West HQ Financial Report

CHAIRPERSON & CHIEF EXECUTIVE OFFICER REPORT

Dear West HQ Member,

West HQ’s strong results for the year demonstrate the strength of our operating model and the quality of our diversity as a business. Our businesses continue to respond well to the challenges and opportunities presented by changing market conditions.

In 2018 we recognised the need to use our strong balance sheet and access to debt to invest in future earnings and further protect the business from any future gaming regulation or unknown business risk.

Responsibly to pursue and invest in long term value creation to strengthen our existing business and to develop new platforms for growth remains our focus to remain well positioned for the future.

At that time (2018) ‘cashless gaming’ was not contemplated nor any other amendments that today are being considered to challenge our core business which was at that time circa mid 60 % of revenue, within a business that had plateaued at $94 million total revenue.

Now (2023), in our first year without interruption and distortion from either COVID-19 or construction, revenue achieved $111.5 million and a near 40 % contribution from our non-core businesses and those we invested in. Not only a considerable increase in revenue but also a more balanced contribution in earnings from core and non-core.

In a time with pressure on household budgets and consumer sentiment wanting better value for money services combined with rising inflation and changes in economic conditions necessitated various operational responses from management throughout the year.

Our financial performance measurement for earnings is EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation) as this has a closer relationship to cashflow and operational execution. EBITDA achieved was $19.2 million and along with a disciplined approach to capital allocation, has continued to strengthen our Balance Sheet.

We understand the importance of anticipating customer needs, looking after our team members, collaborating with business partners, investing in our local community, and looking after the environment. What was good last year won’t be good enough in the future, and our relentless focus on improvement creates future value to better serve our members and the wider community.

Our Performance

Our approach to portfolio management is to achieve key growth targets individually while also measuring the economic impact across our whole property.

Gaming delivered solid earnings and while not at the same level experienced in the extraordinary times of COVID19, has since 2018, in 2023, a growth exceeding compounding CPI. It remains the Board’s strategy to ‘earn less from more’ as we strive for excellence in customer care of responsible gaming and harm minimisation. Our commitment to pursue safer measures and participate in trial of future changes is to ensure the longer term future of West HQ and our community.

Health (fitness) reported strong growth and record earnings, with our unique and compelling offer providing recreational services at an international level. An extension in tenure with Gymnastics NSW to beyond Brisbane 2032 Olympics and our Sports Medicine secures long term tenants. Our Fitness (ONE55), Aquatic and Gymnastic programs all achieved peer recognition and record membership numbers.

Hotel (Novotel ) also delivered record earnings providing leading Average Daily Rate and RevPAR within our region. Even with ‘more beds’ now available within our region we remain a premium destination for all market sectors.

While our Hotel business is in the Maturity stage of its business life cycle, until we are able to increase the ‘bed number’ (rooms) we will in the future achieve incremental growth on room rate only.

It was pleasing to see earnings growth in Food and Beverage, which started to realise the benefits of strategic investment during the late second half of the year in a new restaurant (NewTownThai ) and a new offer (Harriett’s ) along with the recovery of our Events department. Revenue achieved record levels which was incredible considering the pressure on household budgets. An increase in foot traffic throughout West HQ is a key indicator to the necessity of a consistent quality Food and Beverage offer.

Entertainment (Coliseum@ Rooty Hill ) continues to expand its presence for West HQ as a destination precinct across consumer and commercial segments. We benefited from hosting a long term hire as the home of Australian Idol which returns in 2024 along with a diverse array of Australian and International talent across theatre, dance, and music.

Outlook

Our business is well placed to leverage and grow from the Coliseum and flow through to increased foot traffic for food and beverage, hotel, and gaming. The significant uplift to the business already experienced has further potential to improve revenue and earnings exponentially for the group.

West HQ’s year after year outstanding results do not happen by chance. West HQ’s results are an outcome of the Board and the leadership team’s careful planning, strong execution, and a continuous pursuit for excellence in all that we do.

