SkyCity Entertainment Group Limited (SKC) Earnings Call Transcript & Summary

[Foreign Language]

Kia ora [Foreign Language]. Good morning, ladies and gentlemen. [Foreign Language] the welcome from Ngati Whatua Orakei [Foreign Language] for SkyCity. [Foreign Language] Rob Campbell, [Foreign Language], Chair of SkyCity, and it's my pleasure to welcome shareholders to the 2021 SkyCity Annual Meeting. Thank you for joining us online today. Instructions on how to participate virtually are set out in the virtual meeting guide previously sent to shareholders and bondholders. Moving to the business for today. I declare the 27th Annual Meeting of SkyCity open and confirm that the meeting has been duly convened with a quorum present. Audio will stream through your selected device. So please ensure that the volume control on your headphones or device is turned up. Shareholders can view the presentations today, ask questions and vote on the resolutions to be put to shareholders on their selected devices. Bondholders, who are not also shareholders, can view the presentations today, but are not able to vote on the resolutions or ask questions on their selected devices. Shareholders can submit questions at any time. [Operator Instructions] If your question relates to 1 of the 4 formal resolutions set out in the Notice of Meeting, please note in your question which resolution your question relates to. Please note that while you can submit questions from now, I will not address them until the relevant part of the meeting. Please also note that your questions may be moderated or if we receive multiple questions on one topic, amalgamate it together. Due to the time constraints, we may not be able to answer all of your questions. The Q&A tab can also be used if you require any assistance. Submit your query in the same manner as tagging a question, and a Computershare representative will respond to you directly. Alternatively, you can call Computershare at the number on the screen. Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, I will shortly open voting for all resolutions. At that time, if you are eligible to vote at this meeting, the resolutions and voting options will appear. To vote, simply select your voting direction from the options shown on screen. You can vote for all resolutions at once or by each resolution. Your vote has been cast when the green tick appears. To change your vote, select change your vote at any time before I declare voting closed. I now declare voting open on all items of business. The resolutions and voting options will soon appear on your device, if you're eligible to vote at this meeting. Please submit your votes at any time. I will give you a warning before I move to close voting. In the event you experience any technological issues today, a recording of today's meeting will also be available on the company's website following the meeting. The minutes of the 2020 SkyCity Annual Meeting held on the 16th of October last year have been posted on the company's website and are held by the company secretary. These minutes are available for inspection by any shareholder or bondholder should they wish to do so. I will now introduce SkyCity's Board and management in attendance. Due to the ongoing international and Auckland border restrictions, our Australian-based directors, Jennifer Owen and Chad Barton, joined the meeting today remotely. Our New Zealand-based directors outside of Auckland, Sue Suckling and Julian Cook, also joined the meeting today remotely. In attendance with me today in the SkyCity Theater in Auckland, appropriately distanced, to my left, Michael Ahearne, SkyCity's Chief Executive Officer; Jo Wong, SkyCity's General Counsel and Company Secretary; and next to Jo, Director Silvana Schenone. In attendance in the room but off camera, Julie Amey, SkyCity's Chief Financial Officer; and Callum Mallett, SkyCity's Chief Operating Officer, New Zealand. Richard Day, our lead audit partner from PricewaterhouseCoopers, is also joining the meeting today remotely. The business of the meeting today is as set out in the notice of meeting. Firstly, I will present my Chair's address. A video presentation showcasing the SkyCity properties and the highlights across the business over the past financial year will then play. SkyCity's Chief Executive Officer, Michael Ahearne, will then summarize SkyCity's performance during the past financial year and provide an update on current trading. A general question-and-answer period session will then follow on matters relating to the management and operations of the company. We will then move to the 4 previously notified resolutions for consideration by the meeting, including any questions and discussion in respect of those resolutions. Turning now to my address. Recently, I confirmed my intention to step down as Chair and committed to a smooth transition in the governance of the business. That process has commenced as we seek to appoint a new Chair, and we will also be seeking 2 directors for the Board. It's the Board's intention, once this is all achieved, to maintain a casino and entertainment business, which is characterized by 5 main themes. First, a really high-quality of service and facilities. We spend and have spent and will continue to spend money, continuously upgrading existing services and facilities to meet the needs of our customers. That leads to the second, a real focus on customer enjoyment and safety. SkyCity is a safe and responsible place to game or to have your chosen entertainment. Thirdly, a focus on staff safety, a focus on inclusion, on diversity and satisfaction from a job well done. Fourthly, a strong sense in practice of social and environmental responsibility and ethical conduct in everything that we do. And fifth, strong economic performance and good investment returns. In achieving these things, SkyCity aims at the highest levels of compliance, the highest levels of customer safety and sound returns to the people invested in our business. The past year has been very challenging for SkyCity, largely due to the COVID-19 pandemic. Despite the ongoing disruption to greater or lesser extents at every one of our properties, the business has maintained a strong position and, in my belief, is well poised to profit sensibly and safely from the return of our societies in Australia and New Zealand to a much more free movement of people. We have a refreshed leadership team under Michael Ahearne. We've delivered in the circumstances what we consider to be credible operating performance. We've made steady progress on enhancements to host responsibility and to anti-money laundering controls in all of our locations. We've delivered the Adelaide expansion project, which is a marvelous facility, for people to be entertained, for tourists or locals in Adelaide. We resumed dividends for shareholders during the year, and while the current trading situation, which will be outlined by Michael later, means that the return to dividends is now again disrupted, it is the firm intention of the business to resume that course as soon as it's practically possible. And most importantly, probably of all, we've protected the health and well-being of our people through this difficult period. We look ahead to a business operating under strong financial and capital expenditure controls, avoidance of disruptive projects and a strong focus on performance and limitation of risk. The aim is stable earnings from a stable business. The renewal of the Board during the year and the ongoing renewal, which will result from the actions that we're taking now, has confirmed governance of the business is having diverse skills, backgrounds and experience in its leadership. We have completed a review of Board effectiveness, and further work is being done on that as the Board examines its own performance through this difficult period. The Board and management are aligned in responding to challenges, managing risks and addressing those strategic opportunities, which do arise. We're confident of our ability to meet investor expectations even though the external environment does remain uncertain. Most of all, we're focused on maintaining a strong balance sheet and a disciplined approach to capital allocation. Personally, I thank you, the shareholders, for the opportunity to serve this business in the years I have been doing so and also extend my thanks to the wonderful staff of SkyCity, our management and customers who have always been supportive. [Presentation]

