| EVT LIMITED ANNUAL REPORT
ANNUAL REPORT
Annual Report
ABN
| EVT LIMITED ANNUAL REPORT
ANNUAL REPORT
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.
| EVT LIMITED ANNUAL REPORT
ANNUAL REPORT
Contents
Section
Page
Directors’ Report
Lead Auditor’s Independence Declaration
Statement of Financial Position
Income Statement
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Consolidated Entity Disclosure Statement
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Other Information
| EVT LIMITED ANNUAL REPORT
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:
Director
since
AG Rydge (Chairman)
BD Chenoweth
PR Coates
VA Davies
DC Grant
JM Hastings (Managing Director and Chief Executive Officer)
PM Mann (resigned February )
JB Webster (appointed March )
DIRECTORS’ QUALIFICATIONS, EXPERIENCE AND INDEPENDENCE STATUS
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 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.
Mr Chenoweth was previously chairman of Adairs Limited (ASX:
ADH) (resigned March ).
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 director
of Glencore plc, 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 .
| 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, a
New Zealand company, and is a director of Cinema Association
Australasia, an Australian public company limited by guarantee.
Ms Hastings is currently chair of the Global Cinema Federation
and was previously a New Zealand Film Commission board
member.
Jenelle Webster BComm, CA, Registered Company Auditor, IIAA, AGIA
Independent non-executive director and Board member since
. Member of the Audit and Risk Committee.
Experience
An experienced non-executive director over years of senior
finance and accounting experience within both the public and
private sectors. Ms Webster was previously the Chief Financial
Officer at St Vincent’s Private Hospital in Sydney from to
, and prior to that was an Audit Executive at Ernst & Young
from to .
Directorships
Ms Webster is a director of Whitefield Industrials Limited (ASX:
WHF) and Cadence Capital Limited (ASX: CDM). Ms Webster
also holds the position of Director of Advancement at The Scots
College in Sydney.
Explanation of abbreviations and degrees: AM Member of the Order of Australia; AO Officer of the Order of Australia; BComm Bachelor of Commerce; 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; GAICD Graduate Member of the Australian Institute of Company Director; AGIA
Member of the Governance Institute of Australia and IIAA Member of the Institute of Internal Auditors.
| 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
Audit and Risk Committee
meetings
Nomination and
Remuneration Committee
meetings
Other special purpose
committee meetings (a)
Entitled
to attend
Attended
Entitled
to attend
Attended
Entitled
to attend
Attended
Entitled
to attend
Attended
AG Rydge
5
5
4
4
7
7
3
3
BD Chenoweth
5
5
1
1
–
–
–
–
PR Coates
5
4
1
1
7
7
2
2
VA Davies
5
5
1
1
7
7
–
–
DC Grant
5
5
4
4
–
–
3
3
JM Hastings (b)
5
5
4
4
6
6
3
3
PM Mann (c)
4
4
3
3
–
–
–
–
JB Webster (d)
1
1
1
1
–
–
–
–
(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 investment in CineStar Germany.
(b)
JM Hastings attended Audit and Risk Committee and certain Nomination and Remuneration Committee meetings by invitation. Other directors who are
not members of a committee may attend meetings by invitation from time to time.
(c)
PM Mann resigned on 15 February 2024.
(d)
JB Webster was appointed on 21 March 2024.
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
The Group’s normalised revenue was $,. million, up $. million (.%) on prior year and up .% on an underlying basis,
driven by a record revenue result in Hotels and Resorts (up .%) and growth in underlying Entertainment revenue (.%).
A record result was achieved for the Hotels and Resorts division with revenue of $. 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”) of $. million up $. million or .%. Record revenue per available room (“revpar”)
results were achieved with each of the Group’s brands contributing to this outstanding result and achieving greater than fair market
share. Rydges Melbourne delivered strong trading and customer sentiment results in the first year of trading after a major upgrade
was completed in .
Thredbo was impacted by the worst winter weather conditions for nearly years, and with adverse weather continuing to impact the
summer opening season. The remainder of the summer season traded in line with the prior record year. Poor weather conditions also
impacted the start to the winter season, with no natural snowfall and no significant terrain open until the end of June, which
compared unfavourably with June . Revenue for the year was $. million, $. million (.%) below a record prior year,
whilst normalised EBITDA was $. million, $. million below the prior year. The success of the new business model was a key
factor to deliver these results on materially weaker season conditions.
Entertainment underlying revenue of $. million was up $. million (.%) adjusting for prior year German Government
support. The first half of the year was strong, underpinned by a record first quarter driven by the success of Barbie and Oppenheimer.
First half revenue of $. million, was up .% on the prior comparable half year period, and normalised EBITDA was $. million,
up .%. As expected, the second half of the year was materially impacted by the Hollywood industry strikes (July to November
) with studios delaying film releases, resulting in fewer admissions. As a result, the April to mid-June period recorded the
lowest admission weeks on record (excluding COVID closure periods). In addition, there was a greater contribution from family films
and whilst the Group was able to successfully grow per family spend, each family admission contributes less than a normalised
audience. In Australia, adjusting for the benefit of IMAX Sydney, second half revenue was down $. million, and second half
normalised EBITDA was down $. million. Strong cost management mitigated most inflationary pressures, but the combination of
the material strike impact on admissions and several screens closed for upgrades, resulted in base operating models not able to fully
offset energy and rent increases. Entertainment New Zealand normalised EBITDA was $. million, up $. million on prior year.
Entertainment Germany’s EBITDA, adjusting for prior year Government subsidies, was down $. million. Like Australia, EBITDA
margin was impacted due to strike-related record low admission periods in April and May, and the European Championships which
took place in Germany during June and July . Overall, the success of the revenue strategies has proven that in like for like
admissions months, margin growth can be achieved. As the film line up recovers into FY and FY, the benefit of these revenue
strategies is expected to deliver strong results.
The Group’s property portfolio is independently valued at least every three years and updated independent valuations were obtained
in the prior year for the majority of the Group’s property portfolio. The overall independent value of the Group’s property portfolio is
approximately $,. million. The Group’s property strategy is to own hotel properties in key city locations that support the growth
of the Group’s hotel brands, to develop assets, and divest underperforming and non-core assets to recycle capital into growth projects.
The normalised EBITDA for the Group’s Property division was $. million, up $. million (.%) on the prior year.
The Group invested in future growth initiatives and capabilities including initial resourcing for offshore hotel expansion and ongoing
investment in leveraging efficiencies from artificial intelligence and customer facing digital technology as part of its business
transformation strategic initiatives. Strong cost management discipline was evident across the Group with a range of business
transformation initiatives deployed to mitigate the impact of cost pressures and the ever-growing cost of compliance. The Group’s
unallocated corporate costs at the EBITDA level decreased $. million to $. million. 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 relating to the prior year’s performance.
The Group’s Normalised EBITDA was $. million. The prior year included a non-recurring $. million of German Government
support and excluding this, underlying normalised EBITDA was down $. million (.%) on the prior year. The decline in EBITDA
year on year is related to a change in the mix of earnings from the Group with poor weather conditions at Thredbo (EBITDA down
$. million), and the impact of Hollywood strikes resulting in a lack of consistent film releases causing unusually low trading
periods, combined with the impact of temporary screen closures for refurbishments.
The Group’s profit before interest, individually significant items, the net impact of AASB Leases, and income tax expense was $.
million and included an increase in depreciation in relation to the reopening of Rydges Melbourne and the opening of IMAX Sydney.
Normalised profit after tax was $. million, down $. million adjusted for German Government subsidies in the prior year. The
reported net profit after income tax was $. million. The current year reported net profit after tax included a non-cash tax charge of
$. million following a change in New Zealand taxation rules in relation to the depreciation of buildings. In the prior year, the
reported net profit after tax included the profit on sale of properties of $. million recognised on disposal of The Miller Hotel
(formerly Rydges North Sydney) and the Darwin Cinema Centre. Adjusted for these and other one-off individually significant items,
NPAT was down in line with trading performance.
The Group’s net debt at June was $. million, which was broadly in line with 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 LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
EVT Group Strategy
EVT (Entertainment, Ventures and Travel) strategic framework continues to make strong progress against the three strategic goals,
being:
.
Grow revenue above market by deploying insight-led demand driving strategies and ensuring a positive customer
experience and engaged employee culture to secure results above fair market share.
.
Maximise assets by growing the value of the EVT hotel property portfolio through developing existing assets, acquisition of
hotel properties in key city locations that support the growth in the Group’s hotel brands, asset-light hotel brand growth and
divesting underperforming and non-core assets to recycle capital into growth projects.
.
Business transformation initiatives to continually improve operating models and IT innovation 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 with our focus areas of sourcing responsibly, designing for the future, and playing our part by
sharing the progress that we make along the way.
To support the Elevate our Environment strategy, the Group has announced its commitment to carbon reduction goals for .
These goals are a % reduction in Scope and carbon emissions compared to the FY base year, and a % reduction in Scope
emissions compared to the FY base year. A detailed plan has been developed to achieve these goals. In summary, the reduction
in Scope emissions is expected to be achieved with a transition to purchasing renewable electricity for our cinemas and hotels, with
Thredbo having purchased renewable electricity for several years. For the reduction in Scope emissions, the Group will be working
with its suppliers to understand their decarbonisation goals and over time drive more sustainable procurement decision making.
Maximising Assets
The EVT property portfolio is currently valued at approximately $,. million, principally based on independent valuations obtained
in the prior year. The portfolio is underpinned by the Group’s property strategy of acquiring hotel properties in key city locations that
support the growth of the Group’s hotel brands, developing existing assets with premiumisation initiatives, and divesting
underperforming and non-core assets to recycle capital into growth projects.
The Group has previously divested over $ million of non-core properties at a premium of approximately % over the independent
valuations of the properties sold. These properties previously contributed EBITDA of approximately $. million in FY, and the lost
earnings have been fully offset by the success of the asset-light Hotels brand growth strategy. Whilst the Group’s non-core property
proceeds target was exceeded, there are a small number of other properties that will be divested when market conditions are
favourable. One of these properties is Rydges Hobart and sale contracts have been exchanged ($. million) and the sale is
expected to complete in August .
Property acquisitions completed included Essex Street, Fremantle (Western Australia), and plans are in progress to convert this
property to a LyLo with construction expected to commence later in the year. In addition, a Development Application has been
approved for the development of LyLo Gold Coast on surplus land at the Group’s QT Gold Coast property. A Development Application
has been approved for a new basement bar at QT Sydney, and planning for the potential expansion of guest rooms in underutilised
conference space at Atura Adelaide Airport is in progress.
In relation to the Group’s major development projects, planning is in progress for the phased upgrades of Rydges Queenstown in
FY and QT Canberra in FY. A Stage Two Development Application was approved in May for George Street, Sydney of a
mixed-use development including prime George Street retail space, a QT hotel, and residential apartments. A range of options are
currently under consideration to realise the best return from this development. In addition, The City of Sydney has previously approved
the podium for the proposed - George Street development. As an initial phase, the planning for the extension of the QT Hotel
and prime retail space across the podium level is underway. The timing of these projects will be subject to market conditions.
The Group continues to target investment into key cinema locations with premium cinema experiences. Australia's first ScreenX
opened in August at Event Cinemas Robina, and a DX screen is planned for Event Cinemas Innaloo later this year. IMAX Sydney
opened in October , and despite being only one screen has ranked as the sixth highest grossing cinema complex in the country.
Targeted premiumisation upgrades are also in progress at Event Cinemas Innaloo, Marion, Burwood and BCC Rockhampton. In total,
new or upgraded premium screens were completed or commenced during the year.
Hotel Expansion
The Group’s hotel strategy has evolved to expand into all market segments from luxury to budget accommodation across Australia
and New Zealand and targeted international markets. Highlights of expansion activity in the year include:
A management agreement was signed for the Hotel Telegraph, Singapore, which is in the final stages of conversion to QT
Singapore, the first QT property outside of Australia and New Zealand and a key milestone in the Group’s targeted
international expansion strategy.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Management agreements have been executed for three future additions to the Rydges portfolio, including the Rydges
Ringwood in Victoria (formerly the Sebel Ringwood, under Rydges management from August ), and the new
developments of Rydges Tauranga New Zealand and Rydges Wailoaloa Beach Fiji, both of which are expected to open in the
next three years.
The Group secured management agreements for additional independent hotels including The Old Clare Hotel, Sydney, The
Harbour Rocks Hotel, Sydney, The Inchcolm Hotel, Brisbane and The Alex Hotel, Perth.
LyLo is an innovative budget lifestyle accommodation offering to meet the needs of budget travellers. LyLo properties cater
to all styles of travel and feature a mix of private sleeping pods, private double rooms with design led shared amenities and
private ensuite rooms, as well as shared kitchen facilities, workspaces and social areas to connect with fellow travellers. LyLo
now operates in Brisbane, Auckland, Christchurch and Queenstown. LyLo Perth and LyLo Gold Coast are two new properties
in the pipeline over the next two years.
FY outlook
In Entertainment, FY started with the release of two strong family releases, Inside Out and Despicable Me . Inside Out is the
highest-grossing animated film of all time, and Despicable Me has exceeded the performance of Despicable Me . Deadpool &
Wolverine has been well received by audiences and has set new records in key metrics. However, the combination of these three films
is not expected to offset the record prior comparable period which included Barbie and Oppenheimer. A stronger line-up is anticipated
in second quarter versus prior comparable second quarter with major titles including Joker: Folie à Deux, Gladiator II, Wicked, Moana
and Mufasa. The film line-up consistency for FY remains impacted by the prior year film production disruption due to Hollywood
strikes, however, less film date moves are anticipated. Subject to film appeal, particularly over the peak Christmas period, FY could
be in line with, or ahead of, the prior year. Looking further ahead, there are good signs of recovery in the film line-up into FY.
It has been a slower start to the year for Hotels due to fewer major events to drive demand. Looking ahead, there are some anticipated
market headwinds, including a New Zealand market that, except for Queenstown, is challenged, and Sydney and Melbourne markets
will cycle the Taylor Swift impact in the third quarter. There is also the general pressure on consumer discretionary spend impacting
weekend leisure travel decisions. Weekday corporate travel remains strong and there is positive demand from conference and events.
There is still room for recovery in inbound travel into both New Zealand and Australia, particularly from China. Despite these
headwinds, the Group expects to be in line or possibly achieve another record result for the Hotel segment.
Thredbo’s winter season has had a slower start than the prior year with no natural snowfall until after the key school holiday
period in July. Despite these challenges, the Group’s investment in snowmaking and recent natural snowfall supported improved
conditions in August. Overall, a result broadly in line with FY is expected, subject to the second half, including conditions in June
.
The Group continues to mitigate inflationary cost pressures, including in relation to rent, energy and wages.
The Group has a strong foundation for the future and greater agility to respond to market challenges that may arise in FY.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
OVERVIEW OF THE GROUP
The Group’s profit before interest, individually significant items, the net impact of AASB Leases, and income tax expense was $. million and included an increase in depreciation in relation
to the reopening of Rydges Melbourne and the opening of IMAX Sydney. Normalised profit after tax was $. million, down $. million adjusted for German Government subsidies in the prior
year. The reported net profit after income tax was $. million. The current year reported net profit after tax included a non-cash tax charge of $. million following a change in New Zealand
taxation rules in relation to the depreciation of buildings. In the prior year, the reported net profit after tax included the profit on sale of properties of $. million recognised on disposal of The
Miller Hotel (formerly Rydges North Sydney) and the Darwin Cinema Centre. Adjusted for these and other one-off individually significant items, NPAT was down in line with trading performance.
A summary of the normalised result is outlined below:
June
June
CONSOLIDATED GROUP RESULT
Normalised
EBITDA
Depreciation
and
amortisation
Normalised
Result
Impact of
AASB
Leases
Reconciliation
to reported net
profit
Normalised
EBITDA
Depreciation
and
amortisation
Normalised
Result
Impact of
AASB
Leases
Reconciliation
to reported net
profit
$’
$’
$’
$’
$’
$’
$’
$’
$’
$’
Entertainment
Australia and New Zealand
,
(,)
,
,
,
,
(,)
,
,
,
Germany
,
(,)
()
,
,
,
(,)
,
,
,
Travel
Hotels and Resorts
,
(,)
,
,
,
,
(,)
,
,
,
Thredbo
,
(,)
,
–
,
,
(,)
,
–
,
Property
,
(,)
,
–
,
,
(,)
,
–
,
Unallocated revenues and expenses
(,)
(,)
(,)
–
(,)
(,)
(,)
(,)
–
(,)
,
(,)
,
,
,
,
(,)
,
,
,
Net finance costs
(,)
(,)
(,)
(,)
(,)
(,)
,
,
,
,
,
,
Income tax expense
(,)
()
(,)
(,)
(,)
(,)
Profit before individually significant items
,
,
,
,
,
Individually significant items – net of tax
(,)
,
Reported net profit
,
,
1.
Normalised EBITDA is the normalised result (see below) for the year before depreciation and amortisation and excluding the impact of AASB 16 Leases.
2.
Depreciation and amortisation excludes the impact of AASB 16 Leases.
3.
Normalised result is profit for the year before individually significant items (as outlined in Note 2.2 to the financial statements) and excluding the impact of AASB 16 Leases. As outlined in Note 2.2 to the financial statements, this
measure is used by the Group’s Chief Executive Officer to allocate resources and in assessing the relative performance of the Group’s operations. The normalised result is an unaudited non–International Financial Reporting
Standards (“IFRS”) measure.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
An analysis of the last five years is outlined below:
Total revenue and other income ($’)
,,
,,
,
,
,,
Basic earnings per share (cents)
.
