 3
$’000
719,039
65,027
784,066
(253,527)
(101,961)
(80,038)
(194,624)
(74,828)
(70,978)
(25,349)
(29,883)
(831,188)
(863)
(47,985)
11,985
(36,000)
237,952
8,903
246,855
(56,878)
(65,724)
(53,220)
–
(13,451)
(5,902)
(4,081)
(2,999)
(202,255)
116
44,716
(20,082)
24,634
–
–
–
–
–
–
(11,422)
–
–
–
–
(11,422)
–
(11,422)
3,427
(7,995)
–
–
–
–
–
–
(53,751)
–
–
–
–
(53,751)
–
(53,751)
16,125
(37,626)
Restated
$’000
956,991
73,930
1,030,921
(310,405)
(167,685)
(133,258)
(259,797)
(88,279)
(76,880)
(29,430)
(32,882)
(1,098,616)
(747)
(68,442)
11,455
(56,987)
24,634
(11,366)
(24,634)
–
–
(7,995)
–
(37,626)
–
(56,987)
691
11
702
(10,664)
–
–
–
–
–
–
–
(7,995)
192
–
192
(37,434)
883
11
894
(56,093)
49 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.5 – RESTATEMENT OF COMPARATIVES AND DISCONTINUED OPERATIONS (continued)
30 June 2020 – Restated
Reported
$’000
Adjustment 1
$’000
Adjustment 2
$’000
Adjustment 3
$’000
Cash flows from operating activities
Cash receipts in the course of operations
Cash payments in the course of operations
Cash provided by operations
Distributions from joint ventures
Other revenue
Dividends received
Interest received
Finance costs paid
Income tax paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for property, plant and equipment and redevelopment
of properties
Finance costs paid in relation to qualifying assets
Payments for management rights, software and intangible assets
Payments for interest in joint venture
Decrease in loans from other entities
Proceeds from disposal of property, plant and equipment
Net cash used by investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Payment of lease liabilities
Dividends paid
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash at the beginning of the period
Effect of exchange rate fluctuations
Cash at the end of the period
Attributable to:
Continuing operations
Discontinued operations
Cash at the end of the period
1,094,162
(946,978)
147,184
858
87,175
5
369
(32,770)
(26,454)
176,367
(121,680)
(3,149)
(7,405)
(6,104)
(495)
14,011
(124,822)
181,803
(68,000)
(99,332)
(83,822)
(69,351)
(17,806)
93,761
639
76,594
67,062
9,532
76,594
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
9,532
(9,532)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Restated
$’000
1,094,162
(946,978)
147,184
858
87,175
5
369
(32,770)
(26,454)
176,367
(121,680)
(3,149)
(7,405)
(6,104)
(495)
14,011
(124,822)
181,803
(68,000)
(99,332)
(83,822)
(69,351)
(17,806)
93,761
639
76,594
76,594
–
76,594
50 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.5 – RESTATEMENT OF COMPARATIVES AND DISCONTINUED OPERATIONS (continued)
Discontinued operations
On 22 October 2018, the sale of the German Cinema operation to Vue International Bidco plc (“Vue”), subject to Federal Cartel
Office (“FCO”) approval, was announced. As a result of the proposed sale, the Entertainment Germany result was reported as
a discontinued operation for all reporting periods from December 2018 through to June 2020. Key steps and dates in relation
to the proposed sale have been set out below:
•
The Sale and Purchase Agreement (“SPA”) for the sale was signed in October 2018. The upfront payment required on
completion was €130 million with a further variable consideration component that was subject to market performance
conditions. The sale was not subject to financing and the SPA excluded all force majeure and material adverse event
clauses. The SPA also obligated Vue to obtain FCO clearance and to satisfy all conditions required in relation to FCO
clearance;
• On 18 February 2020, Vue confirmed that a variable consideration component of €56.9 million had been achieved;
•
The FCO granted conditional approval for the sale on 28 February 2020. The conditional approval was subject to the
divestment of six sites within a six-month period. The designated divestment sites included five of the CineStar sites and
one CineMaXx (Vue) site. Divestment of one CineStar site was completed in October 2020;
• On 21 August 2020, at the request of Vue, the FCO extended the divestment deadline to 13 November 2020;
• On 12 October 2020, Vue unilaterally paused the divestment process in order to renegotiate the terms of the Transaction
with the Group. At the time of the pause, the divestment process was well advanced and there were three shortlisted
purchasers, which had all received in-principle approval from the FCO as suitable purchasers subject to final FCO review
and approval of the transaction documents;
• On 6 November 2020, at the request of Vue, the FCO further extended the divestment deadline to 14 December 2020;
and
• On 15 December 2020, the Group announced that in its view, Vue was in a position to complete the divestment process
but deliberately failed to meet its contractual obligations. As a result, the sale of the Entertainment Germany segment, as
notified to the FCO, was a prohibited transaction due to the failure to satisfy the FCO conditions.
The Group has reclassified and reported the Entertainment – Germany segment as a continuing operation. The retrospective
restatement adjustment is applicable for financial statements issued for all reporting periods since October 2018.
As disclosed within previous reporting periods, profit attributable to discontinued operations was as follows:
Revenue and other income
Revenue from sale of goods and rendering of services
Other revenue and income
Total revenue
Expenses
Film hire and other film expenses
Occupancy expenses
Employee expenses
Purchases and other direct expenses
Amortisation and depreciation*
Advertising, commissions and marketing expenses
Other operating expenses
Finance costs
Total expenses
Equity profit
Share of net profit of equity accounted investees
Profit before income tax expense
Income tax expense
Profit after tax from discontinued operations
Cash flows from discontinued operations were as follows:
Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities
Net cash flows for the period
Full year
30 June 2020
$’000
Half year
31 Dec 2019
$’000
Full year
30 June 2019
$’000
Half year
31 Dec 2018
$’000
237,952
8,903
246,855
(65,724)
(53,220)
(56,878)
(13,451)
–
(4,081)
(5,902)
(2,999)
(202,255)
116
44,716
(20,082)
24,634
30,513
(4,574)
(38,899)
(12,960)
173,282
3,792
177,074
(48,354)
(32,518)
(32,362)
(9,837)
–
(2,590)
(2,334)
(1,665)
(129,660)
1,040
48,454
(13,915)
34,539
51,803
(692)
(26,617)
24,494
289,971
5,008
294,979
(78,757)
(117,920)
(58,841)
(16,465)
(3,156)
(5,234)
(6,259)
(541)
(287,173)
1,128
8,934
(4,124)
4,810
13,929
(11,388)
(39,075)
(36,534)
145,518
2,374
147,892
(39,432)
(58,087)
(28,887)
(8,492)
(3,403)
(2,798)
(3,244)
(268)
(144,611)
759
4,040
(1,547)
2,493
13,966
(8,941)
(16,656)
(11,631)
51 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 1 – B A S I S O F P R E P A R A T I O N
1.5 – RESTATEMENT OF COMPARATIVES AND DISCONTINUED OPERATIONS (continued)
* Amortisation, depreciation and impairment charges, and resulting tax benefit, that would have been recognised in the Income Statement had the segment
Entertainment Germany not been classified as a discontinued operation in October 2018 is as follows:
•
•
•
•
For the full year ending 30 June 2020 (including AASB 16 adjustments): depreciation, amortisation and impairments of $65,173,000 and a related
tax benefit of $19,552,000.
For the half year ended 31 December 2019 (including AASB 16 adjustments): depreciation, amortisation and impairments of $32,307,000 and a
related tax benefit of $9,692,000.
For the full year ending 30 June 2019: depreciation, amortisation and impairments of $9,037,000 and a related tax benefit of $2,711,000.
For the half year ended 31 December 2018: depreciation, amortisation and impairments of $2,147,000 and a related tax benefit of $644,000.
As disclosed within previous reporting periods, assets and liabilities attributable to discontinued operations was as follows:
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments and other current assets
Investments accounted for using the equity method
Property, plant and equipment **
Right-of-use assets
Goodwill and other intangible assets
Deferred tax assets **
Other assets
Assets held for sale
LIABILITIES
Trade and other payables
Loans and borrowings
Provisions
Deferred revenue
Lease liabilities
Deferred tax liabilities **
Liabilities held for sale
Net assets held for sale
30 June 2020
$’000
31 Dec 2019
$’000
30 June 2019
$’000
31 Dec 2018
$’000
9,532
10,528
2,570
1,051
2,300
102,080
298,877
6,317
–
22,582
455,837
19,365
1,766
9,554
25,821
246,388
17,707
320,601
135,236
45,981
13,907
3,350
609
3,818
96,418
262,482
6,358
–
–
432,923
18,662
1,707
6,693
31,095
236,616
10,249
305,022
127,901
21,836
12,428
3,265
1,157
2,830
96,413
–
6,665
71
–
144,665
13,622
2,055
8,083
26,529
–
–
50,289
94,376
44,087
17,793
3,842
450
3,036
93,570
–
6,729
2,130
890
172,527
19,675
2,200
7,946
31,175
–
–
60,996
111,531
** Amortisation, depreciation and impairments charges, and resulting tax benefit, that would have been reflected within the assets and liabilities had
the segment Entertainment Germany not been classified as a discontinued operation in October 2018 is as follows:
-
-
-
-
For the full year ending 30 June 2020: a reduction in property, plant and equipment of $19,520,000, a reduction in right-of-use assets
of $54,416,000 and a related tax benefit of $22,181,000.
For the half year ended 31 December 2019: a reduction in property, plant and equipment of $14,513,000, a reduction in right-of-use
assets of $26,831,000 and a related tax benefit of $12,403,000.
For the full year ending 30 June 2019 (including AASB 16 adjustments): a reduction in property, plant and equipment of $9,037,000
and a related cumulative tax benefit of $2,711,000.
For the half year ended 31 December 2018 (including AASB 16 adjustments): a reduction in property, plant and equipment of
$2,147,000 and a related cumulative tax benefit of $644,000.
52 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 2 – P E R F O R M A N C E F O R T H E Y E A R
This section focuses on the results and performance of the Group. On the following pages are disclosures
explaining the Group’s revenue, segment reporting, individually significant items, taxation and earnings per
share.
2.1 – REVENUE
Revenue recognition policies
Revenue is measured based on the consideration specified in a contract with a customer. The Group recognises revenue when
it transfers control of a good or service to a customer. The following table provides information about the nature and timing
of the satisfaction of performance obligations in contacts with customers, including significant payment terms and the related
revenue recognition policies. The Group’s revenue recognition accounting policies are summarised in the table below:
Type of
product/
service
Box office
Nature and timing of satisfaction of
performance obligations, including
significant payment terms
Customers purchase a ticket to see a
film and
the customer obtains
control of the service when they see
the film. Tickets may be purchased
by customers in advance or on the
day of the film screening.
Customers that are members of the
loyalty program
Group’s cinema
(Cinebuzz)
points when
earn
purchasing tickets which can be used
to purchase services from the Group
in the future.
Revenue recognition policies
Box office ticket revenue is recognised on the date the
customer views the relevant film.
When tickets are sold in advance, the revenue is recorded as
deferred revenue in the Statement of Financial Position until
the date of the film screening.
When gift cards and vouchers are sold to customers, the
revenue is recognised as deferred revenue in the Statement of
Financial Position until the customer uses the gift card or
voucher to purchase goods or services from the Group.
Revenue from gift cards and vouchers that will not be
redeemed by customers (“breakage”)
is estimated and
recognised as revenue based on historical patterns of
redemption by customers.
When customers earn loyalty points, box office revenue is
allocated proportionally based on the relative stand-alone
selling prices of the ticket and the loyalty points earned. The
stand-alone selling price of the loyalty points is determined
with reference to the average admission price and expected
loyalty point breakage. Loyalty point revenue is recognised as
deferred revenue in the Statement of Financial Position until
the points are redeemed or expire. Breakage is estimated based
on historical patterns of redemptions by customers.
Commission and other direct expenses incurred in relation to
the sale of gift cards are recognised as an asset until the gift
cards are redeemed or expire.
Food and
beverage
Customers obtain control of food
and beverage at the point of sale.
Revenue is recognised at the point of sale.
Hotel rooms
Customers obtain control of the
accommodation service when they
occupy the room.
Revenue is recognised when the room is occupied.
53 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 2 – P E R F O R M A N C E F O R T H E Y E A R
2.1 – REVENUE (continued)
Revenue recognition policies (continued)
Type of
product/
service
Nature and timing of satisfaction of
performance obligations, including
significant payment terms
Hotel
management
and service
agreements
Customers, being hotel owners,
obtain control of the management
service as it is provided over the life
the management or service
of
agreement.
Thredbo lift
tickets
Customers obtain control of the lift
service on the day or other period
when the lift ticket is valid for use.
Thredbo ski
school
Customers obtain control of the ski
school service when the lesson is
attended.
Details of the Group’s revenue have been provided below:
Revenue from contracts with customers (see below)
Other revenue
Rental revenue
Finance revenue
Dividends
Government wage subsidies and other support (a)
Sundry
Other income
Reversal of impairment charges booked in previous years
Insurance proceeds
Increase in fair value of investment properties
Profit on sale of property, plant and equipment
Revenue recognition policies
Revenue is recognised as the fees are earned over the life of the
contract. Contract acquisition costs are recognised over the life
of the control as a reduction in revenue.
Revenue is recognised as customers use the service. For season
and other passes, revenue is recorded as deferred revenue in
the Statement of Financial Position initially and is then
recognised over the period that the pass is valid.
Revenue is recognised at the time of the lesson or other activity.
2021
$’000
Restated
2020
$’000
505,841
956,991
27,121
215
5
112,563
560
140,464
3,997
−
6,950
35,222
46,169
692,474
30,446
369
5
38,176
1,750
70,746
2,219
−
−
965
3,184
1,030,921
(a) Government wage subsidies and other support includes:
•
JobKeeper, was a temporary subsidy scheme implemented by the Australian Government to support businesses that had been
impacted by COVID-19 and had experienced significant reductions in annual turnover. Certain Group companies resident in
Australia qualified for JobKeeper;
• Wage Subsidy, is a temporary subsidy scheme implemented by the New Zealand government to support businesses that had
experienced significant reductions in revenue during the COVID-19 period. Certain Group companies resident in New Zealand
qualified for the Wage Subsidy.
Kurzarbeitergeld, is a temporary wage subsidy implemented by the German government to support businesses that have
experienced significant reductions in revenue during the COVID-19 period. Certain Group companies resident in Germany have
qualified for the Wage Subsidy. In addition, the Damage Support program was implemented by the Germany government as a
form of compensation for businesses affected by the November and December 2020 lockdown period.
•
54 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
R
A
E
Y
E
H
T
R
O
F
E
C
N
A
M
R
O
F
R
E
P
–
2
N
O
I
T
C
E
S
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
5
3
4
1
3
1
,
4
7
2
4
4
1
,
9
1
8
5
0
1
,
8
9
7
1
1
,
8
9
0
9
3
,
7
1
4
3
7
,
1
4
8
5
0
5
,
1
2
1
7
2
,
3
6
5
2
1
1
,
5
5
1
2
6
7
5
0
5
9
6
,
1
7
2
3
5
6
,
3
0
2
9
3
,
4
7
4
2
9
6
,
–
–
–
–
–
–
–
–
5
–
–
5
1
2
2
5
2
1
,
–
2
7
4
1
,
2
7
4
1
,
–
–
–
–
–
–
–
–
6
2
9
1
,
6
2
9
1
,
3
4
0
3
1
,
–
0
5
9
6
,
9
1
9
1
2
,
7
6
8
0
1
,
6
8
7
2
3
,
d
e
t
a
d
i
l
o
s
n
o
C
d
n
a
e
t
a
r
o
p
r
o
C
r
e
h
t
o
d
e
t
a
c
o
l
l
a
n
U
s
t
n
e
m
t
s
e
v
n
i
i
e
n
p
A
l
t
r
o
s
e
R
0
0
0
’
$
–
–
8
7
4
3
1
,
4
6
9
3
,
8
9
0
9
3
,
7
2
0
1
1
,
7
6
5
7
6
,
2
4
9
7
,
2
4
6
2
,
–
–
–
–
8
0
5
9
5
6
8
7
,
9
5
6
8
7
,
d
n
a
y
t
r
e
p
o
r
P
o
b
d
e
r
h
T
0
0
0
’
$
s
t
r
o
s
e
R
d
n
a
s
l
e
t
o
H
0
0
0
’
$
y
n
a
m
r
e
G
0
0
0
’
$
d
n
a
a
i
l
a
r
t
s
u
A
l
d
n
a
a
e
Z
w
e
N
i
t
n
e
m
n
a
t
r
e
t
n
E
–
–
5
5
1
9
5
,
5
5
8
1
0
1
,
8
9
7
9
,
6
4
1
3
1
,
4
5
9
3
8
1
,
8
0
6
1
,
0
6
1
7
1
,
–
–
–
7
7
2
6
3
,
9
2
7
2
0
2
,
6
5
3
6
0
2
,
–
3
4
2
–
8
2
1
4
1
,
8
7
6
7
,
0
7
5
4
,
9
1
6
6
2
,
5
2
4
4
,
1
0
4
6
5
,
–
–
–
1
6
–
6
0
5
7
8
,
6
0
5
7
8
,
7
0
3
7
1
1
,
3
6
9
3
6
,
–
–
7
5
7
1
,
8
4
7
2
4
,
5
7
7
5
2
2
,
3
0
1
8
0
1
5
3
,
–
–
–
–
6
8
9
0
6
2
,
9
0
7
4
2
,
5
9
6
5
8
2
,
s
r
e
m
o
t
s
u
c
h
t
i
w
s
t
c
a
r
t
n
o
c
m
o
r
f
e
u
n
e
v
e
r
f
o
n
o
i
t
a
g
e
r
g
g
a
s
i
D
s
r
e
m
o
t
s
u
c
h
t
i
w
s
t
c
a
r
t
n
o
c
m
o
r
f
e
u
n
e
v
e
r
r
e
h
t
O
s
r
e
m
o
t
s
u
c
h
t
i
w
s
t
c
a
r
t
n
o
c
m
o
r
f
e
u
n
e
v
e
R
s
t
n
e
m
e
e
r
g
a
e
c
i
v
r
e
s
d
n
a
t
n
e
m
e
g
a
n
a
M
s
t
e
k
c
i
t
t
f
i
l
o
b
d
e
r
h
T
e
u
n
e
v
e
r
l
a
t
n
e
R
t
r
o
p
p
u
s
r
e
h
t
o
d
n
a
s
e
d
i
s
b
u
s
e
g
a
w
i
t
n
e
m
n
r
e
v
o
G
s
e
n
i
l
e
c
i
v
r
e
s
/
s
t
c
u
d
o
r
p
r
o
j
a
M
e
g
a
r
e
v
e
b
d
n
a
d
o
o
F
s
m
o
o
r
l
e
t
o
H
e
c
i
f
f
o
x
o
B
1
2
0
2
)
d
e
u
n
i
t
n
o
c
(
E
U
N
E
V
E
R
–
1
.
2
y
t
r
e
p
o
r
p
t
n
e
m
t
s
e
v
n
i
f
o
e
u
a
v
l
r
i
a
f
n
i
e
s
a
e
r
c
n
I
y
r
d
n
u
S
e
u
n
e
v
e
r
e
c
n
a
n
F
i
s
d
n
e
d
i
v
i
D
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
y
l
l
a
u
d
i
v
i
d
n
i
e
r
o
f
e
b
e
m
o
c
n
i
r
e
h
t
o
d
n
a
e
u
n
e
v
e
r
l
a
t
o
T
e
m
o
c
n
i
r
e
h
t
o
–
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
y
l
l
a
u
d
i
v
i
d
n
I
e
m
o
c
n
i
r
e
h
t
o
d
n
a
e
u
n
e
v
e
r
l
a
t
o
T
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
5
5
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
R
A
E
Y
E
H
T
R
O
F
E
C
N
A
M
R
O
F
R
E
P
–
2
N
O
I
T
C
E
S
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
8
5
1
6
6
3
,
1
6
1
5
7
2
,
8
3
2
0
5
1
,
8
7
8
4
1
,
0
2
1
9
3
,
6
3
4
1
1
1
,
1
9
9
6
5
9
,
9
6
3
6
4
4
0
3
,
6
7
1
8
3
,
5
–
4
0
2
2
,
0
3
7
2
,
,
1
9
1
8
2
0
1
,
,
1
2
9
0
3
0
1
,
–
–
–
–
–
–
–
–
8
6
4
9
6
3
5
–
7
1
9
5
8
–
9
5
8
–
–
–
–
–
–
–
–
–
–
4
8
3
2
,
4
8
3
2
,
8
7
0
6
1
,
1
1
5
2
6
4
8
1
,
3
7
9
8
1
,
d
e
t
a
d
i
l
o
s
n
o
C
d
n
a
e
t
a
r
o
p
r
o
C
r
e
h
t
o
d
e
t
a
c
o
l
l
a
n
U
s
t
n
e
m
t
s
e
v
n
i
i
e
n
p
A
l
t
r
o
s
e
R
0
0
0
’
$
–
–
2
7
9
1
1
,
0
8
7
2
,
0
2
1
9
3
,
7
9
8
9
,
9
6
7
3
6
,
9
0
8
7
,
2
0
5
1
,
–
–
–
–
4
3
8
4
1
9
3
7
,
4
1
9
3
7
,
d
n
a
y
t
r
e
p
o
r
P
o
b
d
e
r
h
T
0
0
0
’
$
s
t
r
o
s
e
R
d
n
a
s
l
e
t
o
H
0
0
0
’
$
y
n
a
m
r
e
G
0
0
0
’
$
d
n
a
a
i
l
a
r
t
s
u
A
l
d
n
a
a
e
Z
w
e
N
i
t
n
e
m
n
a
t
r
e
t
n
E
–
–
8
5
0
8
8
,
8
5
4
7
4
1
,
6
0
5
2
1
,
5
8
2
5
1
,
7
0
3
3
6
2
,
0
8
8
1
,
5
7
3
1
1
,
–
–
–
1
1
0
1
,
9
1
2
2
,
3
7
5
7
7
2
,
2
9
7
9
7
2
,
–
–
9
2
4
8
7
8
0
7
,
7
6
0
9
3
1
,
8
7
5
7
2
,
2
5
9
7
3
2
,
6
0
6
4
,
4
4
8
3
,
–
–
–
–
2
4
3
4
4
7
6
4
2
,
1
9
0
7
2
2
,
3
5
2
4
0
1
,
–
–
3
4
9
1
,
2
9
2
6
5
,
9
7
5
9
8
3
,
3
7
7
8
9
0
2
,
–
–
–
–
–
9
3
6
0
1
4
,
s
r
e
m
o
t
s
u
c
h
t
i
w
s
t
c
a
r
t
n
o
c
m
o
r
f
e
u
n
e
v
e
r
f
o
n
o
i
t
a
g
e
r
g
g
a
s
i
D
s
r
e
m
o
t
s
u
c
h
t
i
w
s
t
c
a
r
t
n
o
c
m
o
r
f
e
u
n
e
v
e
r
r
e
h
t
O
s
r
e
m
o
t
s
u
c
h
t
i
w
s
t
c
a
r
t
n
o
c
m
o
r
f
e
u
n
e
v
e
R
s
t
n
e
m
e
e
r
g
a
e
c
i
v
r
e
s
d
n
a
t
n
e
m
e
g
a
n
a
M
s
t
e
k
c
i
t
t
f
i
l
o
b
d
e
r
h
T
i
s
e
d
i
s
b
u
s
e
g
a
w
t
n
e
m
n
r
e
v
o
G
e
u
n
e
v
e
r
l
a
t
n
e
R
s
e
n
i
l
e
c
i
v
r
e
s
/
s
t
c
u
d
o
r
p
r
o
j
a
M
0
2
0
2
d
e
t
a
t
s
e
R
e
g
a
r
e
v
e
b
d
n
a
d
o
o
F
s
m
o
o
r
l
e
t
o
H
e
c
i
f
f
o
x
o
B
)
d
e
u
n
i
t
n
o
c
(
E
U
N
E
V
E
R
–
1
.
