A B N 5 1 0 0 0 0 0 5 1 0 3
EVENT HOSPITALITY & ENTERTAINMENT LIMITED
Annual
Report
2022
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 2 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
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 profit/(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 – 2022 Annual Report
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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 2022 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 independence status
Alan Rydge AM
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. He was made a Member of the Order of Australia
in 2022.
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 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 currently, or 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 – 2022 Annual Report
Directors’ qualifications, experience and independence 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. Member of the Nomination and Remuneration
Committee.
Experience
A company director with more than 25 years of broad experience across diverse sectors, including tourism, property,
technology, resources, labour-hire, health and media. Ms Davies also operated her own consultancy in corporate
communications, working at the leadership level with numerous tier 1 national and international business organisations
addressing the complexities of issues management, communications, coaching and mentoring. She is a member of Chief
Executive Women, a former Telstra Business Woman of the Year (WA), a Fellow of the Australian Institute of Company Directors
as well as being a past Vice-President of the AICD (WA).
Directorships
Positions held by Ms Davies currently, or during the last three years, include:
director of Cedar Woods Properties Limited (ASX: CWP); 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 currently, or during the last three years, include:
director of Retail Food Group Limited (ASX: RFG);
director of The Reject Shop Limited (ASX: TRS);
director of A2B Australia Limited (ASX: A2B); 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
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 is currently a director of Les Mills International Limited and was previously a New Zealand Film Commission board
member.
Patria Mann BEc, FAICD
Independent non-executive director and Board member since 2013. Member of the Audit and Risk Committee.
Experience
An experienced non-executive director with 20 years’ board experience across various sectors and geographies. She has
significant insight and understanding of market development, business transformation, including digital and technological
change and mergers and acquisitions and financial transactions. She also brings strong ASX, audit, risk management and
governance experience. Mrs Mann qualified as a Chartered Accountant and was formerly a partner at KPMG. She is a Fellow
of the Australian Institute of Company Directors.
Directorships
Positions held by Mrs Mann currently, or during the last three years, include:
director of Ridley Corporation Limited (ASX: RIC);
director of Bega Cheese Limited (ASX: BGA); and
director of Allianz Australia Limited (retired 30 June 2020).
3 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
Directors’ qualifications, experience and independence status (continued)
D I R E C T O R S ’ R E P O R T
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 currently, or 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: AM Member of the Order of Australia; 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, ACG (CS, CGP) 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, ACG 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 2022 Corporate Governance Statement in the corporate governance section on its website
(https://www.evt.com/investors/). As required, the Group has also lodged the 2022 Corporate Governance Statement and Appendix
4G with the ASX.
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
AG Rydge
PR Coates
VA Davies
DC Grant
JM Hastings (b)
PM Mann
RG Newton
7
7
7
7
7
7
7
7
7
7
7
7
7
7
4
–
–
4
4
4
–
4
–
–
4
4
4
–
8
8
5
–
7
3
–
8
8
5
–
7
3
–
4
4
–
4
4
–
–
4
4
–
4
4
–
–
(a) Other special purpose committees were formed during the year to assist the Board with confirming final approval of the half year and year end
financial statements and its oversight of the CineStar Germany transaction.
(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.
4 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
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 2022 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;
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.
OPERATING AND FINANCIAL REVIEW
The result for the year ended 30 June 2022 represented a significant improvement on the prior year, despite the first half impact of
materially greater government lockdowns and restrictions in Australia and New Zealand, and the cessation of JobKeeper in Australia
in June 2021.
The Group’s normalised revenue was $953.8 million, up $300.6 million or 46.0%, and normalised earnings before interest, tax,
depreciation, amortisation, the impact of AASB 16 Leases and individually significant items (“EBITDA”) was $138.3 million, up $111.1
million or 408.1%. Excluding the benefit of the German government’s Bridging Aid programs, which principally relate to losses in the
prior year period associated with government mandated COVID restrictions, Group revenue was $890.8 million, up $237.6 million
or 36.4%, and EBITDA was $75.3 million, up $48.1 million.
As lockdowns and restrictions eased, the second half result demonstrated the strength of demand for the Group’s operating
divisions. Excluding the benefit of government subsidies, second half revenue was $486.0 million, up 31.4% on first half revenue of
$370.0 million and up 58.8% on the prior year second half.
The Entertainment businesses benefited from strong pent-up demand for the cinema experience, a growing preference for premium
experiences, and a desire to spend more on food and beverage. This was underpinned by the release and performance of key
blockbuster titles including Top Gun: Maverick and Spider-Man: No Way Home, which are now two of the top five highest grossing
titles of all time in the Australian market.
The Hotels result was a tale of two halves, with the first half materially impacted by lockdowns and restrictions, followed by a strong
second half recovery. Record rate growth was achieved, with the average room rate for the Group’s owned hotels up 5% on the
year ended 30 June 2019 (“FY19”), and the fourth quarter of the year up 23.3% on the comparable period in FY19. Demand continues
to grow steadily, assisted by the recent relaxation of New Zealand border restrictions, and the return of corporate travel.
Whilst Thredbo was materially impacted by the forced closure of the resort during the 2021 winter season, this was followed by a
strong second half result with normalised EBITDA of $6.3 million, up 6.0% on the prior year. The second half result reflects the
success of the Thredbo growth strategy including the expansion of the mountain biking experience and the new business model
which maximised the strong June 2022 pre-season snowfall.
The Group’s unallocated corporate costs increased $7.5 million to $20.2 million due to an increase in insurance premiums and the
cessation of JobKeeper. Underlying unallocated costs were 3.7% below FY19 unallocated costs, adjusting for the impact of insurance
premium increases and short term incentive payments.
The Group has exceeded its target to realise total gross proceeds of $250 million from the sale of non-core property assets following
the sale of The Miller Hotel (formerly Rydges North Sydney), which settled in July 2022. The hotel will be retained in the Group’s
portfolio under a management agreement. Total proceeds from the non-core property sales to date are $275.3 million, which
represents a premium of approximately 28% over the most recent valuations of the properties sold. The Group’s property portfolio
at 30 June 2022 has been independently valued at approximately $2.0 billion.
5 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
The normalised EBITDA result for the Group’s Property division was $7.8 million, down $9.0 million on the prior year, which included
a favourable investment property fair value adjustment of $6.8 million in relation to the Canberra Civic Building, which was sold
during the year.
The Group’s net debt at 30 June 2022, before the settlement of the sale of the North Sydney property, was $210.4 million, below
pre-COVID-19 net debt levels and significantly below net debt of $355.5 million at 30 June 2021. The enduring strength of the
Group’s balance sheet will enable the Group to invest for growth and capitalise on opportunities that may arise in the future.
The Group has continued to make progress with the two major development projects at 525 George Street and 458-472 George
Street, Sydney. The priority is 525 George Street, a mixed-use development including prime George Street retail space, a premium
Event Cinema, a 292-room hotel with conference space, and 115 residential apartments which are intended to be sold off-the-plan
to assist in funding the project. A Stage One Development Application has been approved and design competition completed, with
the Stage Two Development Application lodged in May 2022. The City of Sydney has approved a Development Application for the
podium component of the 458-472 George Street development, which will include ground floor retail space, an extension of the QT
Sydney hotel, conference centre and rooftop bar. In March 2022, the Group lodged a Stage One Development Application for a
commercial officer tower above the podium with 33 levels and approximately 35,000m2 of office space. The timing of
commencement of these developments will be subject to market conditions.
The Group continues to invest in its key hotel assets, including upgrades of Rydges Melbourne and QT Gold Coast, which are well
underway. During the year, the Group entered into an agreement to increase its interest in Rydges Latimer Christchurch from 16%
to 100% over a period of two years. The recently upgraded 175-room hotel opened in 2013 and has extensive conference and food
and beverage facilities, including the Bloody Mary’s restaurant, representing an excellent addition to the Group’s portfolio of owned
hotels.
The Group’s hotel strategy has evolved to include all segments of the market from luxury to budget accommodation. This evolution
is enabled through acquisition of key city assets, new management agreements for existing brands, acquisition of the innovative
market leading budget brand Jucy Snooze and the creation of The Independent Collection to better leverage the Group’s expertise
by introducing new and innovative hotel management and service models. The Independent Collection offers solutions to
independently branded luxury to budget hotel owners, and has grown to 12 hotels with the addition in the year of Hotel Motel
Adelaide, The Terrace Adelaide, and The Kennigo Hotel Brisbane, and the more recent addition post year end of The Miller Hotel
(formerly Rydges North Sydney), Arawa Park Hotel Rotorua (formerly Rydges Rotorua) and Hotel Totto, located in Wollongong. A
new flagship Jucy Snooze property is due to open in Auckland later this year.
Employee engagement continues to be a key area of focus in the context of the need to rebuild teams post COVID-19 mandated
closures, a competitive market, and the impact of staff absenteeism due to COVID-19 and influenza. These challenges are being
managed as effectively as possible, and the Group’s unique value proposition is being leveraged to appeal to candidates, in particular
the ability to offer benefits such as flexible work options, wellbeing programs and a broad range of experience perks. Employment
engagement is actively measured through internal surveys, and the Group’s employee net promoter score measures favourably
against comparable companies in similar industries. Employee engagement is enhanced and supported by a focus on diversity and
inclusion and the Group has increased the percentage of female employees in senior executive positions to 38%, with 51% of all
Group employees being female.
The Group has transformed during the COVID period and is ready to leverage the significant improvements made. This includes
repositioning the Group to better reflect extensive expertise across the Entertainment businesses, Ventures for growth and the
Travel businesses. To better reflect the Group’s strategy and operations, the Board has approved a change of the Company’s name
to EVT Limited, subject to shareholder approval. This new corporate identity will also assist in raising awareness of the Group’s
ELEVATE programme including its people, community, and environment strategic initiatives. This repositioning will also provide
more insights for partners and investors to enhance the appeal of the Group and increase the attractiveness of the Group for new
talent that may consider joining.
In relation to the ELEVATE our environment strategy, a climate related risk and opportunity assessment has been completed and
the results of this assessment are set out below on pages 24 to 28 of the Directors’ Report. The Group remains on track to fully align
with the Task Force on Climate-related Financial Disclosures (“TCFD”) framework by no later than the year ending 30 June 2024
(“FY24”). The Group has also disclosed specific and measurable sustainability goals for the year ending 30 June 2023 (“FY23”),
achievement of which now form part of the short-term incentive framework for the CEO and other key management personnel and
executives.
6 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
FY23 outlook
The financial year has started positively with key blockbuster titles continuing to perform well into the July school holiday period in
Australia and New Zealand, growing demand for the Group’s Hotels, and similarly strong demand for Thredbo despite limited natural
snowfall since early June 2022.
The Entertainment Group’s performance will be subject, as always, to the overall appeal of the film line-up, with limited blockbuster
releases scheduled for August and September 2022, and only partial visibility on titles to be released in the second half of the year.
The long-anticipated release of Avatar: The Way of Water is expected to underpin performance over the key December and January
trading period. When blockbuster titles are released, the Group expects to continue to benefit from its new operating model with
improved margins.
Demand for the Group’s Hotels continues to grow, with record average room rates being achieved on steadily growing occupancy.
Continued recovery in corporate travel and the return of international travel are expected to assist in recovery for FY23. However,
it is anticipated that a full recovery of the hotels market will be dependent on airlines returning to a pre-COVID model. The industry
has indicated through various reports an estimated recovery in FY24.
A solid winter 2022 result is expected for Thredbo with the Group’s new business model delivering pleasing results following
excellent early season snowfall. Summer performance is expected to be relatively in line with the year ended 30 June 2022, subject
to weather conditions.
The Property segment result will continue to track below the year ended 30 June 2022 following the completion of non-core property
sales.
Headwinds anticipated in the year ahead include energy cost increases, particularly in Germany, and other inflationary cost increases
including in salaries and wages, food and beverage, and cinema rents linked to the Consumer Price Index. From a corporate
perspective, the investment required in compliance and risk management continues to grow, whilst the Group is also investing in
its sustainability initiatives. Whilst it appears that most government mandated closures and restrictions may now be in the past, the
Group’s operating divisions continue to be exposed to the risk of any reintroduction of such measures in response to future COVID-
19 infection waves.
The transformation across the Group throughout the pandemic has been material from new business models to increased adoption
of customer and business technology. The Group has a strong foundation for the future and greater agility to respond to market
challenges.
7 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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8
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)
2022
987,794
33.1
–
–
2021
692,474
(29.8)
–
–
2020
1,030,921
(35.4)
33,851
21
2019
1,304,288
69.6
83,822
52
2018
1,289,738
69.8
83,670
52
(a) No dividends were declared in relation to the 30 June 2022 and 30 June 2021 years. No final dividend was declared in relation to the year ended 30 June 2020.
Individually significant items
Individually significant items comprised the following:
Profit on sale of properties
Reversal of impairment charges booked in previous years
Impairment charges
Disposal of assets on redevelopment or damage
Restructure costs, redundancies and staff retention costs arising as a result of COVID-19
Legal and other costs associated with the sale of a business segment
Other expenses (net of income items)
Individually significant items before tax
Income tax expense
Individually significant items after tax
2022
$’000
2021
$’000
28,212
1,548
(6,148)
(5,156)
(3,723)
(810)
(800)
13,123
(2,582)
10,541
35,205
3,997
(9,920)
–
(5,895)
(4,683)
(4,794)
13,910
(2,136)
11,774
Investments
The Group acquired property, plant and equipment totalling $98,247,000 during the year. The significant acquisitions and capital
additions include the following:
hotel refurbishments at Rydges Melbourne and QT Gold Coast;
cinema refurbishments at EVENT Shellharbour in New South Wales, EVENT Innaloo in Western Australia and EVENT Queensgate
in New Zealand; and
other refurbishment requirements for Thredbo, cinemas, hotels and resorts.
On 30 September 2021, the Group acquired an additional 54% interest in Rydges Latimer Holdings Limited (“Latimer”) taking the
Group’s total ownership interest in Latimer to 70%. Prior to the acquisition, the Group had owned a 16% interest in Latimer that
had been acquired in August 2017. Latimer owns and operate the Rydges Latimer Christchurch hotel. The net consideration paid for
the acquisition of 54% of the total share capital of Latimer was NZ$14,208,000 (A$13,614,000). Further information relating to the
acquisition has been outlined within Note 5.1 to the financial statements.
Property
The Group has exceeded its target to realise total gross proceeds of $250 million from the sale of non-core property assets following
the sale of The Miller Hotel (formerly Rydges North Sydney), which settled in July 2022. Total proceeds from the non-core property
sales to date are $275.3 million, which represents a premium of approximately 28% over the most recent valuations of the properties
sold. 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.
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 $2,014,182,000 (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 2022 was $1,074,990,000.
9 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
The total value of the Group’s properties as at 30 June 2022 included:
D I R E C T O R S ’ R E P O R T
Valuation of:
Interest in land and buildings
Investment properties
Assets held for sale
Less: assets subsequently sold
Total
Valuations
2022 (a)
$’000
Carrying value
2022
$’000
1,935,287
6,300
72,595
2,014,182
(66,000)
1,948,182
1,052,032
6,300
16,658
1,074,990
(14,126)
1,060,864
Valuations
2021 (a)
$’000
1,965,563
64,500
27,380
2,057,443
(158,464)
1,898,979
Carrying value
2021 (a)
$’000
1,030,447
64,500
17,973
1,112,920
(96,477)
1,016,443
(a) Valuations are based on independent valuations (as outlined in Note 3.3 to the financial statements).
Capital structure
Cash and term deposits at 30 June 2022 totalled $175,158,000 (2021: $120,978,000) and total bank debt outstanding was
$385,562,000 (2021: $476,428,000).
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 2022, the Group had no interest rate hedges (2021: nil).
Liquidity and funding
As at 30 June 2022, the Group’s secured bank debt facilities was comprised a $650,000,000 revolving multi-currency loan facility
and a $2,500,000 credit support facility (for the issue of letters of credit and bank guarantees). The debt facilities mature on 3 July
2023 and 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 and $2,500,000 credit support facility. In relation to
the non-revolving loan, the Group repaid and cancelled $43,500,000 (2021: $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 3.60% per annum. As at 30 June 2022, the Group had drawn $365,510,000 (2021: $476,428,000) under the loan facilities
and $1,349,000 under the credit support facility (2021: $1,225,000).
