APPENDIX 4E - Preliminary Final Report · Preliminary Final Report – 30 June 2018 + See chapter 19 of the ASX Listing Rules for defined terms. Appendix 4E Page 1 23 August 2018

Village Roadshow Limited Preliminary Final Report – 30 June 2018

+ See chapter 19 of the ASX Listing Rules for defined terms. Appendix 4E Page 1

23 August 2018

RULE 4.3A

APPENDIX 4E - Preliminary Final Report

Introduced 1/1/2003. Origin: Appendix 4B

Name of entity

VILLAGE ROADSHOW LIMITED

ABN of entity

43 010 672 054

Financial year ended (‘reporting period’):

Previous financial year ended (‘previous corresponding period’)

30 June 2018 30 June 2017

Results for announcement to the market Extracts from this report for announcement to the market.

$A'000

Income from continuing operations (item 1.1)

Up

10.3%

to

1,146,536

Loss after tax from continuing operations (item 1.7)

Down

94.8%

to

(3,411)

Profit after tax from discontinued operations (item 1.8)

N/A

to

--

Net profit attributable to members of Village Roadshow Limited (item 1.11)

Up

N/A

to

219

Dividends (distributions) Amount per security

Franked amount per security

Conduit foreign income per

security

Reporting Period: - Final dividend (item 15.4) - Ords - Interim dividend (item 15.6) - Ords

--

--

--

--

--

--

Previous Corresponding Period: - Final dividend (item 15.5) - Ords - Interim dividend (item 15.7) - Ords

--

--

--

--

--

--

+Record date for determining entitlements to the dividend (see item 15.2) N/A

Brief explanation of any of the figures reported above:

Refer attached commentary.

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APPENDIX 4E │ PAGE 2

VILLAGE ROADSHOW LIMITED | ABN 43 010 672 054 | LEVEL 1, 500 CHAPEL STREET, SOUTH YARRA, VIC, AUSTRALIA 3141 | T + 61 3 9281 1000 v i l l a g e r o a d s h o w . c o m . a u

EXTERNAL FACTORS SIGNIFICANTLY IMPACTED FY2018, IMPROVED PERFORMANCE EXPECTED FOR FY2019

23 August 2018: Village Roadshow Limited (ASX:VRL) today announces its results for the twelve months to 30 June 2018 (“FY18”).

KEY FY18 RESULTS

Attributable profit after tax $0.2 million (twelve months to 30 June 2017 (“FY17”): $66.7 million loss) after profits from material items of $7.5 million (FY17: $90.3 million loss);

Attributable profit from material items after tax of $7.5 million in the current period include gains on disposal of investments and businesses of $156.9 million and impairment and other non-cash adjustments of $167.6 million (refer page 13 for further details in relation to material items);

Attributable loss after tax before material items and d iscontinued operations (“NPAT”) $7.3 million, (FY17: $23.6 million profit); and

Earnings before interest, tax, depreciation and amortisation, excluding material items and discontinued operations (“EBITDA”) $90.9 million (FY17: $136.3 million) (refer Reconciliation of Results on pages 14 and 15).

A number of external factors significantly impacted VRL’s major divisions which adversely affected VRL’s FY18 earnings performance. In Theme Parks, the result continued to be primarily impacted by the Dreamworld tragedy. In the eight years (FY09 to FY16) preceding the Dreamworld tragedy, VRL’s Australian theme parks achieved average EBITDA of $86 million per annum. The second half of FY17 experienced a significant impact from the tragedy and resulted in full year FY17 EBITDA of $55 million, followed by FY18 EBITDA of $41 million. In addition, Gold Coast Theme Parks experienced lower than expected attendances over the school holidays in April 2018, because Commonwealth Games deterred park customers with the perception of worsening traffic conditions on the Gold Coast and Games attendees were not visitors to theme parks. There is a strong indication that Gold Coast Theme Parks have returned to a positive trajectory as evidenced by the best month of July on record in terms of ticket sales. Importantly, very strong ticket sales of the most important ticket category, the season pass, were $3.2 million above budget and $6.0 million up on the prior corresponding period, with significant yield increase. This has been greatly assisted by the marketing thrust anchored by Queensland’s favourite – Sally Pearson. This trend is expected to continue as new low cost attractions like Sea Jellies, Shaun the Sheep, the new HyperCoast Walk and the new Australian Outback Spectacular show are introduced. In Cinema Exhibition, the first half of FY18 experienced a slow start due to lack of quality titles, and although the second half experienced a much stronger performance driven by a

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APPENDIX 4E | PAGE 3

slate of blockbuster films released in the 4th quarter FY18, the recovery in the last quarter was not sufficient to offset the shortfall from the first half. Cinema Exhibition continued to focus on premium concepts incorporating exceptional food & beverage offerings and targeting niche market segments. In March 2018, Village Cinemas successfully opened a new site at Plenty Valley, showcasing all of Village Cinemas’ concepts, and capturing the key northern growth corridor of Melbourne, with trading as per expectations. The Company’s Film Distribution division (“Roadshow”) was impacted by piracy, underperforming theatrical titles and new competitive factors. The division’s performance also reflects the ongoing decline of the physical DVD market as it transitions towards an inevitable digital universe. Roadshow has a strategy of more targeted acquisitions and is encouraged by the next year’s product line-up in what is still very much a hit driven business. There is a real progress in fight against piracy as witnessed by the blocking of 450 pirate sites and a further 100 sought to be blocked in September 2018. Research indicates that piracy is down 42% on a year on year basis. Additionally, those continuing to pirate are subject to viruses, malware and ransomware and are increasingly becoming aware that the piracy business model is of scamming people. Further piracy reduction is anticipated. Roadshow is also diversifying its business model to explore new revenue generating opportunities, with a key focus on TV content production. In January 2018, Roadshow Rough Diamond successfully produced a highly acclaimed show Romper Stomper, which became one of Stan’s most successful releases to date. The Marketing Solutions division delivered FY18 EBITDA of $8.3 million, down from $9.8 million in the prior corresponding period.

Leveraging on relationships with existing clients, Marketing Solutions has expanded into new markets with Edge moving into Singapore as a base for south-east Asia, and Opia moving into the USA and broader European region. The division has continued to invest in and develop cutting edge technical platform capabilities to deliver highly scalable and increasingly integrated promotional solutions and to support the international expansion.

Topgolf opened on 15 June 2018 and, in early trading, is one of the best sites amongst over 30 sites operating in the US. Guest feedback and word of mouth is outstanding as reflected in the internationally recognised Net Promoter Score (NPS) being 75%, which is among the highest NPS scores. Although, initial acceptance of the concept is very promising; the site has only been open for 2 months and results will be closely monitored during the first half of FY19. In the second half of FY18, VRL initiated a business transform ation project – OneCo – which is aimed at bringing together functions in the core divisions and transforming VRL into a more integrated company. The key focus areas of OneCo are reducing costs by restructuring the organisation to remove duplicat ions, and to drive efficiency and effectiveness. During the second half of FY18, initiatives were implemented which delivered cost savings of $8 million on an annualised basis, including operational cost reduction and OneCo related cost savings. There are further annualised cost savings in excess of $10 million budgeted for FY19. As previously announced, as part of the OneCo initiative the Executive Directors have agreed to a 25% reduction in their base remuneration and changed from Co-Executive

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Chairmen and Co-CEOs to the roles of Executive Chairman for Mr. Robert Kirby and Chief Executive Officer for Mr. Graham Burke. In addition, the Company’s Non-Executive Directors have also agreed to a 25% reduction in their fees. In FY18, the VRL Board took proactive steps to reduce group debt levels significantly. This included the sale of VRL’s 50% stake in the Singapore Cinema Exh ibition business, the sale and leaseback of the Company’s freehold land at Oxenford, the sale of Wet’n’Wild Sydney and, just after year end, the successful completion of the Entitlement Offer to VRL shareholders in July 2018. The proceeds from all these transactions were or will be used to reduce group debt. Following the changes mentioned above, FY18 results include pre-tax impairment and other non-cash adjustments of $167.4 million. This includes impairment of $24.7 million related to Wet’n’Wild Sydney, impairment of goodwill of $95 million in relation to Gold Coast Theme Parks (including $74 million in relation to the accounting impact of sale and leaseback of land on the Gold Coast), and impairment of goodwill of $30 million in relation to Roadshow. VRL also incurred pre-tax restructuring costs of $8.4 million in FY18 primarily related to one-off costs associated with initiatives implemented under the OneCo and operational cost saving programs. There were also gains on disposal of investments and businesses totalling $156.9 million, including a gain on Singapore investment of $154 million. The VRL group will remain focussed on maintaining operational cash flow and capital expenditure, with FY19 capex budgeted to be significantly lower than in FY18. The VRL Board is committed to shareholder returns, while maintaining the ability to invest in the business. Given the decline in operating cash flow, the Board has not declared a final FY18 dividend. Taking a prudent approach, this is a cautious short-term measure under the current conditions and the Directors intend to reinstate the payment of dividends as soon as it is deemed appropriate. Commenting on the result, VRL Executive Chairman, Mr. Robert Kirb y said:

“The extraneous factors that contributed to our headwinds such as the Dreamworld

effect, is now a nightmare from the past.There are strategies in place to correct the

effect of other external factors as well as our new growth initiative of Topgolf .”

