ASX RELEASE 19 August 2015 The Manager Company Notices Section ASX - - PDF document

CONTACT DETAILS REGISTRY Level 16, 61 Lavender Street c/- Link Market Services Limited Ardent Leisure Trust Milsons Point NSW 2061 Level 12, 680 George Street ARSN 093 193 438 AUSTRALIA Sydney NSW 2000 Ardent Leisure Limited Telephone +61 2 9409 3670 Locked Bag A14 ABN 22 104 529 106 Investor Services 1800 ARDENT Sydney South NSW 1235 Ardent Leisure Management Limited Fax +61 2 9409 3670 Telephone 1300 720 560 ABN 36 079 630 676 www.ardentleisure.com.au registrars@linkmarketservices.com.au (AFS Licence No. 247010)

AMF Bowling | d’Albora Marinas | Dreamworld | Goodlife Health Clubs | Hypoxi Kingpin Bowling | Main Event Entertainment | SkyPoint | SkyPoint Climb | WhiteWater World ASX RELEASE 19 August 2015 The Manager Company Notices Section ASX Limited 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam ARDENT LEISURE GROUP REPORTS CONTINUED STRONG PERFORMANCE FROM MAIN EVENT Key Highlights

• Revenue of $594.6 million up 19.0% on prior year.
• Core earnings of $56.2 million down 3.3%.
• Main Event US dollar earnings continue to improve (up 63.8% on the prior year), with a further seven

new family entertainment centres planned to open in FY2016.

• Health Club division earnings impacted by increased competition, however rollout of 24/7 clubs are

progressing to plan, with positive signs continuing from all converted clubs. Ardent Leisure (ASX: AAD) today announced its full year result, with revenues rising 19.0% to $594.6 million, largely as a result of contributions from its fast growing Main Event Entertainment division in the US. The Group’s core earnings of $56.2 million were down 3.3% and a second half distribution of 5.5 cents has been declared, bringing the total distribution for the year to 12.5 cents. Group Chairman, Neil Balnaves AO said, “Main Event was again the standout division, where US dollar EBITDA grew 63.8%, driven by a strong performance from both constant and new centres. Theme Parks and Bowling have reported broadly consistent trends with the third quarter, while Marinas had a softer final quarter, due to the impact of the redevelopment works at The Spit Marina and lower fuel sales in the winter period.” “As part of the Group’s capital management strategy, in August 2015 Ardent Leisure extended its Australian and US dollar debt facilities and increased its US dollar facility by US$120.0 million to US$280.0 million. This facility, along with the support from a US based institutional real estate investor of up to US$100.0 million, combined with the use of both the Distribution Reinvestment Plan and retained earnings, will provide financing for the planned expansion of Main Event over the next two years.” he added.

CONTACT DETAILS REGISTRY Level 16, 61 Lavender Street c/- Link Market Services Limited Ardent Leisure Trust Milsons Point NSW 2061 Level 12, 680 George Street ARSN 093 193 438 AUSTRALIA Sydney NSW 2000 Ardent Leisure Limited Telephone +61 2 9409 3670 Locked Bag A14 ABN 22 104 529 106 Investor Services 1800 ARDENT Sydney South NSW 1235 Ardent Leisure Management Limited Fax +61 2 9409 3670 Telephone 1300 720 560 ABN 36 079 630 676 www.ardentleisure.com.au registrars@linkmarketservices.com.au (AFS Licence No. 247010)