Thanks, Rob, and welcome, everyone, to our 2021 Annual Meeting. It's great to be presenting today at my first annual meeting as CEO. As I said, at the time of announcement of our full year results in August 2021, it's a real privilege to be the CEO of SkyCity. FY '21 was a challenging year for SkyCity, responding to external events arising from the COVID-19 pandemic, opening the Adelaide expansion in a COVID-19-impacted environment and managing the business in a challenging operating and regulatory landscape. It has taken significant skill, energy and dedication from our team and support from stakeholders to deliver a satisfactory performance for the business. We were reasonably pleased with the quality of the FY '21 result given the operational challenges, with our domestic gaming business being the standout performer. FY '21 group normalized EBITDA was well up on FY '20 and around 83% of the FY '19 like-for-like comparative, a pretty good result given the operating environment and ongoing disruptions from COVID-19. We believe there's a clear pathway back to FY '19 earnings when our properties are open and operating without COVID-19 restrictions, led by our domestic gaming business and an optimized Adelaide expansion. Clearly, an immediate priority for me as CEO has been to refresh our group strategic plan, implement the new management structure and bed down the team, in addition to navigating the ongoing uncertainty arising from COVID-19. To this end, we have secured key management appointments over the period, and I am confident we have the right team in place to take the business forward. Our new Chief Financial Officer, Julie Amey, and new Chief Operating Officer, New Zealand, Callum Mallett, are with me in attendance today. We now have world-class integrated entertainment facilities in Adelaide with the Adelaide expansion opening on time, on budget in December 2020. The Adelaide property performed consistently well across all business activities post opening of the expansion before being curtailed more recently by the property closure in late July '21 and ongoing COVID-19 restrictions and interstate border closures. In Auckland, reinstatement works are progressing post the fire at the NZ International Convention Centre and Horizon Hotel development site. But these are progressing slower than expected, and we now expect the Horizon Hotel to be delivered in 2024 and the convention center in 2025. There are heightened expectations from regulators in relation to our host responsibility and anti-money laundering obligations across the SkyCity Group, which I will discuss in more detail later in my presentation. We continue to liaise with AUSTRAC in relation to its enforcement investigation into SkyCity Adelaide, which commenced in June 2021. Pleasingly, our balance sheet is in a strong position following the implementation of a comprehensive funding plan in mid-2020. We confidently met our financial covenants for the 30 June, 2021 testing period, and the SkyCity Board declared a dividend of $0.07 per share for FY '21. I would like to take this opportunity to thank our shareholders for their support and patience over the last 12 to 18 months, which has been an extraordinarily challenging time for the business. The New Zealand government has very recently announced a transition from the COVID-19 Alert Level system to a new COVID-19 Protection Framework, a traffic-light model that does not rely on lockdowns as the main measure to stop the virus spreading, but rather high vaccination coverage and the implementation of a vaccination entry requirement across certain higher-risk indoor settings. The new system will come into place when 90% of eligible New Zealanders are fully vaccinated. The expectation is that the 3 Auckland District Health Boards will achieve this milestone by late November, early December 2021, at which point Auckland will step into the traffic light framework at the Red level. The new traffic light model will effectively end lockdowns as the primary response to national regional outbreaks in New Zealand. At all levels, Red, Orange and Green, businesses, retail and public facilities are generally able to remain open for vaccinated people. Accordingly, our intention is that all SkyCity properties in New Zealand will operate as vaccination-only venues when the new framework comes into effect, a decision that has been made with the health and safety of our staff and customers in mind. SkyCity continues to be significantly impacted by the ongoing COVID-19 disruptions in New Zealand, in particular at our flagship property in Auckland and more recently, in Hamilton. With Auckland currently at Alert Level 3, our Auckland facilities continue to remain closed, having been closed now for 72 days since the lockdown began on 17 August, 2021 in response to the Delta outbreak. The EBITDA impact of being closed in Auckland and Hamilton continues to be significant with around $1 million of lost earnings per day. The SkyCity Board and management made the decision to claim the New Zealand wage subsidy for our Auckland staff from mid-September 2021 and for our Hamilton staff from early October 2021, having not claimed the subsidy for the first month of