VRL Chief Executive Officer, Mr. Graham Burke said:

“Our clear goals are to sell tickets and drive free cash flow while bringing to bear

laser focus on operating costs and capital expenditure.” For further information, please contact: Graham Burke Julie Raffe Chief Executive Officer Finance Director 03 9829 0667 03 9667 6511

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DIVISIONAL REVIEW AND OUTLOOK CINEMA EXHIBITION VRL’s Cinema Exhibition division operates predominantly in Australia through a joint

venture with Event Hospitality & Entertainment, and has a minority interest in iPic

Theaters in the United States.

CINEMA EXHIBITION PERFORMANCE SUMMARY Key Earnings Australia Singapore Other Exhibition (Total)

Metrics ($m) FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17

EBITDA 58.0 68.1 - 8.4 0.1 0.1 58.1 76.6

EBIT 41.2 51.8 - 8.4 (0.5) (0.3) 40.7 59.8

PBT 37.7 48.2 - 8.4 (1.5) (1.3) 36.2 55.3 Note: Figures presented are VRL share, before Material Items. Other includes Leisure, iPic and Be lfast. FY17 only includes 11 months of trading to May 2017 for Singapore.

Cinema Exhibition Sites & Screen summary

As at 30 Jun 17

Opened / (Closed/Sold)

As at 30 Jun 18

Location Sites Screens

Sites Screens

Sites Screens

Australia 55 560

3 23

58 583

Singapore 11 91

(11) (91)

- -

USA 16 121

- -

16 121

United Kingdom 1 12

(1) (12)

- -

Total 83 784

(9) (80)

74 704 Note: Includes all screens in which VRL has an economic interest, taking no account of ownership structure. Does not reflect screen conversions completed throughout the period.

The Cinema Exhibition division delivered an FY18 EBITDA result of $58.1 million (FY17: $76.6 million, including Singapore). The full year result was primarily impacted by the underperformance of key titles across the August to November 2017 period in addition to soft carry over product from June, 2017. Top titles in FY18 included Avengers: Infinity War, Star Wars: The Last Jedi, Jumanji: Welcome to the Jungle, Incredibles 2 and Black Panther. Softer admissions were partially offset by higher spend per person compared to the prior year, driven by the division’s successful and continued focus on, and expansion of, enhanced food and beverage offerings, including gourmet popcorn. Australian Cinema Exhibition The Australian Cinema Exhibition business delivered an EBITDA of $ 58.0 million for the twelve months to 30 June 2018, with a strong 4Q18 of blockbuster releases, headlined by Avengers: Infinity War and Deadpool 2. This was however unable to fully offset underperforming key titles during the FY18 year. In addition to the new Plenty Valley site in Melbourne’s north, t wo new cinemas within the Australian Theatres Joint Venture with EVENT Cinemas also opened successfully during the year: Whitford (in Western Australia) opened in late September, featuring two Gold

Class, two max and four traditional auditoria and Palmerston (in Northern Territory)

opened in early October, with two max and four traditional auditoria.

FY18 also saw the continued rollout of Junior in Victoria with a second location at Fountain Gate, opening in the last days of FY17 along with a third location at Knox opened in September 2017 and fourth and fifth locations at Sunshine and Plenty Valley both opened in March 2018. This concept has exceeded expectations, driving increased average

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ticket price, spend per person and admissions. The year has also benefitted from the successful launch of an exciting new immersive seating concept 4DX at Century City Walk in Victoria. The Cinema Exhibition division has a clear strategy to position itself as a destinatio n of choice through a diverse offering of exceptional experiences which are complemented by high standard traditional cinemas. These concepts appeal to specific market segments and give Village Cinemas a competitive advantage over other offerings in the ma rket.

In line with its strategy to expand into select population growth corridors, the division also has a number of new sites committed, with the selective inclusion of premium offerings:

Location Expected Opening

Total Screens

Gold Class max

Green Square, NSW Mid 2020 5 - -

Edmondson Park, NSW Late 2020 6 - 2

Clayton, VIC Late 2020 6 - -

Innaloo, WA Late 2020 14 4 4

Singapore Cinema Exhibition The sale of the Company’s 50% owned Golden Village Cinemas was completed in October 2017, with equity accounting ceasing from the end of May 2017. iPic Entertainment USA iPic Entertainment (“iPic”) successfully listed on NASDAQ in February 2018, raising US$15 million. Post the equity raising VRL’s contingent liability relating to this business has reduced from US$24.2 million to US$5.6 million. iPic will utilise the capital raised to continue its development plans to reach critical mass. VRL’s ownership of iPic following the listing is 25%, which is valued at approximately US$24 million as at 17 August 2018. VRL carries this investment at nil in its accounts due to equity accounting requirements under accounting standards.

CINEMA EXHIBITION - OUTLOOK FY19 has opened with positive results from Ant-man and the Wasp, Mamma Mia!: Here We Go Again and strong carryover from June including Jurassic World: Fallen Kingdom and Incredibles 2. Key titles for the balance of FY19 include Avengers 4, Aladdin, Ralph Breaks the Internet, Fantastic Beasts: The Crimes of Grindelwald, Mary Poppins Returns and Captain Marvel. In FY19, VRL expects to see the Australian box office largely in line with FY18.

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THEME PARKS Village Roadshow Theme Parks (“VRTP”) owns and operates Warner Bros. Movie World,

Sea World, Wet’n’Wild Gold Coast, Paradise Country, Australian Outback Spectacular and

Sea World Resort & Water Park on Queensland’s Gold Coast. VRTP also operates and

has majority ownership in Wet’n’Wild Las Vegas. VRTP has a program of development

including Topgolf in Australia and theme park opportunities in Asia , with the relevant

development costs reflected in the segment result.

THEME PARKS PERFORMANCE SUMMARY

Note: Figures presented are before Non-Controlling Interests relating to Wet’n’Wild Las Vegas, and before Material Items.

FY18 was an important and necessary transition and reset year for VRTP with a new ticketing strategy implemented in December 2017 shifting VRTP from a discounted volume based business to a higher yielding value based operation. VRTP delivered FY18 EBITDA of $38.3 million, down on the prior corresponding period’s EBITDA of $55.9 million. The Australian theme parks continued to be impacted by the Dreamworld tragedy. As happened in similar tragedies overseas, attendance has been impacted. The eight years preceding the Dreamworld tragedy, Australian theme parks achieved average EBITDA of $86 million per annum. The extent of the impact of Dreamworld tragedy is evident from the FY17 and FY18 earnings, which are significantly lower than the previous eight years. In addition, the FY18 full year result reflected lower than expected attendances over the Easter school holidays in April 2018 which coincided with the Commonwealth Games.

AUSTRALIAN THEME PARKS EBITDA ($MILLION, FY09 TO FY18)

Key Earnings

Metrics ($m) FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17

EBITDA 41.9 52.0 (2.1) - 1.4 6.6 (2.9) (2.7) 38.3 55.9

EBIT 1.8 10.3 (2.2) - (5.0) (2.3) (3.0) (2.8) (8.3) 5.2

PBT (10.6) 0.2 (2.4) - (8.5) (6.2) (3.0) (2.8) (24.4) (8.8)

Wet'n'Wild

Sydney / Las Vegas

Gold Coast

Theme ParksTopgolf

Asia

Theme Parks

Theme Parks

(Total)

