ANNUAL REPORT 2017 THE ONLY REAL CASINO MESSAGE FROM THE CHAIRMAN OF THE BOARD
In 2017, we managed to maintain the positive trend of recent years, with a solid result. Highlights from last year included the continued rise in our guest loyalty score, recognition for our responsible gaming policy in the form of a European certificate and the agreement on a long-term collective labour agreement after some intensive negotiations. And of course we also had the fire at our casino in Groningen last year. The collective labour agreement and the fire clearly demonstrated our resilience in the face of difficult circumstances.
The world around us is changing rapidly. If we are to maintain and strengthen our position, it is vital that we continue to anticipate and respond to economic, political, social and market conditions. Our guests are obviously the main priority in everything we do. We express this through our friendliness and commitment, but also through renewal and product innovation and with our continuous attention for safe and responsible gaming.
Solid result Holland Casino has got back on the path to solid growth over the past few years, and in 2017 we were also able to settle a number of long-running and complicated issues. The improved macroeconomic conditions, the varied range of games we offer, the high level of hospitality and our efficient and ethical market approach all contributed to our solid results in 2017.
Our gross income came in at EUR 639.2 million, an increase of 5.2% compared to the previous year. Pre-tax profit increased substantially, by EUR 16.3 million to EUR 98.0 million. This was partly due to the one-off income from the insurance payment related to the fire in Groningen. Our underlying profit is robust and showed a modest upward trend.
Erwin van Lambaart 2 Last year saw a slight decline of 1.5% in the number of visits, to 5.8 million, renovated casinos are trend-setting, open and transparent to the world while average spending per visit was up 6.9% at EUR 109. The slight around them and offer innovative gaming options and a top-quality decline in visits was largely due to the fact that we were operating two gastronomic experience. casinos fewer for part of the year: Groningen and Schiphol. Care for our guests and attention for responsible gaming are always Due to the even more stringent application of our Responsible Gaming our top priority. We deliberately choose to maintain a trend-setting Policy (Preventiebeleid Kansspelen - PBK), the number of monitoring Responsible Gaming Policy and our company and employees are interviews once again increased slightly in 2017. extremely motivated to fulfil this important role in society. This is visible throughout our operations and in our contacts with guests.
We are extremely proud that Holland Casino was awarded a European Holland Casino invests certificate for our Responsible Gaming Policy in 2017. This puts us continuously in the quality and among the absolute top of European casinos when it comes to addiction experience“ of its casinos prevention and underlines just how seriously we take this aspect of our business.
“ Connection Surprise Connection is and will remain an important theme for Holland Casino. Last year we once again focused on providing the highest possible level of hospitality, and together with our employees we were able to surprise We are in a position to differentiate ourselves, now and in the future, our guests time and again. A great example of this was the renewed thanks to the professionalism of our employees. We believe it is important Food & Beverage concept Global Kitchen at our Rotterdam casino, as to offer them opportunities to continue to develop their talents. Following was the pilot with extended opening hours at that same casino. The an evaluation of our existing development programmes, we extended Net Promoter Score we use to measure our guests loyalty continued to our leadership programme in 2017. In addition, we have stepped up our increase in 2017, rising to 30 from 28 the previous year. cooperation with educational institutions, which gives us the opportunity to actively guide young talents towards a career at our company. We invest continuously in the quality and experience we provide at our casinos. We are currently working on a number of rebuilding and reno In the past period, we have noted that our employees felt the need for vation projects in Venlo, Utrecht and Valkenburg and we successfully greater certainty. Following a period of intensive talks, we reached a completed the renovation of the Rotterdam casino in 2017. The planned negotiating agreement with the trade unions on a new collective labour opening of our casino in Amsterdam West has encountered delays and agreement. We also successfully concluded the subsequent negotiations this is now provisionally scheduled for the second quarter of 2018. Our in 2017 and the new collective labour agreement is now formally in effect. MESSAGE FROM THE CHAIRMAN OF THE BOARD THE CHAIRMAN OF FROM MESSAGE
3 This collective labour agreement provides our employees with modern guests. What this means is that we will gear our range of gaming employment terms that take into account external developments and options, the design and lay-out of our casinos, our communications a healthy perspective for the future that does justice to their efforts and services entirely to the needs of our guests. and professionalism. We are pleased that we were able to achieve this result together. With a view to the future, we want to arrive at more integrated ways of working and improved cooperation between the various casinos and Looking ahead the head office. This is why we have made culture and leadership the Last year, we put a lot of work into our long-term strategic plan ‘Together spearheads in our strategic long-term plan. We will also be looking to on the road to 2020’. We want to use this new strategy to realise a raise awareness of the need for personal growth among our employees, sustainably successful future for Holland Casino, a future in which we and we want to attract new top talents. To that end, our head office has are in a position to respond flexibly, energetically and with agility to all moved to a modern location in Hoofddorp with open-plan workspaces to potential scenarios. encourage and accelerate more cooperation and in a modern fashion. We will also introduce this concept behind the scenes at our casinos in We will continue to invest in the land-based casinos, while also working the coming years. on an omni-channel strategy. The continued development of the online casino is an important part of this omni-channel strategy. While Our committed and professional employees are crucial to our success. focusing on innovation, quality improvement and safe and responsible They work hard every single day to exceed our guests’ expectations and gaming, we are also aiming to attract new target audiences to our make Holland Casino a truly outstanding company. I particularly want casinos. In the coming years, we will actively try out innovative concepts to thank the employees at our casinos in Groningen, Leeuwarden and that we believe will help us bind new target groups to our casinos. Amsterdam West for their flexibility over the past year. I truly admire the We will also enter into strategic partnerships if we feel this is necessary resilience and dedication they have shown in extraordinary circumstances. or an attractive option. In 2017, the Executive Board and Supervisory Board returned to full Making guests our top priority is one of the foundations of our strategy. strength. I look forward to working with them and all my other colleagues To realise this objective, we aim to create a 9+ guest experience for our as we continue to build a successful future for Holland Casino.