AMF Bowling | d’Albora Marinas | Dreamworld | Goodlife Health Clubs | Hypoxi Kingpin Bowling | Main Event Entertainment | SkyPoint | SkyPoint Climb | WhiteWater World Mr Balnaves continued, “The earnings for the year under review included a number of non‐recurring, one‐off cash costs as part of the restructuring of the company. This includes senior management transition payments and the cost of make‐good in respect of the exit of the Randwick AMF centre.” Recently appointed Group CEO, Deborah Thomas said, “We have now completed a strategic review of the sales and marketing functions across our businesses to identify revenue growth opportunities. In‐line with customer research we have implemented a range of customer service, marketing and digital initiatives which are starting to bear fruit across the Group.” “The conversion of 24 hour trading in Goodlife Health Clubs is progressing well, with 20 clubs currently converted and a further 25 clubs expected to transition to the extended trading hours by the end of the 2016 financial year. This division will continue to be a focus of our efforts to improve customer satisfaction and membership sales. Following the implementation of initial strategies, we have seen strong membership growth across the portfolio in the months of June and July 2015, against the prior corresponding period.” she added. Main Event Entertainment Main Event Entertainment recorded total revenues of US$143.6 million, up 60.9% on prior year. An EBITDA of US$36.7 million was recorded for the year, representing an increase of 63.8% on the prior year. Ms Thomas said, “This outstanding result has been driven by both strong constant centre performance (where earnings before property costs grew by 9.6%) and excellent results from the new centres.” “During the year Main Event opened six new centres, bringing the total number of centres now open to 20. Main Event plans to open a further seven centres in FY2016 and eight in FY2017. However we consider there is potential for further growth over the next two years and management is actively pursuing opportunities for additional new sites.” she added. Main Event now has six out of 20 centres operating successfully outside of Texas, confirming the suitability of the Family Entertainment product to the wider US market and providing expanded opportunities for the Group. Health Clubs Goodlife Health Clubs recorded total revenues of $178.4 million for the year, up 8.7% on the prior year. An EBITDA of $28.2 million was recorded against an EBITDA of $34.0 million for the prior year, due to competition from 24/7 operators. Importantly, trends have improved with fourth quarter EBITDA of $7.2 million up from $6.5 million in the third quarter. June and July 2015 saw significant membership growth above the prior corresponding period, underpinned by strong improvement in member attrition across the portfolio and improved sales results, particularly from 24/7 club conversions. Sales in these clubs are up 34.3% and club leavers down 18.1% on the prior corresponding periods.

CONTACT DETAILS REGISTRY Level 16, 61 Lavender Street c/- Link Market Services Limited Ardent Leisure Trust Milsons Point NSW 2061 Level 12, 680 George Street ARSN 093 193 438 AUSTRALIA Sydney NSW 2000 Ardent Leisure Limited Telephone +61 2 9409 3670 Locked Bag A14 ABN 22 104 529 106 Investor Services 1800 ARDENT Sydney South NSW 1235 Ardent Leisure Management Limited Fax +61 2 9409 3670 Telephone 1300 720 560 ABN 36 079 630 676 www.ardentleisure.com.au registrars@linkmarketservices.com.au (AFS Licence No. 247010)

AMF Bowling | d’Albora Marinas | Dreamworld | Goodlife Health Clubs | Hypoxi Kingpin Bowling | Main Event Entertainment | SkyPoint | SkyPoint Climb | WhiteWater World The third and fourth quarters have also seen a return to a stronger mix of higher value membership sales, including a higher percentage of 12 and 18 month memberships. During the fourth quarter Goodlife announced a new partnership with Emily Skye, one of the leading online fitness personalities with over six million followers, to provide unique in‐club and online co‐branded

• fferings. This will be complemented with further enhancement to the Goodlife member service offerings,

including access to a new Goodlife digital 24/7 nutrition, fitness and health website and mobile application. Hypoxi US remains on track to open two new showpiece studios in Arizona in the first quarter of FY2016. These studios will be used as a foundation for a future US and Canadian franchise rollout. Bowling The Bowling division recorded total revenues of $116.5 million, against prior year revenues of $113.9 million. An EBITDA of $14.0 million was recorded for the year, up 1.6% against the prior year. This result was impacted by one‐off costs associated with the closure of AMF Randwick and the Kingpin Richmond site. The exit of the Randwick centre will have a positive annualised earnings benefit of $0.4 million. Operational efficiency reviews, procurement initiatives and process improvements have helped drive

• perating margins to 34.6% against 34.2% recorded in the prior year. On a constant centre basis, revenues of

$110.2 million were up 0.4% on the prior year, and earnings before property costs of $52.8 million were up 2.7% on the prior year. During the year an online booking engine for both social bowling and birthday parties was launched, along with a customer call centre for AMF and a new food menu in the top 20 AMF locations. Playtime Highpoint was acquired in November 2014, in line with our strategy to build a stronger amusement game segment and AMF Revesby opened in April 2015, with Kingpin Darwin opening on 1st August 2015. Theme Parks The Group’s Theme Park division recorded total revenues of $99.6 million for the year, against prior year revenues of $100.1 million. An EBITDA of $32.0 million was recorded for the year against an EBITDA of $32.8 million in the prior year. Theme Parks have delivered a solid result, despite unprecedented rainfall and the impact of Cyclone Marcia in the key third quarter trading period. The four new Food & Beverage outlets – Green Bean Coffee Co, Dough Bros Pizzeria, Food Central Burger Bar and The Sandwich Shop – continue to trade well, with excellent customer feedback.