82.490.7

82.8 82.0 83.590.0 89.1 89.1

55.1

40.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

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There is an encouraging indication that Gold Coast theme parks have turned to a positive trajectory as reflected by strong July trading. This recovery in attendances is expected to gain further momentum in FY19 driven by Topgolf which launched successfully in June 2018, a new creative marketing campaign and the addition of lower cost new attractions to enhance guest appeal. The sale and long term leaseback of the Company’s land at Oxenford, Queensland, which was completed in December 2017, is treated as a finance lease in accordance with accounting standards, and the Company has not recorded a profit on sale in its reported results. VRL announced on 2 July 2018 that on 29 June it had sold Wet‘n’Wild Sydney to Parques Reunidos. The sale is expected to generate net proceeds of approximately $37 million, which when completed (expected first quarter FY19), will be used to reduce VRL’s debt. Gold Coast Theme Parks The Gold Coast Theme Parks continue to recover from the Dreamworld tragedy, led by customer-focussed attractions and enhanced in-park experience and by a new ticketing strategy which in recent months has resulted in an improvement in ticket yields. With the removal of the discount resellers from the market effective 30 June 2018, VRTP management believe overall ticket sales revenue will continue to increase, as reflected in July trading. In September 2017 the Southern Hemisphere’s largest HyperCoaster opened at Warner Bros. Movie World. The DC Rivals HyperCoaster is the LONGEST, FASTEST and HIGHEST in the Southern Hemisphere and has been a strong drawcard to driving ticket sales. Movie World has also benefitted from Afterglow, its extended operating hours at night and Heroes & Villains street parade which both resulted in driving in-park spend and length of stay. New attractions at Sea World in FY18 have improved the guest experience and driven increased length of stay. Key attractions which opened during the year include: the birth and arrival of the new Polar Bear Cub Mishka, the new splash zone, Castaway Bay – The Reef, a new seal show which opened on Boxing Day and new Nickelodeon product Paw Patrol. Sea World Resort had a strong year and performed well above the prior year with its conference centre continuing to outperform expectations. VRTP’s special events performed strongly in FY18 with Carnivale at Sea World outperforming expectations with its new Light Laser Show and Fright Nights and White Christmas at Movie World delivering record results. Supporting the Gold Coast parks was the ongoing strong performance by Paradise Country, which delivered a result in line with FY17 and Village Roadshow Studios, which continued its successful run with the completion of Aquaman, its usage during the 2018 Commonwealth Games, and the introduction of Dora the Explorer. A new TV marketing campaign featuring Sally Pearson launched in June 2018, aimed at engaging the core Gold Coast market and showcasing the enhanced customer value to VRTP guests and annual pass holders as part of VRTP’s customer-led focus.

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Topgolf VRTP’s new landmark entertainment attraction, Topgolf, opened successfully in June 2018 with strong attendances and forward bookings to date. The initial guest feedback is outstanding with NPS score of 75%. Topgolf is a global leader in sports entertainment and has enjoyed enormous success in the U.S. The business is focussed on continuing to refine its service level to ensure it provides the ultimate guest experience. VRTP has the exclusive rights for the Topgolf concept in Australia and continues to explore attractive sites for Topgolf locations in other major Australian cities. FY18 included $2.2 million one-off costs related to Topgolf pre-opening expenses. FY19 will include a full year contribution from Topgolf. Wet’n’Wild Sydney As previously announced, Wet’n’Wild Sydney was sold to Parques Reunidos on 29 June 2018, with the sale expected to complete in 1QFY19, subject to customary closing conditions.

Wet’n’Wild Las Vegas Wet’n’Wild Las Vegas (50.09% owned by VRL) was adversely impacted by a shortened holiday season and an unfavourable heatwave during the peak season. Wet’n’Wild Las Vegas delivered FY18 EBITDA of $2.4 million, down on the prior corresponding period’s EBITDA of $3.5 million. Asia VRTP has two key projects in China reflecting management operating agreements and no equity investment. Wet’n’Wild Mission Hills opened successfully in April 2018 in Haikou on Hainan Island. VRTP is responsible for operating China’s first Wet’n’Wild branded theme park with an experienced general manager appointed to oversee the operations, which stretch over 50,000 sq metres of land, and offers a range of iconic slides and attractions including the Vortex, the Half-Pipe, Water Rockets, 360 Rush, Super 8 Aqua Racer and Wet’n’Wild Junior splash zone. The Lai Sun project for the development of the Lionsgate Entertainment World at Novotown on Hengqin Island continues. This is an indoor experience centre, themed around some of Lionsgate’s key franchises, such as The Hunger Games and Twilight. VRTP is currently providing consultation for the experience centre’s development and will also manage its operations after opening, expected in 2Q calendar year 2019.

THEME PARKS – OUTLOOK VRTP is in a strong position to face short term challenges and drive its continued recovery, with recent results supporting VRTP management’s confidence around the revised pricing strategy and customer focussed enhancements. The division is focussed on using guest feedback to prudently target capital spend including lower cost attractions which enhance guest appeal . New attractions to open in FY19 include the launch of the next generation Scooby Doo Coaster, a brand new show at

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Australian Outback Spectacular, Heartlands, incorporating advanced technology, and new Shaun the Sheep intellectual property at Paradise Country. Additional guest experience enhancements are planned including improving guest comfort in critical waiting areas through a mix of air conditioning and shade where appropriate. Despite the prudent approach to capital investment, an uncompromising approach to safety is integral to the guest experience and the Village Roadshow Theme Parks brand. This approach is manifest in the quality of attraction selection, safety awareness programs and induction processes to ingrain VRL’s safety culture in all team members . These programs are benchmarked on the highest global industry standards, such as the Ellis International Lifeguard Training Program™ adopted across VRL’s water parks in 2015.

FILM DISTRIBUTION VRL’s Film Distribution division (Roadshow) predominantly distributes theatrical film

content to cinemas. It also has a substantial business in distributing film and TV programs

to broadcasters, Subscription Video on Demand and Pay TV platforms, DVD and Digital

retailers in Australia and New Zealand. Roadshow Rough Diamond was formed in 2016 to

focus on producing quality TV drama and in 2017, Roadshow acquired 50% of BlinkTV,

which focuses on producing unscripted content. The division also has a 31% interest in

FilmNation Entertainment LLC; a US based international film sales and

production/distribution business.

FILM DISTRIBUTION PERFORMANCE SUMMARY

Key Earnings Metrics ($m) FY18 FY17

EBITDA 13.8 21.2

EBIT 10.6 17.7

PBT 6.8 13.8

Note: Figures presented are VRL share, before Material Items.

The Film Distribution division (“Roadshow”) delivered an EBITDA of $13.8 million (FY17: $21.2 million) after a challenging FY18. The division was negatively impacted by the underperformance of key titles and the ongoing decline of the physical (DVD and Blu Ray) market and piracy. Back catalogue and TV titles in the physical market have been particularly impacted by the growth in subscription video on demand ( “SVOD”). VRL is actively taking steps to reduce piracy. FY18 saw a real progress in fight against piracy as the new Australian legislation led the blocking of 450 pirate sites and a further 100 sites are sought to be blocked in September 2018. Core Distribution FY18 results were adversely impacted by the underperformance of key theatrical releases which could not be fully offset by Roadshow’s successful releases including Wonder, I, Tonya and Ocean’s 8. The Australian transactional digital market for content continues to grow, and the division is well positioned to take advantage of this, with multiyear supply deals wit h key SVOD platforms, Stan and Netflix. However, the growth in the digital market has not been sufficient to offset the decline in revenue from the DVD sector.

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Roadshow Television Roadshow Rough Diamond was formed in June 2016 to focus on the production of quality TV drama for domestic and international audiences and will leverage Roadshow’s expertise in selling product. These productions require minimal investments from VRL. The first production Romper Stomper launched with critical acclaim on Stan during the year with a second project, Australian Gangster, to screen on Channel 7. In 2017, Roadshow acquired 50% of unscripted TV production company, BlinkTV, headed by one of the most respected names in the industry, Paul Clarke. Paul Clarke’s string of hits includes Spicks and Specks, Long Way to the Top and Bombora: The History of Australian Surfing. BlinkTV successfully covered both the 2018 Mardi Gras and Royal Wedding for SBS and television quiz show Show Me The Movie on Channel Ten. FilmNation FilmNation is continuing its production strategy, with a number of titles in production including: Life Itself, Gloria and Greyhound. FilmNation has made significant strides in making TV an important part of the business. Already, FilmNation has a TV series in the USA - I Know This Much Is True, that has been sold to and fully funded by HBO. Australian Film Initiatives: Roadshow Films is currently developing a portfolio of Australian feature films. These projects are at different stages of development and th e intention is for them to become a key part of the future content slate.

FILM DISTRIBUTION - OUTLOOK Major titles for the division in FY18 include Fantastic Beasts: Crimes of Grindelwald , Aquaman, the much anticipated A Star is Born, as well as new releases from major TV franchises. Roadshow Rough Diamond and BlinkTV are building momentum. Roadshow’s FY19 EBITDA will depend on film performance.

MARKETING SOLUTIONS VRL’s Marketing Solutions division is a world leader in consume r incentive programs, with

offices in Australia, Asia, the UK and the USA. The Division is focussed on digital

platforms and rewards and works with some of the world’s largest brands .

MARKETING SOLUTIONS PERFORMANCE SUMMARY

Key Earnings Metrics ($m) FY18 FY17

EBITDA 8.3 9.8

EBIT 6.5 8.5

PBT 4.1 6.0 Note: Figures presented are before Non-Controlling Interests relating to Opia, and before Material Items.

The Marketing Solutions division delivered FY18 EBITDA of $8.3 million, down from $9.8 million in the prior corresponding period. The Marketing Solutions division has continued to invest in and develop its cutting edge technical platform capabilities to deliver highly scalable and increasingly integrated promotional solutions.

