2023
Annual Report
ABN 51 000 005 103
Contents
Section
Directors’ Report
Page
4
Lead Auditor’s Independence Declaration 41
Statement of Financial Position
Income Statement
Statement of Financial Position
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Other Information
43
44
43
44
45
46
47
101
102
107
109
Acknowledgement of Country
EVT acknowledges the Traditional Owners
and Custodians of Country where we live,
work and play, and we recognise their
continuing connection to the land and
waters. We pay our respects to Aboriginal
and Torres Strait Islander peoples, and to
Elders past and present.
ANNUAL REPORT
DIRECTORS’ REPORT
Introduction
The directors present their report together with the financial report of EVT Limited, being the Company and
its controlled entities (“Group”), for the year ended June 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)
BD Chenoweth (appointed December )
PR Coates
VA Davies
DC Grant
JM Hastings (Managing Director and Chief Executive Officer)
PM Mann
RG Newton (resigned October )
Director
since
DIRECTORS’ QUALIFICATIONS, EXPERIENCE AND INDEPENDENCE STATUS
Peter Coates AO, BSc (Mining Engineering), FAICD, FAusIMM
Independent non-executive director and Board member since
, and Chairman of the Nomination and Remuneration
Committee. Mr Coates is the lead independent director.
Experience
A company director with more than years of industry
experience including as chief executive officer of Xstrata and
Glencore’s global coal businesses until his retirement in
December . 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 and awarded the Australasian Institute of
Mining and Metallurgy Medal in .
Directorships
Mr Coates is currently a director of Glencore plc and chairman
of the Industry Advisory Council for the School of Minerals and
Energy Resource Engineering, UNSW.
Alan Rydge AM
Non-executive Chairman, Board member since ,
Chairman of the Board since . Member of the Audit and
Risk Committee and member of the Nomination and
Remuneration Committee.
Experience
A company director with more than years of experience in
the film, hospitality, leisure and tourism industries. Joined the
Greater Union group in and was formerly the Group
Managing Director. He was made a Member of the Order of
Australia in .
Directorships
Mr Rydge is also a director of the listed company, Carlton
Investments Limited (appointed , chairman since ).
In addition, Mr Rydge is chairman of Alphoeb Pty Limited and
Enbeear Pty Limited.
Brett Chenoweth
Independent non-executive director and Board member since
.
Experience
A company director with more than years of operating
experience in media, technology, telecommunications and
digital businesses.
Directorships
Mr Chenoweth is chairman of Adairs Limited (ASX: ADH),
Madman Entertainment Pty Ltd, Canberra Data Centres and
The Bombora Group. He is also a director of Tabcorp Holdings
Limited (ASX: TAH) and Surfing Australia Limited, and a Senior
Advisor to H.R.L. Morrison & Co.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Valerie Davies FAICD
Independent non-executive director and Board member since
. Member of the Nomination and Remuneration
Committee.
Experience
A company director with more than 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 one 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
Ms Davies is a director of Cedar Woods Properties Limited
(ASX: CWP) and was previously a commissioner of Tourism
Western Australian (resigned June ).
David Grant BComm, CA, GAICD
Independent non-executive director and Board member since
. Chairman of the Audit and Risk Committee.
Experience
A company director and a Chartered Accountant with more
than 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
Mr Grant is a director of Retail Food Group Limited (ASX: RFG)
and The Reject Shop Limited (ASX: TRS), and was previously a
director of AB Australia Limited (ASX: AB) (resigned
October ).
Jane Hastings BComm
Managing Director and Chief Executive Officer (“CEO”) since
July .
Experience
More than years of experience in the tourism, hospitality
and entertainment sectors. Ms Hastings was previously CEO of
New Zealand Media and Entertainment (NZME) ( –
). Ms Hastings was appointed as the Group’s Chief
Operating Officer in and CEO in .
Directorships
Ms Hastings is 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
. Member of the Audit and Risk Committee.
Experience
An experienced non-executive director with years of 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
Mrs Mann is a director of Ridley Corporation Limited (ASX:
RIC), Bega Cheese Limited (ASX: BGA) and GWA Limited (ASX:
GWA) (appointed January ).
Explanation of abbreviations and degrees: AM Member of the Order of Australia; AO Officer of the Order of Australia; 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 Director.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
COMPANY SECRETARIES
GC Dean CA, ACG (CS, CGP) was appointed to the position of Company Secretary for EVT Limited in December . GC Dean was
Accounting Manager for the Company ( – ) 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 EVT Limited in February . 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, th Edition.
The Group has disclosed its Corporate Governance Statement in the corporate governance section on its website
(www.evt.com/investors). As required, the Group has also lodged the Corporate Governance Statement and Appendix G 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
Entitled
to attend
Attended
Audit and Risk Committee
meetings
Entitled
to attend
Attended
Nomination and
Remuneration Committee
meetings
Other special purpose
committee meetings (a)
Entitled
to attend
Attended
Entitled
to attend
Attended
AG Rydge
BD Chenoweth (b)
PR Coates
VA Davies
DC Grant
JM Hastings (c)
PM Mann
RG Newton (d)
6
3
6
6
6
6
6
2
6
3
6
6
6
6
6
2
4
–
–
–
4
4
4
–
4
–
–
–
4
4
4
–
5
–
5
5
–
5
–
–
5
–
5
5
–
5
–
–
4
–
2
–
4
4
–
–
4
–
2
–
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) BD Chenoweth was appointed on 9 December 2022.
(c)
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.
(d) RG Newton resigned on 21 October 2022.
During the year, directors also visited various sites to improve their understanding of the Group’s locations and operations.
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 and managing investment properties.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during the year.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
OPERATING AND FINANCIAL REVIEW
Overview
The result for the year ended June reflects strong year on year growth in Group revenue and earnings. The Group’s normalised
revenue was $,. million, up $. million or .% on prior year and normalised earnings before interest, tax, depreciation,
amortisation, the impact of AASB Leases and individually significant items (“normalised EBITDA”) was $. million, up $.
million or .%. Excluding the prior year benefit of the German government’s COVID Bridging Aid programs, Group revenue was up
$. million or .%, and EBITDA was up $. million or .%. This result was achieved in the context of an operating
environment where post COVID factors continue to present challenges including delays in film releases and recovery in international
inbound travel.
The recovery in Entertainment continued, with revenue of $. million up $. million or .% excluding the benefit of the
German government’s Bridging Aid programs in the prior year. However, due to COVID-related studio delayed film release dates for
certain key titles, Entertainment revenue was .% below the pre-COVID year ended June (“FY”). The studio delays in
film releases were partially mitigated by the Group’s business transformation initiatives delivering continued strong growth in average
admission price (“AAP”) and merchandising spend per head (“SPH”) despite broader market commentary on weakness in consumer
spend. In Australia, AAP and SPH continued to grow on prior year and were well ahead of FY up .% and .% respectively. In
New Zealand, a similar result was achieved with solid growth on prior year and exceptional growth in AAP of .% and in SPH of
.% on FY.
The Group’s Hotels and Resorts revenue of $. million was up $. million or .% and EBITDA of $. million up $.
million or .%. This was a record result for the division after adjusting for the closure of Rydges Melbourne during the majority of
the year for a major upgrade. Record average room rates and revenue per available room (“revpar”) results were also achieved with
each of the Group’s brands contributing to this outstanding result and achieving greater than fair market share.
Thredbo also achieved a record result with revenue of $. million up .% on the prior year and up .% on FY, and EBITDA
of $. million up .% on the prior year and up .% on FY. This result was achieved following a transformation in Thredbo’s
business model focussing on better capacity utilisation and delivering a premium experience.
The Group’s property portfolio is independently valued at least every three years and updated independent valuations were obtained
at June for the majority of the Group’s property portfolio. The overall independent value of the Group’s property portfolio
increased to approximately $,. million, up from $,. million at June when the previous independent valuations
were obtained, notwithstanding $. million of the Group’s non-core property disposals having been completed since June
. Excluding the properties acquired or sold between June and June , the underlying portfolio value increased
.%. This increase reflects the Group’s strategy of developing existing assets with premiumisation initiatives, acquiring properties
in key city locations which are or can be converted to operating assets, and divesting underperforming assets to recycle capital into
growth projects. The normalised EBITDA for the Group’s Property division was $. million, down $. million on the prior year, with
the success of the Group’s non-core property divestment strategy resulting in a minor reduction in rental revenue.
The Group’s unallocated corporate costs at the EBITDA level increased $. million to $. million due to short term incentive
payments and an increase in insurance premiums. However, the Group’s underlying unallocated costs were below FY despite
market cost challenges, adjusting for the impact of insurance premium increases and short-term incentive payments.
The Group’s normalised EBITDA of $. million was up $. million (.%) on the prior year. Excluding the benefit of the German
government’s Bridging Aid program in the prior year, normalised EBITDA was up $. million (.%). This was a strong result
despite headwinds prevailing in a cost challenged market, and a direct result of a more agile operating business with growth strategies
delivering positive outcomes.
The Group’s profit before interest, individually significant items, the net impact of AASB Leases, and income tax expense was
$,,, $,, (.%) above the prior year. Normalised profit after tax was $,, (: $,,) and the
reported net profit after income tax was $,, (: $,,). The reported net profit after tax included the profit on
sale recognised on disposal of The Miller Hotel (formerly Rydges North Sydney) and the Darwin Cinema Centre, and proceeds from
the settlement of the dispute with Vue in relation to the CineStar Germany transaction.
The Group’s net debt at June was $. million, which was below pre-COVID net debt levels. The enduring strength of the
Group’s balance sheet will enable the Group to invest for growth and capitalise on opportunities in the future.
EVT Group Strategy
A change of the Company’s name to EVT Limited was approved by shareholders at the Annual General Meeting. The new name
better tells the story of what we do, including Entertainment, Ventures and Travel, and how we do it, with the launch of a strategic
framework. This framework puts the customer at the centre, with success measured based on net promoter score and sentiment
tracking and includes the Group’s three strategic goals to grow revenue above market, maximise assets, and pursue business
transformation initiatives to grow earnings. The new strategic framework acknowledges that EVT can only be successful in the long
term by driving employee engagement, making a positive social impact on the communities in which it operates, and supporting a
better tomorrow through environmental sustainability strategies and initiatives, which collectively form the Group’s Elevate program.
The Group continues to make strong progress against the three strategic goals, being:
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
. Grow revenue above market by ensuring the customer experience and employee culture continue to secure results above
fair market share.
. Maximise assets by growing the value of the EVT property portfolio through developing existing assets with premiumisation
initiatives, acquisition of properties in key city locations which are or can be converted to operating assets, and divesting
underperforming assets to recycle capital into growth projects.
. Business transformation initiatives to continually improve operating models to mitigate cost pressures and maintain or
improve margins.
The achievement of the EVT three strategic goals is supported by the Group’s Elevate program:
. Elevate our Customers which includes growing our loyalty membership, listening and tracking customer feedback to target
investment and adoption of new technology and capabilities to improve the customer experience.
. Elevate our People which includes recruitment, development, and retention of quality talent by creating a positive and
empowered culture, adopting continuous employee feedback, and measuring outcomes.
. Elevate our Community which includes encouraging daily evidence of our “Everyone Belongs” diversity and inclusion
approach and playing our part to support the communities we operate in.
. Elevate our Environment which recognises our role in ensuring a better tomorrow through sustainable practices and
procurement, sustainable design, and transparency and reporting.
Maximising Assets
The EVT property portfolio is currently valued at approximately $,. million, reflecting an underlying % increase in value
compared to the prior valuations (excluding the properties acquired or sold between June and June ). This increase
reflects the Group’s strategy of developing existing assets with premiumisation initiatives, acquiring properties in key city locations
which are or can be converted to operating assets, and divesting underperforming assets to recycle capital into growth projects.
The Group exceeded its target to realise gross proceeds of $ million from the sale of non-core property assets following the sale
of The Miller Hotel (formerly Rydges North Sydney), which settled in July . The hotel has been retained in the Group’s portfolio
under a management agreement. The sale of the Darwin Cinema Centre settled in December . Proceeds from asset sales during
the year were $. million and the total proceeds from non-core property sales to date are $. million, which represents a
premium of approximately % over the most recent valuations of the properties sold. Whilst the Group’s non-core property proceeds
target has been exceeded, there are a small number of other properties, including four in Germany, that have been identified as non-
core, and divestment of these properties will be considered when market conditions are favourable.
Property acquisitions completed in the year included Cook Street, Auckland, which is the location of the new flagship LyLo
Auckland accommodation concept, and the Limes Hotel, Brisbane, which will be converted to the first Australian LyLo in the year
ending June (“FY”). This will bring the Group’s footprint in the budget sector to four properties with a total of pods
and rooms. LyLo Auckland was launched in December . LyLo is an innovative new design-led lifestyle budget
accommodation experience, and the Auckland property includes individual sleeping pods, double rooms with shared
bathrooms, and ensuite rooms. The performance of LyLo Auckland has exceeded expectations since opening.
The Group continues to invest in its key hotel assets, including the major upgrade of Rydges Melbourne, which commenced reopening
in May , and QT Gold Coast, where rooms were completed in the first half and conferencing was completed in the second half.
Early results from both upgrades are exceeding expectations. The net promoter score (“NPS”) for Rydges Melbourne is already in the
excellent range. As previously disclosed, Rydges Melbourne contributed around % of Hotel group EBITDA in FY, and whilst it is
expected to once again be the Group’s most profitable hotel, it may take one to two years for earnings to build and stabilise. QT Gold
Coast is experiencing a similar lift in NPS and a strong pipeline of conference interest, as well as winning four awards at the recent
Queensland Hotels Association Awards, including the award for Best Meeting & Events Venue. Planning is underway for future
upgrades of QT Canberra and Rydges Queenstown.