CONTACT DETAILS REGISTRY Level 16, 61 Lavender Street c/- Link Market Services Limited Ardent Leisure Trust Milsons Point NSW 2061 Level 12, 680 George Street ARSN 093 193 438 AUSTRALIA Sydney NSW 2000 Ardent Leisure Limited Telephone +61 2 9409 3670 Locked Bag A14 ABN 22 104 529 106 Investor Services 1800 ARDENT Sydney South NSW 1235 Ardent Leisure Management Limited Fax +61 2 9409 3670 Telephone 1300 720 560 ABN 36 079 630 676 www.ardentleisure.com.au registrars@linkmarketservices.com.au (AFS Licence No. 247010)

AMF Bowling | d’Albora Marinas | Dreamworld | Goodlife Health Clubs | Hypoxi Kingpin Bowling | Main Event Entertainment | SkyPoint | SkyPoint Climb | WhiteWater World “A change in marketing strategy to ensure targeted media coverage to support the June pass campaign over May, June and July, along with a more competitive pass offer, has resulted in increased pass sales of 28% and attendance across the division up 9.7% over these three calendar months.” added Ms Thomas. The new ABC Kids World opened in time for the June/July 2015 school holidays and during the year Dreamworld was voted Queensland’s Best Major Tourist Attraction and Australia’s Third Most Popular Tourist Attraction in the Annual Tourism Awards. Marinas d’Albora Marinas recorded total revenues of $23.0 million for the year, against $23.5 million in the prior year. An EBITDA of $10.2 million was recorded for the year, 2.4% less than prior year EBITDA of $10.4 million. Despite full year occupancy growing from 84.2% to 85.5%, the EBITDA was most negatively affected in the fourth quarter as a result of the $5 million redevelopment of The Spit Marina. This redevelopment will enhance existing facilities, increase capacity by 24 berths and allow for berthing of vessels of up to 36 metres in length. Works are anticipated to be completed in the first quarter of FY2016, with revenue uplift from the 24 new large berths expected in second quarter of FY2016. Capital Management The Group will continue to focus its capital management on maximising the growth opportunity presented by Main Event in the US. In August 2015, the Group extended its syndicated Australian and US dollar debt facilities with the maturity of facilities spread evenly over three, four, and five years. In addition, the US dollar facility was increased by US$120.0 million to US$280.0 million which will be utilised to fund the growth of Main Event, along with the support of an institutional real estate investor in the US of up to US$100.0 million, the use of the Distribution Reinvestment Plan and retained earnings. Going forward the Group will look to retain a higher percentage of US earnings to contribute to funding of the growth of Main Event. Yours faithfully Alan Shedden Company Secretary

For further information please contact: Deborah Thomas Group CEO (02) 9409 3670 Media inquiries ‐ Tim Allerton City PR Richard Johnson Group CFO (02) 9409 3670 (02) 9267 4511 0412 715 707

Ardent Leisure Group

2015 Full Year Results

Contents

Ardent Leisure Group FY15 Financial Summary, Commentary & Highlights Main Event Entertainment Health Clubs Bowling Theme Parks Marinas Group Financial Results for Year Ended 30 June 2015 Appendices

FY15 FY14 Revenue1 $594.6m $499.7m 19.0% Core earnings2 $56.2m $58.2m (3.3%) Statutory Profit $32.1m $49.0m (34.4%) Core EPS2 12.92c 14.40c (10.3%) DPS 12.50c 13.00c (3.8%)

3

FY15 Financial Summary

Movement based on prior corresponding period (pcp) (1) From operational activities excluding property revaluations, gains on derivative financial instruments, interest income, gain on acquisition and gains on asset disposals. (2) Adjusted for pre-opening expenses, straight lining of fixed rent increases, IFRS depreciation, amortisation of Health Clubs intangible assets, impairment of property plant and equipment and intangible assets, onerous leases costs, property revaluations, unrealised gains on derivative financial instruments, loss on closure of bowling centres, gain on sale and leaseback of family entertainment centres, business acquisition costs and the tax associated with these transactions.

Key Messages

• Outstanding performance continues from Main Event with USD EBITDA up 63.8% driven

by performance of both constant and new centres.

• Six Main Event centres opened in FY15, seven centres planned for FY16 and eight

centres planned for FY17. Currently pursuing opportunities for additional new sites in FY16 and FY17.

• Health Clubs now showing encouraging signs with membership growth significantly

above the prior corresponding period in June and July 2015 underpinned by strong improvement in member attrition across the portfolio and improved sales results, particularly from 24/7 club conversions.