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Edge Australia Significant promotions for the period were driven by key clients like Kelloggs and Lion Beer Spirits & Wine. Highlights for FY18 included the execution of over 10 Master Services Agreements with leading national and global brands, including Harvey Norman, Greenstone, Kelloggs, Fujitsu, Carlton & United Breweries and Unilever. In July 2017 Edge Loyalty rebranded as Edge, reflecting the business’ move toward s campaign based incentive technologies. Edge has continued to define its strategic focus on information technology (IT), seeing an increase in IT resourcing across the business and investment in capital projects related to the development of promotional platforms, digital systems and data warehouse capabilities. Edge has progressed with its expansion into Asia with a new office in Singapore. Going forward, Asia will form a key part of Edge’s growth. Opia Opia achieved an FY18 EBITDA of $5.7m. Significant promotions for the year were driven by key clients HP, LG, Samsung and the company’s agency business with Odeon Cinemas in the UK. Opia continues to see solid results in the UK and Europe. In the USA, Opia successfully negotiated a Microsoft Worldwide Service Agreement, positioning the business as a preferred provider of sales promotions.

MARKETING SOLUTIONS – OUTLOOK The transformation of Edge into a business built around innovative incentive technologies is laying a strong foundation for local and international growth. Edge plans to strengthen its position in all markets by continuing to invest in promotional platforms (“Edge Connect”), data analytics and connective capabilities. Australian client promotional work scheduled for FY19 includes Kelloggs, Telstra, Chemist Warehouse and Optus. Edge Asia has a strong pipeline of activity, including two new promotions with Microsoft. Opia will continue to grow its existing customer base in the UK and Europe, and to extend its geographical reach through developing long-term relationships with blue-chip multinational customers. The business is also developing its product offerings and looking to extend its activity into other sectors. Investment in the sales teams across all territories supports Opia’s intent to achieve growth from both new business development and new client acquisition. On the back on new revenue streams from Asia and the USA, M arketing Solutions is expected to achieve growth in FY19.

CORPORATE & OTHER CORPORATE & OTHER PERFORMANCE SUMMARY

Key Results ($m) FY18 FY17

EBITDA - Corporate (22.2) (21.5)

EBITDA - Digital & IT (5.4) (5.7)

EBITDA - Corporate & Other (27.6) (27.2)

Depreciation & amortisation (1.7) (1.1)

Interest expense (net) (2.4) (5.2)

PBT (31.7) (33.5) Note: Figures presented are before Material Items.

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Total net Corporate & Other costs for the 12 months ended 30 June 2018 were $ 31.7 million, and EBITDA for Corporate was a $22.2 million loss, compared to a $21.5 million EBITDA loss in the prior corresponding period.

Digital & IT Development The investment in Digital & IT Development in FY18 was $5.4 million, marginally down from $5.7 million in the prior corresponding period due to lower salaries and savings on data services and external consulting costs.

MATERIAL ITEMS Material items attributable gain after tax of $7.5 million in FY18 included the following:

Gain on disposal of investments and businesses tota lling $156.9 million, including the gain on Singapore asset held for sale of $154.0 million;

Impairment of assets and other non-cash adjustments totalling $167.4 million pre-tax, including impairment of assets at Wet’n’Wi ld Sydney of $24.7 million and Wet’n’Wild Las Vegas of $8.5 million, and impairment of goodwill relating to the Gold Coast Theme Parks of $95.0 million and Film Distribution of $30.0 million;

Restructuring costs totalling $8.4 million pre-tax across the VRL group; and

Tax benefit from sale and leaseback of Oxenford land of $24.1 million.

FURTHER INFORMATION: Graham Burke Chief Executive Officer 03 9829 0667

Julie Raffe Finance Director 03 9667 6511

VILLAGE ROADSHOW FY18 RESULTS TELECONFERENCE 23 AUGUST 2018 2:00 PM AEST (NSW, VIC, TAS, ACT, QLD)

In order to pre-register for this conference and avoid a queue when calling, please follow the link below.

You will be given a unique pin number to enter when you call which will bypass the operator and give you immediate access to the event.

http://villageroadshow.com.au/investors/corporate -diary/teleconferences#/

A copy of this release and the VRL FY18 Results Presentation including additional conference call details are available at www.asx.com.au and www.villageroadshow.com.au

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http://www.villageroadshow.com.au/



VILLAGE ROADSHOW LIMITED RECONCILIATION OF RESULTS FOR THE YEAR ENDED 30 JUNE 2018

Theme Parks Cinema Exhibition Film Distribution Marketing Solutions Other Total

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

(i) Reconciliation of results: Continuing Operations:

Earnings before Interest, Tax, Depreciation and Amortisation, excluding material items of income and expense (“EBITDA”)

38,308

55,879

58,078

76,629

13,828

21,215

8,282

9,846

(27,633)

(27,283)

90,863

136,286

Depreciation and amortisation (46,644) (50,667) (17,391) (16,807) (3,210) (3,564) (1,789) (1,385) (1,705) (1,007) (70,739) (73,430) Finance costs before finance restructuring costs (16,298) (14,070) (4,659) (4,696) (4,440) (4,399) (2,461) (2,487) (2,777) (6,063) (30,635) (31,715) Interest income 188 72 149 161 573 564 50 1 366 853 1,326 1,651

Operating (loss) profit before tax and material items of income and expense (“PBT”) (24,446) (8,786) 36,177 55,287 6,751 13,816 4,082 5,975 (31,749) (33,500) (9,185) 32,792 Income tax benefit (expense), excluding material items 5,565 2,067 (11,932) (14,819) (2,165) (3,777) (1,303) (2,052) 12,556 10,491 2,721 (8,090)

Operating (loss) profit after tax, before material items of income and expense (18,881) (6,719) 24,245 40,468 4,586 10,039 2,779 3,923 (19,193) (23,009) (6,464) 24,702 Non-controlling interest, excluding material items 12 (317) -- -- -- -- (842) (779) -- -- (830) (1,096)

Attributable operating (loss) profit after tax, before material items of income and expense (“NPAT”)

(18,869)

(7,036)

24,245

40,468

4,586

10,039

1,937

3,144

(19,193)

(23,009)

(7,294)

23,606

Material items of income and expense before tax (137,576) (75,630) 156,711 (7,260) (33,214) (18,521) (1,918) (141) (2,955) (7,213) (18,952) (108,765) Income tax benefit – material items 19,675 12,557 63 142 964 5,556 416 41 887 145 22,005 18,441

Material items of income and expense after tax (117,901) (63,073) 156,774 (7,118) (32,250) (12,965) (1,502) (100) (2,068) (7,068) 3,053 (90,324) Material items – Non-controlling interest 4,225 -- -- -- -- -- 235 -- -- -- 4,460 --

Material items – Profit (loss) after tax & non-controlling interest (113,676) (63,073) 156,774 (7,118) (32,250) (12,965) (1,267) (100) (2,068) (7,068) 7,513 (90,324)

Total (loss) profit before tax from continuing operations (162,022) (84,416) 192,888 48,027 (26,463) (4,705) 2,164 5,834 (34,704) (40,713) (28,137) (75,973) Total income tax benefit (expense) from continuing operations 25,240 14,624 (11,869) (14,677) (1,201) 1,779 (887) (2,011) 13,443 10,636 24,726 10,351 Total non-controlling interest 4,237 (317) -- -- -- -- (607) (779) -- -- 3,630 (1,096)

Total attributable profit (loss) after tax from continuing operations per the statement of comprehensive income

(132,545)

(70,109)

181,019

33,350

(27,664)

(2,926)

670

3,044

(21,261)

(30,077)

219

(66,718)

Discontinued Operations:

Attributable profit after tax from discontinued operations -- --

Net profit (loss) attributable to the members of Village Roadshow Limited

219

(66,718)

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VILLAGE ROADSHOW LIMITED RECONCILIATION OF RESULTS FOR THE YEAR ENDED 30 JUNE 2018

(Continued)

Theme Parks Cinema Exhibition Film Distribution Marketing Solutions Other Total

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

(ii) Material items of income and expense from continuing operations:

Gain on disposal / dividend received - asset held for sale -- -- 154,006 5,038 -- -- -- -- -- -- 154,006 5,038 Gain on disposal of business / reversal of onerous lease provision -- -- 2,916 7,500 -- -- -- -- -- -- 2,916 7,500 Impairment and other non-cash adjustments (133,456) (71,000) -- (128) (32,526) (17,683) (1,453) -- -- -- (167,435) (88,811) Restructuring costs (4,120) (4,630) (211) (474) (688) (838) (465) (141) (2,955) (585) (8,439) (6,668) Equity-accounted losses on net investments -- -- -- (19,196) -- -- -- -- -- (6,628) -- (25,824)

Total (loss) profit from material items of income and expense before tax

(137,576)

(75,630)

156,711

(7,260)