The Group has continued to make good progress with the two major development projects at George Street and - George
Street, Sydney. A Stage Two Development Application was approved in May for the proposed George Street, Sydney
development of a mixed-use development including prime George Street retail space, a premium Event Cinema, a QT hotel, and
residential apartments. We expect to assess construction costs for the development by the end of FY. The City of Sydney has
previously approved the Development Application for the podium component of the proposed - George Street development,
whilst the Group has withdrawn the Stage One Development Application for a commercial office tower on this site, with planning
commenced for a hotel tower as an alternative. The timing of commencement of the George Street and - George Street
developments will be subject to market conditions.
The Group’s hotel strategy has evolved to include all segments of the market from luxury to budget accommodation, and the
Independent Collection has been created to leverage the Group’s expertise by introducing new and innovative management and
service models. During the year there was net growth in the Group’s portfolio of eight hotels and , rooms, including Rydges
Hunter Valley Resort, and the fast-growing Independent Collection now comprises hotels with , rooms.
In Australia, premiumisation upgrades of Event Cinemas Chermside was completed in the year and Event Cinemas Innaloo was
partially completed, and an upgrade of Event Cinemas Robina is underway. The Group was also successful in securing the
management of IMAX Darling Harbour in Sydney, which is due to open in the second quarter of FY. The new seven-screen premium
Event Cinemas Queensgate in Wellington, New Zealand partially opened in December, including an IMAX screen, and was fully
operational in March .
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
FY outlook
The financial year has started positively for the Entertainment Group with the record-breaking performance of Barbie and
Oppenheimer, the Group’s Hotels maintaining record rates, and travel normalising to pre-COVID patterns. Thredbo has been
impacted by a weather-driven delayed start to the season in June and poor snow conditions persisting into July and August.
The Entertainment Group’s performance will be subject, as always, to the overall appeal of the film line-up. The current writers’ and
actors’ strike in Hollywood may lead to delays in releases for certain titles. When blockbuster titles are released, the Group expects to
continue to benefit from its premiumisation strategy driving an improvement in yield which has been proven to date despite market-
wide pressure on consumer spending. Notwithstanding the recent announcement of film delays including Force of Nature: The Dry
, Spider-Man: Beyond the Spider-Verse, Marvel title Kraven, and the latest instalment in the Karate Kid series, and based on the
current film line-up, the Group expects box office in FY box office to perform better than FY.
The Group’s Hotels occupancy continues to grow, with average room rates stabilising around record levels. There has been a solid
recovery in corporate travel, including conference and events. Leisure travel has normalised to pre-COVID levels with regional markets
returning to more regular patterns of demand after outperforming during COVID, and metropolitan markets improving. China’s
announcement returning Australia to its preferred destination list this month should support a continued recovery in the international
inbound segment in FY, subject to airline capacity.
Thredbo’s winter season has been impacted by poor weather conditions resulting in a late start, fewer snowmaking days, and
increased wind-hold days with key lifts unable to operate. Approximately % of ski runs have been able to open compared to %
in the prior year and the winter. Despite these challenges, Thredbo’s EBITDA for the first quarter of FY is expected to be
broadly in line with the winter. The Group’s new business model enables the resort to deliver a stronger financial performance
on weaker snow conditions. Summer performance is expected to reflect continued demand for mountain biking, subject to weather
conditions.
The results delivered in FY demonstrate that the Group’s premiumisation initiatives and operating model enhancements can offset
cost increases when demand is strong. Investment in compliance and risk management continues to grow, whilst the Group is also
increasing investment in its sustainability initiatives. The Group has a strong foundation for the future and greater agility to respond
to market challenges that may arise in FY.
Key projects in FY
The Entertainment Group will increase the premium cinema experiences including proprietary concepts and global premium formats
such as IMAX, DX and ScreenX. The appeal of Thredbo will continue to grow with the introduction of the year-round Alpine Coaster
attraction, further investment in snowmaking, and three additional mountain biking trails. The Hotels division will continue to actively
pursue new hotel opportunities across the budget to luxury market segments. In the budget segment, the development of a flagship
Australian LyLo on surplus land at QT Gold Coast is under consideration, and an expansion of pods at LyLo Auckland through the
development of level four of Cook Street is at the planning stage.
The Group will continue to explore ways to improve the value of the property portfolio through acquisitions and progressing the priority
development projects, including planning for the QT Canberra and Rydges Queenstown upgrades, the introduction of a new micro
guest room concept at Atura Adelaide Airport, and an upgrade of guest rooms at QT Wellington.
Work will continue on the Group’s major developments, including the assessment and tender of construction costs for the George
Street development by the end of FY, and planning has commenced for a hotel tower above the previously approved podium of the
- George Street development.
| EVT LIMITED ANNUAL REPORT
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DIRECTORS’ REPORT
An analysis of the last five years is outlined below:
Total revenue and other income ($’)
,,
,
,
,,
,,
Basic earnings per share (cents)
Total dividends declared(a) ($’)
Ordinary dividends per share (cents)
Special dividends per share (cents)
.
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(.)
(.)
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–
–
–
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–
(a) No dividends were declared in relation to the 30 June 2022 and 30 June 2021 years. A final dividend was declared in relation to the year ended 30 June 2023
(refer also to Note 4.2).
INDIVIDUALLY SIGNIFICANT ITEMS
Individually significant items comprised the following:
Profit on sale of properties
Settlement of a legal dispute relating to the sale of a business segment
Impairment charges
Hotel and cinema pre-opening costs
Transaction and other costs associated with the sale of a business segment
Other expenses (net of income items)
Disposal of assets on redevelopment or damage
Restructure costs, redundancies and staff retention costs arising as a result of COVID-
Reversal of impairment charges booked in previous years
Individually significant items before tax
Income tax expense
Individually significant items after tax
$’
,
,
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–
–
–
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,
INVESTMENTS
The Group acquired property, plant and equipment totalling $,, 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 Cinemas Shellharbour and IMAX Sydney in New South Wales, Event Cinemas Chermside and
Event Cinemas Robina in Queensland, Event Cinemas Innaloo in Western Australia and Event Cinemas Queensgate in New
Zealand; and
– other refurbishment requirements for Thredbo, cinemas, hotels and resorts.
On September , the Group acquired the freehold and existing business of a hotel property situated in Fortitude Valley trading
as the Limes Hotel. The purchase price was $,,. On September , the Group acquired an additional % interest in
Rydges Latimer Holdings Limited (“Latimer”) taking the Group’s total ownership interest in Latimer to %. Latimer owns and operate
the Rydges Latimer Christchurch hotel. The net consideration paid for the acquisition of % of the total share capital of Latimer was
NZ$,, (A$,,). On May , the Group acquired a freehold interest in Cook Street, Auckland, which is the
location of the LyLo Auckland accommodation business operated by the Group. The purchase price was NZ$,,
(A$,,).
Further information relating to these acquisitions has been outlined within Note . to the financial statements.
PROPERTY
The Group exceeded its target to realise gross proceeds of $ million from the sale of non-core property assets following the sale
of The Miller Hotel (formerly Rydges North Sydney), which settled in July . The hotel has been retained in the Group’s portfolio
under a management agreement. The sale of the Darwin Cinema Centre settled in December . Proceeds from asset sales during
the year were $. million and the total proceeds from non-core property sales to date are $. million, which represents a
premium of approximately % over the most recent valuations of the properties sold. The Group has also continued to make
progress with the two major development projects at George Street and - 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 June , and the total value of the Group’s interest in land and buildings based on these
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
independent valuations is $,,, (refer to Notes ., . and . to the financial statements) whilst the total written-down
book value of these land and buildings including integral plant and equipment at June was $,,,.
The total value of the Group’s properties as at June included:
Valuation of:
Interest in land and buildings
Investment properties
Assets held for sale
Valuations
(a)
$’
,,
,
,
Carrying value
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Valuations
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,,
Less: assets subsequently sold
—
—
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Total
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,,
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(a) Valuations are based on independent valuations (as outlined in Note . to the financial statements).
CAPITAL STRUCTURE
Cash and term deposits at June totalled $,, (: $,,) and total bank debt outstanding was
$,, (: $,,).
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 June , the Group had
no interest rate hedges (: nil).
LIQUIDITY AND FUNDING
The Group’s main secured bank debt facilities were amended and restated on May and consist of $,, (:
$,,) in revolving multi-currency general loan facilities and a $,, (: $,,) credit support facility for the
issue of letters of credit and bank guarantees. The main secured bank 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 .).
Debt drawn under the main secured bank debt facilities bears interest at the relevant inter-bank benchmark reference rate plus a
margin of between .% and .% per annum. As at June , the Group had drawn $,, (: $,,)
under the main secured bank debt facilities and $,, (: $,,) under the credit support facility. Debt facility
components subject to interest rate swaps used for hedging at June totalled $nil (: $nil).
A New Zealand-domiciled subsidiary has general loan facilities secured against a hotel property. The subsidiary had drawn
NZ$,, (A$,,) under the facility at June (: NZ$,, (A$,,)). Prior to September
the subsidiary was accounted as a joint venture as the Group owned a % interest in the subsidiary. The Group currently has
an ownership interest of % (: %) and expects to achieve % ownership of the subsidiary on September , via a
stepped acquisition arrangement.
CASH FLOWS FROM OPERATIONS
Net cash inflows from operating activities as reported decreased to $,, from $,, in the prior year. After
adjusting to include the payment of lease liabilities, net cash inflows from operating activities decreased to $,, from
$,, in the prior year. This movement was driven a reduction in other revenue and income, including government subsidies
and support.
IMPACT OF LEGISLATION AND OTHER EXTERNAL REQUIREMENTS
There were no changes in environmental or other legislative requirements during the year that have significantly impacted the results
of operations of the Group.
REVIEW OF OPERATIONS BY DIVISION
ENTERTAINMENT AUSTRALIA
As at June
Cinema locations*
Cinema screens*
Movement
—
()
* Managed and joint venture cinema sites (excludes Moonlight Cinema sites and screens and the State Theatre).
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Entertainment Australia revenue was $. million, a .% increase on the prior year. The Group’s box office revenue increased by
.% on the prior year and market share was maintained at pre-COVID FY levels despite the successful strategy to exit
underperforming cinema locations operated by the Group in recent years.
The top performing titles at the Australian box office in the year were: Avatar: The Way of Water ($. million); The Super Mario Bros.
Movie ($. million); Thor: Love and Thunder ($. million); Minions: The Rise of Gru ($. million); and Guardians of the Galaxy
Volume ($. million). The market box office contribution of the top films recovered to only .% below the pre-COVID FY
levels, demonstrating the enduring appeal of quality blockbuster film releases. The appeal of these films resulted in Avatar: The Way
of Water being the third best performing title of all time in the Australian market, and The Super Mario Bros. Movie the top family film
since ’s The Lion King.
Premium concepts were strongly favoured by customers, with admission contribution from premium concepts increasing by .
percentage points over the pre-COVID FY and premium admissions now represent over one-third of all admissions. The
premiumisation strategy resulted in a record yield result with average admission price increasing by .% over the pre-COVID FY.
In addition, a period of record merchandising spend per head was achieved, increasing .% over the pre-COVID FY. Growth was
also achieved on prior year, with record AAP and SPH results achieved in the majority of months during FY.
The Group’s direct customer relationships remain exceptionally strong with Cinebuzz representing % of cinema visits and % of
online transactions, up two percentage points on the prior year.
The overall normalised EBITDA profit for the year ended June was $,,, $,, (.%) above the prior year.
During the year, the Group continued its premiumisation across the circuit at the key sites at Chermside (Brisbane) and in selected
screens at Innaloo (Perth). In addition, 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. These
included: an upgrade of BCC Strathpine (North Brisbane) with two auditoriums being upgraded to include daybeds, reclining seats
and premium fixed back seating; a refurbishment of BCC Cairns Earlville, including a new V-Max screen and the inclusion of premium
seating options in five other auditoriums; and the upgrade of three auditoriums at Event Cinemas Robina (Gold Coast) with premium
seat choices.
Refurbishment works at Event Cinemas Robina are continuing in FY including a new global premium concept ScreenX which
opened in August , and three Gold Class auditoriums will also be refurbished during the year. IMAX Sydney is due to open in
October . Other upgrades planned for FY include: BCC Rockhampton with premium seat choices in all six auditoriums; the
addition of premium seat options to four auditoriums at Event Cinemas Glendale including a new V-Max screen; a new DX and the
upgrade of the Gold Class screens at Event Cinemas Innaloo; an upgrade of nine of the screens at Event Cinemas Campbelltown
including a ScreenX auditorium; a new DX and the upgrade of four other screens at Event Cinemas Castle Hill; and nine additional
screen upgrades at other key locations.
ENTERTAINMENT NEW ZEALAND
(Note: all amounts in Australian dollars unless otherwise stated)
As at June
Cinema locations*
Cinema screens*
* Managed and joint venture cinema sites.
Movement
Entertainment New Zealand revenue was $. million or .% up on the prior year. Excluding New Zealand government subsidies
in the prior year, revenue increased $. million or .% year-on-year.
The Group’s box office revenue increased by .% and market share improved by . percentage points on the prior year. The top
performing titles at the New Zealand box office in the year were: Avatar: The Way of Water (NZ$. million); Thor: Love and Thunder
(NZ$. million); The Super Mario Bros. Movie (NZ$. million); Minions: The Rise of Gru (NZ$. million); and Guardians of the Galaxy
Volume (NZ$. million). Avatar: The Way of Water is the highest grossing film of all time in the New Zealand market, exceeding the
previous Avatar which grossed NZ$. million. Similar to Australia, the market box office contribution of the top films contribution
recovered to exceed the pre-COVID FY, demonstrating the enduring appeal of quality blockbuster film releases.