2
y
t
r
e
p
o
r
p
t
n
e
m
t
s
e
v
n
i
f
o
e
u
a
v
l
r
i
a
f
n
i
e
s
a
e
r
c
n
I
y
r
d
n
u
S
e
u
n
e
v
e
r
e
c
n
a
n
F
i
s
d
n
e
d
i
v
i
D
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
y
l
l
a
u
d
i
v
i
d
n
i
e
r
o
f
e
b
e
m
o
c
n
i
r
e
h
t
o
d
n
a
e
u
n
e
v
e
r
l
a
t
o
T
e
m
o
c
n
i
r
e
h
t
o
–
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
y
l
l
a
u
d
i
v
i
d
n
I
4
4
7
6
4
2
,
9
3
6
0
1
4
,
e
m
o
c
n
i
r
e
h
t
o
d
n
a
e
u
n
e
v
e
r
l
a
t
o
T
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
6
5
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 2 – P E R F O R M A N C E F O R T H E Y E A R
2.2 – SEGMENT REPORTING
Accounting policy
An operating segment is a component of the Group that engages in business activities from which it earns revenues and incurs
expenses, including revenues and expenses from transactions with other Group segments. All segments’ operating results are
regularly reviewed by the Group’s CEO to make decisions about resources to be allocated to a segment and to assess its
performance, and for which discrete financial information is available.
Segment results that are reported to the CEO include items directly attributable to a segment, before individually significant
items, as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate head office
assets, head office expenses, and income tax assets and liabilities.
Additions to non-current segment assets are the total cost incurred during the period to acquire assets that include amounts
expected to be recovered over more than 12 months after the year end date. Amounts include property, plant and equipment,
but exclude financial instruments and deferred tax assets.
Segment information is presented in respect of the Group’s reporting segments. These are the Group’s main strategic business
segments and have differing risks and rewards associated with the business due to their different product or service and
geographic markets. For each of these operating segments, the Group’s CEO regularly reviews internal management reports.
Information regarding the results of each reportable segment is included below. Performance is measured based on segment
profit before income tax as included in the internal management reports. Segment profit is used to measure performance as
management believes that such information is the most relevant in evaluating the results of segments relative to those of other
businesses. Inter-segment pricing is determined on an arm’s length basis.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on
a reasonable basis. Unallocated items mainly comprise interest bearing loans and borrowings and borrowing costs, interest
income and corporate head office assets and expenses.
Operating segments
The Group comprises the following main operating segments:
Entertainment
Includes cinema exhibition operations in Australia and New Zealand, technology equipment supply and servicing, and the State
Theatre.
Entertainment Germany
Includes the cinema exhibition operations in Germany. Refer to note 1.5 for further information.
Hotels and Resorts
Includes the ownership, operation and management of hotels in Australia and New Zealand.
Thredbo Alpine Resort
Includes all the operations of the resort including property development activities.
Property and Other Investments
Includes property rental, investment properties and investments designated as at fair value through other comprehensive
income.
Geographical information
Also presented is information on the Group’s split of revenue and non-current assets by geographic location. Geographic
revenue is based on the geographical location of customers. Segment assets are based on the geographical location of the
assets. The Group operates in Australia, New Zealand and Germany.
57 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
R
A
E
Y
E
H
T
R
O
F
E
C
N
A
M
R
O
F
R
E
P
–
2
N
O
I
T
C
E
S
5
1
2
2
2
5
3
3
5
,
7
3
7
8
5
1
,
4
7
4
2
9
6
,
0
9
6
6
2
0
0
7
1
,
6
1
7
0
7
1
,
)
7
2
6
6
8
1
(
,
5
1
2
)
3
2
9
5
(
,
)
4
3
8
1
2
(
,
)
9
0
4
1
4
(
,
2
9
9
4
1
,
)
8
2
0
3
6
(
,
)
6
3
0
8
4
(
,
,
8
1
8
6
0
7
1
,
5
4
9
3
1
,
6
7
2
9
3
,
1
4
5
8
0
9
,
,
0
8
5
8
6
6
2
,
–
5
5
1
2
0
2
2
–
–
–
–
–
–
5
1
2
)
9
2
1
8
1
(
,
)
6
8
7
(
8
2
1
7
1
,
)
4
1
9
7
1
(
,
–
–
4
4
6
9
4
,
6
7
2
,
9
3
0
2
9
8
8
,
7
5
5
2
4
,
–
2
0
3
4
8
7
,
0
9
1
9
8
4
,
–
,
2
4
7
1
1
0
1
,
,
4
4
0
6
9
7
1
,
–
–
0
9
1
9
8
4
,
–
–
3
0
2
9
3
,
3
0
2
9
3
,
–
3
3
8
9
1
,
–
3
3
8
9
1
,
)
3
2
9
,
5
(
0
1
9
,
3
1
–
–
0
1
9
3
1
,
)
6
3
1
2
(
,
4
7
7
1
1
,
–
–
–
–
–
–
–
–
–
–
,
4
7
1
7
5
6
1
,
–
5
4
9
3
1
,
1
4
5
,
8
0
9
,
0
6
6
9
7
5
2
,
–
2
1
1
5
9
2
,
,
2
4
7
1
1
0
1
,
,
4
5
8
6
0
3
1
,
–
–
–
–
–
–
–
–
–
–
2
2
5
,
3
3
5
9
2
5
9
1
1
,
1
5
0
3
5
6
,
0
9
6
3
9
1
0
5
1
,
3
8
8
0
5
1
,
)
7
2
6
6
8
1
(
,
–
–
)
4
4
7
5
3
(
,
)
0
8
2
3
2
(
,
–
–
2
5
2
1
,
2
5
2
1
,
–
0
5
9
6
,
9
6
9
4
1
,
9
1
9
1
2
,
)
5
3
7
2
1
(
,
8
4
7
6
1
,
–
–
)
5
1
2
2
(
,
)
5
3
7
2
1
(
,
–
–
8
4
7
6
1
,
)
5
4
7
2
(
,
–
–
–
–
)
0
5
9
4
1
(
,
3
0
0
4
1
,
–
–
–
)
4
2
0
9
5
(
,
)
0
5
9
4
1
(
,
3
0
0
4
1
,
)
4
2
0
9
5
(
,
)
0
5
9
4
1
(
,
3
0
0
4
1
,
–
1
5
6
2
,
8
0
0
6
7
,
9
5
6
8
7
,
–
5
7
7
9
2
,
5
7
7
9
2
,
)
1
5
6
4
(
,
–
4
2
1
5
2
,
–
–
–
4
2
1
5
2
,
4
2
1
5
2
,
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
d
e
t
a
d
i
l
o
s
n
o
C
x
a
t
d
n
a
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
s
t
n
e
m
g
e
s
e
t
a
r
o
p
r
o
C
y
t
r
e
p
o
r
P
0
0
0
’
$
t
r
o
s
e
R
d
e
t
a
c
o
l
l
a
n
U
y
l
l
a
u
d
i
v
i
d
n
I
l
a
t
o
T
l
i
e
n
p
A
o
b
d
e
r
h
T
–
–
–
–
–
–
1
3
5
5
4
3
,
0
4
9
7
6
,
1
3
5
5
4
3
,
0
4
9
7
6
,
9
8
7
9
9
7
,
8
6
2
2
4
4
,
2
3
1
4
2
9
,
0
0
0
’
$
s
t
r
o
s
e
R
d
n
a
s
l
e
t
o
H
–
7
6
1
7
1
,
2
6
5
5
8
1
,
–
5
0
1
1
3
,
1
0
4
6
5
,
–
8
0
1
5
3
,
8
7
8
5
2
2
,
0
0
0
’
$
y
n
a
m
r
e
G
0
0
0
’
$
d
n
a
l
a
e
Z
i
t
n
e
m
n
a
t
r
e
t
n
E
w
e
N
d
n
a
a
i
l
a
r
t
s
u
A
9
2
7
2
0
2
,
6
0
5
7
8
,
6
8
9
0
6
2
,
)
8
6
3
(
4
7
6
6
3
,
6
0
3
6
3
,
2
7
9
1
,
7
0
0
2
1
,
9
7
9
3
1
,
)
4
1
9
(
4
2
7
7
6
,
0
1
8
6
6
,
)
9
8
4
0
3
(
,
)
2
3
4
6
5
(
,
)
5
9
0
0
9
(
,
–
7
1
8
5
,
)
1
6
6
,
1
(
–
–
6
5
1
4
,
6
5
1
4
,
–
1
5
2
4
,
9
9
4
8
6
,
9
3
0
7
2
7
,
–
–
)
6
0
0
2
(
,
)
3
5
4
2
4
(
,
–
–
)
5
8
2
3
2
(
,
)
3
1
6
9
1
(
,
–
–
)
9
5
4
4
4
(
,
)
8
9
8
2
4
(
,
)
9
5
4
4
4
(
,
)
8
9
8
2
4
(
,
–
4
1
1
4
,
6
9
0
1
8
1
,
8
5
0
7
5
2
,
–
0
8
5
5
,
8
6
5
5
3
3
,
4
8
9
2
8
5
,
e
s
n
e
p
x
e
x
a
t
e
m
o
c
n
i
d
n
a
t
s
e
r
e
t
n
i
e
r
o
f
e
b
)
s
s
o
l
(
/
t
i
f
o
r
P
s
e
e
t
s
e
v
n
i
d
e
t
n
u
o
c
c
a
y
t
i
u
q
e
f
o
t
i
f
o
r
p
t
e
N
n
o
i
t
a
s
i
t
r
o
m
a
d
n
a
n
o
i
t
a
i
c
e
r
p
e
D
e
g
r
a
h
c
t
n
e
m
r
i
a
p
m
I
*
A
D
T
I
B
E
e
s
n
e
p
x
e
x
a
t
e
m
o
c
n
i
e
r
o
f
e
b
)
s
s
o
l
(
/
t
i
f
o
r
P
)
e
s
n
e
p
x
e
(
/
t
i
d
e
r
c
x
a
t
e
m
o
c
n
I
)
s
s
o
l
(
/
t
i
f
o
r
p
t
e
N
e
u
n
e
v
e
r
e
c
n
a
n
F
i
s
t
s
o
c
e
c
n
a
n
F
i
s
t
e
s
s
A
)
s
t
e
s
s
a
e
s
u
f
o
-
t
h
g
i
r
g
n
d
u
l
c
x
e
(
i
s
t
e
s
s
a
t
n
e
m
g
e
s
e
b
a
t
r
o
p
e
R
l
s
t
n
e
m
t
s
e
v
n
i
d
e
t
n
u
o
c
c
a
y
t
i
u
q
E
s
t
e
s
s
a
x
a
t
d
e
r
r
e
f
e
D
s
t
e
s
s
a
e
s
u
-
f
o
-
t
h
g
R
i
s
t
e
s
s
a
l
a
t
o
T
s
e
i
t
i
l
i
b
a
i
L
G
N
I
T
R
O
P
E
R
T
N
E
M
G
E
S
–
2
.
2
e
m
o
c
n
i
r
e
h
t
o
d
n
a
e
u
n
e
v
e
R
e
u
n
e
v
e
r
t
n
e
m
g
e
s
l
a
n
r
e
t
x
E
l
a
n
r
e
t
x
e
–
e
m
o
c
n
i
r
e
h
t
O
e
u
n
e
v
e
r
e
c
n
a
n
F
i
e
m
o
c
n
i
r
e
h
t
o
d
n
a
e
u
n
e
v
e
R
1
2
0
2
e
n
u
J
0
3
t
l
u
s
e
r
t
n
e
m
g
e
S
t
l
u
s
e
R
7
5
5
2
4
,
2
2
5
1
9
5
4
,
7
4
2
4
,
1
2
6
0
2
,
1
9
5
8
4
2
1
,
s
t
e
s
s
a
t
n
e
r
r
u
c
-
n
o
n
f
o
n
o
i
t
i
s
i
u
q
c
A
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
8
5
–
–
–
–
–
–
3
7
8
8
4
,
3
7
8
8
4
,
–
7
2
1
9
4
,
7
0
2
4
7
,
4
3
3
3
2
1
,
–
0
0
1
1
7
,
7
2
0
7
6
2
,
–
2
1
0
6
2
1
,
8
0
5
0
7
6
,
7
2
1
8
3
3
,
0
2
5
6
9
7
,
)
s
e
i
t
i
l
i
b
a
i
l
e
s
a
e
l
i
g
n
d
u
l
c
x
e
(
s
e
i
t
i
l
i
b
a
i
l
t
n
e
m
g
e
s
e
b
a
t
r
o
p
e
R
l
s
e
i
t
i
l
i
b
a
i
L
x
a
t
d
e
r
r
e
f
e
D
s
e
i
t
i
l
i
b
a
i
l
e
s
a
e
L
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
T
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
R
A
E
Y
E
H
T
R
O
F
E
C
N
A
M
R
O
F
R
E
P
–
2
N
O
I
T
C
E
S
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
d
e
t
a
t
s
e
R
d
e
t
a
d
i
l
o
s
n
o
C
t
a
c
o
l
l
a
n
U
x
a
t
d
n
a
d
e
y
l
l
a
u
d
i
v
i
d
n
I
l
a
t
o
T
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
s
t
n
e
m
g
e
s
e
t
a
r
o
p
r
o
C
0
0
0
’
$
y
t
r
e
p
o
r
P
t
r
o
s
e
R
0
0
0
’
$
i
e
n
p
A
l
o
b
d
e
r
h
T
4
5
0
7
4
,
6
1
7
0
7
1
,
)
2
6
6
3
2
1
(
,
2
6
6
3
2
1
,
)
0
8
2
3
2
(
,
)
5
4
3
8
0
1
(
,
4
0
2
2
,
)
9
5
7
5
(
,
–
–
–
–
–
–
–
–
–
3
3
8
9
1
,
3
3
8
9
1
,
1
2
2
7
2
,
3
8
8
0
5
1
,
)
2
6
6
3
2
1
(
,
–
–
–
)
5
3
7
2
1
(
,
8
4
7
6
1
,
5
7
7
9
2
,
)
5
3
7
2
1
(
,
8
4
7
6
1
,
5
7
7
9
2
,
–
–
–
–
–
2
6
6
,
3
2
1
)
0
8
2
3
2
(
,
)
5
4
3
8
0
1
(
,
4
0
2
2
,
)
9
5
7
,
5
(
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0
0
0
’
$
s
t
r
o
s
e
R
d
n
a
s
l
e
t
o
H
0
0
0
’
$
y
n
a
m
r
e
G
0
0
0
’
$
d
n
a
a
i
l
a
r
t
s
u
A
d
n
a
l
a
e
Z
w
e
N
i
t
n
e
m
n
a
t
r
e
t
n
E
6
0
3
6
3
,
)
7
5
8
,
2
(
9
4
4
3
3
,
7
5
8
2
,
)
5
9
9
,
2
(
)
1
6
6
,
1
(
5
9
4
)
4
0
3
,
1
(
9
7
9
3
1
,
)
5
9
5
7
4
(
,
)
6
1
6
3
3
(
,
0
1
8
6
6
,
)
0
1
2
3
7
(
,
)
0
0
4
6
(
,
5
9
5
7
4
,
)
6
0
0
2
(
,
)
6
5
4
7
4
(
,
0
6
5
)
7
0
3
1
(
,
0
1
2
3
7
,
)
4
9
8
7
5
(
,
)
3
1
6
9
1
(
,
9
4
1
1
,
)
8
4
1
3
(
,
s
e
s
a
e
L
6
1
B
S
A
A
s
t
n
e
m
j
t
s
u
d
a
f
o
n
o
i
t
a
i
l
i
c
n
o
c
e
R
i
*
)
s
e
s
a
e
L
6
1
B
S
A
A
g
n
d
u
l
c
n
i
(
A
D
T
I
B
E
d
e
t
r
o
p
e
R
s
t
s
o
c
y
c
n
a
p
u
c
c
O
:
s
s
e
L
1
2
0
2
e
n
u
J
0
3
G
N
I
T
R
O
P
E
R
T
N
E
M
G
E
S
–
2
.
2
i
*
)
s
e
s
a
e
L
6
1
B
S
A
A
g
n
d
u
l
c
x
e
(
A
D
T
I
B
E
d
e
t
s
u
d
A
j
s
e
s
a
e
L
6
1
B
S
A
A
m
o
r
f
g
n
i
s
i
r
a
s
t
c
a
p
m
i
t
l
u
s
e
R
s
t
s
o
c
y
c
n
a
p
u
c
c
O
n
o
i
t
a
s
i
t
r
o
m
A
s
t
s
o
c
e
c
n
a
n
F
i
*
*
t
i
d
e
r
c
x
a
t
e
m
o
c
n
I
.
t
c
a
p
m
i
d
e
t
a
c
o
l
l
a
n
u
n
a
s
a
d
e
t
r
o
p
e
r
e
r
a
p
u
o
r
G
e
h
t
f
o
s
n
o
i
t
a
r
e
p
o
e
h
t
d
n
a
6
1
B
S
A
A
r
o
f
t
c
a
p
m
i
x
a
t
e
h
T
*
*
n
o
i
t
a
s
i
t
r
o
m
a
d
n
a
n
o
i
t
a
i
c
e
r
p
e
d
,
x
a
t
e
m
o
c
n
i
,
t
s
e
r
e
t
n
i
t
e
n
e
r
o
f
e
b
t
i
f
o
r
p
s
i
A
D
T
I
B
E
*
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
9
5
d
e
t
a
t
s
e
R
d
e
t
a
c
o
l
l
a
n
U
y
l
l
a
u
d
i
v
i
d
n
I
l
a
t
o
T
o
b
d
e
r
h
T
d
n
a
s
l
e
t
o
H
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
d
e
t
a
d
i
l
o
s
n
o
C
x
a
t
d
n
a
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
s
t
n
e
m
g
e
s
e
t
a
r
o
p
r
o
C
y
t
r
e
p
o
r
P
t
r
o
s
e
R
e
n
p
A
l
i
0
0
0
’
$
s
t
r
o
s
e
R
0
0
0
’
$
y
n
a
m
r
e
G
0
0
0
’
$
d
n
a
a
i
l
a
r
t
s
u
A
d
n
a
l
a
e
Z
w
e
N
9
6
3
8
8
8
1
4
,
4
6
6
8
8
9
,
,
1
2
9
0
3
0
1
,
)
7
4
7
(
5
1
6
4
2
2
,
8
6
8
3
2
2
,
)
5
5
6
6
9
1
(
,
9
6
3
)
2
4
1
3
6
(
,
)
9
2
9
5
3
(
,
)
2
8
8
2
3
(
,
5
5
4
1
1
,
)
2
4
4
8
6
(
,
)
7
8
9
6
5
(
,
,
3
5
5
1
0
7
1
,
9
9
2
8
1
,
0
1
1
3
6
,
9
0
9
8
4
8
,
,
1
7
8
1
3
6
2
,
4
9
0
9
,
8
7
2
2
6
7
,
3
6
0
7
3
9
,
,
5
3
4
8
0
7
1
,
–
8
1
9
6
3
7
8
3
–
8
1
8
1
–
–
8
1
9
6
3
)
8
9
4
8
(
,
)
1
1
1
8
(
,
)
2
8
6
8
(
,
)
3
9
7
6
1
(
,
–
–
3
9
8
6
5
,
0
1
1
,
3
6
3
0
0
0
2
1
,
–
0
0
3
2
2
5
,
4
9
0
9
,
4
9
3
1
3
5
,
7
2
2
2
3
1
,
–
–
–
0
3
7
2
,
0
3
7
2
,
–
–
–
–
)
7
0
8
9
(
,
)
7
0
8
9
(
,
)
2
4
1
3
6
(
,
)
9
4
9
2
7
(
,
7
3
1
0
2
,
)
9
4
9
2
7
(
,
)
2
1
8
2
5
(
,
–
–
–
–
–
–
–
–
–
–
–
0
4
1
9
3
,
4
6
6
8
8
9
,
,
4
0
8
7
2
0
1
,
)
7
4
7
(
4
0
4
4
3
2
,
7
5
6
3
3
2
,
)
5
5
6
6
9
1
(
,
–
–
2
0
0
7
3
,
)
4
8
3
4
2
(
,
–
8
1
6
2
1
,
8
1
6
2
1
,
,
0
6
6
4
4
6
1
,
–
9
9
2
8
1
,
9
0
9
,
8
4
8
,
8
6
8
1
1
5
2
,
–
8
7
9
9
3
2
,
3
6
0
,
7
3
9
,
1
4
0
7
7
1
1
,
7
2
2
,
2
3
1
–
–
8
6
4
8
6
4
–
–
–
–
)
7
0
8
4
1
(
,
)
4
2
3
2
(
,
)
7
0
8
4
1
(
,
)
1
3
1
7
1
(
,
–
)
1
3
1
7
1
(
,
)
1
3
1
7
1
(
,
–
–
–
–
–
–
–
–
–
–
–
–
7
6
4
8
1
,
–
6
0
6
1
,
8
0
3
2
7
,
–
6
3
2
2
1
,
7
3
3
5
6
2
,
–
4
4
8
3
,
0
0
9
2
4
2
,
–
6
8
9
0
2
,
2
5
6
9
8
3
,
7
6
4
8
1
,
4
1
9
3
7
,
3
7
5
7
7
2
,
4
4
7
6
4
2
,
8
3
6
0
1
4
,
–
2
4
1
9
,
2
4
1
9
,
)
8
8
7
2
(
,
–
4
5
3
6
,
–
–
–
4
5
3
6
,
4
5
3
6
,
–
5
6
8
4
2
,
5
6
8
4
2
,
)
6
1
9
3
(
,
–
9
4
9
0
2
,
–
–
–
9
4
9
0
2
,
9
4
9
0
2
,
–
–
–
–
–
–
7
8
3
1
4
3
,
1
1
5
2
7
,
)
4
3
1
(
9
7
0
5
6
,
5
4
9
4
6
,
)
7
1
2
1
3
(
,
–
–
8
2
7
3
3
,
)
4
5
8
1
(
,
–
4
7
8
1
3
,
4
7
8
1
3
,
–
4
0
5
9
,
7
2
2
0
5
,
5
9
5
5
2
7
,
–
6
1
1
3
0
4
6
4
,
9
1
5
6
4
,
)
3
7
1
5
6
(
,
–
)
6
7
1
2
(
,
)
4
5
6
8
1
(
,
–
)
9
2
7
(
2
2
7
3
0
1
,
3
9
9
2
0
1
,
)
7
3
2
1
9
(
,
–
6
5
7
1
1
,
)
4
5
3
0
2
(
,
–
–
)
0
3
8
0
2
(
,
)
8
9
5
8
(
,
)
0
3
8
0
2
(
,
)
8
9
5
8
(
,
–
0
0
3
2
,
0
4
1
5
3
1
,
1
6
4
4
4
2
,
–
5
9
4
6
,
7
2
0
0
7
3
,
1
2
2
4
5
5
,
7
8
3
1
4
3
,
1
1
5
2
7
,
6
2
3
5
8
7
,
1
0
9
1
8
3
,
3
4
7
0
3
9
,
e
s
n
e
p
x
e
x
a
t
e
m
o
c
n
i
d
n
a
t
s
e
r
e
t
n
i
e
r
o
f
e
b
)
s
s
o
l
(
/
t
i
f
o
r
P
s
e
e
t
s
e
v
n
i
d
e
t
n
u
o
c
c
a
y
t
i
u
q
e
f
o
t
i
f
o
r
p
t
e
N
n
o
i
t
a
s
i
t
r
o
m
a
d
n
a
n
o
i
t
a
i
c
e
r
p
e
D
e
g
r
a
h
c
t
n
e
m
r
i
a
p
m
I
*
A
D
T
I
B
E
e
s
n
e
p
x
e
x
a
t
e
m
o
c
n
i
e
r
o
f
e
b
)
s
s
o
l
(
/
t
i
f
o
r
P
)
e
s
n
e
p
x
e
(
/
t
i
d
e
r
c
x
a
t
e
m
o
c
n
I
e
u
n
e
v
e
r
e
c
n
a
n
F
i
s
t
s
o
c
e
c
n
a
n
F
i
t
i
f
o
r
p
t
e
N
s
t
e
s
s
A
)
s
t
e
s
s
a
e
s
u
f
o
-
t
h
g
i
r
g
n
d
u
l
c
x
e
(
i
s
t
e
s
s
a
t
n
e
m
g
e
s
e
b
a
t
r
o
p
e
R
l
s
t
n
e
m
t
s
e
v
n
i
d
e
t
n
u
o
c
c
a
y
t
i
u
q
E
s
t
e
s
s
a
x
a
t
d
e
r
r
e
f
e
D
s
t
e
s
s
a
e
s
u
-
f
o
-
t
h
g
R
i
s
t
e
s
s
a
l
a
t
o
T
s
e
i
t
i
l
i
b
a
i
L
e
m
o
c
n
i
r
e
h
t
o
d
n
a
e
u
n
e
v
e
R
e
u
n
e
v
e
r
t
n
e
m
g
e
s
l
a
n
r
e
t
x
E
l
a
n
r
e
t
x
e
–
e
m
o
c
n
i
r
e
h
t
O
d
e
t
a
t
s
e
r
–
0
2
0
2
e
n
u
J
0
3
e
u
n
e
v
e
r
e
c
n
a
n
F
i
e
m
o
c
n
i
r
e
h
t
o
d
n
a
e
u
n
e
v
e
R
t
l
u
s
e
r
t
n
e
m
g
e
S
t
l
u
s
e
R
–
–
–
–
–
–
1
0
1
4
3
,
1
0
1
4
3
,
–
1
4
5
7
3
,
5
2
1
4
5
,
6
6
6
1
9
,
–
6
0
5
6
5
,
8
8
3
6
4
2
,
–
0
3
8
1
1
1
,
0
5
5
6
3
6
,
4
9
8
2
0
3
,
0
8
3
8
4
7
,
)
s
e
i
t
i
l
i
b
a
i
l
e
s
a
e
l
i
g
n
d
u
l
c
x
e
(
s
e
i
t
i
l
i
b
a
i
l
t
n
e
m
g
e
s
e
b
a
t
r
o
p
e
R
l
s
e
i
t
i
l
i
b
a
i
l
x
a
t
d
e
r
r
e
f
e
D
s
e
i
t
i
l
i
b
a
i
l
e
s
a
e
L
s
e
i
t
i
l
i
b
a
i
L
l
a
t
o
T
6
3
3
3
,
6
3
0
8
2
,
3
8
3
7
2
,
3
7
5
4
,
9
9
8
8
6
,
s
t
e
s
s
a
t
n
e
r
r
u
c
-
n
o
n
f
o
n
o
i
t
i
s
i
u
q
c
A
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
R
A
E
Y
E
H
T
R
O
F
E
C
N
A
M
R
O
F
R
E
P
–
2
N
O
I
T
C
E
S
G
N
I
T
R
O
P
E
R
T
N
E
M
G
E
S
–
2
.