• Bowling recorded positive results with EBITDA up 1.6%1 through a combination of

modest constant centre growth and new centre contributions.

• Outstanding performance of the new Kingpin Darwin centre, which opened on 1 August

2015, supports strategy to transition bowling to multi attraction family entertainment centres.

4

(1) EBITDA grew by 5.0% excluding the one-off make good costs associated with the closures of AMF Randwick in FY15 and Kingpin Richmond in FY14.

Key Messages (cont.)

• Theme Parks delivered solid result with EBITDA for the year being marginally below last

year, despite the unprecedented rainfall and cyclone impact during the peak trading period in Q3.

• Marinas remains robust with result affected by short term impact of lower occupancy at

The Spit during its $5 million redevelopment.

• In August 2015, the Group extended its Australian and US dollar debt facilities and

increased its US dollar facility by US$120 million to provide additional capacity to fund Main Event’s expansion in FY16 and FY17.

• The sale and leaseback of three Main Event centres was completed in June 2015 yielding

US$32 million, with the successful real estate institutional investor agreeing to fund up to US$100 million of new centre developments.

5

• Main Event is now the largest business division and is continuing to grow.
• The Group will benefit from its growing US earnings and any further weakening of the

Australian dollar against the US dollar.

FY14 EBITDA FY15 EBITDA

6 25% 21% 11% 35% 8% 28% 30% 12% 21% 9%

US$’000 FY15 FY14 % Change Total revenue 143,612 89,254 60.9 EBRITDA (ex pre-opening) 52,043 33,513 55.3 Operating margin 36.2% 37.5% Property costs (ex straight line rent) (15,352) (11,112) 38.2 EBITDA 36,691 22,401 63.8 EBITDA margin 25.5% 25.1%

Main Event Entertainment

7

Main Event Entertainment

US$’000 FY15 Revenue FY14 Revenue % Change FY15 EBRITDA FY14 EBRITDA % Change Constant Centres 83,783 77,354 8.3 38,394 35,019 9.6 New Centres1 59,829 11,900 402.8 25,567 5,276 384.6 Corporate & Regional expenses

• (11,918)

(6,782) 75.7 Total 143,612 89,254 60.9 52,043 33,513 55.3

8

(1) New centres include Stafford, TX (opened March 2013), Tempe, AZ (opened November 2013), Alpharetta, GA (opened June 2014), San Antonio West, TX (opened

August 2014), Pharr, TX (opened August 2014), Warrenville, IL (opened September 2014), Parkway Point, GA (opened November 2014), Oklahoma City, OK (opened November 2014) and Tulsa, OK (opened April 2015).

Main Event Full Year Commentary

• Constant centre revenue growth of 8.3% was assisted by a new core food menu, bar

remodels and increased amusement game contribution.

• Value based promotions, growth in corporate, group and social league events and
• ngoing focus on customer satisfaction has driven guest spend.
• Six new centres including two in Oklahoma, one in Illinois, one in Georgia and two in

Texas opened since July 2014. The average revenue of new centres are substantially exceeding the average of the constant centres.

• Main Event now has six out of 20 centres operating successfully outside of Texas,

confirming ability to select and execute new centre development across the country.

• Three centres were successfully sold and leased back with an institutional real estate

investor in June 2015, providing proceeds of US$32.0 million and a gain on sale of US$5.3 million (equivalent to A$7.0 million).

9

Main Event Outlook

• Construction has started on five new sites due to open in FY16 with design/construction

documents completed on a further two sites for FY16 openings:

• Negotiations underway on eight sites for FY17 openings.
• Actively pursuing opportunities for additional new sites in FY16 and FY17.

10

Independence, MO (Q3) Avondale, AZ (Q3) Memphis, TN (Q3) Louisville, KY (Q4) Fort Worth, TX (Q3)

Under Construction Existing Sites

1. Lewisville, TX 2. Grapevine, TX 3. Plano, TX 4.

• Ft. Worth (South), TX

5. Shenandoah, TX 6. Austin (North), TX 7. Webster, TX 8. Lubbock, TX 9. Frisco, TX

• 10. San Antonio (North), TX
• 11. Katy, TX
• 12. Stafford, TX
• 13. Tempe, AZ
• 14. Alpharetta, GA
• 15. Pharr, TX
• 16. San Antonio (West), TX
• 17. Warrenville, IL
• 18. Atlanta, GA
• 19. Oklahoma City, OK
• 20. Tulsa, OK
• 21. Memphis, TN
• 22. Independence, MO
• 23. Forth Worth (North), TX
• 24. Avondale, AZ
• 25. Louisville, KY