As evidenced in Australia, the Group’s 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 AAP increasing by .% over the pre-COVID FY and up .% on prior year. In addition, a record period of SPH was
achieved, up .% on pre-COVID spend per head and up .% on prior year. Cinebuzz maintained its strong influence, with
Cinebuzz representing approximately % of all online transactions.
The EBITDA result for the year ended June was $,, $,, below the prior year. Excluding New Zealand
government subsidies in the prior year, EBITDA increased $,, on the prior year.
During the year, the Group reopened the Queensgate site located in Wellington, which was closed in November due to
significant earthquake damage and subsequent demolition. The new site partially opened in December with four of the seven
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
auditoriums ready for use and was fully operational in March . The premiumisation upgrade includes a large games zone,
branded PLAY, an IMAX screen which includes recliner seats and premium fixed back seats, a V-Max screen, and three auditoriums
with the two-seat concept with reclining seats and premium fixed back seating.
ENTERTAINMENT GERMANY
(Note: all amounts in Australian dollars unless otherwise stated)
As at June
Cinema locations*
Cinema screens*
* Managed and joint venture cinema sites.
Movement
()
()
Entertainment Germany revenues were $. million, up .% excluding the benefit of the German government’s Bridging Aid
programs in the prior year.
The top-selling titles in the German market included: Avatar: The Way of Water (. million admissions); The Super Mario Bros. Movie
(. million admissions); Minions: The Rise of Gru (. million admissions), the German production School of Magical Beasts - Part
(. million admissions) and Puss in Boots: The Last Wish (. million admissions). The top ten films totalled . million admissions,
up .% on the prior year. Avatar: The Way of Water grossed €. million at the German Box Office, making it the highest-grossing
title ever in the German market, surpassing its predecessor Avatar by approximately €. million.
SPH was strong, increasing by .% over the prior comparable period and by .% over pre-COVID FY. AAP increased by .%
over the prior comparable period and .% over pre-COVID FY.
The Group introduced premium cinema concepts across screens prior to the opening of Avatar: The Way of Water which were well
received by customers and delivered improvements in yield. The Group is reviewing additional locations for premium cinema concepts
to be introduced.
Energy costs remain an important issue due to the geopolitical situation in Europe. On a like-for-like basis, energy costs were €.
million (A$. million) higher than in FY and €. million (A$. million) higher than in the prior year. The Group continues to seek
to mitigate the cost impact through activated management initiatives to reduce energy consumption. In addition, the German
government has launched an energy subsidy program for consumers and businesses, where the current electricity price per kWh is
capped and there is also a Culture Fund Energy subsidy that also applies for calendar year .
The prior year included €. million (A$. million) of Bridging Aid subsidies principally relating to the year ended June .
The current year result included COVID-related assistance and subsidies totalling €. million (A$. million).
Normalised EBITDA for the fiscal year June was $. million, $. million below the prior year. Excluding the benefit of the
German government’s Bridging Aid programs in the prior year, EBITDA was up $. million (.%) on the prior year and up $.
million (.%) on the pre-COVID FY.
HOTELS AND RESORTS
As at June
Locations*
Rooms*
Locations (owned)
Rooms (owned)
,
,
,
,
Movement
,
()
* Owned, managed and other hotels with which the Group has a branding, license, or affiliate agreement. Includes Lylo ensuite rooms but excludes Pods.
Overall Hotels and Resorts revenue was $. million, an increase of .% on the prior year, a record result on a like-for-like basis
adjusting for the temporary closure of Rydges Melbourne for upgrade works.
During the year, markets increasingly began the return to pre-COVID trading patterns. As the short-term post-COVID boom in
domestic leisure travel normalised back to pre-COVID patterns, other segments rebounded led by accelerating corporate and
conference demand, and the early stages of a recovery in international arrival numbers.
The strong average daily rate was a key contributor to the result. The positive rate premium achieved over the pre-COVID FY result
was maintained consistently across each quarter of the year.
Food and beverage was also a strong contributor to the result, with conference and events revenues and forward holdings from this
segment particularly encouraging. Conference and events revenue for the year was up .% on a like-for-like basis adjusting for the
closure of Rydges Melbourne.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Direct bookings made via the Group’s websites achieved record growth, yielding more direct business and increased levels of fee
income from the managed and licensed portfolios.
The Group continues to implement a range of activities under its Elevate program which assisted in countering the widely reported
hospitality staff shortages and resulted in customer and employee satisfaction scores towards the upper end of industry benchmarks.
At a brand level, Rydges, QT and Atura hotels continue to achieve above fair market share with hotels trading under the Independent
Collection by EVT also performing well. Performance across the Group’s managed and licensed portfolio was consistent with the
owned hotel performance resulting in a record year fee and commission income.
The refurbishment of guest rooms, public spaces and conference facilities at QT Gold Coast was completed during the year. These
works included the launch of qtQT, a cabin accommodation and conference and events concept developed in a previously non-
revenue generating area of the hotel, and an upgrade of the guest rooms. QT Gold Coast is experiencing a lift in NPS and a strong
pipeline of conference interest, as well as winning four awards at the recent Queensland Hotels Association Awards, including the
award for Best Meeting & Events Venue. The redevelopment of Rydges Melbourne, which includes the introduction of apartment
room types and an expansion of the conference area by over , square metres was substantially completed during the year with
the rooms opening in May and the conference and events space opening in June .
The Group’s hotel growth strategy has evolved to include all segments of the market from luxury to budget accommodation. The
Independent Collection has been created to leverage the Group’s expertise by introducing new and innovative management and
service models. This momentum was sustained during the year, with net growth of eight hotels and , rooms in the portfolio,
including Rydges Hunter Valley Resort, Rydges Rotorua, Rydges King Square Perth, Rydges Darling Square Sydney, Hotel Totto
Wollongong, Hotel Alba Adelaide, LyLo Auckland and Limes Brisbane. The Independent Collection now comprises hotels with
, rooms. Pleasingly, the Group has already offset the impact on owned hotel earnings of the Group’s successful property
divestment strategy.
In the budget segment, the Group launched its new flagship LyLo Auckland accommodation concept in December , and
completed an acquisition of LyLo Auckland property in May . LyLo is an innovative new style-led lifestyle budget
accommodation experience, and the Auckland property includes individual sleeping pods, double rooms with shared
bathrooms, and ensuite rooms. The performance of LyLo Auckland has exceeded expectations since opening, Jucy Snooze
Queenstown and Christchurch have been rebranded to LyLo in August , and the first Australian LyLo will open in Brisbane with
the conversion of the previously acquired Limes Hotel in FY. This will bring the Group’s footprint in the budget sector to four
properties with a total of pods and rooms.
Normalised EBITDA of $. million increased over the prior year by $. million (.%), a record result adjusting for the closure
of Rydges Melbourne during the year.
THREDBO ALPINE RESORT
The new business model underpinned the winter season record result for Thredbo resulting in revenue, normalised EBITDA and
normalised profit before interest and income tax (“PBIT”) records. Revenue for the year was a record of $. million, .% above
the prior year and .% above FY. EBITDA for the year was also a record $. million, .% above the prior year and .%
above FY, whilst normalised PBIT was $. million, .% above the prior year and .% above FY.
The winter season also benefited from favourable weather conditions enabling the full resort to open for trade on the June
opening weekend. Customer sentiment improved as a result of the new business model focussed on less queuing times generating
more average runs per customer.
The summer season was affected by unusually wet and windy weather conditions combined with unseasonal snowfalls making
mountain biking operation very difficult. The summer season experienced snowfall throughout November resulting in a delayed start
to the season and impacted trading days. Unusual wind conditions led to multiple days of closures including the three main trading
days of Easter. As a result, tourist ride and mountain bike visitation were down % and % respectively, leading to a % decrease
in normalised revenue over the summer period when compared with the prior year. However, this result was still % up on the
comparable pre-COVID period in FY.
The -day delayed opening to the winter season in June , combined with warmer conditions impacting snowmaking, less
natural snowfall and unprecedented wind patterns, has impacted the ability to trade. Only % of ski runs were able to open in June
with skier access scans for the period were down %, whilst revenue was only down %, with the new business model
offsetting the impact through higher yields.
Costs were well controlled despite inflationary and wage pressures, the EBITDA margin increased by . percentage points when
compared with the pre-COVID FY. The revised business model continues to be successful across both seasons providing guests
with a more premium experience and customer sentiment remained high across both the winter and summer months.
Progress on the Thredbo premiumisation growth plan is continuing. Construction of a further three mountain bike trails in the Cruiser
area was completed in the year taking the total number of trails to . Upgrades to the snowmaking system including pipe
replacement and the installation of six new snowmaking fan guns on Supertrail was completed prior to the winter season. The
Alpine Coaster installation has commenced construction and is expected to add a further year-round attraction to the resort and is
scheduled to be completed for the winter season. Preparatory work has commenced for the replacement of the two-seater
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Snowgums chairlift with a new six-seater chairlift, with construction scheduled for completion for the winter season, subject to
the necessary planning approvals. Further snowmaking upgrades on the lower Supertrail and mid slopes is being undertaken and
three new mountain bike trail upgrades taking total trails to is continuing.
PROPERTY AND OTHER INVESTMENTS
Segment revenue was down $. million to $. million, primarily due to the successful property divestments of Canberra Civic and
Double Bay in the prior year. The normalised PBIT of $. million was $. million below the prior year. Pleasingly, the earnings
associated with the divestments have been more than offset with earnings growth from the new hotel growth strategy.
UNALLOCATED REVENUES AND EXPENSES
The Group’s unallocated corporate costs at the EBITDA level increased $. million to $. million due to short term incentive
payments and an increase in insurance premiums. However, the Group’s underlying unallocated costs were below FY despite
market cost challenges, adjusting for the impact of insurance premium increases and short-term incentive payments.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
DIRECTORS’ REPORT
Business Strategies and Risks
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 $. 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, shareholders approved a change of the Company’s name to EVT Limited on
October .
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:
| EVT LIMITED ANNUAL REPORT
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DIRECTORS’ REPORT
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
Safety and wellbeing remain the Group’s highest
priority. The Group is subject to inherent
operational risks that could potentially result in
serious injury or fatality of employees, contractors
or members of the public, 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.
How we are responding
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 June . The
Group monitors and reports on safety metrics
which measure work-related injuries and lost
time, with regular reporting to the Board.
Pandemics
As COVID- has demonstrated, a pandemic,
epidemic or flu outbreak has the potential to
materially impact the Group’s operations,
including due to government mandated closures
or domestic or international travel restrictions.
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,
Property Values
consideration of hedging exposures and
strategies, and compliance with banking
covenants will enable the Group to achieve its
future strategic objectives, including the planned
major property developments.
The Group’s property portfolio has a fair value at
June of approximately $. 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.
| EVT LIMITED ANNUAL REPORT
In response to COVID-, detailed COVID-
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 complied with the relevant COVID-
safety plans. The operational and financial
impacts of COVID- 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 law, including
modern awards and enterprise bargaining
agreements, and this system is subject to
periodic external reviews.
The Group has implemented detailed treasury
policies and procedures to manage and monitor
compliance with banking covenants and hedging
policies approved by the Board.
The Group has recently completed a successful
divestment of non-core properties, realising
proceeds of $. million, representing a
premium of % over the most recent valuations
of the properties sold. Substantially all the
remaining Group properties are operating assets,
reducing the Group’s exposure to cyclical
changes in property valuations.
DIRECTORS’ REPORT
Key risks and
opportunities
Property Resilience
Potential impact
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, or 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 strike action, 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.
The Group operates in highly competitive
markets, and customers have alternatives to the
Group’s entertainment and travel products and
services. Increasing 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.
How we are responding
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 any potential future breakdown in
relations with existing partners.
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 in its Modern Slavery Statement, available
at www.evt.com/investors.
Cyber Security and
Data Privacy
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.
Legal and Regulatory
Compliance
The Group operates in several geographic regions
with differing legal regimes and legislative
requirements. A failure to comply with regulatory
obligations and local laws could adversely affect
the Group’s operational and financial
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.
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 regular 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. The compliance management
framework is subject to periodic internal and
external review. Any exceptions are reported to
the Board, together with remediation action
plans.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Key risks and
opportunities
Environmental
Sustainability and
Climate Change
Potential impact
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 insurance or result 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.
How we are responding
The Group has begun responding to the Task-
force on Climate-related Financial Disclosures
(“TCFD”) recommendations and further
information regarding the Group’s response to
climate-related risks and opportunities is set out
below. The Group has implemented a robust risk
management framework to manage compliance
with its specific environmental obligations in
Thredbo.
ENVIRONMENTAL SUSTAINABILITY
The Group has continued its long-term focus on contributing to a sustainable future. Managing the Group’s impact on 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 Sustainability framework of focus areas and goals and continues to work to respond to the TCFD
framework, details of which are set out below.
FOCUS AREAS AND GOALS
The Group’s environmental sustainability focus areas include:
– sustainable practices and procurement;
– sustainable design; and
– transparency and reporting.