.
.
(.)
(.)
Total dividends declared(a) ($’)
,
,
–
–
,
Ordinary dividends per share (cents)
–
–
Special dividends per share (cents)
–
–
–
–
(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
–
,
Restructure, redundancies and staff related costs
(,)
–
New system implementation costs
(,)
–
Hotel and cinema pre-opening costs
(,)
(,)
Write-off relating to various development projects
(,)
–
Other expenses (net of income items)
()
()
Impairment charges
–
(,)
Transaction and other costs associated with the sale of a business segment
–
(,)
Individually significant items before tax
(,)
,
Income tax benefit/(expense)
,
(,)
Income tax expense adjustment to deferred tax liabilities (relating to the removal of tax
depreciation for commercial buildings)
(,)
–
Individually significant items after tax
(,)
,
Individually significant items includes a one-off tax expense adjustment (non-cash) of $,, arising from the change in
government tax policy in New Zealand and relating to the removal of commercial building depreciation from the - income
year onwards. The adjustment creates a corresponding deferred tax liability for a number of the Group’s buildings located in New
Zealand. The deferred tax liability will unwind (over a period of up to years) as the relevant buildings are depreciated under the
Group’s depreciation accounting policy.
INVESTMENTS
The Group acquired property, plant and equipment totalling $,, during the year. The significant acquisitions and capital
additions include the following:
– the conversion of the Limes Hotel, Brisbane to Australia’s first LyLo;
– cinema refurbishments at Chermside, Campbelltown, Burwood, Innaloo and Marion in Australia, and Dortmund and Bremen in
Germany;
– the completion of the fit-out of IMAX Sydney;
– the Thredbo Alpine Coaster; and
– other refurbishment requirements for Thredbo, cinemas, hotels and resorts.
On September , the Group acquired an additional % interest in Rydges Latimer Holdings Limited (“Latimer”) taking the
Group’s total ownership interest in Latimer to %. Latimer owns and operates the Rydges Latimer Christchurch hotel. The net
consideration paid for the acquisition of % of the total share capital of Latimer was NZ$,, (A$,,).
Further information relating to these acquisitions has been outlined within Note . to the financial statements.
PROPERTY
The Group has exceeded its previous target to realise gross proceeds of $ million from the sale of non-core property assets. Total
proceeds from non-core property sales up to and including those that completed in the prior year were $. million, which
represented a premium of approximately % over the most recent valuations of the properties sold. 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 two to three-year cycle. Independent valuations for the
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
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 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:
Valuations
(a)
Carrying value
Valuations
(a)
Carrying value
$’
$’
$’
$’
Interest in land and buildings
,,
,,
,,
,,
Investment properties
,
,
,
,
Assets held for sale
,
,
,
,
Total
,,
,,
,,
,,
(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 include 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 in 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 $,, (: $,,) under the credit support facility.
A New Zealand-domiciled subsidiary has a general business loan facility. The subsidiary had drawn NZ$,, (A$,,)
under the facility at June (: NZ$,, (A$,,)).
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.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
REVIEW OF OPERATIONS BY DIVISION
ENTERTAINMENT GROUP
The Group’s Entertainment revenue of $. million was up $. million (.%) on an underlying basis adjusting for prior year
German Government support, and normalised EBITDA was $. million.
The year started with a record quarter and then suffered from fewer releases due to the Hollywood strikes for the remainder of the
year. A strong first half (admissions +.% on prior year) was underpinned by a record first quarter driven by the release of Barbie
and Oppenheimer in July . However, second half admissions were down .% on the prior year, impacted by the strikes
that halted the Hollywood production and release of films. The most impacted period of the year was April to mid-June , where
the Entertainment Group experienced year-on-year declines in admissions of % or more in key trading weeks. Pleasingly, June
performed well ahead of global expectations with Inside Out strongly resonating with family audiences, and it is now the
number one animated title of all time. The German market was also impacted by the European Championships where local content
was not released during this window and a materially lower contribution from D (down from .% to .%) due to the impact of
the types of films released caused by the Hollywood strikes.
The Entertainment Group continues to experience record results when high quality blockbuster titles are released and like for like
admissions periods continue to demonstrate margin improvement, despite cost pressures.
Year ended June
Movement
Admissions ()
,
,
-.%
Revenue ($)
,
,
-.%
Underlying Revenue ($)
,
,
+.%
Normalised EBITDA ($)
,
,
-.%
Underlying EBITDA ($)
,
,
-.%
PBIT ($)
,
,
-.%
.
Admissions includes the Group’s share of admissions from joint operations.
.
Adjusted for German Culture Fund subsidies received in the prior year.
ENTERTAINMENT AUSTRALIA
As at June
Movement
Cinema locations*
–
Cinema screens*
()
* Managed and joint venture cinema sites (excludes Moonlight Cinema sites and screens and the State Theatre).
Entertainment Australia revenue was $. million, a .% increase on the prior year. Box Office revenue increased by .% on the
prior year. In the first half, box office revenue was up .% on the prior comparable period, driven by the success of Barbie and
Oppenheimer in the first quarter. Second half box office revenue was down .% on the prior comparable period, or down .%
excluding the benefit of IMAX Sydney.
As expected, the second half of the year was challenged by the material impact of the Hollywood industry strikes (July to November
) with studios delaying film releases beyond the financial year, resulting in less admissions. With fewer films, the April to mid-
June period recorded the lowest admission weeks since COVID closures. In addition, there was a greater contribution from family
films (more family admissions) and whilst the Group was able to successfully grow per family spend, each family admission
contributes less than a normalised audience. The second half, on a like for like basis adjusting for the benefit of IMAX Sydney, revenue
was down $. million, and normalised EBITDA was down $. million. Strong cost management mitigated most inflationary
pressures, but the strike impact on admissions in the second half resulted in the base operating models not able to fully offset energy
and rent increases. Entertainment Australia was further impacted by temporary closure of screens in key locations for upgrades.
The key releases during the year included Barbie (July) which grossed over $. million and is now the fifth highest grossing film of
all time in Australia, and the release of Oppenheimer (grossed $. million), Wonka (grossed $. million), and Dune: Part Two
(grossed $. million). The impact of the writers and actors’ strikes which ran from July to November , resulted in the stalling
of film production and delayed release dates. As a result during the year, there were nine titles that grossed over $ million, compared
to twelve titles in the prior year. Given the delay to the larger titles being released, there was a greater dependency on mid-range titles
with titles released in the period that grossed between $ million and $ million up from titles in the prior year.
Premium concepts were favoured by customers, with the admission contribution from premium concepts at %. AAP increased by
.% over the prior full year period’s record result and SPH increased by .% over the pre-COVID FY, holding up .% on prior
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
year. Eight out of the months of the financial year set a new SPH record, which was a strong result given the change in film mix
and audiences. The Group’s direct customer relationships remain strong with Cinebuzz representing % of cinema visits and %
of online transactions.
Australia's first ScreenX opened in August at Event Cinemas Robina, allowing audiences to immerse themselves in a -
degree viewing experience where movie visuals are extended to the side walls of the auditorium. IMAX Sydney opened in October
, with the site being the sixth highest grossing cinema in the country despite being a single screen. Event Cinemas
Campbelltown was refurbished including Gold Class, ScreenX, V-Max with daybeds, reclining seats and premium fixed back seating,
and introduction of a self-service Marketplace candy bar. Refurbishment works also commenced at Event Cinemas Castle Hill, Event
Cinemas Marion and Event Cinemas Burwood. Given strike-impacted film supply, it was the ideal timing to upgrade these key screens.
The result was impacted by the unplanned closure of Event Cinemas Burwood for the majority of the first half of the year due to roof
damage.
Capital works scheduled for FY include further auditorium upgrades at Event Cinemas Castle Hill, Marion, Burwood and BCC
Rockhampton. The Group has also reached agreement with IMAX to convert two screens across the Australian circuit to the IMAX
format in calendar and .
The overall normalised EBITDA profit for the year ended June was $. million, which was down $. million (.%) when
compared with EBITDA of $. million in the prior year. The result was impacted by the Hollywood strikes disrupting film supply with
record low admission levels from April to mid-June impacting margins, and costs associated with the temporary closure of
auditoriums for premiumisation upgrades during the year. In seven out of months, the Group achieved EBITDA margin growth
compared with like for like admit months in the pre-COVID period.
ENTERTAINMENT NEW ZEALAND
(Note: all amounts in Australian dollars unless otherwise stated)
As at June
Movement
Cinema locations*
–
Cinema screens*
–
* Managed and joint venture cinema sites.
Entertainment New Zealand revenue was $. million, up $. million or .% on the comparable prior year. Box Office revenue
increased by .%. The Queensgate cinema which commenced trading in December and fully opened in April was the
highest grossing cinema complex in the country for the full year.
Admissions were relatively flat, down .% on the prior year, despite the impact of the actors’ and writers’ strikes with a record
contribution from World titles. First half admissions were up .% on the prior comparable period, driven by the success of Barbie
and Oppenheimer, whilst second half admissions were down .% on the prior comparable period due to the impact of the strikes.
The top grossing films for the year were: Barbie (grossed NZ$. million); Oppenheimer (grossed NZ$. million); Wonka (grossed
NZ$. million); Dune: Part Two (NZ$. million); and Mission: Impossible - Dead Reckoning Part One (grossed NZ$. million). As
with Australia there was a noticeable lack of blockbuster films with only nine titles grossing over $ million compared to titles in
the prior year. Barbie became the fourth highest grossing film ever in New Zealand highlighting that audiences are keen to return to
the cinema when high-quality films are released.
As evidenced in Australia, customers were spending more per visit with a record period of AAP, up .% on the prior year and
increasing by .% over the pre-COVID FY. In addition, SPH was up .% on pre-COVID spend per head, and held up
.% on the prior year. A total of nine out of months set new SPH records. Cinebuzz maintained its strong influence with Cinebuzz
representing approximately % of all online transactions. Overall, customer satisfaction and employee engagement scores also
improved year on year.
The normalised EBITDA result for the year ended June was a profit of $,, which was an improvement of $,
(.%) on the prior year.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
ENTERTAINMENT GERMANY
(Note: all amounts in Australian dollars unless otherwise stated)
As at June
Movement
Cinema locations*
()
Cinema screens*
()
* Managed and joint venture cinema sites.
Entertainment Germany revenue was $. million which was .% below the prior year. The prior year included COVID related
assistance and subsidies of $. million. Excluding the benefit of the COVID related assistance and subsidies from the prior year,
revenue was .% above the prior year.
The highest grossing titles within the German market included: Barbie (. million admissions); Oppenheimer (. million
admissions); Dune: Part Two (. million admissions); the German production Chantal im Marcheland (. million admissions);
and Wonka (. million admissions). The top ten films achieved total market admissions of . million, which was .% lower
than the prior year.
SPH increased by .% over the prior year and by .% over the pre-COVID FY. AAP was flat on the prior year and was still up
.% on the pre-COVID-FY period, a good result considering the materially reduced contribution from D films in the year, down
from .% to .%, and the impact on film releases of the European Championships football tournament held in Germany in June
and July .
The second half of the year was challenged by the material impact of the Hollywood industry strikes (July to November ) with
studios delaying film releases beyond the financial year and less local German films released, resulting in less admissions. With fewer
films, the April to May period recorded the lowest admission weeks since COVID closures. The strike impact on admissions in the
second half resulted in the base operating models not able to fully offset cost increases.
The significant rise in energy costs in recent years was partially mitigated by the German government’s energy subsidy program which
continued through to December . Energy prices are reducing compared to the peak pricing in but remain higher than
pre-COVID levels.
Entertainment Germany’s EBITDA, adjusting for prior year Government subsidies, was down $. million. Like Australia, the ability to
fully mitigate cost increases was impacted by the strike related record low admission periods in April and May, and the European
Championships which took place in Germany in June and July .
The Group has commenced refurbishment of the Dortmund and Bremen locations which will introduce premium cinema concepts
and is planning refurbishments at two other key locations. The Group has also reached agreement with IMAX to convert four screens
across the German circuit to the IMAX format in calendar and .
HOTELS AND RESORTS
As at June
Movement
Locations*
Rooms*
,
,
Locations (owned)
–
Rooms (owned)
,
,
()
* Owned, managed and other hotels with which the Group has a branding, license, or affiliate agreement. Includes LyLo ensuite rooms but excludes Pods.
A record result for Hotels and Resorts with revenue of $. million, an increase of .% over the prior year, and normalised EBITDA
of $. million, +$. million or +.%. Normalised PBIT was $. million, an increase of $. million or .% over the prior
year. The Group's expanded brand portfolio and operating models have unlocked growth opportunities for shareholders, hotel owners
and employees alike. EVT’s hotel portfolio now comprises hotels with , rooms spanning across Australia, New Zealand and
Singapore.
All the Group’s brands continue to perform ahead of market and contributed to record occupancy and revpar results. Occupancy in
the Group's owned hotels reached .%, an increase of . percentage points compared to the previous year. The average room rate
was $, resulting in a revpar of $, an increase of .% on the prior year.
Rydges Melbourne delivered strong results, in line with expectations for its first full year of trading following a major upgrade. Major
events, such as Taylor Swift’s Eras Tour in February , and the FIFA Women’s World Cup in July and August , fuelled demand
delivering record room rates during key trading periods. Food and beverage revenue was up .%, with a . percentage point
improvement in margin. Overall, customer satisfaction and employee engagement scores also improved year on year.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Demand from the corporate and conference segments was strong, with a record result in conference and events for the year. There
was further recovery in inbound with stronger recovery in wholesale business. However, a full recovery in inbound traffic will take some
time, as international arrival numbers have yet to reach pre-COVID levels, particularly for the China market. Growth from these
segments was partially offset by a normalisation of domestic leisure travel following the sharp post-pandemic acceleration in demand
experienced from this segment in FY.
During the year, the Group faced inflationary pressure on costs and the growing cost of compliance. Despite these headwinds,
margins across the business have recovered well, with the normalised EBITDA margin up slightly on the prior year.
New technology, both customer-facing and back-of-house, has significantly improved management effectiveness and the guest
experience. A two-year project to introduce a new central reservations platform is set to be completed in FY. This will deliver
enhanced functionality at a lower cost, making it easier and faster to connect with distribution partners and onboard new hotels.
Network expansion remains a strategic priority. Three additional lifestyle hotels (The Old Clare Hotel and Harbour Rocks Hotel in
Sydney and The Inchcolm Hotel in Brisbane) have joined the Independent Collection by EVT, which now comprises , rooms
across hotels. A further four management contracts have been executed for future additions to the portfolio, including The Alex
Hotel Perth (July ), the Rydges Ringwood in Victoria (formerly the Sebel Ringwood, opens August ), Rydges Tauranga New
Zealand (expected to open in late ) and Rydges Wailoaloa Beach Fiji (expected to open in - years). Other managed hotels
including QT Parramatta and Atura Oran Park are expected to be added to the portfolio in the next few years. The Hotel Telegraph in
Singapore secured under a management contract in December , was closed in April for a major refurbishment, and will
reopen in September as QT Singapore, the Group’s first QT Hotel outside Australia and New Zealand. Australia’s first LyLo
property opened in Brisbane taking the LyLo portfolio to four properties with rooms and pods, with LyLo Perth and LyLo
Gold Coast in the future pipeline.
THREDBO ALPINE RESORT
The Thredbo result was materially impacted by adverse weather conditions during both the winter and the - summer
seasons. Revenue for the year was $. million, $. million (.%) below the record prior year, whilst normalised EBITDA was
$. million, $. million below the prior year.
The winter weather conditions were the worst experienced since . Winter had a late start, and the season continued with
warm weather patterns and an unusually high number of days with strong winds that resulted in key lifts not operating. Winter
visitation (measured by skier access scans) was .% percent lower than the prior year. The new business model continued to
maintain strong yield, with the ticket price per skier up .% on the prior year, and up .% on pre-COVID levels. The first half
summer months were also impacted by poor weather conditions limiting trade with closures during key trading periods, and the
normalisation of domestic travel to the region. The second half summer months were in line with the prior year. When weather
conditions are more favourable, demand for mountain biking remains strong. Customer sentiment remained high across the winter
and summer months. Costs were well controlled despite inflationary pressures.
Poor weather conditions impacted the start to the winter season. The resort opened on the June long weekend, but with no
natural snowfall the Group was unable to open any significant terrain until the end of the month, which compared unfavourably with
June . The important school holiday period in July was also limited by no natural snowfall. Despite these challenges, the
Group’s investment in snowmaking and recent natural snowfall supported improved conditions in August.
The Alpine Coaster was opened in June and is performing well. The Alpine Coaster delivers a further year-round attraction to
the resort. Major upgrades to the snowmaking system, including pipe replacement and the installation of three new snowmaking fan
guns on the Lower Supertrail, were also completed in time for the winter season. Looking ahead, mountain bike trail expansion
on both sides of the mountain is continuing with a focus on providing more variety to the trail network. Preparatory work has
commenced for the replacement of the two-seater Snowgums chairlift with a new six-seater chairlift, with construction scheduled for
completion for the winter season, subject to the necessary planning approvals.
PROPERTY AND OTHER INVESTMENTS
Property revenue was up $. million to $. million, and normalised PBIT of $. million was $. million above the prior year.
UNALLOCATED REVENUES AND EXPENSES
The Group’s unallocated corporate costs at the EBITDA level decreased $. million to $. million. 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 in
.