the lockdown. Keeping our staff employed and retained during this period is a key priority for us. The story in South Australia from a COVID-19 point of view is different to New Zealand with the state remaining largely free of COVID-19. SkyCity Adelaide remains open but with operational restrictions around capacity and mandatory mask wearing indoors -- and mask wearing following a local outbreak in late 2021, which forced the property to close for 8 days. Interstate borders are largely closed to South Australia. The South Australian government has taken a cautious approach to prevent a local outbreak whilst the population is being vaccinated, including recommending people work from home where possible, which has particularly impacted visitation to the Adelaide CBD. The recent performance of our Queenstown and Adelaide properties when open has been subdued due to the operating restrictions and ongoing border closures. Our balance sheet is in a strong position. We currently have total liquidity of around $240 million to respond to further COVID-19 disruptions, one-off events and/or a more protracted economic recovery in New Zealand and Australia. We are focused on effective cost and capital discipline and are pursuing cost-saving initiatives in response to the ongoing COVID-19 disruptions and a significant reduction in FY '22 stay-in-business CapEx. The significant debt restructure completed by the company during FY '21 positions our capital structure well for the future. However, in response to the ongoing COVID-19 disruptions in New Zealand, and in particular, the prolonged lockdown in Auckland, we have prudently engaged with our financiers to discuss a debt covenant -- gearing covenant waiver for our December 2021 testing period to enable full access to our committed liquidity headroom. We remain committed to our BBB- credit rating from S&P Global Ratings, our credit rating having been upgraded to a stable outlook from negative during April 2021. We remain in regular contact with S&P and expect S&P will look through the temporary impact of the COVID-19 disruptions when assessing our rating. Our refreshed group strategy was announced at the time of our FY '21 interim results in February and prioritizes a focus on our core business, executing our major projects in Adelaide and Auckland and delivering on the omnichannel opportunity and the efficient allocation of capital. I'm pleased to say that we've made positive progress over the last 12 months against our key strategic priorities, specifically the ongoing management of the COVID-19 operating environment, with positive local gaming activity when open, underpinned by leveraging new assets and good cost execution across the business, driving operational excellence at our core. The Adelaide expansion was completed on time and on budget, opening in December 2020, with the investment now being optimized and the adjacent Festival car park now integrated. The Adelaide property has performed consistently well across all business activities post opening of the expansion, but has faced a more challenging operating environment since July 2021 due to COVID-19 disruptions and ongoing interstate border closures. And there are many positive catalysts ahead, subject to operating restrictions being positively relaxed. We take -- we took possession of around 750 car park spaces from the start of FY '22, and as the borders progressively open, we expect to be able to address the interstate market and, in time, the international market more meaningfully. We continue to work closely with Fletcher Construction on the New Zealand International Convention Centre and Horizon Hotel project. Fletchers has recently delivered a comprehensive project plan, and we now expect completion of the Horizon Hotel in 2024 and convention center in early 2025. There is significant work taking place on the ground, but with limitations due to health and safety requirements at Alert Level 3. We remain comfortable with our contractual position with Fletchers and have secured an extension to the completion long stop date with the New Zealand government to December 2027. There is no change to the expected total project costs of around $750 million. Optimizing the SkyCity Online Casino and preparing for online gaming regulation in New Zealand should that arise, the growth of our online casino has been a real highlight of the period. We have continued to optimize the site with our partner, GiG, despite operational constraints, and we have seen a significant increase in revenue and EBITDA versus the prior comparative period. Trading has been strong during FY '22, the online business benefiting from the escalation in alert levels in New Zealand, with record customer activity during September 2021 and year-to-date revenue well up on the prior comparative period. And we remain supportive of online gaming regulation in New Zealand. The Department of Internal Affairs' policy review into online gaming is continuing, and we expect an update on progress over the next few months. A critical feature of our strategic framework is to protect and enhance our social license and casino licenses. Steady progress has been made with initiatives to enhance SkyCity's