A summary of the goals for each of these focus areas is set out in the table below together with an update on the progress achieved
in the year ended June :
Focus area
Goal
Goal description
Purpose
FY Progress
Sustainable
practices and
procurement
Sustainable
design
Transparency
and reporting
Supporting our
focus areas
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
Reduce impact
Obtain National Australian Built
Environment Rating System (“NABERS”)
ratings for owned property
Align with
standard
Consider and target sustainable design
outcomes including appropriate
certifications for capital expenditure
projects
Align with standard
Respond to climate-related risks and
opportunities with TCFD reporting
Align with standard
Raise awareness for environmental
protection initiatives to support our
customers and team members
Strengthen the implementation of our
goals through integrated and
collaborative partnerships
Actively improve
Actively improve
Group waste audit
completed
Renewable energy
strategy in
development
NABERS ratings
completed for
Australian owned
hotels
Targeting Green
Star +/Carbon
Neutral at
George Street
Scope boundary
assessment
completed
Communications
strategy
implemented
Partner
engagement
ongoing
An update regarding the Group’s response to climate-related risks and opportunities and the TCFD reporting framework has been
provided below.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
TRANSPARENCY AND REPORTING – CARBON EMISSIONS
Set out below is a summary of the Group’s Scope and carbon emissions (tCOe) for the financial year ended June . The
carbon emission data has been compiled based on information provided by the Group’s energy retailers and other relevant source
data. 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. The Group’s total Scope and total Scope (location based) carbon emissions for
the year ended June have been subject to limited assurance procedures performed by KPMG.
Total emissions (tCOe)
Scope
Natural gas
Stationary fuels
Transport fuels
Other
Scope (location based)
Electricity
Total Scope and Total Scope emissions
By geographic location:
Australia
New Zealand
Germany
By division:
Cinemas
Owned hotels
Managed hotels
Thredbo
Other
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
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.
The Group has undertaken an assessment of the boundaries of its indirect Scope carbon emissions and will complete its Scope
carbon emission review in FY.
The chart below illustrates the Group’s total Scope and location-based Scope carbon emissions over the past five years:
Energy efficiency initiatives, including the replacement of old plant and equipment with new more efficient models, and change in
the market mix of renewable electricity generation has supported a reduction in the Group’s Scope and Scope carbon emissions
for the year ended June when compared with the pre-COVID year ended June of approximately %.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
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
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 FY.
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.
The Group has undertaken climate-related scenario analysis for two distinct scenarios:
– a “Fast Action” scenario where warming is limited to below oC above pre-industrial levels; and
– a “Current Policy” scenario where warming exceeds oC above pre-industrial levels.
Key characteristics of the scenarios considered are summarised in the table below:
Fast Action(a)
Temperature outcome: <oC warming by
– Fast curtailment of emissions from now
– High carbon price (>$/t) and strict and coordinated
Current Policy(b)
Temperature outcome: >oC warming by
– No additional climate policy action, or reversal of current
policy
emissions reduction policy
– Physical impacts are severe, with regular impacts to built
– Rapid decline in fossil fuel use and transition to renewable
environments and flow-on economic damage
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
– Fossil fuel consumption continues to grow out to
– Little investment in abatement technology, with adaptation
being the focus of research and development
– 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”) . (low warming) and Shared
Socioeconomic Pathway (“SSP”) (“taking the green road”).
(b) The Current Policy scenario aligns with RCP . (high warming) and SSP (“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:
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.
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.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Thredbo
Potential impact
As previously identified and disclosed, Thredbo’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 range of risks and present
opportunities, particularly with regard to the
availability of key products, and the cost of those
products in the future.
How we are responding
Advancements in technology may support
Thredbo to improve snowmaking capabilities,
subject to water availability, and long term
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
Physical – Chronic
Physical – Chronic
Physical – Chronic
Fast Action
(below oC)
Current Policy
(above oC)
Fast Action
(below oC)
Current Policy
(above oC)
Fast Action
(below oC)
Current Policy
(above 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
Physical climate impacts on
agricultural products increase
costs of supply
– Identification of alternate supply and
flexibility in food and beverage offerings
Increased frequency and severity
of severe weather events cause
disruptions in supply chains
– Forward planning for seasonal products and
ensuring supply chain flexibility and diversity
Physical – Acute
and Chronic
Fast Action
(below oC)
Current Policy
(above oC)
Increased frequency and severity
of climate impacts on property
and plant availability and
operating costs
– 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
Physical and
Transition – Market
Fast Action
(below oC)
Insurance premiums significantly
rise due to perceived higher
exposure to climate-related risks
– Property enhancements to reduce exposure
and minimise impact of weather events
– Consideration of locations of operations and
Current Policy
(above oC)
insurability based on long-term climate
change projections
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
TCFD Category
Scenario
Climate-related Risk
Key mitigating actions
Transition – Policy
Fast Action
(below oC)
Introduction of a carbon price
raises cost of food and beverage
products
– Improved diversity of local product suppliers
– Engagement with suppliers to identify low-
carbon alternatives
Transition – Policy
Fast Action
(below oC)
Introduction of a carbon price
raises the cost of energy
– 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
Transition –
Technology
Fast Action
(below oC)
Development and refurbishment
of property provide opportunities
for more efficient design and
consumption
– Consideration of climate-related
opportunities for new developments
– Engagement with landlords during design
and development stage of build to
implement more efficient systems
Transition – Legal
and Reputational
Fast Action
(below oC)
Increased demand for sustainable
products positions the Group
ahead of its competitors
– Continued exploration of sustainable
products and services
Transition – Market
and Reputational
Fast Action
(below oC)
Improved waste management
practices support enhanced
market position
– Continue engagement with landlords to
improve waste management strategies
– Engage with suppliers to increase recycled
and upcycled offerings
Transition – Market
and Reputational
Fast Action
(below oC)
Effective implementation of
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
Physical – Chronic
Fast Action
(below oC)
Current Policy
(above oC)
Increased demand for Thredbo in
summer months due to its
comparatively cooler climate
– Continued promotion of summer
experiences at Thredbo and development of
new mountain bike trails and year-round
experiences
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
In line with a gap analysis against the TCFD framework completed in FY, the Group will continue to respond to the TCFD
recommendations and work towards full alignment with those recommendations in FY. 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.
In addition, an assessment of the additional requirements of the International Sustainability Standards Board’s Sustainability
Reporting Standards and the Taskforce on Nature-Related Financial Disclosures will be undertaken to ensure the Group is well-
positioned to meet its disclosure obligations and the expectations of our stakeholders. A Materiality Assessment will also be
undertaken in FY to ensure the Group’s Sustainability activity, risk management framework and external reporting is informed by
the environmental, social and governance issues which matter most to our key stakeholders and our business.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
COMMUNITY AND SOCIAL IMPACT
DIVERSITY AND INCLUSION – EVERYONE BELONGS
The Group has a strong commitment to diversity and seeks to promote an inclusive culture where people are encouraged to succeed
to the best of their ability. The Group recognises that diversity contributes to its business success and aspires to a workforce reflective
of the communities in which it operates. The Group seeks to attract, develop and retain people in a culture that embraces individuality.
The Group’s Diversity Policy formalises its commitment to diversity and inclusion. The Diversity Policy is approved by the Board.
This commitment to diversity and inclusion means that the Group continuously works to ensure an environment that supports all
individuals to be their best, respected for the value they bring to the business and empowered to achieve. The Group’s Everyone
Belongs initiative supports a culture of learning from and respecting all teammates, treating each other as they want to be treated
and united by the Group’s values.
In FY, the Group commenced the process of developing a “Reflect” Reconciliation Action Plan (“RAP”) and expects to finalise and
begin implementation of the Reflect RAP in FY.
The Group has adopted the following measurable objectives for gender diversity:
– reporting on the gender diversity within the Group to the Board;
– aiming to maintain an appropriate percentage of women on the Board and specifically to have a minimum of % women, %
men and % 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 . 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 %, which is consistent with the Group’s objective to have a minimum of %
women, % men and % 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 been maintained in the year ended
June , and further initiatives are in development to support increases in future years. The Board will continue to monitor progress
in relation to this measurable objective.
The Diversity 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 2023
30 June 2022
Female
Male
Female
43%
38%
51%
57%
62%
49%
43%
38%
51%
Male
57%
62%
49%
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 in
accordance with the Workplace Gender Equality Act , and this report is available at www.evt.com/investors.
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’s Modern Slavery Statements are available at www.evt.com/investors and contain further information regarding the
Group’s management of modern slavery risks.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
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 June , an external review
was conducted of the Group’s WHS management system against the requirements of ISO Occupational Health and Safety
Management Systems (“ISO ”). The review recognised the enhancements made since the previous review conducted in
and a gap analysis has been completed to assess the potential for the Group to achieve ISO accreditation.
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.
DIVIDENDS
Dividends on ordinary shares paid during the year were:
Special dividend
Interim dividend
Per share
cents
Total
amount
$’
Date of payment
Tax rate for
franking
credit
Percentage
franked
,
November
,
,
March
%
%
%
%
To assist the Group’s liquidity during the COVID- recovery period, no dividends were declared in respect of the year ended June
.
REMUNERATION REPORT
The Remuneration Report, which forms part of the Directors’ Report, is set out on pages to and has been audited as required
by section (C) of the Corporations Act .
EVENTS SUBSEQUENT TO REPORTING DATE
DIVIDENDS
On August , the directors declared a final dividend of cents per share for the year ended June .
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 G() of the Corporations Act , at the date of this report is as follows:
Directors
AG Rydge
BD Chenoweth
PR Coates
VA Davies
DC Grant
JM Hastings
PM Mann
Ordinary shares held directly
Ordinary shares held by
companies in which a director
has a beneficial interest(a)
Performance rights held directly
,,
,,
—
—
—
,
,
—
—
,
,
—
—
,
—
—
—
—
—
,
—
(a) Relevant interest under the Corporations Act differs from the disclosure required under Australian Accounting Standards as presented in the Remuneration
Report.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
INDEMNFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company’s constitution provides an indemnity to each person, including AG Rydge, BD Chenoweth, PR Coates, VA Davies, DC
Grant, JM Hastings and PM Mann, 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 and forms part of the Directors’ Report for the year ended June
.
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 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
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 C of the Corporations Act 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 . to the financial statements.
ROUNDING OFF
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument / 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 th day of August
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
DIRECTORS’ REPORT
Remuneration Report
This report outlines the remuneration arrangements in place for the Group’s key management personnel (“KMP”) as defined in AASB
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 .
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 these plans are provided in Note . 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
October when shareholders approved a maximum aggregate remuneration of $,, 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. 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 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
$
$
,
,
,
,
,
,
,
,
,
,
,
,
,
,
The remuneration of non-executive directors for the year ended June is detailed on page .
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.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
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 page .
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 July , the Board has approved a fixed annual remuneration package for the CEO to the value of $,,,
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.
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.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
For the CEO and other executive KMP, the general target bonus opportunity range is from % to % of fixed annual
remuneration. The target bonus range for the CEO and other executive KMP is detailed below for the year ended June :
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
Sustainability
and employee
engagement
CEO
JM Hastings(b)
Other executive KMP
GC Dean
MR Duff
%
%
%
%
%
%
–
–
%
%
%
%
%
%
%
(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. 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 % of fixed annual remuneration, and the maximum LTI opportunity for GC Dean
and MR Duff is % of 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.
The performance hurdle for the awards of performance rights to executives in the financial year ended June is based on
growth in EVT Limited’s earnings per share (“EPS”) over the three financial years ending June (“Performance Period”), with
performance measured against the year ended June . The performance hurdle for the awards of performance rights to
executives in the financial year ended June is as follows:
EPS hurdle
The EPS hurdle requires that the Company’s EPS growth for the Performance Period must be greater than the target set by the Board.
For the award of Rights with an EPS hurdle, the hurdle is as follows:
– if annual compound EPS growth over the Performance Period is less than %, no performance rights will vest;
– if annual compound EPS growth over the Performance Period is equal to or greater than %, but less than %, the proportion
of performance rights vesting will be increased on a pro-rata basis between % and %; or
– if annual compound EPS growth over the Performance Period is equal to or greater than %, all of the performance rights awarded
will vest.
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.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
RECOGNITION AND RETENTION INCENTIVES
Shareholders approved at the and AGMs Recognition and Retention Incentives for the CEO with a face value of
$,, and $, respectively. These awards were designed to recognise the additional effort required from the CEO both
during the COVID- 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 with a face
value of $, and $,, respectively, and in with a face value of $, and $,, 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 , % of the grant value vested in full following the release of the results
for the year ended June , and was awarded in rights on September , and the remaining % of the grant value vested
in full following the release of the results for the year ended June , and was awarded in rights on September .
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 June .
Any rights that remain unexercised two years thereafter will expire.
For the Retention and Recognition Incentive awards in , % of the grant value vested in full following the release of the results
for the year ended June , and was awarded in rights on September . The remainder will vest after the release of the
results for the year ending June . 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 June . 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.
REMUNERATION OUTCOME FOR THE YEAR ENDED JUNE
STI AWARDS PAID IN THE YEAR ENDED JUNE
The table below shows STI awards paid during the year ended June , which relate to performance in the financial year ended
June . These were awarded in October . Details of the vesting profile of the STI bonuses awarded as remuneration to the
CEO and other executive KMP of the Group are shown below:
CEO and Managing Director
JM Hastings(c)
Other executive KMP
GC Dean
MR Duff
Included in
remuneration(a)
$
Awarded in year
Forfeited(b)
,,
.%
.%
,
,
.%
.%
.%
.%
(a) Amounts included in remuneration represent the amounts that were awarded during the year based on achievement of certain specific goals and satisfaction of
specified performance criteria for the June year. No amounts vest in future years in respect of the STI bonus schemes for the year.
(b) The amounts not awarded are due to the performance criteria not being met in relation to the assessment period and are forfeited.
(c) Further information regarding the performance criteria for the CEO’s STI award is set out below.
The CEO’s goals and performance criteria in relation to performance in the financial year ended June are summarised below.