Cash flows from operations
Net cash inflows from operating activities as reported increased to $279,907,000 from $148,137,000 in the prior year. After
adjusting to include the payment of lease liabilities, net cash inflows from operating activities increased to $175,631,000 from
$45,412,000 in the prior year. This movement was driven by the recovery in the Group’s trading operations, particularly in the
second half of the year.
Impact of legislation and other external requirements
From March 2020, a number of statutory requirements were 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 were developed for
each of the Group’s operating divisions. In addition, to ensure these plans were 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.
10 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
REVIEW OF OPERATIONS BY DIVISION
Entertainment Australia
As at 30 June
Cinema locations*
Cinema screens*
2022
68
658
2021
Movement
71
680
(3)
(22)
* Managed and joint venture cinema sites (excludes Moonlight Cinema sites and screens and the State Theatre).
Entertainment Australia revenue was $318.6 million, a 45.3% increase on the prior year. Excluding JobKeeper which benefited the
prior year, revenue increased 71.7% on the prior comparable period.
The first half of the year was disrupted by the various state government mandated closures and COVID-19 operating restrictions,
with the majority of these in NSW and VIC as outlined below.
NSW: Greater Sydney was locked down from 1 July to 10 October, whilst Newcastle and certain other regional areas were
locked down from 9 August to 10 October. Capacity restrictions, mandatory face masks and vaccine certificate
requirements applied following reopening from 11 October.
VIC: Greater Melbourne was locked down from 6 August to 29 October, with regional areas locked down from 22 August
to 27 September. Capacity restrictions applied during the first two weeks of November, and mandatory face masks and
vaccine certificate requirements also applied.
QLD: Brisbane sites were only closed for nine days in the year, and Gold Coast sites were closed for seven days in the year.
Capacity restrictions were lifted in December 2021 in conjunction with the introduction of vaccine certificate requirements.
Mandatory face mask requirements also applied.
SA: An eight-day lockdown was in place at the end of July, whilst capacity restrictions were in operation from August
through to May 2022. Mandatory face mask requirements also applied.
WA: There were no closures during the period, and capacity restrictions were in place for the first two weeks of July and
also for three weeks in January 2022. Mandatory face mask requirements also applied.
Despite the increased restrictions, the Australian box office increased by 73.4% on the prior year, noting that the prior year was
impacted by studios delaying blockbuster releases due to COVID-19 related global cinema closures. The Group’s box office revenue
increased by 83.2% on the prior year. During the period, eight titles were released that grossed over $20 million each, compared to
only five titles in the prior year. The increase in blockbuster films resulted in the top 10 films grossing $370.5 million, an increase of
103.4% on the collective gross of the top 10 titles in the prior year. For the two key trading months of December and June, the Group
box office revenue was back in line with pre-COVID levels. For December, the Group box office revenue was down only 2% on
December 2018, and without the impact of the Omicron wave in late December the Group’s month of December 2021 box office
revenue would have exceeded the December 2018 month. For June, the Group box office revenue exceeded June 2019 by 9.7%.
Top Gun: Maverick (released 28 May) has cumulatively grossed $87.7 million making it the third highest grossing film in Australian
history and Spider-Man: No Way Home (released 16 December) grossed $81.0 million making it the fifth highest grossing film and
grossing 117.4% more than the previous Spider-Man title (Spider-Man: Far from Home). Doctor Strange in the Multiverse of Madness
(released 5 May) grossed $38.2 million, 82.4% more than the previous Doctor Strange title and No Time to Die (released 11
November) grossed $36.1 million at the Australian box office, which is in line with the previous James Bond title, Spectre ($35.7
million). Fewer government mandated COVID restrictions were in effect when these films were released, and there was an
immediate return of customers to cinemas.
Premium concepts were strongly favoured by customers, with admission contribution from premium concepts increasing by 6.5
percentage points over the prior year. The premiumisation strategy resulted in a record yield result with average ticket price
increasing by 17.7% over the pre-COVID FY19. In addition, a period of record merchandising spend per head was achieved, increasing
18.4% over the prior year and by 48.9% over the pre-COVID FY19.
The Group’s direct customer relationships remain exceptionally strong with Cinebuzz representing 68% of cinema visits and 84% of
online transactions.
The new variable operating model resulted in a significantly improved result for the period over the comparable prior period. As a
result of the premiumisation strategy and new operating model, growth in cinema EBITDA margin of 3.8 percentage points was
achieved in June 2022 when compared to the pre-COVID-19 June 2019 month.
11 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
The overall normalised EBITDA profit for the year ended 30 June 2022 was $30,446,000, which compared favourably with an EBITDA
loss of $3,280,000 in the prior comparable period, an improvement of $33,726,000.
During the year, the Group completed the premiumisation upgrade to the eight screen Shellharbour (NSW) complex. This included
a new self-service Marketplace and the remaining six auditoriums were refurbished with either the new three seat concept format
of daybeds, reclining seats and premium fixed back seating or two seat concept with reclining seats and premium fixed back seating
introduced. The key sites at Chermside (Brisbane) and Innaloo (Perth) are currently being refurbished.
As part of the pre-COVID-19 strategy to divest or close the underperforming cinemas in the portfolio, the Group exited the leases at
BCC Coolangatta (6 screens) in March and BCC Morayfield (eight screens) in April. The eight screen BCC Toombul complex was flood
damaged in February and closed; because of this event, the landlord for the Toombul Shopping Centre subsequently announced
closure of the entire centre and the lease was terminated in June. At year end, the four screen cinema at Lismore is currently closed
after being flood damaged in February and the three screen cinema at Wollongong is also closed after sustaining significant storm
damage in February.
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.
2022
20
140
2021
Movement
20
140
–
–
Entertainment New Zealand revenue was $58.2 million or 39.6% up on the prior year, and excluding government wage subsidies
revenue increased 35.9%. The impact of the New Zealand Government COVID-19 restrictions and closures was more significant in
the year ended 30 June 2022 than it had been in the prior year; in the prior year, cinemas remained open with the exception of the
mandated closure of the Auckland cinemas for a 19-day period in August, whilst in the current year there was a nationwide shutdown
for 21 days and Auckland shutdown for a further 107 days.
Despite the increased impact of COVID-19 restrictions in New Zealand, nationwide box office increased by 39.5% over the prior year.
As in Australia, the prior year was impacted by studios delaying blockbuster releases due to COVID-19 related global cinema closures.
There were five titles that grossed over $4 million each at the New Zealand box office during the year: Spider-Man: No Way Home
(NZ$11.6 million); Top Gun: Maverick (NZ$10.8 million); Doctor Strange in the Multiverse of Madness (NZ$6.1 million); No Time to
Die (NZ$5.7 million); and The Batman (NZ$4.4 million), compared to only one title in the prior year. The return of blockbuster films
resulted in the top 10 grossing $55.8 million, an increase of 82.7% on the collective gross of the top 10 in the prior year.
The top four films were sequel titles, all of which performed very well when compared to the prior release in the respective series.
For the titles with comparatives, Spider-Man: No Way Home grossed NZ$11.6 million which is 110.6% up on the prior Spider-Man
title (Spider-Man: Far from Home); No Time to Die grossed NZ$5.7 million, only 2.6% down on the prior James Bond (Spectre), despite
releasing whilst Auckland cinemas were mandated to close; and Doctor Strange in the Multiverse of Madness grossed NZ$6.1 million
up 94.4% on the prior Doctor Strange title.
As evidenced in Australia, the ‘Cinema of the Future’ premiumisation strategy resulted in customers spending more per visit and the
operational model changes reduced the cost to serve whilst customer sentiment improved relative to the pre-COVID period. These
initiatives resulted in average ticket price increasing by 31.1% over the pre-COVID FY19 with every month representing a record for
that month. In addition, a record period of merchandising spend per head was achieved, up 14.1% on the prior year and up 43.1%
on pre-COVID spend per head. Cinebuzz maintained its strong influence, with Cinebuzz representing approximately 76% of all online
transactions.
The EBITDA result for the year ended 30 June 2022 was a profit of $1,760,000, which was a significant improvement on the EBITDA
loss of $3,120,000 in the prior year.
Entertainment Germany
As at 30 June
Cinema locations*
Cinema screens*
* Managed and joint venture cinema sites.
12 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
2022
48
376
2021
Movement
49
384
(1)
(8)
D I R E C T O R S ’ R E P O R T
The Entertainment Germany division reopened on 1 July 2021 following an eight-month closure period from November 2020 to June
2021. Initial trading results have been encouraging despite the capacity restrictions applicable across the various German states.
“3G” rules, referring to the German words geimpft (vaccinated), getestet (tested) and genesen (recovered), applied in certain regions
and required customers admitted to a cinema provide evidence that they were vaccinated, had a recent negative COVID-19 test, or
had recovered from COVID-19. This changed to a “2G+” rule across a number of states requiring customers to show evidence of
vaccination and a negative COVID test. Furthermore, as a result of the Omicron outbreak, approximately 16% of screens across the
Cinestar circuit were mandated to close during part or all of December and January. All screens have reopened as at the end of
January 2022, and “2G” rules were no longer applicable from 27 April 2022.
The highest grossing titles within the German market included: No Time to Die (6.01 million admissions), an outstanding result and
the best performing title in the German market since the pre-COVID-19 release of Frozen 2; Spider-Man: No Way Home (4.54 million
admissions), the second-best performing Marvel title in Germany of all time after Avengers: Endgame; and Fantastic Beasts – The
Secrets of Dumbledore (2.82 million admissions). The top 10 films achieved total market admissions of 26.24 million, which was
407.0% higher than the prior year, noting that cinemas were closed in Germany in November 2020 through to the end of June 2021.
Merchandising spend per head increased by 17.6% over the prior year and by 29% over the pre-COVID FY19.
Given the extended lockdown period in Germany in the prior year and access and capacity restrictions during most of the year, the
Group mitigated some of the financial impact with active cost management initiatives and pursuing available German government
subsidies. Subsidy programs included a damage compensation program for affected businesses for the November and December
2020 lockdown period, a subsidy program for the January to September 2021 period referred to as Bridging Aid III, and a subsidy
program for the January to June 2022 period referred to as Bridging Aid III+ and Bridging Aid IV. Furthermore, the Group has received
support under the German Government’s Culture Fund, which provides compensation in cases where a spike in coronavirus
infections forces events to be cancelled, postponed or capacity restricted, and the venue is not mandated to close.
Entertainment Germany revenue was $283.6 million, including government subsidies, which was 224.1% above the prior year.
Excluding the Bridging Aid programs, which relate to material COVID-19 related losses principally incurred in the year ended 30 June
2021, Entertainment Germany revenue was $220.6 million, 152.1% above the prior year. EBITDA for year was $75.6 million, which
compared favourably with an EBITDA loss of $33.6 million in the prior year, an improvement of $109.2 million. Excluding the German
Government’s Bridging Aid programs, EBITDA was $12.6 million or $46.3 million above the prior year.
Hotels and Resorts
As at 30 June
Locations*
Rooms*
Locations (owned)
Rooms (owned)
2022
71
11,109
23
3,547
2021
Movement
70
11,071
25
3,705
1
38
(2)
(158)
* Owned, managed and other hotels with which the Group has a branding, license or affiliate agreement.
Overall Hotels and Resorts revenue was $217.7 million, an increase of 7.4% on the prior year. Revenue was up 16.4% to $216.0
million excluding government subsidies received in the prior year.
Two diametrically opposed half year periods characterised the result. Trade was suppressed in the first half by the longest and
harshest government-imposed border closures and lockdowns since the onset of the COVID-19 pandemic. Conversely, high
community-wide vaccination rates enabled the easing of restrictions and the progressive opening of travel markets throughout the
second half. A solid recovery followed, particularly in the final quarter of the year.
Government wage subsidies across Australia and New Zealand declined by $11.1 million over the prior year and EBITDA of $26.6
million declined over the prior year by $6.9 million or 20.5%, whilst normalised profit before interest and income tax expense was a
loss of $1.2 million, $7.1 million below the prior comparable period. Excluding the net benefit of government subsidies received in
the prior year, underlying EBITDA increased 20.6%.
Occupancy in the Group’s owned hotels was 46.7% with a revenue per available room (“revpar”) of $86. Occupancy was down on
the prior comparable period by 5.0 percentage points, whilst revpar decreased by 2.3%. There was a strong escalation in the average
room rate, up 8.2% on the prior year, and on a like-for-like basis, the average room rate was up 5% on the pre-COVID FY19 year.
13 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
Recovery momentum is evident throughout the result, best illustrated by the contrast between the first half EBITDA loss of $1.9
million, compared to second half EBITDA profit of $29.8 million. The fourth quarter of the financial year was especially pleasing, with
EBITDA on a like-for-like basis excluding divested properties exceeding the comparative fourth quarter of FY19, and margin
approaching FY19 levels. Record average room rate performance was achieved across the Group, average room rate growth of 23.3%
and revpar growth of 16.3% was achieved on the comparable period in FY19.
As volatility in trading levels eased, the Group’s hotels began the journey towards normalised operating rhythms. The continued
application of new operating models, originally deployed in the early stages of the pandemic, assisted in enabling tight management
of the emerging inflationary impacts on costs. These factors, combined by record levels of rate growth in the second half, saw rooms
and food and beverage margins trend up.
At a brand level, Rydges, QT and Atura hotels continue to attract greater than fair market share. Performance across the portfolio
was underpinned by continued strong growth from the domestic leisure segment and a recovery in corporate travel. In addition, the
return of conference and events business became evident in the latter part of the year.
Technological innovations, designed to improve efficiencies and the guest experience, continue to be rolled out, including advanced
management reporting tools, automated check in kiosks and in-hotel guest digital applications.
The Group’s hotel strategy has evolved to include all segments of the market from luxury to budget accommodation. The
Independent Collection has been created to better leverage the Group’s expertise by introducing new and innovative hotel
management and service models. The Independent Collection has grown to 12 hotels with the addition in the year of Hotel Motel
Adelaide, The Terrace Adelaide, and The Kennigo Hotel Brisbane, and the more recent addition post year end of The Miller Hotel
(formerly Rydges North Sydney), Arawa Park Hotel Rotorua (formerly Rydges Rotorua) and Hotel Totto, located in Wollongong. The
Group will be opening a new flagship Jucy Snooze location in Auckland later this year.
In addition to the new hotels referenced above, three additional properties will join the Group early in FY23: Rydges Darling Square
Sydney (formerly Radisson), Rydges King Square Perth (formerly Peppers) and Rydges Rotorua (formerly Holiday Inn).
Consistent with the Group’s strategy of divesting or upgrading older assets, Rydges hotels in Bankstown and North Sydney were sold
during the period with total proceeds of $103 million. Both properties have been retained within the Group under management
agreements.
Major refurbishments of QT Gold Coast and Rydges Melbourne are underway. The Gold Coast refurbishment is due for completion
later in the 2022 calendar year, whilst Rydges Melbourne, which is currently closed, is expected to reopen late in FY23.
Thredbo Alpine Resort
The full year result for Thredbo was a tale of two seasons. Winter revenue was materially affected by COVID-19 related government
mandated restrictions which resulted in total closure of the resort in August 2021 for five peak trading weeks. This was the first time
in Thredbo’s history that winter operations had ceased for an extended period. As a result, skier days were down 55.7% on the prior
year. The continued expansion of the mountain biking offer resulted in 24.8% growth in Mountain biking revenue. Reported EBITDA
for summer of $7.4 million included $7 million of revenue from property sales. On an adjusted basis, this was only the second time
in Thredbo’s history that the summer months have been profitable.
The strong response by management in developing industry leading COVID-19 practices and defining the business model enabled
Thredbo to operate very efficiently and safely as restrictions eased. COVID-19 and influenza have continued to challenge staffing
levels particularly in food and beverage venues and strategies have been deployed to minimise any impact. All other parts of the
business are fully staffed.
The success of the Group’s new business model is now being reflected year-round. Customer sentiment remained high with an
improved net promoter score across winter and into the summer months. Winter trade in June showed revenue growth across all
areas of the business based on the continued success of this model and solid opening weekend conditions.