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
DIRECTORS’ REPORT
The Group’s strategic priorities and initiatives are described in the Operating and Financial Review on pages -, and summarised below:
| EVT LIMITED ANNUAL REPORT
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
Potential impact
How we are responding
Safety
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.
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 prior year. 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.
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.
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.
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.
Capital Management
Maintaining an appropriate capital structure,
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 has implemented detailed treasury
policies and procedures to manage and monitor
compliance with banking covenants and hedging
policies approved by the Board.
Property Values
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.
The Group has recently completed a successful
divestment of non-core properties, realising
proceeds of over $ million, representing a
premium of % over the most recent valuations
of the properties sold. Most of the remaining
Group properties are operating assets, reducing
the Group’s exposure to cyclical changes in
property valuations.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Key risks and
opportunities
Potential impact
How we are responding
Property Resilience
The Group is subject to inherent operational risks
that could potentially result in damage or loss of
one or more of the Group’s properties, including
because of earthquake, bushfire or extreme
weather event, a terrorist incident, or a fire at one
of the Group’s locations.
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.
Interruption to Film
Product Supply and a
Shortening of the
Cinema Release
window
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 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.
Customers, Partners
and Competitors
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.
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.
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.
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 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
Potential impact
How we are responding
Environmental
Sustainability and
Climate Change
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.
The Group continued alignment with the
recommended disclosures of the Task-force on
Climate-related Financial Disclosures (“TCFD”),
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 a long-term focus on contributing to a sustainable future, ensuring that there are strong foundations in
place to respond to a dynamic external environment and taking action to drive progress towards the Group’s strategic sustainability
goals. The Group’s approach is built on its strong values and a recognition that addressing significant sustainability challenges is a
collective endeavour, requiring collaboration and transparency. The Group is focused on making better choices for customers,
communities and the planet.
Materiality assessment
In FY, the Group completed a materiality assessment to identify material topics which:
reflect the impact of the business on people, the environment and the economy as well as the impact of these factors on EVT
as a business;
matter most to stakeholders and their decision-making; and
inform the Group’s sustainability strategy into the future.
In undertaking this assessment, topics were identified through desktop review and interviews with key internal and external
stakeholders, prioritised by the Group’s Senior Leadership Team (“SLT”) and representative internal stakeholders, and refined to
consider alignment to reporting standards, such as the Global Reporting Initiative Standards.
Material Topics
People
Community
Environment
Health, safety and wellbeing
Employee engagement
Talent attraction and retention
Diversity, inclusion and equal
opportunity
Training, learning and
development
Business reputation
Stakeholder engagement
Climate change
Carbon emissions
Sustainable design and
building
Natural capital
Packaging and waste
management
Responsible Procurement
Cyber and data security
Regulatory compliance
Transparency
This process underlined the importance of climate change to the Group’s stakeholders, and the Group is committed to playing its part
in reducing its impact on global warming. The Group recognises the significance of a changing climate for its team members,
customers, shareholders and community, and acknowledges that it presents risks and opportunities which may have a material
impact on the business in the future.
To address these risks and opportunities, the Group is committed to:
-
reducing the Group’s emissions, with goals to reduce the Group’s Scope , and emissions as explained further below;
-
taking action to progress delivery of the Sustainability framework; and
-
sharing information about progress and the assessment of the risks and opportunities with the Group’s stakeholders.
Our approach to Sustainability
Our approach to sustainability comprises three strategic priorities which seek to drive progress in areas that are important to our
business and stakeholders and provide a framework for our sustainability efforts:
-
Grow revenue above market: by differentiating our products and services.
-
Maximise assets: by investing in more resource efficient properties, we can enhance the value of our portfolio.
-
Business transformation: by taking the necessary steps to ensure EVT is well positioned to respond to a changing climate
and to transition to a lower carbon economy.
Achieving the Group’s strategic priorities is supported by four focus areas which include:
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
-
sourcing responsibly;
-
designing for the future;
-
playing our part (transparency and reporting); and
-
our partnerships.
The table below provides more detail on what these strategic priorities mean in practice for the Group, including how the focus areas
support them, how they are measured, and how the Group will put them into action. Importantly, while the Group’s activities have
many positive impacts, there are also trade-offs with Group activities which may also have the potential to cause adverse impacts.
The Group is committed to continuously improving sustainability performance by maintaining progress towards the Group’s strategic
priorities, optimising positive contributions and, where practicable, minimising adverse impacts. The Group will continue to review its
goals to ensure they remain relevant to the business and its stakeholders, and reflect its ambition for the future.
Strategic priority
What are we trying to achieve?
Focus areas
Where are we
focusing efforts?
Goal
What does this mean for the
Group?
FY Update
What
was
achieved
during the year?
Grow revenue above market by
differentiating our products and
services to meet customers’
expectations of lower carbon
experiences and grow revenue
ahead of our competitors.
Sourcing responsibly
Choosing to work with
suppliers who align to
our sustainability
principles and
sourcing more
sustainable products.
Reduce the environmental
impact of packaging across
the Group and manage
waste by:
engaging with
suppliers to
increase use of
recyclable
packaging.
working with
landlords to divert
waste from landfill.
improving waste
data to identify
reduction
opportunities.
Group waste contracting
for the Group’s hotels
and cinemas refreshed
with a strong focus on
ensuring more diversion
from landfill across the
Group and enhanced
data collection and
reporting.
Reduce emissions by
decreasing energy and
natural resource
consumption and
purchasing renewable
electricity.
Emissions reduction
goals in place – see
‘Goals and Metrics’
below.
Maximise assets by investing in
more resource efficient properties,
and enhancing the value of our
portfolio.
Designing for the
future
Choosing to actively
build and embed
sustainability into
how we design,
refresh and operate
our properties.
Obtain National Australian
Built Environment Rating
System (“NABERS”) ratings
for owned property.
Complete - NABERS
ratings have been
maintained for owned
properties in FY.
Consider and where
practical, prioritise products
which include recycled
material, reduce energy and
water use, and recycle waste
in capital expenditure
projects. This also includes
appropriate building
certifications.
* Green Star rating
targeted in Development
Application for the LyLo
Gold Coast development.
Business transformation by taking
the necessary steps to ensure EVT is
well positioned to respond to a
changing climate and to transition
to a lower carbon economy.
.
Playing our part
Choosing to respond
to a changing climate,
empower our people
and customers to take
part, and share our
progress along the
way.
Disclose our progress in
responding to climate-
related risks and
opportunities with Task
Force on Climate-related
Financial Disclosures
(TCFD) reporting.
Continued alignment
with the recommended
disclosures of TCFD in
Annual Report and
preparation for the
Australian Government’s
mandatory Australian
Sustainability Reporting
Standards (“ASRS”).
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Strategic priority
What are we trying to achieve?
Focus areas
Where are we
focusing efforts?
Goal
What does this mean for the
Group?
FY Update
What
was
achieved
during the year?
Raise awareness for
environmental protection
initiatives to support our
customers and team
members
All team members have
received information
about EVT’s
sustainability goals, and
% of our team have
completed a Know More
About EVT eLearning
module
Our partnerships
Choosing to work with
strategic partners and
experts who will hold
us to account and
help us achieve our
goals
Strengthen the
implementation of our goals
by working cross-
functionally to deliver our
goals across our business,
and with partners and
industry groups externally to
drive progress
Ongoing
Transparency and reporting – playing our part
In June , the International Sustainability Standards Board (“ISSB”) released its global sustainability disclosure standards, IFRS
S and IFRS S. IFRS S sets out specific climate-related disclosures and builds on the recommendations of the TCFD. These
reporting frameworks form the basis of the Australian Government’s mandatory climate-related reporting requirements for
businesses through amendments to the Corporations Act that are expected to be applicable to the Group for the financial year
ending June .
To date, the Group has progressively aligned its climate disclosures with the TCFD framework and as in previous years, external
climate consultants were engaged to support the Group’s preparation for the new disclosure requirements. Due to the Group’s
progressive alignment with the recommended disclosures of TCFD requirements, it is well positioned to meet the new mandatory
reporting requirements when they come into effect.
Sustainability Governance
Board oversight
EVT’s Board of Directors, directly and through authority delegated to the Audit and Risk Committee, is responsible for reviewing and
approving the Group’s sustainability-related strategies, goals, and material investments to manage actual or potential impacts and
opportunities on the Group. The Board sets the overall risk appetite for the Group and monitors the Group’s significant financial and
non-financial business risks as well as the adequacy, effectiveness and operation of risk management and compliance policies,
controls and frameworks.
The Board is also committed to ensuring there is an appropriate mix of skills, experience and diversity represented on the Board to
support decision-making. The Group’s Directors have a broad range of skills across various professions and industries and strong
capabilities in risk management, including climate-related risks. The Board will continue to consider appropriate sustainability skills
as part of its skills matrix, and is committed to continually developing climate-related capability.
In FY, the Board has been engaged regularly in the Group’s climate-related activities and progress, including reviewing updates to
climate scenario analysis to include a .°C aligned scenario, considering detailed climate risk and opportunities modelling applied
to the Group’s portfolio, and participating in the materiality assessment process. The impact of these climate scenarios on the Group’s
strategic plans will continue to be considered within the overall risk management process.
The Board is informed about the requirements of the ISSB Standards and the upcoming Australian Government climate-related
disclosure requirements.
The role of management
Once approved by the Board, the CEO leads the delivery of the Group’s strategic response to climate change, with the Company
Secretary responsible for leading the Group’s implementation of sustainability-related strategies and for reporting progress to the
Board at least twice a year.
The SLT oversee execution of the Group’s Sustainability strategy and are responsible for embedding the Group’s responses to climate
risks and opportunities into day-to-day risk management, business strategy, planning and budgetary processes. The SLT is
accountable for ensuring that the Group identifies, assesses, and manages material risks, including climate change and other
sustainability risks. Supporting the SLT is the Group Sustainability function and the Sustainability Committee which formulates and
drives implementation of EVT’s climate response including the Group’s decarbonisation pathway and climate resilience evaluation.
The Sustainability Committee meets bi-monthly to track progress towards the Group’s sustainability strategy.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
EVT’s Sustainability Governance Overview Diagram
Sustainability Strategy and Risk Management
The Group’s diverse, global operations require careful consideration of the strategic, operational, regulatory and financial risks
associated with a changing climate. Accordingly, the Group implements a robust set of risk management practices, to identify, assess
and manage climate-related risks and opportunities that adhere to its risk policy principles of creating and protecting value, through
integrated, focused, tailored and iterative risk management. This includes enterprise-level risk management, informed by the
materiality assessment and the climate risk and opportunity assessment that are regularly updated to form an overall picture of
business resilience.
Further information regarding the Group’s risk management framework and approach is set out in the Corporate Governance
Statement, available at www.evt.com/investors.
The Group periodically conducts climate risk assessments, including deep dives on physical and transition risks facing the Group,
with updated analysis being performed during FY. For the updated scenario analysis, the Group has identified the likely timeline of
the risk and opportunity impacts on the Group. These have been defined with consideration given to the life of the Group’s assets, the
profile of climate-related risks, and the sectors and geographies of operation. These time horizons are aligned to the requirements of
TCFD and outlined below:
Short term: - years
Medium term: - years
Long term: - years.
Climate Scenario Analysis
The Group has updated its climate scenario analysis in FY to include an additional climate-related scenario, deepen its
understanding of climate-related risks and opportunities across the portfolio, and better inform strategic planning. Importantly, while
scenario analysis is a useful planning tool for the Group, there are inherent limitations with scenario analysis and scenarios do not
constitute definitive outcomes or probabilities. It is difficult to predict which, if any, of the scenarios might eventuate and scenario
analysis relies on assumptions that may or may not prove to be correct.
In addition to the existing consideration of low emissions scenario and high emissions scenario on the Group’s activities, a .°C
scenario has been included to reflect current climate science.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Scenario :
Scenario :
Scenario :
Very low emissions scenario
(.°C)
Low emissions scenario
(< °C)
High emissions scenario
(> °C)
Scenario utilises the
SSP – . scenario.
The world shifts steadily toward more
sustainable practices, with a focus
shifting from economic growth to global
wellbeing.
Investments in decarbonisation and
abatement technology increase, as do
investments in education and health.
Consumption is oriented toward low
material growth, and lower resource and
energy intensity.
This is the only IPCC scenario that meets
the Paris Agreement, with temperatures
escalating .°C above preindustrial
standards but stabilising around .°C
by the end of the century.
Scenario utilises the
SSP – . scenario.
Global CO emissions are strongly
reduced, however the objective of zero
emissions is reached after . A high
carbon price and strict coordinated
emissions policy is adopted worldwide.
Severe weather events continue to
increase in frequency under this
scenario, however the worst impacts are
avoided.
Society embraces a rapid decline in fossil
fuel usage, transitioning to renewable
energy. Private and public investment is
mobilised into decarbonisation and
abatement technology.
Global temperature continues to
increase, stabilising around .°C above
preindustrial standards by the end of the
century.
Scenario utilises the
SSP – . scenario.
No action is taken to advance climate
policy or reverse current policies. Fossil
fuel consumption continues to grow
until , and as greenhouse gas
emissions continue to rise, so does the
global temperature.
Severe weather events are regular with
significant impact to built environments,
causing significant economic
repercussions.
Within Australia, capital cities are hotter
and drier, with significant increases in
heat waves. Investment in education and
technological development decline, and
economic development is slow. A low
international priority for addressing
environmental concerns leads to strong
environmental degradation in
developing regions.
Globally, CO emissions have nearly
doubled from current levels by , and
by the end of the century, average
temperatures have risen by .°C.
Note.
“SSP” refers to “Shared Socio-economic Pathways” which are climate change scenarios of projected socioeconomic
global changes up to as defined in the IPCC Sixth Assessment Report on Climate Change in
“IPCC” refers to the Intergovernmental Panel on Climate Change (IPCC) which is the United Nations body for assessing
the science related to climate change.
To understand the impact of these scenarios on the portfolio, the Group assessed owned and managed sites in six geographical
locations. These geographies were chosen for assessment due to their economic and reputational significance. All sites located within
the geographical region were included in the modelling.
This scenario analysis assessed the key physical and transition risks likely to impact the Group’s operations and the time horizons
over which they are likely to occur. The high-level key themes remained consistent with the Group’s earlier analysis disclosed in the
Annual Report, with an additional key theme of ‘Resource Efficiency’ now included to reflect the strategic importance of
adapting to a carbon constrained environment.
Potential Impact to EVT
How we’re planning to respond
.
Thredbo
Thredbo is a material contributor to the Group’s
earnings, with the majority of those earnings
currently generated during the winter months. 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. Climate change
may impact on the availability of water, which is
required for snowmaking.
- Investigating and, where appropriate,
implementing resilience measures for the
winter season, which may include investment
in snowmaking technologies and capabilities,
subject to water availability.
- Investing in activities and infrastructure that
can support year-round visitation, for example
the Alpine Coaster which opened in June
.
.
Property
resilience
The Group relies on physical infrastructure to
deliver products and services to customers.
Scenario modelling showed increasing
temperature, extreme heat, water stress, drought,
extreme cold and changing precipitation patterns
have potential to impact all operating regions.
The increasing duration and frequency for
extreme weather events could place aging and
- Monitoring the highest risk assets, from both a
value and climate perspective, to understand
specific climate stressors applicable to
individual sites and adapt accordingly.
- Monitoring potential insurance premium
increases or changes in coverage for assets in
higher-risk areas.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Potential Impact to EVT
How we’re planning to respond
less resilient infrastructure at risk.
.
Resource
efficiency
Under the very low and low carbon scenarios, the
cost of fossil fuels and energy usage is set to
increase rapidly as governments strengthen
carbon pricing mechanisms and policies to
accelerate decarbonisation. The demand for
lower-emission (as compared to current state)
buildings and building materials is also
increasing. This, in conjunction with the global
shift towards sustainable resource use,
necessitates the prudent use of natural resources
and energy.
Older inefficient equipment may lead to higher
energy usage and associated costs. Alternatively,
investment in energy efficiency could support the
achievement of sustainability goals and reduce
operational expenditure.
- Exploring ways to participate in the renewable
energy market, as well as take advantage of
new technologies as they come to market.
- Improving energy efficiency overall to mitigate
exposure to a carbon constrained
environment.
- Evaluating new opportunities considering
their energy profile, updating or augmenting
older infrastructure and investing in new
monitoring systems to improve efficiency.
- Investigating the use of building materials
with lower environmental impacts than
standard building materials due to lower
carbon emissions in manufacturing and/or the
inclusion of recycled or renewable material
when undertaking new developments.
.
Supply Chain
The Group relies on a diverse supply chain and,
under changing climatic conditions and the
increase of severe weather conditions highlighted
in scenario analysis, supply chain disruptions are
likely to become increasingly common. This, in
conjunction with increased prices driven by a
carbon policy may result in reduced availability of
critical commodities, and a higher cost for food
and beverages.
- Using forward planning and appropriate
procurement strategies to mitigate
disruptions and reduce the risk of higher
costs. For example, diverse menus and offers
have allowed the Group to adapt to sudden
supply disruptions and price spikes.
- Continuing to evaluate and respond to the
specific risks facing key supply chains,
allowing the Group to refine sourcing
strategies in the future.
Summary of climate-related risks and opportunities
The four key themes outlined in the table above were synthesised from a more detailed analysis of risks and opportunities with the
potential to affect the Group. Eight risks and five opportunities are outlined in the table below.
