Event Hospitality & Entertainment : Chairman's Address to Shareholders

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CHAIRMAN'S ADDRESS

TO THE ANNUAL GENERAL MEETING OF SHAREHOLDERS

FRIDAY 22 OCTOBER 2021

It is a pleasure to welcome all shareholders, friends and colleagues to our Annual General Meeting. Due to current COVID-19 restrictions, this year's meeting is being held online. I look forward to returning to an in- person meeting next year.

Reflecting briefly on the result for the previous financial year, the 2021 Annual Report, which includes the financial statements for the year ended 30 June 2021, was released to shareholders in September 2021. The Group's total net loss after tax for the year was $48.0 million, whilst the normalised result after tax was a loss of $54.1 million.

Whilst Australia and New Zealand have experienced harsher lockdowns in recent months, relative to prior year, it has been pleasing to see the encouraging signs across all of our businesses when they have been able to trade. We have invested in best practice COVID-19-safe environments and there is much pent-up demand for our businesses as evidenced by the results in the second half of the 2021 financial year.

Whilst Jane will comment on the results for the past quarter, which have been amongst the toughest of the pandemic to date, I remain enormously confident in the future, underpinned by the Group's three strategies of growing revenue above market, maximising assets, and business transformation. Your Board and management team has transformed the culture, capability and operating models of the Company. We are a new Company, and we are excited about the benefits that can be realised from these transformation initiatives into the future.

In December 2020, the Group announced that the sale of the German cinema exhibition operation to Vue International Bidco plc ("Vue") was deemed prohibited by the German Federal Cartel Office ("FCO") as a result of Vue's failure to satisfy the FCO's condition for the sale transaction. The Group continues to consider all of its legal options in relation to Vue's breach of the Sale and Purchase Agreement. Jane will comment on the trading performance of the German business in her address.

The Board continues to review, assess and monitor appropriate capital management initiatives and strategies. This program is managed within the context of, in the short-term, ensuring adequate liquidity is available to meet the challenges presented by COVID-19, and in the medium to long-term, maintaining a strong balance sheet that will support the development of key assets and maximise sustainable and long- term total return to shareholders.

As foreshadowed last year, to assist liquidity the Group did not pay an interim or final dividend for the year ended 30 June 2021 and will not pay an interim dividend for the half year ending 31 December 2021. Future dividend payments will be subject to Board consideration and approval having regard to all relevant circumstances including lender gearing requirements and the Group's trading performance.

EVENT HOSPITALITY & ENTERTAINMENT LIMITED | ACN 000 005 103

478 GEORGE STREET SYDNEY NSW 2000 | GPO BOX 1609 SYDNEY NSW 2001 | [phone]

CINEMAS | EVENT | BCC | GU FILM HOUSE | CINESTAR | MOONLIGHT

HOTELS & RESORTS | RYDGES | QT | ATURA | THREDBO

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The Group's total cash balance at 30 June 2021 was $121 million with total debt outstanding of $476 million, which provides considerable headroom in terms of available liquidity with the Group's core debt facility of $650 million. This facility will be maturing in July 2023.

Event has always prided itself on the strength of its balance sheet which is underpinned by property holdings, and our strong balance sheet has assisted in securing the renewal and increase in our debt facilities.

The Board periodically reviews and assesses the appropriateness of the Group structure and in that context a high-level review is currently in progress.

The Board is pleased with management's consolidated focus on core property assets, defined as operating assets in key locations, including central business district locations, and assets that offer potential either for conversion to operating assets or to create significant value through major developments. The Board is further encouraged by the results achieved to date from the Group's non-core property disposal strategy, announced in February, and Jane will provide a further update on progress with this strategy in her address.

The Group has continued to make significant progress with the approvals process for major redevelopments of the properties located at 525 George Street and 458-472 George Street in Sydney, with commencement for the 525 George Street development expected in the 2024 financial year and commencement for the 458-472 George Street development expected in the 2026 financial year. The Group is considering appropriate funding options and structures for these major property developments including the involvement of a development partner for the 458-472 George Street project.

It has been pleasing in recent months to witness the strong recovery in the Company's share price and hear positive feedback from the investment community recognising the merits of the Group's strategy.