As part of the property development strategy, the Group continues to unlock value from unutilised bed rights at Thredbo. During
the period, the Group agreed terms for the development of two separate lots, realising total revenue of $7.0 million. Further
initiatives are in progress to unlock more development opportunities.
EBITDA for the full year was $16.3 million, 45.3% below the prior comparable full year, and the normalised profit before income tax
expense was $11.3 million, 55.0% below the prior comparable full year result. This was a solid result in the context of the COVID-19
closures outlined above.
14 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
Progress continues to be made with Thredbo’s strategic growth plan. Construction of a further three mountain bike trails in the
Cruiser area has commenced, with completion scheduled for prior to the 2022/23 summer season. Major upgrades to the
snowmaking system including pipe replacement and the installation of 10 new snowmaking fan guns on Friday Flat were completed
in time for the 2022 winter season. The proposed Alpine Coaster installation is expected to add a further year-round attraction to
the resort and is scheduled to be completed for the 2024 winter season. Preparatory work has commenced for the replacement of
the two-seater Snowgums chairlift with a new six-seater chairlift, with construction scheduled for completion for the 2025 winter
season.
Property and Other Investments
The Group has exceeded the goal of $250 million gross proceeds (before selling costs and tax) from non-core asset disposals following
the settlement of the sale of The Miller Hotel (formerly Rydges North Sydney) on 25 July 2022 for $75 million, with total gross sale
proceeds since commencement of the non-core asset divestment strategy of $275.4 million. To date, the total gross proceeds
achieved from this strategy have exceeded the most recent valuations by 28%.
The other assets sold in the year were Rydges Bankstown, Canberra Civic (commercial office), Newcastle Cinema (cinema operations
ceased in 2020), Hindley Street Adelaide (cinema operations ceased in 2020) and the management rights and associated property
relating to QT Falls Creek. As noted above, the Group has maintained management agreements for The Miller Hotel under the
Independent Collection by Event (formerly Rydges North Sydney) and Rydges Bankstown.
The Group has continued to make 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 and design competition completed 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 (560m2), a five-screen cinema complex, and a tower including a new hotel with 292 rooms, conference
centre, 115 residential apartments and 165 car parking spaces. The Group submitted its Stage Two Development Application in May
2022 and anticipates final approval in FY23. Detailed interior design work is now in progress. Subject to market conditions and the
success of residential sales, construction is targeted to commence at the end of FY24 or early in the year ending 30 June 2025, with
completion estimated in the year ending 30 June 2028.
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 Stage One Development Application
was lodged in March 2022 for a commercial office tower above the podium with 33 levels and approximately 35,000m2 of commercial
office space. Timing of the development will be subject to market conditions, noting that following the Stage One Development
Application approval of the commercial tower component, a Design Competition and a Stage Two Development Application process
will be required. It is anticipated that should the Group proceed with the commercial office tower development, a joint venture
partner will be identified to assist in funding and developing the commercial office tower component.
Segment revenue was down 49.0% to $11.2 million, primarily due to the property divestments of Canberra Civic in the current year
and the Forum Brisbane and Double Bay buildings in the prior year. The normalised profit before interest and income tax expense
of $5.7 million was 59.6% below the prior year.
Unallocated revenues and expenses
Unallocated corporate costs increased $7.5 million to $20.2 million due to an increase in insurance premiums and the cessation of
JobKeeper. Underlying unallocated costs were 3.7% below FY19 unallocated costs adjusting for the impact of insurance premium
increases and short term incentive payments. No short term incentive payments were made to key management personnel in the
year.
15 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
BUSINESS STRATEGIES
The Group’s business is comprised of:
Entertainment – including cinema operations in Australia, New Zealand and Germany, restaurants, bars and wellness offerings
such as spas and golf courses.
Ventures – including the management and development of the Group’s property portfolio, valued at around $2 billion, hotel
management solutions, joint venture partnerships, and business customers for media and entertainment technology.
Travel – including the Group’s hotel operations, from luxury to budget accommodation, and Thredbo Alpine Resort for year-
round recreation and adventure activities.
To better reflect the Group’s strategy and operations, the Board has approved a change of the Company’s name to EVT Limited,
subject to shareholder approval.
The Group’s values of empowerment, possibilities and community enable it to drive positive employee engagement and fulfil its
purpose, which is to be leaders in creating experiences that escape the ordinary. Measuring and improving customer sentiment,
having a positive social impact in the communities in which the Group operates, and creating a better tomorrow through
environmental sustainability initiatives are at the core of how the Group operates and creates value for its stakeholders.
The Group’s strategy is visually represented below:
16 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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7
1
D I R E C T O R S ’ R E P O R T
MATERIAL RISKS AND OPPORTUNITIES
The Group’s principal business risks and opportunities are outlined below. The risks identified below may materially adversely affect
the Group’s business strategy, financial position or future prospects. It is not possible to identify every risk that could affect the
business and the actions taken to mitigate risks cannot provide absolute assurance that a risk will not materialise. Details of the
Group’s risk management framework can be found in the Corporate Governance Statement, available at www.evt.com/investors.
Key risks and
opportunities
Safety
Potential impact
How we are responding
is subject to
Safety and wellbeing remain the Group’s highest
inherent
priority. The Group
operational risks that could potentially result in
serious injury or fatality of employees, contractors
or members of
including an
earthquake, bushfire or extreme weather event, a
terrorist incident, a fire at one of the Group’s
locations, a
food poisoning outbreak, an
avalanche or landslide, and a lift incident or
failure.
the public,
Pandemics
As COVID-19 has demonstrated, a pandemic,
epidemic or flu outbreak has the potential to
the Group’s operations,
materially
including due to government mandated closures
or domestic or international travel restrictions.
impact
People
A failure to attract, develop and retain high
performing individuals could adversely impact the
Group’s ability to achieve its strategic objectives,
including due to the loss of key staff and labour
shortages in key roles. In addition, the Group
operates in industries that have an elevated risk
of the underpayment of staff, including the
hospitality industry.
Capital Management
Maintaining an appropriate capital structure,
and
consideration of hedging exposures
strategies,
compliance with banking
covenants will enable the Group to achieve its
future strategic objectives, including the planned
major property developments.
and
18 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
The Group’s highest priority is the safety of all
those impacted by its operations, including the
Group’s employees, guests, contractors, and the
communities in which it operates. The Group has
implemented a comprehensive and robust safety
management system which was independently
reviewed in the year ended 30 June 2020, and an
update of this review is currently in progress. The
Group monitors and reports on safety metrics
which measure work-related injuries and lost
time, with regular reporting to the Board.
In response to COVID-19, detailed COVID-19
safety plans and staff training programs were
developed for, and implemented by, each of the
Group’s operating divisions. In addition, to ensure
these plans were consistent with best practice in
Australia, advice was also sought from infectious
implemented a
diseases experts. The Group
comprehensive
internal and external audit
process to ensure that each location complied
with the relevant COVID-19 safety plans. The
operational and financial impacts of COVID-19
were partially mitigated by the development of
new, more flexible operating models, delivering
cost savings during periods of forced closure or
restricted trading. It is anticipated that similar
strategies may be adopted in response to a future
pandemic, if required.
The Group considers that its ability to attract,
develop and retain high-performing individuals is
a competitive advantage and key to achievement
of its strategic objectives. The Group regularly
monitors and measures employee engagement
through internal surveys. The Group has also
undertaken talent management and succession
planning processes to identify high potential
employees and prepare successors for senior
executive positions. The Group has implemented
a comprehensive and robust system to manage
compliance with employment
including
modern awards and enterprise bargaining
agreements, and this system is subject to periodic
external reviews.
law,
The Group has implemented detailed treasury
policies and procedures to manage and monitor
compliance with banking covenants and hedging
policies approved by the Board.
Key risks and
opportunities
Property Values
D I R E C T O R S ’ R E P O R T
Potential impact
How we are responding
The Group’s property portfolio has a fair value at
30 June 2022 of approximately $2.0 billion. Whilst
the majority of the portfolio remains core to the
Group’s operations, a decline in property values
may negatively impact market perception of the
Group’s value and share price.
The Group has recently completed a successful
divestment of non-core properties, realising
proceeds to date of $275.3 million, representing a
premium of 28% over the most recent valuations
of the properties sold. Substantially all the
remaining Group properties remain core to the
the Group’s
Group’s operations,
exposure
in property
valuations.
reducing
to cyclical changes
The Group maintains a comprehensive insurance
program including in respect of property damage
and business interruption. Independent insurance
valuations are obtained periodically to ensure that
declared insurance values remain appropriate.
Due to the exposure of certain Group properties
to an elevated risk of earthquake or flood,
increased deductibles or reduced policy limits
may apply for certain categories of events at
certain locations.
The Group has limited ability to mitigate exposure
to its reliance on global film release dates and
cinema release windows, other than through
programming of local and alternative content
which may be expected to result in generally
lower admission levels when compared with
blockbuster Hollywood film content.
The Group maintains proactive and constructive
relationships with its key partners, and where
appropriate seeks to develop relationships with
other potential partners to assist in mitigating the
impact of a future breakdown in relations with
existing partners.
Property Resilience
The Group is subject to inherent operational risks
that could potentially result in damage or loss of
one or more of the Group’s properties, including
because of earthquake, bushfire or extreme
weather event, a terrorist incident, a fire at one of
the Group’s locations.
Interruption to Film
Product Supply and a
Shortening of the
Cinema Release
Window
Customers, Partners
and Competitors
The Group’s Entertainment division is reliant on a
high-quality global film release schedule, which
may be disrupted including due to a pandemic, a
deterioration in international relations and war,
geo-economic breakdown or collapse, or a change
in strategy by one or more of the major film
production studios. In addition, a shortening of
the cinema release window could reduce the
appeal of cinema for customers.
Increasing
The Group operates
in highly competitive
markets, and customers have alternatives to the
Group’s entertainment and travel products and
services.
intensity of competitor
activity could affect the Group’s market share. The
Group also maintains key strategic relationships
with partners including joint venture partners and
hotel owners, and a deterioration in relations with
those partners may negatively impact on the
Group’s ability to meet its strategic objectives.
Supply Chain
The Group is reliant on a broad range of suppliers
providing a diverse range of goods and services.
An interruption to supply of key products may
negatively impact on the Group’s operations or
program of property developments, upgrades,
and refurbishments. The Group’s supply chain
may also include risks associated with modern
slavery or environmental sustainability.
The Group maintains proactive and constructive
relationships with key suppliers. The Group
identifies key supplier risk and where appropriate
develops contingency plans and alternative
suppliers for key products and services. The
Group’s response to the risk of modern slavery is
set out
its Modern Slavery Statements,
available at www.evt.com/investors.
in
19 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
Key risks and
opportunities
Cyber Security and
Data Privacy
Legal and Regulatory
Compliance
Environmental
Sustainability and
Climate Change
D I R E C T O R S ’ R E P O R T
Potential impact
How we are responding
The Group applies the National Institute of
Standards and Technology Framework and has
implemented a cyber security program that is
subject to periodic external reviews. The Group
has a robust information and cyber security and
data governance strategy and framework which
are subject to periodic testing, review and
enhancement. Information technology general
controls testing, including business continuity and
disaster recovery, and penetration testing are
performed annually.
The Group has implemented a comprehensive
compliance management framework, including
policies, procedures, training, and exception
reporting.
compliance management
framework is subject to periodic internal and
external review. Any exceptions are reported to
the Board, together with remediation action
plans.
The
further
The Group has begun responding to the TCFD
recommendations and
information
regarding the Group’s response to climate-related
risks and opportunities is set out below. The
Group has
risk
management framework to manage compliance
with its specific environmental obligations in
Thredbo.
implemented
robust
a
The unauthorised access to, or use of, the Group’s
information technology systems could adversely
impact the Group’s ability to serve its customers
or compromise customer or employee data,
resulting in reputational damage, financial loss or
adverse operational consequences.
Group’s
legal regimes and
The Group operates in several geographic regions
with differing
legislative
requirements. A failure to comply with regulatory
obligations and local laws could adversely affect
the
financial
operational
performance and its reputation. The Group is also
required to maintain compliance with key leases
and other contracts, some of which are critical to
the ongoing operation of its businesses. A failure
to maintain compliance with key leases and
contracts may have a material adverse impact on
the Group’s operations.
and
The Group’s assets and operations are exposed to
risks associated with climate change, including
physical risks, such as an increase in frequency
and severity of severe weather events and a
reliance on natural snowfall in Thredbo, and
transitional risks, such as the imposition of a
carbon price. Physical climate-related risks may
increase the cost of
in
underinsurance of assets in the future. In addition,
the Group is exposed to specific environmental
sustainability and compliance risks, including in
respect of the operation of a sewerage treatment
plant and compliance with water
licence
requirements in Thredbo.
insurance or result
ENVIRONMENTAL SUSTAINABILITY
The Group is focused on contributing to a sustainable future. Protecting the environment is important to the Group, its people,
customers, partners, and the communities in which it operates. Climate change presents risks and opportunities that may have a
material impact on the Group in the future. To address these risks and opportunities, the Group has developed a framework of focus
areas and goals for FY23 and has begun to respond to the TCFD framework, details of which are set out below.
Focus areas and goals for FY23
The Group’s environmental sustainability focus areas include:
sustainable practices and procurement;
sustainable design; and
transparency and reporting.
20 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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A summary of the goals developed for the year ending 30 June 2023 for each of these focus areas is set out in the table below:
Focus area
Goal
Goal description
Purpose
Level of
performance
Sustainable
practices and
procurement
Sustainable
design
Transparency
and reporting
Supporting our
focus areas
1
2
3
4
5
6
7
Reduce the environmental impact of
packaging across the Group and manage
waste in a sustainable way
Reduce energy and natural resource
consumption and purchase renewable
electricity
Reduce impact
Improve on current
state
Reduce impact
Improve on current
state
Obtain National Australian Built
Environment Rating System (“NABERS”)
ratings for owned property
Align with
standard
Benchmarked
Consider and target sustainable design
outcomes including appropriate
certifications for capital expenditure
projects
Respond to climate-related risks and
opportunities with TCFD reporting
Raise awareness for environmental
protection initiatives to support our
customers and team members
Strengthen the implementation of our
goals through integrated and
collaborative partnerships
Align with standard
Benchmarked
Align with standard
Benchmarked
Actively improve
Improve on current
state
Actively improve
Improve on current
state
An update regarding the Group’s response to climate-related risks and opportunities and the TCFD reporting framework has been
provided below. A further update regarding the Group’s progress with achieving the goals set out above will be provided in the 2023
Annual Report.
Transparency and reporting – carbon emissions
Set out below is a summary of the Group’s Scope 1 and 2 carbon emissions (tCO2e) for the financial year ended 30 June 2022. The
carbon emission data has been compiled based on information provided by the Group’s energy retailers and other relevant source
data and the location-based data has been independently verified. In some cases, careful estimates have been used for certain
locations and periods where source data could not be obtained prior to the finalisation of the Directors’ Report.
Total emissions (tCO2e)
Scope 1
Natural gas
Stationary fuels
Transport fuels
Other
Scope 2
Electricity (location based)
Less: renewable energy purchased
Total Scope 1 and market-based Scope 2
21 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
2022
11,415
2,986
257
1
14,659
110,118
124,777
(6,072)
118,705
D I R E C T O R S ’ R E P O R T
Total emissions (tCO2e) (continued)
Comprised of:
Australia (market-based)
New Zealand
Germany
Cinemas
Owned hotels
Managed hotels
Thredbo (market-based)
Other
2022
100,445
4,747
13,513
118,705
58,572
24,972
31,463
2,634
1,064
118,705
Note: Australian carbon emission data has been compiled using the National Greenhouse and Energy Reporting methodology and
emission factors and the Greenhouse Gas Protocol. New Zealand carbon emission data has been compiled using the New Zealand
Ministry for Environment Guidance for Voluntary Greenhouse Gas Reporting framework. German carbon emission data has been
compiled using emission factors obtained from the International Energy Agency. A market-based approach has only been applied to
Thredbo’s Scope 2 emissions.
The Group has yet to consider or quantify its indirect Scope 3 carbon emissions. The Group intends to undertake an assessment of
the boundaries for its Scope 3 carbon emissions during FY23.