Of course, our outstanding results would not be possible without our dedicated staff who deliver day after day for our customers, our communities, and our members.

On behalf of the West HQ Board we thank you for your continued support, and encourage you to read this report and attend the Annual General Meeting on 21 May 2024.

Dennis Dewhurst Richard Errington Chairperson Chief Executive Officer

DIRECTORS' REPORT

The financial report of West HQ Limited (the "Company/West HQ") is presented for the financial year ended 31 December 2023 and the auditor's report thereon.

DIRECTORS

The names of the Directors in office during the financial year and until the date of this report are set out below. Directors were in office for this entire period, unless otherwise stated.

N.J. Finch

Experience Retired Director since 2018

Member of the Club and Sub-Branch since 1992

Previously worked in consumer products industry

D.V. Dewhurst Experience Retired Director since 2012

Life member of the Club

Vice Chairperson from 2016 to 2018

Appointed Chairperson in 2018

Member since the Club 1984 and the Sub-Branch since 2005

Previously worked in manufacturing and import industry

A.J. Davey

Experience Retired

Director from 2003 to 2004 and 2008 to present.

Life member of the Club

Member of the Club and Sub-Branch since 1977

Previously worked in automotive industry

A.G.F. Hills

Experience

Retired

Director from 2002 to 2004 and 2006 to present

Life member of the Club

Member of the Club and Sub –Branch since 1981

Previously worked in retail industry

P.E. Hamrol Experience Retired Director since 2006

Life member of the Club

Member of the Club and Sub-Branch since 1980

Previously worked in transport and logistics industry

C.A. Pilao Experience Retired Director since 2012

Life member of the Club

Appointed Vice-chairperson 2018.

Member of the Club since 1988 and Sub-Branch since 2004

Career in the military as Lt Colonel (retired) in Philippine Armed Forces

S.E. Byrne Experience Service Centre Officer, HealthShare NSW

Director 2020

Member of the Club since 6 December 2005

Career spanning 30 years in the financial services industries including banking and superannuation. Working in NSW Health since 2021.

DIRECTORS' REPORT (CONTINUED)

D.J Otte Experience

M.A. Otte Experience

National Environmental Health & Safety Manager

Director since 2022

Member of the Club and Sub-Branch since 2014

Career in Environmental Health & Safety and previously in the military services

Workforce Management (Payroll services)

Director since 2022

Member of the Club since 2014

Career in workforce management

COMPANY SECRETARY

Mr Richard Errington was appointed to the position of Company Secretary on 14 June 2006. Mr. Errington is also the Chief Executive Officer.

DIVIDENDS

The Company is a not-for-profit organisation and is prevented by its constitution from paying dividends.

CORPORATE INFORMATION

West HQ Limited is a Company limited by guarantee that is incorporated and domiciled in Australia.

The registered office and principal place of business is 33 Railway Street, Rooty Hill, NSW 2766.

The number of members as of 31 December 2023 was 43,833 (2022: 45,259).

PRINCIPAL ACTIVITIES

The principal activities during the course of the financial year were the operation of a licensed club and management of the Novotel Sydney West HQ, ONE55 Health and Fitness, Sydney Gymnastic and Aquatic Centre and Sydney Coliseum Theatre.

There were no significant changes in the nature of these activities during the year.

OPERATING RESULTS

West HQ achieved revenue of $111.5 million, down 2% from the prior year. The solid revenue result is a testament to the resilience of the Company’s diversified portfolio of businesses during a period of economic restraint brought on by high interest rates and the cessation of government stimulus post-pandemic. Strong performances across fitness, hotel and the theatre were offset by a marginal decline in gaming revenue.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA*) was $19.2 million for the 2023 financial year and represents a 13% return on net assets. Management use EBITDA as the key metric of performance as it has a closer relationship to cashflow. The business generated a statutory loss after tax of $2.6 million which was in part driven by higher depreciation as a result of the re-estimation of the useful lives of the Company’s fixed assets.

