IMAGES:  Ocean Paradise, Hainan Island, China under construction compared to the previous year. This was largely driven by two major film  productions, Unbroken, directed by Angelina Jolie and San Andreas, starring  Dwayne Johnson and Carla Gugino, both being shot at VRTP’s studios on  the Gold Coast. success to capitalise on the enormous potential in Asia. For the  past three years, VRL has been developing a major strategy for  building and managing theme parks in China and South East  Asia. VRL views this as one of the principal vehicles of the group’s  growth and a vital part of our future. VRL will continue executing our strategy of revitalising the Gold Coast  theme parks to ensure that the parks and the product offering remain highly  relevant and attractive to consumers. New attractions, together with a  number of other enhancements, will further underpin strong attendances in  future years. The formula for the success of this strategy includes leveraging  VRL’s proven expertise, carefully choosing key partners, and  making prudent investment decisions. This has involved  considerable investment in management resources to conduct  analysis, research, field trips and discussions with investors  and partners. Primarily, VRL has continued its effort to build  and deepen relationships, which are crucial in a region where  conducting business is all about trust and respect. Wet’n’Wild Sydney is one of the world’s biggest and most unique water  parks with over 40 rides incorporating the world’s best technology available. The inaugural season exceeded expectations with record attendances and  exceptional sales of season passes. The park boasts extreme attractions  including the Double Skycoaster, spectacular award-winning slides, a Lazy  River raft ride and Australia’s largest Wave Pool. The Company has multiple dynamic opportunities under  assessment with a view to develop the master plan to create  world class theme parks in the most attractive locations as a  major focus for the Company in the years ahead. Only the best  of these opportunities will be progressed to ensure that they will  lead to medium and long term profitability. On 12 December 2013 Wet’n’Wild Sydney successfully opened to record  crowds nine months ahead of its original schedule. This was an outstanding  achievement given the extent of the wet weather and other issues faced  during the construction period. VRL is extremely pleased with the overall  result and the financial performance of the new park in its first season of  operation, supported by the tremendous market response to the season  pass program, with passes sold out in the park’s first operating season at  impressive yield levels. VRL is well progressed with establishing a management team  and an Asian head office in Hong Kong. This will include a mix  of specialised VRTP managers, carefully sourced personnel  with international theme park experience and local knowledge. Whilst there will be initial development costs, this is a critical  step forward that will provide ‘on the ground’ expertise and an  important presence in the region, which is an essential part in  executing VRL’s strategy. The Wet’n’Wild Sydney park closed as planned at the end of the Easter  school holiday period and reopened for its much anticipated second season  in September 2014. Initial system and process related issues encountered  in the park’s inaugural season have been rectified in the off-season and VRL  is confident that this will further enhance the customer experience at this  world class water park. VRL’s Consulting Service agreement with Hainan R&F Ocean  Paradise Development Co. Ltd. (“R&F”), for the Hainan Island  Park, ‘Ocean Paradise’ continues to move forward. Hainan Island  is China’s largest island on the same latitude as Hawaii and a  popular tourist destination with up to 15 to 20 million visitors each  year. The mega-park will include an array of marine exhibits,  thrill rides and a large water park, being operational at different  stages during 2016. The project has experienced some delays in  the construction of essential infrastructure, roads and primary  services to the site, beyond the control of R&F. VRL is closely  monitoring progress and will assess targeted opening dates  during the course of the year. It is currently expected that the  management fees that will be payable by R&F to VRL for operating  the park are unlikely to commence until the 2016 financial year as  a result of these unforeseen delays. At the beginning of the year VRTP’s USA water parks division consisted of  three water parks, Wet’n’Wild Phoenix in Arizona, Wet’n’Wild Hawaii on the  island of Oahu, and the new park Wet’n’Wild Las Vegas, in Nevada, USA. In late November 2013 VRL exited its interests in Wet’n’Wild Phoenix and  Wet’n’Wild Hawaii whilst continuing to hold its approximately 51% interest in  Wet’n’Wild Las Vegas. INTERNATIONAL THEME PARKS Wet’n’Wild Las Vegas opened in late May 2013 on time and on budget and, as  Nevada’s best water park, it has enjoyed strong attendance and outstanding  season pass sales. The first season ended in October 2013 and reopened  in mid April 2014, commencing with limited open days, ramping up to seven  days from the last week in May. To kick start the calendar 2014 season, a new  award-winning, extreme water slide, Tornado, was added which has proven  to be a big drawcard and has assisted in differentiating the park’s superior  offerings and season pass ticket sales. VRL is also pleased to have recently formed a strategic alliance and  signed a Key Term Sheet with CITIC Trust Co. Ltd., a subsidiary of  CITIC Group, one of China’s largest finance conglomerates. The aim  of this alliance is to leverage the respective strengths of both parties  in order to make investments in theme parks and the surrounding  real estate in China and South East Asia. The VRL Board considered that it was an appropriate time to divest the  majority of our water park interests in the United States market as the  Company believed it would be difficult to achieve a significant presence  in that market. The competitive pressure to acquire properties had been  increasing with the upturn in the US economy and the Company considered  that management time and capital could be better focussed in countries  where the market is not yet mature and where higher returns are possible. For over 20 years VRL has been at the helm of Theme Park development  and management in Australia. We are using that vast experience and  VILLAGE ROADSHOW LIMITED In addition the Company has signed a number of Letters of Intent  (“LOI”), or Memoranda of Understanding (“MOU”) or other  agreements with various parties. At the date of this report these  include: • An LOI between VRL and US based SeaWorld Parks and  Entertainment Inc. to co-develop theme parks opportunities  04 CLOSE FILE X