The chart below illustrates the Group’s total Scope 1 and location-based Scope 2 carbon emissions over the past four years:
s
n
o
i
s
s
i
m
E
e
-
₂
O
C
t
l
a
t
o
T
l
a
u
n
n
A
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
FY19
FY20
FY21
FY22
Scope 1
Scope 2
It is important to note that the Group’s carbon emissions have reduced in the years ended 30 June 2020, 30 June 2021 and 30 June
2022 in part as a result of the impact of COVID-19 government restrictions and lockdowns that have required the temporary closure
of certain locations for certain periods from March 2020.
Energy efficiency initiatives, including the replacement of old plant and equipment with new more efficient models, and the
purchase of renewable energy through a sleeved power purchase agreement in relation to the Group’s Thredbo operations from 1
July 2019 have further supported a reduction in the Group’s net Scope 1 and market-based Scope 2 carbon emissions for the years
ended 30 June 2020, 30 June 2021 and 30 June 2022.
Transparency and reporting – climate change risk management
The Group accepts climate science and recognises that climate change is influencing both short term weather events and longer
term climatic trends. Society and economies are also responding to the changing climate, translating into policy and investment
22 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
decisions as well as shifts in consumer behaviours. It is expected that these climate transition responses will continue to occur in
the medium and long-term.
Climate-related risks could be both physical and transitional. Physical risks to the business could include severe weather events and
long term changes in regional climatic conditions. Transitional risks include those arising from shifts in policy, regulation, technology
or public perception of the Group’s business due to climate change.
The Group monitors and manages climate change risk through its established governance and review processes with oversight from
the Board, and Audit and Risk Committee, and the Group’s response to climate change risk is led by the CEO with support from the
Senior Leadership Team.
Within this context, the Board, CEO and Senior Leadership Team have committed to achieving full alignment with the TCFD
recommendations targeted for FY24.
In responding to the recommendations, the Group is seeking to enable shareholders to have a clear understanding of the material
climate risks and opportunities identified, how the business will manage the risks and opportunities of climate change while
providing confidence that the Group can continue to prosper over the long-term.
In the past year, the Group has undertaken climate-related scenario analysis for two distinct scenarios:
a “Fast Action” scenario where warming is limited to below 2oC above pre-industrial levels; and
a “Current Policy” scenario where warming exceeds 3oC above pre-industrial levels.
Key characteristics of the scenarios considered are summarised in the table below:
Fast Action(a)
Temperature outcome: <2oC warming by 2100
Current Policy(b)
Temperature outcome: >3oC warming by 2100
Fast curtailment of emissions from now
•
• High carbon price (>$100/t) and strict and coordinated
•
emissions reduction policy
Rapid decline in fossil fuel use and transition to
renewable energy
•
Fast transition of social norms towards green economy
• Mobilisation of private and public investment into
decarbonisation technology
• High levels of investment in abatement technology
• Worst physical
impacts avoided; however, some
physical impacts still present
• No additional climate policy action, or reversal of
•
•
•
current policy
Physical impacts are severe, with regular impacts to
built environments and flow-on economic damage
Fossil fuel consumption continues to grow out to 2050
in abatement technology, with
Little
investment
research and
adaptation being
development
focus of
the
• Most Australian capital cities will be hotter and drier,
•
with significant increases in heat waves
Economic decline hits developing world hardest;
however, developed economies also significantly
impacted
(a) The Fast Action scenario aligns with the Intergovernmental Panel on Climate Change’s Representative Concentration Pathway
(“RCP”) 1.9 (low warming) and Shared Socioeconomic Pathway (“SSP”) 1 (taking the green road).
(b) The Current Policy scenario aligns with RCP 8.5 (high warming) and SSP 5 (taking the highway).
Material risks and opportunities – key themes
The scenario analysis and identification of climate-related risks and opportunities for the Group has identified three key themes
related to the management of material risks and opportunities:
23 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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Property Resilience
Potential impact
The Group’s business relies on resilient physical
infrastructure. This resilience will be critical to
business continuity across both the Fast Action
and Current Policy scenarios, from managing the
impact of harsher and more frequent severe
weather events to enhancing the efficiency of
property under a carbon constrained scenario.
Thredbo
As previously identified and disclosed, Thredbo
Alpine Resort’s winter operations have a
particular exposure to physical climate impacts on
snowfall and temperatures, potentially limiting
periods during which snowmaking can operate.
Supply Chain
The nature of the Group’s operating businesses
means that a diverse supply chain is required.
Under both climate scenarios, supply chains will
experience a
risks and present
opportunities, particularly with regard to the
availability of key products, and the cost of those
products in the future.
range of
How we are responding
Consideration for physical impacts on the future
development of owned sites can mitigate
exposure to site damage or business interruption.
Additionally, providing spaces which customers
can utilise during periods of harsher weather can
enhance both the user experience of the Group’s
spaces and the revenue generated in different
businesses. The Group’s continued approach to
procuring renewable energy and
identifying
energy efficiency opportunities will mitigate
exposures to transition risks.
in
Advancements
technology may support
Thredbo to improve snowmaking capabilities,
long term
subject to water availability, and
climate projections are considered as part of
Thredbo’s future operating strategy.
In this
context, it is important to note that demand for
visitation and activities in the summer months has
grown in recent years, and there is potential for
demand to increase further due to Thredbo’s
comparatively cooler climate.
The Group remains resilient to supply shocks
across many of its businesses, and its ability to
forward plan has mitigated recent supply chain
risks and will be expected to support resilience
from physical risk shocks under future climate
scenarios. Increased climate impacts to food and
beverage products are also actively managed by
the Group through menu diversity and our
expanding network of local producers.
Summary of other climate-related risks and opportunities
Supporting these themes are seven climate-related risks and five climate-related opportunities which will have varied impacts on
the Group’s business, as set out in the table below. Whilst not currently material to the Group, management of the below risks is
critical to mitigating the potential future impact of these risks. Similarly, whilst the opportunities presented below are not currently
material individually, proactive management of the opportunities in aggregate may represent a material climate-related opportunity
for the Group.
Summary of other climate-related risks
TCFD Category
Scenario
Climate-related Risk
Key mitigating actions
1
Physical – Chronic
Fast Action
(below 2oC)
Current Policy
(above 3 oC)
Physical climate impacts on
snowfall and temperatures,
potentially limiting periods
during which snowmaking can
operate
Technology improvements support
snowmaking across a wider range of
weather conditions
24 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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TCFD Category
Scenario
Climate-related Risk
Key mitigating actions
2
Physical – Chronic
Fast Action
(below 2oC)
Current Policy
(above 3 oC)
Physical climate impacts on
agricultural products increase
costs of supply
3
Physical – Chronic
Fast Action
(below 2oC)
Current Policy
(above 3 oC)
Increased frequency and
severity of severe weather
events cause disruptions in
supply chains
4
Physical – Acute
and Chronic
Fast Action
(below 2oC)
Current Policy
(above 3 oC)
Increased frequency and
severity of climate impacts on
property and plant availability
and operating costs
5
Physical and
Transition – Market
Fast Action
(below 2oC)
Current Policy
(above 3 oC)
Insurance premiums
significantly rise due to
perceived higher exposure to
climate-related risks
6
Transition – Policy
Fast Action
(below 2oC)
Introduction of a carbon price
raises cost of food and
beverage products
7
Transition – Policy
Fast Action
(below 2oC)
Introduction of a carbon price
raises the cost of energy
Identification of alternate supply and
flexibility in food and beverage
offerings
Forward planning for seasonal products
and ensuring supply chain flexibility and
diversity
Completion of physical risk assessments
for key owned assets to improve
understanding of climate impacts
Engagement with landlords to
understand risk exposure and improve
resilience
Property enhancements to reduce
exposure and minimise impact of
weather events
Consideration of locations of
operations and insurability based on
long-term climate change projections
Improved diversity of local product
suppliers
Engagement with suppliers to identify
low-carbon alternatives
Continued expansion of renewable
energy procurement and
implementation of energy efficiency
measures
Summary of other climate-related opportunities
TCFD Category
Scenario
Climate-related Opportunity
Key actions
1
2
Transition –
Technology
Fast Action
(below 2oC)
Transition – Legal
and Reputational
Fast Action
(below 2oC)
of
and
Development
refurbishment
property
provide opportunities for more
efficient
and
consumption
design
Consideration
climate-related
of
opportunities for new developments
landlords during
Engagement with
design and development stage of build
to implement more efficient systems
demand
Increased
for
sustainable products positions
the Group
its
competitors
ahead of
Continued exploration of sustainable
products and services
25 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
TCFD Category
Scenario
Climate-related Opportunity
Key actions
3
4
Transition – Market
and Reputational
Fast Action
(below 2oC)
Improved waste management
practices
support enhanced
market position
Continue engagement with landlords to
improve waste management strategies
increase
Engage with suppliers
recycled and upcycled offerings
to
Transition – Market
and Reputational
Fast Action
(below 2oC)
implementation of
Effective
adaptation measures
and
increased efficiency of property
increase property valuation
Continued monitoring of asset resilience
to climate impacts and enhancement of
assets to improve efficiency
5
Physical – Chronic
Fast Action
(below 2oC)
Current Policy
(above 3 oC)
Increased demand for Thredbo
in summer months due to its
comparatively cooler climate
Continued promotion of
summer
experiences
and
development of new mountain bike
trails and year-round experiences
Thredbo
at
The Group will continue to monitor identified climate-related risks and opportunities periodically to assess whether there has been
any change in the materiality assessment for these other risks and opportunities.
Next steps
The Group will continue to respond to the TCFD recommendations and work towards full alignment with those recommendations.
This will include further work to quantify the potential impact of material risks identified, an assessment and, if required,
enhancement of governance and risk management activities associated with those risks, target setting and the development of
climate-related key performance indicators, and further disclosures in the Group’s periodic reporting regarding its response to the
TCFD recommendations.
COMMUNITY AND SOCIAL IMPACT
Modern slavery
The Group is exposed to modern slavery risks through its operations and supply chain.
The Group’s approach to the management of modern slavery risks is underpinned by its purpose: to make the day better for
ourselves, our customers, our team and our community. The Group recognises that the decisions it makes and how it chooses to
provide experiences to customers can impact the livelihood of people and the communities in which it operates, and appreciates
that it has a responsibility and opportunity to help eliminate modern slavery through its actions and by working with its suppliers.
The Group published its first Modern Slavery Statement for the year ended 30 June 2020 in March 2021 and published its second
Modern Slavery Statement for the year ended 30 June 2021 in December 2021. The Modern Slavery Statements are available at
www.evt.com/investors and contain further information regarding the Group’s management of modern slavery risks.
Reconciliation Action Plan
The Group has commenced the process of developing a “Reflect” Reconciliation Action Plan (“RAP”) and expects to finalise the
Reflect RAP during FY23.
DIVERSITY
The Board is committed to an inclusive workplace that embraces and promotes diversity, including Indigenous and disability
employment, equal opportunity and women in management.
The Group’s Diversity Policy formalises the Group’s commitment to diversity and seeks to promote an inclusive culture where people
are encouraged to succeed to the best of their ability. Progress in respect of the measurable objectives for the Group is reviewed
on an annual basis by the Nomination and Remuneration Committee. The Nomination and Remuneration Committee receives
reports on the Group’s diversity related initiatives from management at least annually and facilitates periodic reporting to the Board.
The Group has adopted the following initiatives to progress the objectives of its policy:
reporting on the gender diversity within the Group to the Board;
26 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
aiming to maintain an appropriate percentage of women on the Board and specifically to have a minimum of 30% women, 30%
men and 40% unallocated to allow flexibility for Board renewal; and
aiming to increase the percentage of women in senior management positions as vacancies arise, subject to identification of
candidates with appropriate skills.
The Board considers progress in relation to the above measurable objectives at least annually and the last review was performed in
May 2022. Performance was assessed as follows:
Reporting on the gender diversity within the Group to the Board
Reporting on the gender diversity within the Group is provided to the Nomination and Remuneration Committee in May each year,
following which the Chairman of the Nomination and Remuneration Committee provides an update to the Board. The Board also
reviews the information disclosed below prior to the Board’s approval of the Corporate Governance Statement in August each year.
Aiming to maintain an appropriate percentage of women on the Board
The percentage of female directors is currently 43%, which is consistent with the Group’s objective to have a minimum of 30%
women, 30% men and 40% unallocated to allow flexibility for Board renewal. The Board considers that the gender composition of
the Board is appropriate.
Aiming to increase the percentage of women in senior management positions as vacancies arise, subject to identification of
candidates with appropriate skills
The Group has a female CEO, the percentage of women holding senior executive positions has increased in the year ended 30 June
2022, and further initiatives are in development to support increases in future years. The Board is satisfied with progress made in
relation to the increase of the percentage of women in senior management positions and will continue to monitor progress in
relation to this measurable objective.
The policy is available from www.evt.com/investors or upon request from the Company Secretary.
Gender representation profile
The gender representation profile for the Board, senior executives, and all employees of the Group is as follows:
Board
Senior executives
All Group employees
30 June 2022
30 June 2021
Female
Male
Female
Male
43%
38%
51%
57%
62%
49%
43%
37%
50%
57%
63%
50%
For the purpose of preparing the above information, senior executives are defined as including direct reports to the CEO and direct
reports to those direct reports to the CEO.
The Group submitted a report to the Workplace Gender Equality Agency in May 2022 in accordance with the Workplace Gender
Equality Act 2012, and this report is available at www.evt.com/investors.
WORK HEALTH AND SAFETY (“WHS”)
The Group’s highest priority is the safety of all those impacted by its operations, including the Group’s employees, guests,
contractors, and the communities in which the Group operates.
The Group’s Head of Safety is responsible for WHS risk management activities across the Group, supported by divisional managers
with WHS responsibilities. The Head of Safety reports to the Company Secretary. In the year ended 30 June 2020, the Head of Safety
completed a comprehensive analysis of the Group’s WHS management system in comparison with market practice, which was
subject to review by an appropriately qualified independent WHS expert. An update of the 2020 review will be completed later in
the 2022 calendar year.
All workplace injuries and other incidents are reported in the Group’s incident reporting system and analysed and where appropriate
investigated by the Head of Safety. The Head of Safety, with support from divisional management, develops and, where necessary,
improves and implements strategies to reduce the occurrence of avoidable workplace injuries. A summary of incidents together
with details of any material incidents are provided to the Board at each Board meeting.
27 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
In response to COVID-19, detailed COVID-19 safety plans and staff training programs were developed for, and implemented by, each
of the Group’s operating divisions. In addition, to ensure these plans were consistent with best practice in Australia, advice was also
sought from infectious diseases experts. The Group implemented a comprehensive internal and external audit process to ensure
that each location complies with the relevant COVID-19 safety plans.
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 2022. 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. Subject to continued favourable trading conditions,
the Board desires to resume dividend payments later in the 2022 calendar year.
REMUNERATION REPORT
The Remuneration Report, which forms part of the Directors’ Report, is set out on pages 30 to 40 and has been audited as required
by section 308(3C) of the Corporations Act 2001.
EVENTS SUBSEQUENT TO REPORTING DATE
Request for Arbitration against Vue Nederland BV and Vue International Bidco plc (“Vue”)
On 25 May 2022, a wholly owned subsidiary of the Group filed a formal Request for Arbitration to the German Arbitration Institute
in relation to Vue International Bidco plc (“Vue”) and Vue Nederland BV, being the purchaser guarantor and the purchaser under
the Sale and Purchase Agreement (“SPA”) signed in October 2018, for failing to meet their contractual obligations under the SPA.
This matter is progressing.
On 27 July 2022, Vue appeared before the High Court of Justice of England and Wales (“Court”) to seek an order granting permission
to convene a meeting of certain secured lenders for the purpose of approving a Scheme of Arrangement (“Scheme”) pursuant to
Part 26 of the United Kingdom Companies Act 2006. In Court filings, Vue has asserted that if the Scheme does not become effective,
Vue and its subsidiaries will be unable to meet their obligations as they fall due. Even if the Scheme becomes effective, it is Vue's
position that it will enter administration proceedings under the UK Insolvency Act.