All performance criteria set out below were applicable to the CEO. Goals and performance criteria for other executive KMP are
appropriately aligned with those of the CEO where applicable to the role of each other executive KMP.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Category
Group financial
objective
Criteria
Normalised EBITDA targets
determined by the Board
Achievement
Partially achieved. Partial achievement of the Group EBITDA
financial objective was assessed in the context of normalised
EBITDA of $. million representing a $. million
improvement on the prior year.
Capital management
Ensuring the Group has access to
sufficient funding for its operations
and the Board-approved capital plan
Achieved. The Group’s non-core property divestment strategy
was successfully executed, reducing net debt to below pre-
COVID levels, and ensuring access to sufficient funding for the
Group’s operations and the Board-approved capital plan.
Growth projects
Develop and progress the Group’s
major property developments and
priority asset upgrade program
Achieved. Key milestones were achieved for the Group’s major
property developments, whilst significant progress was made
with the Group’s priority asset upgrade program.
Other strategic
objectives
Identify, development and
implement other strategic initiatives
that will enhance shareholder value
Achieved. Initiatives included the non-core property divestment
strategy, the evolution of the Group’s hotel strategy to include the
Independent Collection, and the Group’s people, community and
environment strategic initiatives.
Employee
engagement
Achieve a positive result from an
internal employee sentiment survey
Achieved. A very positive employee engagement score was
achieved in the internal employee sentiment survey.
During the years ended June and June , no awards were paid under the STI plan to the CEO or other executive KMP,
notwithstanding the achievement of certain individual KPIs by KMP. This was in recognition of the ongoing impact of COVID- on
the Group’s performance and on shareholder returns.
STI OUTCOMES IN RESPECT OF THE YEAR ENDED JUNE
The Board has yet to assess the STI outcomes for KMP in relation to performance in the financial year ended June and these
outcomes will be disclosed in the remuneration report for the year ending June .
KMP LTI OUTCOMES
The chart below summarises the LTI outcomes for the KMP over the past four financial years.
f
o
r
a
e
y
n
i
g
n
i
t
s
e
v
e
g
a
t
n
e
c
r
e
P
t
n
e
m
s
s
e
s
s
a
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
FY20
FY21
FY22
FY23
LTI OUTCOMES IN THE YEAR ENDED JUNE
In November , the LTI award granted in the year ended June under the Company’s Executive Performance Rights Plan
was tested. The performance hurdles for this award were assessed over the three financial years ending June , with
performance measured against the year ended June , and were as follows:
– the Company’s relative total shareholder return performance against a comparator group comparised of the S&P/ASX
(excluding trusts, infrastructure groups and mining companies), with partial vesting at or above the th percentile and full vesting
at or above the th percentile; and
– EPS growth of not less than %, with full vesting achieved at EPS growth equal to or greater than %.
The results were as follows:
– Relative total shareholder return (% weighting): the Company ranked . in the percentile rankings for the comparator group,
resulting in partial vesting of the Rights associated with this hurdle.
– EPS growth ( weighting): the Company did not achieve the EPS growth hurdle.
Overall, .% of the Rights issued pursuant to the LTI award in the year ended June vested to plan participants, and the
remaining .% of Rights lapsed.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
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:
Net profit/(loss) before individually
significant items and AASB ($)(a)
Normalised earnings per share (cents)
Dividends per share (cents)
Share price at year end ($)(b)
,,
,,
(,,)
(,,)
,,
.
.
.
.
–
.
(.)
–
.
(.)
.
.
.
(a) Refer to page in the Directors’ Report for a reconciliation to reported net profit for the year.
(b) The share price at June was $..
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
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.
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
Termination by the Group
Expiry date of
contract
The notice period
is three months.
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 June to provide remuneration recommendations as
defined in section B of the Corporations Act .
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
KMP
The KMP for the financial year are set out in the table below:
Name
Position
Period of responsibility
Non-executive directors
Alan Rydge
Chairman and non-executive director
July to June
Brett Chenoweth
Independent non-executive director
December to June
Peter Coates
Valerie Davies
David Grant
Patria Mann
Lead independent and non-executive director
July to June
Independent non-executive director
Independent non-executive director
Independent non-executive director
July to June
July to June
July to June
Richard Newton
Independent non-executive director
July to October
Executive director
Jane Hastings
CEO
July to June
Other executive KMP
Gregory Dean
Mathew Duff
Director Finance and Accounting, Company Secretary
July to June
Director Commercial
July to June
All executive KMP were employed by EVT Limited.
| EVT LIMITED ANNUAL REPORT
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|
DIRECTORS’ REPORT
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 June
were $, (: $,). The Company holds preference shares in Carlton Investments Limited. Dividends received
during the year from preference shares held in Carlton Investments Limited were $, (: $,).
AG Rydge paid rent, levies and other costs to Group entities during the year ended June amounting to $, (:
$,). 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
Vested during
the year
Forfeited during
the year
Year in which
the grant vests
CEO
JM Hastings
,(c)
Feb
,
Jun
,
Feb
–
–
–
–
–
–
Jun
Jun
Jun
,
Feb
,
,
Jun
Other executive KMP
GC Dean
,
Feb
,
Jun
,
Feb
–
–
–
–
–
–
Jun
Jun
Jun
,
Feb
,
,
Jun
MR Duff
,
Feb
,
Jun
,
Feb
–
–
–
–
–
–
Jun
Jun
Jun
,
Feb
,
,
Jun
Fair value(a)
Performance
right – EPS
$
Performance
right – TSR(b)
$
.
.
.
.
.
.
.
.
.
.
.
.
–
–
.
.
–
–
.
.
–
–
.
.
(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 . obtained at the AGM.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
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 in the
prior year
Vested during
the year
Forfeited during
the year
Year in which
the rights can be
converted to
shares(a)
Fair value(b)
$
CEO
JM Hastings
,(c)
Sep
,
,(c)
Sep
,(d)
Sep
–
–
Other executive KMP
GC Dean
MR Duff
,
,
,
,
,
,
Sep
,
Sep
Sep
–
–
Sep
,
Sep
Sep
–
–
–
,
,
–
,
,
–
,
,
–
–
–
–
–
–
–
–
–
Jun
Jun
Jun
Jun
Jun
Jun
Jun
Jun
Jun
.
.
.
.
.
.
.
.
.
(a)
(b)
(c)
(d)
Rights issued pursuant to the Recognition and Retention Incentive award may be converted to ordinary shares no earlier than August and rights issued
pursuant to the Recognition and Retention Incentive award may be converted to ordinary shares no earlier than August .
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 . obtained at the AGM.
Granted pursuant to shareholder approval under ASX Listing Rule . obtained at the AGM.
RIGHTS HOLDINGS AND TRANSACTIONS
The movement during the year in the number of rights in EVT Limited (including LTI performance rights and Recognition and
Retention Incentive rights) held by the CEO and other executive KMP is detailed below:
CEO
JM Hastings
Other executive KMP
GC Dean
MR Duff
Held at
the beginning of
the year
,
,
,
,
,
,
Granted
Exercised
Forfeited
,(b)
,
(,)
–
,(b)
,
,(b)
,
(,)
–
(,)
–
(,)
(,)
(,)
(,)
(,)
(,)
Held at
the end of
the year(a)
,
,
,
,
,
,
(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 $,,, $, and $, 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.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
SHAREHOLDINGS AND TRANSACTIONS
The movement during the year in the number of ordinary shares of EVT Limited held, directly, indirectly or beneficially, by each KMP,
including their related parties, is as follows:
Directors
AG Rydge (Chairman)
BD Chenoweth(b)
PR Coates
VA Davies
DC Grant
PM Mann
RG Newton(c)
JM Hastings
(CEO)
Other KMP
GC Dean
MR Duff
Held at
the beginning of
the year
,,
,,
–
–
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
Purchases
Received on
vesting of rights
Sales
Other
–
–
–
–
–
–
–
–
,
–
,
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
,
–
,
–
,
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(,)
–
–
–
–
–
–
–
–
–
–
–
–
(,)
–
–
–
–
–
–
–
Held at
the end of the
year(a)
,,
,,
–
–
,
,
,
,
,
,
,
,
–
,
,
,
,
,
,
,
(a)
(b)
(c)
No shares were held nominally by any member of the KMP as at the end of the reporting period.
BD Chenoweth was appointed a director of the Company on December .
RG Newton resigned as a director of the Company on October .
Other than the arrangements disclosed above, no shares were granted to KMP as compensation in the year ended June .
Performance rights were granted to certain KMP as disclosed on page .
End of Directors’ Report: Remuneration Report – Audited
| EVT LIMITED ANNUAL REPORT
Financial Statements
Section
Page
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 - Basis of preparation
. Reporting entity
. Basis of preparation
. Foreign currency
. New and amended accounting standards adopted by the Group
Section – Performance for the year
. Revenue
. Segment reporting
. Individually significant items
. Taxation
. Earnings per share
Section – Operating assets and liabilities
. Trade and other receivables
. Inventories
. Property, plant and equipment
. Investment properties
. Assets held for sale
. Goodwill and other intangible assets
. Trade and other payables
. Provisions
. Commitments and leases
. Other liabilities
Section – Capital structure and financing
. Share capital
. Dividends
. Reserves
. Loans, borrowings and financing arrangements
. Financial risk management
Section – Group composition
. Business combinations
. Subsidiaries
. Interests in other entities
Section – Employee benefits and related party transactions
. Share-based payments
. Director and executive disclosures
. Related parties
Section – Operating assets and liabilities
. Contingent liabilities
. Reconciliation of profit to net cash provided by operating activities
. Auditors’ remuneration
. Parent entity disclosures
. Events subsequent to reporting date
. Deed of Cross Guarantee
Directors’ Declaration
Independent Auditor’s Report
| EVT LIMITED ANNUAL REPORT
FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
STATEMENT OF FINANCIAL POSITION AS AT JUNE
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
Note
$’
Restated *
$’
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,,
,
,
,
,
,
,,
,,
,
,
,,
,
,
,
,
,
,,
,,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
–
,
,
,
–
,,
,,
,,
,
,
,
,,
–
,
,
,
,
,,
,,
,
,
,
,
,
* The comparative information has been restated to reflect the finalisation of the acquisition accounting for a business combination (refer to Note .).
The Statement of Financial Position is to be read in conjunction with the accompanying notes.
| EVT LIMITED ANNUAL REPORT
FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
INCOME STATEMENT FOR THE YEAR ENDED JUNE
Revenue and other income
Revenue from sale of goods and rendering of services
Other revenue and income
Total revenue and other 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
Total expenses
Equity accounted profit
Share of net profit from equity accounted associates and joint ventures
Profit before tax
Income tax expense
Profit for the year
Earnings per share
Basic earnings per share
Diluted earnings per share
Note
.
.
.
.
.
.
The Income Statement is to be read in conjunction with the accompanying notes.
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE
Profit 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 for the year
$’
$’
,,
,
,,
(,)
(,)
(,)
(,)
(,)
(,)
(,)
(,)
,
,
,
(,)
(,)
(,)
(,)
(,)
(,)
(,)
(,)
(,,)
(,)
()
,
(,)
,
Cents
.
.
,
()
,
Cents
.
.
$’
$’
,
,
,
,
,
(,)
(,)
,
The Statement of Comprehensive Income is to be read in conjunction with the accompanying notes.
| EVT LIMITED ANNUAL REPORT
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FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE
Note
$’
$’
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 (paid)/refunded
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 business acquired
Decrease in loans from other entities
Proceeds from disposal of property, plant and equipment
Net cash used by investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayments of borrowings
Repayment of non-controlling interest loan
Transaction costs related to borrowings
Payments of lease liabilities
Dividends paid
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.
,,
(,,)
,
–
,
,
(,)
(,)
,
(,)
(,)
(,)
(,)
()
,
(,)
,
(,)
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,
,
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,
,
(,)
,
,
(,)
,
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,
(,)
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(,)
(,)
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(,)
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(,)
,
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
SECTION
Basis of preparation
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.
.
REPORTING ENTITY
EVT Limited ("Company") (formerly Event Hospitality and Entertainment Limited) is a company domiciled in Australia. The name of
the Company was changed to EVT Limited on October . The consolidated financial report of the Company as at and for the
year ended June comprises the Company and its subsidiaries (collectively referred to as the "Group") and the Group's interest
in associates, joint ventures and joint operations.
EVT 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 ..
The financial report was authorised for issue by the Board of Directors of EVT Limited on August .
.
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 . 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 / 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 . (Property, plant and equipment) and .
(Goodwill and other intangible assets).
Key estimates and judgements
Key estimates and judgements used in these financial statements, include:
– impairment (see Note ., . and .);
– lease terms (see Note .); and
– valuations of property, plant and equipment (see Note .).
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 : quoted prices (unadjusted) in active markets for identical assets or liabilities;
- Level : inputs other than quoted prices included in Level that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices); and
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
- Level : 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 . (Property, plant and equipment), . (Investment properties), . (Assets held for sale) and . (Financial risk
management).
Global coronavirus pandemic (“COVID-”)
In March , the World Health Organization declared a global pandemic in relation to COVID-. Within the geographic locations
where the Group has operations, governments responded to COVID- by introducing a number of COVID- 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- has resulted in impacts to key estimates and judgements used in these (and previous) financial statements,
including:
-
impairment (see Note ., . and .);
- provision for expected credit losses (see Note .); and
-
valuations of property, plant and equipment (see Note .).
The Group continues to maintain a cautious stance in relation to the continued and sustained recovery from the impacts of COVID-
and the Group retains a conservative approach to capital, funding and liquidity that should allow the Group to respond quickly to
the current, or future emerging, economic environments.