(33,214)

(18,521)

(1,918)

(141)

(2,955)

(7,213)

(18,952)

(108,765)

Income tax benefit 19,675 12,557 63 142 964 5,556 416 41 887 145 22,005 18,441 Total non-controlling interest – material items 4,225 -- -- -- -- -- 235 -- -- -- 4,460 --

Total attributable profit (loss) from material items of income and expense after tax

(113,676)

(63,073)

156,774

(7,118)

(32,250)

(12,965)

(1,267)

(100)

(2,068)

(7,068)

7,513

(90,324)

(iii) Earnings / (Loss) Per Share: Basic EPS Diluted EPS

0.14c 0.14c

(41.3c) (41.3c)

(iv) (Loss) / Earnings Per Share adjusted to eliminate discontinued operations and material items of income and expense from the calculations: Basic EPS Diluted EPS

(4.5c) (4.5c)

14.6c 14.6c

Notes: 1. The Village Roadshow Limited group (“VRL group”) results are prepared under Australian Accounting Standards, and also comply with International Financial Reporting Standards (“IFRS”). The Reconciliation of Results includes certain non-IFRS measures including EBITDA and operating profit excluding material items of income and expense and discontinued operations. These measures are used internally by management to assess the performance of the business, make decisions on the allocation of resources and assess operational management. Non-IFRS measures have not been subject to audit or review, however all items used to calculate these non-IFRS measures have been derived from information used in the preparation of the audited or reviewed (as applicable) financial statements. It is noted that the audit of the financial statements for the year ended 30 June 2018 is still in the process of being completed. F

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Table of Contents

Page No.

Consolidated Statement of Comprehensive Income 17

Notes to the Consolidated Statement of Comprehensive Income 18

Calculation of Income Tax on Continuing and Discontinued Operations 20

Consolidated Retained Earnings 20

Intangible Items 20

Comparison of Half Year Profits (Losses) 20

Consolidated Statement of Financial Position 21

Consolidated Statement of Cash Flows 22

Reconciliation of Net Loss to Net Operating Cash Flows 23

Reconciliation of Cash and Cash Equivalents 23

Acquisition/Disposal of Controlled Entities 23

Undrawn Credit Facilities 23

Ratios 24

Earnings (Loss) per Share 24

Net Tangible Asset Backing 24

Discontinued Operations 24

Control Gained over Entities having Material Effect 24

Loss of Control of Entities having Material Effect 25

Dividends & Distributions 25

Details of Aggregate Share of Net Profit (Loss) of Associates 25

Equity-Accounted Associates 26

Issued and Quoted Securities at end of Current Period 27

Segment Reporting 28

Subsequent Events 29

Material Changes in Contingent Liabilities and Contingent Assets 30

Application of International Financial Reporting Standards 30

Annual Meeting details 30

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Consolidated Statement of Comprehensive Income 2018 $A'000

2017 $A'000

Continuing operations 1.1 Income (refer item 1.21) (refer note 1 below) 1,146,536 1,039,355 1.2 Expenses excluding finance costs (refer item 1.22) (refer note 2 below) (1,144,092) (1,070,116) 1.3 Finance costs (refer item 1.23) (refer note 3 below) (31,485) (31,715) 1.4 Share of net profit (loss) of associates (refer items 16.3 and 17.1) (refer note 4

below) 904 (13,497)

1.5 Loss from continuing operations before income tax expense (28,137) (75,973) 1.6 Income tax benefit 24,726 10,351

1.7 Loss after tax from continuing operations (3,411) (65,622)

Discontinued operations

1.8 Profit after tax from discontinued operations (refer item 12.1) -- --

1.9

Net loss for the period

(3,411)

(65,622)

Loss for the period is attributable to:

1.10 Non-controlling interest (3,630) 1,096 1.11 Owners of the parent 219 (66,718)

(3,411) (65,622)

Other comprehensive (expense) income

1.12 Available-for-sale investments 364 -- 1.13 Cash flow hedges 2,244 1,038 1.14 Foreign currency translation (5,517) 151

1.15 Other comprehensive (expense) income for the period after tax (2,909) 1,189

1.16

Total comprehensive expense for the period

(6,320)

(64,433)

Total comprehensive expense for the period is attributable to:

1.17 Non-controlling interest (3,630) 1,096 1.18 Owners of the parent (2,690) (65,529)

(6,320) (64,433)

Note 1. Income includes material items of income & expense totalling a profit of $156.9 million (2017: $5.0 million) – refer attached Reconciliation of Results. Note 2. Expenses excluding finance costs include material items of income & expense totalling a loss of $175.0 million (2017: loss of $88.0 million) - refer attached Reconciliation of Results. Note 3. Finance costs include material items of income & expense totalling a loss of $0.9 million (2017: Nil) – refer attached Reconciliation of Results. Note 4. Share of net loss of associates in 2017 include material items of income and expense totalling a loss of $25.8 million – refer attached Reconciliation of Results.

Earnings (loss) per share (EPS)

2018

2017

1.19 1.20

Basic EPS Diluted EPS

0.14c 0.14c

(41.3c) (41.3c)

Refer item 10.1 and attached Reconciliation of Results for additional EPS disclosures including EPS from continuing operations and EPS excluding material items and discontinued operations.

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Notes to the Consolidated Statement of Comprehensive Income 2018

$A'000 2017

$A'000

1.21 Income from continuing operations

Revenues from continuing operations:

Sale of goods 306,408 337,183

Rendering of services 645,028 659,275

Finance revenue:

Other entities 1,197 1,651

Associated entities 129 --

Dividends received:

Dividend from asset held for sale (refer material items of income and expense

expenseliation of Results)

in attached Reconciliation of Results) -- 5,038

Other dividends -- 11

Total revenues from continuing operations

952,762 1,003,158

Other income from continuing operations:

Management fee income from:

Other entities 8,388 7,976

Associated entities 396 709

Net gain on disposal of investments & business (for 2018 refer material items of income and expense in attached Reconciliation of Results) 156,922 635

Unearned revenue written back 8,328 8,505

Commissions/fees received 6,887 5,929

Other 12,853 12,443

Total other income from continuing operations 193,774 36,197

Total income from continuing operations 1,146,536 1,039,355

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Notes to the Consolidated Statement of Comprehensive Income (continued) 2018

$A'000 2017

$A'000

1.22 Expenses excluding finance costs, from continuing operations

Employee expenses:

Employee benefits 18,330 17,573

Defined contribution superannuation expense 18,073 17,504

Share-based payment (credit) expense (1) 414

Remuneration and other employee expenses 216,184 210,171

Total employee expenses 252,586 245,662

Cost of goods sold 126,408 120,669 Occupancy expenses:

Operating lease rental – minimum lease payments 52,880 48,256

Operating lease rental – contingent rental payments 3,897 4,386

Other occupancy expenses 26,070 22,772

Total occupancy expenses 82,847 75,414

Film hire and other film expenses 223,651 246,998 Depreciation of:

Buildings & improvements 4,208 4,089

Plant, equipment & vehicles 38,661 39,815

Amortisation of:

Leasehold improvements 11,500 12,575

Finance lease assets -- 23

Software & other intangibles 16,370 16,928

Total depreciation and amortisation 70,739 73,430

Net loss on disposal of property, plant & equipment 255 38 Net foreign currency losses (gains) 532 (115)

Impairment and other non-cash adjustments (refer material items of income and

expense in attached Reconciliation of Results) in attached Reconciliation of Results)

167,435

88,811

Management and service fees paid 3,828 3,713 Advertising and promotions 98,395 116,399

Theme park operating expenses 33,220 30,346

Repairs and maintenance 19,891 14,747

Restructuring costs (refer material items of income and expense in attached Reconciliation

of Results)

7,589

6,668 Other provision reversed (refer material items of income and expense in attached

Reconciliation of Results)

--

(7,500)

Provision for doubtful debts (reversed) (3) 408

Bad debts written off (recovered) 169 (75)

Other expenses 56,550 54,503

Total expenses from continuing operations excluding finance costs 1,144,092

1,070,116

1.23 Finance Costs – Continuing Operations 2018 $A'000

2017 $A'000

Total finance costs before finance restructuring costs 30,635 31,715 Finance restructuring costs (refer material items of income and expense in

attached Reconciliation of Results)

850

--

Total finance costs 31,485 31,715

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Notes to the Consolidated Statement of Comprehensive Income (continued)

Net gain (loss) on sale – Continuing Operations 2018 $A'000

2017 $A'000

1.24 Net gain (loss) on sale of: Property, plant & equipment (255) (38) Investments and business 156,922 635

1.25 Calculation of income tax on continuing and discontinued operations

2018 $A'000

2017 $A'000

Prima-facie income tax benefit from continuing operations 8,441 22,792 Adjustments in respect of current income tax of previous years -- (679) Non-assessable income / expense reversals 47,077 3,761 Non-deductible expenses (325) (434) After-tax equity-accounted profits (losses) included in pre-tax loss 271 (4,259)