The Group has been guided by the fourth edition of the ASX Corporate Governance Council's Principles and Recommendations during the year, and the Corporate Governance Statement has been published on the Group's website. This statement sets out the corporate governance practices and procedures and should assist shareholders in understanding and appreciating the importance placed by the Board upon good corporate governance.

The Board also focuses on maintaining an appropriate approach to remuneration, and details of this approach are dealt with in the Annual Report. In particular, the Group's policies are designed to, as far as possible, ensure that the remuneration package is reflective of an employee's duties and responsibilities and to enable the Group to attract, motivate and retain high calibre executives.

In considering appropriate remuneration for senior executives, in 2020 the Board resolved to implement a recognition and retention award to recognise the additional effort required from the CEO and her executive team during the recovery period and the importance of retaining the executives during this critical period. The recognition and retention award for the CEO was approved by shareholders at last year's Annual General Meeting.

In this context, taking into account the remuneration forgone by the CEO, and considering that the Group's 2017 and 2018 plans did not vest and that the 2019 plan is unlikely to vest, the Board considers it appropriate that the recognition and retention incentive award approved at last year's Annual General Meeting be extended and has resolved to seek shareholder approval for this additional award. This matter will be considered by shareholders later in the meeting. This application of the award is recommended at half the value approved last year.

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Your Board and management continue to focus on optimising the Group's position so it can effectively navigate through this period. In the short-term, the relaxation of government restrictions provides reason for optimism that the worst is now behind us. In the longer term, the Group is positioned well to be able to take advantage of appropriate opportunities as they arise.

I and the Board acknowledge the outstanding efforts of the CEO, especially in the leadership shown in responding to the impact of COVID-19 on our operating businesses. I am confident the actions of Jane and her team will provide a strong platform for the future. To the rest of the executive team and all Group employees I extend our thanks for their collective and personal efforts. We are proud to have such a depth of experience and recognise the contribution you have made which has been, and will continue to be, invaluable as we embrace the opportunities that will arise in the future as we transition out of the COVID- 19 period.

As I stated last year, difficult decisions have seen many of our valued employees leave us and to them and their families I express my appreciation for their past support. I also acknowledge the difficulties many have faced due to stay-at-home orders, and I thank you for your perseverance in these times.

I would also like to thank my co-directors for their efforts during the year and particularly thank our 7,000 shareholders for your on-going support.

I will now ask Jane to present her address. Thank you.

Alan Rydge

Chairman

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CHIEF EXECUTIVE OFFICER'S ADDRESS

TO THE ANNUAL GENERAL MEETING OF SHAREHOLDERS

FRIDAY 22 OCTOBER 2021

Thanks Alan and good morning everyone.

Whilst we continue to face challenges from the global COVID-19 pandemic, I could not be prouder of how well our teams continue to respond to these challenges.

Turning now to the results for the year ended 30 June 2021, we saw a significant turnaround in the second half of the year when restrictions eased and there were signs of a return to pre-COVID-19 demand.

Group revenue excluding the benefit of government subsidies was $540.7 million, down $449.3 million or 45.4% on the prior year. Group revenue in the second half was up 30.9% on the first half and for divisions that were open, all exceeded revenue on the comparable half year period.

The second half performance of each of our divisions that were open, clearly demonstrated that when government restrictions are lifted, demand returns quickly. In Entertainment, with 80% of cinemas in the USA open by the end of the year, and cinemas re-opening globally, studios began to release blockbuster films. We evidenced the immediate demand from customers returning to cinemas; as an example, Easter 2021 outperformed the pre-COVID-19 Easter 2019 weekend.

By the fourth quarter, US hotel occupancy had reached 60%. Despite various interstate and international travel restrictions, the Group's Hotels in Australia and New Zealand experienced quarter-on-quarter improvement in trading, reaching 63.1% occupancy in the fourth quarter with QT reaching 69.6%.

At Thredbo, government restrictions delayed the start of the winter season and capped the available audience to around 50%. However, the changes we have made to the business model offset the impact and delivered an EBITDA margin improvement from 33.6% to 37.9%. Also, in line with the growing demand relating to health and wellbeing experiences, we had a record result in summer, which contributed to Thredbo achieving a strong result for the full year.