Going concern basis of accounting
The Group has a net current asset deficiency of $. million at June . This deficiency is predominately a consequence of
the recognition of current lease liabilities (under AASB Leases) totalling $. million. Current lease and other liabilities are
expected to be supported by future operating cash flows and available liquidity from undrawn debt facilities of $. million and
cash of $. million as at June .
.
FOREIGN CURRENCY
Functional and presentation currency
All amounts are expressed in Australian dollars, which is the Group’s presentation currency. Items included in the financial statements
of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates
(“functional currency”). The functional currency of the Company is Australian dollars.
Foreign currency transactions
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies at the year end date are translated to Australian dollars at the foreign exchange rate
ruling at that date. Foreign exchange differences arising on translation are recognised in profit or loss, except for differences arising
on retranslation of a financial liability designated as a hedge of the net investment in a foreign operation that is effective, which are
recognised in other comprehensive income. Non-monetary assets and liabilities that are measured in terms of historical cost in a
foreign currency are translated using the exchange rate at the dates of the transactions. Non-monetary assets and liabilities
denominated in foreign currencies that are stated at fair value are translated to Australian dollars at foreign exchange rates ruling at
the dates the fair value was determined.
Financial statements of foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to
Australian dollars at foreign exchange rates ruling at the reporting date. The income and expenses of foreign operations are translated
to Australian dollars at rates approximating the foreign exchange rates ruling at the dates of the transactions. Foreign exchange
differences arising on retranslation are recognised in other comprehensive income, and presented in the foreign currency translation
reserve in equity.
When a foreign operation is disposed of in its entirety or partially such that control, significant influence or joint control is lost, the
cumulative amount in the foreign currency translation reserve related to that foreign operation is reclassified to profit or loss as part
of the gain or loss on disposal. If the Group disposes of part of its interest in a subsidiary but retains control, then the relevant
proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of an associate
or joint venture whilst retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified
to profit or loss.
Net investment in foreign operations
Exchange differences arising from the translation of the net investment in foreign operations, and the effective portion of related
hedges, are taken to the foreign currency translation reserve. They are released to profit or loss as an adjustment to profit or loss on
disposal. Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the
settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a foreign
operation and are recognised directly in other comprehensive income and presented in the foreign currency translation reserve in
equity.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
NEW AND AMENDED ACCOUNTING STANDARDS ADOPTED BY THE GROUP
The Group has adopted all of the new, revised or amended Standards and Interpretations issued by the Australian Accounting
Standards Board (“Standards Board”) that are mandatory and effective for the year ended June . The adoption of the
Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group.
Accounting Standards and Interpretations that are not yet mandatory have not been early adopted.
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
SECTION
Performance for the year
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.
.
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
in
may be purchased by customers
advance or on the day of the film
screening.
cinema
Customers that are members of the
program
Group’s
(Cinebuzz) earn points when purchasing
tickets which can be used to purchase
services from the Group in the future.
loyalty
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
accommodation service when
occupy the room.
the
they
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Type of product/ service
Hotel management and
service agreements
Nature and timing of satisfaction of
performance obligations, including
significant payment terms
Customers, being hotel owners, obtain
control of the management service as it is
provided over the life of the management
or service agreement.
Thredbo lift tickets
Customers obtain control of the
lift
service on the day or other period when
the lift ticket is valid for use.
Thredbo ski school
Customers obtain control of the ski
school service when
is
attended.
lesson
the
Rental revenue
Customers, being lessees, obtain relevant
benefits of the rental premises.
Details of the Group’s revenue have been provided below:
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
in the
is recorded as deferred revenue
Statement of Financial Position initially and is then
recognised over the period that the pass is valid.
Revenue is recognised at the time of the lesson or other
activity. 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 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.
$’
$’
Revenue from contracts with customers (see below)
,,
,
Other revenue
Rental revenue
Finance revenue
Dividends
Sundry
Total revenue
Other income
Profit on sale of investment property and property, plant and equipment
Government wage subsidies and other compensation (a)
Settlement of legal dispute relating to the sale of a business segment
Insurance proceeds
Increase in fair value of investment properties
Reversal of impairment charges booked in previous years
Total other income
Total revenue
,
,
,
,
,
,
,
,
–
,
,,
,
,
,
,
,
–
–
,
,
,
(a) Government wage subsidies and other compensation for businesses impacted by the COVID- pandemic. 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.
| EVT LIMITED ANNUAL REPORT
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
SEGMENT REPORTING
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 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.
| EVT LIMITED ANNUAL REPORT
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|
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
INDIVIDUALLY SIGNIFICANT ITEMS
Individually significant items comprised the following:
Profit on sale of properties
Settlement of a legal dispute relating to the sale of a business segment
Impairment charges
Hotel and cinema pre-opening costs
Transaction and other costs associated with the sale of a business segment
Other expenses (net of income items)
Disposal of assets on redevelopment or damage
Restructure costs, redundancies and staff retention costs arising as a result of COVID-
Reversal of impairment charges booked in previous years
Individually significant items before tax
Income tax expense
Individually significant items after tax
.
TAXATION
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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. EVT 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 . 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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Income tax (expense)/credit
The major components of income tax are:
Current income tax
Current income tax expense
Income tax under provided in the prior year
Deferred income tax
Relating to origination and reversal of temporary differences
Income tax expense reported in the Income Statement
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Prima facie income tax expense at the income tax rate of % (: %)
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Change in income tax (expense)/credit due to:
Effect of tax rates in foreign jurisdictions
Adjustments relating to non-deductible items and revenue losses
Gain on disposal of non-depreciable properties
Share based payments
Other sundry items
Income tax under provided in the prior year
Total income tax expense
Unrecognised deferred tax assets
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Included in the deferred tax assets not recognised is the gross value of corporate tax and trade tax losses arising in Germany of
$,, (: $,,). The availability of these tax losses is subject to certain utilisation limits and ongoing availability
tests under German tax law. At June , there was no recognised deferred income tax liability (: $nil) for taxes that would
be payable on the unremitted earnings of certain of the Group’s subsidiaries, associates or incorporated joint ventures.
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
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
Statement of
Financial Position
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| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
. EARNINGS PER SHARE
Basic earnings per share (“EPS”) is calculated by dividing the profit attributable to members of the Company by the weighted average
number of ordinary shares of the Company.
Diluted EPS adjusts the figures used in the determination of basic EPS to take into account the after-income tax effect of interest
and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to
have been issued for no consideration in relation to dilutive potential ordinary shares.
$’
$’
Profit attributable to ordinary shareholders (basic and diluted)
,
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Weighted average number of ordinary shares (basic)
Effect of performance rights
Weighted average number of ordinary shares (diluted)
Further details in relation to the Executive Performance Rights Plan are provided in Note ..
Number
Number
,,
,,
,,
,,
,,
,,
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
SECTION
Operating assets and liabilities
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 . Deferred tax
assets and liabilities are shown in Note .. On the following pages, there are sections covering working
capital balances, property, plant and equipment, investment properties, intangible assets and provisions.
.
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 to -day terms. The Group’s exposure to credit and foreign
exchange risks related to trade and other receivables is disclosed in Note ..
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
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As at June , trade receivables with a value of $,, (: $,,) 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 June , trade receivables for the Group that were past due but not impaired were $,, (: $,,), of
which $,, (: $,,) was less than days overdue. The remainder is not considered material and consequently an
ageing analysis has not been provided.
Current other receivables of $,, (: $,,) 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.
.
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
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
..
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
– years;
shorter of estimated useful life and term of lease;
– years; and
– 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 June are set out below.
| EVT LIMITED ANNUAL REPORT
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|
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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 .), valuations are generally carried out on a
progressive two to three-year cycle. The majority of the Group’s properties were subject to an independent valuation during the last
quarter of the year ending June .
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 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. Key parameters used
within the valuations undertaken during the year ended June are outlined below:
Capitalisation rates
Pre-tax discount rates
June
.% to .%
June
.% to .%
.% to .% per annum
.% to .% per annum
The fair values determined by the independent registered qualified valuers are sensitive to changes in significant unobservable
inputs. 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.
A summary of valuations of interest in land and buildings (excluding properties classified as investment property or as held for sale),
by year of the last valuation, is set out as follows:
Independent valuation – existing use (going concern) is highest and best use
– June
– May
– April
– November
– June
– March
Independent valuation – alternate use is highest and best use
– June
– June
Not subject to independent valuation – book value
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plant and equipment at June which is deemed integral to land and buildings, has been determined to total approximately
$,, (: $,,). The above valuations do not take into account the potential impact of capital gains tax.
Impairment considerations at June
Hotels
Hotel properties are treated as separate cash-generating units. The majority of the Group’s hotel properties were subject to an
independent valuation from suitably qualified external valuers during the last quarter of the financial year ending June . The
impairment review process at June included a comparison of the relevant independent valuation to the carrying value of
each hotel cash-generating unit.
As a result of the above impairment review process, no impairment charges (: $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. No impairment charges (: $nil) were reversed in respect of impairments booked in previous years.
Entertainment
Cinema sites are treated as separate cash-generating units, with certain exceptions for cinema sites within a single geographic area
where trading conditions result in the various sites being 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 June . The impairment review process at June included the following:
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
– the expected budget (as a proxy for 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 condition
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 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.
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 most recently available independent valuation. Where considered appropriate, the independent
valuation was used as an indicator of fair value. Where the independent valuation was completed outside of the last financial year the
impairment process included a review of the independent valuation parameters to ensure that parameters were consistent (or no less
favourable) than prevailing market parameters at June .
For those sites where future adverse market changes were noted or the EBITDA multiple or result from the cash flow model or
independent valuation was below the relevant carrying value, the site or cash-generating unit was subject to further impairment
testing. 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 .% to .%;
– cash flow forecasts were based upon the budget and trading parameters presented to the Board of EVT Limited;
– recovery trading parameters were adopted for FY forecasts; and
– forecast growth rates (inclusive of an average annual inflation rate) of .% to .% were utilised for periods beyond FY.
As a result of the above impairment review process, impairment losses totalling $. million (: $,) were recorded in
respect of certain cinemas or cash-generating units. The sites (including cash-generating units) that that were subject to an
impairment charge included one site in Australia, a number of sites located in Germany and one recently closed site in New Zealand.
For cinema hotels that had been subject to impairments in previous years, the trading performance and recoverable amounts were
considered in relation to the prior impairment charge. No impairment charges (: $nil) were reversed in respect of impairments
booked in previous years.
Thredbo
The operations at Thredbo are treated as one cash-generating unit. The impairment review process incorporated an independent
valuation of Thredbo that was issued during the June year. An independent registered qualified valuer was engaged to
perform the valuation which was above the current carrying value by over %. 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 various mortgage security arrangements to secure the
Group’s loan facilities (refer to Note .):
Freehold land and buildings
Freehold land and buildings classified as assets held for sale
Freehold land and buildings classified as investment properties
$’
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Capital commitments
At June the Group had a number of outstanding capital commitments in respect of capital expenditure relating to various
sites which are currently under, or which will undertake in the future, refurbishment or development. The commitments are expected
to be settled within two financial years of the reporting date and total $. million (: $. million) for which no provision has
been made.
.
INVESTMENT PROPERTIES
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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 property
The Group investment property at June consists of one central Brisbane property. The Group previously owned an investment
property located in Canberra which was sold during the year ended June .
Investment property is 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 fair value based on the
inputs to the valuation technique used. In assessing the fair value of investment properties, a number of assumptions are made at
the end of each reporting period regarding future cash flows, future property market economic conditions and other factors including
cash flow discount rates, rental capitalisation rates, and recent market transactions for similar properties.
The carrying amount of investment 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 June included a market capitalisation rate of .% (: .%).
The lease for the investment property is for a non-cancellable period of three years which commenced on July . No contingent
rents are charged for the investment property.
During the year ended June , $, (: $,,) was recognised as rental income for investment properties in the
Income Statement, with $, (: $,) incurred in respect of direct costs, including $, (: $,) for
repairs and maintenance.
Freehold land and buildings
At fair value (Level 3 fair values)
Summary of movements:
Balance at the beginning of the year
Fair value increment
Additions
Sale of property
Balance at the end of the year
.
ASSETS HELD FOR SALE
$’000
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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 total of four non-core properties have been identified for potential sale by the Group. As at June , the Group had initiated
sale campaigns for two of the properties and, for the other two properties, had entered into sale negotiations with prospective third
parties.
Assets held for sale – carrying amount
$’000
$’000
,
,
The fair value of the assets held for sale has been determined to be $,,. The fair value was based on independent valuations
totalling $. million for three of the four properties, as determined by independent registered qualified valuers as at June .
The June valuations were reviewed and evaluated and used as the fair value as at the June reporting date. For each
of the three properties the going concern value was not the highest and best use and the fair value was determined by using direct
comparison methodology with reference to sales of similar properties in those relevant geographical areas. The fourth property was
not subject to valuation and the book value of $. million at June was determined to represent the fair value of that
property.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Goodwill arises from business combinations as described in Note . 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 to 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 .), 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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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:
Gross balance at the beginning of the year
Accumulated amortisation and impairment losses
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
Goodwill
$’
Rights
$’
Software
$’
Other
$’
Total
$’
70,277
(653)
63,371
(38,531)
69,624
24,840
2,616
12,877
–
–
–
811
73,051
–
(4,534)
(1,446)
174
31,911
7,399
(5,961)
1,438
522
191
(832)
–
21
1,179
142,226
–
(45,145)
1,179
–
–
–
–
–
97,081
16,015
191
(5,366)
(1,446)
1,006
1,340
1,179
107,481
Gross balance
Accumulated amortisation and impairment losses
Net balance at the end of the year
73,704
74,468
(653)
(42,557)
73,051
31,911
8,547
(7,207)
1,340
1,179
157,898
–
(50,417)
1,179
107,481
– restated *
Gross balance at the beginning of the year
67,233
68,776
8,861
1,539
146,409
Accumulated amortisation and impairment losses
(653)
(39,169)
(5,242)
–
(45,064)
Net balance at the beginning of the year
66,580
29,607
Acquisitions and initial contributions – restated *
Transfers
Amortisation
Disposals
5,547
–
–
–
Net foreign currency differences on translation of foreign operations
(2,503)
770
–
(4,395)
(861)
(281)
Net balance at the end of the year – restated *
69,624
24,840
Gross balance – restated *
Accumulated amortisation and impairment losses
Net balance at the end of the year – restated *
70,277
(653)
63,371
(38,531)
69,624
24,840
3,619
470
(1,165)
(1,448)
–
(38)
1,438
7,399
(5,961)
1,438
1,539
101,345
–
–
–
(360)
–
1,179
6,787
(1,165)
(5,843)
(1,221)
(2,822)
97,081
1,179
142,226
–
(45,145)
1,179
97,081
* The comparative information has been restated to reflect the finalisation of the acquisition accounting for a business combination (refer to Note .).
