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ASX Additional Information

An analysis of the last five years is outlined below:

PREVIOUS
AIFRS AGAAP
2008 2007 2006 2005 2004
Total operating revenue and other income ($’000) 619,528 628,905 614,612 598,976 481,497
Net profit/(loss)^ ($’000) 99,369 82,195 59,441 45,651 (31,168)
Basic earnings per share (cents) 77.3 64.6 47.3 36.4 (25.0)
Dividends declared ($’000) 38,738 35,854 30,261 23,268 16,226
Dividends per share (cents) 30.0 28.0 24.0 18.5 13.0

^ Net profit/(loss) after individually significant items, net finance costs, minority interest and income tax.

Investments

The Group acquired property, plant and
equipment totalling $32,888,000 during the
year. This figure excludes capital expenditure
incurred through partnerships’ activities. The
acquisitions were primarily attributable to the
expansion of the existing cinema circuits,
refurbishment requirements for the cinemas,
hotels and resorts, the infrastructure and
operational requirements for the Thredbo
Alpine Resort.

Capital structure

During the year, 577,300 ordinary shares
were issued as a result of employees
exercising options granted under the
Management Share Option Plan. Funds
raised from the exercise of these ordinary
share options amounted to $1,779,755. In
addition, 473,182 performance shares were
issued to employees under the Executive
Performance Share Plan.

Borrowings decreased by $156,556,000
during the year. The net debt to book equity
ratio has decreased to 1.5% as at
30 June 2008 (2007: 34%).

Treasury policy

The Group’s treasury function is responsible
for managing interest rate and currency risks
and finance facilities. The treasury
department operates within policies
established by the Board. The Group
manages interest rate risk in accordance
with a Board approved policy covering the
types of instruments that can be used, and
the range of protection and duration that
instruments can be taken out for. Maturities
of instruments to hedge interest rate risk are
up to a maximum of five years. Interest rate
swap contracts are generally used to swap
a portion of long term borrowings at floating
rates into fixed rates. The Group currently
hedges interest bearing debt in EUR and
NZD with cover at 30 June 2008 extending
to June 2010 in EUR and December 2009
in NZD. At 30 June 2008, the Group had
52% (2007: 56%) of debt hedged.

The Group enters into a small number of
forward contracts to hedge a proportion of
anticipated purchase and sales commitments
denominated in foreign currencies, principally
US dollars.

Liquidity and funding

The Group’s main bank facilities comprise of:

•
A$160,000,000 of revolving multi-
currency loan facilities;
•
A$70,000,000 of cash advance facilities
which are rolling 364-day facilities; and
•
A$38,750,000 of credit support facilities
(for the issue of letters of credit and
bank guarantees).
All the above facilities mature on
10 July 2012. Under the revolving multi-
currency facilities amounts can be borrowed
either in Australian dollars, New Zealand
dollars, Euro or United States dollars.

In addition to the above facilities, the Group
has a total of A$5,050,000 in overdraft limits
to support its transactional banking facilities.
All facilities are secured by specific property
mortgages over a number of the Group’s
properties and are supported by interlocking
guarantees by defined Group entities.

Additionally, wholly owned subsidiaries in
Germany have working capital and bank
guarantee facilities totalling c9,920,000
(A$16,273,000), supported by a letter of
credit and bank guarantees drawn under
the Credit Support facility in Australia, and
a further c5,340,000 (A$8,760,000) working
capital and bank guarantee facility which is
supported by the Company.

Use of funds under the Group’s main bank
facilities is limited by certain undertakings,
however it is considered that the Group has
sufficient bank facilities available to meet any
investment opportunities and seasonal
fluctuations in working capital requirements.

Cash flows from operations

Operating net cash inflows increased to
$103,002,000 from $63,051,000 in the year
to 30 June 2007. This increase was mostly
attributable to higher receipts, higher
distribution from associates and partnerships,
reduced borrowing costs as a result of lower
debt levels and working capital movements.

Impact of legislation and
other external requirements

There were no changes in environmental or
other legislative requirements during the year
that have significantly impacted the results of
operations of the Group.

REVIEW OF OPERATIONS
BY DIVISION

The Managing Director’s review of operations
is set out on pages 8 to 13.

STRATEGIC PLANS
BY DIVISION

The Group’s strategic plan, which includes
future expansion, will depend on industry,
economic and political conditions, the
potential impact of global events, the future
financial performance and available capital,
the competitive environment, evolving
customer needs and trends, and the
availability of attractive opportunities. It is
likely that the Group’s strategies will continue
to evolve and change in response to these
and other factors, and there can be no
absolute assurance that these current
strategies, as detailed below, will be achieved.

ENTERTAINMENT

The strategic plans for Entertainment are
applicable to both the domestic and
international cinema businesses.

Cinema Exhibition —
Domestic and International

Enhancing the customer
experience

Whilst the Group has no control over the
general audience appeal of available films,
providing consumers with a demonstrably
superior experience in the cinema to that
which can be achieved in the home, is a
central strategic platform. To provide this
enhanced cinema experience the Group
will pursue the following strategies:

•
expansion of the Gold Class cinema
concept to certain cinema locations
within the Australian domestic circuit;