Net deferred tax balances recognised / de-recognised (refer income tax benefit

– material items, in attached Reconciliation of Results)

18,439

2,132 Deferred tax balances not recognised (49,037) (12,302)

Other (140) (660)

Total income tax benefit – continuing operations (item 1.6) 24,726 10,351 Income tax expense attributable to discontinued operations -- --

Total income tax benefit 24,726 10,351

1.26 Consolidated retained earnings

2018 $A'000

2017 $A'000

Retained earnings at the beginning of the period 70,290 159,564 Net profit (loss) attributable to members (item 1.11) 219 (66,718) Dividends and distributions paid or payable -- (22,556)

Retained earnings at end of financial period 70,509 70,290

Intangible items Consolidated – Current period – A$’000

Before tax

(a)

Related tax (b)

Related non-controlling

interests (c)

Amount (after tax) attributable to members

(d)

2.1 Amortisation of software and other intangibles

(16,370)

4,911

6

(11,453)

Comparison of half year profits (losses) 2018 $A'000

2017 $A'000

3.1 Consolidated profits (losses) from continuing and discontinued operations after tax attributable to members reported for the 1st half year (item 2.3 in

the half yearly report) 171,891 (6,706)

3.2 Consolidated losses from continuing and discontinued operations after tax attributable to members for the 2nd half year (171,672) (60,012)

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Consolidated Statement of Financial Position 2018 $A'000

2017 $A'000

Current assets 4.1 Cash and cash equivalents 63,393 100,400 4.2 Trade and other receivables 119,300 128,300 4.3 Film distribution royalties 47,704 57,310 4.4 Inventories 23,578 21,292 4.5 Current tax assets 2,373 12,326 4.6 Derivatives 1,153 94 4.7 Assets held for sale 40,610 11,839 4.8 Other 10,183 9,163

4.9 Total current assets 308,294 340,724

Non-current assets

4.10 Trade and other receivables 23,925 18,300 4.11 Investments – equity-accounted 31,742 30,037 4.12 Available-for-sale investments 1,737 407 4.13 Property, plant & equipment 639,943 615,813 4.14 Film distribution royalties 63,517 69,895 4.15 Intangibles – goodwill (net) 183,174 306,073 4.16 Intangibles – other (net) 70,501 75,797 4.17 Deferred tax assets 11,417 774 4.18 Derivatives 63 -- 4.19 Other 294 3,524

4.20 Total non-current assets 1,026,313 1,120,620

4.21 Total assets 1,334,607 1,461,344

Current liabilities

4.22 Trade and other payables 202,777 262,956 4.23 Interest bearing loans and borrowings 6,866 1,072 4.24 Derivatives 16 3,026 4.25 Income tax payable 6,880 39 4.26 4.27

Provisions (excluding tax liabilities) Unearned revenue

34,749 50,128

31,870 59,528

4.28 Liabilities held for sale 1,829 --

4.29 Total current liabilities 303,245 358,491

Non-current liabilities

4.30 Trade and other payables 42,736 31,347 4.31 Interest bearing loans and borrowings 395,024 626,418 4.32 Lease liability (refer note 1 below) 102,962 -- 4.33 Deferred tax liabilities 4,751 22,692 4.34 Derivatives -- 27 4.35 Provisions (excluding tax liabilities) 10,592 8,950 4.36 Unearned revenue 80,246 12,674 4.37 Other 1,240 613

4.38 Total non-current liabilities 637,551 702,721

4.39 Total liabilities 940,796 1,061,212

4.40 Net assets 393,811 400,132

Equity

Parent entity interest: 4.41 Contributed equity 225,548 225,176 4.42 Reserves 86,774 89,852 4.43 Retained earnings 70,509 70,290

4.44 Parent interests 382,831 385,318 4.45 Non-controlling interests 10,980 14,814

4.46 Total equity 393,811 400,132

Note 1. Refer Note 12 in the 31 December 2017 Half-Year Financial Report for additional disclosures in relation to Finance Lease resulting from sale and long-term leaseback of the VRL group’s freehold land on the Gold Coast, Queensland.

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5. Exploration and evaluation expenditure capitalised – N/A

6. Development properties - N/A

Consolidated Statement of Cash Flows 1 2018

$A'000 2017

$A'000

Cash flows from operating activities 7.1 Receipts from customers 1,068,498 1,138,760 7.2 Payments to suppliers and employees (1,031,131) (995,134) 7.3 Dividends and distributions received 1,019 22,029 7.4 Interest and other items of similar nature received 1,346 2,377 7.5 Finance costs (28,162) (30,141) 7.6 Income taxes refunded (paid) 9,796 (7,333)

7.7 Net cash flows from operating activities 21,366 130,558

Cash flows from investing activities

7.8 Purchases of property, plant & equipment (69,970) (66,451) 7.9 Purchases of software & other intangibles (14,926) (13,086) 7.10 Proceeds from sale of property, plant & equipment 733 9,051 7.11 Proceeds from sale and leaseback of property 99,991 -- 7.12 Purchases of investments / businesses (2,053) (7,483) 7.13 Proceeds from sale of investments / businesses 163,813 373 7.14 Loans to (or repaid to) other entities (10,224) (25,824) 7.15 Loans from (or repaid by) other entities 1,704 4,240

7.16 Net cash flows from (used in) investing activities 169,068 (99,180)

Cash flows from financing activities

7.17 Proceeds from borrowings 39,000 50,000 7.18 Repayment of borrowings (266,875) (22,406) 7.19 Dividends and distributions paid -- (22,556)

7.20 Net cash flows (used in) from financing activities (227,875) 5,038

7.21

Net (decrease) increase in cash held

(37,441)

36,416

7.22 Cash at beginning of period (see reconciliation of cash) 100,400 64,338 7.23 Exchange rate adjustments to item 7.22 434 (354)

7.24 Cash at end of period (see reconciliation of cash) 63,393 100,400

Notes to the Consolidated Statement of Cash Flows: 1. For the purposes of the statement of cash flows, cash includes deposits at call with financial institutions and other highly liquid investments

with short periods to maturities which are readily convertible to cash on hand and are subject to an insignificant risk of changes in value, net of outstanding bank overdrafts.

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Notes to the Consolidated Statement of Cash Flows (Continued):

Reconciliation of net loss to net operating cash flows

2018 $A'000

2017 $A'000

Net loss (3,411) (65,622)

Adjust for:

Depreciation 42,869 43,904

Amortisation 27,870 29,526

Impairment and other non-cash adjustments (refer item 1.22 and material items

of income and expense in attached Reconciliation of Results)

167,435

88,811

Provisions 1,725 (8,391)

Share-based payment (credit) expense (1) 414

Net gains on disposal of assets (refer item 1.24 and for 2018 material items of income

and expense in attached Reconciliation of Results)

(156,667) (597)

Unrealised foreign currency loss (gain) 396 (181)

Difference between equity-accounted results and cash dividends/interest

received

115

31,176

Difference between interest expense and interest paid on finance lease liability 1,462 --

Changes in assets and liabilities:

Trade and other receivables 13,320 23,483

Trade and other payables (59,175) (1,099)

Net current tax (20,769) (11,379)

Unearned income (14,008) (1,380)

Other payables and provisions 3,110 155

Inventories (3,203) 3,637

Capitalised borrowing costs 2,082 1,357

Deferred and other income tax liabilities 6,299 (5,877)

Prepayments and other assets (1,540) 2,923

Film distribution royalties 13,457 (302)

Net operating cash flows 21,366 130,558

Reconciliation of cash and cash equivalents Reconciliation of cash and cash equivalents at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

2018 $A'000

2017 $A'000

8.1 Cash on hand and at bank 62,943 85,907 8.2 Deposits at call 450 14,493 8.3 Bank overdraft -- --

8.4 Total cash at end of period – continuing operations 63,393 100,400 8.5 Cash on hand and at bank attributable to discontinued operations -- --

8.6 Total cash and cash equivalents at end of period 63,393

100,400

Cash on hand and at bank includes $2.9 million (2017: $5.5 million) of cash held on behalf of customers which is restricted and held in separate bank accounts and used for payment of promotional rebates. This balance cannot be called upon should the Group become insolvent.

Acquisition/disposal of controlled entities – N/A Undrawn credit facilities The VRL group has undrawn credit facilities at balance date of $31.0 million (2017: $30.0 million), and at the date of this report of $31.0 million.

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Non-cash financing and investing activities Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. (If an amount is quantified, show comparative amount.)