Erwin van Lambaart Chairman of the Executive Board Holland Casino MESSAGE FROM THE CHAIRMAN OF THE BOARD THE CHAIRMAN OF FROM MESSAGE
4 Contents
Annual report 2017 Governance 02 Message from the Chairman of the Board 74 Composition Supervisory Board 06 The year 2017 76 Message from the Chairman 07 Key figures 77 Report of the Supervisory Board 79 Corporate governance About Holland Casino 83 Risk management 10 Company profile 12 Mission & Strategy Financial statements 13 Strategic pillars 96 Financial statements 2017 14 Our business model 141 Other information 16 SWOT analysis 17 Our environment Other information 23 Value creation at Holland Casino 151 Locations 25 Stakeholder overview 152 Five-year summary 35 Material aspects 2017 154 About this report 155 List of abbreviations Report of the Executive Board 156 Colophon 38 Report of the Executive Board 44 Operational developments 51 Developments casinos 53 Our guests 60 Our people 69 Our society 72 In control statement 5 6
MLN * see notes on page 53 through 56 (+ 8.7%) 5.2 Visit frequency (2016: 5.2) 21,324* Monitoring (PBK) interviews (2016: 20,638) € 109 visit Spending per (+ 6.9%) € 332.2 Income Slot Machines MLN MLN 3.7% Absenteeism (2016: 3.5%) 30 Score Net Promoter (2016: 28) € 255.9 Income Table Games (+ 1.1%) 5.8 Visits (- 1.5%) The year 2017 2017 year The
MLN
MLN FTEs
MLN
Number of employees Number of employees (+ 7.5%) 2,708
Guests (- 1.2%) 1.1 Total revenue Total revenue (+ 5.2%) € 639.2 € 98.0 corporate income tax Result before (+ 20.0%)
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS KEY FIGURES KEY 7 - - 0.3 -0.2 -7.6 102 184 57.0 81.6 81.7 74.1 74.1 2016 101.2 5,931 3,441 2,519 445.5 445.5 -363.9
607.4 -161.9
- - 0.5 109 179 83.5 56.4 29.0 15.7 16.6 97.5 98.0 73.5 73.5 -24.5 2017 5,840 3,699 2,708 468.7 497.7 -400.2
639.2 -170.5
(in %)
ted under financing income. exchange rate results are now presented under financing income. * The revenue before gaming tax for 2016 has been adjusted for purposes of comparison. The The key figures are not part of Holland Casino’s financial statements. KEY FIGURES (in thousands of euro) fte per average Net revenue Profitmargin x 100 / net revenue) tax (Result after Visits Number of visits (in thousands) Spending per visit (in euro) at year-end Employees and trainees) employees stand-by (excluding Number of employees (fte) Full-time equivalents expenses) of operating benefits (as a percentage Employee expenses Operating result Operating Financial income and expenses tax net of investees. equity-accounted of profit of Share income tax corporate Result before income tax Corporate income tax corporate Result after income net of tax Other comprehensive income comprehensive Total activities operating from Cash flow Income statement gaming tax* before Revenue Gaming tax Net revenue claim Insurance revenue Total Amounts in millions of euro, unless stated otherwise stated unless of euro, in millions Amounts Key figures Key
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS KEY FIGURES KEY 8 420 12.6 2016 6,185 108.6
184.3 417 17.3 2017 5,701 211.3 102.3
KEY FIGURES Number of slot machines (in casinos) Number of slot machines Balance sheet Equity liabilities Non-current liabilities Current figures Other key Number of gaming tables Amounts in millions of euro, unless stated otherwise unless stated euro, millions of in Amounts
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS ABOUT HOLLAND CASINO PROFILE OF THE COMPANY THE OF PROFILE 10 Valkenburg Venlo ◊ ◊ WORKS COUNCIL WORKS Nijmegen Rotterdam ◊ ◊ SOUTH NETHERLANDS SECRETARY OF THE BOARD OF SECRETARY Breda Eindhoven FINANCE & CONTROL LEGAL & COMPLIANCE LEGAL INFORMATION SERVICES INFORMATION ◊ ◊ SECURITY & RESPONSIBLE GAMING EXECUTIVE BOARD EXECUTIVE BOARD SUPERVISORY BOARD SUPERVISORY Utrecht Zandvoort ◊ ◊ Leeuwarden Scheveningen Schiphol** HUMAN RESOURCES ◊ ◊ ◊ GAMING & SERVICES GAMING MARKETING & E-COMMERCE CORPORATE COMMUNICATIONS CORPORATE AUDIT NORTH NETHERLANDS temporarily closed closed temporarily (2018) West Amsterdam to moving licence 2017, as of March closed Enschede Groningen* Amsterdam Centre Amsterdam
◊ ◊ ◊ * **
employees. of In 2017, Holland Casino recorded total revenue EUR 639.2 million. The company aims to achieve a strong position in the online gaming market, once future legislation makes that possible. hospitality and extensive care for all its guests. Our 14 casinos are spread across the Netherlands. 2017 is in The new head office we took into use in 3,700 Hoofddorp. Holland Casino has a total of award-winning Responsible Gaming Policy. award-winning Responsible Gaming Policy. rangeHolland Casino offers its guests an attractive of games of chance: a varied and innovative selection of table games and slot machines, together with personal attention, top quality environment. environment. in the Holland Casino occupies a unique position Dutch gaming market, with 40 years of experience and and a trendsetting internationally recognised 1975. The government extended the licence to extended the licence to 1975. The government in 1986, making Holland include slot machines casino in the Netherlands. Casino the only real its guests exciting, Holland Casino offers gaming in a safe surprising and reliable Holland Casino opened its doors in 1976 after its doors in 1976 after Holland Casino opened awarded the company the Dutch government to offer table games in an exclusive licence Profile of the company of the Profile
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS MANAGEMENT TEAM TEAM MANAGEMENT 11
, Karin den Dunnen, Anneke Westbroek, Pieter Boers, Jeroen Hellenberg, Karin den Dunnen, Jan Philippen, Ruud Bergervoet, Janny Wierda, Erwin van Lambaart, Ed Roijers, Daniel van Dijkman, Mario der Weduwen and Noël Leise.
From left to right:
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS MISSION & STRATEGY & MISSION 12 five principles: employee, society, guest, innovation and partnerships. five principles: employee, society, guest, innovation and Ambition our guests like no other and exceed expectations. We understand the needs of Strategy based on relationships with our valued guests. Our strategy is We develop long-term, personal Gaming is a part of life. Gaming is a part Mission gaming experience, always welcoming and engaged. We provide the most exciting Vision Mission & Strategy Mission
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS STRATEGIC PRINCIPLES PRINCIPLES STRATEGIC 13 Partnerships Strategic partnerships strengthen Holland Casino in a dynamic market
proposition proposition Choice for omni- channel approach Innovation Innovating and improving concepts and products Realisation online
use of data use of data Respond to the wishes of new generations Guest Investing in guest experience Optimum and responsible
sustainability sustainability Responsible Responsible Gaming Policy Social engagement, through hospitality, social connection and local relevance Attention for Society Society High-quality
Strategic principles principles Strategic Leadership and talent Leadership and talent development Sustainable and Sustainable and up-to-date employment terms Employee Clear division of tasks between head office and casinos
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS OUR BUSINESS MODEL BUSINESS OUR 14
. Guests play on our slot machines using credits. How much they can bet varies machines using credits. How much they Guests play on our slot machines starts with one eurocent. Many of our slot per slot machine and that give games, including free games and games include special bonus win extra credits.players the chance to win small or and type of slot machine, players can Depending on the game the Mega Millions can rise to more than one million euro in large jackpots, which Jackpot. differ in a number of essentialThe slot machines that Holland Casino provides providers (arcades and theways from those offered by other slot machine bet and the pay-out percentagehotel and catering sector). The maximum subject to any restrictions in terms ofare both higher and Holland Casino is not or additional progressive prizes.maximum prizes from individual slot machines on the following link: For a full list of slot machines, please click www.hollandcasino.nl/spelen/speelautomaten/speluitleg .