group-wide host responsibility and anti-money laundering control frameworks, but more work needs to be done. Host responsibility to customers remains a key focus with appropriate effort, resource and capital allocated to support this initiative. Over the past year, we have enhanced and increased our resourcing and invested in new systems, including the implementation of Phase 2 of facial recognition technology to assist SkyCity in identifying customers who remain within the casino for extended periods at the SkyCity Auckland and Hamilton casinos. This initiative is currently being trialed at the SkyCity Adelaide casino. We are committed to ensuring that we provide safe and responsible experiences and environments and place significant importance on our host responsibility and anti-money laundering obligations. There is heightened level of scrutiny in the gaming sector, particularly around anti-money laundry compliance following the Crown inquiry in New South Wales and Royal Commissions in Victoria and Western Australia and, more recently, the announcement of a public inquiry into Star Entertainment Group initiated by the New South Wales Independent Liquor and Gaming Authority. We are taking the concerns raised by AUSTRAC through its compliance review and subsequent enforcement investigation of SkyCity Adelaide seriously and have taken immediate steps to investigate and appropriately address the concerns raised. We will continue to fully cooperate with AUSTRAC with regular engagement and provision of information as appropriate. We have had constructive engagement with AUSTRAC and are committed to ongoing dialogue. We remain firmly committed to continuous improvement of our anti-money laundering practices across the group. In terms of our strategic priorities for FY '22, we are, in the first instance, continuing to focus on navigating through the ongoing uncertainty of the COVID-19 operating environment, including managing our balance sheet effectively to ensure financial resilience, responding to the AUSTRAC enforcement investigation into SkyCity Adelaide and enhancing our host responsibility programs and anti-money laundering controls. Optimizing the Adelaide expansion and delivering on the investment thesis remains an ongoing focus for the company as does progressing the reinstatement of the New Zealand International Convention Centre and Horizon Hotel project with Fletcher Construction. We remain hopeful of clarity around the regulation of online gaming in New Zealand over the coming months and are committed to pursuing the omnichannel opportunity in New Zealand. In terms of the outlook for FY '22, given the changeable operating settings and uncertain near-term outlook due to COVID-19, we are unable to provide earnings guidance for FY '22 at this time, but this remains under constant review. Trading over the course of the first half of the financial year has been materially impacted by the COVID-19 restrictions, in particular the ongoing lockdown in the Auckland region, and consequently, the company's first half earnings are expected to be impacted from the difficult trading conditions. A prolonged extension of the lockdown in the Auckland region and other restrictions across the rest of New Zealand and South Australia could have a further impact on the company's first half performance. We are, however, well prepared for managing the business through COVID-19 and expect: our local gaming businesses in New Zealand to perform well when open and no operating restrictions, particularly electronic gaming machines; the Adelaide expansion to be optimized, albeit with a slower ramp-up given the operating restrictions and ongoing interstate closures; continued good performance from the SkyCity Online Casino; and our tourism businesses will continue to be negatively impacted by international border closures, which are expected to remain largely closed for the duration of FY '22. In concluding, I would like to take the opportunity to publicly thank the SkyCity Board and management team and, in particular, the broader SkyCity team for effectively meeting the challenges over the past year, for continuing to support the business as it recovers. Your efforts are greatly appreciated. I would also like to thank Rob Campbell, our Chair, who is stepping down from the role. Rob has been an outstanding Chair, managing the business admirably during significant events such as the fire at the convention center and COVID-19. He's provided wise counsel to me during my transition into the CEO role and has been very supportive of the broader management team. We wish you well for the future, Rob. I often say SkyCity is a great business, and I mean it. We have world-class assets, leveraged to the recovery of gaming, hospitality and tourism over the medium term with an exciting opportunity to deliver on the promise of our major projects in Adelaide and Auckland and the omnichannel opportunity and grow shareholder value. I am very excited for the future. Finally, and most importantly, to our external stakeholders, from our shareholders, financiers, suppliers, through to our customers, SkyCity doesn't exist without you. A big thank you for your ongoing support, and stay safe.