11

Main Event Portfolio & Development Sites

Existing Sites Under Development

9 1 2 3 4 8 6 5 10 13 15 11 12

Midwest Sunbelt Texas

16 17 7

Mid Atlantic

21 23 25 24 22 18 14 19 20

Health Clubs

$’000 FY15 FY14 % Change Total revenue 178,388 164,070 8.7 EBRITDA (ex pre-opening) 72,543 70,249 3.3 Operating margin 40.7% 42.8% Property costs (ex straight line rent) (44,391) (36,259) 22.4 EBITDA 28,152 33,990 (17.2) EBITDA margin 15.8% 20.7%

12

Health Clubs

FY15 FY14 % FY15 FY14 % $’000 Revenue Revenue Change EBRITDA EBRITDA Change Constant clubs 148,541 158,370 (6.2) 73,702 81,044 (9.1) Club closed1 173 569 (69.6) 34 161 (78.9) New clubs/acquisitions2 26,839 4,193 540.1 13,319 1,793 642.8 Corporate and regional

• ffice expenses/sales

and marketing 2,835 938 202.2 (14,512) (12,749) 13.8 Total 178,388 164,070 8.7 72,543 70,249 3.3

13

(1) Club closed is Booval (Queensland) closed in December 2014. (2) New centres include Port Melbourne and Camberwell (acquired March 2014), Rockhampton (expansion and refurbishment in September 2014), Fitness First Western Australia acquisition (acquired September 2014), Preston (opened December 2014) and Success (opened April 2015).

Health Clubs Full Year Commentary

• Health Clubs EBITDA was down 17.2% for the year due to competition from 24/7
• perators, which is now being addressed.
• Since Q2, EBITDA trends have improved with Q4 EBITDA of $7.2 million up from $6.5

million in Q3.

• June and July 2015 saw membership growth significantly above the prior corresponding

period underpinned by strong improvement in member attrition across the portfolio and improved sales results, particularly from 24/7 club conversions.

• 24/7 club conversions are on schedule with 15 clubs converted as at 30 June 2015. Sales

in these clubs are up 34.3% and leavers are down 18.1% on prior corresponding periods.

• A change of product strategy has driven a stronger mix of higher value membership

sales in Q3 and Q4, including higher percentages of 12 and 18 month programs.

• Highly experienced Chief Operating Officer has been employed to focus on improved

facilities, staff training and customer service.

• New club in Success (WA) opened with membership ahead of target.

14

Health Clubs Outlook

• Conversion of clubs to large format full service 24/7 operation proving to be a market

disruptor providing significant uplift in membership sales and reduced attrition. A further 30 clubs to be converted during FY16 with a total of 45 clubs scheduled to be in 24/7 operation by 30 June 2016.

• New partnership with Emily Skye, one of the leading online fitness personalities with
• ver six million followers, to provide unique in-club and online Goodlife programs and

e-commerce opportunities.

• Further enhancement to our member service offerings including access to a new

Goodlife digital 24/7 nutrition, fitness and health website.

• Hypoxi Australia studios commenced subscription membership packages with increased

sales and total customer value. Six new studios planned to open in FY16.

• First of two new prototype Hypoxi US studios to open in Scottsdale Arizona in

September 2015 to act as a flagship studio for the Hypoxi US business.

15

Bowling

$’000 FY15 FY14 % Change Total revenue 116,510 113,889 2.3 EBRITDA (ex pre-opening) 40,279 38,907 3.5 Operating margin 34.6% 34.2% Property costs (ex straight line rent) (26,290) (25,142) 4.6 EBITDA1 13,989 13,765 1.6 EBITDA margin 12.0% 12.1%

16

(1) EBITDA grew by 5.0% excluding the one-off make good costs associated with the closures of AMF Randwick in FY15 and Kingpin Richmond in FY14.

Bowling

FY15 FY14 % FY15 FY14 % $’000 Revenue Revenue Change EBRITDA EBRITDA Change Constant centres 110,206 109,755 0.4 52,772 51,381 2.7 Centres closed 1,377 3,816 (63.9) 527 1,568 (66.4) New centres1 4,874 288 1,592.4 2,613 157 1,564.3 Corporate and regional

• ffice expenses/sales

and marketing2 53 30 76.7 (15,633) (14,199) 10.1 Total 116,510 113,889 2.3 40,279 38,907 3.5

17

(1) New centres include City Amusement acquired in May 2014, Playtime Highpoint acquired in November 2014 and AMF Revesby opened in April 2015. (2) Corporate costs increased due to the establishment of a call centre, strengthening of the sales team and a new Operations Manager role.