www.hollandcasino.nl/spelen/overzicht
Slot machines slot machines. The best knownAll our casinos offer a broad range of casino of variations, but Holland Casino alsoare the ‘classic’ fruit machines in all kinds machines. offers video, roulette, bingo and poker slot by specially-trained and certified croupiers (dealers). by specially-trained and certified croupiers the most popular of which areHolland Casino offers a range of table games, Punto Banco. For a full list of tableAmerican Roulette, Poker, Black Jack and games, click on the following link: complementary to these core activities. these core activities. complementary to Table games games in the has the exclusive right to provide table Holland Casino currently supervised are non-automated games of chance Netherlands. Table games Holland Casino provides three product groups: Table games, Slot machines three product groups: Table games, Holland Casino provides and Slot Our core activities of Table games and Food & Beverage. is most of our revenues. Food & Beverage machines generate Our business model business Our
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS OUR BUSINESS MODEL BUSINESS OUR 15 to online gaming providers. The Upper House still still to online gaming providers. The Upper House has to discuss and approve the draft legislation before online gaming can actually be legalised and regulated. will add another product group to its physical will add another product group to its physical the Dutch casinos: an online casino. In early 2017, draft House of Representatives approved the op legislation on remote gaming (Kansspelen market afstand - Koa), the law that will open the sure we adapt our product range to the wishes sure we adapt our product as the latest gastronomic of our guests, as well trends. Online casino allows, Holland CasinoAs soon as Dutch legislation to enjoy a bite or a drink from our excellent Food bite or a drink from to enjoy a of the day. The range, at any hour & Beverage is important to experience perfect gastronomic gives us a chance to provide Holland Casino, as it more added value. We make our guests with even Food & Beverage the opportunity offer our guests All our casinos
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS SWOT-ANALYSIS 16 Accessing online gaming market; Accessing online gaming innovation; Expanding product and services portfolio through Attracting new target groups; Liberalisation of the market. Sensitive to economic developments; market; Complex organisation in a constantly changing Liberalisation of the market. Partnerships; OPPORTUNITIES ◊ ◊ ◊ ◊ ◊ THREATS ◊ ◊ ◊
Relatively high level of fixed overhead; Monopolist; Dependent on political decisions. Strong brand with very high brand familiarity; InternationallyStrong brand with very leading Responsible Gaming Policy Expertise in the field of hospitality; Market leader; Excellent know-how of the industry; Stable financial results. ◊ ◊ ◊ STRENGTHS ◊ ◊ ◊ ◊ ◊ WEAKNESSES and weaknesses and opportunities and threats as at the end of 2017. opportunities and threats as at the and weaknesses and Holland Casino conducts annual assessments of its position with respect with respect annual assessments of its position Holland Casino conducts it operates. and challenges in the market in which to the opportunities key strengths a summary of our assessment of our Below, you will find SWOT-analysis
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS OUR ENVIRONMENT OUR 17
strength to survive in this new environment. Thesestrength to survive in this new environment. in ourchanges and uncertainties are reflected strategic choices and approach to risk. with allThe Executive Board is in regular contact the relevant stakeholders to discuss the progress and isof the proposed liberalisation of the market preparing for a range of potential scenarios. Challenge Holland Casino Challenge Holland policy of the JusticeThe geographical distribution which is responsible for theand Security Ministry, is supposed to ensure thatDutch gaming policy, right across the Netherlands.there is competition whether the draftHowever, it is still unclear in its current form.legislation will be adopted casinos we will have to sellNor is it clear which four importantor how quickly we will have to do so. It is competitivethat Holland Casino develops sufficient
limited number of new licences. To make sure sure limited number of new licences. To make dominant Holland Casino does not gain an overly position in this market, we will have to relinquish The four of our 14 licences and retain 10 casinos. licences. government will issue an additional two This is referred to as the 10/4/2 construction. Modernisation casino regime regime Modernisation casino regulations will have a Changes to laws and Casino. The current major impact on Holland de kansspelen - Wok) is Gaming Act (Wet op years old. The Dutch already more than 50 plans to modernise government announced agreement back in 2012 this law in its coalition have now been taken. On 31 and the first steps January 2017, the Dutch House of Representatives casino agreed to adopt an amendment to the to the regime and this has now been passed in the Dutch Upper House, where it is currently see more plenary discussion phase. We expect to in clarity on the progress of the draft legislation the course of 2018. would The current draft legislation, if adopted, public effectively end Holland Casino’s 40-year be sector monopoly. The gaming market will to other liberalised and the market will be open a parties. The current draft law provides for
Modernisation casino regime Introduction remote gaming legislation Data technology and privacy legislation Ageing of the population
◊ ◊ ◊ to anticipate and respond to key trends and and to anticipate and respond to key trends identified changing market conditions. In 2017, we related the following relevant developments and challenges: ◊ and respond to the impact of those developments. Over the past few years, we have been working plan on developing our strategic long-term ‘Together on the road to 2020’. Continuously position monitoring our environment puts us in a have a major impact on Holland Casino. Our Our have a major impact on Holland Casino. are environment and the needs of our guests constantly changing. To retain and strengthen market, our leading position in the Dutch casino it is vital that we are able to quickly anticipate gambling. A lot has changed since the opening changed since the opening gambling. A lot has and Holland Casino is still of that first casino, changing market. operating in a constantly technological developmentsPolitical, economic and Holland Casino opened its first casino in 1976 its first casino in 1976 Holland Casino opened government wanted to in Zandvoort. The Dutch alternative to illegal offer a legal and regulated Our environment environment Our
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS OUR ENVIRONMENT OUR 18 -
sion-making. We are seeing a rapid succession sion-making. We are seeing a rapid succession data of new developments in the fields of IT, technology and gamification. to People are getting more and more used having endless options available, and an increasingly personal, individual-targeted approach, as well as an optimum guest or service experience. Simply providing a product that is no longer enough. Digitalisation means be people expect products and services to expect available anytime and anywhere and they to have access to the fastest and most innovative systems and programmes. where actions needed to be taken to comply with to comply with needed to be taken where actions we then drew up of the GDPR and the provisions a plan of action. a multi-disciplinary has assigned Holland Casino task of executing this plan project team with the to make Holland Casino’s of action. The aim is fit for purpose in the future privacy organisation Holland Casino expects to privacy environment. at 25 May 2018. be GDPR compliant and digitalisation play Technological advances role in the business an increasingly prominent in world. We can see the digitalisation of society deci every layer of business operations and -
Holland Casino. We used interviews and evalua Holland Casino. We used interviews and the kinds tions of documentation to take stock of Holland of personal data various departments at used for Casino process and which systems are same. Based on this information, we determined Data technology and privacy law privacy law Data technology and right to privacy and Our guests’ and employees’ personal data is currently to the protection of their Data Protection Act (Wet laid down in the Dutch - Wbp). On 25 bescherming persoonsgegevens Commission adopted May 2016, the European Regulation (GDPR). the General Data Protection been given until 25 May 2018 Organisations have GDPR. to bring their operations into line with the Holland In the course of its ordinary operations, its Casino processes the personal data of its employees, casino guests and visitors to subject website. The processing of such data is to privacy and data protection legislation. - with In anticipation of the GDPR, Holland Casino a GDPR the aid of an external party - conducted current Gap Assessment in 2017, to assess the at status of the privacy protection organisation PBK). If Holland Casino does obtain a licence, this a licence, this Casino does obtain PBK). If Holland a number of large competition with will result in been active in all of whom have foreign parties, some time. gaming market for the online - -