Revenue in the second half exceeded the first half as well as the second half of the previous financial year for Entertainment in Australia and New Zealand, and Hotels & Resorts.

In total, we've achieved $264 million of active cost management savings excluding government subsidies since COVID began to 30 June 2021. Active cost management initiatives mitigated around 35% of the revenue decline, thanks to the outstanding effort by the team.

The Group's unallocated corporate costs were down 12.6% on prior year. This included the voluntary salary reductions from myself and the executive team, and reduced Board fees. In addition, no bonus payments were made in the financial year and no long-term incentives vested.

EVENT HOSPITALITY & ENTERTAINMENT LIMITED | ACN 000 005 103

478 GEORGE STREET SYDNEY NSW 2000 | GPO BOX 1609 SYDNEY NSW 2001 | [phone]

CINEMAS | EVENT | BCC | GU FILM HOUSE | CINESTAR | MOONLIGHT

HOTELS & RESORTS | RYDGES | QT | ATURA | THREDBO

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The unallocated cost savings were partially offset by a material increase in insurance premiums of $2.0 million and overall, the Group's insurance costs escalated to $11.2 million, due to extremely challenging insurance market conditions.

Overall, the strong return of demand for our businesses combined with our active cost management and government support, where available, underpinned all divisions achieving positive EBITDA for the second half.

We saw a significant turnaround from the first half Group EBITDA loss of $31.1 million, to a full year Group EBITDA of $27.2 million, and a positive operating cash flow in the second half of $49 million to keep net debt to pre-COVID-19 levels.

There was a 15.7% improvement in total reported net loss year on year from $57 million to $48 million.

The overall independent value of the Group's property portfolio increased to $2.1 billion at 30 June 2021 based on updated independent valuation reports. Excluding Rydges Melbourne, Rydges North Sydney and Rydges Queenstown, the portfolio valuations increased 8.4%. In relation to these three properties, Rydges Melbourne has been identified as a priority asset with a major upgrade programme in planning, Rydges North Sydney has been identified as a non-core property and is expected to be sold in the year ending 30 June 2022, and the Rydges Queenstown accommodation wings were closed in February 2019 and work is underway to determine options for seismic strengthening.

We are on track to achieve the goal of realising $250 million of proceeds from non-core property asset sales within two years. As a reminder, a non-core property is any property not related to our operating businesses and with no potential to be developed into an operating business, or a property located in city fringe or regional location, particularly if significant capital investment is required to stay-in-business.

Following the full year update we have made further progress on achieving our goal. We are pleased to announce that we have sold Rydges Bankstown for $28 million, 7.7% above the recent valuation on 30 June 2021 and will retain a Rydges management agreement to continue to operate this property. We are well advanced with the sales process for the commercial Civic Building in Canberra with the expressions of interest campaign closing on 28 October. In addition, expressions of interest closed for Rydges North Sydney on 14 October and we are in the process of evaluating the interest in the property. Subject to achieving our price expectations we expect to divest both of these properties in this financial year. We will provide a further update on progress at the half year results in February.

In terms of the balance sheet, the net debt position improved to $355.5 million at 30 June, (from $452 million at the half year, and $421 million at June prior year) and at 30 June we had $173.6 million of headroom in our core debt facility which matures in July 2023. We are in a good position to navigate the current COVID-19 headwinds.

Despite these headwinds, we are very pleased with the progress on our future growth strategies. We achieved a record period of hotel network expansion. Our strategy to expand our hotels market from the 'comfort and boutique' segments, to a broader 'budget through to luxury' segments, via existing and new brands is proving successful. We have also refreshed the Rydges brand, positioned as "refreshingly local" and leveraging our competitive advantages.

QT Auckland opened in the year ended 30 June 2021, a stunning property already being recognised for awards in design and food and beverage and is the first QT management agreement in the Group. With a further two agreements signed for QT Newcastle, opening later in 2022, and QT Parramatta, opening 2024, the QT Group has grown to 12 hotels.

Rydges continued to expand to 44 hotels, three new agreements were signed in the year for Rydges Gold Coast Airport (October 2020), Rydges Formosa Resort (December 2020) and Rydges Port Adelaide (opening 2023).