Thank you, Michael. Shareholders, you can see that your support for the company is in very good, safe and dedicated management hands. In the notice of the meeting, we invited shareholders and bondholders to submit questions prior to the annual meeting. No questions were received by the deadline. I now open the meeting for questions and comments from shareholders or from anyone who has been appointed as a proxy or a corporate representative. I'll either answer the question myself, if it's a really easy one, or redirect it to a Board member or to the Chief Executive Officer, as may be appropriate, if it's a bit more testing. Turning now to the questions raised about the operations and management of the business. Are there any questions?

Yes, Chair. We have 2 initial questions. The first question is, is the New Zealand International Convention Centre project going to plan in the Board's view? And are all future costs covered by insurance?

Thank you. Well, it's clearly not going to the original plan for fairly obvious reasons. It was delayed in the construction process and then obviously, the fire made things considerably worse. So I think Michael touched on, we now consider that there is a credible plan in place that our construction partner is doing its best in still difficult circumstances to stay to that plan. But the critical things are we have got an extension of the long stop date with the Crown, which is ultimately the client of the convention center part of that development. So that's important. We have good support from the insurers for the costs, which have incurred -- been incurred as a result of the fire. And our contractual position with the -- with Fletcher construction, we consider to be sound. So we -- at this point in time, we've got no reason to think that the costs of the total operation -- construction process will not be within our announced plans. We've got no reason to make a change in that. The biggest disruption is simply that it hasn't been finished. So overall, we consider it's under control and that the new plan is credible. Was there another question?

Yes. Thank you, Chair. The second question is, what percentage of gaming machines are jackpot linked? And are jackpot-linked game machines more of an attraction to patrons or not?