Bowling Full Year Commentary

18

• EBITDA up 1.6%1 through a combination of modest constant centre growth and growth

from acquisitions. Operating margin increased from 34.2% to 34.6%.

• Initiatives launched during the year include an online booking engine for social bowling

and birthday parties, customer call centre for AMF, and a new food menu in the top 20 AMF locations.

• New centres opened during the year included Playtime Highpoint (acquired November

2014) and AMF Revesby (opened April 2015). Kingpin Darwin opened on 1 August 2015.

• During the year AMF exited three centres – Randwick, Chadstone and Launceston.

(1) EBITDA grew by 5.0% excluding the one-off make good costs associated with the closures of AMF Randwick in FY15 and Kingpin Richmond in FY14.

Bowling Outlook

• Reviewing opportunities to convert key locations to multi attraction family

entertainment centres (FEC).

• Darwin FEC has had an exceptional first two weeks of trading results.
• Continue to pursue further opportunities to acquire “stand alone” amusement arcades.
• Digital initiatives will continue to be executed, including a new website launched in July

2015 and mobile app planned later in FY16.

• Underperforming non-core centres will be progressively divested.

19

20

Kingpin Darwin

Kingpin Darwin

21

22

Kingpin Darwin

$’000 FY15 FY14 % Change Total revenue 99,571 100,139 (0.6) EBRITDA 33,163 33,867 (2.1) Operating margin 33.3% 33.8% Property costs (1,148) (1,068) 7.5 EBITDA 32,015 32,799 (2.4) EBITDA margin 32.2% 32.8% Attendance 2,281,606 2,042,164 11.7 Per capita spend ($) 43.64 49.04 (11.0)

Theme Parks

23

• Solid result despite unprecedented rainfall and the impact of Cyclone Marcia in Q31.
• Successful June 2016 pass marketing campaign and competitive pricing has delivered

28% pass holder growth across May, June and July 2015.

• Strong growth continued from two largest international markets being New Zealand and

China.

• Investment in online and digital marketing strategies continued with online sales now

38% of total revenue.

• During the year, Dreamworld launched four new food and beverage outlets - Green

Bean Coffee Co, Dough Bros Pizzeria, Food Central Burger Bar and The Sandwich Shop to further improve guest experience.

Theme Parks Full Year Commentary

24

(1) 817mm of rain January to March 2015 vs. 242mm in prior corresponding quarter.

• The new ABC Kids World opened in time for June/July school holidays. Dreamworld

Corroboree continues to appeal to group, education and international markets.

• Dreamworld was voted Queensland’s Best Major Tourist Attraction and Australia’s third

most popular tourist attraction at the annual Australian Tourism Awards.

• Dreamworld has also recently been voted ‘best amusement park - South Pacific’ in the

2015 Trip Advisor’s Travellers’ Choice Awards.

• SkyPoint business performed well with attendance growth of over 40% from pass

holders and international markets.

Theme Parks Full Year Commentary (cont.)

25

• Further digital technology to drive revenue, improve the customer experience and collect

more granular data will be introduced in Q2 FY16.

• Tiger Cub born in July 2015 will provide a unique reason to visit during the September

school holidays.

• Further investment in Food and Beverage and Retail outlets in FY16 will improve the in-

park experience and drive spend.

• Dreamworld is well placed to benefit from the new billion dollar Coomera Town Centre

which will be opening adjacent to the park in December 2017.

• The weaker Australian dollar is expected to increase international visitation to the Gold

Coast along with recently announced twice weekly direct Jetstar flights between the Gold Coast and China. The weaker Australian dollar is also expected to encourage Australians to holiday domestically.

Theme Parks Outlook

26

Marinas

$’000 FY15 FY14 % Change Total revenue 22,952 23,466 (2.2) EBRITDA 12,765 12,944 (1.4) Operating margin 55.6% 55.2% Property costs (2,615) (2,548) 2.6 EBITDA 10,150 10,396 (2.4) EBITDA margin 44.2% 44.3%

27

Marinas Revenue Breakdown

$’000 FY15 FY14 % Change Berthing 12,865 12,812 0.4 Land 5,220 5,375 (2.9) Fuel and other 4,867 5,279 (7.8) Total 22,952 23,466 (2.2)

28

Marinas Full Year Commentary

• EBITDA was down marginally for the year, impacted by lower occupancy at The Spit in

Q4 FY15 as a result of a $5 million redevelopment, which is expected to complete in Q1 FY16.