product range, a clear focus on our Responsible product range, a clear focus on our Responsible - Gaming Policy (Preventiebeleid Kansspelen Challenge Holland Casino We see opportunities in the unique combination This of land-based casinos and an online casino. is why have chosen to adopt an omni-channel innovativestrategy with, in addition to a unique and to apply for a licence from the Dutch Gaming to apply for a licence from the Dutch Gaming Commission. Providers that meet the conditions will be set out by the Dutch Gaming Commission eligible for these licences. current coalition government - ‘Rutte III’ - an current coalition government - ‘Rutte III’ licence nounced additional measures regarding of gam terms and conditions and the reduction bling addiction. As soon as the draft legislation be able has been passed into law, providers will voted in 2016 to adopt the draft legislation for the the draft legislation for the voted in 2016 to adopt gaming. The Dutch Upper introduction of remote and vote on this draft House still has to discuss next steps can be taken legislation before the regulating the online towards legalising and coalition agreement of the gaming market. The Remote Gaming Act (Koa) will effectively effectively Act (Koa) will Remote Gaming gaming services, provision of online legalise the have obtained a mean that once we and would allowed to enter the online licence we would be House of Representativescasino market. The Dutch Introduction Remote Gaming Act Remote Gaming Introduction of the Casino, the introduction For Holland
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS OUR ENVIRONMENT OUR 19
In 2017, Holland Casino reached agreement on a reached agreement on a In 2017, Holland Casino agreement, which includes new collective labour on the sustainable important agreements employees and on continuity employability of our front. This sustainable, on the employment is essential to the future future-proof agreement of Holland Casino. remain Our current gaming guests are and will will our top priority. But in addition to this, we can develop and test innovative concepts we target use to attract and gain the loyalty of new groups. to deal We indicate in our strategy how we plan market conditions. changing these trends and with how In the Risk Management chapter, we explain and we mitigate the risks inherent in these trends developments. Challenge Holland Casino Challenge employees and our age of both our The average ahead. This trend increase in the years guests will choices. will have to make strategic means we - -
The proportion of older people in the overall The proportion of older people in the overall population is increasing (ageing of the population). society.This has a range of consequences for our responsible gaming experience every single time. time. responsible gaming experience every single Obviously while operating within the parameters of privacy laws and regulations. Ageing of the population make sure our range of products and services is is make sure our range of products and services our guests an even better fit with the experience us to are looking for. This knowledge also allows more make our Responsible Gaming Policy even safe and effective and provide our guests with a the renewal of existing concepts and the testing concepts and the testing the renewal of existing update or completely of new concepts. We and programmes. We renew outdated systems and optimum use of the also focus on the safe and personal attention, so available information our guests even better and we can get to know guests are becoming ever more demanding. As demanding. As becoming ever more guests are casino market, provider on the Dutch the leading in terms of per is the frontrunner Holland Casino approach and innova sonal attention, individual and systems. We invest in tive gaming concepts Challenge Holland Casino Challenge is that our of these developments One result
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS
20
JAN BARTELS AND WILLEM NEDERLOF WILLEM AND BARTELS JAN
A GREAT CASINO EXPERIENCE EXPERIENCE CASINO GREAT A
INNOVATION IS CRUCIAL TO TO CRUCIAL IS INNOVATION
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS INNOVATION IS CRUCIAL TO A GREAT CASINO EXPERIENCE EXPERIENCE CASINO GREAT A TO CRUCIAL IS INNOVATION 21
“ My dream is that My dream is that restaurant. guests also come to guests also come to “ Chef Holland Casino Rotterdam Willem Nederlof the casino to eat in the the casino to eat in the “One fun aspect of the new restaurant is new restaurant is “One fun aspect of the “The experience and the feeling of a ‘real’ the feeling of a ‘real’ “The experience and “In terms of innovation in gaming, we are innovative concepts geared to new target au innovative concepts geared to new target diences. Initially, we expected younger audiences but it to be more interested in slot machines, our table turns out they feel a great affinity with games. Willem: This means we have far its semi-open kitchen. guests. All our dishes are more contact with our the menu changes frequently.freshly prepared and the beef shoulder and piri Current favourites are piri chicken.” Jan: also casino are extremely important and that requires excellent Food & Beverage facilities. and feel We also put a lot of thought into the look of The Global Kitchen. The imposing semi-circular a globe. wooden frame is a nod to the shape of In our restaurants, we like to create an open rooms, atmosphere on the edge of the gaming gaming so you still get the exciting vibe from the you eat.” and the atmosphere of the casino while Tomorrow’s guest Jan: working on things like developing and testing
“The Global Kitchen is a new concept. “The Global Kitchen is a new concept. “We welcome a wide variety of guests “We welcome a wide variety of guests international cuisine. And players don’t always always international cuisine. And players don’t to that want a four-course meal. Our response is the so-called ‘Fast Casual’ concept, with classic dishes from Mediterranean, Asian and Latin- American cuisines.” Jan: in our from a wide range of ethnic backgrounds survey Rotterdam casino. The outcome of the Casino’s among guests confirmed what Holland for culinary specialists suspected: a clear need our concept so special is that it is the direct result result our concept so special is that it is the direct simply of what our guests said they wanted. We in a new asked them what they would like to see restaurant.” Fast Casual concept Willem: We have been up and running in the renovated makes Rotterdam casino for almost a year. What Manager Gaming, and Willem Nederlof, Chef at Willem Nederlof, Chef at Manager Gaming, and talk about innovation Holland Casino Rotterdam, Every day, they think about at Holland Casino. our guests happy and how they can make their high expectations. continue to exceed Holland Casino surprises its guests every single its guests every single Holland Casino surprises in an ever more day with constant innovations Jan Bartels, Product rapidly changing world. Innovation is crucial to a great casino experience experience casino great a to crucial is Innovation
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS INNOVATION IS CRUCIAL TO A GREAT CASINO EXPERIENCE EXPERIENCE CASINO GREAT A TO CRUCIAL IS INNOVATION 22
“
Jan Bartels Product Manager Gaming Product Manager In slot machines, everything isIn slot machines, experience even better. experience even “In slot machines everything is which is making the gamingwhich is making
in terms of visuals and sound,in terms of visuals getting bigger and brighter, bothgetting bigger “ visuals and sound, which is making the gaming visuals and sound, which is making the gaming to the experience even better. This is in response wishes of our guests: size really does matter. We are also using more and more branded with a themes, which could mean slot machines But we James Bond or Game of Thrones theme. are also looking to connect with Dutch themes that we want to develop exclusively for Holland can see Casino. Our guests recognise that and we that those kinds of slot machines are extremely popular at the moment. like We have also noted that our regular guests more complex games with numerous betting The days options, bonus games and animations. of the classic slot machines with mechanical rolls and a single win line seem to be well and truly over.” Jan: of getting bigger and brighter – both in terms
“In terms of Food & Beverage, we are seeing more and more hotels promoting theirseeing more and more hotels promoting restaurants as a separate concept. At Holland Casino in Amsterdam city centre, we recently opened the successful Sushi Samba concept. such aMy dream is to make The Global Kitchen successful concept that people also come to the casino to eat in the restaurant.” We are calling this our omni-channel approach. We are calling this our omni-channel approach. in our This could, for instance, include taking part but live table games at the casino from home, games. also playing online versions of our casino make For our guests, in the future it will no longer or at any difference whether they check in online loyalty a casino. Our visitor registration systems, programmes and of course our Responsible Gaming Policy will all be linked in one seamless system Willem:
“Obviously, this zone will also have “Obviously, this zone will also have “Behind the scenes, we are working hard on on “Behind the scenes, we are working hard and responsible gaming. Our goal is to provide provide and responsible gaming. Our goal is to and an experience that combines online gaming gaming in casinos as much as possible. Trends & Future Trends & Future Jan: we the preparations for an online casino. And as are focusing on making this as user-friendly safe possible for our guests and on providing Willem: we will excellent Food & Beverage facilities and wishes be more than happy to meet the specific of our guests.” games with lower minimum bets, such as the dicegames with lower minimum offer game Diceball. And finally, the zone will a range of slot machines with skill-based elements. againstOur guests will be able to play together or each other in this zone.” We are planning to launch a pilot zone in UtrechtWe are planning to launch this new target group. Thisthis year to appeal to remote access to various livezone will give guests Roulette, in a so-calledtable games, such as area has several table‘arena setting’. And the and strategy in the game, that they can play in the game, that and strategy games to be too they don’t want the together and the minimum betcomplicated. Plus keeping the games more accessible. relatively low makes They find it important that they can develop skills important that they They find it
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS VALUE CREATION AT HOLLAND CASINO HOLLAND AT CREATION VALUE 23
intellectual capital. intellectual capital. trendsetting Responsible Gaming Policy, we Gaming Policy, we trendsetting Responsible with a safe and reliable can provide our guests We set the standard on gaming environment. level. Social skills that front at an international a major priority at Holland and engagement are is firmly embedded in Casino and hospitality top of this, we focus on the organisation. On we develop in-house to innovative concepts anticipate and respond to the rapidly changing world around us. This is how we create -
and pay taxes and profits to the state. Intellectual capital Thanks to our more than 40 years of experience and our internationally recognised and considerable attention to targeted staff recruit considerable attention ment and talent development. much a part of society, Holland Casino is very regionally. We are engaged both nationally and aware of the impact in our environment and and the environment. We we have on society very seriously and take our guests’ well-being build support local initiatives and charities. We and maintain a network of relevant stakeholders, serve and engage in a dialogue with them. We terms of as an example in the gaming industry in valuable safe and reliable gaming and share our we know-how of the casino market. In addition, the actively seek out opportunities to increase commitment to sustainability in our organisation. Financial capital company Holland Casino is a financially healthy to with a solid capital base. We contribute economic growth and sustainable employment -
beleid Kansspelen - PBK), combined beleid Kansspelen - PBK), combined courses and development initiatives. That is how is how courses and development initiatives. That we ensure that our employees remain motivated and engaged in the long-term. We also devote key role in making sure that we offer our guests guests key role in making sure that we offer our We want the highest possible level of hospitality. to be a good employer, and we focus strongly of our on the vitality and personal development employees, for instance in the form of training and fun evening out. Human and social capital Our employees are crucial to our operations. play a Committed and professional employees games in a safe and responsible manner. responsible manner. games in a safe and Our trendsetting Responsible Gaming Policy (Preventie of with our reliable, surprising and varied choice can games ensures that Holland Casino’s guests exciting play without any concerns and enjoy an visualised in the value creation model. creation model. visualised in the value delivering products and We create value by our guests to enjoy casinoservices that enable This annual report describes how Holland Casi This annual report its 1.1 million guests, 3,700 no creates value for as a whole. This is also employees and society Value creation at Holland Casino at Holland creation Value
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS How we create value
Financial capital
t profi g ove y rn lth me ea n H t
Offer R 14 e s l p o I a n n t 4 5 s i 17 ,7 i 0 b t 1 e p le l a l e c c l l Saf F t a a no e a c si nd u i ca r o l A es a c L a p I R re R o B n n l o y S n l s n i o c s b o S G l v e a e a d h 4 T t 0 p E i n n o M y
o n i i a l e t l H s a i E a m n B r l m E p s l a S G o 1 . nnovatio y t I n e 1 s T m e e ip S u h o s u s c r a i g e e C n t t H t y r e t e a h s h P e t e i S r u l n b o E n e a m 0 o v s s i p 0 t t u s s l e 7 o s e , r c y i u o e 3 o e M F G N H O C s
24 STAKEHOLDER OVERVIEW OVERVIEW STAKEHOLDER 25 - these contacts. management on a regular basis. groups of The overview below describes our main we had with stakeholders. It also outlines the contacts a result of them in 2017 and the actions we took as with our stakeholders and conduct formal and informalwith our stakeholders stakeholders, both in person anddiscussions with these is how we learn what our stake via social media. This us and how we can meet thoseholders expect from and evaluate our stakeholderexpectations. We monitor Holland Casino attaches a great deal of importanceHolland Casino attaches and requirements of all of ourto the values, interests to maintain an open dialoguestakeholders. We strive Stakeholder overview overview Stakeholder
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS STAKEHOLDER OVERVIEW OVERVIEW STAKEHOLDER 26
and desires of our guests. As part of our Responsible Gaming Policy, we guide guests to specialist care providers where necessary. Holland Casino aims for the highest possible aims for the highest Holland Casino by means of regularlevel of hospitality innovation of itstraining for its employees, and transparencyFood & Beverage concepts, Holland Casino. on all developments at of its loyaltyContinued professionalisation launch of theprogramme and nationwide guests with exclusiveWelcome Card for new benefits for cardholders. have been replacedOutdated slot machines have been addedand new game variations to existing ones. Making the best possible use of the information we have available, we can create an even better picture of the needs ◊ Response ◊ ◊ ◊ ◊ Future guests; concepts; New Food & Beverage Safe and responsible gaming; Future online gaming options; Brand and campaigns; Atmosphere in the casinos; Work stoppages. Hospitality and service; Hospitality and games; machines and table Range of slot ◊ ◊ ◊ ◊ ◊ ◊ ◊ Topics of conversation in 2017 Topics of conversation ◊ ◊ media. This gives us a chance to enter into an media. This gives us a guest satisfaction online dialogue. We measure including the Net Promoter various ways in Score (NPS). Type of contact Type of contact our guests an open dialogue with We strive for insight setting. To gain greater in an informal of our guests, we into the wishes and needs who talk to our have Guest Relations Managers, our casinos. Hospitality guests at virtually all of us with additional interviews also provide our guests. Guests insight into the needs of on social regularly share their experiences
options in a pleasant and stylish environment stylish environment options in a pleasant and with excellent facilities. Expectations Expectations guests expect personal Holland Casino’s and privileges, hospitality attention, extra In addition, it is optimum levels of service. them a reliable, obviously vital to offer range of gaming surprising and attractive GUESTS
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS STAKEHOLDER OVERVIEW OVERVIEW STAKEHOLDER 27
including the donation of cash found at its casinos. Holland Casino works with local senior secondary vocational (MBO) schools and other educational institutions and provides students’ work experience internships. Holland Casino has a seat on the board of the European Casino Association. Holland Casino representatives regularly speak at national and international conferences in the field of gaming. In consultation with the Dutch addiction with the Dutch addiction In consultation organisation care and prevention Casino Nederland), Holland (Verslavingszorg Responsible has further tightened its includes earlier Gaming Policy, which now of young adults. interventions in the case and addiction care Together with scientific Casino is developing organisations, Holland Policy. an online Responsible Gaming international Holland Casino was awarded Gaming certification for its Responsible Policy in 2017. sustainability Targeted investments in plans for measures in the development Venlo and Amsterdam West. In 2017, Holland Casino made contributions to various national and local causes, ◊ ◊ Response ◊ ◊ Response ◊ ◊ ◊ ◊
Trends and developments in the range of gaming options; Draft legislation remote gaming; Gaming Tax; Responsible Gaming Policy. Pilot with extended opening hours; Pilot with extended opening and CSR; Attention for sustainability programmes and Development teaching guidance for students. The Responsible Gaming Policy; The Responsible care; know-how on addiction Exchange of market of the online gaming The opening Policy; and the Responsible Gaming ◊ ◊ ◊ ◊ ◊ ◊ ◊ Topics of conversation in 2017 Topics of conversation in 2017 Topics of conversation ◊ ◊ ◊