2
i
t
n
e
m
n
a
t
r
e
t
n
E
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
0
6
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
R
A
E
Y
E
H
T
R
O
F
E
C
N
A
M
R
O
F
R
E
P
–
2
N
O
I
T
C
E
S
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
d
e
t
a
t
s
e
R
d
e
t
a
d
i
l
o
s
n
o
C
t
a
c
o
l
l
a
n
U
x
a
t
d
n
a
d
e
y
l
l
a
u
d
i
v
i
d
n
I
l
a
t
o
T
s
m
e
t
i
t
n
a
c
i
f
i
n
g
i
s
s
t
n
e
m
g
e
s
e
t
a
r
o
p
r
o
C
0
0
0
’
$
y
t
r
e
p
o
r
P
t
r
o
s
e
R
0
0
0
’
$
i
e
n
p
A
l
o
b
d
e
r
h
T
6
4
7
6
8
,
8
6
8
3
2
2
,
)
2
2
1
7
3
1
(
,
9
8
4
)
6
8
8
(
2
2
1
7
3
1
,
)
3
8
3
4
2
(
,
)
4
1
1
4
1
1
(
,
–
8
1
8
1
–
–
–
–
–
–
)
7
0
8
9
(
,
)
7
0
8
9
(
,
5
3
5
6
9
,
7
5
6
3
3
2
,
)
2
2
1
7
3
1
(
,
–
)
7
0
8
4
1
(
,
)
7
0
8
4
1
(
,
–
2
4
1
9
,
2
4
1
9
,
–
5
6
8
4
2
,
5
6
8
4
2
,
–
–
–
–
–
9
8
4
)
6
8
8
(
2
2
1
,
7
3
1
)
3
8
3
4
2
(
,
)
4
1
1
4
1
1
(
,
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0
0
0
’
$
s
t
r
o
s
e
R
d
n
a
s
l
e
t
o
H
0
0
0
’
$
y
n
a
m
r
e
G
0
0
0
’
$
d
n
a
a
i
l
a
r
t
s
u
A
d
n
a
l
a
e
Z
w
e
N
i
t
n
e
m
n
a
t
r
e
t
n
E
5
4
9
4
6
,
)
3
2
9
3
(
,
2
2
0
1
6
,
3
2
9
3
,
)
9
9
7
,
2
(
)
4
5
8
,
1
(
3
1
2
)
7
1
5
(
9
1
5
6
4
,
)
5
3
9
4
5
(
,
)
6
1
4
8
(
,
3
9
9
2
0
1
,
)
4
6
2
8
7
(
,
9
2
7
4
2
,
5
3
9
4
5
,
)
6
7
1
2
(
,
)
7
7
4
3
5
(
,
8
9
2
)
0
2
4
(
1
5
)
2
2
(
4
6
2
8
7
,
)
8
3
8
7
5
(
,
)
3
5
3
0
2
(
,
s
e
s
a
e
L
6
1
B
S
A
A
s
t
n
e
m
j
t
s
u
d
a
f
o
n
o
i
t
a
i
l
i
c
n
o
c
e
R
i
*
)
s
e
s
a
e
L
6
1
B
S
A
A
g
n
d
u
l
c
n
i
(
A
D
T
I
B
E
d
e
t
r
o
p
e
R
d
e
t
a
t
s
e
R
–
0
2
0
2
e
n
u
J
0
3
s
t
s
o
c
y
c
n
a
p
u
c
c
O
:
s
s
e
L
G
N
I
T
R
O
P
E
R
T
N
E
M
G
E
S
–
2
.
2
i
*
)
s
e
s
a
e
L
6
1
B
S
A
A
g
n
d
u
l
c
x
e
(
A
D
T
I
B
E
d
e
t
s
u
d
A
j
s
e
s
a
e
L
6
1
B
S
A
A
m
o
r
f
g
n
i
s
i
r
a
s
t
c
a
p
m
i
t
l
u
s
e
R
s
t
s
o
c
y
c
n
a
p
u
c
c
O
n
o
i
t
a
s
i
t
r
o
m
A
s
t
s
o
c
e
c
n
a
n
F
i
*
*
t
i
d
e
r
c
x
a
t
e
m
o
c
n
I
.
t
c
a
p
m
i
d
e
t
a
c
o
l
l
a
n
u
n
a
s
a
d
e
t
r
o
p
e
r
e
r
a
p
u
o
r
G
e
h
t
f
o
s
n
o
i
t
a
r
e
p
o
e
h
t
d
n
a
6
1
B
S
A
A
r
o
f
t
c
a
p
m
i
x
a
t
e
h
T
*
*
n
o
i
t
a
s
i
t
r
o
m
a
d
n
a
n
o
i
t
a
i
c
e
r
p
e
d
,
x
a
t
e
m
o
c
n
i
,
t
s
e
r
e
t
n
i
t
e
n
e
r
o
f
e
b
t
i
f
o
r
p
s
i
A
D
T
I
B
E
*
n
o
i
t
a
m
r
o
f
n
I
c
i
h
p
a
r
g
o
e
G
.
n
o
i
t
a
c
o
l
c
i
h
p
a
r
g
o
e
g
y
b
s
i
s
y
l
a
n
a
t
n
e
m
g
e
s
a
s
i
l
w
o
e
b
n
o
i
t
a
m
r
o
f
n
i
e
h
T
l
a
t
o
T
0
0
0
’
$
0
0
0
’
$
d
e
t
a
d
i
l
o
s
n
o
C
y
n
a
m
r
e
G
0
0
0
’
$
w
e
N
d
n
a
l
a
e
Z
d
e
t
a
t
s
e
R
–
0
2
0
2
e
n
u
J
0
3
l
a
t
o
T
0
0
0
’
$
0
0
0
’
$
0
0
0
’
$
a
i
l
a
r
t
s
u
A
d
e
t
a
d
i
l
o
s
n
o
C
y
n
a
m
r
e
G
0
0
0
’
$
w
e
N
d
n
a
l
a
e
Z
0
0
0
’
$
a
i
l
a
r
t
s
u
A
1
2
0
2
e
n
u
J
0
3
4
6
6
8
8
9
,
0
0
9
2
4
2
,
3
9
7
7
0
1
,
1
7
9
7
3
6
,
2
2
5
3
3
5
,
5
0
1
1
3
,
8
0
5
0
8
,
9
0
9
1
2
4
,
e
u
n
e
v
e
r
t
n
e
m
g
e
s
l
a
n
r
e
t
x
E
9
9
2
8
1
,
9
0
9
8
4
8
,
,
0
6
7
4
4
6
1
,
,
8
6
8
1
1
5
2
,
0
0
3
2
,
1
5
2
5
3
1
,
0
5
3
4
4
2
,
1
0
9
1
8
3
,
4
0
5
9
,
4
2
0
9
2
2
,
3
4
1
7
2
1
,
1
7
6
5
6
3
,
5
9
4
6
,
6
1
4
7
7
4
,
5
4
9
3
1
,
1
4
5
8
0
9
,
,
5
8
3
0
8
2
1
,
,
4
7
1
7
5
6
1
,
,
6
9
2
4
6
7
1
,
,
0
6
6
9
7
5
2
,
4
1
1
4
,
0
1
2
5
8
1
,
3
1
3
3
6
2
,
7
3
6
2
5
4
,
1
5
2
4
,
5
8
9
2
2
2
,
4
1
8
0
4
1
,
0
5
0
8
6
3
,
0
8
5
5
,
4
1
4
4
0
5
,
,
9
7
9
8
4
2
1
,
,
3
7
9
8
5
7
1
,
7
2
2
2
3
1
,
3
7
5
4
,
8
6
4
2
4
,
6
8
1
5
8
,
7
5
4
1
4
,
1
9
0
6
4
3
1
,
6
0
9
7
2
,
t
r
o
p
e
R
s
t
n
e
m
t
s
e
v
n
i
d
e
t
n
u
o
c
c
a
y
t
i
u
q
E
s
t
e
s
s
a
t
n
e
m
g
e
s
e
b
a
t
r
o
p
e
R
l
s
t
e
s
s
a
e
s
u
-
f
o
-
t
h
g
R
i
s
t
e
s
s
a
l
a
t
o
T
s
t
e
s
s
a
t
n
e
r
r
u
c
-
n
o
n
f
o
n
o
i
t
i
s
i
u
q
c
A
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
1
6
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 2 – P E R F O R M A N C E F O R T H E Y E A R
2.3 – INDIVIDUALLY SIGNIFICANT ITEMS
Individually significant items comprised the following:
Profit on sale of properties
Reversal of impairment charges booked in previous years
Impairment charges
Write-off of assets
Restructure costs, redundancies and staff retention costs arising as a result of COVID-19
Hotel and cinema pre-opening costs
Legal and other costs associated with the sale of a business segment
Other expenses (net of income items)
Individually significant items expense before income tax
Income tax benefit
Individually significant items (expense)/income after income tax
2.4 – TAXATION
2021
$’000
Restated
2020
$’000
35,205
3,997
(9,920)
–
(5,895)
–
(4,683)
(4,794)
13,910
(2,136)
11,774
–
2,219
(56,910)
(6,232)
(6,723)
(592)
(2,263)
(2,448)
(72,949)
20,137
(52,812)
Accounting policy
Income tax expense in the Income Statement for the periods presented comprises current and deferred tax. Income tax is
recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or
in other comprehensive income.
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the
balance sheet date, and any adjustment to tax payable in respect of previous years.
The Company and its Australian wholly-owned subsidiaries are part of a tax consolidated group. As a consequence, all members
of the tax consolidated group are taxed as a single entity. EVENT Hospitality & Entertainment Limited is the head entity within the
tax consolidated group.
Deferred tax
Deferred tax arises due to certain temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and those for taxation purposes. The following temporary differences are not provided for:
o
o
taxable temporary differences on the initial recognition of goodwill;
the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business
combination; and
o differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable
future.
Deferred tax assets and liabilities are disclosed net to the extent that they relate to taxes levied by the same authority and the
Group has the right of set off.
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of
assets and liabilities. A deferred tax asset is recognised only to the extent that it is probable that sufficient taxable profit will be
available to utilise the temporary difference.
The Group has unrecognised deferred tax assets in respect of certain foreign tax revenue losses as disclosed on page 63. The
utilisation of the tax revenue losses is dependent upon the generation of sufficient future taxable profits within the applicable
foreign tax entities and a deferred tax asset is only recognised to the extent that it is supported by sufficient forecast taxable
profits. Assumptions regarding the generation of future taxable profits relevant to those foreign tax entities have been based upon
management’s budget estimates and forecasts. Management considers that the forecast of taxable profits for the applicable
foreign tax entities is subject to risk and uncertainty; hence, the Group has not recognised all of the losses as a deferred tax asset.
62 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 2 – P E R F O R M A N C E F O R T H E Y E A R
2.4 – TAXATION (continued)
Income tax credit/(expense)
The major components of income tax credit/(expense) are:
Current income tax
Current income tax credit/(expense)
Income tax adjustment from the prior year
Deferred income tax
Relating to origination and reversal of temporary differences
Income tax credit reported in the Income Statement
Income tax (expense)/ credit reported in equity
Reconciliation between income tax expense and pre-tax loss
Accounting loss before income tax expense
Prima facie income tax credit at the income tax rate of 30% (2020: 30%)
Increase in income tax expense due to:
Impairment write-down
Non-deductible items and losses
Gain/(loss) on disposal of non-depreciable properties
Restatement of depreciation relating to New Zealand assets
Other
Income tax (under)/over provided in the prior year
Total income tax credit
Unrecognised deferred tax assets
Revenue losses – foreign
2021
$’000
Restated
2020
$’000
30,125
(757)
(14,376)
14,992
(1,135)
(579)
47
11,987
11,455
28,609
(63,028)
(68,442)
18,908
–
(11,950)
3,049
9,057
(3,315)
(757)
14,992
20,533
(3,583)
(6,043)
3,173
–
(2,672)
47
11,455
20,339
7,696
Included in the deferred tax assets not recognised is the gross value of corporate tax and trade tax losses arising in Germany of
$67,797,000 (2020: $25,654,000). The availability of these tax losses is subject to certain utilisation limits and ongoing availability tests
under German tax law. At 30 June 2021, there was no recognised deferred income tax liability (2020: $nil) for taxes that would be
payable on the unremitted earnings of certain of the Group’s subsidiaries, associates or incorporated joint ventures.
63 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 2 – P E R F O R M A N C E F O R T H E Y E A R
2.4 – TAXATION (continued)
Deferred tax liabilities comprise:
Right-of-use assets
Property, plant and equipment and intangible assets
Accrued revenue
Sundry items
Less: offsetting deferred tax assets
Deferred tax assets comprise:
Lease liabilities
Property, plant and equipment and intangible assets
Share of joint venture entity timing differences
Provisions and accrued employee benefits
Deferred revenue
Tax losses
Sundry items
Less: offsetting deferred tax liabilities
Statement of Financial
Position
Income
Statement
2021
$’000
265,047
39,487
4,651
2,269
311,454
(311,454)
–
295,798
3,117
17,007
13,451
5,420
12,734
3,203
350,730
(311,454)
39,276
Restated
2020
$’000
270,544
38,561
7,265
1,314
317,684
(308,590)
9,094
280,666
10,905
14,322
12,360
10,263
12,678
30,506
371,700
(308,590)
63,110
2021
$’000
5,497
(7,037)
2,524
(960)
Restated
2020
$’000
1,040
(15,243)
2,779
(13)
15,132
(1,640)
2,685
1,024
(4,952)
387
(27,036)
14,597
(5,395)
(2,762)
(1,875)
(1,313)
(6,703)
2,901
Deferred tax credit/(expense)
(14,376)
11,987
64 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 2 – P E R F O R M A N C E F O R T H E Y E A R
2.5 – EARNINGS PER SHARE
Basic earnings per share (“EPS”) is calculated by dividing the (loss)/profit attributable to members of the Company by the weighted
average number of ordinary shares of the Company.
Diluted EPS adjusts the figures used in the determination of basic EPS to take into account the after-income tax effect of interest
and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to
have been issued for no consideration in relation to dilutive potential ordinary shares.
2021
$’000
Restated
2020
$’000
Loss attributable to ordinary shareholders (basic and diluted)
(48,036)
(56,987)
Weighted average number of ordinary shares (basic)
Effect of performance shares and performance rights
Weighted average number of ordinary shares (diluted)
Number
Number
161,195,521
886,736
162,082,257
161,062,083
857,639
161,919,722
Further details in relation to the Executive Performance Rights Plan and Executive Performance Share Plan are provided in Note 6.1.
65 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
This section shows the assets used to generate the Group’s trading performance and the liabilities incurred as a
result. Liabilities relating to the Group’s financing activities are addressed in section 4. Deferred tax assets and
liabilities are shown in Note 2.5.
On the following pages, there are sections covering working capital balances, property, plant and equipment,
investment properties, intangible assets and provisions.
3.1 – TRADE AND OTHER RECEIVABLES
Trade and other receivables are recognised initially at fair value, and subsequently at the amounts considered recoverable
(amortised cost). Where the payment terms for the sale of an asset are deferred, the receivable is discounted using the prevailing
rate for a similar instrument of an issuer with similar credit terms. The unwinding of the discount is treated as finance revenue.
Trade receivables are non-interest bearing and are generally on 30 to 90 day terms. The Group’s exposure to credit and foreign
exchange risks related to trade and other receivables is disclosed in Note 4.5.
Estimates are used in determining the level of receivables that will not be collected, and these estimates take into account factors
such as historical experience. Allowances are made for impairment losses when there is sufficient evidence that the Group will not
be able to collect all amounts due. These allowances are made until such time that the Group is satisfied that no recovery of the
amount owing is possible; at that point, the amount considered irrecoverable is written off against the asset directly. The carrying
value of trade and other receivables is considered to approximate fair value. Receivables are stated with the amount of goods and
services tax (“GST”) or equivalent tax included.
Current
Trade receivables
Less: allowance for trade receivables
Other receivables
Non-current
Other receivables
Receivable from associates
2021
$’000
13,324
(1,354)
11,970
86,830
98,800
672
–
672
Restated
2020
$’000
17,420
(2,370)
15,050
40,973
56,023
500
43
543
As at 30 June 2021, trade receivables with a value of $1,354,000 (2020: $2,278,000) were impaired and fully provided for.
The movement in the allowance for trade receivables has been included in other expenses within the income statement. The
Group has assessed its expected potential credit losses on an individual trade receivable basis and has applied judgement using
management experience and customer interactions.
As at 30 June 2021, trade receivables for the Group that were past due but not impaired were $2,531,000 (2020: $1,990,000), of
which $1,361,000 (2020: $551,000) was less than 30 days overdue. The remainder is not considered material and consequently an
ageing analysis has not been provided.
Current other receivables of $86,830,000 (2020: $40,973,000) do not contain impaired assets and are not past due. Based on the
credit history of these other receivables, it is expected that these amounts will be recovered when due.
66 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.2 – INVENTORIES
Inventories are measured at the lower of cost and net realisable value. Work in progress is valued at cost. Cost is based on the
first-in-first-out principle and includes expenditure incurred in bringing inventories to their existing condition and location.
3.3 – PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment
Property, plant and equipment are the physical assets used by the Group to generate revenue and profit. These assets include
land and buildings, and plant and equipment. Property, plant and equipment are recognised at cost (which is the amount initially
paid for them) less accumulated depreciation (the estimate of annual wear and tear) and impairment losses.
The Group leases properties in the normal course of business, principally to conduct its cinema exhibition businesses. On inception
of a lease, the estimated cost of decommissioning any additions to these properties (known as leasehold improvements) is
included within property, plant and equipment and depreciated over the lease term. A corresponding provision is set up as
disclosed in Note 3.8.
Where parts of an item of property, plant and equipment have different useful lives, they are accounted for separately.
Depreciation is charged to the Income Statement on a straight-line basis over the asset’s estimated useful life. The major categories
of property, plant and equipment are depreciated as follows:
• plant and equipment
• buildings and improvements subject to long term leases
•
• resort apartments and share of common property
freehold buildings
3 – 20 years
Shorter of estimated useful life and term of lease
40 – 80 years
40 – 80 years.
Freehold land and land subject to long term leases are not depreciated. Similarly, assets under construction (classified as capital
work in progress) are not depreciated until they come into use, when they are transferred to buildings or plant and equipment as
appropriate.
Impairment of property, plant and equipment
Property, plant and equipment that are subject to depreciation are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. Indicators of impairment may include changes in
technology and business performance.
The process of impairment testing is to estimate the recoverable amount of the assets concerned, and recognise an impairment
loss in the Income Statement whenever the carrying amount of those assets exceeds the recoverable amount.
Impairment testing of property, plant and equipment is performed at an individual hotel or cinema site level, with the exception
of cinema sites within a single geographic location, which are tested as one cash-generating unit. Thredbo is also considered to
be, and has been tested as, one cash-generating unit. Details regarding impairment testing performed at 30 June 2021 are set out
below.