• Despite the above, full year occupancy grew from 84.2% to 85.5% with a slight decrease

in average berthing rates.

• Costs well controlled with an operating margin of 55.6%.
• Revenue impacted by minor land vacancies at Nelson Bay and Pier 35 and weaker fuel

sales in H2.

29

• Revenue uplift at The Spit from 24 new large berths should start to be realised in Q2

FY16.

• Continued focus on digital initiatives (website, mobile application) to improve

customer engagement and retention.

• Pursuing opportunity to create value through selective redevelopment and

refurbishment.

Outlook

30

Group Financial Results for the Year Ended 30 June 2015

(1) Excludes pre-opening expenses (2) Excludes straight line rent and onerous lease costs

32

$ million Theme Parks Marinas Bowling Main Event Health Clubs Other Group Total Group Total % Change Operating revenue 99.6 22.9 116.5 177.1 178.4 0.1 594.6 499.7 19.0% Division EBRITDA1 33.2 12.8 40.3 64.4 72.5

• 223.2

192.8 15.8% Property costs2 (1.2) (2.7) (26.3) (18.7) (44.3)

• (93.2)

(77.1) 20.9% Division EBITDA1,2 32.0 10.1 14.0 45.7 28.2

• 130.0

115.7 12.4% Depreciation and amortisation3 (5.4) (0.9) (7.9) (12.0) (10.0) (0.8) (37.0) (27.2) 36.0% Division EBIT1,2,3 26.6 9.2 6.1 33.7 18.2 (0.8) 93.0 88.5 5.1% Corporate costs4 (15.0) (12.5) 20.0% (0.5) (0.5)

• (0.1)
• Interest income

0.1 0.2 (50.0%) Interest expense (11.3) (11.3)

• Tax4

(10.0) (6.2) 61.3% 56.2 58.2 (3.3%) FY15 FY14 Loss on disposal of assets4 Other expenses (including derivative gains and losses)4 Core earnings

(3) Excludes IFRS depreciation, amortisation of Health Clubs intangibles, impairment of property, plant and equipment and intangible assets (4) Normalised to exclude adjustments to core earnings – see slide 42

FY15 FY15 routine capex development capex $m $m Theme Parks 7.8

• Marinas

2.2 2.6 Bowling 6.0 8.5 Main Event 9.7 78.1 Health Clubs 13.8 4.6 Corporate 2.2

• Total

41.7 93.8 Depreciation (excl IFRS) 37.0

• Capital Expenditure

33

(1) Includes capex spent on developments completed in FY15 and developments scheduled to open in FY16. This includes land and building capex spent on the San Antonio West, Oklahoma City and Tulsa sites, which were subsequently sold and leased back for proceeds of US$32.0m.

1

34

Consolidated group ($ million) 30 June 2015 30 June 2014 Assets Theme Parks 262.7 259.8 Excess land 1.9 2.4 Marinas 109.9 103.7 Bowling 140.9 131.2 Main Event 217.9 138.2 Health Clubs 250.4 211.7 Other 12.8 6.0 Total Assets 996.5 853.0 Liabilities Bank debt 278.6 260.2 Other 138.4 87.3 Total Liabilities 417.0 347.5 Net Assets 579.5 505.5

• The Group should be viewed in two distinct geographical parts – Australia and the

United States.

• The Australian Group is more mature, lower growth and is less capex intensive.
• The US Group (Main Event) has a national US rollout opportunity, which will

require significant capital investment to realise.

• The funding of Main Event’s growth will be assisted by up to US$100 million of

development funding from an institutional real estate investor, along with an additional US$120 million from the recent extension of the Group’s US dollar debt facility.

• As part of the Group’s capital management plan, the Group will continue to use the

Distribution Reinvestment Plan (DRP). In addition, going forward the Group will look to retain a higher percentage of US earnings to contribute to funding the growth of Main Event.