The Group has obtained advice and is actively pursuing its legal options in relation to the Scheme including the related actions of
Vue and its subsidiaries, its directors, secured lenders and current shareholders.
Completion of the sale of Rydges North Sydney
The Group announced on 27 May 2022 that it had entered into a contract for the sale of Rydges North Sydney for a sale price of $75
million. The sale completed on 25 July 2022.
Dividends
On 22 August 2022, the directors resolved that no final dividend be declared for the year ended 30 June 2022.
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.
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:
Directors
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 rights held
directly
438,717
(a) Relevant interest under the Corporations Act 2001 differs from the disclosure required under Australian Accounting Standards as presented in the
Remuneration Report.
28 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
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 41 and forms part of the Directors’ Report for the year ended 30
June 2022.
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.
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 22nd day of August 2022
29 EVENT Hospitality & Entertainment Limited – 2022 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 an executive 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 35.
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 appropriately qualified and experienced people.
Remuneration levels are competitively set to attract appropriately qualified and experienced directors and executives. The
Nomination and Remuneration Committee obtains independent information about remuneration, including benchmarking surveys
and industry data. 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. Realisation of the longer term benefits of the Executive
Performance Rights Plan is conditional upon achievement of 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 and retain 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 (“AGM”) 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 Board undertakes an annual review of directors’ fees and the aggregate director fee pool. The Board considers the fees paid to
non-executive directors of comparable companies when undertaking the annual review.
Each director receives a fee for being a director of the Company. A committee fee is also paid to a director (other than the Chairman
of the Board) for acting as chair or being a member of the Audit and Risk Committee or the Nomination and Remuneration
Committee. The payment of the committee fee recognises the additional 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 may receive a fee in recognition of this 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.
The Board approved non-executive director fees were as follows:
Year to 30 June
Chairman (inclusive of committee fees)
Other non-executive directors
Base
Lead independent director
Audit and Risk Committee
Chairman – Audit and Risk Committee
Nomination and Remuneration Committee
Chairman – Nomination and Remuneration Committee
30 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
2023
$
2022
$
194,000
185,000
144,000
14,000
15,000
14,000
8,000
7,000
137,000
14,000
14,000
13,000
7,000
6,000
D I R E C T O R S ’ R E P O R T
The remuneration of non-executive directors for the year ended 30 June 2022 is detailed on page 36.
Non-executive directors’ fees cover all main Board and committee 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 information about remuneration trends in the market, and then makes its own recommendations 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 34 and 35.
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 applicable market and general market conditions. There are no guaranteed fixed remuneration increases in any executives’
contracts.
Effective from 1 July 2022, the Board has approved a fixed annual remuneration package for the CEO to the value of $1,627,500,
comprising base salary, superannuation and, if applicable, any salary sacrificed items.
Structure
Executives have the option to receive their fixed annual remuneration in cash and certain non-cash benefits that form part of the
salary package. Fixed annual remuneration includes superannuation and, if applicable, any salary sacrificed items.
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
Executives are set specific STI targets at the beginning of each year, and STI amounts paid to each executive are determined based
on the extent to which those targets 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 Group and divisional earnings targets, 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.
31 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
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. This methodology was chosen
because it allows for an objectively measurable assessment of the executives’ performance.
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 normally delivered as a cash bonus.
For the CEO and other executive KMP, the general target bonus opportunity range is from 65% to 115% of fixed annual
remuneration. The target bonus range for the CEO and other executive KMP is detailed below for the year ended 30 June 2022:
Maximum potential STI
calculated on fixed
annual remuneration(a)
Weighting of KPIs (as a percentage of fixed annual remuneration):
Group
earnings
Segment
earnings
Special
projects
Employee
engagement
CEO
JM Hastings(b)
Other executive KMP
GC Dean
MR Duff
115%
55%
65%
75%
25%
27.5%
–
–
15%
50%
35%
30%
10%
5%
2.5%
(a) Fixed annual remuneration is comprised of base salary, superannuation and benefits provided through salary sacrificing arrangements. The maximum possible
value of each executive’s STI award for future financial years is estimated by multiplying their maximum STI opportunity by their fixed annual remuneration. If
any portion of an executive’s STI is awarded in equity, the maximum value of that portion of the STI is estimated by multiplying the number of equity incentives
allocated by the Company’s share price. The minimum possible value of the STI award for future financial years is nil.
(b) The targets set for the STI of the CEO relate to the Group’s performance, capital management, 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 a mindset of ownership of the Group.
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 LTI plan to executives each financial year, based on individual performance as
assessed by the annual appraisal process. The Nomination and Remuneration Committee reviews details of executives nominated
for participation and then makes a recommendation for final Board approval. In accordance with the ASX Listing Rules, approval
from shareholders is obtained before securities are allocated to the CEO under the Executive Performance Rights Plan.
The maximum LTI opportunity for the CEO is 100% of fixed annual remuneration, and the maximum LTI opportunity for GC Dean
and MR Duff is 50% their fixed annual remuneration. The maximum possible value of each executive’s annual LTI award for future
financial years is estimated by multiplying the number of performance rights granted by the Company’s share price at the time that
the performance rights vest. The minimum possible value of the LTI award for future financial years is nil.
On vesting, for each performance right that vests, one fully paid ordinary share in the Company will be allocated. Performance rights
do not carry the full benefits of share ownership (such as the right to vote or to receive dividends) until they have vested and shares
have been allocated. No amount is payable for the grant or vesting of performance rights as they form part of executives’
remuneration. As shares are automatically allocated on vesting of performance rights, there is no expiry date.
32 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
The performance hurdle for the awards of performance rights to executives in the financial year ended 30 June 2022 is based on
EVENT Hospitality & Entertainment Limited’s earnings per share (“EPS”) for the financial year ending 30 June 2024 (“Performance
Period”). The performance hurdle for the awards of performance rights to executives in the financial year ended 30 June 2022 is as
follows:
EPS hurdle
The EPS hurdle requires that the Company’s EPS for the Performance Period must be equal to or greater than the target set by the
Board. This hurdle is chosen to align executives’ interests with the achievement of strong financial performance by the Company.
The hurdle is as follows:
if EPS for the Performance Period is less than the Threshold target, no performance rights will vest;
if EPS for the Performance Period is equal to or greater than the Threshold target, but less than the Stretch target, the proportion
of performance rights vesting will be increased on a pro-rata basis between 50% and 100%; or
if EPS for the Performance Period is equal to or greater than the Stretch target, all of the performance rights will vest.
The Board has set the Threshold target at 25 cents per share and the Stretch target at 50 cents per share. After the Board has
assessed the extent to which the above performance hurdle has been achieved in or around August 2024, executives will be
allocated ordinary shares equal to the number of vested performance rights that vest. Any performance rights that do not vest lapse
immediately.
This methodology was chosen because it allows for an objectively measurable assessment of the executives’ performance.
The Board has retained the discretion to vary the performance hurdles.
For the terms applicable to prior-year LTI grants, please refer to the Remuneration Report in the relevant year of grant.
Recognition and Retention Incentives
Shareholders approved at the 2020 and 2021 AGMs Recognition and Retention Incentives for the CEO with a face value of $1,550,000
and $775,000 respectively. These awards were 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. For
this reason, these awards do not have further vesting conditions beyond the service requirement.
GC Dean and MR Duff were granted Retention and Recognition Incentives on similar terms to the CEO’s awards in 2020 with a face
value of $530,000 and $600,000, respectively, and in 2021 with a face value of $265,000 and $300,000, respectively. Incentives on
similar terms have also been made to other senior executives under the Recognition and Retention Incentive plan.
For the Retention and Recognition Incentive awards in 2020, 60% of the grant value vested in full following the release of the results
for the year ended 30 June 2021, and was awarded in rights on 20 September 2021. The remainder will vest after the release of the
results for the year ended 30 June 2022. Each right issued in satisfaction of the vested portion of the award may be exercised into
one fully paid ordinary share in the Company (unless the Board determines to settle the exercise of rights in cash) after the release
of the results for the year ending 30 June 2023. Any rights that remain unexercised two years thereafter will expire.
For the Retention and Recognition Incentive awards in 2021, 60% of the grant value will vest following the release of the results for
the year ended 30 June 2022. The remainder will vest after the release of the results for the year ending 30 June 2023. Each right
issued in satisfaction of the vested portion of the award may be exercised into one fully paid ordinary share in the Company (unless
the Board determines to settle the exercise of rights in cash) after the release of the results for the year ending 30 June 2024. Any
rights that remain unexercised two years thereafter will expire.
Rights issued pursuant to the Recognition and Retention Incentives carry no entitlement to voting or to receive dividends or
distributions until shares are acquired on exercise of vested Rights. However, vested Rights will have an entitlement to dividend
equivalents paid in cash at the same time the Company pays any cash dividends or distributions for shareholders during the period
commencing from the relevant vesting date until the vested Rights are exercised.
If any portion of an executive’s Recognition and Retention Incentive is awarded in equity, the maximum value of that portion of the
award is estimated by multiplying the number of equity incentives allocated by the Company’s share price. The minimum possible
value of the award for future financial years is nil.
No amount is payable for the grant or vesting or exercise of rights as they form part of executives’ remuneration.
These awards have been accounted for as cash-settled share-based payments.
33 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
Remuneration outcome for the year ended 30 June 2022
D I R E C T O R S ’ R E P O R T
Impact of COVID-19 on remuneration arrangements
As indicated in the Company’s previous Remuneration Report, adjustments were made to director and executive remuneration from
1 April 2020 in response to the impact of COVID-19. These included significant reductions to the fees and remuneration outcomes
for non-executive directors, the CEO and senior executives. Whilst those temporary and voluntary remuneration adjustments
concluded on 30 June 2021, the Chairman volunteered to reduce his fee for the year ended 30 June 2022 by $150,000 to $185,000.
STI outcomes for FY22
During the year ended 30 June 2022, no awards were paid under the STI plan to KMP in respect of the year ended 30 June 2021,
notwithstanding the achievement of certain individual KPIs by KMP. This was in recognition of the ongoing impact of COVID-19 on
the Group’s performance and on shareholder returns. Awards were made to certain other executives under the STI plan in respect
of the year ended 30 June 2021.
LTI outcome
In November 2021, the FY19 LTI award under the Company’s Executive Performance Rights Plan was tested. As the relevant
performance conditions were not met, 100% of the award was forfeited.
Group performance
To provide further context on the Group’s performance and returns for shareholders, the following table outlines a five-year history
of key financial metrics:
2022
2021
2020
2019
2018
Net profit/(loss) before individually
significant items and AASB 16 ($)(a)
Normalised earnings per share (cents)
Dividends per share (cents)
Share price at year end ($)(b)
46,198,000
28.7
–
13.05
(54,051,000)
(33.5)
–
12.64
(3,275,000)
(2.0)
21
8.41
111,889,000
69.6
52
12.50
124,281,000
77.6
52
13.39
(a) Refer to page 8 in the Directors’ Report for a reconciliation to reported net profit for the year.
(b) The share price at 30 June 2017 was $13.37.
Employment contracts for the CEO and other executive KMP
A summary of the key terms of JM Hastings’ employment contract is set out in the table below:
Contract term Ongoing with no fixed term.
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.
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.
34 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
The key terms of 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 ended 30 June 2022 to provide remuneration recommendations as
defined in section 9B of the Corporations Act 2001.
KMP
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,
lead independent director
Independent non-executive director
Independent non-executive director
Independent non-executive director
Independent non-executive director
1 July 2021 to 30 June 2022
1 July 2021 to 30 June 2022
1 July 2021 to 30 June 2022
1 July 2021 to 30 June 2022
1 July 2021 to 30 June 2022
1 July 2021 to 30 June 2022
CEO
1 July 2021 to 30 June 2022
Director Finance and Accounting,
Company Secretary
Director Commercial
1 July 2021 to 30 June 2022
1 July 2021 to 30 June 2022
All executive KMP are employed by Event Hospitality & Entertainment Limited.
35 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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7
3
D I R E C T O R S ’ R E P O R T
Other transactions with KMP and their related parties
AG Rydge is a director of Carlton Investments Limited, and Carton Investments Limited is a significant shareholder in the
Company. Carlton Investments Limited rents office space from an entity controlled by the Company. Rent is charged to Carlton
Investments Limited at a market rate and ordinary commercial terms. Rent and office service charges received during the year
ended 30 June 2022 were $23,363 (2021: $23,870). 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 (2021: $5,312).
AG Rydge paid rent, levies and other costs to Group entities during the year ended 30 June 2022 amounting to $107,647 (2021:
$143,307). Rent is charged to AG Rydge at market rates and the arrangements are on ordinary commercial terms.
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.
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 as LTI awards
are shown below:
Number
Grant date
CEO
JM Hastings
101,573(c)
24 Jun 2022
159,236
113,637
18 Feb 2021
20 Feb 2020
88,957
21 Feb 2019
Other executive KMP
GC Dean
MR Duff
23,115
36,356
25,945
22,665
26,212
37,062
26,448
22,665
24 Jun 2022
18 Feb 2021
20 Feb 2020
21 Feb 2019
24 Jun 2022
18 Feb 2021
20 Feb 2020
21 Feb 2019
Vested during
the year
Forfeited
during the
year
Year in which
the grant
vests
Performance
right – EPS
$
Performance
right – TSR(b)
$
Fair value(a)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
30 Jun 2025
30 Jun 2024
30 Jun 2023
88,957
30 Jun 2022
–
–
–
30 Jun 2025
30 Jun 2024
30 Jun 2023
22,665
30 Jun 2022
–
–
–
30 Jun 2025
30 Jun 2024
30 Jun 2023
22,665
30 Jun 2022
13.16
10.00
11.07
11.21
13.16
10.00
11.07
11.21
13.16
10.00
11.07
11.21
–
6.99
5.15
5.11
–
6.99
5.15
5.11
–
6.99
5.15
5.11
(a)
(b)
(c)
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.
Relative total shareholder return (“TSR”) was a performance condition applicable to certain prior year grants.
Granted pursuant to shareholder approval under ASX Listing Rule 10.14 obtained at the 2021 AGM.
38 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
Executive Performance Rights Plan Recognition and Retention Incentive
Analysis of rights granted as remuneration
Details of the vesting profile of rights granted as remuneration to the CEO and other executive KMP as Recognition and
Retention Incentives are shown below:
Number
Award date
Vested during
the year
Forfeited during
the year
CEO
JM Hastings
Other executive KMP
64,271(c)
20 Sep 2021
64,271
GC Dean
21,977
20 Sep 2021
21,977
MR Duff
24,879
20 Sep 2021
24,879
–
–
–
Year in which
the rights can
be converted to
shares(a)
Fair value(b)
$
30 Jun 2024
14.44
30 Jun 2024
14.44
30 Jun 2024
14.44
(a)
(b)
(c)
Rights issued pursuant to the 2020 Recognition and Retention Incentive award may be converted to ordinary shares no earlier than August 2023.
The fair value of the rights is calculated as the five-day volume weighted average price of shares of the Company on the ASX as at the date that the
rights were granted.
Granted pursuant to shareholder approval under ASX Listing Rule 10.14 obtained at the 2020 AGM.
Rights holdings and transactions
The movement during the year in the number of rights in EVENT Hospitality & Entertainment Limited (including LTI
performance rights and Recognition and Retention Incentive rights) held by the CEO and other executive KMP is detailed below:
Held at
the end of
the year(a)
Held at
the beginning of
the year
Exercised
Forfeited
Granted
CEO
JM Hastings
Other executive KMP
GC Dean
MR Duff
2022
2021
2022
2021
2022
2021
361,830
285,331
165,844(b)
159,236
84,966
74,465
86,175
74,968
45,092(b)
36,356
51,091(b)
37,062
–
–
–
–
–
–
(88,957)
(82,737)
(22,665)
(25,855)
(22,665)
(25,855)
438,717
361,830
107,393
84,966
114,601
86,175
(a)
(b)
As at the end of the year, there were no rights which are both vested and exercisable. Refer to the table in the ‘Executive Performance Rights Plan –
Recognition and Retention Incentive’ section above for the number of vested and unexercisable rights held by each KMP.
The value of rights granted during the year to JM Hastings, GC Dean and MR Duff is $2,264,774, $621,541 and $704,203 respectively. This is the total
fair value of the rights calculated at grant date.