DIRECTORS' REPORT (CONTINUED)

*EBITDA is a non-IFRS measure. A reconciliation of the statutory loss after tax is as follows:

The Company continues to generate strong cashflow. Surplus cash is deployed back into the business through investment initiatives as well as strengthening the balance sheet through reduction in debt. During the year, West HQ invested in its food and beverage business through the creation of a new restaurant (New Town Thai) and a new outlet (Harriet’s Chicken) that is situated in the Eat Street precinct. The Company repaid $8.8 million of bank debt during the year. Total borrowings on 31 December 2023 was $76.3 million (2022: $85 million). The Company's cash position is strong. Cash on 31 December 2023 was $10.2 million (2022: $11.4 million).

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There have been no significant changes in the state of affairs of the Company during the year.

SIGNIFICANT

EVENTS

AFTER THE REPORTING PERIOD

There were no significant events occurring after the reporting period which may affect either the Company's operations or results of those operations or the Company's state of affairs.

SHORT TERM OBJECTIVES

The short-term objectives are to position the services on offer to be effective in meeting the needs of its members and the community within the context of a competitive marketplace.

LONG TERM OBJECTIVES

The long-term objectives are to provide the infrastructure necessary to meet short term objectives and to provide a commercial result that ensures the longevity of its operations.

ENVIRONMENTAL REGULATION AND PERFORMANCE

The Board believes that there is adequate systems in place for the management of all of its environmental requirements and is not aware of any breach of these environmental requirements as they apply.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

During or since the financial year, the Company has paid premiums in respect of a contract insuring all the directors of West HQ Limited against legal costs incurred in defending proceedings for conduct involving:

(a) a wilful breach of duty; or

(b) a contravention of sections 182 or 183 of the Corporations Act 2001, as permitted by section 199B of the Corporations Act 2001.

DIRECTORS' REPORT (CONTINUED)

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS (CONTINUED)

The amount of the premium cannot be disclosed due to policy conditions.

INDEMNIFICATION OF AUDITOR

To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young (Australia), as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young (Australia) during or since the financial year.

MEMBER'S LIABILITY

The Company is a Company limited by guarantee and without share capital. In accordance with the constitution of the Company, every member of the Company undertakes to contribute an amount limited to $5 per member in the event of the winding up of the Company during the time he or she is a member or within one year thereafter.

The total amount that members of the Company are liable to contribute if the Company is wound up is $219,165 (2022: $226,295).

DIRECTORS' MEETINGS

The number of meetings of the directors held during the year and attended by the directors were as follows:

AUDITOR INDEPENDENCE

The lead auditor's independence declaration is set out on page 9 and forms part of the directors' report for the financial year ended 31 December 2023.

This report is made in accordance with a resolution of the directors:

D.V. Dewhurst Chairperson

West HQ Limited, 19 March 2024

Ernst & Young

200 George Street Sydney NSW 2000 Australia

GPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555

Fax: +61 2 9248 5959 ey.com/au

Auditor’s independence declaration to the directors of West HQ Limited

As lead auditor for the audit of the financial report of West HQ Limited for the financial year ended 31 December 2023, I declare to the best of my knowledge and belief, there have been:

a. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit;

b. No contraventions of any applicable code of professional conduct in relation to the audit; and

c. No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit.

Ernst & Young

Daniel Cunningham Partner

19 March 2024

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2023

Other comprehensive income/(loss)

Othercomprehensiveincome/(loss)thatmaybereclassified. toprofitorlossinsubsequentperiods(netoftax):

Theabovestatementofprofitorlossandothercomprehensiveincomeshouldbereadinconjunctionwiththeaccompanyingnotes.

Theabovestatementoffinancialpositionshouldbereadinconjunctionwiththeaccompanyingnotes.

STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2023

Theabovestatementofchangesinequityshouldbereadinconjunctionwiththeaccompanyingnotes.

STATEMENT OF CASH FLOWS

For the year ended 31 December 2023

Theabovestatementofcashflowsshouldbereadinconjunctionwiththeaccompanyingnotes.

NOTES

TO

THE FINANCIAL STATEMENTS

For the year ended 31 December 2023

1. CORPORATE INFORMATION

The financial statements of West HQ Limited (the "Company/West HQ") for the year ended 31 December 2023 were authorised for issue in accordance with a resolution of the directors on 19 March 2024.

The Company is incorporated and domiciled in Australia as a company limited by guarantee. In accordance with the Constitution of the Company, each member of the Company undertakes to contribute an amount limited to $5 per member in the event of the winding up of the Company during the time that he or she is a member or within one year thereafter.

The nature of the operations and principal activities of the Company are described in the directors' report. Information on related party relationships of the Company is provided in Note 17.

2. ACCOUNTING POLICIES

a) Basis of preparation

These general-purpose financial statements have been prepared in compliance with the requirements of the CorporationsAct2001 and AustralianAccountingStandards - Simplified Disclosures The Company is a not-forprofit entity.

The financial statements have been prepared on a historical cost basis. The financial statements are presented in Australian dollars ($).

b) Going concern

The financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business.

As of 31 December 2023, West HQ had a net current liability position of $6,438,807 (2022: $11,584,733) and made a loss of $2,576,395 (2022: profit of $8,169,532). Cashflow forecasts indicate that the business will be able to meet all the covenant and repayment terms by this date and accordingly, the financial report has been prepared on a going concern basis.

The financial report does not include any adjustments relating to the recoverability and classification of assets or amounts and classification of liabilities that might be necessary should the entity not continue as a going concern.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

2. ACCOUNTING POLICIES (continued)

c) Changes in accounting policy, disclosures, standards, and interpretations

AccountingStandardsandInterpretationsissuedbutnotyeteffective.

Certain Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Company for the annual reporting year ended 31 December 2023

The Company intends to adopt the new or amended standards or interpretations when they become effective.

Newandamendedstandardsandinterpretations.

The new and amended Australian Accounting Standards and Interpretations that apply for the first time in 2023 do not materially impact the financial statements of the Company.

d) Current versus non -current classification

The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when:

• It is expected to be realised or intended to be sold or consumed in the normal operating cycle.

• It is held primarily for the purpose of trading.

• It is expected to be realised within twelve months after the reporting period, or

• It is cash or a cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in the normal operating cycle.

• It is held primarily for the purpose of trading.

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

e) Cash and bank balances.

Cash in the statement of financial position comprises cash at bank and on hand. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash as defined above net of outstanding bank overdrafts.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

2. ACCOUNTING POLICIES (continued)

f) Trade and other receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The Company holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest rate (EIR) method.

Other receivables are recognised initially at fair value and subsequently measured at amortised cost using the EIR method, less an allowance for expected credit losses (ECLs).

For trade and other receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

g) Inventories

Inventories are valued at the lower of cost and net realisable value.

The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

2. ACCOUNTING POLICIES (continued)

h) Derivative financial instruments and hedge accounting

Initialrecognitionandsubsequentmeasurement

The Company use interest rate swaps to hedge its interest rate risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

For the purpose of hedge accounting, hedges are classified as cash flow hedges

Cashflowhedges

The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognised immediately in the statement of profit or loss and other comprehensive income. The cash flow hedge reserve is adjusted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change in fair value of the hedged item.

The amounts accumulated in OCI are accounted for, depending on the nature of the underlying hedged transaction. If the hedged transaction subsequently results in the recognition of a non-financial item, the amount accumulated in equity is removed from the separate component of equity and included in the initial cost or other carrying amount of the hedged asset or liability. This is not a reclassification adjustment and will not be recognised in OCI for the period. This also applies where the hedged forecast transaction of a non-financial asset or non-financial liability subsequently becomes a firm commitment for which fair value hedge accounting is applied.