Capital Management

35

• At 30 June 2015, the Group had the following bank facilities:
• In August 2015, the Group increased and extended its syndicated Australian and US

dollar banking facilities to A$200 million and US$280 million. The facilities are spread evenly over 3, 4 and 5 year maturities at improved margins. Facility $m Drawn $m A$ maturing July 2016 100.0 100.0 A$ maturing July 2017 100.0 44.4 US$ maturing July 2016 (US$90m) 117.2 93.9 US$ maturing July 2017 (US$70m) 91.1 41.5 408.3 279.8

Capital Management – Bank Facilities

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• There are two covenants in place for the Group facility:
• Gearing (debt / debt + equity) equated to 32.56% at 30 June 2015. There is no

gearing covenant. Covenant Group 30 June 2015 Fixed Charge Cover Ratio (FCCR) >1.751 2.05 Debt Serviceability Ratio (DSR) <3.751 2.56

Capital Management – Bank Covenants

37

(1) The DSR was temporarily increased from 3.25x to 3.75x to 30 September 2015 pending the sale and leaseback of Main Event properties and the extension of the existing bank facilities. The new refinancing effective 11 August 2015 has the DSR covenant set at <3.50x for the period to 30 June 2017 and <3.25x thereafter. The FCCR covenant remains at >1.75x.

• At 30 June 2015, the Group had 46.9% of interest on debt facilities fixed through

interest rate swaps.

• At 30 June 2015, the weighted average rate, including margin, was 4.28% for AUD

debt and 1.92% for USD debt.

• US earnings are 100% unhedged and will benefit from any further weakening of the

Australian dollar against the US dollar.

Capital Management – Interest & Foreign Exchange

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Group Outlook

The Group will:

• Drive top line revenue with innovative products, effective marketing, improved digital

capabilities and great customer service.

• Focus on maximising Main Event’s national US roll-out opportunity and deploy the

majority of capital to achieve this.

• Continue to convert as many Goodlife health clubs to 24/7 as possible to drive sales

growth and reduce member attrition.

• Reposition bowling as a broad-based, multi attraction entertainment experience.
• Continue to invest in the Theme Parks’ customer experience (product and service) and

the park master plan to fully benefit from the new adjacent Coomera town centre.

• Selectively invest in the d’Albora portfolio to maximise development opportunities and

investment returns.

Group Outlook

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Appendices

Appendix 1

Core earnings reconciliation to statutory profit $ million FY15 FY14 % Change Core earnings 56.2 58.2 (3.3%) Pre-opening expenses (6.5) (2.6) 150.0% Straight lining of fixed rent increases (2.3) (1.5) 53.3% IFRS depreciation (11.1) (8.6) 29.1% Amortisation of Health Clubs intangibles (6.8) (6.4) 6.3% Impairment of intangible assets (0.1)

• Impairment of property, plant and equipment

(2.7)

• Onerous lease costs

(2.6)

• Valuation losses - investment properties

(0.5)

• Valuation gains - property, plant and equipment
• 8.6

(100.0%) Unrealised gain/(loss) on derivatives 0.5 (0.6) (183.3%) Loss on closure of bowling centres (0.1) (1.6) (93.8%) Gain on sale and leaseback of family entertainment centres 7.0 0.4 1650.0% Business acquisition costs (1.9) (0.3) 533.3% Tax impact of adjustments 3.0 3.4 (11.8%) Statutory profit 32.1 49.0 (34.5%)

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Appendix 2 - Property valuations

(1) Property values at 30 June 2014 plus 12 month capex less 12 month depreciation. (2) Revaluation occurred at 31 December 2014.

43

Book value Pre reval Book value Post reval $m $m DW/WWW 1 227.5 227.5

• - Cap rate/ DCF

SkyPoint 1 22.3 26.5 4.2

18.8 Cap rate/ DCF

Excess land 1 2.4 1.9 (0.5)

(20.8) Direct comparison

Marinas 7 104.3 104.3

• Cap rate/ DCF

Bowling Freehold 1 1.9 1.9

• Vacant possession,

highest and best use

Total 11 358.4 362.1 3.7

1.0 Valuation methodology

Property

• No. of

Assets Change $m

% change

2

1

Disclaimer

This information has been prepared for general information purposes only, is not general financial product advice and has been prepared by Ardent Leisure Management Limited ABN 36 079 630 676 (ALML), without taking into account any potential investors’ personal objectives, financial situation or needs. Past performance information provided in this presentation may not be a reliable indication of future performance. Due care and attention has been exercised in the preparation of forecast information, however, forecasts, by their very nature, are subject to uncertainty and contingencies many of which are outside the control of ALML and Ardent Leisure Limited (ALL). Actual results may vary from forecasts and any variation may be materially positive or negative. ALML provides a limited $5 million guarantee to the Australian Securities and Investments Commission in respect of ALML's Corporations Act obligations as a responsible entity of managed investment schemes. Neither ALML nor any other Ardent Leisure Group entity

• therwise provides assurances in respect of the obligations of any entity within Ardent Leisure Group.

The information contained herein is current as at the date of this presentation unless specified otherwise.

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