No performance rights have been granted since the end of the year. No performance rights are held by any related parties of
KMP.
39 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
D I R E C T O R S ’ R E P O R T
Shareholdings 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
Received on
vesting of
rights
Purchases
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
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
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
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(30,418)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Held at
the end of
the year(a)
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
54,481
84,899
(a)
No shares were held nominally by any member of the KMP as at the end of the reporting period.
Other than the arrangements disclosed above, no shares were granted to KMP as compensation in the year ended 30 June 2022.
Performance rights were granted to certain KMP as disclosed on page 39.
End of Directors’ Report: Remuneration Report – Audited
40 EVENT Hospitality & Entertainment Limited – 2022 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 2
Note
2022
$’000
2021
$’000
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
175,158
65,710
436
18,581
9,927
16,658
286,470
6,936
4
78
9,684
1,281,312
825,583
6,300
118,659
65,310
19,621
2,333,487
2,619,957
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
156,123
1,555
26,681
25,461
109,780
126,893
8,117
454,610
130,278
44,980
–
22,131
120,159
129,869
2,504
449,921
384,791
–
21,796
7,819
818,169
12,001
1,244,576
1,699,186
920,771
431,210
–
19,958
8,266
881,873
4,816
1,346,123
1,796,044
872,536
219,126
65,155
636,490
920,771
219,126
70,242
583,168
872,536
The Statement of Financial Position is to be read in conjunction with the accompanying notes.
42 EVENT Hospitality & Entertainment Limited – 2022 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 2
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
Share of net profit from equity accounted associates and joint ventures
Profit/(loss) before tax
Income tax (expense)/benefit
Profit/(loss) for the year
Earnings per share
Basic earnings per share
Diluted earnings per share
The Income Statement is to be read in conjunction with the accompanying notes.
Note
2.1
2.1
5.3
2.4
2.5
2.5
2022
$’000
2021
$’000
831,552
156,242
987,794
(258,288)
(191,907)
(140,950)
(130,696)
(75,043)
(75,374)
(41,185)
(20,705)
505,841
186,633
692,474
(234,776)
(196,547)
(55,763)
(89,108)
(57,801)
(65,174)
(41,409)
(15,614)
(934,148)
(756,192)
174
690
53,820
(498)
53,322
(63,028)
14,992
(48,036)
2022
Cents
2021
Cents
33.1
(29.8)
32.9
(29.8)
43 EVENT Hospitality & Entertainment Limited – 2022 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 2
Profit/(loss) for the year
Other comprehensive expense
Items that may be reclassified to profit or loss
Foreign currency translation differences for foreign operations – net of tax
Other comprehensive expense for the year – net of tax
Total comprehensive income/(expense) for the year
2022
$’000
2021
$’000
53,322
(48,036)
(9,715)
(9,715)
(4,350)
(4,350)
43,607
(52,386)
The Statement of Comprehensive Income is to be read in conjunction with the accompanying notes.
44 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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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 2
Note
2022
$’000
2021
$’000
926,091
(751,279)
581,166
(574,911)
174,812
510
141,395
5
158
(41,707)
7,750
(3,016)
279,907
(98,247)
(4,022)
(1,240)
–
(12,584)
(489)
113,710
(2,872)
102,623
(210,450)
(7,523)
(26)
(104,276)
(219,652)
57,383
120,978
(3,203)
175,158
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
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 and income
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
Payments for business acquired
Decrease in loans from other entities
Proceeds from disposal of property, plant and equipment
Net cash (used)/provided by investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayments of borrowings
Repayment of non-controlling interest loan
Transaction costs related to borrowings
Payments of lease liabilities
Net cash used by financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effect of movements in exchange rates on cash held
Cash and cash equivalents at the end of the year
The Statement of Cash Flows is to be read in conjunction with the accompanying notes.
46 EVENT Hospitality & Entertainment Limited – 2022 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 2
S E C T I O N 1 – B A S I S O F P R E P E 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 2022 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 22
August 2022.
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 fair value through
other comprehensive income (“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).
Key estimates and judgements
Key estimates and judgements used in these financial statements, include:
•
•
•
impairment (see Note 2.3, 3.3 and 3.6);
lease terms (see Note 3.9); and
valuations of property, plant and equipment (see Note 3.3).
47 EVENT Hospitality & Entertainment Limited – 2022 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 2
S E C T I O N 1 – B A S I S O F P R E P E R A T I O N
1.2 – BASIS OF PREPARATION (continued)
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).
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 Organization 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
(and previous) financial statements, including:
impairment (see Note 2.3, 3.3 and 3.6);
•
• provision for expected credit losses (see Note 3.1); and
•
valuations of property, plant and equipment (see Note 3.3).
Going concern basis of accounting
COVID-19 has had, and in some areas continues to have, a material impact on the Group’s operational divisions. 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;
participation in government support initiatives; and
suspension of dividend payments. 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 $168.1 million. This deficiency is predominately a
consequence of the recognition of current lease liabilities (under AASB 16 Leases) totalling $126.9 million. Current lease and
other liabilities are expected to be supported by future operating cash flows and available liquidity from undrawn debt facilities
of $284.5 million at 30 June 2022.
From a financial and liquidity perspective, and in the context of the COVID-19 environment highlighted above, budget
modelling based on a conservative recovery scenario was undertaken across all of the Group’s businesses. The budget
modelling anticipates outcomes based upon current known circumstances and recent, as well as past, COVID-19 business
performance.
The budget modelling, which is based upon currently available information, assumes that there are no future material or
significant government mandated mass closures of operations beyond that which have occurred. The Group’s budget
modelling included a limited number of asset sales.
48 EVENT Hospitality & Entertainment Limited – 2022 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 2
S E C T I O N 1 – B A S I S O F P R E P E R A T I O N
1.2 – BASIS OF PREPARATION (continued)
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. 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 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 any future adverse economic conditions caused by COVID-19 (or other similar pandemic events);
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 the current outlook provides sufficient liquidity for the foreseeable future.
In relation to the Group’s debt arrangements, the Group anticipates it will be able to comply with covenant requirements at
future testing dates. On this basis, the financial report has been prepared on a going concern basis.
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.
49 EVENT Hospitality & Entertainment Limited – 2022 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 2
S E C T I O N 1 – B A S I S O F P R E P E R A T I O N
1.3 – FOREIGN CURRENCY (continued)
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.
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 (“Standards Board”) that are relevant to its operations and were effective for the year ended 30 June 2022. New and
revised Standards, amendments thereof, and Interpretations effective for the current year that are relevant to the Group are:
Impact of the initial application of Covid-19-Related Rent Concessions beyond 30 June 2021—Amendment to IFRS 16
In the prior year, the Group adopted Covid-19-Related Rent Concessions (Amendment to IFRS 16) that provided practical relief
to lessees in accounting for rent concessions occurring as a direct consequence of COVID-19, by introducing a practical
expedient to IFRS 16. This practical expedient was available to rent concessions for which any reduction in lease payments
affected payments originally due on or before 30 June 2021. In March 2021, the Standards Board issued Covid-19-Related Rent
Concessions beyond 30 June 2021 (Amendment to IFRS 16) that extends the practical expedient to apply to reduction in lease
payments originally due on or before 30 June 2022. In the current financial year, the Group has applied the amendment to
IFRS 16 (as issued by the Standards Board in May 2021). 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 shall account for any change in
lease payments resulting from the COVID-19-related rent concession applying IFRS 16 as 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 2022 (a rent concession meets
this condition if it results in reduced lease payments on or before 30 June 2022 and increased lease payments that extend
beyond 30 June 2022); and
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 paragraph 46B in AASB 16
Leases.
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 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.
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 ongoing interest rate benchmark reforms.
The amending Standard does not materially impact the Group.
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.
50 EVENT Hospitality & Entertainment Limited – 2022 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 2
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. When rooms
are sold in advance, the revenue is recorded as deferred
revenue in the Statement of Financial Position until the date the
customer occupies the room.
51 EVENT Hospitality & Entertainment Limited – 2022 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 2
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.
Revenue recognition policies
Revenue is recognised as the fees are earned over the life of the
contract. Fees are typically variable based on a percentage of
revenue and profit. 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 purchased in advance, 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.
Thredbo ski
school
Customers obtain control of the ski
school service when the lesson is
attended.
Revenue is recognised at the time of the lesson or other activity.
For products purchased in advance, revenue is recorded as
deferred revenue in the Statement of Financial Position initially
and is then recognised when the lesson is attended.
Rental
revenue
Customers, being
relevant benefits of
premises.
lessees, obtain
the rental
Rental revenue consists of rentals from investment
properties and sub-lease rentals and is billed monthly. Rentals
received under operating leases and initial direct costs are
recognised on a straight-line basis over the term of the lease.
Details of the Group’s revenue have been provided below:
2022
$’000
2021
$’000
Revenue from contracts with customers (see below)
831,552
505,841
Other revenue
Rental revenue
Finance revenue
Dividends
Sundry
Other income
Reversal of impairment charges booked in previous years
Increase in fair value of investment properties
Government wage subsidies and other compensation (a)
Profit on sale of investment property and property, plant and equipment
24,503
158
5
1,230
25,896
1,548
30
96,349
32,419
130,346
987,794
27,121
215
5
560
27,901
3,997
6,950
112,563
35,222
158,732
692,474
(a) Government wage subsidies and other compensation for businesses impacted by the COVID-19 pandemic included JobKeeper in Australia, the New
Zealand Wage Subsidy, and various German government support and subsidy programs including Kurzarbeitergeld (short-time pay), Damage Support
and the Culture Fund programs. Grants that compensate the Group for expenses incurred are recognised in profit or loss as other income on a
systematic basis in the periods in which the expenses are recognised, unless the conditions for receiving the grant are met after the related expenses
have been recognised. In this case, the grant is recognised when it becomes receivable.
52 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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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 2
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’ adjusted EBITDA
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.
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 FVOCI.
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.
55 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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9
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 2
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
Disposal of assets on redevelopment or damage
Restructure costs, redundancies and staff retention costs arising as a result of COVID-19
Legal and other costs associated with the sale of a business segment
Other expenses (net of income items)
Individually significant items before tax
Income tax expense
Individually significant items after tax
2.4 – TAXATION
2022
$’000
2021
$’000
28,212
1,548
(6,148)
(5,156)
(3,723)
(810)
(800)
13,123
(2,582)
10,541
35,205
3,997
(9,920)
–
(5,895)
(4,683)
(4,794)
13,910
(2,136)
11,774
Accounting policy
Income tax expense or benefit 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 Australian tax consolidated group are taxed as a single entity. EVENT Hospitality & Entertainment Limited is the head entity
within the Australian 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:
• 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
• 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 61. 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.
60 EVENT Hospitality & Entertainment Limited – 2022 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 2
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 (expense)/credit
The major components of income tax are:
Current income tax
Current income tax (expense)/credit
Income tax under provided in the prior year
Deferred income tax
Relating to origination and reversal of temporary differences
Income tax (expense)/credit reported in the Income Statement
Income tax credit/(expense) reported in equity
Reconciliation between income tax (expense)/credit and pre-tax profit/(loss)
Accounting profit/(loss) before income tax (expense)/credit
Prima facie income tax (expense)/credit at the income tax rate of 30% (2021: 30%)
Change in income tax (expense)/credit due to:
Adjustments relating to non-deductible items and revenue losses
Gain on disposal of non-depreciable properties
Restatement of depreciation relating to New Zealand assets
Other sundry items
Income tax under provided in the prior year
Total income tax (expense)/credit
Unrecognised deferred tax assets
Revenue losses – foreign
2022
$’000
2021
$’000
(27,166)
(56)
26,724
(498)
30,125
(757)
(14,376)
14,992
1,136
(1,135)
53,820
(63,028)
(16,146)
18,908
15,633
554
–
(483)
(56)
(498)
(11,950)
3,049
9,057
(3,315)
(757)
14,992
6,185
20,339
Included in the deferred tax assets not recognised is the gross value of corporate tax and trade tax losses arising in Germany of
$20,615,000 (2021: $67,797,000). The availability of these tax losses is subject to certain utilisation limits and ongoing availability tests
under German tax law. At 30 June 2022, there was no recognised deferred income tax liability (2021: $nil) for taxes that would be
payable on the unremitted earnings of certain of the Group’s subsidiaries, associates or incorporated joint ventures.
61 EVENT Hospitality & Entertainment Limited – 2022 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 2
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
Sale of a property
Tax losses
Sundry items
Less: offsetting deferred tax liabilities
Deferred tax credit/(expense)
2.5 – EARNINGS PER SHARE
Statement of Financial
Position
2022
$’000
2021
$’000
245,100
29,259
7,308
2,999
284,666
(284,666)
–
280,709
3,171
14,346
12,895
5,614
16,266
13,077
3,898
349,976
(284,666)
65,310
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
Income
Statement
2022
$’000
15,507
10,044
(2,804)
(315)
2021
$’000
5,497
(7,037)
2,524
(960)
(12,424)
163
(1,019)
(829)
205
16,266
898
1,032
15,132
(1,640)
2,685
1,024
(4,952)
–
387
(27,036)
26,724
(14,376)
Basic earnings per share (“EPS”) is calculated by dividing the profit/(loss) 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.
2022
$’000
2021
$’000
Profit/(loss) attributable to ordinary shareholders (basic and diluted)
53,322
(48,036)
Weighted average number of ordinary shares (basic)
Effect of performance rights
Weighted average number of ordinary shares (diluted)
Number
Number
161,195,521
1,021,462
162,216,983
161,195,521
886,736
162,082,257
Further details in relation to the Executive Performance Rights Plan and Executive Performance Share Plan are provided in Note 6.1.
62 EVENT Hospitality & Entertainment Limited – 2022 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 2
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 2.4.
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
2022
$’000
21,563
(2,254)
19,309
46,401
65,710
6,936
6,936
2021
$’000
13,324
(1,354)
11,970
86,830
98,800
672
672
As at 30 June 2022, trade receivables with a value of $2,254,000 (2021: $1,354,000) 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 2022, trade receivables for the Group that were past due but not impaired were $4,311,000 (2021: $2,531,000), of
which $1,528,000 (2021: $1,361,000) 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 $46,401,000 (2021: $86,830,000) 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.
63 EVENT Hospitality & Entertainment Limited – 2022 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 2
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 the lower of cost and net
realisable value. 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:
freehold buildings
buildings and improvements subject to long term leases
resort apartments and share of common property
plant and equipment
40 – 80 years;
shorter of estimated useful life and term of lease;
40 – 80 years; and
3 – 20 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 cinema or hotel 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.
64 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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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 2
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 were subject to an independent valuation as 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 30 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:
2022
$’000
2021
$’000
Existing use is highest and best use
Independent valuation – 30 June 2021
Independent valuation – 8 March 2021
Alternate use is highest and best use
Independent valuation – 30 June 2021
Land and buildings not independently valued
Book value of land and buildings not independently valued
1,612,097
57,720
1,686,164
–
263,441
274,577
2,029
1,935,287
4,822
1,965,563
The book value of the above interests at 30 June 2022 was $1,052,032,000 (2021: $1,030,447,000). The written-down book
value of plant and equipment at 30 June 2022 which is deemed integral to land and buildings, has been determined to total
approximately $158,879,000 (2021: $139,872,000). The above valuations do not take into account the potential impact of
capital gains tax.
66 EVENT Hospitality & Entertainment Limited – 2022 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 2
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)
Impairment considerations at 30 June 2022
Hotels
Hotel properties are treated as separate cash-generating units. 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 2022
included a comparison of the independent valuation at 30 June 2021 to the carrying value of each hotel cash-generating unit
and a review of the independent valuation parameters to ensure that parameters were consistent (or no less favourable) than
prevailing market parameters at 30 June 2022. A sensitivity analysis, assuming a -10% variation to the 2021 independent
valuations, was also undertaken to ensure that there was sufficient independent valuation headroom.