67 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
l
a
t
o
T
0
0
0
’
$
0
0
0
’
$
s
s
e
r
g
o
r
p
n
i
k
r
o
w
l
a
t
i
p
a
C
0
0
0
’
$
d
n
a
t
n
a
P
l
t
n
e
m
p
u
q
e
i
0
0
0
’
$
0
0
0
’
$
y
t
r
e
p
o
r
p
n
o
m
m
o
c
s
e
s
a
e
l
m
r
e
t
f
o
e
r
a
h
s
d
n
a
s
t
n
e
m
t
r
a
p
a
t
r
o
s
e
R
d
n
a
s
g
n
d
i
l
i
u
B
s
t
n
e
m
e
v
o
r
p
m
i
g
n
o
l
o
t
t
c
e
j
b
u
s
,
4
1
0
8
6
3
2
,
,
)
7
1
6
2
3
0
1
(
,
,
7
9
3
5
3
3
1
,
4
1
1
6
,
3
8
2
0
3
,
)
2
4
6
3
(
,
)
2
7
0
4
2
(
,
)
1
0
8
3
7
(
,
7
4
7
3
,
)
5
9
7
2
(
,
)
5
6
4
3
(
,
)
3
7
9
7
1
(
,
,
3
9
7
9
4
2
1
,
,
6
0
2
3
0
3
2
,
,
)
3
1
4
3
5
0
1
(
,
,
3
9
7
9
4
2
1
,
,
2
6
3
6
1
3
2
,
)
0
4
6
3
4
9
(
,
,
2
2
7
2
7
3
1
,
)
3
0
2
1
(
,
2
2
8
4
2
1
,
)
5
8
5
4
1
(
,
)
0
2
3
5
8
(
,
)
7
1
4
0
6
(
,
9
1
2
2
,
)
1
4
8
2
(
,
,
7
9
3
5
3
3
1
,
,
4
1
0
8
6
3
2
,
,
7
9
3
5
3
3
1
,
,
)
7
1
6
2
3
0
1
(
,
7
0
6
4
0
1
,
–
–
1
2
3
5
,
7
0
6
4
0
1
,
)
0
1
1
4
2
(
,
–
–
–
–
)
7
4
(
)
5
4
1
(
6
2
6
5
8
,
6
2
6
5
8
,
–
6
2
6
5
8
,
4
5
0
3
5
,
–
4
5
0
3
5
,
3
2
6
5
8
,
)
3
5
2
3
3
(
,
–
–
–
–
)
7
1
8
(
7
0
6
4
0
1
,
7
0
6
4
0
1
,
–
7
0
6
4
0
1
,
1
1
5
8
4
8
,
9
2
8
1
1
,
0
3
8
2
3
2
,
)
1
8
6
5
1
6
(
,
4
1
1
6
,
8
9
6
5
,
)
6
6
2
3
(
,
)
5
1
5
7
4
(
,
9
7
3
)
2
6
7
(
)
8
8
9
(
)
9
6
8
(
0
5
4
3
0
2
,
2
5
3
7
3
8
,
0
5
4
3
0
2
,
)
2
0
9
3
3
6
(
,
6
9
9
5
4
8
,
9
0
2
7
7
2
,
)
7
8
7
8
6
5
(
,
7
2
4
3
1
,
5
5
0
3
2
,
)
9
4
5
3
(
,
)
1
0
7
6
5
(
,
)
9
8
1
0
2
(
,
3
2
2
)
5
4
6
(
0
3
8
2
3
2
,
1
1
5
8
4
8
,
0
3
8
2
3
2
,
)
1
8
6
5
1
6
(
,
0
3
9
)
1
9
(
9
3
8
–
–
–
–
–
–
–
–
)
2
1
(
7
2
8
0
3
9
7
2
8
)
3
0
1
(
0
3
9
)
8
7
(
2
5
8
–
–
–
–
–
–
)
3
1
(
9
3
8
0
3
9
)
1
9
(
9
3
8
5
5
6
7
5
4
,
3
3
1
3
1
,
6
9
8
2
1
2
,
)
9
5
7
4
4
2
(
,
–
)
7
5
(
0
9
2
7
,
)
3
3
0
2
(
,
)
3
8
9
5
1
(
,
–
–
)
7
2
6
(
9
1
6
4
1
2
,
8
4
3
8
7
4
,
9
1
6
4
1
2
,
)
9
2
7
3
6
2
(
,
2
9
3
5
4
4
,
1
4
5
9
0
2
,
)
1
5
8
5
3
2
(
,
)
9
3
(
7
7
4
4
,
8
7
7
2
2
,
)
5
6
1
6
(
,
)
8
9
9
6
1
(
,
–
)
8
9
6
(
6
9
8
2
1
2
,
5
5
6
7
5
4
,
6
9
8
2
1
2
,
)
9
5
7
4
4
2
(
,
o
t
t
c
e
j
b
u
s
d
n
a
L
s
e
s
a
e
l
m
r
e
t
g
n
o
l
d
n
a
l
l
d
o
h
e
e
r
F
s
g
n
d
i
l
i
u
b
d
n
a
0
0
0
’
$
4
2
3
1
,
–
4
2
3
1
,
–
–
–
–
–
–
–
–
)
4
(
0
2
3
1
,
0
2
3
1
,
–
0
2
3
1
,
8
4
3
1
,
–
8
4
3
1
,
–
–
–
–
–
–
)
4
2
(
4
2
3
1
,
4
2
3
1
,
–
4
2
3
1
,
0
0
0
’
$
7
8
9
4
5
9
,
1
0
9
2
8
7
,
)
6
8
0
2
7
1
(
,
–
–
0
8
4
7
,
)
9
4
7
0
2
(
,
)
1
9
2
0
1
(
,
–
8
6
3
3
,
)
0
2
8
1
(
,
)
8
3
9
6
1
(
,
1
5
9
3
4
7
,
0
3
6
9
9
8
,
1
5
9
3
4
7
,
)
9
7
6
5
5
1
(
,
2
4
6
9
6
9
,
8
1
7
0
3
8
,
)
4
2
9
8
3
1
(
,
4
9
9
2
,
8
1
5
4
,
)
7
9
9
0
1
(
,
)
8
0
6
1
1
(
,
)
3
6
0
4
3
(
,
6
9
9
1
,
)
7
5
6
(
1
0
9
2
8
7
,
7
8
9
4
5
9
,
1
0
9
2
8
7
,
)
6
8
0
2
7
1
(
,
t
r
o
p
e
R
d
n
a
n
o
i
t
a
s
i
t
r
o
m
a
,
n
o
i
t
a
i
c
e
r
p
e
d
d
e
t
a
u
m
u
c
c
A
l
r
a
e
y
e
h
t
i
f
o
g
n
n
n
g
e
b
e
h
t
i
l
t
a
e
c
n
a
a
b
s
s
o
r
G
1
2
0
2
r
a
e
y
e
h
t
i
f
o
g
n
n
n
g
e
b
e
h
t
i
t
a
s
t
n
e
m
r
i
a
p
m
i
e
g
n
a
h
c
x
e
n
g
e
r
o
f
n
i
i
t
n
e
m
e
v
o
m
f
o
t
c
e
f
f
E
1
2
0
2
e
n
u
J
0
3
t
A
n
o
i
t
a
s
i
t
r
o
m
a
d
n
a
n
o
i
t
a
i
c
e
r
p
e
D
l
e
a
s
l
r
o
f
d
e
h
s
t
e
s
s
a
o
t
r
e
f
s
n
a
r
T
k
c
a
b
-
e
t
i
r
w
t
n
e
m
r
i
a
p
m
I
t
n
e
m
r
i
a
p
m
I
n
o
i
t
i
s
i
u
q
c
a
m
o
r
f
s
n
o
i
t
i
d
d
A
s
r
e
f
s
n
a
r
T
s
l
a
s
o
p
s
i
D
d
n
a
n
o
i
t
a
s
i
t
r
o
m
a
,
n
o
i
t
a
i
c
e
r
p
e
d
d
e
t
a
u
m
u
c
c
A
l
r
a
e
y
e
h
t
f
o
d
n
e
e
h
t
l
t
a
e
c
n
a
a
b
s
s
o
r
G
r
a
e
y
e
h
t
f
o
d
n
e
e
h
t
t
a
s
t
n
e
m
r
i
a
p
m
i
r
a
e
y
e
h
t
f
o
d
n
e
e
h
t
t
a
e
c
n
a
a
b
t
e
N
l
d
e
t
a
t
s
e
R
-
0
2
0
2
r
a
e
y
e
h
t
i
f
o
g
n
n
n
g
e
b
e
h
t
i
l
t
a
e
c
n
a
a
b
s
s
o
r
G
d
n
a
n
o
i
t
a
s
i
t
r
o
m
a
,
n
o
i
t
a
i
c
e
r
p
e
d
d
e
t
a
u
m
u
c
c
A
l
r
a
e
y
e
h
t
i
f
o
g
n
n
n
g
e
b
e
h
t
i
t
a
s
t
n
e
m
r
i
a
p
m
i
e
g
n
a
h
c
x
e
n
g
e
r
o
f
n
i
i
t
n
e
m
e
v
o
m
f
o
t
c
e
f
f
E
n
o
i
t
a
s
i
t
r
o
m
a
d
n
a
n
o
i
t
a
i
c
e
r
p
e
D
k
c
a
b
-
e
t
i
r
w
t
n
e
m
r
i
a
p
m
I
t
n
e
m
r
i
a
p
m
I
0
2
0
2
e
n
u
J
0
3
t
A
d
n
a
n
o
i
t
a
s
i
t
r
o
m
a
,
n
o
i
t
a
i
c
e
r
p
e
d
d
e
t
a
u
m
u
c
c
A
l
r
a
e
y
e
h
t
f
o
d
n
e
e
h
t
l
t
a
e
c
n
a
a
b
s
s
o
r
G
r
a
e
y
e
h
t
f
o
d
n
e
e
h
t
t
a
s
t
n
e
m
r
i
a
p
m
i
r
a
e
y
e
h
t
f
o
d
n
e
e
h
t
t
a
e
c
n
a
a
b
t
e
N
l
r
a
e
y
e
h
t
i
f
o
g
n
n
n
g
e
b
e
h
t
i
t
a
e
c
n
a
a
b
t
e
N
l
s
n
o
i
t
i
d
d
A
s
r
e
f
s
n
a
r
T
s
l
a
s
o
p
s
i
D
r
a
e
y
e
h
t
i
f
o
g
n
n
n
g
e
b
e
h
t
i
t
a
e
c
n
a
a
b
t
e
N
l
s
n
o
i
t
i
d
d
A
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
8
6
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
S
E
I
T
I
L
I
B
A
I
L
D
N
A
S
T
E
S
S
A
G
N
I
T
A
R
E
P
O
–
3
N
O
I
T
C
E
S
)
d
e
u
n
i
t
n
o
c
(
T
N
E
M
P
I
U
Q
E
D
N
A
T
N
A
L
P
,
Y
T
R
E
P
O
R
P
–
3
.
3
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.3 – PROPERTY, PLANT AND EQUIPMENT (continued)
Independent valuations of interest in land and buildings
In assessing current values for the Group’s interest in land and buildings and integral plant and equipment, including long term
leasehold land and improvements, the directors have relied in most cases upon independent valuations from registered
qualified valuers or management value in use calculations. Except for investment properties, which are revalued every half
year (refer to Note 3.4), valuations are generally carried out on a progressive three-year cycle. The majority of the Group’s
properties have been subject to an independent valuation at 30 June 2021.
Measurement of fair values
Amounts disclosed below represent the fair value of the Group’s interest in land and buildings, excluding investment
properties, as determined at the time of the most recent independent valuation report. Independent registered qualified
valuers are engaged to perform the valuations. The values are determined based on the highest and best use of each property.
In most cases, the existing use is the highest and best use and values are determined on a going concern basis. For certain
properties, the highest and best use may differ from the current use, and consideration may be given to the development of
such properties at an appropriate time in the future in order to realise the full value of the property.
The fair value disclosure has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used.
Going concern value is based on capitalisation and discounted cash flow methodologies, and significant unobservable inputs
include the forecast net income for each property, and the capitalisation and discount rates used in determining fair value. In
the most recent valuations for June 2021 capitalisation rates utilised ranged from 4.10% to 12.00% and pre-tax discount rates
utilised ranged from 5.61% to 11.75% per annum. For certain sites where the going concern value was not the highest and best
use, fair value was determined using a direct comparison methodology with reference to recent sales of similar properties.
The fair values determined by the independent registered qualified valuers are sensitive to changes in these significant
unobservable inputs. However, overall the fair value of the Group’s interest in land and buildings, excluding investment
properties, is significantly higher than the book value of these interests as noted below.
Valuations of interest in land and buildings, excluding investment properties and
properties classified as held for sale
A summary of recent independent valuations, by year of the last valuation, is set
out as follows:
2021
$’000
Restated
2020
$’000
Existing use is highest and best use
Independent valuation – 2021
– 2020
– 2019
– 2018
Alternate use is highest and best use
Independent valuation – 2021
– 2018
Land and buildings not independently valued
Book value of land and buildings not independently valued
1,686,164
–
–
–
1,686,164
274,577
–
–
138,700
214,000
1,267,403
1,620,103
–
101,969
4,822
1,965,563
231,130
1,953,202
69 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.3 – PROPERTY, PLANT AND EQUIPMENT (continued)
The book value of the above interests at 30 June 2021 was $1,030,447,000 (2020 restated: $1,092,506,000). The written-down
book value of plant and equipment which is deemed integral to land and buildings, has been determined to total approximately
$139,872,000 as at 30 June 2021 (2020 restated: $160,452,000). The above valuations do not take into account the potential
impact of capital gains tax.
Impairment considerations at 30 June 2021
Hotels
Hotel properties are treated as separate cash-generating units and the Group obtained independent valuations as at 30 June
2021 from suitably qualified external valuers for each of the key hotel properties.
The impairment review process at 30 June 2021 included a comparison of the independent valuation at 30 June 2021 to the
carrying value of the hotel cash generating unit. The key parameters used within the Discounted Cash Flow model of the
independent valuations obtained as at 30 June 2021 included discount rates (before capital expenditure and debt service) of
5.93% to 11.75%.
As a result of the above impairment review process, no impairment charges (2020: $34,150,000) were recognised for the year.
For hotels that had been subject to impairments in previous years, the trading performance and recoverable amount were also
reviewed during the year. As a result of the review, impairment charges of $3,747,000 (2020: $2,219,000) were reversed in
respect of impairments booked in previous years.
Entertainment
Cinema sites are treated as separate cash-generating units, with the exception of cinema sites within a single geographic
location, which are tested as one cash-generating unit. The pre COVID-19 trading performance of certain cinema sites and
cash-generating units caused the Group to assess their recoverable amounts at 30 June 2021. In addition, and as a direct result
of COVID-19, impairment review parameters were amended to increase the impairment focus on cinema sites and cash-
generating units.
70 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.3 – PROPERTY, PLANT AND EQUIPMENT (continued)
The impairment review process at 30 June 2021 included the following:
•
the normalised annual earnings for each cinema or cinema cash-generating unit were reviewed by management to
determine the existence, if any, of any underlying current or expected future market or other conditions that could
potentially adversely impact future performance and earnings for the site or cash-generating unit. If an adverse condition
was in existence, the site or cash-generating unit was subject to further impairment testing;
• where no adverse conditions were considered to be present, the normalised earnings before interest, tax, amortisation
and depreciation (“EBITDA”) was multiplied by a factor range of five and seven and the results were used as a conservative
proxy for market valuation purposes; and
a cash flow model (non-discounted) was utilised and applied as an overlay indicator test.
•
For those sites where future adverse market changes were noted or the EBITDA multiple or result from the cash flow model
was below the relevant carrying value, the site or cash-generating unit was subject to further impairment testing.
Where a site or cash generating unit utilises a component of freehold property which is owned by the Group, the impairment
assessment also incorporated the current Independent Valuation at 30 June 2021.
To assess the value in use for impairment testing purposes:
•
estimated future cash flows were discounted to their present value using an appropriate pre-tax discount rate, derived
from the Group’s post-tax weighted average cost of capital of 7.16% to 9.00%;
cash flow forecasts were based primarily on pre COVID-19 budgets or business plans presented to the Event Board which
were then adjusted for COVID-19 and anticipated post COVID-19 impact; and
forecast growth rates (inclusive of an average annual inflation rate) of 2.0%.
•
•
As a result of the above impairment review process, impairment losses totalling $9,920,000 (2020: $20,135,000) were recorded
in respect of 6 cinema cinemas or cash-generating units. The sites that that were subject to an impairment charge are located
in Melbourne (Victoria), Auckland (New Zealand) and four sites in Germany.
Thredbo
The operations at Thredbo are treated as one cash-generating unit. The trading performance of Thredbo during the year ended
30 June 2021 was unfavourably impacted by the visitation restrictions relating to COVID-19.
The impairment review process included a review of the parameters of the independent valuation that was issued at 30 June
2021 together with the expected future normalised earnings of the Thredbo business. The independent valuation parameters
were considered to be consistent with the Group’s forward estimates and assumptions. In addition, the independent valuation
is in excess of the current carrying value by over 250% and, as a result, the Group determined that there was no impairment in
relation to the carrying value of Thredbo.
Security
The following assets, whose carrying values are listed below, are subject to mortgage security to secure the Group’s bank loan
facilities (refer to Note 4.4):
Freehold land and buildings
Freehold land and buildings classified as investment properties
Capital commitments
Capital expenditure commitments contracted but not provided for and payable
71 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
2021
$’000
491,253
6,250
497,503
2021
$’000
3,599
Restated
2020
$’000
239,703
16,750
256,453
2020
$’000
1,382
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.4 – INVESTMENT PROPERTIES
Accounting policy
Investment properties comprise land and buildings which are held for long term rental yields or for capital appreciation or
both, and are not occupied by the Group in the ordinary course of business or for administration purposes. Initially, investment
properties are measured at cost including transaction costs. Subsequent to initial recognition, investment properties are stated
at fair value with any change therein recognised in profit or loss. Property that is being constructed or redeveloped for future
use as an investment property is also measured at fair value (unless a fair value cannot be reliably determined).
When the use of a property changes from owner occupied to investment property, the property is reclassified as an investment
property. Any difference at the date of transfer between the carrying amount of the property immediately prior to transfer
and its fair value is recognised directly to the investment property revaluation reserve if it is an increase and to profit or loss if
it is a decrease. A gain may be recognised to profit on remeasurement only to the extent it reverses a previous impairment loss
on the property. Subsequent transfers from investment property to property, plant and equipment or inventories occur when
there is a change in use of the property, usually evidenced by commencement of redevelopment for own use.
Investment properties are derecognised when they have either been disposed of or when the investment property is
permanently withdrawn from use and no future benefit is expected from its disposal. Any gains or losses on derecognition of
an investment property are recognised in profit or loss in the period of derecognition.
Fair value of investment properties
Investment properties are independently revalued to fair value each reporting period, with any gain or loss arising on
remeasurement being recognised in profit or loss. The fair value of investment property has been categorised as a Level 3 fair
value based on the inputs to the valuation technique used. In assessing the fair value of investment properties, a number of
assumptions are made at the end of each reporting period regarding future cash flows, future property market economic
conditions and other factors including cash flow discount rates, rental capitalisation rates, and recent market transactions for
similar properties.
The carrying amount of investment properties is the fair value of the properties as determined by an independent registered
qualified valuer. The significant unobservable inputs used by the valuer in determining the fair value of the investment
properties held by the Group at 30 June 2021 included capitalisation rates on reversionary rental yields in the range of 5.74%
to 7.27% (2020: 6.00% to 7.25%). Investment properties comprise a number of commercial properties that are leased to third
parties and which are held to derive rental income or capital appreciation or both. Each of the leases for investment properties
contains an initial non-cancellable period of between five and 15 years. Subsequent renewals are negotiated with the lessee.
No contingent rents are charged for these investment properties.
During the year ended 30 June 2021, $7,518,000 (2020: $7,084,000) was recognised as rental income for investment properties
in the Income Statement, with $1,916,000 (2020: $2,029,000) incurred in respect of direct costs, including $720,000 (2020:
$208,000) for repairs and maintenance.
The Group's overall investment property portfolio value has remained relatively stable despite the circumstances of COVID-19.
Valuers have carried out the valuations by applying assumptions regarding the reasonably possible impacts of COVID-19 based
on information available as at 30 June 2021.
Freehold land and buildings
At fair value (Level 3 fair values)
Summary of movements:
Balance at the beginning of the year
Fair value increment/(decrement)
Sale of property during the year
Balance at the end of the year
72 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
2021
$’000
Restated
2020
$’000
64,500
74,550
74,550
6,950
(17,000)
64,500
76,200
(1,650)
–
74,550
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.5 – ASSETS HELD FOR SALE
Accounting policy
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held for sale if it is highly probable that
they will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less cost to sell.
Once classified as held for sale, intangible assets and property, plant and equipment are no longer amortised or depreciated
and any equity accounted investee is no longer equity accounted.
Assets classified as held for sale
A number of non-core properties have been identified for potential sale by the Group and, as at 30 June 2021, the Group had
initiated active marketing campaigns sale in relation to three of the identified properties.
Assets held for sale – carrying amount
2021
$’000
Restated
2020
$’000
17,973
–
The fair value determined by independent registered qualified valuers as at 30 June 2021 in relation to the three properties
was $27.4 million. The fair values are sensitive to changes in these significant unobservable inputs. The significant unobservable
inputs used by the valuer in determining the fair value of the assets held for sale by the Group at 30 June 2021 included
capitalisation rates of 5.25%. For certain sites where the going concern value was not the highest and best use, fair value was
determined using a direct comparison methodology with reference to recent sales of similar properties.
73 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.6 – GOODWILL AND OTHER INTANGIBLE ASSETS
Accounting policy
Goodwill
Goodwill arises from business combinations as described in Note 5.1 and represents the future economic benefits that arise
from assets that are not capable of being individually identified and separately recognised.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortised,
but instead is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the
carrying value may be impaired.
Goodwill is allocated to cash-generating units, and impairment is determined by assessing the recoverable amount of the cash-
generating unit to which the goodwill relates. Where the recoverable amount of the cash-generating unit is less than the
carrying amount, an impairment loss is recognised. An impairment loss recognised in respect of goodwill cannot be reversed.
The carrying amount of goodwill in respect of associates and joint ventures is included in the carrying amount of the investment
in the associate or joint venture.
Construction rights
Construction rights relate to the Group’s ability to develop accommodation in the Thredbo Alpine Resort. Construction rights
are recognised at cost and are derecognised as the rights are either sold or developed. The carrying value of construction rights
is reviewed annually. Any amounts no longer considered recoverable are written off, with the impairment loss recorded in
profit or loss.
Other intangible assets
Other intangible assets, which largely comprise management and leasehold rights and software, are stated at cost less
accumulated amortisation and impairment losses. Management and leasehold rights are amortised over the life of the
agreements, which range from 10 to 20 years, on a straight-line basis. Software for major operating systems is amortised over
a four to five-year period on a straight-line basis.
Impairment
The carrying amounts of the Group’s non-financial assets, other than investment properties (see Note 3.4), are reviewed at
each reporting date to determine whether there is any indication of impairment. Where an indicator of impairment exists, the
Group makes a formal estimate of the asset’s recoverable amount. For goodwill, the recoverable amount is estimated each
year at the same time.
The recoverable amount of assets or cash-generating units is the greater of their fair value less costs to sell, and their value in
use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash-generating
unit. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-
generating unit to which the asset belongs.
Where the carrying amount of an asset or its related cash-generating unit exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount. Impairment losses recognised in respect of cash-
generating units are allocated first to reduce the carrying value of any goodwill allocated to the cash-generating unit, and then
to reduce the carrying amounts of the other assets in the cash-generating unit on a pro-rata basis.
Impairment losses are recognised in profit or loss unless the asset or its cash-generating unit has previously been revalued, in
which case the impairment loss is recognised as a reversal to the extent of the previous revaluation, with any excess recognised
in profit or loss.