Other intangibles include capitalised amounts relating to construction rights at Thredbo and liquor licences at certain venues
throughout the Group. Rights include the amounts capitalised in relation to the payment of key money for hotel management
agreements and the initial leasehold acquisition cost relating to certain cinema sites.
Cash generating units containing goodwill have been outlined below:
Entertainment – Australia and New Zealand
Entertainment – Germany
Hotels – New Zealand – restated *
Hotels – Australia
Multiple units without significant goodwill
Total goodwill – restated *
2023
$’000
43,583
4,214
18,303
5,395
1,556
73,051
Restated *
$’
43,424
3,900
17,965
3,593
742
69,624
* The comparative information has been restated to reflect the finalisation of the acquisition accounting for a business combination (refer to Note .).
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Impairment considerations at June
The recoverable value of goodwill has been determined by value in use calculations for each specific goodwill component.
Hotels
There are five hotel properties with specific goodwill components. To assess the value in use for impairment testing purposes:
– estimated future -year cash flows (based on year budget) 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 .% to .%;
– a terminal value capitalisation rate of .% to .%; and
– forecast growth rates (inclusive of an average annual inflation rate) of .%.
For goodwill relating to certain hotel leasehold properties, considered as one cash generating unit for goodwill impairment purposes:
– estimated future cash flows (based on year budget) 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 .%; and
– forecast growth rates (inclusive of an average annual inflation rate) of .%.
As a result of the above impairment review process, no impairment losses (: $nil) were recorded in respect of goodwill.
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 .% to .%;
– cash flow forecasts were based on the budget;
– recovery trading parameters were adopted for FY forecasts; and
– forecast growth rates (inclusive of an average annual inflation rate) of .% to .% were utilised for periods beyond FY.
As a result of the above impairment review process, no impairment losses (: $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 ..
.
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 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
.
PROVISIONS
2023
$’000
,
,
,
2022
$’000
,
,
,
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 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 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 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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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
2023
$’000
,
,
,
,
,
2022
$’000
,
,
,
,
,
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
.
COMMITMENTS AND LEASES
2023
$’000
2022
$’000
–
–
,
,
()
()
,
–
–
,
,
()
()
()
,
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:
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
-
-
the Group has the right to operate the asset; or
the Group has designed the asset in a way that pre-determines how and for what purpose it will be used.
Accounting for leases – as a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially
measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or
to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the
end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are
determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing
rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
-
-
fixed payments, including in-substance fixed payments;
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the 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 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 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.
As disclosed in Note ., 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 are inclusive of the Group’s share of its right-of-use assets and lease liabilities
that relate to the joint operations.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Right-of-use assets
Property
Balance at the beginning of the year
Additions
Transfer from property, plant and equipment
Reclassification (refer to Note .)
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 June
Lease liabilities included in the Statement of Financial Position at June
Current
Non-current
Amounts recognised in the Income Statement
Interest on lease liabilities
2023
$’000
2022
$’000
,
,
—
(,)
()
(,)
(,)
,
,
,
,
(,)
—
(,)
(,)
(,)
(,)
,
,
,
,
,
,
,
,,
,,
,
,
,
,
,
,
,
,
Variable lease payments not included in the measurement of lease liabilities
,
,
No significant expense was recognised in the Income Statement in respect of short term leases or leases of low-value assets.
Impairment considerations at June
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 .. As a result
of the above impairment review process, impairment losses totalling $,, (: $,,) 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 and New
Zealand.
Property leases
The Group leases various properties, including cinema sites, under operating leases. The leases typically run for periods up to
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 years from June .
The Group sub-leases some of its properties under operating leases (see below).
Variable lease payments based on sales and profit
Some leases provide for additional rent payments that are based on sales or profit that the Group makes at the leased site in the
period. Variable lease payments during the year ended June were $,, (: $,,).
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 June
, lease liabilities included $,, (: $,,) of lease liabilities in respect of extension options that have yet
to be exercised by the Group.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Lease not yet commenced to which the lessee is committed
As at June , 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 $,,
(: $,,), over lease terms of between and 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 years and have varying terms, escalation clauses and renewal
or extension options. There are approximately 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 -year period from June . 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 ..
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
2023
$’000
,
,
,
,
,
,
,
,
2022
$’000
,
,
,
,
,
,
,
,
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.
. OTHER LIABILITIES
Other liabilities include contract deposits received in advance of $,, (: $,,) and a liability totalling $,,
(: $,,) relating to the stepped acquisition purchase price of a business combination. Refer to Note . for further details
regarding accounting for a business combination.
Other liabilities at June also included lessor provided lease incentives totalling $,, arising from lease arrangements.
During the year ended June lease incentive balances were transferred and offset against the right-of-use asset. Refer to
Note . for further details regarding lease arrangements.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
SECTION
Capital structure and financing
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.
.
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.
Shares
Shares
$’
$’
Share capital
Fully paid ordinary shares
,,
,,
,
,
Movements in share capital
Balance at the beginning of the year
Share capital issued pursuant to the Executive Performance
Rights Plan for nil consideration
,,
,,
,
,
,
–
–
–
Balance at the end of the year
,,
,,
,
,
Share capital consists of:
Ordinary shares
,,
,,
,,
,,
Share buy-back
There is no current on-market buy-back.
Dividend Reinvestment Plan
The Dividend Reinvestment Plan was suspended in August .
Options
Other than the performance rights disclosed in Note ., there were no share options on issue as at June (: nil).
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
DIVIDENDS
Dividends on ordinary shares paid during the year were:
Per share
Cents
Total
amount
$’
Date of payment
Tax rate for
franking
credit
Percentage
franked
Special dividend
Interim dividend
,
,
,
November
March
%
%
%
%
To assist the Group’s liquidity during the COVID- recovery period, no dividends were declared in respect of the year ended June
.
Subsequent events
Since the end of the year, the directors declared the following dividends:
Per share
Cents
Total
amount
$’
Date of payment
Tax rate for
franking
credit
Percentage
franked
Final dividend
,
September
%
%
The financial effect of the final dividend in respect of the year has not been brought to account in the financial statements for the
year ended June and will be recognised in subsequent financial statements.
Franking credit balance
$’
$’
Franking credits available for future reporting periods
,
,
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 year is to reduce the balance by $,, (: $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.
.
RESERVES
Financial assets revaluation reserve
This reserve includes the cumulative net change in the fair value of investments 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 . 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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Movements in reserves during the year
Financial
assets
revaluation
$’000
Investment
property
revaluation
$’000
Hedging
$’000
Share-
based
payments
$’000
Foreign
currency
translation
$’000
Total
$’000
At July
,
,
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
–
–
–
–
–
–
At June
,
,
At July
,
,
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
–
–
–
–
–
–
At June
,
,
.
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
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 main secured bank debt facilities were amended and restated on May and consist of $,, (:
$,,) in revolving multi-currency general loan facilities and a $,, (: $,,) credit support facility for the
issue of letters of credit and bank guarantees. The main secured bank 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 .).
Debt drawn under the main secured bank debt facilities bears interest at the relevant inter-bank benchmark reference rate plus a
margin of between .% and .% per annum. As at June , the Group had drawn $,, (: $,,)
under the main secured bank debt facilities and $,, (: $,,) under the credit support facility. Debt facility
components subject to interest rate swaps used for hedging at June totalled $nil (: $nil).
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
A New Zealand-domiciled subsidiary has general loan facilities secured against a hotel property. The subsidiary had drawn
NZ$,, (A$,,) under the facility at June (: NZ$,, (A$,,)). Prior to September
the subsidiary was accounted as a joint venture as the Group owned a % interest in the subsidiary. The Group currently has
an ownership interest of % (: %) and expects to achieve % ownership of the subsidiary on September , via a
stepped acquisition arrangement.
Other facilities
A wholly-owned New Zealand-domiciled subsidiary has a general security facility in respect of a bank guarantee issued in relation to
an obligation under an existing lease arrangement. The general security facility obligation totals NZ$,, (A$,,) at
June (: NZ$,, (A$,,)).
Certain wholly-owned German-domiciled subsidiaries have a secured guarantee facility of €,, (A$,,) at June
(: €,, (A$,,)) for the issue of letters of credit and bank guarantee arrangements. The facility was
extended during the financial year and expires on May . The facility is secured against cash held within certain wholly-owned
German-domiciled subsidiaries. Guarantees supported under the facility bear interest at .% per annum. The Group had issued a
total of €,, (A$,,) at June (: €,, (A$,,)) of guarantees under the facility.
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
.
FINANCIAL RISK MANAGEMENT
$’
$’
,
,
,
,
(,)
,
,
,
,
,
,
(,)
,
,
,
Derivative financial instruments
From time to time, the Group uses derivative financial instruments to hedge its exposure to interest rate and foreign exchange risks
arising from operating activities, investing activities and financing activities. In accordance with its treasury policy, the Group does
not hold or issue derivative financial instruments for trading purposes.
Derivative financial instruments are recognised at fair value within prepayments and other current assets. The gain or loss on
remeasurement to fair value is recognised immediately in profit or loss. However, where derivatives qualify for hedge accounting,
recognition of any resultant gain or loss depends on the nature of the item being hedged.
The fair value of interest rate swaps is the estimated amount that the Group would receive or pay to terminate the swap at the reporting
date, taking into account current interest rates and the creditworthiness of the swap counterparties. The fair value of forward
exchange contracts is their quoted market price at the reporting date, being the present value of the quoted forward price.
Investments designated as at 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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Equity investments as at FVOCI
Investment in a listed company
$’
$’
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.
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 .. 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 June , 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 .,
and details of guarantees given by the parent entity are provided in Note ..
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.
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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
$’
Contractual
cash flows
$’
months
or less
$’
to
months
$’
to
year(s)
$’
to
years
$’
Over
years
$’
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
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
—
—
—
—
—
—
—
,,
(,,)
(,)
(,)
(,)
(,)
(,)
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.
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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
$’
–
(,)
(,)
$’
–
(,)
(,)
,
(,)
,
(,)
(,) (,)
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 June (: 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 June , Group debt totalling $,, (:
$,,) was subject to a fixed rate instrument and arrangements. The interest rate on the debt has been fixed at .% through
to October . 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”).
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 %
of “highly probable” foreign currency exposures and % 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
$’
,
(,)
(,)
(,)
–
–
Net exposure
(,)
EUR
$’
GBP
$’
USD
$’
,
–
–
–
–
–
–
–
–
–
NZD
$’
(,)
(,)
EUR
$’
GBP
$’
USD
$’
–
–
–
–
–
–
,
(,)
–
–
–
–
–
–
–
–
–
–
–
–
,
(,)
–
–
–
–
–
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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 June was $,, (: $,,). A foreign
exchange loss of $,, (: gain of $,,) 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 : quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level : inputs other than quoted prices included within Level that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices); and
Level : 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 financial instruments. Derivative financial instruments are classified as
Level financial instruments.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
This section explains the composition of the Group.
SECTION
Group composition
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
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.
.
BUSINESS COMBINATIONS
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 .). 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 June
The Group acquired the following business during the year:
-
Limes Hotel, Brisbane – effective September , Kvarken Pty Limited, a wholly-owned subsidiary, acquired the freehold
and existing business of a hotel property situated in Fortitude Valley, Brisbane. The purchase price was $,,, including
goodwill of $,, and the Group has provisionally recognised the fair values of the identifiable assets and liabilities
relating to the acquisition. The hotel is currently being operated by the Group under the Independent Collection; and
- Rydges Latimer Holdings Limited – effective September , Noahs Hotels (N.Z.) Limited (“Noahs”), a wholly-owned
subsidiary, acquired an additional % of Rydges Latimer Holdings Limited (“Latimer”) for an acquisition cost of
NZ$,, (A$,,) taking the total ownership interest in Latimer to %. Details regarding the prior year
acquisition were disclosed within its June consolidated financial report and additional details have been provided
below. The Group expects to acquire the remaining % (and attain % ownership) in September .
Business combinations in the year ended June
The Group acquired the following business during the year:
Rydges Latimer Holdings Limited
Effective September , Noahs acquired an additional % of Latimer taking the total ownership interest in Latimer to %.
Prior to the acquisition, the Group had owned a % interest in Latimer that had been acquired in August (refer also to Note
.). In addition:
-
-
Latimer includes two wholly-owned subsidiary companies, being Latimer Hotel Limited and PR Knight Limited. All three
companies were incorporated in New Zealand; and
the Group has contractually agreed to a stepped acquisition of the remaining % interest in Latimer, which will occur in
equal tranches at September (refer above) and September .