Type of contact Type of contact Holland Casino consults regularly with all national and international organisations, primarily to exchange know-how and experience, trends and developments. institutions. institutions. Type of contact Type of contact expertise regularly exchanges Holland Casino and experts, scientists with care providers, about its Responsible relevant organisations Casino also initiated Gaming Policy. Holland group, in which we a Holland Casino advisory Radboud cooperate with the AMC-UvA, Trimbos Institute, University Nijmegen, the and the AGOG ASSISSA, Jellinek, HANDS also actively foundation. Holland Casino and other educational engages with schools
(Nederlands Kansspelplatform) and foreign casinos, expect Holland Casino to comply with gaming legislation and regulations, just like other players in the sector. Other parties expect Holland Casino to serve as an example through its Responsible Gaming Policy and to share its knowledge of same with the sector. GAMING SECTOR GAMING Expectations Major players in the gaming sector, including organisations such as the European Casino Association, the Dutch Gaming Platform Society expects us to accept our social us to accept our social Society expects balance by safeguarding a good responsibility and results. the environment between people, duty to care for our This means we have a of the impact Holland guests and are aware Casino has on its environment. SOCIETY Expectations
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS STAKEHOLDER OVERVIEW OVERVIEW STAKEHOLDER 28
of integrity and reliability of employees in of integrity and reliability of employees in the organisation. Holland Casino submitted consultation responses and thus contributed to projects such as the ‘Market scan land-based gaming 2017’, the Supervision Agenda 2018-2019 and to the implementation of the Gaming Commission’s coordinating role in the field of addiction prevention. Holland Casino provides the Dutch Gaming Gaming provides the Dutch Holland Casino reports (Ksa) with quarterly Commission of income and including an overview in the field of expenses, developments machines and Table games and Slot campaigns and information on themed incidents. various audit Holland Casino submitted of same. reports and an oral explanation Gaming Holland Casino and the working on a Commission are together Gaming Policy format for Responsible reporting. Holland Casino reports annually to the Gaming Commission on the embedding ◊ Response ◊ ◊ ◊ ◊
legislation (Wft, Wwft and Sanctions Act);legislation (Wft, Wwft and gaming; Draft legislation on remote and skill-basedGame development (pilots gaming); Fire at Holland Casino Groningen; complaints; Reports on incidents and GamingSupervision agenda 2018-2019 Commission; reports on the 2016Outcome relevant audit licence year; Advertising and recruitment activities; Conversion from foundation to N.V.; Protests and work stoppages; Changes to the Casino Games Decree 1996 (Beschikking Casinospelen 1996). Compliance with Dutch gaming laws and with Dutch gaming laws Compliance and financial supervisionregulations ◊ ◊ ◊ ◊ ◊ ◊ ◊ ◊ ◊ ◊ Topics of conversation in 2017 Topics of conversation ◊ - (Wwft). Holland Casino has semi-annual has semi-annual (Wwft). Holland Casino Central Bank (DNB) meetings with the Dutch a European and every six months delivers 2010/14 report. We Central Bank (ECB) Decree in also have ad-hoc consultations with the DNB response to any situations that may arise and upon the introduction of new ES2 banknotes. Contacts with the Data Protection Agency are on an ad hoc basis. Type of contact Type of contact with has quarterly meetings Holland Casino scheduled Commission and the Dutch Gaming level, as well as meetings at administrative In addition to the regular ad hoc meetings. Gaming Policy, execution of the Responsible also supervises com the Gaming Commission Prevention of money- pliance with the Dutch of terrorism Act laundering and the financing
honest and reliable range of gaming optionshonest and reliable range gaming environmentand that we provide a safe The regulators alsofor guests and employees. abide by current lawsexpect Holland Casino to an adequateand regulations. This includes and anti-moneyResponsible Gaming Policy laundering policy. Expectations Expectations as the Dutch GamingRegulators such Bank (Ksa), the Dutch Central Commission Protection Agency(DNB) and the Dutch Data our guests playexpect us to make sure Casino provides anresponsibly, that Holland REGULATORS REGULATORS
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS STAKEHOLDER OVERVIEW OVERVIEW STAKEHOLDER 29
e Holland Casino continued to tighten and Holland Casino continued to tighten and intensify its internal communications policy, to improve communications with its employees on the above subjects. Following intensive negotiations, Holland negotiations, Holland Following intensive with reached an agreement Casino has long-term the trade unions on a new which has collective labour agreement, to the Social Affairs since been submitted (SZW). and Employment Ministry of the With respect to the execution Casino has pension scheme, Holland to the Stap transferred its scheme Algemeen Pensioenfonds. Works Council in the See the section on the the ‘Our People’ section for recommendations and approvals the Works Council has issued on the items submitted to it. ◊ Respons ◊ ◊ ◊
of the gaming market; to N.V. (publicConversion from foundation limited company); gaming andDraft legislation on remote on employees; potential impact of same such asDevelopments at the casinos, range of games onextended opening hours, projects; offer and building and renovation Council in theSee the section on the Works the subjects‘Our People’ section for discussed with the Works Council. Collective labour agreement negotiations; Collective labour of the proposed liberalisationConsequences ◊ ◊ ◊ ◊ Topics of conversation in 2017 in 2017 Topics of conversation ◊ ◊
consultations with the works council and trade consultations with the works council and trade unions. In addition to written communications, in early in early In addition to written communications, 2017 locations we organised meetings in various explain the plans for a around the country to new collective labour agreement. The arrival at a negotiating agreement in June 2017 was followed by extensive communications on the subject. At the end of 2017, we organised management days to inform the entire management and engage them in drawing up the strategic long- term plan. We hold regular formal and informal Type of contact Type of contact with its maintains contacts Holland Casino by entering into a dialogue employees use of modern proactively and by making We communicated communication methods. to arrive at) the intensively about the (process and the new collective labour agreement liberalisation of the process related to the gaming market.
pleasant working atmosphere in a safe working in a safe working pleasant working atmosphere for personal growth environment with room and development. Expectations Expectations Board to expect the Executive Our employees strategic transparent about our be open and remunerationdirection. They expect appropriate terms and and secondary employment expect us to provide a conditions. Our people EMPLOYEES
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS STAKEHOLDER OVERVIEW OVERVIEW STAKEHOLDER 30
The Justice and Security Ministry is part of a steering group with the Finance Ministry and Holland Casino, which regularly discusses the proposed liberalisation of the gaming market. Casinos and building and renovation projects are determined in close consultation with provincial and local authorities. In 2017, Holland Casino reached agreements on new locations with the local authorities for Venlo and Utrecht. Holland Casino has tightened its Responsible Gaming Policy to include more intensive supervision of young adults. In the context of the existing state of the existing state In the context policy, Holland Casino shareholding reached at executes agreements in line with the aforementioned meetings, governance company’s existing corporate structure. Response ◊ ◊ ◊ Response ◊
Fire and demolition Groningen casino and temporary and/or new location Groningen casino; Accessibility casinos; Building and operating permits. Dutch Gaming Act and lower level regulations to be developed; The Responsible Gaming Policy; Draft legislation remote gaming and the consequences for the Responsible Gaming Policy; Construction of casinos in Amsterdam West, Venlo, Utrecht and renovation Rotterdam; members of the Executive Board and Board and members of the Executive Supervisory Board; the gaming market; Proposed liberalisation of to N.V. (public Conversion from Foundation limited company); new Business cases (development projects); locations and renovation negotiations. Collective labour agreement Financial performance Holland Casino; Financial performance remuneration of the Evaluation and ◊ ◊ ◊ Topics of conversation in 2017 ◊ ◊ ◊ ◊ ◊ ◊ ◊ ◊ Topics of conversation in 2017 Topics of conversation ◊ ◊