An impairment loss in respect of goodwill cannot be reversed. In respect of other assets, impairment losses recognised in prior
periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment
loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised.
74 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.6 – GOODWILL AND OTHER INTANGIBLE ASSETS (continued)
Reconciliations
Summaries of the carrying amount movements of each class of intangible assets between the beginning and end of the year
are set out below:
Goodwill
$’000
Construction
rights
$’000
Liquor
licences
$’000
Management
and leasehold
rights
$’000
Software
$’000
Total
$’000
2021
Gross balance at the beginning of the
year
Accumulated amortisation and
impairment losses at the beginning of
the year
Net balance at the beginning of the
year
Acquisitions and initial contributions
Transfers
Amortisation
Disposals
Net foreign currency differences on
translation of foreign operations
Net balance at the end of the year
Gross balance at the end of the year
Accumulated amortisation and
impairment losses at the end of the
year
Net balance at the end of the year
2020 - Restated
Gross balance at the beginning of the
year
Accumulated amortisation and
impairment losses at the beginning of
the year
Net balance at the beginning of the
year
Acquisitions and initial contributions
Transfers
Amortisation
Impairments
Disposals
Net foreign currency differences on
translation of foreign operations
Net balance at the end of the year
Gross balance at the end of the year
Accumulated
and
impairment losses at the end of the year
Net balance at the end of the year
amortisation
62,928
1,343
196
67,616
8,300
140,383
(653)
62,275
4,555
–
–
–
(250)
66,580
67,233
(653)
–
1,343
–
–
–
–
–
1,343
1,343
–
66,580
1,343
–
196
–
–
–
–
–
196
196
–
196
(37,385)
(3,199)
(41,237)
30,231
729
3,153
(4,429)
–
(77)
29,607
5,101
873
(405)
(1,879)
(15)
99,146
6,157
2,748
(6,308)
(15)
(56)
(383)
3,619
101,345
68,776
8,861
146,409
(39,169)
(5,242)
(45,064)
29,607
3,619
101,345
63,336
1,343
196
62,292
17,438
144,605
–
–
–
(31,604)
(13,012)
(44,616)
63,336
1,343
196
–
–
–
(653)
–
(408)
62,275
62,928
(653)
62,275
–
–
–
–
–
–
1,343
1,343
–
1,343
–
–
–
–
–
–
196
196
–
196
30,688
5,638
–
(3,943)
–
(1,972)
(180)
30,231
4,426
99,989
1,767
790
(1,900)
–
(2)
20
5,101
7,405
790
(5,843)
(653)
(1,974)
(568)
99,146
67,616
8,300
140,383
(37,385)
30,231
(3,199)
5,101
(41,237)
99,146
75 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.6 – GOODWILL AND OTHER INTANGIBLE ASSETS (continued)
Cash generating units containing goodwill have been outlined below:
Cash-generating units containing goodwill
The following units have carrying amounts of goodwill:
Entertainment – Australia and New Zealand
Entertainment – Germany
Hotels – New Zealand
Hotels – Australia
Multiple units without significant goodwill
2021
$’000
43,694
4,066
14,485
3,593
742
66,580
Restated
2020
$’000
43,728
4,205
10,007
3,593
742
62,275
The recoverable value of goodwill has been determined by value in use calculations. This calculation uses cash flow projections
based on operating forecasts and projected results, with cash flows beyond the five-year period being projected using a per
annum growth rate. To assess the value in use for impairment testing purposes:
•
estimated future cash flows were discounted to their present value using an appropriate pre-tax discount rate, derived
from the Group’s post-tax weighted average cost of capital of between 7.16% to 9.00%;
cash flow forecasts were based primarily on post COVID-19 budgets or business plans presented to the Event Board; and
forecast growth rates (inclusive of an average annual inflation rate) of 2.0%.
•
•
As a result of the above impairment review process no impairment losses (2020: $2,625,000) were recorded in respect of
goodwill and management leasehold rights.
3.7 – TRADE AND OTHER PAYABLES
Trade and other payables are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to
initial recognition, these financial liabilities are measured at amortised cost. Trade payables are normally non-interest bearing
and settled within 30 days. Payables are stated with the amount of GST or equivalent tax included.
The carrying value of trade and other payables is considered to approximate fair value.
Trade payables
Other payables and accruals
3.8 – PROVISIONS
2021
$’000
46,422
83,856
130,278
Restated
2020
$’000
32,228
77,265
109,493
Accounting policy
Employee benefits
Provision is made for employee benefits including annual leave and long service leave for employees. The provision is calculated
as the present value of the Group’s net obligation to pay such benefits resulting from the employees’ services provided up to
the reporting date. The provisions due or available to be settled within 12 months have been calculated at undiscounted
amounts based on the remuneration rates the employer expects to pay after the reporting date and includes related on-costs.
76 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.8 – PROVISIONS (continued)
The liability for employees’ benefits to long service leave represents the present value of the estimated future cash outflows
to be made by the employer resulting from employees’ services provided up to the reporting date.
Liabilities for employee benefits which are not due to be settled within 12 months are discounted using the rates attaching to
national government securities at reporting date, which most closely match the terms of maturity of the related liabilities.
In determining the liability for employee benefits, consideration has been given to future increases in wage and salary rates,
and the Group’s experience with staff departures. Related on-costs have also been included in the liability.
Insurance loss contingencies and other claims
The insurance loss contingencies and other claims provision relates to estimated costs to be incurred in respect of various
claims that are expected to be settled within 12 months of the balance date.
Decommissioning of leasehold improvements
A provision for the estimated cost of decommissioning leasehold improvements is made where a legal or constructive
obligation exists.
In determining the provision for decommissioning costs, an assessment is made for each location of the likelihood and amount
of the decommissioning costs to be incurred in the future. The estimated future liability is discounted to a present value, with
the discount amount unwinding over the life of the leasehold asset as a finance cost in profit or loss. The estimated
decommissioning cost recognised as a provision is included as part of the cost of the leasehold improvements at the time of
installation or during the term of the lease, as the liability for decommissioning is reassessed. This amount capitalised is then
depreciated over the life of the asset.
The decommissioning of leasehold improvements provision has been raised in respect of “make-good” obligations under long
term lease contracts for various cinema sites. In determining the provision, an assessment has been made, for each location,
of the likelihood that a decommissioning cost will be incurred in the future and, where applicable, the level of costs to be
incurred. Uncertainty exists in estimating the level of costs to be incurred in the future because of the long term nature of
cinema leases.
Other
Other provisions are recognised in the Statement of Financial Position when the Group has a present legal or constructive
obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and, where appropriate, the risks specific to the liability. The unwinding of the
discount is recognised as a finance cost.
2021
$’000
22,056
75
–
22,131
2,902
17,056
19,958
Restated
2020
$’000
18,822
75
72
18,969
2,695
16,387
19,082
Current
Employee benefits
Insurance loss contingencies and other claims
Onerous contract
Non-current
Employee benefits
Decommissioning of leasehold improvements
77 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.8 – PROVISIONS (continued)
Movements in provisions
Movements in the carrying amounts of each class of provisions, except for employee
benefits, are set out below:
Insurance loss contingencies and other claims
Carrying amount at the beginning of the year
Payments
Provided
Carrying amount at the end of the year
Onerous contract
Carrying amount at the beginning of the year
Utilised
Carrying amount at the end of the year
Decommissioning of leasehold improvements
Carrying amount at the beginning of the year
Provided
Reversed
Net foreign currency differences on translation of foreign operations
Carrying amount at the end of the year
3.9 – COMMITMENTS AND LEASES
Restated
2020
$’000
2021
$’000
75
–
–
75
72
(72)
–
16,387
1,306
(372)
(265)
17,056
75
–
–
75
287
(215)
72
13,742
2,936
(326)
35
16,387
Accounting policy
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if
the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether:
•
the contract involves the use of an identified asset – this may be specified explicitly or implicitly and should be physically
distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive
substitution right, then the asset is not identified;
the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of
use; and
the Group has the right to direct the use of the asset. The Group has this right when it has the decision-making rights that
are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and
for what purpose the asset is used is pre-determined, the Group has the right to direct the use of the asset if either:
o the Group has the right to operate the asset; or
o the Group has designed the asset in a way that pre-determines how and for what purpose it will be used.
•
•
This policy is applied to contracts entered into, or changed, on or after 1 July 2019.
At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the
contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings
in which it is a lessee, the Group has elected not to separate non-lease components and account for the lease and non-lease
components as a single lease component.
78 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.9 – COMMITMENTS AND LEASES (continued)
Accounting for leases – as a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially
measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier
of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use
assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental
borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
•
• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
fixed payments, including in-substance fixed payments;
commencement date;
• amounts expected to be payable under a residual value guarantee; and
•
the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional
renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a
lease unless the Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change
in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount
expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a
purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-
use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets and lease liabilities separately in the statement of financial position.
Short term leases and leases of low-value assets (from 1 July 2019)
The Group has elected not to recognise right-of-use assets and lease liabilities for short term leases of machinery that have a
lease term of 12 months or less and leases of low-value assets, including IT equipment. The Group recognises the lease
payments associated with the leases as an expense on a straight-line basis over the lease term.
Accounting for leases – as a lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and
rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an
operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major
part of the economic life of the asset.
When the Group is an intermediate lessor, it accounts for its interest in the head lease and the sub-lease separately. It assesses
the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference
to the underlying asset. If a head lease is a short term lease to which the Group applies the exemption described above, then
it classifies the sub-lease as an operating lease.
If an arrangement contains lease and non-lease components, the Group applies AASB 15 Revenue to allocate the consideration
in the contract.
79 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.9 – COMMITMENTS AND LEASES (continued)
The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease term
as part of other income.
Joint operation lease arrangements
As disclosed in Note 5.3, the Group is a party to material joint operations in respect of its cinema operations. These are
accounted for on a line-by-line basis. The disclosures set out below include the Group’s share of its right-of-use assets and
lease liabilities that relate to these joint operations.
Right-of-use assets
Balance at 1 July 2020
Additions
Depreciation
Impairment charge
Effect of movement in foreign exchange
Balance at 30 June 2021
Lease liabilities
Maturity analysis – contractual undiscounted cash flows
Less than one year
One to five years
More than five years
Total undiscounted lease liabilities at 30 June 2021
Lease liabilities included in the statement of financial position at 30 June 2021
Current
Non-current
Amounts recognised in the income statement
Interest on lease liabilities
Variable lease payments not included in the measurement of lease liabilities
Property
$’000
848,909
182,267
(108,345)
(7,125)
(7,165)
908,541
$’000
132,962
468,381
605,824
1,207,167
129,869
881,873
1,011,742
2021
$’000
23,280
1,425
No significant expense was recognised in the income statement in respect of short-term leases or leases of low-value assets.
Property leases
The Group leases various properties, including cinema sites, under operating leases. The leases typically run for periods up to
20 years, with varying terms, escalation clauses and renewal or extension options. The head lease in respect of the Thredbo
Village and ski area is for a longer period, being 50 years from 29 June 2007.
The Group sub-leases some of its properties under operating leases (see below).
Variable lease payments based on sales and profit
Some leases provide for additional rent payments that are based on sales or profit that the Group makes at the leased site in
the period. Variable lease payments during the year ended 30 June 2021 were $1,425,000 (2020: $3,398,000).
80 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 3 – O P E R A T I N G A S S E T S A N D L I A B I L I T I E S
3.9 – COMMITMENTS AND LEASES (continued)
Extension options
Some property leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable
contract period. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at
lease commencement whether it is reasonably certain to exercise the extension options. The Group reassesses whether it is
reasonably certain to exercise the options if there is a significant event or significant change in circumstances within its control.
As at 30 June 2021, lease liabilities included $110,305,000 (2020: $99,928,000) of lease liabilities in respect of extension options
that have yet to be exercised by the Group.
Lease not yet commenced to which the lessee is committed
As at 30 June 2021, the Group has entered into agreements for new leases that have yet to commence and in respect of which
lease liabilities have yet to be recognised. The Group’s share of the total undiscounted rent payable under these leases is
$29,408,000 (2020: $29,836,000), over lease terms of between 15 and 20 years.
Other leases
Other leases, including leases of vehicles and equipment, are not material to the Group.
Operating leases – as a lessor
The Group receives rental income from a number of properties, both leased and owned. With the exception of sub-leases
under the Thredbo head lease, leases are for periods ranging between one and 15 years and have varying terms, escalation
clauses and renewal or extension options. There are approximately 700 sub-leases under the Thredbo head lease. Thredbo
sub-leases consist of long term accommodation sub-leases for holiday apartments, chalets and lodges and also retail premises.
Long term accommodation sub-leases are typically for periods mirroring the head lease, which was renewed for a further 50-
year period from 29 June 2007. The Group has classified these leases as operating leases because they do not transfer
substantially all of the risks and rewards incidental to ownership of the assets.
Lease income from lease contracts in which the Group acts as a lessor is set out in Note 2.1.
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received
after the reporting date.
Leases of owned properties
Less than one year
One to five years
More than five years
Sub-leases
Less than one year
One to five years
More than five years
30 June 2021
$’000
13,569
38,312
18,373
70,254
7,677
29,617
227,721
265,015
Finance leases – as a lessor
The Group does not currently have any lease arrangements in which it is the lessor that are classified as finance leases.
3.10 – OTHER LIABILITIES
Other liabilities include contract deposits received in advance and deferred lease incentive balances arising from operating
leases. Refer to Note 3.9 for further details regarding operating lease arrangements.
81 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 4 – C A P I T A L S T R U C T U R E A N D F I N A N C I N G
This section outlines the Group’s capital structure, including how much is raised from shareholders (equity) and
how much is borrowed from financial institutions (debt).
On the following pages, there are sections on the Group’s share capital, dividends, reserves, loans and
borrowings, and financial risk management.
4.1 – SHARE CAPITAL
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised
as a deduction from equity, net of any tax effects. The Company does not have authorised capital or par value in respect of its
issued shares.
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to
the number of and amounts paid on the shares held. On a show of hands, every holder of ordinary shares present at a meeting
in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.
2021
Shares
2020
Shares
2021
$’000
2020
$’000
Share capital
Fully paid ordinary shares
161,195,521
161,195,521
219,126
219,126
Movements in share capital
Balance at the beginning of the year
Performance shares exercised and withdrawn from the trust
Balance at the end of the year
161,195,521
–
161,195,521
160,992,028
203,493
161,195,521
219,126
–
219,126
219,126
–
219,126
Share capital consists of:
Ordinary shares
Tax Exempt Share Plan shares
161,173,953
21,568
161,195,521
161,173,671
21,850
161,195,521
Share buy-back
There is no current on-market buy-back.
Dividend Reinvestment Plan
The Dividend Reinvestment Plan was suspended in August 2010.
Options
Other than the performance rights disclosed in Note 6.1, there were no share options on issue as at 30 June 2021 (2020: nil).
82 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 4 – C A P I T A L S T R U C T U R E A N D F I N A N C I N G
4.1 – SHARE CAPITAL (continued)
Capital management
The Group manages its capital with the objective of maintaining a strong capital base so as to maintain investor, creditor and
market confidence and to have the capacity to take advantage of opportunities that will enhance the existing businesses and
enable future growth and expansion. The Board monitors the return on capital, which the Group defines as operating profit
after income tax divided by shareholders’ equity and long term debt. The Board also monitors the Group’s gearing ratio, being
net debt divided by shareholders’ equity.
It is recognised that the Group operates in business segments in which operating results may be subject to volatility and the
Board continuously reviews the capital structure to ensure sufficient:
•
•
•
surplus funding capacity is available;
funds are available for capital expenditure and to implement longer term business development strategies; and
funds are available to maintain appropriate dividend levels.
There were no changes in the Group’s approach to capital management during the year. No Group entity is subject to externally
imposed capital requirements.
4.2 – DIVIDENDS
To assist the Group’s liquidity during the COVID-19 recovery period, no dividend has been declared in respect of the year ended
30 June 2021. Future dividend payments will be subject to Board consideration and approval having regard to all relevant
circumstances including lender gearing requirements and the Group’s trading performance.
Franking credit balance
The amount of franking credits available for future reporting periods
2021
$’000
2020
$’000
106,055
129,783
The impact on the franking account of dividends proposed or declared before the financial report was authorised for issue but
not recognised as a distribution to equity holders during the period was $nil (2020: $nil). The ability to utilise franking credits
is dependent upon the Company being in a sufficient positive net asset position and also having adequate available cash flow
liquidity.
83 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 4 – C A P I T A L S T R U C T U R E A N D F I N A N C I N G
4.3 – RESERVES
Financial assets revaluation reserve
This reserve includes the cumulative net change in the fair value of investments designated as at FVOCI from 1 July 2020, and
the cumulative net change in the fair value of investments previously classified available-for-sale financial assets. Amounts
are recognised in the Income Statement when the associated assets are sold or impaired.
Investment property revaluation reserve
This reserve relates to property that has been reclassified as an investment property and represents the cumulative increase
in the fair value of the property at the date of reclassification.
Hedging reserve
This reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments
related to hedged transactions that have not yet occurred.
Share-based payments reserve
This reserve includes the cumulative fair value of the executive performance shares and performance rights which have been
recognised as an employee expense in the Income Statement. See Note 6.1 for further details regarding share-based payment
arrangements.
Foreign currency translation reserve
This reserve records the foreign currency differences arising from the translation of foreign operations, the translation of
transactions that hedge the Group’s net investment in a foreign operation or the translation of foreign currency monetary
items forming part of the net investment in a foreign operation and the Group’s share of associates’ increment or decrement
in their foreign currency translation reserve.
Movements in reserves during the year
Financial assets
revaluation
$’000
Investment
property
revaluation
$’000
Hedging
$’000
Share-based
payments
$’000
Foreign
currency
translation
$’000
Total
$’000
At 1 July 2020 - restated
12,536
5,121
Movement in fair value of cash flow hedging
instruments – net of tax
Amount recognised in the Income
Statement as an employee expense
Currency translation adjustment on
controlled entities’ financial statements
−
−
−
−
−
−
At 30 June 2021
12,536
5,121
−
−
−
−
−
34,769
20,680
73,106
−
1,486
−
−
−
1,486
−
(4,350)
(4,350)
36,255
16,330
70,242
84 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 4 – C A P I T A L S T R U C T U R E A N D F I N A N C I N G
4.4 – LOANS, BORROWINGS AND FINANCING ARRANGEMENTS
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less. Bank
overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a
component of cash and cash equivalents for the purpose of the Statement of Cash Flows.
Loans and borrowings
Interest bearing and non-interest bearing loans and borrowings are recognised initially at fair value less attributable transaction
costs. Subsequent to initial recognition, loans and borrowings are stated at amortised cost with any difference between cost
and redemption value being recognised in profit or loss over the period of the borrowings using the effective interest method.
The carrying value of loans and borrowings is considered to approximate fair value.
Finance costs
Finance costs include interest, unwinding of discounts or premiums relating to borrowings, amortisation of ancillary costs
incurred in connection with arrangement of borrowings and lease finance charges. Ancillary costs incurred in connection with
the arrangement of loans and borrowings are capitalised and amortised over the life of the borrowings. Finance costs are
expensed as incurred unless they relate to qualifying assets. Qualifying assets are assets which take more than 12 months to
get ready for their intended use or sale. Where funds are borrowed specifically for the acquisition, construction or production
of a qualifying asset, the amount of borrowing costs capitalised is that incurred in relation to that borrowing, net of any interest
earned on those borrowings. Borrowing costs that are not directly attributable to the acquisition, construction or production
of qualifying assets are recognised in profit or loss using the effective interest method.
Bank debt – secured
The Group’s secured bank debt facilities comprise the following:
•
•
•
$650,000,000 revolving multi-currency loan facility maturing on 3 July 2023;
$43,500,000 non-revolving loan facility maturing on 3 January 2022; and
$2,500,000 credit support facility (for the issue of letters of credit and bank guarantees).
The debt facilities are supported by interlocking guarantees from most Australian and New Zealand domiciled Group entities
and secured by specific property mortgages (refer to Note 3.3). The debt facilities were amended and restated on 3 July 2020
and initially consisted of the $650,000,000 revolving multi-currency loan, a $100,000,000 non-revolving loan facility and
$2,500,000 credit support facility. In relation to the non-revolving loan facility, the Group repaid and cancelled $56,500,000
of that facility during the year.
Debt drawn under the loan facilities bears interest at the relevant inter-bank benchmark reference rate plus a margin of
between 1.75% and 4.35% per annum. As at 30 June 2021, the Group had drawn $476,428,000 (2020: $488,300,000) under
the loan facilities and $1,225,000 under the credit support facility (2020: $1,124,000). Debt facility components subject to
interest rate swaps used for hedging totalled $nil (2020: $nil) at 30 June 2021. The debt facilities replaced a $545,000,000
revolving multi-currency loan facility and a $15,000,000 credit support facility that were in place at 30 June 2020.
Other facilities
A wholly-owned New Zealand domiciled subsidiary has a general security facility in respect of certain bank guarantees issued
in relation to obligations under lease arrangements. The general security facility obligations total NZ$2,784,000
(A$2,591,000) at 30 June 2021.
Certain wholly-owned German domiciled subsidiaries have a secured guarantee facility of €14,000,000 (A$22,910,000) for
the issue of letters of credit and bank guarantee arrangements. The facility was extended during the financial year and expires
on 31 May 2022. The facility is secured against cash held within certain wholly-owned German domiciled subsidiaries.
Guarantees supported under the facility bear interest at 1.15% per annum. At 30 June 2021, the Group had drawn
€12,466,000 (A$19,724,000) under the facility.
85 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 4 – C A P I T A L S T R U C T U R E A N D F I N A N C I N G
4.4 – LOANS, BORROWINGS AND FINANCING ARRANGEMENTS (continued)
Current
Interest bearing loans and borrowings
Bank loans – secured
Non-interest bearing loans and borrowings
Loans from other companies – unsecured
Non-current
Interest bearing loans and borrowings
Bank loans – secured
Deferred financing costs
Non-interest bearing loans and borrowings
Loans from other companies – unsecured
2021
$’000
Restated
2020
$’000
43,500
43,500
1,480
44,980
432,928
(3,081)
429,847
1,363
431,210
488,300
488,300
821
489,121
–
–
–
1,804
1,804
86 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 4 – C A P I T A L S T R U C T U R E A N D F I N A N C I N G
4.5 – FINANCIAL RISK MANAGEMENT
Derivative financial instruments
From time to time, the Group uses derivative financial instruments to hedge its exposure to interest rate and foreign exchange
risks arising from operating activities, investing activities and financing activities. In accordance with its treasury policy, the
Group does not hold or issue derivative financial instruments for trading purposes.
Derivative financial instruments are recognised at fair value within prepayments and other current assets. The gain or loss on
remeasurement to fair value is recognised immediately in profit or loss. However, where derivatives qualify for hedge
accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged.
The fair value of interest rate swaps is the estimated amount that the Group would receive or pay to terminate the swap at
the reporting date, taking into account current interest rates and the creditworthiness of the swap counterparties. The fair
value of forward exchange contracts is their quoted market price at the reporting date, being the present value of the quoted
forward price.
Investments designated as at fair value through other comprehensive income (“FVOCI”)
The Group holds a preference shareholding in Carlton Investments Limited, a company listed on the ASX. The Group has
designated these investments as at FVOCI. All investments are initially recognised at cost, being the fair value of the
consideration given and including acquisition charges associated with the investment. After initial recognition, investments,
which are designated as at FVOCI, are measured at fair value. Investments designated as at FVOCI comprise marketable equity
securities.