For any other cash flow hedges, the amount accumulated in OCI is reclassified to profit or loss as a reclassification adjustment in the same period or periods during which the hedged cash flows affect profit or loss.

If cash flow hedge accounting is discontinued, the amount that has been accumulated in OCI must remain in accumulated OCI if the hedged future cash flows are still expected to occur. Otherwise, the amount will be immediately reclassified to profit or loss as a reclassification adjustment. After discontinuation, once the hedged cash flow occurs, any amount remaining in accumulated OCI must be accounted for depending on the nature of the underlying transaction as described above.

i) Prepayments

Prepayments are recognised in the event that payment has been made in advance of obtaining right of access to receipt of services and measured at nominal amounts. These are derecognised and charged to statement of profit or loss and other comprehensive income either with the passage of time or through use or consumption.

j) Investment properties

Investment properties are measured at cost less accumulated depreciation and accumulated impairment losses. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of investment property.

The Company’s investment property estimated useful lives for the current and comparative years are both 40 years.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

2. ACCOUNTING POLICIES (continued)

k) Property, plant and equipment

Plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

• Club buildings 25 to 40 years

• Club plant & equipment 3 to 13 years

• Motor vehicles 4 to 5 years

• Hotel and buildings

25 to 40 years

• Hotel plant & equipment 5 to 7 years

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss and other comprehensive income when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

2. ACCOUNTING POLICIES (continued)

l) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

(i)Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

• Gym equipment

• Other plant and equipment

1 to 3 years

3 to 4 years

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment.

(ii)Leaseliabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including insubstance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

2. ACCOUNTING POLICIES (continued)

l) Leases (continued)

(ii)Leaseliabilities(continued)

payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

(iii)Short-termleasesandleasesoflow-valueassets

The Company applies the short-term lease recognition exemption to its short-term leases of plant and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

m) Impairment of non -financial assets

Non-financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are clubbed at the lowest levels for which there are separately identifiable cash inflows that are largely independent of the cash inflows from other assets or clubs of assets (cash-generating units). Non-financial assets that suffered an impairment are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed.

n) Trade and other payables

Trade and other payables are recognised initially at fair value and subsequently carried at amortised cost and due to their short-term nature they are not discounted. They represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

2. ACCOUNTING POLICIES (continued)

o) Borrowings

All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs.

After initial recognition, borrowings are subsequently measured at amortised cost using the EIR method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying amount of the loans and borrowings.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for a least 12 months after the reporting date.

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset (i.e. an asset that necessarily takes a substantial period of time to get ready for its intended use or sale) are capitalised as part of the cost of that asset. All other borrowing costs are expensed in the year they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. The Company does not currently hold qualifying assets but, if it did, the borrowing costs directly associated with this asset would be capitalised (including any other associated costs directly attributable to the borrowing and temporary investment income earned on the borrowing).

p) Employee benefit liabilities

Wages,salariesandsickleave

Liabilities for wages and salaries, including non-monetary benefits, which are expected to be settled within 12 months of the reporting date are recognised in respect of employees' services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.

Longserviceleaveandannualleave

The Company does not expect its long service leave or annual leave benefits to be settled wholly within 12 months of each reporting date. The Company recognises a liability for long service leave and annual leave measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

2. ACCOUNTING POLICIES (continued)

q) Revenue from contracts with customers

Revenue is recognised in accordance with AASB 15 Revenue from contracts with customers . Revenue that is recognised over a period of time is recognised when the Company satisfies a performance obligation by transferring a promised good or service to a customer. Revenue is measured at the fair value of the consideration received or receivable

Revenue from the sale of goods, services and gaming are recognised at the point of sale, which is where the customer has taken delivery of the goods, received the service and the risks and rewards are transferred to the customer. Amounts disclosed as revenue are net of sales returns and trade discounts.

