Positive market update  --up 17% at one stage today.

28 May 2020 EXPERIENCE CO LIMITED (ASX: EXP) COVID-19 UPDATE Experience Co Limited (ASX: EXP) today issues the following market update in relation to the impact of COVID-19 (‘coronavirus’) on its operations

• Operations have recommenced in New Zealand at our Queenstown Drop Zone. A number of Australian based Drop Zones are targeted to resume operations during June in line with the easing of Government regulations on social distancing and domestic travel restrictions. The health and safety of our employees and customers remains paramount and EXP has implemented best practice hygiene measures to ensure their health and safety.

• Experiences to be activated on a breakeven basis continuing with management’s approach to stringently manage cashflow through the near term. This will be staged by experience over coming months in line with relevant jurisdictional lifting of restrictions.

• Australia and New Zealand government job subsidy programmes triggered with the Australian Jobkeeper and New Zealand Wage subsidy programmes implemented for 360 eligible employees in Australia and 78 employees in New Zealand. These subsidies have assisted EXP in supporting our employees during this challenging period.

• Business well positioned to sustain an extended period of hibernation with $10 million cash as at 30 April 2020 and an additional $15 million undrawn capacity on the NAB debt facility. Assuming operations are suspended and no material changes in market conditions, the Group is anticipating the minimum monthly net cash outflow to average approximately$1 million per month to 30 September 2020.

• Facility Agreement Waivers in place waiving covenant testing for the 30 June 2020 testing period and deferring asset finance lease instalments (approximately $1.5 million) until 30 September 2020.

• Lease cost relief with the co-operation of our landlords and applying the spirit of the Code of Conduct for commercial leases. Monthly lease expenses through a combination of waivers and deferrals have been significantly reduced, including 100% rent relief for Ports North and fees and charges in our Great Barrier Reef business until 31 December 2020.

• Continuation of our strategy for business simplification, with the divestment of Hunter Valley and Byron Bay Ballooning businesses well progressed and other surplus asset sales processes ongoing.

• Good headway made on business process projects including implementing a new reservations system for the Skydiving business and process improvements across corporate functions.

• Senior Executives and Board Members have taken a 30% reduction in remuneration until 30 June 2020.

Some stunning movements upwards in my portfolio today. Lead by Exp up 77% in one day on 23 trades and 3.4% (637,000) of total shares (18.5m) traded.

Directors buying EXP:

5 March - John O’Sullivan (CEO),  purchased 99,805 ordinary shares on market.

9 March-  Neil George Cathie (Independent Non-Executive Director), purchased 185,891 ordinary shares on market.

Up 17% after reporting - was umming and arring about buying prior to results but was worried on impact of virus/bushfires/drought etc (you name it). Still i have shares in Forager and they hold this stock so indirectly benefited.  Do i buy now that the bad news is out of the way? I like their statement  "The Group’s Chairman, Bob East, said: “The strategic review initiatives have provided the Group with a stronger balance sheet and improved cost control focus" + the CEO (John OSillivan) is the old head of the Australian Tourism Commission

EXPERIENCE CO LIMITED (ASX: EXP) 1H20 RESULTS Experience Co Limited (ASX: EXP) today released its Appendix 4D and Financial Report for the half year ending 31 December 2019, delivering Underlying EBITDA of $9.1 million on revenue from continuing operations of $60.3 million.

Key Highlights

• Statutory net loss after tax of $7.1 million (1H19: $7.4 million profit) after non-cash impairment of $8.0 million

• Underlying EBITDA from continuing operations of $9.1 million (1H19: $15.0 million), reflects volume decreases across Skydiving and GBR Experiences

• Skydiving volume down 9.3% to 84,085 (1H19: 92,748) with weather conditions, and bushfires (smoke haze) impacting operations from Byron Bay to Great Ocean Road, and into Queenstown New Zealand

• GBR Experiences earnings in 1H20 impacted by cyclical downturn in Tropical North Queensland tourism market which saw Cairns airport arrivals down by 3.3% on prior period

• Balance sheet improvement, 31 December 2019 pro forma net debt of $7.3 million following the divestment of Great Barrier Reef Helicopters and non-core asset sales continuing

• Bushfires and COVID-19 (‘coronavirus’) expected to adversely impact 2H20, the Group continues to monitor ongoing developments, and be proactive in mitigating the impact on our key markets and operations

• Strategy remains to reset the business in FY20 with cost rationalisation and process improvement focus areas for 2H20.

The Group’s Chairman, Bob East, said: “The strategic review initiatives have provided the Group

Pros; No Debt, New Management, 70% market share (skydiving)

Cons: (short-term) effects on Oz tourism sector

worth a long term buy?

Experience Co (EXP), the operator of skydiving and adventure activities, is one of these. Management haven’t made a formal announcement about the effects of the bushfires and the virus outbreak, but when they do the news won’t be good. The company caters to skydivers in Australia and New Zealand and to reef visitors in Cairns. More than half are international tourists. As the bushfires raged, estimates from a tourism industry organisation were for at least a 10% reduction in the number of international visitors. With Australia banning foreign travellers who have been in China, those estimates will head lower. Experience Co’s revenue will be severely affected this year. With costs mainly fixed, profit will fall even further. The impact of past viral outbreaks have been short lived. Australian tourist numbers recovered within seven months of the SARS outbreak, although this virus will probably hit harder. The bushfires may have a longer term effect, with significant media coverage globally. However, a multi-year impact seems unlikely. Extra government funding has already led to the “Holiday Here This Year” campaign. Experience Co has almost no net debt. The business has an enviable market position in skydiving on both sides of the Tasman, flying seven of every ten jumpers. And a new management team, led by former Tourism Australia head John O’Sullivan, has already made some sensible capital allocation decisions.