For investments that are actively traded in organised financial markets, fair value is determined by reference to securities
exchange quoted market bid prices at the close of business at reporting date.
Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the
investment. Other net gains and losses are recognised in other comprehensive income and are never reclassified to profit or
loss.
Equity investments as at FVOCI
Investment in a listed company
2021
$’000
78
Restated
2020
$’000
78
No reasonably possible change in the share price of this company would have a material effect on the investment balance or
the related revaluation reserve at the reporting date.
87 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 4 – C A P I T A L S T R U C T U R E A N D F I N A N C I N G
4.5 – FINANCIAL RISK MANAGEMENT (continued)
Financial risks
The Group’s exposure to financial risks, objectives, policies and processes for managing the risks including methods used to
measure the risks, and the management of capital are presented below.
The Group’s activities expose it to the following financial risks:
•
•
•
credit risk;
liquidity risk; and
market risk, including interest rate and foreign exchange risks.
The Board has overall responsibility for the oversight of the risk management framework. Risk management policies are
established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks
and adherence to limits. Risk management policies and systems are reviewed regularly and modified as appropriate to reflect
changes in market conditions and the Group’s activities.
The Audit and Risk Committee oversees how management has established and monitors internal compliance and control
systems and to ensure the appropriate and effective management of the above risks. The Audit and Risk Committee is assisted
in its oversight role by the Internal Audit function. The Internal Audit function undertakes reviews of risk management controls
and procedures in accordance with an annual plan approved by the Audit and Risk Committee. The results of these Internal
Audit reviews are reported to the Audit and Risk Committee.
Credit risk
Credit risk arises from trade and other receivables outstanding, cash and cash equivalents, derivative financial instruments and
deposits with banks and financial institutions. It is the risk of financial loss to the Group if a customer or counterparty to the
financial instrument fails to meet its contractual obligations, and arises principally from the Group’s trade receivables.
Information regarding the Group’s trade receivable balances is disclosed in Note 3.1. The Group’s exposure to credit risk is not
considered material.
The Group’s maximum exposure to credit risk at the reporting date was considered to approximate the carrying value of
receivables at the reporting date.
Investments and derivatives
Investments of surplus cash and deposits and derivative financial instruments are with banks with high credit ratings. Given
their high credit ratings, management does not expect any counterparty to fail to meet its obligations.
At 30 June 2021, there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented
by the carrying amount of each financial asset, including derivative financial instruments, in the Statement of Financial Position.
Guarantees
All guarantees are in respect of obligations of subsidiaries, associates, joint ventures or joint operations in which the Group has
an interest, and principally relate to operating lease arrangements. The Group’s operating lease commitments are disclosed in
Note 3.9, and details of guarantees given by the parent entity are provided in Note 7.4.
Security deposits
Security deposits relate to the Group’s operating lease arrangements. Certain lease agreements require an amount to be placed
on deposit, which should then be returned to the Group at the conclusion of the lease term.
88 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 4 – C A P I T A L S T R U C T U R E A N D F I N A N C I N G
4.5 – FINANCIAL RISK MANAGEMENT (continued)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group manages
liquidity risk by continuously monitoring forecast and actual cash flows. The Group’s treasury function aims to maintain
flexibility in funding by maintaining committed credit lines with a number of counterparties.
The Group’s financial liabilities
The contractual maturities of the Group’s financial liabilities, including interest payments and excluding the impact of netting
agreements, are as follows:
Carrying
amount
$’000
Contractual
cash flows
$’000
6 months
or less
$’000
6 to 12
months
$’000
1 to 2
year(s)
$’000
2 to 5
years
$’000
Over 5
years
$’000
2021
Non-derivative financial liabilities
Secured bank loans
476,428
(504,972)
(7,123)
(50,235)
(14,606)
(433,008)
−
Unsecured non-interest bearing loans
from other companies
Trade payables
Other payables and accruals
2,843
46,422
83,856
(2,870)
(46,422)
(83,856)
Lease liabilities
1,011,742
(1,207,167)
(740)
(46,422)
(83,856)
(66,481)
(740)
−
−
(66,481)
(449)
−
−
(122,836)
(320)
−
−
(345,545)
(621)
−
−
(605,824)
Derivative financial liabilities
Forward exchange contracts
2020 – restated
Non-derivative financial liabilities
−
1,621,291
−
(1,845,287)
−
(204,662)
−
(117,456)
−
(137,891)
−
(778,873)
−
(606,445)
Secured bank loans
488,300
(489,195)
(489,195)
−
−
−
−
Unsecured non-interest bearing loans
from other companies
Trade payables
Other payables and accruals
Lease liabilities
Derivative financial liabilities
Forward exchange contracts
2,625
32,228
77,265
(2,625)
(32,228)
(77,265)
937,063
(1,121,519)
(410)
(32,228)
(77,265)
(66,232)
(411)
−
−
(66,232)
(854)
−
−
(118,112)
(628)
−
−
(340,073)
(322)
−
−
(530,870)
−
−
−
−
−
−
−
1,537,481
(1,722,832)
(665,330)
(66,643)
(118,966)
(340,701)
(531,192)
For derivative financial assets and liabilities, maturities detailed in the table above approximate periods that cash flows and
the impact on profit or loss are expected to occur.
89 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 4 – C A P I T A L S T R U C T U R E A N D F I N A N C I N G
4.5 – FINANCIAL RISK MANAGEMENT (continued)
Market risk
Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates, will affect the Group’s
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, whilst optimising the return.
The Group uses derivative financial instruments such as interest rate swaps and forward exchange contracts to hedge
exposures to fluctuations in interest rates and foreign exchange rates. Derivatives are used exclusively for hedging purposes
and are not traded or used as speculative instruments. This is carried out under Board approved treasury policies.
Hedge of net investment in foreign operations
The portion of the gain or loss on an instrument used to hedge a net investment in a foreign operation, that is determined to
be an effective hedge, is recognised in other comprehensive income and presented in equity in the foreign currency translation
reserve. The ineffective portion is recognised immediately in profit or loss.
Interest rate risk
The Group manages interest rate exposures on borrowings in accordance with a Board approved treasury policy that specifies
parameters for hedging including hedging percentages and approved hedging instruments. The policy specifies upper and
lower hedging limits set for specific timeframes out to five years. These limits may be varied with the approval of the Board.
At reporting date, the interest rate profile of the Group’s interest bearing financial instruments was:
Fixed rate instruments
Financial assets
Financial liabilities
Variable rate instruments
Financial assets
Financial liabilities
2021
$’000
Restated
2020
$’000
–
–
–
–
–
–
90,752
(476,428)
(385,676)
55,168
(488,300)
(433,132)
The Group manages interest rate risk in accordance with a Board approved treasury policy covering the types of instruments,
range of protection and duration of instruments. The financial instruments cover interest rate swaps and forward rate
agreements. Maturities of these instruments are up to a maximum of five years. Interest rate swaps and forward rate
agreements allow the Group to raise long term borrowings at floating rates and swap a portion of those borrowings into fixed
rates.
The approved range of interest rate cover is based on the projected debt levels for each currency and reduced for each future
year. There were no interest rate hedges at 30 June 2021 (2020: no interest rate hedges).
The Group classifies interest rate swaps as cash flow hedges and recognises them at fair value in the Statement of Financial
Position.
The Group accounts for fixed rate financial assets and liabilities at fair value. The Group had no fixed rate instruments for the
year ended 30 June 2021 (2020: no fixed rate instruments) and accordingly no sensitivity analysis has been prepared in the
current or prior year.
Foreign exchange risk
The Group is exposed to currency risk on purchases, borrowings and surplus funds that are denominated in a currency other
than the respective functional currencies of Group entities, primarily the Australian dollar (“AUD”), but also the New Zealand
dollar (“NZD”), Euro (“EUR”) and Great British pound (“GBP”). Transactions undertaken by Group entities are primarily
denominated in AUD, NZD, EUR and the US dollar (“USD”).
90 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 4 – C A P I T A L S T R U C T U R E A N D F I N A N C I N G
4.5 – FINANCIAL RISK MANAGEMENT (continued)
The Group manages foreign currency exposures in accordance with a Board approved treasury policy that specifies
parameters for hedging, including hedging percentages and approved hedging instruments. At any point in time, the Group
may hedge up to 60% of “highly probable” foreign currency exposures and 100% of confirmed foreign currency exposures.
Typically, foreign currency exposures are hedged with the utilisation of forward exchange contracts.
The Group’s exposure to foreign currency risk in AUD equivalents at the reporting date was as follows, based on notional
amounts:
Cash and cash equivalents
Trade receivables
Secured bank loans
Trade payables
Gross balance sheet exposure
Forward exchange contracts
Net exposure
NZD
$’000
8,274
135
(94,928)
(2,863)
(89,382)
–
–
(89,382)
2021
EUR
$’000
GBP
$’000
USD
$’000
29
–
–
–
29
–
–
29
305
–
–
–
305
–
–
305
88
–
–
–
88
–
–
88
NZD
$’000
7,684
1,713
(95,300)
(3,460)
(89,363)
–
–
2020 – restated
GBP
$’000
EUR
$’000
USD
$’000
96
–
–
–
476
–
–
–
476
96
–
–
–
–
3,534
–
–
–
3,534
–
–
(89,363)
3,534
476
96
Sensitivity analysis
No reasonably possible change in prevailing foreign exchange rates would have a significant impact on the Income Statement
or hedging reserve in the current or prior year.
Hedging of net investment in foreign subsidiaries
The Group’s NZD denominated bank loan is designated as a hedge of the foreign currency exposure to the Group’s net
investment in its subsidiaries in New Zealand. The carrying amount of the loan at 30 June 2021 was $94,928,000 (2020:
$95,300,000). A foreign exchange gain of $372,000 (2020: gain of $2,412,000) was recognised in equity on translation of the
loan to AUD.
Financial instruments fair value determination method grading
Valuation methods for financial instruments carried at fair value are defined as follows:
•
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
•
Investments designated as at FVOCI are classified as Level 1 financial instruments. Derivative financial instruments are
classified as Level 2 financial instruments.
91 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 5 – G R O U P C O M P O S I T I O N
This section explains the composition of the Group.
On the following pages, there are sections on businesses acquired during the year, a list of subsidiaries, investments
in associates and joint ventures, and disclosures regarding interests in other entities including cinema partnership
interests.
5.1 – BUSINESS COMBINATIONS
Accounting policy
Business combinations are accounted for using the acquisition method as at the date when control is transferred to the Group.
Under the acquisition method, consideration transferred in a business combination is generally measured at fair value, as are
the identifiable net assets acquired. Consideration transferred includes the fair value of any contingent consideration, and share-
based payment awards of the acquiree that are required to be replaced in the business combination.
The Group measures goodwill arising from the business combination at the acquisition date as the fair value of the consideration
transferred, including the recognised amount of any non-controlling interest in the acquiree, less the net recognised amount
(generally fair value) of the identifiable assets acquired and liabilities assumed. Any goodwill that arises is tested annually for
impairment (refer to Note 3.6). If the consideration transferred is lower than the fair value of the net identifiable assets of the
subsidiary acquired, the difference is recognised in profit or loss.
A contingent liability of the acquiree is assumed in a business combination only if the liability represents a present obligation
and arises from past events, and its fair value can be measured.
The Group measures any non-controlling interest at its proportionate interest of the fair value of identifiable net assets of the
acquiree.
Transaction costs incurred by the Group in connection with a business combination, such as due diligence fees, legal fees and
other professional costs, are expensed as incurred.
Business combinations in the year ended 30 June 2021
The Group acquired the following business during the year:
Jucy Snooze Limited
Effective 30 April 2021, Noahs Hotels (N.Z.) Limited (“Noahs”), a wholly owned subsidiary, acquired 100% of Jucy Snooze Limited
(“Snooze”), having previously acquired a 50% interest on 3 February 2020. The net consideration paid for the acquisition of the
remaining 50% interest on 30 April 2021 was NZ$3,718,000 (A$3,460,000), comprised as follows (all amounts in Australian
dollars):
Equity interest in Snooze
Shareholder loan receivable balances acquired
Total consideration for the increase in interest in Snooze to 100%
Adjustments to the purchase price for the initial 50% interest
Net consideration paid on 30 April 2021
Fair value at
acquisition
date
$’000
821
3,533
4,354
(894)
3,460
The adjustments to the purchase price for the initial 50% interest were certain adjustments in Noahs’ favour in respect of working
capital and contingent consideration relating to earnings of a component of Snooze for the year ended 30 June 2020.
AASB 3 Business Combinations requires that the existing interest in Snooze be remeasured to its fair value. The Group determined
that there was no material difference between the equity-accounted book value of its existing interest in Snooze and the fair
value of that interest at 30 April 2021 and on that basis no adjustment has been recorded in this regard.
92 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 5 – G R O U P C O M P O S I T I O N
5.1 – BUSINESS COMBINATIONS (continued)
The Group has provisionally recognised the fair value of the following identifiable assets and liabilities relating to this acquisition
as follows (all amounts in Australian dollars):
Total consideration for the increase in interest in Snooze to 100%
Less: cash acquired
Fair value (book value) of previously held interest in Snooze
Assets and liabilities acquired
Leasehold improvements
Plant and equipment
Software
Capital work in progress
Other assets and liabilities
Total net value of identifiable assets and liabilities acquired
Goodwill
Fair value at
acquisition
date
$’000
4,354
(79)
5,087
9,362
4,079
1,084
255
951
(1,562)
4,807
4,555
The goodwill is attributable to the trading reputation and other intangible assets which are not separately identifiable. Goodwill
recognised is not expected to be deductible for income tax purposes.
The Group incurred direct costs relating to this acquisition of $179,000 which have been expensed in the Income Statement for
the year.
The Income Statement includes revenue and a net loss for the year ended 30 June 2021 of $345,000 and $536,000 respectively
as a result of this acquisition. Had the acquisition occurred at the beginning of the year, it is estimated that the Income Statement
would have included additional revenue and net loss of approximately $1,822,000 and $799,000 respectively.
There were no other material business combinations in the year ended 30 June 2021.
Business combinations in the year ended 30 June 2020
There were no material business combinations in the year ended 30 June 2020.
93 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 5 – G R O U P C O M P O S I T I O N
5.2 – SUBSIDIARIES
Accounting policy
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The
financial statements of subsidiaries are included in the consolidated financial statements from the date on which control
commences until the date on which control ceases.
Intra-Group balances and transactions, and any unrealised gains and losses or income and expenses arising from intra-Group
transactions, are eliminated in preparing the consolidated financial report.
Subsidiaries
Albury Hotel Property Unit Trust
Amalgamated Cinema Holdings Limited
Amalgamated Holdings Superannuation Fund Pty Limited
Ancona Investments Pty Limited
Atura Adelaide Airport Unit Trust
Atura Holdings Pty Limited
Atura Hotels and Resorts Pty Limited
Bay City Cinemas Limited
Birch, Carroll & Coyle Limited
BLN Hotels Property Unit Trust
Bryson Centre Unit Trust
Bryson Hotel Property Unit Trust
Bryson Hotel Pty Limited
Canberra Theatres Limited
CMS Cinema Management Services GmbH & Co. KG
CMS Cinema Verwaltungs GmbH
Edge Digital Cinema Pty Limited
Edge Digital Technology Pty Limited
Edge Investments BV
Elsternwick Properties Pty Limited
Event Cinema Entertainment Pty Limited
Event Cinemas (Australia) Pty Limited
Event Cinemas Limited
Event Cinemas Nominees Limited
Event Cinemas (NZ) Limited
Event Cinemas Queen Street Nominees Limited
Event Hotels and Resorts Pty Limited
Event Hotels (NZ) Limited
EVT Administration Pty Limited
Filmpalast am ZKM Karlsruhe Beteiligungs GmbH
Filmpalast Konstanz Beteiligungs GmbH
First Cinema Management BV
2015 First Holding GmbH
Flaggspelt Vermogensverwaltungsgesellschaft mbH
458 to 468 George Street Development Pty Limited
458 to 468 George Street Development Trust
458 to 468 George Street Holding Pty Limited
458 to 468 George Street Holding Trust
Glenelg Theatres Pty Limited
94 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
Note
(c)
(c)
(a)(e)
(a)(e)
(a)(d)
(c)
(c)
(c)
(c)
(c)
(a)(e)
(a)(e)
(a)(d)
(a)(e)
(a)(e)
Ownership
interest
2021
%
2020
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 5 – G R O U P C O M P O S I T I O N
5.2 – SUBSIDIARIES (continued)
Greater Entertainment Pty Limited
Greater Occasions Australia Pty Limited
Greater Union Betriebsmittel GmbH
Greater Union Filmpalast Cubix in Berlin GmbH
Greater Union Filmpalast Dortmund GmbH & Co. KG
Greater Union Filmpalast GmbH
Greater Union Filmpalast in der Kulturbrauerei Berlin GmbH
Greater Union Filmpalast in Hamburg GmbH
Greater Union Filmpalast Rhein-Main GmbH
Greater Union First Cinema BV and Co. KG
Greater Union International BV
Greater Union International GmbH
Greater Union International Holdings Pty Limited
Greater Union Limited
Greater Union Media & Event GmbH
Greater Union Nominees Pty Limited
Greater Union Real Estate 24 GmbH
Greater Union Real Estate 40 GmbH
Greater Union Real Estate Mainz GmbH
Greater Union Screen Entertainment Pty Limited
Greater Union Theaters Beteiligungs GmbH
Greater Union Theaters Dritte GmbH & Co. KG
Greater Union Theaters Dritte Verwaltungs GmbH
Greater Union Theaters GmbH
Greater Union Theaters Management Mainz GmbH
Greater Union Theaters Verwaltungs GmbH
Greater Union Theaters Zweite GmbH & Co. KG
Greater Union Theaters Zweite Verwaltungs GmbH
Greattheatre Pty Limited
GU Real Estate Mainz Management GmbH
GUO Investments (WA) Pty Limited
Gutace Holdings Pty Limited
Jucy Snooze Limited
Haparanda Pty Limited
Haymarket’s Tivoli Theatres Pty Limited
Kidsports Australia Pty Limited
Kosciuszko Thredbo Pty Limited
KTPL Unit Trust
Kvarken Pty Limited
Lakeside Hotel Property Unit Trust
Lakeside Hotel Pty Limited
Lakeside International Hotel Unit Trust
Mamasa Pty Limited
Multiplex Cinemas Bremen GmbH
Multiplex Cinemas Frankfurt Mainzer Landstraße GmbH
Multiplex Cinemas Gütersloh GmbH
Multiplex Cinemas Magdeburg GmbH
Multiplex Cinemas Oberhausen GmbH
Multiplex Cinemas Remscheid GmbH
Neue Filmpalast GmbH & Co. KG
Neue Filmpalast Management GmbH
NFP Erste GmbH & Co. KG
95 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
Ownership
interest
Note
2021
%
2020
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(d)
(a)(e)
(a)(b)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(f)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
50
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 5 – G R O U P C O M P O S I T I O N
5.2 – SUBSIDIARIES (continued)
NFP Erste Verwaltungs GmbH
Noahs Hotels (NZ) Limited
Noahs Limited
Northside Gardens Hotel Property Unit Trust
Northside Gardens Hotel Pty Limited
Pantami Pty Limited
203 Port Hacking Road Pty Limited
QT Gold Coast Pty Limited
QT Hotels and Resorts Pty Limited
QT Resort Port Douglas Pty Limited
RH Hotels Pty Limited
RQ Motels Pty Limited
Rydges Bankstown Pty Limited
Rydges Cronulla Pty Limited
Rydges Gladstone Hotel Property Unit Trust
Rydges Hobart Hotel Property Unit Trust
Rydges Hobart Hotel Pty Limited
Rydges Hotels Limited
Rydges Hotels Property Unit Trust
Rydges HPT Pty Limited
Rydges Property Holdings Pty Limited
Rydges Rotorua Hotel Limited
Rydges Townsville Hotel Property Unit Trust
Sonata Hotels Pty Limited
Southport Cinemas Pty Limited
Sunshine Cinemas Pty Limited
Tannahill Pty Limited
The Geelong Theatre Company Limited
The Greater Union Organisation Pty Limited
Thredbo Resort Centre Pty Limited
Tourism & Leisure Pty Limited
Vierte Kinoabspielstatten GmbH & Co. KG
Vierte Kinoabspielstatten Verwaltungs GmbH
Western Australia Cinemas Pty Limited
Zollverein Pty Limited
Zweite Kinoabspielstatten GmbH & Co. KG
Zweite Kinoabspielstatten Verwaltungs GmbH
Ownership
interest
2021
%
2020
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Note
(a)(e)
(c)
(a)(c)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)
(b)
(c)
(d)
(e)
(f)
These companies are audited by other member firms of KPMG International.
This company was incorporated in and carries on business in the United Kingdom.
These companies were incorporated in and carry on business in New Zealand.
These companies were incorporated in and carry on business in The Netherlands.
These companies were incorporated in and carry on business in Germany.
The Group acquired a 50% interest in Jucy Snooze Limited on 3 February 2020. On 30 April 2021 the Group increased its interest in Jucy Snooze Limited to
100%.
All companies, except those stated above, were incorporated in Australia. All trusts were established in Australia.
96 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 5 – G R O U P C O M P O S I T I O N
5.3 – INTERESTS IN OTHER ENTITIES
Accounting policy
Interests in equity accounted investees
The Group’s interests in equity accounted investees comprise interests in associates and interests in joint ventures. Associates
are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating
policies. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another
entity.
Interests in associates and joint ventures (see below) are accounted for using the equity method. They are recognised initially at
cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the
Group’s share of the profit or loss and other comprehensive income of equity accounted investees, until the date on which
significant influence or joint control ceases.
Unrealised gains arising from transactions with equity accounted investees are eliminated to the extent of the Group’s interest
in the entity. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence
of impairment.
Joint arrangements
A joint arrangement is an arrangement of which two or more parties have joint control, in which the parties are bound by a
contractual arrangement, and the contractual arrangement gives two or more of those parties joint control of the arrangement.
The Group classifies its interests in joint arrangements as either joint operations or joint ventures depending on the Group’s
rights to the assets and obligations for the liabilities of the arrangements. When making this assessment, the Group considers
the structure of the arrangements, the legal form of any separate vehicles, the contractual terms of the arrangements and other
facts and circumstances.
The Group’s interests in joint operations, which are arrangements in which the parties have rights to the assets and obligations
for the liabilities, are accounted for on the basis of the Group’s interest in those assets and liabilities. The Group’s interests in
joint ventures, which are arrangements in which the parties have rights to the net assets, are equity accounted.
Investments in associates and joint ventures
Associates
Joint ventures
2021
$’000
103
13,842
13,945
Restated
2020
$’000
119
18,180
18,299
97 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
g
n
i
t
a
r
e
p
o
o
t
n
o
i
t
u
b
i
r
t
n
o
C
g
n
i
y
r
r
a
c
t
n
e
m
t
s
e
v
n
I
t
i
f
o
r
p
t
n
u
o
m
a
t
s
e
r
e
t
n
i
i
p
h
s
r
e
n
w
O
:
s
w
o
l
l
o
f
s
a
e
r
a
,
d
o
h
t
e
m
y
t
i
u
q
e
e
h
t
g
n
i
s
u
r
o
f
d
e
t
n
u
o
c
c
a
e
r
a
h
c
i
h
w
,
s
e
r
u
t
n
e
v
t
n
o
i
j
n
i
s
t
n
e
m
t
s
e
v
n
i
s
’
p
u
o
r
G
e
h
t
f
o
s
l
i
a
t
e
D
s
e
r
u
t
n
e
v
t
n
o
J
i
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
N
O
I
T
I
S
O
P
M
O
C
P
U
O
R
G
–
5
N
O
I
T
C
E
S
)
d
e
u
n
i
t
n
o
c
(
S
E
I
T
I
T
N
E
R
E
H
T
O
N
I
S
T
S
E
R
E
T
N
I
–
3
.