Summary of climate-related risks
Risk Category
Time Horizon
Climate-Related Risk
Key Mitigating Actions
Physical –
Chronic
Medium to Long
Term
Physical climate impacts on snowfall and
cold temperatures, such as increasing
temperatures in Thredbo, potentially
limiting periods during which
snowmaking can occur.
- Technology improvements
support snowmaking across a
wider range of weather
conditions.
- Improved climate modelling
enhances understanding of likely
timelines and supports planning
for shifts in tourism seasonality.
Physical –
Chronic
Medium to Long
Term
Physical climate impacts such as
increasing temperature in all regions, and
water stress and drought, impact
agricultural productivity and increases
cost of supply.
- Identification of alternative
suppliers and flexibility in food
and beverage offerings.
Physical – Acute
Medium to Long
Term
Increased frequency and severity of
weather events cause disruptions in the
supply chain. Weather events across
regions are likely to include:
- Water stress and drought (Sydney,
Melbourne, and Perth).
- Changing precipitation patterns
(Melbourne and Auckland).
- Forward planning for seasonal
products and ensuring supply
chain flexibility and diversity.
Physical – Acute
and Chronic
Medium to Long
Term
Increased frequency and severity of
climate impacts on property and plant
availability and operating costs.
Climatic events with a medium to long-
term risk include extreme heat and cold,
river flooding, extreme rainfall flooding,
extreme winds and storms, wildfires,
increasing temperature, water stress, and
drought.
- Completion of physical risk
assessments for key owned
assets to improve understanding
of climate impacts.
- Engagement with hotel owners
and landlords to understand risk
exposure and improve resilience.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Physical and
Transition
Medium Term
Insurance premiums significantly rise
due to perceived higher exposure to
climate-related risks.
Climate risks include extreme heat and
cold, river flooding, extreme rainfall
flooding, extreme winds and storms,
wildfires, increasing temperature, water
stress, and drought, across all operating
regions.
- Property enhancements to
reduce exposure and minimise
impact of weather events.
- Consideration of locations of
operations and insurability based
on long-term climate change
projections.
Transition – Policy
Long Term
Introduction of a carbon price raises cost
of food and beverage products.
- Improved diversity of local
product suppliers.
- Engagement with suppliers to
identify lower-carbon
alternatives as compared to
existing food and beverage
products sourced by EVT.
Transition – Policy
Long Term
Introduction of a carbon price raises the
cost of energy.
- Continued exploration of
renewable energy procurement
and implementation of energy
efficiency measures.
Transition – Policy
Long Term
Introduction of a carbon price and/or
corporate carbon budget decreases
frequency of air travel and/or raises the
cost of travel, specifically air-travel,
leading to changes in consumer
behaviour.
- Longer stays, options for
customers to reduce
environmental impact of stay in
destination hotel.
Summary of climate-related opportunities
Opportunity
Category
Time Horizon
Climate-Related Opportunity
Key Actions
Transition –
Technology,
Market and
Reputational
Medium Term
Development and refurbishment of our
properties provides opportunities for
more efficient design and consumption.
This may include implementing energy
efficient lighting, HVAC systems,
insulation and building controls to
enhance energy efficiency in hotels.
- Consideration of climate-related
opportunities for new
developments.
- Engagement with hotel owners
and landlords during design and
development stage of build and
refurbishments to implement more
energy-efficient systems.
Transition –
Market and
Reputational
Short to
Medium Term
Increased demand for lower
environmental impact products provides
opportunity to position the Group ahead
of its competitors.
- Continued exploration of lower
environmental impact products
and services.
Transitional –
Market and
Reputational
Short to
Medium Term
Effective implementation of adaptation
measures and increased efficiency of
property can increase property valuation.
Adaptation measures may include
renewable energy measures, such as
solar panelling, to reduce a reliance upon
fossil fuels.
- Continued monitoring of asset
resilience to climate impacts and
enhancement of assets to improve
efficiency.
Physical –
Chronic
Medium to Long
Term
Increased demand for Thredbo in
summer months due to its comparatively
cooler climate.
- Continued promotion of summer
experiences at Thredbo and
development of mountain bike
trails and year-round experiences.
Transition –
Market &
Reputational
Medium Term
Improved waste management practises
can support an enhanced market
position.
- Continued engagement with
landlords and other stakeholders
to improve waste management
strategies.
- Engage with suppliers to increase
recycled and upcycled offerings.
- Continue to implement findings of
FY waste audit; improve
recycling and engage customers
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Opportunity
Category
Time Horizon
Climate-Related Opportunity
Key Actions
and internal team in that process;
and engage with suppliers to
reduce packaging across the
Group.
The Group will continue to monitor climate-related risks and opportunities periodically to assess whether there has been any change
in the materiality assessment for these risks and opportunities.
Next steps
In line with a gap analysis against IFRS S standards completed in FY, the Group will continue to prepare and disclose in
accordance with the IFRS S recommendations and work towards alignment with the Australian Government’s draft mandatory ASRS.
This will include further work to:
quantify the potential financial impact of material risks and opportunities identified; and
deepen the Group’s understanding of the impact of a changing climate on material assets over the short, medium, and long
term time horizons.
In addition, the Group has begun completing a gap analysis against the Taskforce on Nature-Related Financial Disclosures (“TNFD”)
and aims to develop a roadmap in FY to align our future disclosures to this framework.
Goals and Metrics
Organisational boundary
EVT has selected the operational control consolidation method to determine its emissions boundary and in line with the requirements
of the GHG Corporate Value Chain (Scope ) Accounting and Reporting Standard ("GHG Scope Corporate Standard”), this has been
applied consistently across the portfolio and across Scopes , and .
Definition of scopes:
-
Scope covers direct greenhouse gas emissions (“GHG”) from the burning of fuels and fleet emissions;
-
Scope covers the indirect emissions from the production of energy primarily electricity purchased; and
-
Scope covers the indirect emissions due to upstream and downstream activities required for the Group’s direct activity.
EVT will consider reviewing and resetting the Group’s base year inventory and goals where:
-
there are changes in the Group structure such as acquisitions, divestments and mergers; and
-
emissions from aspects of Group operations which currently sit outside the reporting boundary change significantly or are
required to be included due to regulatory change or emissions calculation methodology change.
Carbon Emissions – Scope and
Set out below is a summary of the Group’s Scope and . In FY, and in preparation for future mandatory reporting requirements,
EVT has adopted dual reporting of Scope emissions:
-
Location-based emissions are calculated using the average emissions intensity of the grid on which the energy
consumption occurs
-
Market-based emissions are calculated using supplier-specific data about the energy purchased
The Group’s total Scope and total Scope carbon emissions for the year ended June have been subject to limited
assurance procedures performed by KPMG.
Scope and carbon emissions data has been compiled based on information provided by the Group’s energy retailers and other
relevant data sources. In some cases, careful estimations have been used for certain locations and periods where source data could
not be obtained prior to the finalisation of the Directors’ Report.
Total emissions (tCOe)
Scope
Natural gas
,
Stationary fuels
,
Transport fuels
Other
Scope (location-based) electricity
,
Scope (market-based) electricity
,
By geographic location (Scope and Scope location-based):
Australia
,
New Zealand
,
Germany
,
Singapore
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Note: The National Greenhouse and Energy Reporting (NGER) methodology has been applied across all regions to maintain
consistency with region or country-specific emissions factors applied as required. Emissions factor sources include the Australian
National Greenhouse Accounts Factors, New Zealand Ministry for the Environment: Measuring emissions: A guide for organisations
and the International Energy Agency – Emissions Factors .
The chart below illustrates the Group’s total Scope and location-based Scope carbon emissions over the past six years:
Boundary setting – Scope
In FY, the Group completed a Scope boundary assessment and applied the following considerations in establishing the Scope
boundary:
.
Organisational Boundary – in line with the guidance of the GHG Scope Corporate Standard, and following a review of
relevant industry peers, the Group confirmed the application of an operational control consolidation method for Scope
categories.
.
GHG Scope Corporate Standard and Guidance – the GHG Scope Corporate Standard provides a global foundation for
defining and reporting Scope emissions with high level boundary descriptions for upstream and downstream sources of
emissions spanning categories. All categories were reviewed against the principles of the GHG Scope Corporate
Standard to identify nine applicable categories which are materially relevant to the Group.
Applicable categories:
Category Purchased Goods and Services
Category Capital Goods
Category Fuel and Energy related activities
Category Upstream transportation and distribution
Category Waste generated in operations
Category Business Travel
Category Employee Commuting
Category End of life treatment of sold products
Category Franchises
By division (Scope and Scope location-based):
Cinemas
,
Owned hotels
,
Managed hotels
,
Thredbo
,
Other
,
Scope + total emissions (location-based)
,
Scope + total emissions (market-based)
,
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Not applicable categories
Category Upstream leased assets: emissions from the operation of leased assets are included in the
Group’s Scope and inventory.
Category Downstream transportation and distribution: the Group does not manufacture products for
onward sale and distribution.
Category Processing of sold products: the Group does not manufacture products for onward sale
and distribution.
Category Use of sold products: after evaluation of the very small number of physical products sold
(for example, D glasses in cinemas), it was determined that emissions from this category are not
material.
Category Downstream leased assets: Emissions from downstream leased assets were assessed as
not material
Category Investments: No material investments requiring consideration.
.
Adjacent sector-specific guidelines and standards – the ‘Net Zero Methodology for Hotels’ sector specific guidelines
produced by the World Sustainable Hospitality Alliance were reviewed to identify any additional boundary definitions which
could be considered when applying GHG Scope Corporate Standard emissions reporting categories.
.
Science-based Target Initiative (“SBTi”) – the SBTi’s ‘Corporate Net Zero Standard’ near-term target Scope threshold
requirements were also considered in setting the Scope boundary.
In relation to Category , it should be noted that emissions resulting from capital goods acquired or purchased by hotel owners for
hotels managed by the Group do not fall within EVT’s Scope boundary.
Emissions relating to the Group’s joint operations include:
% of emissions in joint venture locations which are under the Group’s operational control; and
no emissions associated with joint venture locations which are operated by a joint venture partner and consequently
are not under the operational control of the Group.
The Group will periodically review its Scope reporting boundary and remains open to adapting its approach as further alignment
and practice relating to identifying and measuring Scope emissions evolve.
Carbon emissions – Scope
Following completion of the Scope boundary assessment, the Group has modelled its Scope emissions on an FY base year.
Scope emissions estimates have been derived from calculations based on purchasing volumes (spend-based approach) and
assessed against the boundary setting requirements of the GHG Scope Corporate Standard and the SBTi. EVT’s FY Scope
emissions baseline is provided below and compared to FY Scope and emissions data to provide context in relation to SBTi
target-setting. An estimate of the Group’s FY Scope emissions is currently in development.
FY Scope estimates (tCOe)
By geographic location:
Australia
,
New Zealand
,
Germany
,
By division:
Cinemas
,
Hotels (both owned and managed)
,
Thredbo
,
Other
,
By category:
Cat. Purchased Goods and Services
,
Cat. Capital Goods
,
Cat. Fuel and energy related activities
,
Cat. Upstream transportation and distribution
,
Cat. Waste generated in operations
,
Cat. Business travel
,
Cat. Employee commuting
,
Cat. End of life treatment of sold products
Cat. Franchises
,
Total FY Scope
,
FY Scope
,
FY Scope
,
FY Scope
,
Total FY Emissions
,
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
EVT’s FY total emissions profile
The chart below illustrates the composition of EVT’s carbon emissions in FY, including the major Scope categories that are
relevant to the Group.
EVT’s emissions reduction goals
Our decarbonisation goals set out our ambition to seek a carbon reduction outcome for which a pathway has been identified and for
which efforts will be made in the timeframe identified but that is subject to significant uncertainties, dependencies and assumptions
that are outside the Group’s control. These uncertainties, dependencies and assumptions include:
-
decarbonisation of the electricity grid in Australia, New Zealand and Germany progressing in line with relevant government
targets;
-
progress of EVT’s major suppliers with their own decarbonisation ;
-
the commercial availability of lower environmental impact building materials; and
-
the availability of sufficient, commercially viable waste disposal and diversion from landfill services across the Group’s
portfolio.
In FY, external consultants were engaged to undertake the technical work to develop near term emissions reduction goals in line
with the SBTi methodology and accompanied by a decarbonisation roadmap for the Group.
Using the absolute contraction approach, the Group’s emissions reduction goals are:
a % reduction in operational Scope and emissions by (. degree warming scenario) against an FY
baseline; and
a % reduction in Scope emissions by (well below degree warming scenario) against an FY baseline.
Emissions Reduction Goals
Key initiatives
Scope and – % reduction by
.
% renewable energy in owned hotels by .
.
Energy efficiency improvement measures.
Scope – % reduction by
.
Prioritising suppliers with emissions reduction goals.
.
Integrating building materials with lower environmental impacts into the
Group’s refurbishment and development activities.
.
Reducing waste and increasing diversion from landfill rates including
targeting paperless operations.
.
Empowering our team to make choices to reduce their emissions footprint
through sustainable commuting and business travel.
.
Improving data to support accuracy of Scope emission modelling.
Inclusion of sustainability performance metrics in the Group’s remuneration framework
Information regarding the inclusion of sustainability in the Group’s remuneration framework has been included in the remuneration
report on pages to .
Scope 1 Emissions
4%
Scope 2 Emissions
25%
Purchased goods and
services
36%
Capital goods
17%
Fuel and energy related
activities
4%
Waste generated in
operations
11%
Employee commuting
2%
Other categories
1%
Scope 3 Emissions
71%
| 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.
The Group has 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 improved 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:
30 June 2024
30 June 2023
Female
Male
Female
Male
Board
43%
57%
43%
57%
Senior executives
41%
59%
38%
62%
All Group employees
51%
49%
51%
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.
In the prior year, an external review was conducted of the Group’s WHS management system against the requirements of ISO
Occupational Health and Safety Management Systems. The review recognised the enhancements made since the previous review
conducted in .
All workplace injuries and other incidents are reported in the Group’s incident reporting system and analysed and where appropriate
investigated by the Group’s risk management team and / or People & Culture team. The Group’s risk management team, 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 paid or declared by the Company since the end of the previous year were:
Per share
cents
Total
amount
$’
Date of payment
Tax rate for
franking
credit
Percentage
franked
Declared and paid during the year
Final dividend
,
September
%
%
Interim dividend
,
March
%
%
,
Declared after the end of the year
Final dividend
,
September
%
%
,
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
Ordinary shares held directly
Ordinary shares held by
companies in which a director
has a beneficial interest(a)
Performance rights held directly
AG Rydge
,,
,,
—
BD Chenoweth
—
,
—
PR Coates
—
,
—
VA Davies
—
,
—
DC Grant
,
—
—
JM Hastings
,
—
,
JB Webster
—
,
—
(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 JB Webster, 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
At June , there are no officers who were previously partners of the audit firm. Mrs PM Mann (resigned February ) 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 by the Board for each senior executive 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 ensure 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
performance measures. 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 in the year ended June . The Board has
resolved to increase the maximum LTI opportunity for the CEO to % of fixed annual remuneration from July to ensure a
balance between fixed and variable remuneration which is appropriate and consistent with the Company’s peers. 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 , and the remaining % of the grand 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.
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.
No amount is payable for the grant or vesting or exercise of rights as they form part of executives’ remuneration.
These awards were 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:
Included in
remuneration(a)
$
Awarded in year
Forfeited(b)
CEO and Managing Director
JM Hastings(c)
,,
.%
.%
Other executive KMP
GC Dean
,
.%
.%
MR Duff
,
.%
.%
(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.
Category
Criteria
Achievement
Group financial
objective
Normalised EBITDA targets
determined by the Board
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.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Category
Criteria
Achievement
Capital management
Ensuring that a Board-approved
refinancing process is completed by
June and continuing to
ensure that the Group has access to
sufficient funding for its operations
and the Board-approved capital plan
Achieved. The refinancing process was completed in May ,
ensuring access to sufficient funding for the Group’s operations
and the Board-approved capital plan.
Pricing
Continue to develop smarter pricing
strategies across all divisions
reflected in yield growth
Achieved. Yield growth has continued to be achieved across the
Group.
Major property
developments
Achieve the key milestones for the
major property developments at
- George Street and
George Street
Achieved. Key milestones were achieved for the Group’s major
property developments.
Priority asset upgrade
program
Progress the Group’s priority asset
upgrade projects to protect future
earnings
Achieved. Key milestones were achieved for the Group’s priority
asset upgrade program including the completion of upgrades at
QT Gold Coast and Rydges Melbourne, whilst planning continued
for a future upgrade of Rydges Queenstown.
EVT Launch
Successfully launch EVT internally
and externally via the new evt.com
website, to support a strengthening
in the profile of the Group
Achieved. A change of the Company’s name to EVT Limited was
approved by shareholders at the Annual General Meeting,
the Group’s website was relaunched, and the Group’s first
Investor Day was held in November .
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, representing
an improvement on the previous survey.
Environmental
sustainability
Develop the Group sustainability
plan and deliver on agreed goals for
FY
Achieved. The Group’s sustainability plan was developed in FY
and progress was made against the Group’s seven sustainability
goals.
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 .
LTI OUTCOMES IN THE YEAR ENDED JUNE
In October 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 comprised 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 achieved the EPS growth hurdle in full.
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
Termination by
the executive
Termination by the Group
Expiry date of
contract
GC Dean
MR Duff
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.
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.
Not applicable,
rolling contracts.