There was one hotel property where the carrying value was below the independent valuation, due primarily to current
refurbishment expenditure, and that hotel was subject to further impairment testing. To assess the value in use for impairment
testing purposes:
estimated future 5-year cash flows (based on 2023 year budget and Board approved future forecasts) were discounted to
their present value using an appropriate pre-tax discount rate, derived from the Group’s Australian hotel related post-tax
weighted average cost of capital of 7.72%;
a terminal value capitalisation rate of 6.50%; and
forecast growth rates (inclusive of an average annual inflation rate) of 2.5%.
As a result of the above impairment review process, no impairment charges (2021: $nil) 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, no impairment charges (2021: $3,747,000) were reversed in respect of
impairments booked in previous years. A prior year impairment charge of $1,548,000 was reversed as a result of the disposal
of certain items.
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 forecast trading performance of certain cinema sites and cash-
generating units caused the Group to assess their recoverable amounts at 30 June 2022. 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.
The impairment review process at 30 June 2022 included the following:
the expected 2023 budget and 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 2023 budget and normalised 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 undertaken as 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 Entertainment segment related post-tax weighted average cost of capital of 7.81% to 9.00%;
cash flow forecasts were based on the 2023 budget presented to the Board; and
forecast growth rates (inclusive of an average annual inflation rate) of 2.0%.
67 EVENT Hospitality & Entertainment Limited – 2022 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 2
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)
As a result of the above impairment review process, impairment losses totalling $566,000 (2021: $9,920,000) were recorded
in respect of certain cinemas or cash-generating units. The site that that were subject to an impairment charge are located 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 2022 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 assets held for sale
Freehold land and buildings classified as investment properties
2022
$’000
537,949
14,126
6,300
558,375
2021
$’000
491,253
–
6,250
497,503
Capital commitments
Capital expenditure commitments contracted but not provided for and payable
8,993
3,599
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.
68 EVENT Hospitality & Entertainment Limited – 2022 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 2
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 (continued)
The carrying amount of investment property is the fair value of the property as determined by an independent registered
qualified valuer. The significant unobservable inputs used by the valuer in determining the fair value of the investment property
held by the Group at 30 June 2022 included a market capitalisation rates of 7.25% (2021: reversionary rental yields of 5.74%
to 7.27%). The valuer has carried out the valuation by applying assumptions regarding the reasonably possible impacts of
COVID-19 based on information available as at 30 June 2022.
The leases for the investment property contain an initial non-cancellable period of between five and 15 years. Subsequent
renewals are negotiated with the lessee. No contingent rents are charged for the investment property.
During the year ended 30 June 2022, $2,848,000 (2021: $7,518,000) was recognised as rental income for investment properties
in the Income Statement, with $611,000 (2021: $1,916,000) incurred in respect of direct costs, including $123,000 (2021:
$240,000) for repairs and maintenance. The Group investment property at 30 June 2022 consists of one central Brisbane
property. Investment properties were sold during the years ended 30 June 2022 and 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)
Additions
Sale of property
Balance at the end of the year
3.5 – ASSETS HELD FOR SALE
2022
$’000
2021
$’000
6,300
64,500
64,500
30
20
(58,250)
6,300
74,550
6,950
–
(17,000)
64,500
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 2022, the Group had
initiated active marketing campaigns in relation to three of the identified properties.
Assets held for sale – carrying amount
2022
$’000
2021
$’000
16,658
17,973
The fair value of the assets held for sale is $72.6 million. The fair value was based on independent valuations totalling $70.9
million for two of the three properties, as determined by independent registered qualified valuers as at 30 June 2021. 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 a capitalisation rate of 5.25% for
one property and for the second property, 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. A third property was
not subject to valuation and the book value at 30 June 2022 was determined to represent the fair value of that property.
69 EVENT Hospitality & Entertainment Limited – 2022 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 2
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.
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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:
2022
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
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
Impairments
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
Goodwill
$’000
Construction
rights
$’000
67,233
1,343
(653)
66,580
27,125
–
–
–
(2,503)
91,202
91,855
(653)
91,202
62,928
(653)
62,275
4,555
–
–
–
(250)
66,580
67,233
(653)
66,580
–
1,343
–
–
–
(354)
–
989
989
–
989
1,343
–
1,343
–
–
–
–
–
1,343
1,343
–
1,343
Cash generating units containing goodwill have been outlined below:
Entertainment – Australia and New Zealand
Entertainment – Germany
Hotels – New Zealand
Hotels – Australia
Multiple units without significant goodwill
Liquor
licences
$’000
Management
and
leasehold rights
$’000
Software
$’000
Total
$’000
196
–
196
–
–
–
(6)
–
190
190
–
190
196
–
196
–
–
–
–
–
196
196
–
196
68,776
8,861
146,409
(39,169)
29,607
770
–
(4,395)
(861)
(281)
24,840
63,371
(38,531)
24,840
(5,242)
3,619
470
(1,165)
(1,448)
–
(38)
1,438
7,399
(5,961)
(45,064)
101,345
28,365
(1,165)
(5,843)
(1,221)
(2,822)
118,659
163,804
(45,145)
1,438
118,659
67,616
8,300
140,383
(37,385)
30,231
729
3,153
(4,429)
–
(77)
29,607
(3,199)
5,101
873
(405)
(1,879)
(15)
(56)
3,619
(41,237)
99,146
6,157
2,748
(6,308)
(15)
(383)
101,345
68,776
8,861
146,409
(39,169)
29,607
(5,242)
3,619
(45,064)
101,345
2022
$’000
43,424
3,900
39,543
3,593
742
91,202
2021
$’000
43,694
4,066
14,485
3,593
742
66,580
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3.6 – GOODWILL AND OTHER INTANGIBLE ASSETS (continued)
Impairment considerations at 30 June 2022
The recoverable value of goodwill has been determined by value in use calculations for each specific goodwill component.
Hotels
There are three owned hotel properties with specific goodwill components. To assess the value in use for impairment testing
purposes:
estimated future 5-year cash flows (based on 2023 year budget and Board approved future forecasts) were discounted to
their present value using an appropriate pre-tax discount rate, derived from the Group’s relevant hotel related post-tax
weighted average cost of capital of 7.72% to 9.02%;
a terminal value capitalisation rate of 6.50% to 9.02%; and
forecast growth rates (inclusive of an average annual inflation rate) of 2.5% to 3.5%.
For goodwill relating to certain hotel leasehold properties, considered as one cash generating unit for goodwill impairment
purposes:
estimated future cash flows (based on 2023 year budget and Board approved future forecasts) 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 8.02%; 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 (2021: $nil) were recorded in respect of goodwill.
Further information regarding the key assumptions made in relation to the assessment of impairment of Hotel cash-generating
units is disclosed in Note 3.3.
Entertainment
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 7.81% to 9.00%;
cash flow forecasts were based on the 2023 budget presented to the 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 (2021: $nil) were recorded in respect of goodwill
and management leasehold rights. Further information regarding the key assumptions made in relation to the assessment of
impairment of Entertainment cash-generating units is disclosed in Note 3.3.
Sensitivity analysis
A 1% increase in the relevant post-tax weighted average cost of capital would have resulted in an impairment of $740,000
for one of the Group’s cash generating units containing goodwill.
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
72 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
2022
$’000
2021
$’000
54,454
101,669
156,123
46,422
83,856
130,278
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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
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.
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.
Current
Employee benefits
Insurance loss contingencies and other claims
Non-current
Employee benefits
Decommissioning of leasehold improvements
73 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
2022
$’000
25,386
75
25,461
2,967
18,829
21,796
2021
$’000
22,056
75
22,131
2,902
17,056
19,958
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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
Decommissioning of leasehold improvements
Carrying amount at the beginning of the year
Provided
Reversed
Utilised
Net foreign currency differences on translation of foreign operations
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
3.9 – COMMITMENTS AND LEASES
2022
$’000
2021
$’000
75
–
–
75
17,056
2,616
(359)
(175)
(309)
18,829
–
–
–
75
–
–
75
16,387
1,306
(372)
–
(265)
17,056
72
(72)
–
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.
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.
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3.9 – COMMITMENTS AND LEASES (continued)
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
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 from Contracts with Customers
to allocate the consideration in the contract.
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.
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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)
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
Property
Balance at the beginning of the year
Additions
Transfer from property, plant & equipment
Derecognition
Depreciation
Impairment charge
Effect of movement in foreign exchange
Balance at the end of the year
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
Lease liabilities included in the Statement of Financial Position at 30 June
Current
Non-current
Amounts recognised in the Income Statement
Interest on lease liabilities
2022
$’000
2021
$’000
908,541
53,379
(6,757)
(1,467)
(108,943)
(5,582)
(13,588)
825,583
848,909
182,267
–
–
(108,345)
(7,125)
(7,165)
908,541
127,727
452,889
543,924
1,124,540
132,962
468,381
605,824
1,207,167
126,893
818,169
945,062
129,869
881,873
1,011,742
25,033
23,280
Variable lease payments not included in the measurement of lease liabilities
1,600
1,425
No significant expense was recognised in the Income Statement in respect of short term leases or leases of low-value assets.
Impairment considerations at 30 June 2022
The right-of-use assets for cinema and hotel sites were considered in conjunction with the impairment process for property,
plant and equipment. Detail of the impairment process, including the methodology and parameters, are set out within Note
3.3. As a result of the above impairment review process, impairment losses totalling $5,582,000 (2021: $7,125,000) were
recorded in respect of certain cinemas or cash-generating units. The sites that that were subject to an impairment charge are
located in Germany.
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).
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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)
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 2022 were $1,600,000 (2021: $1,425,000).
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 2022, lease liabilities included $152,897,000 (2021: $110,305,000) 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 2022, 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
$28,696,000 (2021: $29,408,000), 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
2022
$’000
2021
$’000
8,367
25,828
14,615
48,810
7,476
29,488
220,374
257,338
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.
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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.
Share capital
Fully paid ordinary shares
Movements in share capital
Balance at the beginning of the year
Balance at the end of the year
Share capital consists of:
Ordinary shares
Tax Exempt Share Plan shares
2022
Shares
2021
Shares
2022
$’000
2021
$’000
161,195,521
161,195,521
219,126
219,126
161,195,521
161,195,521
161,195,521
161,195,521
219,126
219,126
219,126
219,126
161,195,521
–
161,195,521
161,173,953
21,568
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 2022 (2021: nil).
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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 2022 (2021: nil). 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
2022
$’000
2021
$’000
125,536
106,055
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 (2021: $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.
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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 2021, 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 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
At 1 July 2021
Amount recognised in the Income Statement as
an employee expense
Amount recognised in the Income Statement in
prior years as an employee expense
Foreign currency translation differences for
foreign operations
Financial
assets
revaluation
$’000
Investment
property
revaluation
$’000
12,536
5,121
−
−
−
−
−
−
At 30 June 2022
12,536
5,121
At 1 July 2020
Amount recognised in the Income Statement as
an employee expense
Foreign currency translation differences for
foreign operations
12,536
5,121
−
−
−
−
At 30 June 2021
12,536
5,121
Hedging
$’000
Share-based
payments
$’000
Foreign
currency
translation
$’000
Total
$’000
−
−
−
−
−
−
−
−
−
36,255
16,330
70,242
1,424
3,204
−
40,883
−
−
(9,715)
6,615
1,424
3,204
(9,715)
65,155
34,769
20,680
73,106
1,486
−
36,255
−
1,486
(4,350)
16,330
(4,350)
70,242
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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; 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 a
$2,500,000 credit support facility. In relation to the non-revolving loan facility, the Group repaid and cancelled $43,500,000
(2021: $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 3.60% per annum. As at 30 June 2022, the Group had drawn $365,510,000 (2021: $476,428,000) under
the loan facilities and $1,349,000 (2021: $1,225,000) under the credit support facility. Debt facility components subject to
interest rate swaps used for hedging totalled $nil (2021: $nil) at 30 June 2022.
A New Zealand-domiciled subsidiary has general loan facilities secured against a hotel property. The subsidiary had drawn
NZ$22,234,000 (A$20,052,000) under the facility at 30 June 2022. The subsidiary, prior to 30 September 2021, was accounted
as a joint venture as the Group owned a 16% interest in the subsidiary. The interest in the subsidiary increased to 70%
effective from 30 September 2021.
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$2,511,000) at 30 June 2022.
Certain wholly-owned German-domiciled subsidiaries have a secured guarantee facility of €14,000,000 (A$21,248,000) for
the issue of letters of credit and bank guarantee arrangements. The facility was extended during the financial year and expires
on 31 May 2023. 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 2022, the Group had drawn
€12,466,000 (A$18,919,000) under the facility.
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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
4.5 – FINANCIAL RISK MANAGEMENT
2022
$’000
2021
$’000
551
551
1,004
1,555
385,011
(1,540)
383,471
1,320
384,791
43,500
43,500
1,480
44,980
432,928
(3,081)
429,847
1,363
431,210
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 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
2022
$’000
78
2021
$’000
78
Any reasonably possible change in the share price of this company would not have a material effect on the investment balance
or the related revaluation reserve at the reporting date.
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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 2022, 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.
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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
2022
Non-derivative financial liabilities
Secured bank loans
385,562
(409,446)
(11,014)
(12,411)
(381,483)
(4,538)
2,324
54,454
(2,324)
(54,454)
(502)
(54,454)
101,669
(101,669)
(101,669)
945,062
(1,124,541)
(63,864)
(502)
(63,864)
(404)
(121,689)
(261)
(331,200)
(655)
(543,924)
Unsecured non-interest bearing loans
from other companies
Trade payables
Trade payables
Lease liabilities
Derivative financial liabilities
Forward exchange contracts
2021
Non-derivative financial liabilities
Secured bank loans
Unsecured non-interest bearing loans
from other companies
Trade payables
Other payables and accruals
Lease liabilities
Derivative financial liabilities
Forward exchange contracts
1,489,071
(1,692,434)
(231,503)
(76,777)
(503,576)
(335,999)
(544,579)
476,428
(504,972)
(7,123)
(50,235)
(14,606)
(433,008)
2,843
46,422
83,856
(2,870)
(46,422)
(83,856)
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)
1,621,291
(1,845,287)
(204,662)
(117,456)
(137,891)
(778,873)
(606,445)
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.
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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
2022
$’000
2021
$’000
–
(4,055)
(4,055)
–
–
–
72,384
(381,507)
(309,123)
90,752
(476,428)
(385,676)
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 2022 (2021: 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. At 30 June 2022, Group debt totalling $4,055,000
(2021: no fixed rate instruments) was subject to a fixed rate instrument and arrangements. The interest rate on the debt has
been fixed at 2.29% through to October 2025. No reasonably possible change in prevailing interest rate arrangements on this
debt would have a significant impact on the Income Statement in the current 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”).
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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 where the currency differs to the functional currency of
the controlled entity 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
NZD
$’000
206
649
(101,010)
(1,940)
(102,095)
–
–
2022
EUR
$’000
264
–
–
–
264
–
–
GBP
$’000
USD
$’000
292
–
–
–
292
–
–
97
–
–
–
97
–
–
NZD
$’000
8,274
135
(94,928)
(2,863)
(89,382)
–
–
Net exposure
(102,095)
264
292
97
(89,382)
2021
EUR
$’000
GBP
$’000
USD
$’000
29
–
–
–
29
–
–
29
305
–
–
–
305
–
–
305
88
–
–
–
88
–
–
88
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 2022 was $101,010,000 (2021:
$94,928,000). A foreign exchange gain of $3,500,000 (2021: gain of $372,000) 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.
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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 2022
The Group acquired the following business during the year:
Rydges Latimer Holdings Limited
Effective 30 September 2021, Noahs Hotels (N.Z.) Limited (“Noahs”), a wholly-owned subsidiary, acquired an additional 54% of
Rydges Latimer Holdings Limited (“Latimer”) taking the total ownership interest in Latimer to 70%. Prior to the acquisition, the
Group had owned a 16% interest in Latimer that had been acquired in August 2017 (refer also to Note 5.3).
In addition:
Latimer includes two wholly-owned subsidiary companies, being Latimer Hotel Limited and PR Knight Limited. All three
companies were incorporated in New Zealand; and
the Group has contractually agreed to a stepped acquisition of the remaining 30% interest in Latimer, which will occur in
equal tranches at 30 September 2022 and 30 September 2023.