The net consideration paid for the acquisition of % of the total share capital of Latimer was NZ$,, (A$,,),
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)
Fair value at
acquisition date
$’000
,
(,)
,
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
AASB Business Combinations requires that the existing interest in Latimer be remeasured to its fair value, and the standard allows
a period of months for the remeasure process to occur. The Group completed the process during the half year ending December
.
The Group has recognised the fair value of the following identifiable assets and liabilities relating to this acquisition as follows:
Net consideration for the equity increase in Latimer to %
Deferred consideration for the remaining % interest
Less: cash acquired
Fair value of previously held % 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
Fair value at acquisition date
Preliminary
accounting
$’000
Final
accounting
$’000
,
,
(,)
,
,
,
(,)
(,)
(,)
,
,
,
(,)
,
,
,
(,)
(,)
(,)
(,)
Goodwill on acquisition
,
,
The preliminary accounting was used for June Business Combination purposes and was updated during the post acquisition
period. The impact of finalising the acquisition accounting on the comparative income statement was not considered material and
comparative balances were therefore not restated. The comparative balance sheet for June were restated as noted above.
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
$, which were expensed in the Income Statement during the year ended June .
The Income Statement for the year ended June included revenue and a net profit of $,, and $, respectively
as a result of this acquisition. Had the acquisition occurred at the beginning of the June year, it is estimated that the Income
Statement would have included additional revenue and a net loss of approximately $,, and $, respectively.
There were no other material business combinations in the year ended June .
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
SUBSIDIARIES
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
First Holding GmbH
Flaggspelt Vermogensverwaltungsgesellschaft mbH
to George Street Development Pty Limited
to George Street Development Trust
to George Street Holding Pty Limited
to George Street Holding Trust
Glenelg Theatres Pty Limited
Greater Entertainment Pty Limited
Greater Occasions Australia Pty Limited
Greater Union Betriebsmittel GmbH
| EVT LIMITED 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)
(a)(e)
Ownership interest
%
%
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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 GmbH
Greater Union Real Estate 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
Lylo Operations Australia Pty Limited (formerly 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
LyLo Property Holdings NZ 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
| EVT LIMITED ANNUAL REPORT
Note
(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)
(c)(f)
(c)(g)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
Ownership interest
%
%
—
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Multiplex Cinemas Remscheid GmbH
Neue Filmpalast GmbH & Co. KG
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
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
Note
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
(c)
(c)(f)
(c)(f)
(c)
(a)(e)
(a)(e)
(a)(e)
(a)(e)
Ownership interest
%
%
Notes
(a)
(b)
(c)
(d)
(e)
(f)
These companies are audited by other member firms of KPMG International.
This company was incorporated in and carries on business in the United Kingdom.
These companies were incorporated in and carry on business in New Zealand.
These companies were incorporated in and carry on business in The Netherlands.
These companies were incorporated in and carry on business in Germany.
The Group increased its interest in Rydges Latimer Holdings Limited to % on September . The Group expects to acquire the remaining % (and attain
% ownership) in September .
(g)
LyLo Property Holdings NZ Limited was incorporated on September .
All companies, except those stated above, were incorporated in Australia. All trusts were established in Australia.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
INTERESTS IN OTHER ENTITIES
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 % and % 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
$’
,
,
$’
,
,
| EVT LIMITED ANNUAL REPORT
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A
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
SECTION
Employee benefits and related party transactions
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.
.
SHARE-BASED PAYMENTS
The Group’s share-based payment arrangements include performance rights issued under the Executive Performance Rights Plan
pursuant to long-term incentive (“LTI”) awards and the Recognition and Retention Incentives.
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 Rights Plan, a third-party trustee is used to administer the trust which holds
shares in the Company 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. Any shares in the Group held by the trust are presented as treasury shares. 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 the
models and 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.
LTI awards
The establishment of the Executive Performance Rights Plan was approved by shareholders at the 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 June , performance rights subject to the Executive Performance Rights Plan Rules were issued
pursuant to the Group’s LTI plan and the Recognition and Retention Incentive. Details regarding these incentive arrangements
are set out below.
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.
Recognition and Retention Incentives
Shareholders approved at the and AGMs 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 and Recognition and
Retention Incentives. These awards were an additional equity-based award designed to recognise the additional effort required from
the CEO and other senior executives both during the COVID- response period and during the recovery period, and the importance
of retaining the CEO and other senior executives during this critical period.
For the Retention and Recognition Incentive awards in , % of the grant value vested in full following the release of the results
for the year ended June , and was awarded in rights on September , and the remaining % of the grant value vested
in full following the release of the results for the year ended June , and was awarded in rights on September .
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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 June .
Any rights that remain unexercised two years thereafter will expire.
For the Retention and Recognition Incentive awards in , % of the grant value vested in full following the release of the results
for the year ended June , and was awarded in rights on September . The remainder will vest after the release of the
results for the year ending June . 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 June . 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.
Set out below are summaries of performance rights awarded under the Executive Performance Rights Plan:
Type of right
Grant date
Performance rights
February
Performance rights
Performance rights
February
September
Performance rights
June
Performance rights
September
Performance rights
February
Performance rights
February
Performance rights
February
Performance rights
Performance rights
February
September
Performance rights
June
Balance at
the start of
the year
,
,
,
,
Granted
Exercised
Forfeited
—
—
—
—
(,)
(,)
—
—
—
—
—
(,)
(,)
(,)
—
()
—
—
,
,
Balance at
the end of
the year
—
,
,
,
,
,
,,
,
(,)
(,)
,,
,
,
,
—
—
,,
—
—
—
,
,
,
—
—
—
—
—
—
(,)
(,)
(,)
(,)
—
—
,
,
,
,
(,)
,,
. Performance rights granted on September were issued pursuant to the vesting of the first tranche of the Recognition and Retention Incentive.
. Performance rights granted on September were issued pursuant to the vesting of the second tranche of the Recognition and Retention Incentive
and the first tranche of the Recognition and Retention Incentive.
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 June was $. (: $.) for those rights that have EPS hurdles. No performance rights were granted during
the year ended June with TSR hurdles (: nil). 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
February
Granted
June
Granted
February
Granted
February
.%
.%
.%
$.
years
.%
.%
.%
$.
years
.%
.%
.%
$.
years
.%
.%
.%
$.
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 June was a charge of
$,, (: $,,).
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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:
Superannuation contributions recognised as an employee expense
.
DIRECTOR AND EXECUTIVE DISCLOSURES
$’
$’
,
,
Information regarding individual directors’ and executives’ compensation and some equity instruments disclosures, as permitted by
the Corporations Regulations , 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
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
Directors’ Report page reference
$
,,
,
,,
,
,,
$
,,
,
,,
,
,,
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 June
were $, (: $,). The Company holds preference shares in Carlton Investments Limited. Dividends received
during the year from preference shares held in Carlton Investments Limited were $, (: $,).
AG Rydge paid rent, levies and other costs to Group entities during the year ended June amounting to $, (:
$,). 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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
RELATED PARTIES
Relationships with associates
Transactions with associates included the receipt of property rental income from an associate of $, (: $,). Costs
paid on behalf of an associate totalled $, (: $,) and these costs were not refundable (: $nil) by that associate.
Refer also to Notes . and ..
Relationships with joint ventures and joint operation partners
Refer to Note ..
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 ..
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
SECTION
Other information
This section contains other disclosures required by accounting standards and the Corporations Act .
.
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.
.
RECONCILIATION OF PROFIT FOR THE YEAR TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Reconciliation of profit for the year to net cash provided by operating activities
Profit for the year
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 in trade and other receivables
Increase in inventories
Decrease/(increase) in prepayments and other current assets
Decrease/(increase) in deferred tax items
(Decrease)/increase in income taxes payable
(Decrease)/increase in trade and other payables
Increase in provisions
Decrease in other liabilities
Decrease in deferred revenue
(Decrease)/increase in financing costs payable
Net cash provided by operating activities
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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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
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
Total – Audit and other assurance services
Other services:
Auditors of the Group – KPMG Australia
Tax compliance and advice
Other services
Overseas KPMG firms
Tax compliance and advice
Total – Other services
$
$
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Overseas KPMG firms – Other assurance services and Tax compliance and advice includes services required by German government
authorities in relation to the finalisation of the various COVID- pandemic support and subsidy programs. The services in respect of
the support and subsidy programs are expected to conclude in the year ending June , however the majority of the related
costs have been incurred within the June and June years. Further information regarding the support and subsidy
programs has been provided within Note . of these financial statements.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
PARENT ENTITY DISCLOSURES
As at, and throughout the financial year ended, June , the parent entity of the Group was EVT Limited.
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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
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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 ..
Bank debt facilities
The Company is a guarantor under the Group’s secured bank debt facilities, as disclosed in Note ..
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
.
EVENTS SUBSEQUENT TO REPORTING DATE
Dividends
For final dividends declared after June , refer to Note ..
.
DEED OF CROSS GUARANTEE
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument /, the wholly-owned subsidiaries listed below are
relieved from the Corporations Act 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 . 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
Kvarken Pty Limited
Lakeside Hotel Pty Limited
Mamasa Pty Limited
Noahs Limited
Northside Gardens Hotel Pty Limited
Pantami Pty Limited
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
Greater Union International Holdings Pty Limited
Rydges Hotels Limited
Greater Union Nominees Pty Limited
Sonata Hotels Pty Limited
Greater Union Screen Entertainment Pty Limited
Tannahill Pty Limited
Greattheatre Pty Limited
GUO Investments (WA) Pty Limited
Gutace Holdings Pty Limited
Haparanda Pty Limited
The Geelong Theatre Company Limited
The Greater Union Organisation Pty Limited
Thredbo Resort Centre Pty Limited
Tourism & Leisure Pty Limited
Haymarket’s Tivoli Theatres Pty Limited
Western Australia Cinemas Pty Limited
Kidsports Australia Pty Limited
Kosciuszko Thredbo 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, June respectively are set out on the following pages:
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Income Statement
Revenue
Other income
Net intercompany income
Expenses
Share of net loss 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 after tax
Statement of Comprehensive Income
Profit for the year
Other comprehensive (expense)/income
Total comprehensive income for the year
Summary of movements in retained earnings
Retained earnings at the beginning of the year
Profit for the year
Dividends paid
Retained earnings at the end of the year
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| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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 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
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
| EVT LIMITED ANNUAL REPORT
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Directors’ declaration
.
In the opinion of the directors of EVT Limited:
(a)
the consolidated financial statements and notes that are set out on pages to and the Remuneration Report in the
Directors’ Report set out on pages to , are in accordance with the Corporations Act , including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at June 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 ; 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.
.
.
.
There are reasonable grounds to believe that the Company and the Group entities identified in Note . 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 /.
The directors have received the declarations required by section A of the Corporations Act from the Chief Executive
Officer and the Director Finance & Accounting for the year ended June .
The directors draw attention to Note . 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 th day of August
| EVT LIMITED ANNUAL REPORT
SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
Additional information required by the ASX Listing Rules and not disclosed elsewhere in the Annual Report is set out below:
Shareholdings (as at August )
Substantial shareholders
The names of substantial shareholders who have notified the Company in accordance with section B of the Corporations Act
are:
Shareholder
Enbeear Pty Limited
Carlton Investments Limited
Perpetual Limited and its related bodies corporate
* Includes Carlton Investments Limited holding.
Voting rights
Number of ordinary shares held
,,*--
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Ordinary shares
There were , holders of ordinary shares of the Company. The voting rights attaching to the ordinary shares, set out in clause
.(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:
()
()
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
– ,
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Number of
shareholders
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Number of
shares held
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The number of shareholders holding less than a marketable parcel is .
Unquoted ordinary shares
There were no unquoted ordinary shares of the Company as at August .
Performance rights
As at August , there were holders of a total of ,, Performance Rights granted under the Group’s Executive
Performance Rights Plan. The Performance Rights do not carry voting rights.
| EVT LIMITED ANNUAL REPORT
SHAREHOLDER INFORMATION
Twenty largest shareholders
The names of the largest shareholders of the quoted shares are:
Enbeear Pty Limited
HSBC Custody Nominees (Australia) Limited
Eneber Investment Company Limited
JP Morgan Nominees Australia Pty Limited
Citicorp Nominees Pty Limited
Alphoeb Pty Limited
The Manly Hotels Pty Limited
Carlton Hotel Limited
Mr Alan Graham Rydge
Argo Investments Limited
BNP Paribas Noms Pty Ltd
UBS Nominees Pty Ltd
Mutual Trust Pty Ltd
T N Phillips Investments Pty Ltd
National Nominees Limited
Mirrabooka Investments Limited
BNP Paribas Nominees Pty Ltd
Citicorp Nominees Pty Limited
Mr David Christopher Seargeant
Prudential Nominees Pty Ltd
Number of
shares held
Percentage of
capital held
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On-market buy-back
There is no current on-market buy-back.
Securities exchange
EVT Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares. Shares are listed on the ASX
under the code EVT.
| EVT LIMITED ANNUAL REPORT
OTHER INFORMATION
Annual General Meeting
The Annual General Meeting will be held at :am (Sydney time) on Friday October at:
Event Cinemas
– George Street
Sydney NSW .
Shareholders and proxyholders may also attend and participate in the Meeting online at https://meetnow.global/MPLA.
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
George Street
Sydney NSW
Telephone
+
www.evt.com
Share registry
Computershare Investor Services Pty Limited
Level
Carrington Street
Sydney NSW
GPO Box
Melbourne VIC
Telephone
Facsimile
+
www.computershare.com
For more information on EVT Limited, please refer to our website at www.evt.com.
| EVT LIMITED ANNUAL REPORT
EVT LIMITED
ABN 51 000 005 103