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
July to June
Peter Coates
Lead independent and non-executive director
July to June
Valerie Davies
Independent non-executive director
July to June
David Grant
Independent non-executive director
July to June
Patria Mann
Independent non-executive director
July to February
Jenelle Webster
Independent non-executive director
March to June
Executive director
Jane Hastings
CEO
July to June
Other executive KMP
Gregory Dean
Director Finance and Accounting, Company Secretary
July to June
Mathew Duff
Director Commercial
July to June
All executive KMP were employed by EVT Limited.
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
STATUTORY REMUNERATION DISCLOSURES FOR DIRECTORS AND EXECUTIVES
Details of the nature and amount of each major element of the remuneration of each director of the Company and other KMP of the Group are set out below:
Short term
Post-
employment
Other long term
Share-based
Total
Proportion of
remuneration
performance
related
Cash salary
and fees(a)
$
STI
$
Insurance
premiums(b)
$
Total
short term
$
Superannuation
contributions
$
Accrued annual
leave
$
Accrued long
service leave
$
LTI – at risk(c)
$
Recognition and
Retention
Incentive(d)
$
$
DIRECTORS
Non-executive
AG Rydge
,
–
–
,
,
–
–
–
–
,
–
,
–
–
,
,
–
–
–
–
,
–
BD Chenoweth(e)
,
–
–
,
,
–
–
–
–
,
–
,
–
–
,
–
–
–
–
–
,
–
PR Coates
,
–
–
,
,
–
–
–
–
,
–
,
–
–
,
,
–
–
–
–
,
–
VA Davies
,
–
–
,
,
–
–
–
–
,
–
,
–
–
,
,
–
–
–
–
,
–
DC Grant
,
–
–
,
,
–
–
–
–
,
–
,
–
–
,
,
–
–
–
–
,
–
PM Mann
,
–
–
,
,
–
–
–
–
,
–
,
–
–
,
,
–
–
–
–
,
–
JB Webster(f)
,
–
–
,
,
–
–
–
–
,
–
–
–
–
–
–
–
–
–
–
–
–
Executive
JM Hastings
,,
,,
,
,,
,
,
,
,,
,
,,
.%
,,
,,
,
,,
,
()
,
,,
,
,,
.%
| EVT LIMITED ANNUAL REPORT
DIRECTORS’ REPORT
Short term
Post-
employment
Other long term
Share-based
Total
Proportion of
remuneration
performance
related
Cash salary
and fees(a)
$
STI
$
Insurance
premiums(b)
$
Total
short term
$
Superannuation
contributions
$
Accrued annual
leave
$
Accrued long
service leave
$
LTI – at risk(c)
$
Recognition and
Retention
Incentive(d)
$
$
OTHER EXECUTIVE KMP
GC Dean
,
,
,
,,
,
(,)
,
,
,
,,
.%
,
,
,
,,
,
,
,
,
,
,,
.%
MR Duff
,
,
,
,,
,
(,)
,
,
,
,,
.%
,
,
,
,,
,
,
,
,
,
,,
.%
(a)
Cash salary and fees includes dividend equivalent payments for vested rights issued to JM Hastings, GC Dean and MR Duff pursuant to the Recognition and Retention Incentive award. The Recognition and Retention Incentive award
terms are summarised on page .
(b)
Amounts disclosed in the table above exclude insurance premiums paid by the Group in respect of directors’ and officers’ liability insurance contracts as the contracts do not specify premiums paid in respect of individual directors and
officers. Information relating to the insurance contracts is set out within the Directors’ Report on page . The amounts disclosed in the table above relate to premiums paid by the Group for salary continuance insurance.
(c)
Amounts disclosed in the table above for remuneration relating to performance rights have been determined in accordance with the requirements of AASB Share-based Payment. AASB requires the measurement of the fair value of
performance rights at the grant date (as defined in AASB ) and then to have that value apportioned in equal amounts over the period from grant date (as defined in AASB ) to vesting date. Details of performance rights on issue are set
out within the Remuneration Report and further details on the terms and conditions of these performance rights are set out in Note . to the financial statements.
(d)
The Recognition and Retention Incentive award terms are summarised on page .
(e)
BD Chenoweth was appointed a director of the Company on December .
(f)
JB Webster was appointed a director of the Company on March .
| EVT LIMITED ANNUAL REPORT
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:
Fair value(a)
Number
Grant date(b)
Vested during
the year
Forfeited during
the year
Year in which
the grant vests
Performance
right – EPS
$
Performance
right – TSR(c)
$
CEO
JM Hastings
,(d)
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
.
.
(a)
The fair value of the performance rights calculated at the accounting grant date (as defined in AASB Share-based Payment), estimated using a risk-neutral model
for those rights that have EPS hurdles and a Monte Carlo simulation model for those rights that have TSR hurdles.
(b)
The grant date in the table above is the grant date for legal purposes, being the date on which the performance rights were allocated to the executive following the
offer and acceptance of the relevant terms associated with the offer.
(c)
Relative total shareholder return (“TSR”) was a performance condition applicable to certain prior year grants.
(d)
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
,(d)
Sep
–
,
–
Jun
.
,(c)
Sep
,
–
–
Jun
.
,(d)
Sep
,
–
–
Jun
.
Other executive KMP
GC Dean
,
Sep
–
,
–
Jun
.
,
Sep
,
–
–
Jun
.
,
Sep
,
–
–
Jun
.
MR Duff
,
Sep
–
,
–
Jun
.
,
Sep
,
–
–
Jun
.
,
Sep
,
–
–
Jun
.
(a)
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 .
(b)
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.
(c)
Granted pursuant to shareholder approval under ASX Listing Rule . obtained at the AGM.
(d)
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:
Held at
the beginning of
the year
Granted
Exercised
Forfeited
Held at
the end of
the year(a)
CEO
JM Hastings
,
,(b)
(,)
(,)
,
,
,
(,)
(,)
,
Other executive KMP
GC Dean
,
,(b)
(,)
(,)
,
,
,
(,)
(,)
,
MR Duff
,
,(b)
(,)
(,)
,
,
,
(,)
(,)
,
(a)
As at the end of the year, the number of rights which are both vested and exercisable held by JM Hastings, GC Dean and MR Duff were ,, , and nil
respectively. 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.
(b)
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 (as defined in AASB ).
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:
Held at
the beginning of
the year
Purchases
Received on
vesting of rights
Sales
Other
Held at
the end of the
year(a)
Directors
AG Rydge (Chairman)
,,
–
–
–
–
,,
,,
–
–
–
–
,,
BD Chenoweth
–
,
–
–
–
,
–
–
–
–
–
–
PR Coates
,
–
–
–
–
,
,
–
–
–
–
,
VA Davies
,
–
–
–
–
,
,
–
–
–
–
,
DC Grant
,
,
–
–
–
,
,
,
–
–
–
,
PM Mann(b)
,
–
–
–
(,)
–
,
,
–
–
–
,
JB Webster(c)
–
–
–
–
,
,
–
–
–
–
–
–
JM Hastings
,
–
,
(,)
–
,
(CEO)
,
–
,
–
–
,
Other KMP
GC Dean
,
–
,
–
–
,
,
–
,
–
–
,
MR Duff
,
–
,
–
–
,
,
–
,
–
–
,
(a)
No shares were held nominally by any member of the KMP as at the end of the reporting period.
(b)
PM Mann resigned as a director of the Company on February .
(c)
JB Webster was appointed a director of the Company on March .
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
Consolidated Entity Disclosure Statement
Directors’ Declaration
Independent Auditor’s Report
Independent Limited Assurance Report (Scope and emissions)
| EVT LIMITED ANNUAL REPORT
FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
STATEMENT OF FINANCIAL POSITION AS AT JUNE
Note
$’
$’
ASSETS
Current assets
Cash and cash equivalents
.
,
,
Trade and other receivables
.
,
,
Current tax receivables
–
Inventories
.
,
,
Prepayments and other current assets
,
,
Assets held for sale
.
,
,
Total current assets
,
,
Non-current assets
Trade and other receivables
.
,
,
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
.
,
,
Total non-current liabilities
,,
,,
Total liabilities
,,
,,
Net assets
,
,,
EQUITY
Share capital
.
,
,
Reserves
.
,
,
Retained earnings
,
,
Total equity
,
,,
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
Note
$’
$’
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 losses
Share of net loss from equity accounted associates and joint ventures
.
()
()
Profit before tax
,
,
Income tax expense
.
(,)
(,)
Profit for the year
,
,
Cents
Cents
Earnings per share
Basic earnings per share
.
.
.
Diluted earnings per share
.
.
.
The Income Statement is to be read in conjunction with the accompanying notes.
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE
The Statement of Comprehensive Income is to be read in conjunction with the accompanying notes.
$’
$’
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
,
,
| EVT LIMITED ANNUAL REPORT
FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE
Share capital
$’000
Reserves
$’000
Retained
earnings
$’000
Total
equity
$’000
Balance at 1 July 2023
219,126
89,628
701,074
1,009,828
Profit for the year
–
–
4,816
4,816
Other comprehensive expense
Foreign currency translation differences for foreign operations – net of tax
–
(2,327)
–
(2,327)
Total other comprehensive expense recognised directly in equity
–
(2,327)
–
(2,327)
Total comprehensive income
–
(2,327)
4,816
2,489
Employee share-based payments expense – net of tax
–
6,884
–
6,884
Dividends paid
–
–
(55,056)
(55,056)
Total transactions with owners
–
6,884
(55,056)
(48,172)
Balance at 30 June 2024
219,126
94,185
650,834
964,145
Balance at 1 July 2022
219,126
65,155
636,490
920,771
Profit for the year
–
–
106,529
106,529
Other comprehensive expense
Foreign currency translation differences for foreign operations – net of tax
–
15,477
–
15,477
Total other comprehensive expense recognised directly in equity
–
15,477
–
15,477
Total comprehensive income
–
15,477
106,529
122,006
Employee share-based payments expense – net of tax
–
8,996
–
8,996
Dividends paid
–
–
(41,945)
(41,945)
Total transactions with owners
–
8,996
(41,945)
(32,949)
Balance at 30 June 2023
219,126
89,628
701,074
1,009,828
The Statement of Changes in Equity is to be read in conjunction with the accompanying notes.
| EVT LIMITED ANNUAL REPORT
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
(,)
(,)
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
(,)
(,)
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
(,)
(,)
Increase/(decrease) in loans from other entities
()
Transaction costs related to borrowings
()
(,)
Payments of lease liabilities
(,)
(,)
Dividends paid
(,)
(,)
Net cash used by financing activities
(,)
(,)
Net (decrease)/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.
| 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") is a company domiciled in Australia. 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
-
Level : inputs for the asset or liability that are not based on observable market data (unobservable inputs).
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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).
Going concern basis of accounting
The going concern identification and assessment processes include the review and update of key estimates and judgements used
and applied for these financial statements, including:
-
Impairment;
-
Provision for expected credit losses; and
-
Valuations of property plant and equipment.
The Group continues to maintain a conservative approach to capital, funding and liquidity that should allow the Group to respond
quickly to current, or future emerging, economic environments. The Group considers that, based on current results and trends, it
expects to maintain sufficient liquidity for the foreseeable future.
The Group has reported a net current asset deficiency of $. million at June ( June : $. million). This
deficiency is expected to be supported by future operating cash flows, available liquidity from cash reserves totalling $. million
( June : $. million) and undrawn debt facilities of $. million ( June : $. million).
.
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 the following amendments to the accounting standards. This change did not have a material impact on the
Group's accounting policies, nor did it require any restatement of the financial statements.
AASB - Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of
Accounting Estimates
AASB - Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from
a Single Transaction
AASB - Amendments to Australian Accounting Standards – Editorial Corrections and Repeal of Superseded and
Redundant Standards
AASB - Amendments to Australian Account ng Standards – International Tax Reform – Pillar Two Model Rules
New and revised Standards issued but not yet effective
A number of accounting standards, amendments to accounting standards and Interpretations have been issued and will be
applicable in future financial periods. These accounting standards remain subject to ongoing assessment, however no significant
impacts have been identified to date. These standards have not been applied in the preparation of these Financial Statements.
Applicable to the Group for the year ending June :
AASB -, AASB - and AASB - Amendments to Australian Accounting Standards – Classification of
Liabilities as Current or Non-current
Amendments to AASB Presentation of Financial Statements including non-current liabilities with covenants
AASB - Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback
AASB - Amendments to Australian Accounting Standards – Supplier Finance Arrangements
Applicable to the Group for the year ending June or after:
AASB -, AASB -, AASB - and AASB - Amendments to Australian Accounting Standards
Amendments to AASB Consolidated Financial Statements and AASB Investments in Associates and Joint Ventures
and Editorial Corrections
AASB - Amendments to Australian Accounting Standards – Lack of Exchangeability
AASB Presentation and Disclosure in Financing Statements
| 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 contracts 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
Nature and timing of satisfaction of
performance obligations, including
significant payment terms
Revenue recognition policies
Box office
Customers purchase a ticket to see a film
and the customer obtains control of the
service when they see the film. Tickets
may be purchased by customers in
advance or on the day of the film
screening.
Customers that are members of the
Group’s
cinema
loyalty
program
(Cinebuzz) earn points when purchasing
tickets which can be used to purchase
services from the Group in the future.
Box office ticket revenue is recognised on the date the
customer views the relevant film.
When tickets are sold in advance, the revenue is
recorded as deferred revenue in the Statement of
Financial Position until the date of the film screening.
When gift cards and vouchers are sold to customers, the
revenue is recognised as deferred revenue in the
Statement of Financial Position until the customer uses
the gift card or voucher to purchase goods or services
from the Group. Revenue from gift cards and vouchers
that will not be redeemed by customers (“breakage”) is
estimated and recognised as revenue based on
historical patterns of redemption by customers.
When customers earn loyalty points, box office revenue
is allocated proportionally based on the relative stand-
alone selling prices of the ticket and the loyalty points
earned. The stand-alone selling price of the loyalty
points is determined with reference to the average
admission price and expected loyalty point breakage.
Loyalty point revenue is recognised as deferred revenue
in the Statement of Financial Position until the points
are redeemed or expire. Breakage is estimated based on
historical patterns of redemptions by customers.
Commission and other direct expenses incurred in
relation to the sale of gift cards are recognised as an
asset until the gift cards are redeemed or expire.
Food and beverage
Customers obtain control of food and
beverage at the point of sale.
Revenue is recognised at the point of sale.
Hotel rooms
Customers
obtain
control
of
the
accommodation
service
when
they
occupy the room.
Revenue is recognised when the room is occupied.
When rooms are sold in advance, the revenue is
recorded as deferred revenue in the Statement of
Financial Position until the date the customer occupies
the room.
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Type of product/ service
Nature and timing of satisfaction of
performance obligations, including
significant payment terms
Revenue recognition policies
Hotel rooms (continued)
When customers earn hotel loyalty points, 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. Points are
awarded to loyalty members who stay on eligible rates
and is also dependent upon their relevant tier or loyalty
status.
Hotel management and
service agreements
Customers, being hotel owners, obtain
control of the management service as it is
provided over the life of the management
or service agreement.
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.
Thredbo lift tickets
Customers obtain control of the lift
service on the day or other period when
the lift ticket is valid for use.
Revenue is recognised as customers use the service.
For season and other passes purchased in advance,
revenue is recorded as deferred revenue in the
Statement of Financial Position initially and is then
recognised over the period that the pass is valid.
Thredbo ski school
Customers obtain control of the ski
school service when the lesson is
attended.
Revenue is recognised at the time of the lesson or other
activity. For products purchased in advance, revenue is
recorded as deferred revenue in the Statement of
Financial Position initially and is then recognised when
the lesson is attended.
Rental revenue
Customers, being lessees, obtain relevant
benefits of the rental premises.
Rental revenue consists of rentals from investment
properties and sub-lease rentals and is billed monthly.
Rentals received under operating leases and initial
direct costs are recognised on a straight-line basis over
the term of the lease.