N/A

Other notes to the financial statements

Ratios

Current period

Previous corresponding

period

9.1

Loss before tax / revenue Consolidated loss from continuing operations before income tax expense (item 1.5) as a percentage of income (item 1.1) (2%) (7%)

9.2

Profit (loss) after tax / +equity interests Consolidated profit (loss) attributable to members of Village Roadshow Limited (item 1.11) as a percentage of parent entity equity at the end of the period (item 4.44) 0% (17%)

Earnings (loss) per share (EPS)

Current period


period

10.1 Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 30 of AASB133 Earnings Per Share are as follows.

Basic EPS1,2 Diluted EPS1,2

0.14c 0.14c

(41.3c) (41.3c)

Basic and diluted EPS from continuing operations are as follows:

Basic EPS1,2 Diluted EPS1,2

0.14c 0.14c

(41.3c) (41.3c)

Weighted Average Number of shares outstanding during the period:

Ordinary Shares – Basic EPS Ordinary Shares – Diluted EPS

161,855,150 161,855,150

161,607,443 162,107,143

Note 1. Basic and diluted EPS calculated in accordance with AASB 133: Earnings Per Share. Note 2. Under Accounting Standard AASB 2: Share-based Payment, shares issued under the company's various share plans are required to be accounted for as options. Shares issued under these plans are referred to as 'in-substance' options, and are included in Ordinary Shares for the purposes of the EPS calculation.

Net Tangible Asset backing

Current period A$


period A$

11.1 Net tangible asset backing per +ordinary security 0.80 0.02

Discontinued Operations 12.1 There were no discontinued operations in the year ended 30 June 2018 or 30 June 2017.

Control gained over entities having material effect

13.1 Name of entity (or group of entities) N/A

13.2 Consolidated profit (loss) from continuing operations after tax of the entity (or group of

entities) since the date in the current period on which control was +acquired

13.3 Date from which such profit has been calculated

13.4 Profit (loss) from continuing operations after tax of the entity (or group of entities) for the whole of the previous corresponding period

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Loss of control of entities having material effect 14.1 Name of entity (or group of entities) N/A

14.2 Consolidated attributable profit (loss) after tax of the entity (or group of entities) for the current period to the date of loss of control

14.3 Date to which the profit (loss) in item 14.2 has been calculated

14.4 Consolidated profit (loss) after tax of the entity (or group of entities) while controlled during the whole of the previous corresponding period

14.5 Contribution to consolidated profit (loss) from sale of interest leading to loss of control

Dividends & Distributions 15.1 Date the dividend is payable N/A

15.2 +Record date to determine entitlements to the dividend (i.e., on the basis of registrable

transfers received by 5.00 pm if +securities are not +CHESS approved, or security holding balances established by 5.00 pm or such later time permitted by SCH Business

Rules if +securities are +CHESS approved)

N/A

15.3 Has the dividend been declared? N/A

Amount per Security Amount per

security Franked amount per

security at 30% tax Conduit foreign

income per security

15.4

Final dividend: Current year – Ords

--

--

--

15.5 Previous year – Ords

-- -- --

15.6

Interim dividend: Current year – Ords

--

--

-- 15.7 Previous year – Ords

-- -- --

Total Dividend & Distribution per security

Current year Previous year

15.8 +Ordinary securities (declared in relation to the relevant year) -- --

Dividends & Distributions paid/payable on all securities

Current period $A'000

Previous corresponding Period $A'000

15.9 +Ordinary securities (each class separately) -- 22,556

15.10 Total (declared during the relevant year) -- 22,556

The +dividend or distribution plans shown are in operation N/A

The last date(s) for receipt of election notices for the +dividend or distribution plans N/A

Any other disclosures in relation to dividends (distributions) N/A

Details of aggregate share of net profit (loss) of associates Group’s share of associates’:

Current period

$A'000

Previous corresponding period $A'000

16.1 Profit (loss) from continuing operations before income tax 904 (11,561) 16.2 Income tax expense on continuing operations -- (1,936)

16.3 Share of net profit (loss) of associates 904 (13,497)

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Equity-accounted associates Details relating to equity-accounted associates are set out below.

Name of entity

Percentage of ownership interest held at end of

period or date of disposal

Contribution to net profit (loss) after

tax (item 1.4)

17.1 Equity-accounted associates Current period


period

Current Period A$’000

Previous corresponding period A$’000

Associates: Dartina Development Ltd.1 -- 50.00% -- 8,385 Entertainment Group Holdings Ltd.2 -- 50.17% -- (5,929) Village Roadshow Entertainment Group (BVI) Ltd.3 20.00% 20.00% -- -- iPic Entertainment Inc. (group) 4 25.07% -- -- -- iPic-Gold Class Entertainment LLC 4 -- 28.01% -- (19,196) VR iPic Finance LLC 4 -- 42.86% -- -- FilmNation Entertainment LLC 31.03% 31.03% 1,118 3,217

Other 5 N/A N/A (214) 26

Total 904 (13,497)

Notes: 1. As advised to the Australian Securities Exchange on 13 June 2017 (and updated on 11 August 2017), the VRL group had signed an

agreement to sell its 50% stake in the Singapore Cinema Exhibition business, Golden Village. As a result, effective from 1 June 2017, the investment in the holding company, Dartina Development Ltd. (“Dartina”), had been classified as Held for Sale, and equity accounting ceased from that date. As advised to the Australian Securities Exchange in October 2017, the VRL group signed an agreement to sell its 50% stage in Golden Village to Orange Sky Golden Harvest Entertainment (Holdings) Limited, the owner of the other 50% of Golden Village. The sale was completed on 26 October 2017. The gain on disposal of this Asset Held for Sale was $154.0 million after tax (included in the current period’s material items of income and expense in the Reconciliation of Results).

2. During the year ended 30 June 2018, the VRL group disposed of its 50.17% shareholding in the dormant former parent entity in the

Village Roadshow Entertainment Group business, Entertainment Group Holdings Ltd., for no consideration.

3. Village Roadshow Entertainment Group (BVI) Ltd. (“VREG”) is classified as an associate for accounting purposes, and it is noted that all VREG debt is non-recourse to the VRL group. The VRL group results only include interest or dividends received in cash from VREG, and in the year ended 30 June 2018, no cash interest was included in equity-accounted results (2017: A$0.7 million), and no cash dividends were received in either the current or previous corresponding periods.

4. As advised to the Australian Securities Exchange on 2 February 2018, the new holding company of iPic Gold Class Entertainment LLC, iPic Entertainment Inc., was listed on NASDAQ and funding of USD 15 million was raised from that listing. Following that restructuring, the VRL group’s shareholding in the iPic Entertainment Inc. group has reduced to 25.07%. In addition, the VRL group’s previous 42.86% shareholding in VR iPic Finance LLC has reduced to nil, and VRL’s guarantee exposure in relation to the iPic business has reduced from USD 24.2 million to USD 5.6 million. There is no other recourse to the VRL group.

5. In relation to ‘other’ associates referred to above, there have been no significant changes in the state of affairs during the period.

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Issued and quoted securities at end of current period (Description includes rate of interest and any redemption or conversion rights together with prices and dates.)

Category of +securities

Total number

Number quoted

Issue price per security (cents)

Amount paid up per

security (cents)

18.1

Preference +securities (description)

N/A

N/A

18.2 Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions

18.3 +Ordinary securities 1 161,859,555 161,859,555

18.4 Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks

89,382

(60,000)

89,382

(60,000)

18.5 +Convertible debt securities (description and conversion factor)

N/A

N/A

18.6 Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks

18.7 Options (description and conversion factor) Details of options over Ordinary shares issued in November 2012, with an effective grant date of 29 November 2012 were as follows:

Exercise Price

Expiry Date (if any)

Options over Ordinary shares 750,000 -- $3.41 1/3/2019 Options over Ordinary shares 750,000 -- $3.41 1/3/2019

Total Options over Ordinary shares 1,500,000 --

18.8

Changes during current period

(a) Issued during current period -- -- (b) Exercised during current period -- -- (c) Lapsed during current period 750,000 -- -- 1/3/2019

18.9

18.10

Debentures (description)


N/A

N/A

18.11

18.12

Unsecured notes (description)


N/A

N/A

Note 1. Accounting Standard AASB 2: Share-based Payment requires shares issued under the company's various share plans to be accounted for as options. Shares issued under these plans are referred to as 'in-substance' options, and are included in the Ordinary securities disclosed in item 18.3 and 18.4, and excluded from the Options disclosed in items 18.7 and 18.8.