and the various spokespersons in parliament. and the various spokespersons in parliament. The local casino managers and Head Office employees have regular contacts with local authorities at official and administrative levels. Type of contact Type of contact Holland Casino has regular, scheduled consul tations with the Justice and Security Ministry regularly to consult on the proposed the proposed regularly to consult on market. liberalisation of the gaming Type of contact Type of contact has of the Supervisory Board The Chairman Ministry. with the Finance regular contacts the Holland Casino The Finance Ministry and meetings Executive Board have scheduled these parties consult every quarter. In addition, specific subjects. on an ad hoc basis regarding representatives A steering group comprising the Justice and Security of the Finance Ministry, also meets Ministry and Holland Casino benefit policy-making processes. Provincial and local authorities expect Holland Casino to comply with relevant directives and permit requirements when opening or renovating local casinos. Provincial and local authorities expect Holland Casino to create employment for the region and that it strives to be a good employer. Expectations Expectations The Justice and Security Ministry expects Holland Casino to operate in line with the objectives of gaming policy guidelines. The ministry and parliament also expect Holland Casino to share its current knowledge of the gaming market to OTHER GOVERNMENT INSTITUTIONS GOVERNMENT OTHER Casino to take any steps necessary to enable necessary to enable Casino to take any steps gaming market in line the liberalisation of the on the modernisation with the draft legislation and with a view of the casino gaming regime company. to the continuity of the Expectations Expectations and is a State shareholding Holland Casino Ministry is the 100% shareholder. the Finance to comply with the The ministry expects us to State shareholdings requirements that apply also expects Holland and licence holders. It SHAREHOLDER / FINANCE MINISTRY SHAREHOLDER
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS STAKEHOLDER OVERVIEW OVERVIEW STAKEHOLDER 31
e Holland Casino shares its quarterly results results shares its quarterly Holland Casino with the banks. the banks on the Holland Casino informs covenants. realisation of the bank an enterprise risk In 2017, we implemented management framework. and individual suppliers assess whether and individual suppliers assess whether the relevant contractual terms and conditions need to be supplemented or amended. In addition, we assess what contribution suppliers can make to Holland Casino’s innovation and sustainability needs. Where possible, the process of ordering, delivery through invoicing is automated and structured as efficiently as possible. Depending on the outcome of the Depending on the outcome of the (semi-annual) evaluation, Holland Casino Response ◊ ◊ ◊
Respons ◊
Market developments; market. Liberalisation of the gaming Financing structure; Financing structure; Fire in Groningen; Deliveries and orders; Reliability of deliveries; Price developments; Quality experience; Sustainability; Innovation. opics of conversation in 2017 opics of conversation opics of conversation in 2017 ◊ ◊ T ◊ ◊ ◊ ◊ ◊ ◊ ◊ ◊ T
Type of contacts Type of contacts are in the finance director The CFO and banks. with the company’s regular contact Type of contacts Type of contacts At an operational level, Holland Casino maintains regular informal contacts with suppliers at the casinos. The relationship with suppliers in larger contracts is evaluated at least twice a year. Other central contracts are evaluated as and when either party deems this necessary.
legislation and regulations. Expectations Expectations as banks expect Holland Financiers such an adequate administrative Casino to have controls, to organisation and internal its financial be transparent regarding with covenants, performance and to comply FINANCIERS strategic supplier management, which means we focus more actively on the performance of and relationship with suppliers. Expectations Expectations Reasonable terms and conditions are important to our suppliers. In its terms and conditions, Holland Casino ensures that the rights and obligations of both the company and its suppliers are clear. In 2017, we introduced SUPPLIERS
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS THE STRENGTH OF GRONINGEN AAD STERK AND MARK VAN DEN ANKER THE STRENGTH OF GRONINGEN OF STRENGTH THE 33
“ Groningen Aad Sterk You can never dispel You can never dispel Casinomanager Holland Casino Casinomanager Holland Casino “ but we were right there. every concern and you can every concern and you can never answer every question, And we still do, because we are looking for a new for a new And we still do, because we are looking and location. The local authorities are helping the mayor and aldermen are very committed to helping us.”
ment. All those employees are now “We maintained frequent contacts with the “We maintained frequent contacts with the “When I drove into Groningen, I could smell “When I drove into Groningen, I could smell “The Security Manager also travelled straight also travelled straight “The Security Manager cooperation with the fire brigade and police was police was cooperation with the fire brigade and afterwards, excellent from the start of the fire. And there was too, we had very regular meetings and sides.” a lot of mutual understanding from both Aad: municipal authorities during and after the fire. Aad: Leeuwarden to coordinate to Holland Casino in from that casino. the internal communications we organised a general That same evening, Erwin van Lambaart put employee meeting where and told them we would everyone’s mind at ease for everyone. At that find a suitable solution of moment, 150 people had lost their place employ across working at other Holland Casino locations the country, from Leeuwarden to Valkenburg. lives of The fire has had a massive impact on the we our employees, but we are doing everything on the can to keep them constantly up-to-date situation.” Excellent cooperation Aad: eight, the ‘my’ casino and shortly before half past The casino had been given up as a total loss.
“I was at home and heard about the fire via via fire the about heard and home at was “I “On 27 August 2017, it all suddenly became “On 27 August 2017, it all suddenly became casino in Groningen. suddenly become very clear just how important suddenly become very Aad Sterk and Manager that is. Casino manager Mark van den Anker Public Affairs ad interim management worked explain how stakeholder after the fire at our in practice during and Holland Casino makes constant investments in constant investments in Holland Casino makes its stakeholders, in terms the relationship with attention. And it can of both time and in media and so did our CEO, Erwin van Lambaart. media and so did our CEO, Erwin van Lambaart. of social We also started centralised monitoring media right away.” was hurt.” Mark: the news and from colleagues. Our spokesperson to the immediately travelled to Groningen to talk Aad: casino in very real because there was a fire at the car and Groningen. I immediately jumped in my nobody drove to the casino. Thankfully there was nobody in the building at the time of the fire and This is real This is real to crisis Holland Casino devotes a lot of attention management and practical drills. The strength of Groningen Groningen of strength The
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS THE STRENGTH OF GRONINGEN OF STRENGTH THE 34
“
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“
The fire at Holland Casino Groningen on 27The fire at Holland Casino Groningen on Peter den Oudsten, Mayor of Groningen We maintained close close We maintained
possible effort to be a good neighbour. Interim Manager Public Affairs Public Affairs Interim Manager but praise for how Holland Casino made everybut praise for how Holland Casino made
August meant the end to a familiar sight at theAugust meant the end to a familiar sight Kattendiep. The impact on the city, the casino’sKattendiep. The impact on the city, the “ does not mean that Holland Casino will no longerdoes not mean that Holland Casino will employees was of course immense. Thankfully thisemployees was of course immense. Thankfully feature in the city. In fact, the municipal authoritiesfeature in the city. In fact, the municipal to deal with the aftermath of the fire. I have nothingto deal with the aftermath of the fire. I neighbours, businesses in the area and the casino’sneighbours, businesses in the area and and casino joined forces to provide information andand casino joined forces to provide information “ with nearby residents. cooperation with the local the local cooperation with Mark van den Anker van den Mark I call this a fantastic terrible experience. This kind This kind I call this a fantastic terrible experience. com of situation brings out the strength of our Casino, pany. I am proud of what we, as Holland space have been able to achieve in such a short of time.” cooperation, both internally and with all external and with all external cooperation, both internally stakeholders, has been excellent. authorities for communications authorities for
“The Board has obviously also been in “The Board has obviously also been in “Everyone did what they had to do. “Everyone did what they had to do. “The head office immediately contacted “The head office immediately contacted Groningen had a completely new set of uniforms uniforms Groningen had a completely new set of in a matter of days.” Fantastic terrible experience Aad: Obviously there are things we can improve, as there are always things to learn from. But the are aware that is not an ideal solution. It is still an an ideal solution. It is still an are aware that is not hour’s drive after all.” Mark: Ministry. contact with our shareholder, the Finance injuries, Since there were, thankfully, no personal we were able to focus on dealing as effectively and carefully as possible with the consequences of the fire and the realisation of a new (temporary) casino as quickly as possible.” Aad: to be suppliers, too, and thankfully they proved in very flexible. For instance, all our colleagues - -