5
)
4
8
1
(
)
3
1
1
(
9
2
2
1
1
3
)
5
4
4
(
)
8
4
5
(
−
)
0
5
7
(
0
2
0
2
0
0
0
0
’
$
d
e
t
a
t
s
e
R
1
2
0
2
0
0
0
’
$
)
8
0
2
(
5
4
6
1
,
7
2
3
1
3
4
)
9
9
7
(
)
0
9
6
(
−
6
0
7
e
h
t
n
i
t
s
e
r
e
t
n
i
e
v
i
t
c
e
f
f
e
l
a
t
o
t
0
2
0
2
0
0
0
’
$
8
8
4
5
6
7
1
,
3
5
3
3
7
9
3
,
0
3
5
5
,
8
8
8
5
,
3
8
1
d
e
t
a
t
s
e
R
1
2
0
2
0
0
0
’
$
0
8
2
5
9
2
3
,
0
0
8
1
5
2
4
,
−
9
1
7
9
1
5
,
0
8
1
8
1
,
2
4
8
3
1
,
%
0
2
0
2
0
5
)
a
(
0
5
)
b
(
0
5
)
b
(
6
1
0
5
)
c
(
0
5
0
5
)
b
(
%
1
2
0
2
0
5
)
a
(
0
5
)
b
(
0
5
)
b
(
6
1
0
0
1
)
c
(
0
5
0
5
)
b
(
n
o
i
t
a
r
o
p
r
o
c
n
i
f
o
y
r
t
n
u
o
C
s
e
i
t
i
v
i
t
c
a
l
a
p
i
c
n
i
r
P
e
m
a
N
a
i
l
a
r
t
s
u
A
l
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
a
f
o
r
o
t
a
r
e
p
O
d
e
t
i
m
i
L
i
y
t
P
s
a
m
e
n
C
s
n
a
P
s
n
w
o
r
B
l
i
l
d
n
a
a
e
Z
w
e
N
l
d
n
a
a
e
Z
w
e
N
r
o
t
a
r
e
p
o
l
e
t
o
H
r
e
n
w
o
l
e
t
o
H
d
e
t
i
m
i
L
l
i
s
g
n
d
o
H
r
e
m
i
t
a
L
s
e
g
d
y
R
d
e
t
i
m
i
L
e
z
o
o
n
S
y
c
u
J
y
n
a
m
r
e
G
l
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
a
f
o
r
o
t
a
r
e
p
O
G
K
.
o
C
&
H
b
m
G
z
n
a
t
s
n
o
K
t
s
a
a
p
m
l
l
i
F
a
i
l
a
r
t
s
u
A
l
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
a
f
o
r
o
t
a
r
e
p
O
d
e
t
i
m
i
L
y
t
P
s
a
m
e
n
C
e
m
o
h
n
a
g
o
L
i
l
y
n
a
m
r
e
G
t
n
e
m
e
g
a
n
a
m
t
n
e
v
E
G
K
.
o
C
&
H
b
m
G
n
o
i
t
a
c
i
n
u
m
m
o
C
a
m
e
n
C
t
e
p
r
a
C
d
e
R
i
y
n
a
m
r
e
G
l
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
a
f
o
r
o
t
a
r
e
p
O
G
K
.
o
C
&
H
b
m
G
e
h
u
r
s
l
r
a
K
M
K
Z
m
a
t
s
a
a
p
m
l
l
i
F
s
’
p
u
o
r
G
e
h
T
.
n
o
i
t
a
r
e
p
o
t
n
o
i
j
a
s
a
r
o
f
d
e
t
n
u
o
c
c
a
s
i
h
c
i
h
w
e
r
u
t
n
e
V
t
n
o
J
i
l
x
e
p
i
t
l
u
M
i
l
s
n
a
P
s
n
w
o
r
B
e
h
t
n
i
e
r
a
h
s
%
3
3
t
c
e
r
i
d
a
s
a
h
o
s
l
a
p
u
o
r
G
e
h
T
.
e
r
u
t
n
e
V
t
n
o
J
i
l
x
e
p
i
t
l
u
M
l
i
s
n
a
P
s
n
w
o
r
B
e
h
t
f
o
%
3
3
s
n
w
o
d
e
t
i
m
i
L
i
y
t
P
s
a
m
e
n
C
s
n
a
P
s
n
w
o
r
B
i
l
.
%
0
5
s
i
e
r
u
t
n
e
V
t
n
o
J
i
l
x
e
p
i
t
l
u
M
l
i
s
n
a
P
s
n
w
o
r
B
.
%
0
0
1
o
t
d
e
t
i
m
i
L
e
z
o
o
n
S
y
c
u
J
n
i
t
s
e
r
e
t
n
i
s
t
i
d
e
s
a
e
r
c
n
i
p
u
o
r
G
e
h
t
1
2
0
2
l
i
r
p
A
0
3
n
O
.
0
2
0
2
y
r
a
u
r
b
e
F
3
n
o
d
e
t
i
m
i
L
e
z
o
o
n
S
y
c
u
J
n
i
t
s
e
r
e
t
n
i
%
0
5
a
d
e
r
i
u
q
c
a
p
u
o
r
G
e
h
T
.
y
n
a
m
r
e
G
n
i
d
e
t
a
r
o
p
r
o
c
n
i
i
e
r
a
s
e
n
a
p
m
o
c
e
s
e
h
T
)
a
(
)
b
(
)
c
(
f
o
e
s
a
c
e
h
t
n
i
,
d
n
a
t
n
e
m
t
s
e
v
n
i
h
c
a
e
d
e
r
e
d
i
s
n
o
c
p
u
o
r
G
e
h
T
.
9
1
-
D
V
O
C
I
f
o
t
c
a
p
m
i
c
i
m
o
n
o
c
e
e
h
t
i
g
n
w
o
l
l
o
f
t
n
e
m
r
i
a
p
m
i
f
o
s
r
o
t
a
c
i
d
n
i
r
o
f
s
e
r
u
t
n
e
v
t
n
o
i
j
n
i
s
t
n
e
m
t
s
e
v
n
i
s
t
i
d
e
w
e
i
v
e
r
p
u
o
r
G
e
h
T
e
r
e
h
t
t
a
h
t
i
d
e
n
m
r
e
t
e
d
p
u
o
r
G
e
h
T
.
s
t
e
s
s
a
g
n
i
t
a
r
e
n
e
g
h
s
a
c
d
e
t
a
i
c
o
s
s
a
r
e
h
t
o
h
t
i
w
n
o
i
t
c
e
n
n
o
c
d
n
a
i
p
h
s
n
o
i
t
a
e
r
l
e
h
t
,
d
e
t
i
m
i
L
y
t
P
s
a
m
e
n
C
i
l
e
m
o
h
n
a
g
o
L
d
n
a
d
e
t
i
m
i
L
y
t
P
s
a
m
e
n
C
i
i
s
n
a
P
l
s
n
w
o
r
B
.
e
n
u
J
0
3
s
i
s
e
r
u
t
n
e
v
t
n
o
i
j
s
’
p
u
o
r
G
e
h
t
l
f
o
h
c
a
e
f
o
e
t
a
d
e
c
n
a
a
b
e
h
T
.
)
0
0
0
8
5
8
$
:
0
2
0
2
(
0
0
0
3
0
3
$
o
t
,
,
t
n
u
o
m
a
1
2
0
2
e
n
u
J
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
s
e
r
u
t
n
e
v
t
n
o
i
j
m
o
r
f
d
e
v
i
e
c
e
r
s
d
n
e
d
i
v
i
D
.
s
e
r
u
t
n
e
v
t
n
o
i
j
n
i
s
t
n
e
m
t
s
e
v
n
i
l
f
o
e
u
a
v
g
n
i
y
r
r
a
c
e
h
t
o
t
n
o
i
t
a
e
r
n
l
i
t
n
e
m
r
i
a
p
m
i
n
a
k
o
o
b
o
t
t
n
e
m
e
r
i
u
q
e
r
o
n
s
a
w
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
8
9
3
–
–
–
–
3
0
2
0
2
0
0
0
’
$
d
e
t
a
t
s
e
R
)
6
1
(
9
1
1
3
0
1
1
2
0
2
0
0
0
’
$
)
6
1
(
–
–
–
–
–
–
–
–
0
2
0
2
0
0
0
’
$
9
1
1
d
e
t
a
t
s
e
R
1
2
0
2
0
0
0
’
$
3
0
1
–
–
–
–
%
0
2
0
2
0
5
4
2
)
a
(
8
4
0
6
)
b
(
3
5
)
b
(
%
1
2
0
2
0
5
4
2
)
a
(
8
4
0
6
)
b
(
3
5
)
b
(
g
n
i
t
a
r
e
p
o
o
t
n
o
i
t
u
b
i
r
t
n
o
C
g
n
i
y
r
r
a
c
t
n
e
m
t
s
e
v
n
I
t
i
f
o
r
p
t
n
u
o
m
a
t
s
e
r
e
t
n
i
i
p
h
s
r
e
n
w
O
l
d
n
a
a
e
Z
w
e
N
a
i
l
a
r
t
s
u
A
n
o
i
t
a
r
o
p
r
o
c
n
i
f
o
y
r
t
n
u
o
C
a
i
l
a
r
t
s
u
A
y
n
a
m
r
e
G
e
t
i
s
b
e
w
r
o
t
u
b
i
r
t
s
i
d
d
n
a
r
e
n
w
o
m
l
i
F
d
e
t
i
m
i
L
y
t
P
s
n
o
i
t
c
u
d
o
r
P
e
n
o
t
e
i
v
o
M
d
n
u
o
s
e
n
C
i
t
e
k
c
i
t
o
n
K
n
e
D
i
i
f
o
r
o
t
a
r
e
p
O
H
b
m
G
t
e
k
c
i
t
o
n
K
n
e
D
i
i
n
o
i
t
a
r
t
s
i
n
m
d
A
i
n
o
i
t
a
r
t
s
i
n
m
d
A
i
d
e
t
i
m
i
L
y
t
P
Z
N
s
r
e
n
t
r
a
P
n
o
i
t
a
r
g
e
t
n
I
a
m
e
n
C
i
d
e
t
i
m
i
L
y
t
P
s
r
e
n
t
r
a
P
n
o
i
t
a
r
g
e
t
n
I
a
m
e
n
C
i
l
a
t
i
g
D
i
l
a
t
i
g
D
i
s
e
i
t
i
v
i
t
c
a
l
a
p
i
c
n
i
r
P
e
m
a
N
a
i
l
a
r
t
s
u
A
e
t
i
s
b
e
w
s
e
m
i
t
e
i
v
o
M
f
o
r
o
t
a
r
e
p
O
d
e
t
i
m
i
L
l
y
t
P
d
n
a
a
e
Z
w
e
N
d
n
a
a
i
l
a
r
t
s
u
A
s
e
m
i
t
e
i
v
o
M
n
a
k
o
o
b
o
t
t
n
e
m
e
r
i
u
q
e
r
o
n
s
a
w
e
r
e
h
t
i
t
a
h
t
d
e
n
m
r
e
t
e
d
p
u
o
r
G
e
h
T
.
I
9
1
-
D
V
O
C
f
o
t
c
a
p
m
i
c
i
m
o
n
o
c
e
e
h
t
g
n
w
o
i
l
l
o
f
t
n
e
m
r
i
a
p
m
i
f
o
s
r
o
t
a
c
i
d
n
i
r
o
f
s
e
t
a
i
c
o
s
s
a
n
i
s
t
n
e
m
t
s
e
v
n
i
s
t
i
d
e
w
e
i
v
e
r
p
u
o
r
G
e
h
T
.
s
e
t
a
i
c
o
s
s
a
n
i
s
t
n
e
m
t
s
e
v
n
i
l
f
o
e
u
a
v
g
n
i
y
r
r
a
c
e
h
t
o
t
n
o
i
t
a
e
r
n
l
i
t
n
e
m
r
i
a
p
m
i
.
e
n
u
J
0
3
s
i
s
e
t
a
i
c
o
s
s
a
s
’
p
u
o
r
G
e
h
t
f
o
h
c
a
e
f
o
e
t
a
d
e
c
n
a
a
b
e
h
T
.
)
l
i
l
n
$
:
0
2
0
2
(
l
i
n
$
o
t
t
n
u
o
m
a
1
2
0
2
e
n
u
J
0
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
s
e
t
a
i
c
o
s
s
a
m
o
r
f
d
e
v
i
e
c
e
r
s
d
n
e
d
i
v
i
D
.
l
o
r
t
n
o
c
e
v
a
h
t
o
n
s
e
o
d
p
u
o
r
G
e
h
t
s
a
d
e
t
a
d
i
l
o
s
n
o
c
t
o
n
e
r
a
d
e
t
i
l
m
i
L
y
t
P
d
n
a
a
e
Z
w
e
N
d
n
a
a
i
l
a
r
t
s
u
A
s
e
m
i
t
e
i
v
o
M
d
n
a
d
e
t
i
m
i
L
y
t
P
Z
N
s
r
e
n
t
r
a
P
n
o
i
t
a
r
g
e
t
n
I
a
m
e
n
C
i
l
a
t
i
g
D
i
.
y
n
a
m
r
e
G
n
i
d
e
t
a
r
o
p
r
o
c
n
i
s
i
y
n
a
p
m
o
c
s
i
h
T
)
a
(
)
b
(
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
9
9
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
N
O
I
T
I
S
O
P
M
O
C
P
U
O
R
G
–
5
N
O
I
T
C
E
S
)
d
e
u
n
i
t
n
o
c
(
S
E
I
T
I
T
N
E
R
E
H
T
O
N
I
S
T
S
E
R
E
T
N
I
–
3
.
5
:
s
w
o
l
l
o
f
s
a
e
r
a
,
d
o
h
t
e
m
y
t
i
u
q
e
e
h
t
g
n
i
s
u
r
o
f
d
e
t
n
u
o
c
c
a
e
r
a
h
c
i
h
w
,
s
e
t
a
i
c
o
s
s
a
n
i
s
t
n
e
m
t
s
e
v
n
i
s
’
p
u
o
r
G
e
h
t
f
o
s
l
i
a
t
e
D
s
e
t
a
i
c
o
s
s
A
i
l
s
n
a
P
s
n
w
o
r
B
.
d
e
t
n
u
o
c
c
a
y
t
i
u
q
e
d
n
a
e
r
u
t
n
e
v
t
n
o
i
j
a
s
a
d
e
i
f
i
s
s
a
l
c
s
i
h
c
i
h
w
d
e
t
i
m
i
L
i
y
t
P
s
a
m
e
n
C
s
n
a
P
s
n
w
o
r
B
n
i
l
i
t
s
e
r
e
t
n
i
%
0
5
a
s
a
h
p
u
o
r
G
e
h
t
l
,
y
l
t
c
e
r
i
d
d
e
h
e
r
u
t
n
e
V
t
n
o
J
i
l
x
e
p
i
t
l
u
M
.
%
0
5
s
i
e
r
u
t
n
e
V
t
n
o
J
i
l
x
e
p
i
t
l
u
M
l
i
s
n
a
P
s
n
w
o
r
B
e
h
t
n
i
t
s
e
r
e
t
n
i
e
v
i
t
c
e
f
f
e
l
a
t
o
t
s
’
p
u
o
r
G
e
h
T
.
e
r
u
t
n
e
V
t
n
o
J
i
l
x
e
p
i
t
l
u
M
i
l
s
n
a
P
s
n
w
o
r
B
e
h
t
f
o
%
3
3
s
n
w
o
d
e
t
i
m
i
L
y
t
P
s
a
m
e
n
C
i
l
i
s
n
a
P
s
n
w
o
r
B
e
h
t
n
i
t
s
e
r
e
t
n
i
%
3
3
e
h
t
o
t
n
o
i
t
i
d
d
a
n
I
)
a
(
t
r
o
p
e
R
l
a
u
n
n
A
1
2
0
2
–
d
e
t
i
m
i
L
i
t
n
e
m
n
a
t
r
e
t
n
E
&
y
t
i
l
a
t
i
p
s
o
H
T
N
E
V
E
0
0
1
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
E
H
T
O
T
S
E
T
O
N
N
O
I
T
I
S
O
P
M
O
C
P
U
O
R
G
–
5
N
O
I
T
C
E
S
)
d
e
u
n
i
t
n
o
c
(
S
E
I
T
I
T
N
E
R
E
H
T
O
N
I
S
T
S
E
R
E
T
N
I
–
3
.
5
:
s
w
o
l
l
o
f
s
a
e
r
a
,
s
i
s
a
b
e
n
i
l
-
y
b
-
e
n
i
l
a
n
o
r
o
f
d
e
t
n
u
o
c
c
a
e
r
a
h
c
i
h
w
,
s
n
o
i
t
a
r
e
p
o
t
n
o
i
j
n
i
s
t
n
e
m
t
s
e
v
n
i
s
’
p
u
o
r
G
e
h
t
f
o
s
l
i
a
t
e
D
s
n
o
i
t
a
r
e
p
o
t
n
o
J
i
%
0
5
0
2
0
2
3
3
)
a
(
0
5
0
5
3
3
0
5
0
5
%
0
5
1
2
0
2
3
3
)
a
(
0
5
0
5
3
3
0
5
0
5
t
s
e
r
e
t
n
i
i
p
h
s
r
e
n
w
O
n
o
i
t
a
r
e
p
o
f
o
y
r
t
n
u
o
C
s
e
i
t
i
v
i
t
c
a
l
a
p
i
c
n
i
r
P
e
m
a
N
a
i
l
a
r
t
s
u
A
a
i
l
a
r
t
s
u
A
a
i
l
a
r
t
s
u
A
a
i
l
a
r
t
s
u
A
a
i
l
a
r
t
s
u
A
l
s
e
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
f
o
r
o
t
a
r
e
p
O
e
r
u
t
n
e
V
t
n
o
J
i
s
e
r
t
a
e
h
T
n
a
i
l
a
r
t
s
u
A
l
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
a
f
o
r
o
t
a
r
e
p
O
e
r
u
t
n
e
V
t
n
o
J
i
l
x
e
p
i
t
l
u
M
i
l
s
n
a
P
s
n
w
o
r
B
l
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
a
f
o
r
o
t
a
r
e
p
O
l
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
a
f
o
r
o
t
a
r
e
p
O
l
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
a
f
o
r
o
t
a
r
e
p
O
i
e
r
u
t
n
e
V
t
n
o
J
a
m
e
n
C
x
e
p
i
t
l
u
M
i
l
l
l
i
H
e
l
t
s
a
C
i
e
r
u
t
n
e
V
t
n
o
J
e
r
t
n
e
C
a
m
e
n
C
a
n
i
r
a
u
s
a
C
i
i
e
r
u
t
n
e
V
t
n
o
J
a
m
e
n
C
y
t
i
C
n
e
d
r
a
G
i
l
d
n
a
a
e
Z
w
e
N
l
s
e
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
f
o
r
o
t
a
r
e
p
O
e
r
u
t
n
e
V
t
n
o
J
o
t
l
a
R
i
i
a
i
l
a
r
t
s
u
A
l
x
e
p
m
o
c
a
m
e
n
i
c
n
e
e
r
c
s
i
t
l
u
m
a
f
o
r
o
t
a
r
e
p
O
i
e
r
u
t
n
e
V
t
n
o
J
e
r
t
n
e
C
a
m
e
n
C
a
b
m
o
o
w
o
o
T
i
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 6 – E M P L O Y E E B E N E F I T S A N D R E L A T E D P A R T Y T R A N S A C T I O N S
This section explains the remuneration of executives and other employees, and transactions with related parties
including directors.
On the following pages, there are sections on share-based payments, director and executive disclosures and related
party transactions.
6.1 – SHARE-BASED PAYMENTS
The Group’s share-based payment arrangements include the Executive Performance Share Plan and the Executive Performance
Rights Plan. Grants were made under the Executive Performance Share Plan from 2007 to 2013 inclusive. The Group conducted
a review of its long term incentive (“LTI”) arrangements in 2013 and resolved that the existing performance share-based LTI
should be replaced with a performance rights-based LTI. Shareholders approved the Executive Performance Rights Plan at the
2013 Annual General Meeting. Grants have subsequently been made under the Executive Performance Rights Plan in February
2014, February 2015, February 2016, February 2017, February 2018, February 2019, February 2020 and February 2021.
Accounting policy
The fair value of performance shares and rights granted under the Executive Performance Share Plan and the Executive
Performance Rights Plan is recognised as an employee expense over the period during which the employees become
unconditionally entitled to shares in the Company. There is a corresponding increase in equity, being recognition of a share-
based payments reserve. The fair value of performance shares and rights granted is measured at grant date.
To facilitate the operation of the Executive Performance Share Plan and Executive Performance Rights Plan, a third party trustee
is used to administer the trust which holds shares in the Company allocated under the Executive Performance Share Plan or
otherwise held or acquired on market in order to satisfy the Group’s future obligations under the Executive Performance Rights
Plan. The trust is controlled by the Group and therefore its financial statements are included in the consolidated financial
statements. The shares in the Group held by the trust are therefore shown as treasury shares (see Note 4.1). The Group incurs
expenses on behalf of the trust. These expenses are in relation to administration costs of the trust and are recorded in the Income
Statement as incurred.
Performance shares and performance rights are subject to performance hurdles. The performance shares are recognised in the
Statement of Financial Position as restricted ordinary shares. Performance shares are included within the weighted average
number of shares used as the denominator for determining basic earnings per share and net tangible asset backing per share.
Performance rights are not recognised in the Statement of Financial Position, but are included within the weighted average
number of shares issued as the denominator for determining diluted earnings per share.
The Group measures the cost of the Executive Performance Share Plan and Executive Performance Rights Plan by reference to
the fair value of the equity instruments at the date at which the instruments are granted. The fair value of performance rights
granted is determined by an external valuer using a Binomial tree model and a Monte Carlo simulation model and using the
assumptions detailed below.
Executive Performance Rights Plan
The establishment of the Executive Performance Rights Plan was approved by shareholders at the 2013 Annual General Meeting.
Employees receiving awards under the Executive Performance Rights Plan are those of a senior level and above (including the
CEO).
An employee awarded performance rights is not legally entitled to shares in the Company before the performance rights under
the plan vest, and during the vesting period the performance rights do not carry the right to vote or to receive dividends. Once
the rights have vested, which is dependent on the Group achieving its earnings per share (“EPS”) and total shareholder return
(“TSR”) targets, participants are issued one ordinary share in the Company for each vested performance right held. Award,
vesting and the issue of ordinary shares under the plan are made for no consideration. The performance period is three years.