Interest revenue is recognised on an accrual basis using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Other revenue is recognised when it is received or when the right to receive payment is established. All revenue is stated net of the amount of goods and services tax (GST).

r) Rental revenue

Rental income from investment property is recognised in profit or loss on a straight-line basis over the term of the lease.

s) Contract liabilities

A contract liability is recognised if a payment is received, or a payment is due (whichever is earlier) from a customer before the Company transfers the related goods or services. Contract liabilities are recognised as revenue when the Company performs under the contract (i.e., transfers control of the related goods or services to the customer).

t) Finance cost

Interest expense is recorded using the EIR method. The EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. Interest expense is included in finance cost in the statement of profit or loss and other comprehensive income.

u) Finance income

Interest income is recorded using the EIR method. The EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. Interest income is included in finance cost in the statement of profit or loss and other comprehensive income.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

2. ACCOUNTING POLICIES (CONTINUED)

v) Taxes

(i)Currentincometax

The Income Tax Assessment Act 1997 (Amended) provides that under the concept of mutuality, the Company is only liable for income tax on income derived from non-members and from outside entities. Current tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period's taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

(ii)Deferredtax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except when the deferred income tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

2. ACCOUNTING POLICIES (CONTINUED)

v) Taxes (continued)

(iii)Goodsandservicestax(GST)

Revenues, expenses, and assets are recognised net of the amount of GST, except:

• When the GST incurred on a sale or purchase of assets or services is not payable to or recoverable from the taxation authority, in which case the GST is recognised as part of the revenue or the expense item or as a part of the cost of acquisition of the asset, as applicable.

• When receivables and payables are stated with the amount of GST included

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as part of operating cash flows.

w) Comparatives

Where necessary, comparative figures have been reclassified to conform with changes in presentation of assets and liabilities but resulting in no impact to the overall profit for the year.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Leases – Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entityspecific estimates (such as the subsidiary’s stand-alone credit rating).

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

4. REVENUE AND EXPENSES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

5. INCOME TAX EXPENSE

a) Income tax expense

(benefit)/expense are:

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

5. INCOME TAX EXPENSE (continued)

Deferred tax assets

Deferred tax at 31 December relates to the following:

The Company has tax losses that arose in Australia of $13,398,901 (2022: $10,664,696) that are available indefinitely for offsetting against future taxable profits of the companies in which the losses arose.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

Forthepurposeofthestatementofcashflows,cashandcashequivalentscomprisetheabove.

During 2023, $nil (2022: $nil) was recognised as an expense for inventories carried at net realisable value.

6. CASH & BANK BALANCES

7. TRADE AND OTHER RECIEVABLES

8. INVENTORIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023 10. PROPERTY, PLANT AND EQUIPMENT

* The transfer between asset categories reflects the reassessment of sub-asset categories within the Sydney Coliseum Theatre enabling improved depreciation estimates.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

10. PROPERTY, PLANT AND EQUIPMENT (continued)

Core property

The following is the core property:

33 Railway Street, Rooty Hill, NSW, 2766, excluding the Sydney Gymnastic and Aquatic Centre; the adjacent carpark; and the Investment property leased to TEEG Australia Pty Ltd (Zone Bowling).

Non -core property

The following is the non-core property:

The Sydney Gymnastic and Aquatic Centre; the adjacent carpark; and the Investment property leased to Zone Bowling.

11. FINANCIAL ASSETS

At 31 December 2023, the Group had an interest rate swap agreement in place with a notional amount of $50,000,000 (2022: Nil) whereby the Group receives a fixed rate of interest of 4.4275% and pays interest at a variable rate on the notional amount. The swap is being used to hedge the exposure to changes in the fair value of its loans attributable to movements in interest rates.