Details of the Group’s revenue have been provided below:
$’
$’
Revenue from contracts with customers (see below)
,,
,,
Other revenue
Rental revenue
,
,
Finance revenue
,
,
Dividends
Sundry
,
,
Total other 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
–
Total other income
,
,
Total revenue and other income
,,
,,
(a)
Government wage subsidies and other compensation for businesses that were impacted by the COVID- pandemic. Grants provided compensation for the
Group relating to expenses incurred and were recognised in profit or loss as other income on a systematic basis in the periods in which the expenses were
recognised, unless the conditions for receiving the grant were met after the related expenses had been recognised. In this case, the grant was recognised when it
became receivable.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Entertainment
Australia and
New Zealand
Germany
Hotels and
Resorts
Thredbo Alpine
Resort
Property and
Other
Corporate and
Unallocated
Consolidated
Disaggregation of revenue
$’
$’
$’
$’
$’
$’
$’
Major products/service lines
Box office
,
,
–
–
–
–
,
Food and beverage
,
,
,
,
–
–
,
Hotel rooms
–
–
,
,
–
–
,
Management and service agreements
,
,
–
–
–
,
Thredbo lift tickets
–
–
–
,
–
–
,
Other revenue from contracts with customers
,
,
,
,
,
–
,
Revenue from contracts with customers
,
,
,
,
,
–
,,
Rental revenue
,
,
,
,
–
,
Government wage subsidies and other compensation
–
–
–
–
–
–
–
Finance revenue
–
–
–
–
–
,
,
Dividends
–
–
–
–
–
Insurance Proceeds
,
–
–
–
–
–
,
Increase in fair value of investment property
–
–
–
–
–
–
–
Sundry
–
,
–
,
Other revenue and other income
,
,
,
,
,
,
,
Total revenue and other income before individually significant items
,
,
,
,
,
,
,,
Individually significant items – other income
,
–
–
–
–
–
,
Total revenue and other income
,
,
,
,
,
,
,,
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Entertainment
Australia and
New Zealand
Germany
Hotels and
Resorts
Thredbo Alpine
Resort
Property and
Other
Corporate and
Unallocated
Consolidated
Disaggregation of revenue
$’
$’
$’
$’
$’
$’
$’
Major products/service lines
Box office
,
,
–
–
–
–
,
Food and beverage
,
,
,
,
–
–
,
Hotel rooms
–
–
,
,
–
–
,
Management and service agreements
,
,
–
–
–
,
Thredbo lift tickets
–
–
–
,
–
–
,
Other revenue from contracts with customers
,
,
,
,
,
–
,
Revenue from contracts with customers
,
,
,
,
,
–
,,
Rental revenue
–
,
,
,
,
–
,
Government wage subsidies and other compensation
,
–
–
–
,
Finance revenue
–
–
–
–
–
,
,
Dividends
–
–
–
–
–
Increase in fair value of investment property
–
–
–
–
–
Sundry
–
,
–
,
Other revenue and other income
,
,
,
,
,
,
Total revenue and other income before individually significant items
,
,
,
,
,
,
,,
Individually significant items – other income
,
–
,
–
–
,
,
Total revenue and other income
,
,
,
,
,
,
,,
| EVT LIMITED ANNUAL REPORT
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 mainly comprise interest bearing loans and borrowings
and borrowing costs, interest income, corporate head office assets and 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.
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, New Zealand and Singapore.
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
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Entertainment
June
Australia and
New Zealand
Germany
Hotels
Thredbo
Property
Total
segments
Corporate
Individually
significant
items
Unallocated
and tax
Consolidated
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Revenue and other income
External segment revenue
,
,
,
,
,
,,
–
–
,,
Other income – external
,
–
–
–
,
–
,
–
,
Finance revenue
–
–
–
–
–
–
–
–
,
,
Revenue and other income
,
,
,
,
,
,,
,
,
,,
Result
Segment result
,
,
,
,
,
,
(,)
(,)
–
,
Net (loss)/profit of equity accounted investees
()
()
–
–
–
()
–
–
–
()
EBITDA*
,
,
,
,
,
,
(,)
(,)
–
,
Depreciation and amortisation
(,)
(,)
(,)
(,)
(,)
(,)
(,)
–
–
(,)
Impairment charge
–
–
–
–
–
–
–
–
–
–
Profit/(loss) before interest and income tax expense
,
,
,
,
,
,
(,)
(,)
–
,
Finance costs
(,)
(,)
(,)
–
–
(,)
–
–
(,)
(,)
Finance revenue
–
–
–
–
–
–
–
–
,
,
Profit/(loss) before tax
,
(,)
,
,
,
,
(,)
(,)
(,)
,
Income tax expense
–
–
–
–
–
–
–
(,)
(,)
(,)
Net profit/(loss)
,
(,)
,
,
,
,
(,)
(,)
(,)
,
Assets
Reportable segment assets (excluding right-of use assets)
,
,
,
,
,
,,
–
–
,
,,
Right-of-use assets
,
,
,
–
–
,
–
–
–
,
Equity accounted investments
,
,
–
–
–
,
–
–
–
,
Deferred tax assets
–
–
–
–
–
–
–
–
,
,
Total assets
,
,
,
,
,
,,
–
–
,
,,
Liabilities
Reportable segment liabilities (excluding lease liabilities)
,
,
,
,
–
,
–
–
,
,
Lease liabilities
,
,
,
–
–
,
–
–
–
,
Deferred tax liabilities
–
–
–
–
–
–
–
–
,
,
Total liabilities
,
,
,
,
–
,,
–
–
,
,,
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Entertainment
June
Australia and
New Zealand
Germany
Hotels
Thredbo
Property
Total
segments
Corporate
Individually
significant
items
Unallocated
and tax
Consolidated
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Acquisition of non-current assets
,
,
,
,
,
,
–
–
,
Reconciliation of adjustments AASB Leases
Reported EBITDA (including AASB Leases)*
,
,
,
,
,
,
(,)
(,)
–
,
Less: Occupancy costs
(,)
(,)
(,)
–
–
(,)
–
–
–
(,)
Adjusted EBITDA (excluding AASB Leases)*
,
,
,
,
,
,
(,)
(,)
–
,
Result impacts arising from AASB Leases
Occupancy costs
,
,
,
–
–
,
–
–
–
,
Amortisation and impairments
(,)
(,)
(,)
–
–
(,)
–
–
–
(,)
,
,
,
–
–
,
–
–
–
,
Finance costs
(,)
(,)
(,)
–
–
(,)
–
–
–
(,)
Income tax credit/(expense)**
()
–
–
()
–
–
–
()
,
()
()
–
–
–
–
–
* EBITDA is profit before net interest, income tax, depreciation and amortisation.
** The tax impact for AASB and the operations of the Group are reported as an unallocated impact.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Entertainment
June
Australia and
New Zealand
Germany
Hotels
Thredbo
Property
Total
segments
Corporate
Individually
significant
items
Unallocated
and tax
Consolidated
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Revenue and other income
External segment revenue
,
,
,
,
,
,,
–
–
,,
Other income – external
,
,
,
–
,
Finance revenue
–
–
–
–
–
–
–
–
,
,
Revenue and other income
,
,
,
,
,
,,
,
,
,,
Result
Segment result
,
,
,
,
,
,
(,)
,
–
,
Net (loss)/profit of equity accounted investees
()
–
–
–
()
–
–
–
()
EBITDA*
,
,
,
,
,
,
(,)
,
–
,
Depreciation and amortisation
(,)
(,)
(,)
(,)
(,)
(,)
(,)
–
–
(,)
Impairment charge
–
–
–
–
–
–
–
(,)
–
(,)
Profit/(loss) before interest and income tax expense
,
,
,
,
,
,
(,)
,
–
,
Finance costs
(,)
(,)
(,)
–
–
(,)
–
–
(,)
(,)
Finance revenue
–
–
–
–
–
–
–
–
,
,
Profit/(loss) before tax
,
,
,
,
,
,
(,)
,
(,)
,
Income tax (expense)/credit
–
–
–
–
–
–
–
(,)
(,)
(,)
Net profit/(loss)
,
,
,
,
,
,
(,)
,
(,)
,
Assets
Reportable segment assets (excluding right-of use assets)
,
,
,
,
,
,,
–
–
,
,,
Right-of-use assets
,
,
,
–
–
,
–
–
–
,
Equity accounted investments
,
,
–
–
–
,
–
–
–
,
Deferred tax assets
–
–
–
–
–
–
–
–
,
,
Total assets
,
,
,
,
,
,,
–
–
,
,,
Liabilities
Reportable segment liabilities (excluding lease liabilities)
,
,
,
,
–
,
–
–
,
,
Lease liabilities
,
,
,
–
–
,
–
–
–
,
Total liabilities
,
,
,
,
–
,,
–
–
,
,,
Acquisition of non-current assets
,
,
,
,
,
,
–
–
,
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Entertainment
June
Australia and
New Zealand
Germany
Hotels
Thredbo
Property
Total
segments
Corporate
Individually
significant
items
Unallocated
and tax
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Reported EBITDA (including AASB Leases)*
,
,
,
,
,
,
(,)
,
–
,
Less: Occupancy costs
(,)
(,)
(,)
–
–
(,)
–
–
–
(,)
Adjusted EBITDA (excluding AASB Leases)*
,
,
,
,
,
,
(,)
,
–
,
Result impacts arising from AASB Leases
Occupancy costs
,
,
,
–
–
,
–
–
–
,
Amortisation and impairments
(,)
(,)
(,)
–
–
(,)
–
–
–
(,)
,
,
,
–
–
,
–
–
–
,
Finance costs
(,)
(,)
(,)
–
–
(,)
–
–
–
(,)
Income tax (expense)/credit**
(,)
–
–
(,)
–
–
–
(,)
,
()
()
–
–
,
–
–
–
,
* EBITDA is profit before net interest, income tax, depreciation and amortisation.
** The tax impact for AASB and the operations of the Group are reported as an unallocated impact.
June
June
Geographic information
Australia ()
New Zealand
Germany
Total
Australia
New Zealand
Germany
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
External segment revenue
,
,
,
,,
,
,
,
,,
Reportable segment assets
,,
,
,
,,
,,
,
,
,,
Right-of-use assets
,
,
,
,
,
,
,
,
Equity accounted investments
,
–
,
,
,
–
,
,
Total assets
,,
,
,
,,
,,
,
,
,,
Acquisition of non-current assets
,
,
,
,
,
,
,
,
Note : The geographic information for Australia includes reportable segment assets totalling A$, (: $nil) relating to assets located in Singapore. The reportable segment assets include current receivables of A$, (: $nil) and other assets of A$, (: $nil). The
Group has one subsidiary based in Singapore (incorporated on November ), refer also to note ..
| EVT LIMITED ANNUAL REPORT
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
–
,
Restructure, redundancies and staff related costs
(,)
–
New system implementation costs
(,)
–
Hotel and cinema pre-opening costs
(,)
(,)
Write-off relating to various development projects
(,)
–
Other expenses (net of income items)
()
()
Impairment charges
–
(,)
Transaction and other costs associated with the sale of a business segment
–
(,)
Individually significant items before tax
(,)
,
Income tax benefit/(expense)
,
(,)
Income tax expense adjustment to deferred tax liabilities (relating to the removal of tax
depreciation for commercial buildings in New Zealand)
(,)
–
Individually significant items after tax
(,)
,
.
TAXATION
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 over/(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
(,)
(,)
Income tax credit/(expense) reported in equity
(,)
Reconciliation between income tax (expense)/credit and pre-tax profit
Accounting profit before income tax (expense)/credit
,
,
Prima facie income tax expense at the income tax rate of % (: %)
(,)
(,)
Change in income tax (expense)/credit due to:
Repeal of NZ tax depreciation
(,)
–
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 over/(under) provided in the prior year
,
(,)
Total income tax expense
(,)
(,)
Unrecognised deferred tax assets
Revenue losses – foreign
,
,
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.
Statement of
Financial Position
Income
Statement
$’
$’
$’
$’
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
(,)
(,)
,
,
Deferred tax (expense)/credit
(,)
(,)
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Future tax developments
The Organisation for Economic Co-operation and Development (OECD) Pillar Two rules, which seek to apply a % global minimum
tax, have been enacted or substantively enacted in most jurisdictions in which the Group operates. The Group is in scope for the Pillar
Two legislation, which will be effective for the Group’s financial year beginning July .
The Group has performed an assessment, based on available historical and reasonably estimated data, of the Group’s potential
exposure to Pillar Two taxes as if they had applied in the current year, with the simplified effective tax rates under the transitional safe
harbour relief in all jurisdictions being above %. The Group does not expect to have material exposure to Pillar Two taxes.
The Group has applied a temporary mandatory exception from deferred tax accounting for the impact of Pillar Two taxes and will
account for any future Pillar Two taxes as current taxes when incurred.
.
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)
,
,
Number
Number
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 ..
| 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
,
,
,
,
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
– years;
– buildings and improvements subject to long term leases
shorter of estimated useful life and term of lease;
– resort apartments and share of common property
– years; and
– plant and equipment
– 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
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Freehold land and
buildings
Land subject to
long term leases
Buildings and
improvements
subject to long
term leases
Apartments
and share of
common property
Plant and
equipment
Capital work in
progress
Total
$’
$’
$’
$’
$’
$’
$’
Gross balance at the beginning of the year
,,
,
,
,
,
,,
Accumulated depreciation, amortisation and impairments
(,)
–
(,)
()
(,)
–
(,,)
Net balance at the beginning of the year
,
,
,
,
,
,,
Additions
,
–
,
–
,
,
,
Transfers
,
–
,
,
(,)
()
Disposals
–
–
()
–
()
–
()
Depreciation, amortisation and impairments
(,)
–
(,)
()
(,)
–
(,)
Transfer to assets held for sale
(,)
–
–
–
()
()
(,)
Effect of movement in foreign exchange
(,)
()
()
()
()
()
(,)
At June
,
,
,
,
,
,,
Gross balance at the end of the year
,,
,
,
,
,
,
,,
Accumulated depreciation, amortisation and impairments
(,)
–
(,)
()
(,)
–
(,,)
Net balance at the end of the year
,
,
,
,
,
,,
Gross balance at the beginning of the year
,
,
,
,
,
,,
Accumulated depreciation, amortisation and impairments
(,)
–
(,)
()
(,)
–
(,,)
Net balance at the beginning of the year
,
,
,
,
,
,,
Additions
,
–
,
–
,
,
,
Additions from acquisition
,
–
–
–
–
,
Transfers
,
–
,
–
,
(,)
()
Disposals
()
–
()
–
(,)
–
(,)
Depreciation, amortisation and impairments
(,)
–
(,)
()
(,)
–
(,)
Transfer to assets held for sale
(,)
–
–
–
–
–
(,)
Effect of movement in foreign exchange
,
,
–
,
,
At June
,
,
,
,
,
,,
Gross balance at the end of the year
,,
,
,
,
,
,,
Accumulated depreciation, amortisation and impairments
(,)
–
(,)
()
(,)
–
(,,)
Net balance at the end of the year
,
,
,
,
,
,,
| EVT LIMITED ANNUAL REPORT
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:
June
June
Capitalisation rates
.% to .%
.% to .%
Pre-tax discount rates
.% 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
,
,
Independent valuation – alternate use is highest and best use
– June
,
,
– June
,
,
Not subject to independent valuation – book value
,
,
,,
,,
The book value of the above interests at June was $,,, (: $,,,). The written-down book value of
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 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 EBITDA was multiplied by a factor of 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 EBITDA growth rates (inclusive of an average annual inflation rate) of up to .% were utilised for periods beyond FY.
As a result of the above impairment review process, no impairment charges (: $. million) were recorded in respect of certain
cinemas or cash-generating units. For cinemas 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 a review of the
independent valuation of Thredbo that was issued during the June year. The independent valuation (from ) is 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 investment properties
,
,
,
,
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.
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Fair value of investment property
The Group investment property at June consists of one central Brisbane property. The 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.
$’000
$’000
Freehold land and buildings
At fair value (Level 3 fair values)
,
,
Summary of movements:
Balance at the beginning of the year
,
,
Fair value increment
–
Balance at the end of the year
,
,
.
ASSETS HELD FOR SALE
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 (: four non-core properties) have been identified for potential sale by the Group. As at June
, the Group had initiated a sale campaign for one of the properties and, for the other three properties, had entered into sale
contracts with prospective purchasers.
$’000
$’000
Assets held for sale – carrying amount
,
,
The fair value of the assets held for sale has been determined to be $,,. For one of the four properties, the fair value of
$,, was based on the going concern value determined by an independent valuation, as determined by an independent
registered qualified valuer as at April . For the other three properties, the book value of $,, at June was
determined to represent the total fair value of the properties.
| 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.
Rights
Management and leasehold rights are stated at cost less accumulated amortisation and impairment losses. These are amortised over
the life of the agreements, which range from to years, on a straight-line basis.
Software
Software is stated at cost less accumulated amortisation and impairment losses. Software for major operating systems is amortised
over a four to five-year period on a straight-line basis.
Other intangible assets
Other intangible assets include construction rights and 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.
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:
Goodwill
Rights
Software
Other
Total
$’
$’
$’
$’
$’
Gross balance at the beginning of the year
73,704
74,468
8,547
1,179
157,898
Accumulated amortisation and impairment losses
(653)
(42,557)
(7,207)
–
(50,417)
Net balance at the beginning of the year
73,051
31,911
1,340
1,179
107,481
Acquisitions and initial contributions
–
1,825
1,186
–
3,011
Transfers
–
–
299
–
299
Amortisation
–
(4,525)
(670)
–
(5,195)
Disposals
–
–
–
–
–
Net foreign currency differences on translation of foreign operations
(251)
(26)
(15)
–
(292)
Net balance at the end of the year
72,800
29,185
2,140
1,179
105,304
Gross balance
73,453
76,229
8,083
1,179
158,944
Accumulated amortisation and impairment losses
(653)
(47,044)
(5,943)
–
(53,640)
Net balance at the end of the year
72,800
29,185
2,140
1,179
105,304
Gross balance at the beginning of the year
70,277
63,371
7,399
1,179
142,226
Accumulated amortisation and impairment losses
(653)
(38,531)
(5,961)
–
(45,145)
Net balance at the beginning of the year
69,624
24,840
1,438
1,179
97,081
Acquisitions and initial contributions
2,616
12,877
522
–
16,015
Transfers
–
–
191
–
191
Amortisation
–
(4,534)
(832)
–
(5,366)
Disposals
–
(1,446)
–
–
(1,446)
Net foreign currency differences on translation of foreign operations
811
174
21
–
1,006
Net balance at the end of the year
73,051
31,911
1,340
1,179
107,481
Gross balance
73,704
74,468
8,547
1,179
157,898
Accumulated amortisation and impairment losses
(653)
(42,557)
(7,207)
–
(50,417)
Net balance at the end of the year
73,051
31,911
1,340
1,179
107,481
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:
2024
$’000
$’
Entertainment – Australia and New Zealand
43,548
43,583
Entertainment – Germany
4,148
4,214
Hotels – New Zealand
18,153
18,303
Hotels – Australia
5,395
5,395
Multiple units without significant goodwill
1,556
1,556
Total goodwill
72,800
73,051
| 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 up 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.