I'm going to have to defer to Michael for that, and I think it probably won't be precise, Michael. But...

Yes. I don't have a precise answer for that, Rob. In both our New Zealand and Auckland properties, jackpot games are very popular. It will be in excess of 50% of the machines are jackpot linked, and it's something we're always looking at, what's the latest product and what the customers are playing. But some customers have a preference for nonjackpot-linked machines as well. So we based our decisions on what product to apply in our floors based on customer demand and what's popular at the time.

Yes. Thank you, Michael. If there's a follow-up to that, happy to answer it or if there is another question?

No further questions at this time, Chair.

Thank you. We'll move on with the business in that event. Before we move to the 4 formal resolutions set out in the notice of meeting, I will briefly outline today's voting procedures. Voting will be by way of a poll, and you will need to complete your voting directions online. To vote, simply select your voting direction from the options shown on your screen. Select for, against or abstain for each resolution. You can vote for all resolutions at once or by each resolution. Your vote has been cast when the green tick appears. To change your vote at any time before voting closes, select change your vote. Persons attending the meeting who are not shareholders, proxy holders or corporate representatives of a shareholder may not vote on today's resolutions. Many shareholders who are not attending this meeting have already voted by proxy. Approximately 546 million proxy votes, representing approximately 72% of the shares on issue, were received prior to the cutoff for proxy voting at 1 p.m. on Wednesday, the 27th of October. We'll now move to the 4 formal resolutions to be considered by the meeting. The first 3 items of business concern the election of directors. In accordance with the NZX Listing Rules, Silvana Schenone, Julian Cook and Chad Barton retire at this meeting and, being eligible, offer themselves for election. It is my pleasure to move resolution 1, to elect Silvana Schenone as a director of the company. Silvana was appointed to the SkyCity Board in June '21. The Board considers Silvana to be an independent director and unanimously recommends that shareholders vote in favor of her election. I will now ask Silvana to address the meeting.

[Foreign Language] Kia ora, everyone. Good afternoon, fellow shareholders, ladies and gentlemen. I'm delighted to join you today online on my first annual shareholders' meeting of SkyCity. And I have been asked to briefly introduce myself and the reasons why you should support my election as a director of the group. I believe I can add value to the organization. That's why I'm here. How are my skills relevant to SkyCity? In my role as a senior corporate partner at a major law firm, I regularly help clients, developing and implementing their strategies. We take into account a very broad range of factors and address challenges that always arise along the way. I deal frequently with regulators, and I understand the complexities of highly regulated industries, including how to manage the risks in a pragmatic and effective way. I run a team of people who need motivation and encouragement to do their best, which is critical in times like the ones we're living now with COVID. As a professional adviser, I have helped many businesses grow and adapt to thrive in their particular circumstances, and I expect to be able to do the same for SkyCity. I have a diverse background myself, which is also relevant to the organization, to our workforce and to our customers. SkyCity has a very important role to play in the community. We employ thousands of people, and our commitment to good and fair practices as well as to diversity and authentic leadership will go a long way to create the right culture for a successful organization for the future. I have a reputation for being pragmatic, hardworking and commercial in my approach. I strive for excellence, and I strongly believe in the power of a team. There are a number of challenges ahead of us for the business to continue to thrive. I will work collectively with the rest of the Board, with Michael and his team to apply my experience and skills to this job. I will ensure that we achieve the best possible performance in the challenging circumstances. Fellow shareholders, I want SkyCity to be a leading and ethical entertainment group, recognized broadly for its best practices. My ambition is that every employee, every customer and every shareholder feels proud to be associated with SkyCity. My vision is clear. My goal as a director of SkyCity will be to contribute to building long-term and sustainable value for its shareholders. For those reasons, I'll be very grateful if you cast your vote in favor of my election, and I will do my very best to respond to your trust as a director. Thank you.

Thank you, Silvana. I move that the meeting elects Silvana Schenone as a director. Are there any questions?

No further at this stage, Chair.