The increase in fair value of the interest rate swap of $1,736,440 (2022: decrease of $202,417) has been recognised in other comprehensive income.

12. LEASES

Company as a lessee

The Company leases plant and equipment expiring from 1 to 5 years. Leases generally provide the Company with a right to renewal at which time all terms are negotiated. Lease payments comprise a base amount plus an incremental contingent rental. Contingent rentals are based on either movements in the Consumer Price Index or operating criteria.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

12. LEASES (continued)

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:

Presented below is a maturity analysis of future lease payments:

The amount of expense relating to short-term leases and leases of low-value assets recognised in profit or loss during the year ended 31 December 2023 was $nil (2022: $nil).

Company as a lessor

The Company leases out its investment property held under operating leases. The Company and TEEG Australia Pty Limited (Zone Bowling) has a lease in place for a term of 10 years with further option to renewal period. The Company also leases out portions of the Sydney Gymnastic and Aquatic Centre (SGAC) under operating leases. The Company and the tenants have a lease in place for a term of 10 years with further option to renewal period.

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

14. BORROWINGS (continued)

The bank loans are interest bearing and will mature on 30 May 2026 (2022: 28 February 2024).

Security

Security covering the above facilities comprises a registered mortgage over all the freehold property of the Company situated at 33 Railway Street, Rooty Hill.

15. EMPLOYEE BENEFIT LIABILITIES

16. COMMITMENTS

(a) Commitments

There were no commitments as at the reporting date which would have a material effect on the Company's financial statements as at 31 December 2023 (2022: $nil).

(b) Contingent liabilities

The directors are not aware of any contingent liabilities that have arisen in respect of the Company (2022: $nil).

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 December 2023

17. RELATED PARTY DISCLOSURES

(a) Key management personnel remuneration

The key management personnel remuneration was $2,848,410 for the year ended 31 December 2023 (2022: $2,287,226).

(b) Key management personnel transactions and balances with the Company

From time to time, key management personnel of the Company, or their related entities, may purchase goods and services from the Company. These purchases are on the same terms and conditions as those entered into by third parties and are trivial or domestic in nature.

No key management personnel have transacted with the Company since the end of the previous financial year and there were no outstanding balances involving key management personnel’s interests existing at year-end.

18. EVENTS AFTER REPORTING PERIOD

There were no significant events occurring after the reporting period which may affect either the Company's operations or results of those operations or the Company's state of affairs.

19. AUDITOR’S REMUNERATION

The auditor of West HQ Limited is Ernst & Young (Australia).

DIRECTORS ’ DECLARATION

For the year ended 31 December 2023

In accordance with a resolution of the directors of West HQ Limited (the "Company"), I state that:

In the opinion of the directors:

a) The financial statements and notes of the Company for the financial year ended 31 December 2023 are in accordance with the CorporationsAct2001 , including:

i. giving a true and fair view of the Company's financial position as at 31 December 2023 and its performance for the year ended on that date; and

ii. complying with Australian Accounting Standards - Reduced Disclosure Requirements and the CorporationsRegulations2001 ; and

3. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

D.V. Dewhurst

D.V. Dewhurst Chairperson

West HQ Limited, 19 March 2024

Independent auditor’s report to the members of West HQ Limited

Opinion

We have audited the financial report of West HQ Limited (the Company), which comprises the statement of financial position as at 31 December 2023, the statement of profit and loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:

a. Giving a true and fair view of the Company’s financial position as at 31 December 2023 and of its financial performance for the year ended on that date; and

b. Complying with Australian Accounting Standards – Simplified Disclosures and the Corporations Regulations 2001.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Information other than the financial report and auditor’s report thereon

The directors are responsible for the other information. The other information is the directors’ report accompanying the financial report.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the financial report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Simplified Disclosures and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

► Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

► Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

► Evaluate the overall presentation, structure and content of the financial report, including

the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Ernst & Young

Daniel Cunningham Partner

Sydney

19 March 2024