2024
$’000
2023
$’000
Trade payables
,
,
Other payables and accruals
,
,
,
,
.
PROVISIONS
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
corporate 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.
2024
$’000
2023
$’000
Current
Employee benefits
,
,
Insurance loss contingencies and other claims
,
,
Non-current
Employee benefits
,
,
Decommissioning of leasehold improvements
,
,
,
,
Movements in provisions
Movements in the carrying amounts of each class of provisions, except for employee benefits, are set out below:
2024
$’000
2023
$’000
Insurance loss contingencies and other claims
Carrying amount at the beginning of the year
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
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:
-
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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.
2024
$’000
2023
$’000
Right-of-use assets
Property
Balance at the beginning of the year
,
,
Additions
,
,
Reclassification
—
(,)
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
,
,
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, no impairment losses (: $,,) were recorded in respect of certain cinemas or
cash-generating units.
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 an agreements for a new lease that has yet to commence and in respect of which a
lease liability has yet to be recognised. The Group’s share of the total undiscounted rent payable under these leases is $,,
(: $,,), over a lease term of 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:
2024
$’000
2023
$’000
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
,
,
,
,
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 $,, (: $,,). At June , other liabilities
also included $,, relating to the stepped acquisition purchase price of a business combination. Refer to Note . for further
details regarding accounting for a business combination.
| 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
Final dividend
,
September
%
%
Interim dividend
,
March
%
%
,
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 $,, (: $,,). 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 as available-for-sale financial assets.
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.
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
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 in 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 (: $nil).
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Other facilities
A New Zealand-domiciled subsidiary has a general business loan facility. The subsidiary had drawn NZ$,, (A$,,)
under the facility at June (: NZ$,, (A$,,)).
Certain wholly-owned German-domiciled subsidiaries have a secured guarantee facility of €,, (A$,,) at June
(: €,, (A$,,)) for the issue of letters of credit and bank guarantee arrangements. The facility was
renewed during the financial year and expires on May . The facility is secured against cash held within certain wholly-owned
German-domiciled subsidiaries. Guarantees supported under the facility bear interest at .% per annum. The Group had issued a
total of €,, (A$,,) 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
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
,
(,,)
(,)
(,)
(,)
(,)
(,)
,,
(,,)
(,)
(,)
(,)
(,)
(,)
Non-derivative financial liabilities
Secured bank loans
,
(,)
(,)
(,)
(,)
(,)
–
Unsecured non-interest bearing loans
from other companies
,
(,)
()
()
()
()
()
Trade payables
,
(,)
(,)
–
–
–
–
Other payables and accruals
,
(,)
(,)
–
–
–
–
Lease liabilities
,
(,,)
(,)
(,)
(,)
(,)
(,)
,,
(,,)
(,)
(,)
(,)
(,)
(,)
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:
NZD
$’
EUR
$’
GBP
$’
USD
$’
NZD
$’
EUR
$’
GBP
$’
USD
$’
Cash and cash equivalents
,
Trade receivables
–
–
–
,
–
–
–
Secured bank loans
(,)
–
–
–
(,)
–
–
–
Trade payables
(,)
–
–
–
(,)
–
–
–
Gross balance sheet exposure
(,)
(,)
,
Net exposure
(,)
(,)
,
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 gain of $, (: loss 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.
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
SECTION
Group composition
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
Effective September , Noahs Hotels (N.Z.) Limited (“Noahs”), a wholly-owned subsidiary, acquired the remaining % of
Rydges Latimer Holdings Limited (“Latimer”) for an acquisition cost of NZ$,, (A$,,) taking the total ownership
interest in Latimer to %. Details regarding the stepped acquisition transactions over prior years were disclosed within the
and consolidated financial reports and additional details have been provided below.
There were no other business combinations in the year ended June .
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 $,, and the Group had provisionally recognised the fair values of the identifiable assets and liabilities
relating to the acquisition. The acquisition accounting was finalised, with no changes, in the financial year; and
-
Rydges Latimer Holdings Limited – effective September , Noahs acquired an additional % of Latimer for an
acquisition cost of NZ$,, (A$,,) taking the total ownership interest in Latimer to %. Details regarding the
stepped acquisition transactions over prior years were disclosed within the and consolidated financial reports
and additional details have been provided above.
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.
Ownership interest
Subsidiaries
Note
%
%
Albury Hotel Property Unit Trust
Amalgamated Cinema Holdings Limited
(c)
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
(c)
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
(a)(e)
CMS Cinema Verwaltungs GmbH
(a)(e)
Edge Digital Cinema Pty Limited
Edge Digital Technology Pty Limited
Edge Investments BV
(a)(d)
Elsternwick Properties Pty Limited
Event Cinema Entertainment Pty Limited
Event Cinemas (Australia) Pty Limited
Event Cinemas Limited
(c)
Event Cinemas Nominees Limited
(c)
Event Cinemas (NZ) Limited
(c)
Event Cinemas Queen Street Nominees Limited
(c)
Event Hotels and Resorts Pty Limited
Event Hotels (NZ) Limited
(c)
EVT Administration Pty Limited
EVT Hotels Asia Pte Limited
(a)(h)
—
Filmpalast am ZKM Karlsruhe Beteiligungs GmbH
(a)(e)
Filmpalast Konstanz Beteiligungs GmbH
(a)(e)
First Cinema Management BV
(a)(d)
First Holding GmbH
(a)(e)
Flaggspett Vermogensverwaltungsgesellschaft mbH
(a)(e)
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
(a)(e)
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Ownership interest
Note
%
%
Greater Union Filmpalast Cubix in Berlin GmbH
(a)(e)
Greater Union Filmpalast Dortmund GmbH & Co. KG
(a)(e)
Greater Union Filmpalast GmbH
(a)(e)
Greater Union Filmpalast in der Kulturbrauerei Berlin GmbH
(a)(e)
Greater Union Filmpalast in Hamburg GmbH
(a)(e)
Greater Union Filmpalast Rhein-Main GmbH
(a)(e)
Greater Union First Cinema BV & Co. KG
(a)(e)
Greater Union International BV
(a)(d)
Greater Union International GmbH
(a)(e)
Greater Union International Holdings Pty Limited
Greater Union Limited
(a)(b)
Greater Union Media & Event GmbH
(a)(e)
Greater Union Nominees Pty Limited
Greater Union Real Estate GmbH
(a)(e)
Greater Union Real Estate GmbH
(a)(e)
Greater Union Real Estate Mainz GmbH & Co. KG
(a)(e)
Greater Union Screen Entertainment Pty Limited
Greater Union Theaters Beteiligungs GmbH
(a)(e)
Greater Union Theaters Dritte GmbH & Co. KG
(a)(e)
Greater Union Theaters Dritte Verwaltungs GmbH
(a)(e)
Greater Union Theaters GmbH
(a)(e)
Greater Union Theaters Management Mainz GmbH
(a)(e)
Greater Union Theaters Verwaltungs GmbH
(a)(e)
Greater Union Theaters Zweite GmbH & Co. KG
(a)(e)
Greater Union Theaters Zweite Verwaltungs GmbH
(a)(e)
Greattheatre Pty Limited
GU Real Estate Mainz Management GmbH
(a)(e)
GUO Investments (WA) Pty Limited
Gutace Holdings Pty Limited
Haparanda Pty Limited
Haymarket’s Tivoli Theatres Pty Limited
Jucy Snooze Property Trust
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
(c)(f)
LyLo Operations Australia Pty Limited
LyLo Operations NZ Limited
(c)
LyLo Property Holdings NZ Limited
(c)(g)
Mamasa Pty Limited
Multiplex Cinemas Bremen GmbH
(a)(e)
Multiplex Cinemas Frankfurt Mainzer Landstraße GmbH
(a)(e)
Multiplex Cinemas Magdeburg GmbH
(a)(e)
Multiplex Cinemas Oberhausen GmbH
(a)(e)
Multiplex Cinemas Remscheid GmbH
(a)(e)
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Ownership interest
Note
%
%
Neue Filmpalast GmbH & Co. KG
(a)(e)
Neue Filmpalast Management GmbH
(a)(e)
NFP Erste GmbH & Co. KG
(a)(e)
NFP Erste Verwaltungs GmbH
(a)(e)
Noahs Hotels (NZ) Limited
(c)
Noahs Limited
Northside Gardens Hotel Property Unit Trust
Northside Gardens Hotel Pty Limited
Pantami Pty Limited
P.R. Knight Limited
(c)(f)
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
(c)(f)
Rydges Property Holdings Pty Limited
Rydges Rotorua Hotel Limited
(c)
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
(a)(e)
Vierte Kinoabspielstatten Verwaltungs GmbH
(a)(e)
Western Australia Cinemas Pty Limited
Zollverein Pty Limited
Zweite Kinoabspielstatten GmbH & Co. KG
(a)(e)
Zweite Kinoabspielstatten Verwaltungs GmbH
(a)(e)
Notes
(a)
These companies are audited by other member firms of KPMG International.
(b)
This company was incorporated in and carries on business in the United Kingdom.
(c)
These companies were incorporated in and carry on business in New Zealand.
(d)
These companies were incorporated in and carry on business in the Netherlands.
(e)
These companies were incorporated in and carry on business in Germany.
(f)
The Group increased its interest in Rydges Latimer Holdings Limited to %, effective September .
(g)
LyLo Property Holdings NZ Limited was incorporated on September .
(h)
EVT Hotels Asia Pte Limited was incorporated on November . This company was incorporated in and carries on business in Singapore.
All companies, except as 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
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Joint ventures
Details of the Group’s investments in joint ventures, which are accounted for using the equity method, are as follows:
Ownership
interest
Investment
carrying amount
Contribution
to operating profit
Country of
Name
Principal activities
incorporation
Note
%
%
$’
$’
$’
$’
Browns Plains Cinemas Pty Limited
Operator of a multiscreen cinema complex
Australia
(a)
–
–
–
()
Filmpalast am ZKM Karlsruhe GmbH & Co. KG
Operator of a multiscreen cinema complex
Germany
,
,
()
()
Filmpalast Konstanz GmbH & Co. KG
Operator of a multiscreen cinema complex
Germany
,
Loganholme Cinemas Pty Limited
Operator of a multiscreen cinema complex
Australia
,
,
()
()
,
,
()
()
Notes
(a)
Browns Plains Cinemas Pty Limited owns % of the Browns Plains Multiplex Joint Venture. The Group also has a direct % share in the Browns Plains Multiplex Joint Venture which is accounted for as a joint operation. The Group’s total
effective interest in the Browns Plains Multiplex Joint Venture is %.
The Group reviewed its investments in joint ventures for indicators of impairment at June . The Group considered each investment and, in the case of Browns Plains Cinemas Pty Limited
and Loganholme Cinemas Pty Limited, the relationship and connection with other associated cash-generating assets. The Group determined that there was no requirement to book an impairment
in relation to the carrying value of investments in joint ventures.
Dividends received from joint ventures for the year ended June amount to $,, (: $nil). The balance date of each of the Group’s joint ventures is June.
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Associates
Details of the Group’s investments in associates, which are accounted for using the equity method, are as follows:
Ownership
interest
Investment
carrying amount
Contribution
to operating profit
Name
Principal activities
Country of
Incorporation
Note
%
%
$’
$’
$’
$’
Cinesound Movietone Productions Pty Limited
Film owner and distributor
Australia
()
DeinKinoticket GmbH
Operator of DeinKinoticket website
Germany
–
–
–
–
Digital Cinema Integration Partners Pty Limited
Administration
Australia
–
–
–
–
Digital Cinema Integration Partners NZ Pty Limited
Administration
New Zealand
(a)
–
–
–
–
Movietimes Australia and New Zealand Pty Limited
Operator of Movietimes website
Australia
(a)
–
–
–
–
()
Note
(a)
The company is not consolidated as the Group does not have control.
The Group reviewed its investments in associates for indicators of impairment at June . The Group determined that there was no requirement to book an impairment in relation to the
carrying value of investments in associates.
Dividends received from associates for the year ended June amount to $nil (: $nil). The balance date of each of the Group’s associates is June.
Joint operations
Details of the Group’s investments in joint operations, which are accounted for on a line-by-line basis, are as follows:
Ownership interest
Name
Principal activities
Country of operation
Note
%
%
Australian Theatres Joint Venture
Operator of multiscreen cinema complexes
Australia
Browns Plains Multiplex Joint Venture
Operator of a multiscreen cinema complex
Australia
(a)
Castle Hill Multiplex Cinema Joint Venture
Operator of a multiscreen cinema complex
Australia
Casuarina Cinema Centre Joint Venture
Operator of a multiscreen cinema complex
Australia
Garden City Cinema Joint Venture
Operator of a multiscreen cinema complex
Australia
Rialto Joint Venture
Operator of multiscreen cinema complexes
New Zealand
Toowoomba Cinema Centre Joint Venture
Operator of a multiscreen cinema complex
Australia
Note
(a)
In addition to the % interest in the Browns Plains Multiplex Joint Venture held directly, the Group has a % interest in Browns Plains Cinemas Pty Limited which is classified as a joint venture and equity accounted. Browns Plains Cinemas
Pty Limited owns % of the Browns Plains Multiplex Joint Venture. The Group’s total effective interest in the Browns Plains Multiplex Joint Venture is %.
| EVT LIMITED ANNUAL REPORT
| EVT LIMITED ANNUAL REPORT
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 as defined in AASB Share-based Payment.
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 Group’s Recognition and Retention Incentives (see below). 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
| 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 vested 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.
A manager-level Retention and Recognition Incentive award was issued on similar terms to other executives in , with % of
the grant value vesting in full in July . 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
Balance at
the start of
the year
Granted
Exercised
Forfeited
Balance at
the end of
the year
Performance rights
February
,
—
(,)
(,)
—
Performance rights
September
,
—
(,)
—
,
Performance rights
June
,
—
—
(,)
,
Performance rights
July
,
—
—
(,)
,
Performance rights
September
,
—
(,)
—
,
Performance rights
February
,
—
—
(,)
,
Performance rights
September
—
,
—
—
,
Performance rights
February
—
,
—
(,)
,
,,
,
(,)
(,)
,,
Performance rights
February
,
—
(,)
(,)
—
Performance rights
February
,
—
—
(,)
,
Performance rights
September
,
—
—
(,)
,
Performance rights
June
,
—
—
(,)
,
Performance rights
July
—
,
—
()
,
Performance rights
September
—
,
—
—
,
Performance rights
February
—
,
—
()
,
,,
,
(,)
(,)
,,
.
The grant date in the table above is the legal grant date according to the relevant offer documentation and allocation of the performance rights. The grant date in
the table above is the grant date for legal purposes, being the date on which the performance rights were allocated to the executive following the offer and
acceptance of the relevant terms associated with the offer.
.
Performance rights granted on September were issued pursuant to the vesting of the second tranche of the Recognition and Retention Incentive.
Fair value of performance rights granted
The assessed fair value at grant date (as defined in AASB ) 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 the performance rights calculated at
grant date (as defined in AASB ), estimated using a risk-neutral 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:
| EVT LIMITED ANNUAL REPORT
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
Granted
February
Granted
February
Granted
June
Granted
February
Dividend yield (per annum)
.%
.%
.%
.%
Expected volatility
.%
.%
.%
.%
Risk-free rate (per annum)
.%
.%
.%
.%
Share price
$.
$.
$.
$.
Expected life
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
$,, (: $,,).
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
Directors’ Report page reference
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
,
,
,,
,,
| EVT LIMITED ANNUAL REPORT
| EVT LIMITED ANNUAL REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE
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.
.
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
| 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 loss
Share-based payments expense
,
,
Receivables impairment adjustment
()
Unrealised foreign exchange gains
()
(,)
Net cash provided by operating activities before change in assets and liabilities
,
,
Change in assets and liabilities adjusted for effects of consolidation of controlled
entities acquired/disposed during the year:
(Increase)/decrease in trade and other receivables
(,)
,
Increase in inventories
()
(,)
Decrease in prepayments and other current assets
,
,
Decrease in deferred tax items
,
,
Decrease in income taxes payable
(,)
(,)
Decrease in trade and other payables
(,)
(,)
Increase in provisions
,
,
Decrease in other liabilities
()
()
Increase/(decrease) in deferred revenue
,
(,)
Increase/(decrease) in financing costs payable
()
Net cash provided by operating activities
,
,
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
| 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
,
,,
In the June year, Overseas KPMG firms – Other assurance services and Tax compliance and advice included certain 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 concluded in the year ending June , however the majority of the related
costs were 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
| 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.