101 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 6 – E M P L O Y E E B E N E F I T S A N D R E L A T E D P A R T Y T R A N S A C T I O N S
6.1 – SHARE-BASED PAYMENTS (continued)
Set out below are summaries of performance rights awarded under the plan:
Type of right
Grant date
2021
Balance at
the start of
the year
Granted
Exercised
Forfeited
Performance rights
15 February 2018
433,467
Performance rights
21 February 2019
403,115
Performance rights
20 February 2020
Performance rights
18 February 2021
508,815
−
1,345,397
2020
Performance rights
16 February 2017
485,009
Performance rights
15 February 2018
478,224
Performance rights
21 February 2019
Performance rights
20 February 2020
445,908
−
1,409,141
−
−
−
748,386
748,386
−
−
−
528,483
528,483
−
−
−
−
−
−
−
−
−
−
Balance at
the end of
the year
−
390,354
490,379
744,357
(433,467)
(12,761)
(18,436)
(4,029)
(468,693)
1,625,090
(485,009)
(44,757)
(42,793)
(19,668)
−
433,467
403,115
508,815
(592,227)
1,345,397
Fair value of performance rights granted
The assessed fair value at grant date of performance rights granted under the Executive Performance Rights Plan during the year
ended 30 June 2021 was $10.00 (2020: $11.07) for those rights that have EPS hurdles and $6.99 (2020: $5.15) for those rights
that have TSR hurdles. The fair value of each performance right is estimated on the date of grant using a Binomial tree model for
those rights that have EPS hurdles, and a Monte Carlo simulation model for those rights that have TSR hurdles with the following
weighted average assumptions used for each grant:
Dividend yield (per annum)
Expected volatility
Risk-free rate (per annum)
Share price
Expected life
Granted
18 February 2021
Granted
20 February 2020
Granted
21 February 2019
1.99%
35.71%
0.21%
$10.53
3 years
4.35%
20.00%
0.68%
$12.40
3 years
4.15%
20.00%
1.62%
$12.46
3 years
The expected life of the performance rights is based on historical data and is not necessarily indicative of exercise patterns that
may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may
also not necessarily be the actual outcome.
102 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 6 – E M P L O Y E E B E N E F I T S A N D R E L A T E D P A R T Y T R A N S A C T I O N S
6.1 – SHARE-BASED PAYMENTS (continued)
Executive Performance Share Plan
Employees who received awards under the Executive Performance Share Plan were those of a senior level and above. An
employee awarded performance shares was not legally entitled to shares in the Company before the performance shares
allocated under the plan vest. However, the employee was able to vote and receive dividends in respect of shares allocated to
them. Once the shares vested, which was dependent on the Group achieving its EPS and TSR targets, they remained in the trust
until the earliest of the employee leaving the Group, the seventh anniversary (for grants made from 2010) or the 10th anniversary
(for grants made from 2007 to 2009) of the date the performance shares were awarded, or the date the Board approved an
application for their release. There was no consideration for award, vesting and exercise under the plan. The performance period
was three years.
Set out below are summaries of performance shares awarded under the plan:
Year
2021
2020
Type of right
Balance at
the start of
the year
Granted
Exercised
Forfeited
shares
reallocated
Balance at
the end of
the year
Performance shares
–
Performance shares
203,493
–
–
–
(203,493)
–
–
–
–
No performance shares were granted during the year ended 30 June 2021 (2020: nil).
Share-based payment expense
Total share-based payment expense included within employee expenses for the year ended 30 June 2021 was a charge of
$1,486,000 (2020: credit of $1,720,000).
Superannuation
Group entities contribute to several defined contribution superannuation plans. The superannuation contributions recognised
as an employee expense in the Income Statement are detailed below:
2021
$’000
2020
$’000
Superannuation contributions recognised as an employee expense
12,052
15,398
103 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 6 – E M P L O Y E E B E N E F I T S A N D R E L A T E D P A R T Y T R A N S A C T I O N S
6.2 – DIRECTOR AND EXECUTIVE DISCLOSURES
Information regarding individual directors’ and executives’ compensation and some equity instruments disclosures, as permitted
by the Corporations Regulations 2001, are provided in the Remuneration Report contained within the Directors’ Report. The
relevant sections of the Remuneration Report are outlined below:
Section of Remuneration Report
Non-executive director remuneration
CEO and other executive remuneration
Fixed annual remuneration
Variable remuneration – short term incentive
Variable remuneration – long term incentive
Employment contracts for the CEO and other executive KMP
Directors’ and executives’ position and period of responsibility
Directors’ and executives’ remuneration
Performance rights holdings and transactions
Equity holdings and transactions
Key management personnel remuneration
The key management personnel remuneration included in employee expenses is as follows:
Employee benefits
Short term
Other long term
Equity compensation
Post employment
Directors’ Report page reference
24
25
25
26
26
28
29
30
32
34
2021
$
2020
$
2,978,950
242,407
2,356,116
114,170
5,691,643
4,997,963
108,847
22,071
141,248
5,270,129
Other transactions with the Company or its controlled entities
AG Rydge is a director of Carlton Investments Limited. Carlton Investments Limited rents office space from a controlled entity.
Rent is charged to Carlton Investments Limited at a market rate. Rent and office service charges received during the year were
$23,870 (2020: $21,675). The Company previously held ordinary shares in Carlton Investments Limited, and continues to hold
preference shares in Carlton Investments Limited. Dividends received during the year from preference shares held in Carlton
Investments Limited were $5,312 (2020: $5,312).
AG Rydge paid rent, levies and other costs to Group entities during the year amounting to $143,307 (2020: $117,287). Rent is
charged to AG Rydge at market rates.
Apart from the details disclosed in the Remuneration Report, no KMP has entered into a material contract with the Group since
the end of the previous year and there were no material contracts involving directors’ interests existing at the reporting date.
From time to time, KMP of the Group, or their related parties, may purchase goods or services from the Group. These purchases
are usually on the same terms and conditions as those granted to other Group employees. Where the purchases are on terms
and conditions more favourable than those granted to other Group employees, the resulting benefits form part of the total
remuneration outlined within the Remuneration Report.
104 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 6 – E M P L O Y E E B E N E F I T S A N D R E L A T E D P A R T Y T R A N S A C T I O N S
6.3 – RELATED PARTIES
Relationships with associates
Transactions with associates included the receipt of property rental income from an associate of $66,000 (2020: $69,000). Costs
paid on behalf of an associate totalled $61,000 (2020: $71,000) and these costs were not refundable (2020: $nil) by that
associate.
Refer also to Notes 3.1 and 5.3.
Relationships with joint ventures and joint operation partners
Refer to Note 5.3.
Key management personnel
Disclosures relating to directors of the Company and named executives are set out in the Remuneration Report contained within
the Directors’ Report, and in Note 6.2.
105 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 7 – O T H E R I N F O R M A T I O N
This section contains other disclosures required by accounting standards and the Corporations Act 2001.
7.1 – CONTINGENT LIABILITIES
Personal injury and other claims
The nature of the Group’s operations results in personal injury and other claims being received from time to time. The directors
believe that the outcome of any current claims outstanding, which are not provided against in the financial statements, will not
have a significant impact on the operating result of the Group in future reporting periods.
The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future
sacrifice of economic benefits will be required or the amount is not capable of reliable measurement at balance date.
7.2 – RECONCILIATION OF LOSS FOR THE YEAR TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Reconciliation of loss for the year to net cash provided by operating activities
Loss for the year
(48,036)
(56,987)
2021
$’000
Restated
2020
$’000
Adjustments for:
Depreciation and amortisation
Impairment adjustments
Profit on disposal of non-current assets
Fair value (increment)/decrement of investment properties
Equity accounted investment dividends
Share of equity accounted investees’ net (profit)/loss
Share-based payments expense
Receivables impairment adjustment
Unrealised foreign exchange losses
Net cash provided by operating activities before change in assets and liabilities
Change in assets and liabilities adjusted for effects of consolidation of controlled
entities acquired/disposed during the year:
(Increase)/decrease in trade and other receivables
Decrease in inventories
Decrease/(increase) in prepayments and other current assets
Decrease/(increase) in deferred tax items
Increase in income taxes payable
Increase in trade and other payables
Increase/(decrease) in provisions
Decrease in other liabilities
Increase in deferred revenue
Increase in financing costs payable
Net cash provided by operating activities
186,627
5,923
(35,222)
(6,950)
303
(690)
1,490
(1,031)
171
102,585
(11,741)
4,695
1,642
19,094
(5,434)
15,509
3,240
(2,595)
18,509
2,633
148,137
196,655
60,923
(612)
1,657
858
747
396
1,714
430
205,781
5,907
596
(20,410)
(25,382)
(25,954)
12,947
(1,051)
(342)
24,163
112
176,367
Cash flows are included in the Statement of Cash Flows on a gross basis. The GST or equivalent tax components of cash flows
arising from investing and financing activities which are recoverable from, or payable to, taxation authorities are classified as
operating cash flows.
106 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 7 – O T H E R I N F O R M A T I O N
7.3 – AUDITORS’ REMUNERATION
Audit services:
Auditors of the Group – KPMG Australia
Audit and review of financial statements
Other assurance services
Overseas KPMG firms
Audit and review of financial statements
Other assurance services
Other auditors
Audit and review of financial statements
Other assurance services
Other services:
Auditors of the Group – KPMG Australia
Tax compliance and advice
Segment disposal – tax advice
Other services
Overseas KPMG firms
Tax compliance and advice
Other auditors
Tax compliance and advice
Other services
2021
$
Restated
2020
$
1,289,000
180,020
363,419
–
1,832,439
87,556
11,960
99,516
1,931,955
144,815
4,299
165,722
314,836
1,276,000
168,118
346,033
–
1,790,151
49,550
2,600
52,150
1,842,301
160,995
86,877
187,728
435,600
647,890
348,708
–
8,755
8,755
971,481
–
25,750
25,750
810,058
107 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 7 – O T H E R I N F O R M A T I O N
7.4 – PARENT ENTITY DISCLOSURES
As at, and throughout the financial year ended, 30 June 2021, the parent entity of the Group was EVENT Hospitality &
Entertainment Limited.
Results of parent entity
Profit for the year
Other comprehensive income for the year
Total comprehensive income for the year
Financial position of parent entity at year end
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Total equity of parent entity comprises:
Share capital
Financial assets revaluation reserve
Share-based payments reserve
Retained earnings
Total equity
Parent entity contingencies
Controlled entities
The Company has guaranteed the obligations of some subsidiary entities in respect of a
number of operating lease commitments. Operating lease commitments of subsidiary
entities that have been guaranteed are due:
Not later than one year
Later than one year but not later than five years
Later than five years
Joint ventures and joint operations
The Company has guaranteed the obligations of some joint ventures and joint operations in
respect of a number of operating lease commitments. Operating lease commitments of joint
ventures and joint operations are due:
Not later than one year
Later than one year but not later than five years
Later than five years
2021
$’000
(2,311)
757
(1,554)
7,449
305,968
9,316
9,520
296,448
219,126
12,536
36,255
28,531
296,448
Restated
2020
$’000
15,288
(994)
14,294
2,098
303,335
5,856
6,063
297,272
219,126
12,536
34,769
30,841
297,272
56,089
113,635
112,595
282,319
60,043
107,301
120,347
287,691
51,426
188,156
274,902
514,484
796,803
40,354
138,453
191,876
370,683
658,374
Parent entity guarantees
Subsidiaries
The Company has entered into a Deed of Cross Guarantee with the effect that the Company guarantees debts in respect of most
of its Australian incorporated subsidiaries. Further details of the Deed of Cross Guarantee and the subsidiaries subject to the
deed, are disclosed in Note 7.6.
Bank debt facilities
The Company is a guarantor under the Group’s secured bank debt facilities, as disclosed in Note 4.4.
108 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 7 – O T H E R I N F O R M A T I O N
7.5 – EVENTS SUBSEQUENT TO REPORTING DATE
Lockdowns occurring within certain geographic areas of Australia and New Zealand
A number of the Group’s sites are currently closed or significantly impacted due to the COVID-19 lockdowns within certain
geographic locations within Australia and New Zealand. The duration of the lockdowns are dependent upon the various
governments relaxing the lockdown and travel restrictions. The general expectation is that the lockdowns will continue, or
continue to reoccur, until the COVID-19 vaccination rates of the general population meet or exceed the appropriate levels
expected by the various government authorities. It is expected that the relaxation of the restrictions could start to occur within
the last quarter of calendar 2021.
Reopening of the German Cinema operations and German government support
The Group re-opened the German Cinema operations on 1 July 2021 following an eight-month closure period. The
German government has implemented a damage compensation program for affected businesses for the November and
December 2020 lockdown period, and a subsidy program (Bridging Aid III) for the January to June 2021 period. The Group lodged
applications for the November and December 2020 damage compensation program and recognised €27.5 million within the
results for the year ended 30 June 2021. The proceeds were received in July and August 2021.
The Group expects to lodge applications for Bridging Aid III support payments in September 2021.
Sale of a number of group properties
A number of freehold assets that were considered non-core to the business operations of the Group were sold during the during
the year, with gross proceeds totalling $79.65 million. Further additional non-core properties have been identified for potential
sale and the Group has commenced a number of expression of interest campaigns for the sale of certain freehold assets. The
Group is on track to achieve $250 million of proceeds from non-core assets within two years.
Dividends
On 23 August 2021, the directors resolved that no final dividend be declared for the year ended 30 June 2021.
109 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 7 – O T H E R I N F O R M A T I O N
7.6 – DEED OF CROSS GUARANTEE
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785, the wholly-owned subsidiaries listed below are
relieved from the Corporations Act 2001 requirements for preparation, audit and lodgement of financial reports, and directors’
reports.
It is a condition of the Instrument that the Company and each of the subsidiaries enter into a Deed of Cross Guarantee. The
effect of the deed is that the Company guarantees to each creditor, payment in full of any debt in the event of winding up of any
of the subsidiaries under certain provisions of the Corporations Act 2001. If a winding up occurs under other provisions of the
Act, the Company will only be liable in the event that after six months any creditor has not been paid in full. The subsidiaries
have also given similar guarantees in the event that the Company is wound up.
The subsidiaries subject to the deed are:
Atura Hotels and Resorts Pty Limited
Birch, Carroll & Coyle Limited
Bryson Hotel Pty Limited
Canberra Theatres Limited
Edge Digital Technology Pty Limited
Elsternwick Properties Pty Limited
Event Cinema Entertainment Pty Limited
Event Cinemas (Australia) Pty Limited
Event Hotels and Resorts Pty Limited
Glenelg Theatres Pty Limited
Greater Entertainment Pty Limited
Greater Occasions Australia Pty Limited
Greater Union International Holdings Pty Limited
Greater Union Nominees Pty Limited
Greater Union Screen Entertainment Pty Limited
Greattheatre Pty Limited
GUO Investments (WA) Pty Limited
Gutace Holdings Pty Limited
Haparanda Pty Limited
Haymarket’s Tivoli Theatres Pty Limited
Kidsports Australia Pty Limited
Kosciuszko Thredbo Pty Limited
Kvarken Pty Limited
Lakeside Hotel Pty Limited
Mamasa Pty Limited
Noahs Limited
Northside Gardens Hotel Pty Limited
Pantami Pty Limited
203 Port Hacking Road Pty Limited
QT Hotels and Resorts Pty Limited
QT Resort Port Douglas Pty Limited
RQ Motels Pty Limited
Rydges Bankstown Pty Limited
Rydges Cronulla Pty Limited
Rydges Hotels Limited
Sonata Hotels Pty Limited
Tannahill Pty Limited
The Geelong Theatre Company Limited
The Greater Union Organisation Pty Limited
Thredbo Resort Centre Pty Limited
Tourism & Leisure Pty Limited
Western Australia Cinemas Pty Limited
Zollverein Pty Limited.
A consolidated Statement of Comprehensive Income and a consolidated Statement of Financial Position, comprising the
Company and controlled entities which are a party to the deed, after eliminating all transactions between parties to the deed,
for the year ended, and as at, 30 June 2021 respectively are set out on the following page:
110 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S F O R T H E Y E A R E N D E D 3 0 J U N E 2 0 2 1
S E C T I O N 7 – O T H E R I N F O R M A T I O N
7.6 – DEED OF CROSS GUARANTEE (continued)
Statement of Comprehensive Income
Loss before tax
Income tax benefit
Loss for the year
Retained earnings at the beginning of the year
Adjustment to retained earnings
Dividends paid
Retained earnings at the end of the year
Statement of Financial Position
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments and other current assets
Assets held for sale
Total current assets
Non-current assets
Trade and other receivables
Loans to controlled entities
Other financial assets
Other investments
Investments in controlled entities
Investments accounted for using the equity method
Property, plant and equipment
Right-of-use assets
Investment properties
Goodwill and other intangible assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Other loans and borrowings
Current tax liabilities
Provisions
Deferred revenue
Lease liabilities
Other current liabilities
Total current liabilities
Non-current liabilities
Loans from controlled entities
Other loans and borrowings
Provisions
Deferred revenue
Lease liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Share capital
Reserves
Retained earnings
Total equity
111 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
2021
$’000
(11,780)
7,190
(4,590)
443,142
–
–
438,552
75,902
42,990
11,236
6,869
17,973
154,970
672
197,318
1,083
78
71,227
5,579
941,623
510,669
64,500
61,624
22,475
500
1,877,348
2,032,318
65,712
43,500
–
18,477
94,696
67,212
1,836
291,433
56,093
430,706
11,591
4,342
526,200
3,574
1,032,506
1,323,939
708,379
219,126
50,701
438,552
708,379
Restated
2020
$’000
(22,573)
4,867
(17,706)
598,544
(53,874)
(83,822)
443,142
45,690
36,205
15,874
7,058
–
104,827
543
197,697
1,083
78
71,227
6,495
1,002,957
477,416
74,550
66,094
57,875
1,581
1,957,596
2,062,423
64,369
488,300
6,585
15,884
74,147
73,662
2,481
725,428
123,689
859
10,285
8,863
480,748
3,573
628,017
1,353,445
708,978
219,126
46,710
443,142
708,978
D I R E C T O R S ’ D E C L A R A T I O N
1.
In the opinion of the directors of EVENT Hospitality & Entertainment Limited:
(a)
the consolidated financial statements and notes that are set out on pages 36 to 111 and the Remuneration Report
in the Directors’ Report set out on pages 24 to 34, are in accordance with the Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance for the
financial year ended on that date; and
complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001; and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable.
2.
There are reasonable grounds to believe that the Company and the Group entities identified in Note 7.6 to the financial
statements will be able to meet any obligations or liabilities to which they are or may become subject to by virtue of the
Deed of Cross Guarantee between the Company and those subsidiaries pursuant to ASIC Corporations (Wholly-owned
Companies) Instrument 2016/785.
3.
The directors have received the declarations required by section 295A of the Corporations Act 2001 from the Chief
Executive Officer and the Director Finance & Accounting for the year ended 30 June 2021.
4.
The directors draw attention to note 1.2 to the financial statements, which includes a statement of compliance with
International Financial Reporting Standards.
Signed in accordance with a resolution of the directors:
AG Rydge
Director
JM Hastings
Director
Dated at Sydney this 23rd day of August 2021.
112 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
113 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
114 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
115 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
116 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
117 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
S H A R E H O L D E R I N F O R M A T I O N
Additional information required by the ASX Listing Rules and not disclosed elsewhere in the Annual Report is set out below:
SHAREHOLDINGS (AS AT 27 AUGUST 2021)
SUBSTANTIAL SHAREHOLDERS
The names of substantial shareholders who have notified the Company in accordance with section 671B of the Corporations Act
2001 are:
Shareholder
Enbeear Pty Limited
Carlton Investments Limited
Perpetual Limited and its related bodies corporate
* Includes Carlton Investments Limited holding.
Number of ordinary shares held
56,598,377*--
56,588,377
18,589,573
VOTING RIGHTS
Ordinary shares
There were 6,989 holders of ordinary shares of the Company. The voting rights attaching to the ordinary shares, set out in clause
7.8(a) of the Company’s Constitution, are:
“Subject to this constitution and to any rights or restrictions attached to any shares or class of shares, at a general meeting:
(1)
(2)
on a show of hands, every member present has one vote; and
on a poll, every member present has one vote for each share held as at the Record Time by the member entitling the
member to vote, except for partly paid shares, each of which confers on a poll only the fraction of one vote which the
amount paid (not credited) on the shares bears to the total amounts paid and payable (excluding amounts credited) on
the share. An amount paid in advance of a call is disregarded for this purpose.”
DISTRIBUTION OF SHAREHOLDERS
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Number of
shareholders
4,192
1,931
425
405
36
Number of
shares held
1,548,619
4,540,764
3,032,855
10,396,402
141,676,881
6,989
161,195,521
The number of shareholders holding less than a marketable parcel is 335.
UNQUOTED ORDINARY SHARES
There were no unquoted ordinary shares of the Company as at 27 August 2021.
PERFORMANCE RIGHTS
As at 27 August 2021, there were 183 holders of a total of 1,625,090 Performance Rights granted under the Group’s Executive
Performance Rights Plan. The Performance Rights do not carry voting rights.
118 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
S H A R E H O L D E R I N F O R M A T I O N
TWENTY LARGEST SHAREHOLDERS
The names of the 20 largest shareholders of the quoted shares are:
Number of
shares held
Percentage of
capital held
Enbeear Pty Limited
HSBC Custody Nominees (Australia) Limited
Eneber Investment Company Limited
Citicorp Nominees Pty Limited
JP Morgan Nominees Australia Limited
Alphoeb Pty Limited
The Manly Hotels Pty Limited
Carlton Hotel Limited
Mr Alan Graham Rydge
Argo Investments Limited
BNP Paribas Nominees Pty Ltd
Citicorp Nominees Pty Limited
Mutual Trust Pty Ltd
TN Phillips Investments Pty Limited
Milton Corporation Limited
BNP Paribas Noms Pty Ltd
National Nominees Limited
UBS Nominees Pty Ltd
Mr David Christopher Seargeant
Mirrabooka Investments Limited
ON-MARKET BUY-BACK
There is no current on-market buy-back.
32,134,031
24,663,067
19,777,772
15,958,741
11,199,001
6,027,315
5,732,812
5,276,103
4,431,663
2,912,387
2,080,637
1,532,184
1,502,461
1,346,000
1,010,921
922,225
910,063
684,194
453,490
423,992
19.93%
15.30%
12.27%
9.90%
6.95%
3.74%
3.56%
3.27%
2.75%
1.81%
1.29%
0.95%
0.93%
0.84%
0.63%
0.57%
0.56%
0.42%
0.28%
0.26%
138,979,059
86.22%
SECURITIES EXCHANGE
EVENT Hospitality & Entertainment Limited, incorporated and domiciled in Australia, is a publicly listed company limited by
shares. Shares are listed on the ASX under the code EVT.
119 EVENT Hospitality & Entertainment Limited – 2021 Annual Report
O T H E R I N F O R M A T I O N
ANNUAL GENERAL MEETING
The Annual General Meeting will be held at 10:00am (Sydney time) on Friday 22 October 2021. Shareholders and proxyholders
will be able to watch the Meeting, vote, and ask questions and make comments online
in real time at
https://web.lumiagm.com/327710019.
REGISTERED OFFICE
478 George Street
Sydney NSW 2000
Telephone
Facsimile
+61 2 9373 6600
+61 2 9373 6534
www.evt.com
SHARE REGISTRY
Computershare Investor Services Pty Limited
Level 3
60 Carrington Street
Sydney NSW 2000
GPO Box 2975
Melbourne VIC 3001
Telephone
Facsimile
1300 850 505
+61 3 9473 2555
www.computershare.com
For more information on EVENT Hospitality & Entertainment Limited, please refer to our website at www.evt.com.
120 EVENT Hospitality & Entertainment Limited – 2021 Annual Report