The net consideration paid for the acquisition of 54% of the total share capital of Latimer was NZ$14,208,000 (A$13,614,000),
comprised as follows (all amounts in Australian dollars):
Net consideration paid for an additional equity interest in Latimer
Less: cash acquired
Payment to acquire shares in a non-controlling interest (net of cash acquired)
87 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
Fair value at
acquisition
date
$’000
13,614
(1,030)
12,584
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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)
AASB 3 Business Combinations requires that the existing interest in Latimer be remeasured to its fair value, and the standard
allows a period of 12 months for the remeasure process to occur. The Group has not yet completed the fair value process and,
as a result, the existing book values within the Latimer companies have been utilised for consolidation purposes.
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):
Net consideration for the equity increase in Latimer to 70%
Deferred consideration for the remaining 30% interest
Less: cash acquired
Fair value of previously held 16% interest in Latimer
Assets and liabilities acquired
Property, plant and equipment
Loans and borrowings
Other assets and liabilities
Deferred tax balance
Non-controlling interest loan
Total net value of identifiable assets and liabilities acquired
Goodwill on acquisition (preliminary and subject to a fair value process)
Fair value at
acquisition
date
$’000
13,614
7,563
(1,030)
4,951
25,098
32,467
(21,735)
(1,319)
262
(11,702)
(2,027)
27,125
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 $127,000 which were expensed in the Income Statement during the year ended 30 June 2022.
The Income Statement for the year ended 30 June 2022 included revenue and a net profit of $8,940,000 and $685,000
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 a net loss of approximately $2,787,000 and $2,000 respectively.
There were no other material business combinations in the year ended 30 June 2022.
Business combinations in the year ended 30 June 2021
Jucy Snooze Limited
Effective 30 April 2021, 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
88 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
Fair value at
acquisition
date
$’000
821
3,533
4,354
(894)
3,460
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 2
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 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.
The Group has 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 ended 30 June 2021.
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 a 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.
89 EVENT Hospitality & Entertainment Limited – 2022 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 2
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
90 EVENT Hospitality & Entertainment Limited – 2022 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
%
2022
%
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 2
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
Haparanda Pty Limited
Haymarket’s Tivoli Theatres Pty Limited
Jucy Snooze Limited
Jucy Snooze Property Trust
Jucy Snooze 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
Latimer Hotel Limited
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
91 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
Ownership interest
2021
%
2022
%
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
70
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
16
100
100
100
100
100
100
100
100
Note
(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)
(c)(f)
(h)
(i)
(c)(g)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
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 2
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)
Neue Filmpalast Management GmbH
NFP Erste GmbH & Co. KG
NFP Erste Verwaltungs GmbH
Noahs Hotels (NZ) Limited
Noahs Limited
Northside Gardens Hotel Property Unit Trust
Northside Gardens Hotel Pty Limited
Pantami Pty Limited
P.R. Knight 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 Latimer Holdings 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
%
2022
%
100
100
100
100
100
100
100
100
70
100
100
100
100
100
100
100
100
100
100
100
100
100
100
70
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
16
100
100
100
100
100
100
100
100
100
100
100
100
100
100
16
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Note
(a)(e)
(a)(e)
(a)(e)
(c)
(c)(g)
(c)(g)
(c)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
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%.
The Group increased its interest in Rydges Latimer Holdings Limited to 70% on 30 September 2021. As a result of the additional interest in Rydges Latimer
Holdings Limited and its impact on control, Rydges Latimer Holdings Limited and its subsidiary companies now form part of the consolidated Group from
30 September 2021. Refer also to Note 5.1.
Jucy Snooze Property Trust was established on 6 June 2022.
Jucy Snooze Pty Limited was incorporated on 11 May 2022.
All companies, except those stated above, were incorporated in Australia. All trusts were established in Australia.
92 EVENT Hospitality & Entertainment Limited – 2022 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 2
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
Joint ventures
Associates
2022
$’000
9,637
47
9,684
2021
$’000
13,842
103
13,945
93 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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6
9
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 2
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 AGM.
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, February 2021, September 2021 and June 2022.
Accounting policy
The fair value of performance rights granted under 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 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 rights are subject to performance hurdles. 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 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.
The fair value of the amount payable to employees in respect of share-based payment awards granted to employees, which can
be settled in cash at the option of the company, is recognised as an expense with a corresponding increase in liabilities, over the
period during which the employees unconditionally become entitled to payment. The liability is remeasured at each reporting date
and at settlement date based on the fair value of the award. Any changes in the liability are recognised in profit or loss.
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).
During the year ended 30 June 2022, performance rights subject to the Executive Performance Rights Plan Rules were issued
pursuant to the Group’s LTI plan and the 2020 Recognition and Retention Incentive. Details regarding these incentive
arrangements are set out below.
97 EVENT Hospitality & Entertainment Limited – 2022 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 2
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)
LTI arrangements
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. 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.
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 the applicable targets for the award, which may include 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.
2020 Recognition and Retention Incentive
Shareholders approved at the 2020 AGM a Recognition and Retention Incentive for the CEO, and incentives on similar terms have
been granted to other key management personnel and senior executives under the 2020 Recognition and Retention Incentive.
This award was an additional equity-based award designed to recognise the additional effort required from the CEO and other
senior executives both during the COVID-19 response period and during the recovery period, and the importance of retaining the
CEO and other senior executives during this critical period. Sixty per cent of the grant value vested 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 ending 30 June 2023. Performance rights were issued on 20 September 2021 in satisfaction of
the first tranche of the award.
Set out below are summaries of performance rights awarded under the Executive Performance Rights Plan:
Type of right
Grant date
2022
Balance at
the start of
the year
Granted
Exercised
Forfeited
Performance rights
21 February 2019
390,354
Performance rights
20 February 2020
490,379
Performance rights
18 February 2021
744,357
Performance rights1
20 September 2021
Performance rights
24 June 2022
1,625,090
227,856
446,461
674,317
2021
Performance rights
15 February 2018
433,467
Performance rights
21 February 2019
403,115
Performance rights
20 February 2020
508,815
Performance rights
18 February 2021
748,386
1,345,397
748,386
Balance at
the end of
the year
461,895
694,776
221,429
446,461
(390,354)
(28,484)
(49,581)
(6,427)
(474,846)
1,824,561
(433,467)
(12,761)
(18,436)
(4,029)
390,354
490,379
744,357
(468,693)
1,625,090
1. Performance rights granted on 20 September 2021 were issued pursuant to the vesting of the first tranche of the 2020 Recognition and Retention
Incentive.
98 EVENT Hospitality & Entertainment Limited – 2022 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 2
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)
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 2022 was $13.16 (2021: $10.00) for those rights that have EPS hurdles. No performance rights were granted during
the year ended 30 June 2022 with TSR hurdles (2021: fair value of $6.99) 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
24 June 2022
Granted
18 February 2021
Granted
20 February 2020
Granted
21 February 2019
1.50%
39.24%
3.47%
$13.62
2 years
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.
Share-based payment expense
Total share-based payment expense included within employee expenses for the year ended 30 June 2022 was a charge of
$1,424,000 (2021: $1,486,000).
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:
2022
$’000
2021
$’000
Superannuation contributions recognised as an employee expense
14,493
12,052
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 – STI
Variable remuneration – LTI
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
99 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
Directors’ Report page reference
30
31
31
31
32
34
35
36
38
40
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 2
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 (continued)
KMP remuneration
The key management personnel remuneration included in employee expenses is as follows:
Employee benefits
Short term
Other long term
Equity compensation
Post employment
2022
$
2021
$
3,858,819
234,723
2,183,509
156,613
6,433,664
2,978,950
242,407
2,356,116
114,170
5,691,643
Other transactions with the Company or its controlled entities
AG Rydge is a director of Carlton Investments Limited, and Carton Investments Limited is a significant shareholder in the Company.
Carlton Investments Limited rents office space from an entity controlled by the Company. Rent is charged to Carlton Investments
Limited at a market rate and ordinary commercial terms. Rent and office service charges received during the year ended 30 June
2022 were $23,363 (2021: $23,870). 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 (2021: $5,312).
AG Rydge paid rent, levies and other costs to Group entities during the year ended 30 June 2022 amounting to $107,647 (2021:
$143,307). Rent is charged to AG Rydge at market rates and the arrangements are on ordinary commercial terms.
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.
6.3 – RELATED PARTIES
Relationships with associates
Transactions with associates included the receipt of property rental income from an associate of $70,000 (2021: $66,000). Costs
paid on behalf of an associate totalled $93,000 (2021: $61,000) and these costs were not refundable (2021: $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.
KMP
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.
100 EVENT Hospitality & Entertainment Limited – 2022 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 2
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 PROFIT/(LOSS) FOR THE YEAR TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Reconciliation of profit/(loss) for the year to net cash provided by operating activities
Profit/(loss) for the year
53,322
(48,036)
2022
$’000
2021
$’000
Adjustments for:
Depreciation and amortisation
Impairment adjustments
Profit on disposal of non-current assets
Fair value increment on investment properties
Equity accounted investment dividends
Share of equity accounted investees’ net profit
Profit on acquisition of an associate
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:
Decrease/(increase) in trade and other receivables
(Increase)/decrease in inventories
(Increase)/decrease in prepayments and other current assets
(Increase)/decrease in deferred tax items
Increase/(decrease) in income taxes payable
Increase in trade and other payables
Increase in provisions
Decrease in other liabilities
(Decrease)/increase in deferred revenue
Increase in financing costs payable
Net cash provided by operating activities
185,758
4,600
(24,610)
(30)
510
(175)
(660)
1,331
955
69
221,070
24,337
(2,258)
(1,884)
(25,731)
31,031
35,040
5,595
(152)
(8,186)
1,045
279,907
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
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.
101 EVENT Hospitality & Entertainment Limited – 2022 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 2
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
Other services
2022
$
2021
$
1,340,076
171,263
374,680
1,010,701
2,896,720
–
–
–
2,896,720
127,798
–
385,437
513,235
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
667,068
647,890
–
–
1,180,303
8,755
8,755
971,481
102 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
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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 2022, 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/(expense) 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
2022
$’000
85,089
686
85,775
1,576
422,393
35,834
36,228
386,165
219,126
12,536
40,883
113,620
386,165
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
56,906
116,044
110,466
283,416
56,089
113,635
112,595
282,319
52,743
192,637
254,646
500,026
783,442
51,426
188,156
274,902
514,484
796,803
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.
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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
Request for Arbitration against Vue Nederland BV and Vue International Bidco plc (“Vue”)
On 25 May 2022, a wholly owned subsidiary of the Group filed a formal Request for Arbitration to the German Arbitration
Institute in relation to Vue International Bidco plc (“Vue”) and Vue Nederland BV, being the purchaser guarantor and the
purchaser under the Sale and Purchase Agreement (“SPA”) signed in October 2018, for failing to meet their contractual
obligations under the SPA. This matter is progressing.
On 27 July 2022, Vue appeared before the High Court of Justice of England and Wales (“Court”) to seek an order granting
permission to convene a meeting of certain secured lenders for the purpose of approving a Scheme of Arrangement (“Scheme”)
pursuant to Part 26 of the United Kingdom Companies Act 2006. In Court filings, Vue has asserted that if the Scheme does not
become effective, Vue and its subsidiaries will be unable to meet their obligations as they fall due. Even if the Scheme becomes
effective, it is Vue's position that it will enter administration proceedings under the UK Insolvency Act.
The Group has obtained advice and is actively pursuing its legal options in relation to the Scheme including the related actions
of Vue and its subsidiaries, its directors, secured lenders and current shareholders.
Completion of the sale of Rydges North Sydney
The Group announced on 27 May 2022 that it had entered into a contract for the sale of Rydges North Sydney for a sale price of
$75 million. The sale completed on 25 July 2022.
Dividends
On 22 August 2022, the directors resolved that no final dividend be declared for the year ended 30 June 2022.
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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 Income Statement, 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 2022 respectively are set out on the following
pages:
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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)
Income Statement
Revenue
Other income
Net intercompany income
Expenses
Share of net profit from equity accounted associates and joint ventures
Depreciation, amortisation and impairments
Profit before net financing costs
Finance income
Finance costs
Net financing costs
Profit before tax
Income tax expense
Profit/(loss) after tax
Statement of Comprehensive Income
Profit/(loss) for the year
Other comprehensive income
Total comprehensive income/(expense) for the year
Summary of movements in retained earnings
Retained earnings at the beginning of the year
Profit/(loss) for the year
Retained earnings at the end of the year
2022
$’000
2021
$’000
535,278
57,845
2,924
(451,097)
(612)
(101,965)
42,373
98
(33,845)
(33,747)
8,626
(280)
8,346
8,346
1,573
9,919
404,251
117,049
771
(384,037)
(385)
(101,863)
35,786
161
(33,627)
(33,466)
2,320
(6,910)
(4,590)
(4,590)
2,505
(2,085)
438,552
8,346
446,898
443,142
(4,590)
438,552
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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 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
107 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
2022
$’000
2021
$’000
44,893
25,332
14,747
7,257
14,126
106,355
6,936
236,412
–
78
71,227
4,969
932,571
480,864
6,300
57,073
52,438
469
1,849,337
1,955,692
80,072
–
27,134
21,438
87,186
68,123
1,629
285,582
55,740
364,829
11,173
6,219
505,782
3,441
947,184
1,232,766
722,926
219,126
56,902
446,898
722,926
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
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 42 to 107 and the Remuneration Report in
the Directors’ Report set out on pages 30 to 40, 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 2022 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 2022.
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 22nd day of August 2022
108 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
S H A R E H O L D E R I N F O R M A T I O N
109 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
S H A R E H O L D E R I N F O R M A T I O N
110 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
S H A R E H O L D E R I N F O R M A T I O N
111 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
S H A R E H O L D E R I N F O R M A T I O N
112 EVENT Hospitality & Entertainment Limited – 2022 Annual Report
S H A R E H O L D E R I N F O R M A T I O N
113 EVENT Hospitality & Entertainment Limited – 2022 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 26 AUGUST 2022)
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 6,451 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
3,866
1,793
376
382
34
Number of
shares held
1,403,899
4,214,602
2,671,154
9,808,437
143,097,429
6,451
161,195,521
The number of shareholders holding less than a marketable parcel is 371.
UNQUOTED ORDINARY SHARES
There were no unquoted ordinary shares of the Company as at 26 August 2022.
PERFORMANCE RIGHTS
As at 26 August 2022, there were 202 holders of a total of 1,937,844 Performance Rights granted under the Group’s Executive
Performance Rights Plan. The Performance Rights do not carry voting rights.
114 EVENT Hospitality & Entertainment Limited – 2022 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 Pty Limited
Alphoeb Pty Limited
The Manly Hotels Pty Limited
Carlton Hotel Limited
Mr Alan Graham Rydge
BNP Paribas Noms Pty Ltd
Argo Investments Limited
National Nominees Limited
UBS Nominees Pty Ltd
Mutual Trust Pty Ltd
TN Phillips Investments Pty Ltd
Citicorp Nominees Pty Limited
BNP Paribas Nominees Pty Ltd
Mirrabooka Investments Limited
HSBC Custody Nominees (Australia) Limited - A/C 2
Mr David Christopher Seargeant
32,134,031
27,305,455
19,777,772
12,652,598
11,006,195
6,027,315
5,732,812
5,276,103
4,431,663
3,714,542
2,850,000
2,167,113
1,876,767
1,500,000
1,346,000
1,003,812
552,442
533,186
526,941
453,490
19.93%
16.94%
12.27%
7.85%
6.83%
3.74%
3.56%
3.27%
2.75%
2.30%
1.77%
1.34%
1.16%
0.93%
0.84%
0.62%
0.34%
0.33%
0.33%
0.28%
140,868,237
87.38%
ON-MARKET BUY-BACK
There is no current on-market buy-back.
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.
115 EVENT Hospitality & Entertainment Limited – 2022 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 21 October 2022 at:
Event Cinemas
505 – 525 George Street
Sydney NSW 2000.
Shareholders and proxyholders may also attend and participate in the Meeting online at https://meetnow.global/MYPJ6LH.
Shareholders and proxyholders who participate in the Meeting online will be able to watch the Meeting, cast an online vote, and
ask questions and make comments online in real time.
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.
116 EVENT Hospitality & Entertainment Limited – 2022 Annual Report