$’
$’
Results of parent entity
Profit for the year
,
,
Other comprehensive income for the year
,
,
Total comprehensive income for the year
,
,
Financial position of parent entity at year end
Current assets
,
,
Total assets
,
,
Current liabilities
,
,
Total liabilities
,
,
Net assets
,
,
Total equity of parent entity comprises:
Share capital
,
,
Financial assets revaluation reserve
,
,
Share-based payments reserve
,
,
Retained earnings
,
,
Total equity
,
,
Parent entity contingencies
Controlled entities
The Company has guaranteed the obligations of some subsidiary entities in respect of a
number of operating lease commitments. Operating lease commitments of subsidiary
entities that have been guaranteed are due:
Not later than one year
,
,
Later than one year but not later than five years
,
,
Later than five years
,
,
,
,
Joint ventures and joint operations
The Company has guaranteed the obligations of some joint ventures and joint operations
in respect of a number of operating lease commitments. Operating lease commitments of
joint ventures and joint operations are due:
Not later than one year
,
,
Later than one year but not later than five years
,
,
Later than five years
,
,
,
,
,
,
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
| 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 Revocation Deed
On July , a Revocation Deed was lodged with ASIC, commencing the revocation of the Deed of Cross Guarantee in respect of
the following Group companies:
Elsternwick Properties Pty Limited
QT Resort Port Douglas Pty Limited
Event Cinemas (Australia) Pty Limited
RQ Motels Pty Limited
Event Cinema Entertainment Pty Limited
Tannahill Pty Limited
Event Hotels and Resorts Pty Limited
Tourism & Leisure Pty Limited
Greater Union Nominees Pty Limited
Zollverein Pty Limited
Port Hacking Road Pty Limited
The Revocation Deed will take effect on January and will remove the guarantee obligations required under the Deed of Cross
Guarantee for those companies listed under the Revocation Deed. Refer also 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, at June , are:
Atura Hotels and Resorts Pty Limited
Kvarken Pty Limited
Birch, Carroll & Coyle Limited
Lakeside Hotel Pty Limited
Bryson Hotel Pty Limited
Mamasa Pty Limited
Canberra Theatres Limited
Noahs Limited
Edge Digital Technology Pty Limited
Northside Gardens Hotel Pty Limited
Elsternwick Properties Pty Limited (a)
Pantami Pty Limited
Event Cinema Entertainment Pty Limited (a)
Port Hacking Road Pty Limited (a)
Event Cinemas (Australia) Pty Limited (a)
QT Hotels and Resorts Pty Limited
Event Hotels and Resorts Pty Limited (a)
QT Resort Port Douglas Pty Limited (a)
Glenelg Theatres Pty Limited
RQ Motels Pty Limited (a)
Greater Entertainment Pty Limited
Rydges Bankstown Pty Limited
Greater Occasions Australia Pty Limited
Rydges Cronulla Pty Limited
Greater Union International Holdings Pty Limited
Rydges Hotels Limited
Greater Union Nominees Pty Limited (a)
Sonata Hotels Pty Limited
Greater Union Screen Entertainment Pty Limited
Tannahill Pty Limited (a)
Greattheatre Pty Limited
The Geelong Theatre Company Limited
GUO Investments (WA) Pty Limited
The Greater Union Organisation Pty Limited
Gutace Holdings Pty Limited
Thredbo Resort Centre Pty Limited
Haparanda Pty Limited
Tourism & Leisure Pty Limited (a)
Haymarket’s Tivoli Theatres Pty Limited
Western Australia Cinemas Pty Limited
Kidsports Australia Pty Limited
Zollverein Pty Limited (a)
Kosciuszko Thredbo Pty Limited
(a)
A Revocation Deed was lodged with ASIC on July in relation to the commencing the revocation process for certain companies from the Deed of Cross
Guarantee. Further information is provided within Note ..
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
| 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
(,)
(,)
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
,
,
| EVT LIMITED ANNUAL REPORT
| 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
,
,
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
,
,
CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT JUNE
| EVT LIMITED ANNUAL REPORT
CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT JUNE
Name of entity
Type
of entity
Country of
incorporation
Ownership
%
Trustee, partner or
participant in a joint venture
Australian resident or
foreign resident
Foreign jurisdiction
of foreign resident
EVT Limited
Body corporate
Australia
%
n/a
Australian
n/a
Albury Hotel Property Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Amalgamated Holdings Superannuation Fund Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Ancona Investments Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Atura Adelaide Airport Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Atura Holdings Pty Limited
Body corporate
Australia
%
Trustee of Atura Adelaide Airport Unit Trust
Australian
n/a
Atura Hotels and Resorts Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Birch, Carroll & Coyle Limited
Body corporate
Australia
%
Participant in Australian Theatres Joint Venture, Browns Plains
Multiplex Joint Venture, Garden City Cinema Joint Venture and
Toowoomba Cinema Centre Joint Venture
Australian
n/a
BLN Hotels Property Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Bryson Centre Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Bryson Hotel Property Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Bryson Hotel Pty Limited
Body corporate
Australia
%
Trustee of Bryson Hotel Property Unit Trust
Australian
n/a
Canberra Theatres Limited
Body corporate
Australia
%
n/a
Australian
n/a
Edge Digital Cinema Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Edge Digital Technology Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Elsternwick Properties Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Event Cinema Entertainment Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Event Cinemas (Australia) Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Event Hotels and Resorts Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
EVT Administration Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
to George Street Development Pty Limited
Body corporate
Australia
%
Trustee of to George Street Development Trust
Australian
n/a
to George Street Development Trust
Trust
Australia
%
n/a
Australian
n/a
to George Street Holding Pty Limited
Body corporate
Australia
%
Trustee of to George Street Holding Trust
Australian
n/a
to George Street Holding Trust
Trust
Australia
%
n/a
Australian
n/a
Glenelg Theatres Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Greater Entertainment Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Greater Occasions Australia Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Greater Union International Holdings Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Greater Union Nominees Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT JUNE
| EVT LIMITED ANNUAL REPORT
Name of entity
Type
of entity
Country of
incorporation
Ownership
%
Trustee, partner or
participant in a joint venture
Australian resident or
foreign resident
Foreign jurisdiction
of foreign resident
Greater Union Screen Entertainment Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Greattheatre Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
GUO Investments (WA) Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Gutace Holdings Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Haparanda Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Haymarket’s Tivoli Theatres Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Jucy Snooze Property Trust
Trust
Australia
%
n/a
Australian
n/a
Kidsports Australia Pty Limited
Body corporate
Australia
%
Participant in Casuarina Cinema Centre Joint Venture
Australian
n/a
Kosciuszko Thredbo Pty Limited
Body corporate
Australia
%
Trustee of KTPL Unit Trust
Australian
n/a
KTPL Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Kvarken Pty Limited
Body corporate
Australia
%
Trustee of BLN Hotels Property Unit Trust and Jucy Snooze Property
Trust
Australian
n/a
Lakeside Hotel Property Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Lakeside Hotel Pty Limited
Body corporate
Australia
%
Trustee of Lakeside Hotel Property Unit Trust
Australian
n/a
Lakeside International Hotel Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Lylo Operations Australia Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Mamasa Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Noahs Limited
Body corporate
Australia
%
n/a
Australian
n/a
Northside Gardens Hotel Property Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Northside Gardens Hotel Pty Limited
Body corporate
Australia
%
Trustee of Northside Gardens Hotel Property Unit Trust
Australian
n/a
Pantami Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Port Hacking Road Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
QT Gold Coast Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
QT Hotels and Resorts Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
QT Resort Port Douglas Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
RH Hotels Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
RQ Motels Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Rydges Bankstown Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Rydges Cronulla Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Rydges Gladstone Hotel Property Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Rydges Hobart Hotel Property Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Rydges Hobart Hotel Pty Limited
Body corporate
Australia
%
Trustee of Rydges Hobart Hotel Property Unit Trust
Australian
n/a
Rydges Hotels Limited
Body corporate
Australia
%
n/a
Australian
n/a
CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT JUNE
| EVT LIMITED ANNUAL REPORT
Name of entity
Type
of entity
Country of
incorporation
Ownership
%
Trustee, partner or
participant in a joint venture
Australian resident
or foreign resident
Foreign jurisdiction
of foreign resident
Rydges Hotels Property Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Rydges HPT Pty Limited
Body corporate
Australia
%
Trustee of Rydges Hotels Property Unit Trust
Australian
n/a
Rydges Property Holdings Pty Limited
Body corporate
Australia
%
Trustee of Albury Hotel Property Unit Trust, Rydges Gladstone Hotel
Property Unit Trust and Rydges Townsville Hotel Property Unit Trust
Australian
n/a
Rydges Townsville Hotel Property Unit Trust
Trust
Australia
%
n/a
Australian
n/a
Sonata Hotels Pty Limited
Body corporate
Australia
%
Trustee of Bryson Centre Unit Trust and Lakeside International Hotel
Unit Trust
Australian
n/a
Southport Cinemas Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Sunshine Cinemas Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Tannahill Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
The Geelong Theatre Company Limited
Body corporate
Australia
%
n/a
Australian
n/a
The Greater Union Organisation Pty Limited
Body corporate
Australia
%
Participant in Australian Theatres Joint Venture and Castle Hill
Multiplex Cinema Joint Venture
Australian
n/a
Thredbo Resort Centre Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Tourism & Leisure Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Western Australia Cinemas Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Zollverein Pty Limited
Body corporate
Australia
%
n/a
Australian
n/a
Amalgamated Cinema Holdings Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Bay City Cinemas Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Event Cinemas Limited
Body corporate
New Zealand
%
Participant in Rialto Joint Venture
Foreign
New Zealand
Event Cinemas Nominees Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Event Cinemas (NZ) Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Event Cinemas Queen Street Nominees Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Event Hotels (NZ) Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Latimer Hotel Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Lylo Operations NZ Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Lylo Property Holdings NZ Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Noahs Hotels (NZ) Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
P.R. Knight Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Rydges Latimer Holdings Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
Rydges Rotorua Hotel Limited
Body corporate
New Zealand
%
n/a
Foreign
New Zealand
CMS Cinema Management Services GmbH & Co. KG
Partnership
Germany
%
n/a
Foreign
Germany
CMS Cinema Verwaltungs GmbH
Body corporate
Germany
%
Partner of CMS Cinema Management Services GmbH & Co. KG
Foreign
Germany
Filmpalast am ZKM Karlsruhe Beteiligungs GmbH
Body corporate
Germany
%
Partner of Filmpalast am ZKM Karlsruhe GmbH & Co. KG
Foreign
Germany
CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT JUNE
| EVT LIMITED ANNUAL REPORT
Name of entity
Type
of entity
Country of
incorporation
Ownership
%
Trustee, partner or
participant in a joint venture
Australian resident or
foreign resident
Foreign jurisdiction
of foreign resident
Filmpalast Konstanz Beteiligungs GmbH
Body corporate
Germany
%
Partner of Filmpalast Konstanz GmbH & Co. KG
Foreign
Germany
First Holding GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Flaggspett Vermogensverwaltungsgesellschaft mbH
Body corporate
Germany
%
n/a
Foreign
Germany
Greater Union Betriebsmittel GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Greater Union Filmpalast Cubix in Berlin GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Greater Union Filmpalast Dortmund GmbH & Co. KG
Partnership
Germany
%
n/a
Foreign
Germany
Greater Union Filmpalast GmbH
Body corporate
Germany
%
Partner of Zweite Kinoabspielstatten GmbH & Co. KG
Foreign
Germany
Greater Union Filmpalast in der Kulturbrauerei Berlin GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Greater Union Filmpalast in Hamburg GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Greater Union Filmpalast Rhein-Main GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Greater Union First Cinema BV & Co. KG
Partnership
Germany
%
n/a
Foreign
Germany
Greater Union International GmbH
Body corporate
Germany
%
Partner of CMS Cinema Management Services GmbH & Co. KG and
NFP Erste GmbH & Co. KG
Foreign
Germany
Greater Union Media & Event GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Greater Union Real Estate GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Greater Union Real Estate GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Greater Union Real Estate Mainz GmbH & Co. KG
Partnership
Germany
%
n/a
Foreign
Germany
Greater Union Theaters Beteiligungs GmbH
Body corporate
Germany
%
Partner of Greater Union Real Estate Mainz GmbH & Co KG
Foreign
Germany
Greater Union Theaters Dritte GmbH & Co. KG
Partnership
Germany
%
Partner of Vierte Kinoabspielstatten GmbH & Co. KG
Foreign
Germany
Greater Union Theaters Dritte Verwaltungs GmbH
Body corporate
Germany
%
Partner of Greater Union Theaters Dritte GmbH & Co. KG
Foreign
Germany
Greater Union Theaters GmbH
Body corporate
Germany
%
Partner of Greater Union Filmpalast Dortmund GmbH & Co. KG,
Greater Union Theaters Zweite GmbH & Co. KG and Greater Union
Theaters Dritte GmbH & Co. KG
Foreign
Germany
Greater Union Theaters Management Mainz GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Greater Union Theaters Verwaltungs GmbH
Body corporate
Germany
%
Partner of Greater Union Filmpalast Dortmund GmbH & Co. KG
Foreign
Germany
Greater Union Theaters Zweite GmbH & Co. KG
Partnership
Germany
%
n/a
Foreign
Germany
Greater Union Theaters Zweite Verwaltungs GmbH
Body corporate
Germany
%
Partner of Greater Union Theaters Zweite GmbH & Co. KG
Foreign
Germany
GU Real Estate Mainz Management GmbH
Body corporate
Germany
%
Partner of Greater Union Real Estate Mainz GmbH & Co KG
Foreign
Germany
Multiplex Cinemas Bremen GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Multiplex Cinemas Frankfurt Mainzer Landstraße GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Multiplex Cinemas Magdeburg GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Multiplex Cinemas Oberhausen GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
Multiplex Cinemas Remscheid GmbH
Body corporate
Germany
%
n/a
Foreign
Germany
CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT JUNE
| EVT LIMITED ANNUAL REPORT
Name of entity
Type
of entity
Country of
incorporation
Ownership
%
Trustee, partner or
participant in a joint venture
Australian resident or
foreign resident
Foreign jurisdiction
of foreign resident
Neue Filmpalast GmbH & Co. KG
Partnership
Germany
%
n/a
Foreign
Germany
Neue Filmpalast Management GmbH
Body corporate
Germany
%
Partner of Neue Filmpalast GmbH & Co. KG
Foreign
Germany
NFP Erste GmbH & Co. KG
Partnership
Germany
%
Partner of Neue Filmpalast GmbH & Co. KG
Foreign
Germany
NFP Erste Verwaltungs GmbH
Body corporate
Germany
%
Partner of NFP Erste GmbH & Co. KG
Foreign
Germany
Vierte Kinoabspielstatten GmbH & Co. KG
Partnership
Germany
%
n/a
Foreign
Germany
Vierte Kinoabspielstatten Verwaltungs GmbH
Body corporate
Germany
%
Partner of Vierte Kinoabspielstatten GmbH & Co. KG
Foreign
Germany
Zweite Kinoabspielstatten GmbH & Co. KG
Partnership
Germany
%
n/a
Foreign
Germany
Zweite Kinoabspielstatten Verwaltungs GmbH
Body corporate
Germany
%
Partner of Zweite Kinoabspielstatten GmbH & Co. KG
Foreign
Germany
Edge Investments BV
Body corporate
Netherlands
%
Partner in Greater Union First Cinema BV & Co. KG and Neue
Filmpalast GmbH & Co. KG
Foreign
Netherlands
First Cinema Management BV
Body corporate
Netherlands
%
Partner in Greater Union First Cinema BV & Co. KG
Foreign
Netherlands
Greater Union International BV
Body corporate
Netherlands
%
n/a
Foreign
Netherlands
Greater Union Limited
Body corporate
United Kingdom
%
n/a
Foreign
United Kingdom
EVT Hotels Asia Pte Ltd
Body corporate
Singapore
%
n/a
Foreign
Singapore
Basis of preparation
This consolidated entity disclosure statement (“CEDS”) has been prepared in accordance with the Corporations Act and includes information for each entity that was part of the
consolidated entity as at the end of the financial year in accordance with AASB Consolidated Financial Statements.
Determination of tax residency
Section (A)(vi) of the Corporation Act defines tax residency as having the meaning in the Income Tax Assessment Act . The determination of tax residency involves judgement
as there are different interpretations that could be adopted, and which could give rise to a different conclusion on residency. In determining tax residency, the consolidated entity has applied
the following interpretations:
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax Commissioner’s public guidance in Tax Ruling TR /.
Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in its determination of tax residency to ensure applicable foreign tax
legislation has been compiled with (see section (A)(vii) of the Corporations Act ).
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)
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
(ii)
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 consolidated entity disclosure statement required by A of the Corporations Act is true and correct as at 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
| 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
Number of ordinary shares held
Enbeear Pty Limited
,,*--
Carlton Investments Limited
,,
Perpetual Limited and its related bodies corporate
,,
* Includes Carlton Investments Limited holding.
Voting rights
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
Number of
shareholders
Number of
shares held
– ,
,
,,
, – ,
,
,,
, – ,
,,
, – ,
,,
, and over
,,
,
,,
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
| EVT LIMITED ANNUAL REPORT
SHAREHOLDER INFORMATION
Twenty largest shareholders
The names of the largest shareholders of the quoted shares are:
Number of
Percentage of
shares held
capital held
Enbeear Pty Limited
,,
.%
HSBC Custody Nominees (Australia) Limited
,,
.%
Eneber Investment Company Limited
,,
.%
J P 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
,,
.%
UBS Nominees Pty Ltd
,,
.%
Mutual Trust Pty Ltd
,,
.%
T N Phillips Investments Pty Ltd
,,
.%
BNP Paribas Noms Pty Ltd
,,
.%
Mirrabooka Investments Limited
,,
.%
BNP Paribas Nominees Pty Ltd
,
.%
Citicorp Nominees Pty Limited
,
.%
HSBC Custody Nominees (Australia) Limited
,
.%
National Nominees Limited
,
.%
Mr David Christopher Seargeant
,
.%
,,
.%
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
| 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/MWXKWA.
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
Hope Street
Ermington NSW
GPO Box
Melbourne VIC
Telephone
www.computershare.com
For more information on EVT Limited, please refer to our website at www.evt.com.