Thank you. I have moved the resolution. So I now put the resolution. Shareholders should select their voting direction online for resolution 1. Moving to resolution 2. It is my pleasure to move resolution 2, to elect Julian Cook as a director of the company. Julian was appointed to the SkyCity Board in June 2021. The Board considers Julian to be an independent director and unanimously recommends that shareholders vote in favor of his election. I will now ask Julian to address the meeting, and as noted before, Julian is attending the meeting online. Julian?

Thank you, Rob, and good afternoon, ladies and gentlemen. I was privileged to be appointed a director of SkyCity earlier this year, and today, I offer myself for election to the Board of Directors by shareholders. My background is: 10 years in Macquarie Bank in corporate finance; 10 years at Summerset, the retirement village business, of which 7 were as the CEO. And skills which I can bring to SkyCity as a director include capital markets experience, health and safety from my time chairing the National Health and Safety Committee at Summerset, dealing in regulated industries through my time in [indiscernible] at Summerset and my general experience as a CEO. I believe SkyCity is a great business with a very good future ahead, and I would be honored if you would choose me -- if you would choose to elect me as a director of SkyCity. Thank you.

Thank you, Julian. I move that the meeting elects Julian Cook as a director. Are there any questions?

No further questions at this stage, Chair.

Thank you. I've moved the resolution. So I now put the resolution. Shareholders should select their voting direction online for resolution 2. I'll now move to resolution 3, to elect Chad Barton as a director of the company. Chad was appointed to the SkyCity Board in June 2021. The Board considers Chad to be an independent director and unanimously recommends that shareholders vote in favor of his election. I now ask Chad to address the meeting, which, as we noted before, Chad is attending online. Chad?

Thank you, Rob. Good afternoon, ladies and gentlemen. It's a privilege to be invited by the directors of SkyCity to join the Board earlier this year. And today, I'm seeking your support to be elected to the Board as an independent nonexecutive director. I'm very pleased to be currently serving as a member of the Audit and Risk, People and Culture and Governance and Nominations Committees. I have over 30 years of experience in global and locally listed companies with the diversity of knowledge from people, technology and capital-intensive businesses. In particular, I have an extensive background as a chief financial officer, with responsibilities across corporate strategy, finance, capital markets, investor relations and major capital projects. I also bring significant industry experience in having previously been the chief financial officer for The Star Entertainment Group for over 5 years, having stepped down in 2019. During my time at Star, I had the privilege to be the founding Chair of Women in Gaming & Hospitality. Together with the industry players, including SkyCity, wanted to achieve greater gender equity and support the development and success of women in the gaming industry. It is during this time that I built a high level of respect for SkyCity, its values, the great cities that we operate in and the leadership team. I'm currently the CFO of Nuix Limited, an ASX-listed global software company, and until very recently, I was a nonexecutive director of NeuRA Foundation, a medical research institute that is searching for a cure for diseases of the brain and nervous systems. With your support today, I look forward to working with my fellow directors and the strong management team to achieve ongoing success for your company. Thank you.

Thank you, Chad. I move that the meeting elects Chad Barton as a director. Are there any questions?

No further questions at this stage.

Thank you. I have moved the resolution. So I now put the resolution. Shareholders should select their voting direction online for resolution 3. Resolution 4 involves the setting of remuneration for the auditor. PricewaterhouseCoopers is the auditor of SkyCity, and that firm has indicated its willingness to continue as auditor of the company. I move that the directors be authorized to fix the auditor's remuneration. Are there any questions?

No further questions at this stage, Chair.

Thank you. I've moved that resolution. So I now put the resolution. Shareholders should select their voting direction online for resolution 4. Thank you for your attendance to the resolutions. That concludes our discussion on the items of business. Voting will shortly close. Please ensure that you have cast your vote on all resolutions. I will now pause you to -- pause to allow time to finish -- finalize your votes before voting closes. [Voting]

Thank you. Voting is now closed. All votes will be counted and then scrutinized by the company's share registrar, Computershare. The results will then be advised to the New Zealand and Australian stock exchanges later today. Thank you for attending the 2021 SkyCity Annual Meeting. Representatives from Ngati Whatua Orakei will now formally close the meeting.

[Foreign Language]