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19.1 Segment Reporting1

Theme Parks Cinema Exhibition Film Distribution Marketing Solutions Other² Total

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

2018 $’000

2017 $’000

Reporting by Operating Segments – Continuing Operations:

Segment revenue – services 191,638 187,486 206,930 218,593 190,184 218,207 72,726 54,656 -- -- 661,478 678,942 Segment revenue – goods 105,262 108,226 86,835 87,768 114,311 141,092 -- -- -- -- 306,408 337,086

Total segment revenue 296,900 295,712 293,765 306,361 304,495 359,299 72,726 54,656 -- -- 967,886 1,016,028 Plus: Non-segment revenue -- -- -- -- -- -- -- -- 1,534 2,244 1,534 2,244 Less: Inter-segment revenue -- (20) -- -- (15,673) (19,369) (985) (763) -- -- (16,658) (20,152)

Total Revenue 952,762 998,120

Segment results before tax (24,446) (8,786) 36,177 55,287 6,751 13,816 4,082 5,975 -- -- 22,564 66,292 Non-segment result (Corporate) before tax -- -- -- -- -- -- -- -- (31,749) (33,500) (31,749) (33,500)

Operating (loss) profit before tax – segment purposes

(24,446)

(8,786)

36,177

55,287

6,751

13,816

4,082

5,975

(31,749)

(33,500)

(9,185)

32,792

Gain on disposal / dividend received – asset held for sale

--

--

154,006

5,038

--

--

--

--

--

--

154,006

5,038

Gain on disposal of business / reversal of onerous lease provision

--

--

2,916

7,500

--

--

--

--

--

--

2,916

7,500

Impairment and other non-cash adjustments (133,456) (71,000) -- (128) (32,526) (17,683) (1,453) -- -- -- (167,435) (88,811) Restructuring costs (4,120) (4,630) (211) (474) (688) (838) (465) (141) (2,955) (585) (8,439) (6,668) Equity-accounted losses on net investments -- -- -- (19,196) -- -- -- -- -- (6,628) -- (25,824)

Operating loss before tax (28,137) (75,973) Income tax benefit 24,726 10,351 Non-controlling interest 4,237 (317) -- -- -- -- (607) (779) -- -- 3,630 (1,096)

Total attributable profit (loss) after tax from continuing operations per the statement

of comprehensive income

219

(66,718)

Interest income 188 72 149 161 573 564 50 1 366 853 1,326 1,651

Finance costs before finance restructuring costs

16,298

14,070

4,659

4,696

4,440

4,399

2,461

2,487

2,777

6,063

30,635

31,715

Finance costs – finance restructuring costs (material items)

850

--

Total finance costs 31,485 31,715

Depreciation and amortisation expense 46,644 50,667 17,391 16,807 3,210 3,564 1,789 1,385 1,705 1,007 70,739 73,430

Equity-accounted net profit (loss) 904 (13,497)

Non-cash expenses other than depreciation 355 347 15 435 -- -- 254 -- -- 12 624 794

Capital expenditure 54,745 53,803 23,202 17,356 1,065 1,718 2,266 1,562 3,618 5,098 84,896 79,537

¹ Description of Reportable Segments: Theme Parks: Theme park and water park operations Cinema Exhibition: Cinema exhibition operations Film Distribution: Film, DVD & video distribution operations Marketing Solutions: Sales promotion and brand loyalty program operations ² The 'Other' column represents financial information which is not reported in one of the reportable segments

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20.1 Not used

Basis of financial report preparation 21.1 A description of each event since the end of the current period which has had a material effect and which is not already

reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

As advised to the Australian Securities Exchange on 2 July 2018, the VRL group signed an agreement on 29 June 2018 to sell its wholly owned Wet’n’Wild Water Park located in Western Sydney to Parques Reunidos. The sale is expected to generate net proceeds of approximately $37 million and is expected to complete in the first quarter of FY2019. The sale has resulted in an impairment loss of $24.7 million in the year ended 30 June 2018, which has been included in material items of income and expense in the attached Reconciliation of Results. The assets and liabilities relating to the Wet’n’Wild Water Park in Sydney have been classified as Held for Sale at 30 June 2018. As advised to the Australian Securities Exchange on 10 July 2018 (and updated a number of times in July and August 2018), the VRL group has completed a 5 for 26 pro-rata accelerated non-renounceable entitlement offer. The offer has raised net proceeds of approximately $50 million, and the net proceeds have been used to reduce the VRL group’s borrowings. Effective from 13 August 2018, the ownership percentage of the Topgolf Joint Venture (“Topgolf JV”) by the VRL group’s joint venture partner, Topgolf Australia Pty. Ltd. (“Topgolf Australia”) has reduced from 33.33% at 30 June 2018 down to 3.7%. As a result, the VRL group’s ownership percentage in the Topgolf JV has increased from 66.67% at year end to 96.3%. The amount receivable by the VRL group in relation to the Topgolf JV, which was approximately $10.9 million as at 30 June 2018, is still recoverable mainly through an increased share of property, plant & equipment. It is noted that Topgolf Australia has an option to increase its ownership in the Topgolf JV back to 33.33% prior to 31 December 2020, based on market value at the relevant time.

21.2 Material factors affecting the revenues and expenses of the economic entity for the current period. In a half yearly report, provide explanatory comments about any seasonal or irregular factors affecting operations.

Refer attached commentary.

21.3 Franking credits available and prospects for paying fully or partly franked dividends for at least the next year.

There were no franking credits available as at 30 June 2018. Future dividend payments will need to be assessed in conjunction with the franking account balance at the relevant time.

21.4 Unless disclosed below, the accounting policies, estimation methods and measurement bases used in this report are the same as those used in the last annual report. Any changes in accounting policies, estimation methods and measurement bases since the last annual report are disclosed as follows. (Disclose changes in accounting policies in the preliminary final report in accordance with

AASB 108: Accounting Policies, Changes in Accounting Estimate and Errors).

N/A

21.5 Revisions in estimates of amounts reported in previous interim periods. For half yearly reports the nature and amount of revisions in estimates of amounts reported in previous +annual reports if those revisions have a material effect in this half year.

N/A

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Basis of financial report preparation (continued) 21.6 Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent assets

since the last + annual report.

(a) Contingent Liabilities: Contingent liabilities are not materially different from those disclosed in the 30 June 2017 financial report as updated

in the 31 December 2017 half-year financial report, but the key matters are noted as follows: (i) Tax Audit by Australian Taxation Office: As disclosed in Note 22(a)(iii) in the 30 June 2017 financial report, as updated in the 31 December 2017 half-year

financial report, following a Client Risk Review, the Australian Taxation Office (“ATO”) advised in July 2016 that a Tax Audit was to be carried out in relation to the VRL Tax Consolidated group, covering the financial years from 2012 to 2015.

VRL has provided information requested by the ATO during the year to 30 June 2018. In July 2018, the ATO issued a

further request for information. VRL does not currently believe that any material impact will result from the Tax Audit. (ii) Guarantee issued in relation to Associate: As disclosed in Note 22(a)(v) in the 30 June 2017 financial report, as updated in the 31 December 2017 half-year

financial report, VRL had procured a bank guarantee to support the financing of an associated entity, VR iPic Finance LLC (“VRIF”), in which the VRL group previously had a 42.86% (3/7th) interest. VRIF had obtained debt financing to contribute funds to iPic-Gold Class Entertainment LLC (“IGCE”), which is also an associated entity of VRL (now held indirectly through iPic Entertainment Inc.). Following a restructuring of IGCE and VRIF in February 2018, VRL’s guarantee exposure in relation to the iPic business has reduced from USD 24.2 million to USD 5.6 million.

(b) Contingent Assets Contingent assets are not materially different from those disclosed in the 30 June 2017 financial report.

21.7 All financial results for the years ended 30 June 2018 and 30 June 2017 are in accordance with the requirements of

International Financial Reporting Standards (IFRS).

21.8 The presentation and classification of comparative items in this report have been adjusted where appropriate to ensure

that the disclosures are consistent with the current period.

Additional disclosure for trusts 22.1 Number of units held by the management company or responsible entity or their

related parties.

N/A

22.2 A statement of the fees and commissions payable to the management company or responsible entity. Identify initial service charges/management fees/other fees

Annual meeting The annual meeting will be held as follows:

Place Jam Factory Cinemas, 500 Chapel Street, South Yarra, VIC, 3141

Date 23 November 2018

Time 9:00 am

Approximate date the +annual report will be available 22 October 2018

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Compliance statement 1 This report has been prepared in accordance with AASB standards, other AASB authoritative / pronouncements and

Standing Interpretations Committee Interpretations or other standards acceptable to ASX.

Identify other standards used N/A

2 This report, and the +accounts upon which the report is based (if separate), use the same accounting policies. 3 This report does give a true and fair view of the matters disclosed. 4 This report is based on +accounts to which one of the following applies (Tick one)

The +accounts have been audited. The +accounts have been subject to review.

The +accounts are in the process of being audited or subject to review.

The +accounts have not yet been audited or reviewed.

5 The entity has a formally constituted audit committee.

Sign here: ____________________________ Date: 23 August 2018 (Company secretary) Print name: SHAUN DRISCOLL

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Documents

APPENDIX 4E - Preliminary Final Report · Preliminary Final Report – 30 June 2018 + See chapter 19 of the ASX Listing Rules for defined terms. Appendix 4E Page 1 23 August 2018