“Holland Casino maintained close and very maintained close “Holland Casino “Once we had a demolition plan, we “Immediately after the fire, we sent an email email “Immediately after the fire, we sent an “We have been as open and transparent and transparent “We have been as open “We also had regular meetings with the busi “We also had regular meetings with the Aad: activelyto inform our regular guests and we are keeping them updated on the developments. We have been operating a shuttle bus service between Groningen and Leeuwarden since the fire, but we nesses around the Gedempte Kattendiep. We tried nesses around the Gedempte Kattendiep. the to help them as much as possible and make demolition process as smooth as possible.” Pro-active communications entrepreneurs. We listened to all their questions about the demolition and tried to take everyone into account as much as possible.” Aad: also delivered flowers to local residents, with an with an also delivered flowers to local residents, apology for the inconvenience.” Mark: andlaunched a dialogue with local residents Aad: never dispel all concerns as possible. You can every question, but and you can never answer Holland Casino employees we were right there. effective cooperation with the local authorities for with the effective cooperation residents. Four with nearby the communications held a meeting the fire, the authorities days after The mayor and our Chair for all local residents. at that event, as did the man of the Board spoke and the fire brigade.” municipal health service We were right there there right We were Mark:
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS MATERIAL ASPECTS 2017 ASPECTS MATERIAL 35 2 3 11 1 7 4 HIGH 8 13 14 5 12 9 10 Profitability Profitability Sustainable employment terms IT infrastructure Automation of processes Rebuilding and renovation casinos 15 9 10 11 12 13 14 15 16 6 Innovation Compliance Competition 16 MEDIUM Material to Holland Casino LOW Hospitality & guest experience Changing legislation Political decisions Social engagement Education & development Digital transformation Safe & responsible gaming Privacy & security 3 4 5 6 7 8 1 2
Material aspects
HIGH MEDIUM LOW Material to our stakeholders our to Material - The next page shows the relationship between The next page shows the relationship between the material aspects and strategic principles. Holland Casino’s materiality matrix was drawn up drawn up Holland Casino’s materiality matrix was with inputon the basis of the risk analysis together obtained during discussions with stakeholders. vision, This is based on Holland Casino’s mission, ambition and strategy. to be addressed in the annual report. Relevant the annual report. Relevant to be addressed in on the basis of the level aspects are assessed the company and its of materiality to both stakeholders. The materiality matrix shows which subjects shows which subjects The materiality matrix Casino and its stake are material to Holland extent the aspect needs holders and to what Material aspects 2017 aspects Material
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS MATERIAL ASPECTS 2017 ASPECTS MATERIAL 36 Guests Partnerships Society Overall Holland Casino Innovation Employees Strategic principle Automation of processes Political decisions Political decisions Profitability IT infrastructure Education & development Education & development Sustainable employment terms Privacy & security Hospitality & guest experience Safe & responsible gaming Safe & responsible gaming Changing legislation Social engagement Digital transformation casinos Rebuilding and renovation Privacy & security 9 1 4 6 5 2 7 2 3 1 8 9 13 14 15 12 10 16 11
Competition Compliance Innovation
Innovation Relationship material aspects and strategic principles principles and strategic aspects material Relationship Material aspect
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS REPORT OF THE EXECUTIVE BOARD
REPORT OF THE EXECUTIVE BOARD BOARD EXECUTIVE THE OF BESTUURSVERKLARING REPORT 38 Erwin van Lambaart Chairman of the Executive Board Chief Financial Officer Ruud Bergervoet CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS REPORT OF THE EXECUTIVE BOARD BOARD EXECUTIVE THE OF REPORT 39
Making our guests the number one priority; Investments in our land-based operation; Investments in our land-based operation; Investments in omni-channel; Online proposition; Optimising processes and systems; Development corporate culture; gaming market. Preparations for the liberalisation of the Strategic partnerships;
.
With respect to the investments in the land-based operations, last year we With respect to the investments in the land-based these investments will become invested in our casinos, and the results of projects in Venlo, Utrecht and visible in the ongoing building and renovation the renovation project in Valkenburg. In 2017, we successfully completed Rotterdam. The proposed opening of the new Holland Casino location in Amsterdam West has encountered delays and the opening is currently planned for the second quarter of 2018. t was robust the fire in Groningen. Our underlying profi insurance pay-out for higher.and came in slightly prepare with an organisation, it is important that we For Holland Casino as a highly dynamicfor the changes we may face in what is flexibility and agility ns. This makeskinds of uncertainties and unexpected tur playing field with all if we are developments in the casino market it essential for us to anticipate market. How we our leading position in the casino to maintain and strengthen long-term plan ‘Together onintend to do just that is outlined in our strategic the road to 2020’. eight programmes that are In that strategic long-term plan, we define solidly, flexibly and with agility: aimed at making sure that we operate 1. 2. 3. 4. 5. 6. 7. 8.
In 2017, we were also confronted with exceptional depreciation costs andIn 2017, we were also confronted with exceptional down of our casino in Groningenimpairments, primarily due to the burning in our online proposition.and the write-downs on our previous investments The latter shows that the political uncertainties in our sector not only cause concern among our employees but also have a negative financial impact on our results. In 2017, we also booked exceptional income as a result of the and Rotterdam, as well as in regular replacements. These efforts are all aimedand Rotterdam, as well as in regular replacements. casino experience. They canat providing our guests with a state-of-the-art investments on the casino floor andalready see and feel the results of these in 2018. we are fully committed to further investments We were able to maintain the upward trend of recent years in 2017 and onceWe were able to maintain the upward trend last year we made considerableagain recorded a solid result. In addition, of our casinos. We invested in newinvestments in the renewal and revitalisation projects such as Amsterdam Westslot machines, in building and renovation then we faced strikes and staff protests at our casinos in the run-up to thethen we faced strikes and staff protests at for our employees. new, sustainable collective labour agreement as a company and as the sum ofThe resilience Holland Casino demonstrated back on with some pride. all our employees is something we can look at one or more Holland Casino locations and we booked an increase in Casino locations and we booked an at one or more Holland operating result in 2017. for Holland by some extraordinary circumstances Last year was also marked the devastating fire at our casino in Groningen, andCasino. Firstly, there was The improved macro-economic conditions, our continuous attention for our conditions, our continuous The improved macro-economic to the solid range of games we offer all contributed guests and the wide unique guests in 2017. We recorded a total of 1.1 million results we recorded Report of the Executive Board Board Report the Executive of
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS REPORT OF THE EXECUTIVE BOARD BOARD EXECUTIVE THE OF REPORT 40
work stoppages and strike actions in connection with the collective labour labour strike actions in connection with the collective work stoppages and visits per year The average visit frequency was 5.2 agreement negotiations. and long-term previous year. We are building valuable in 2017, in line with the meeting the and a high level of guest satisfaction by guest relationships tailor-made guests, and rewarding loyal guests with expectations of our and hospitality fronts. solutions on the service Net Promoter Score (NPS) to measure the experienceHolland Casino uses the Net Promoter Score measure guest loyalty. The NPS of its guests. The NPS is an instrument to of promoters and calculates the difference between the percentage number between -100 and +100. detractors and is expressed in an absolute NPS and the average in the leisure The general aim is to achieve a positive Casino scored an NPS of 30 in 2017, sector is between +15 and +20. Holland the previous year (2016: 28). which was an improvement on its score Guests million visits to our made a total of 5.8 million unique guests In 2017, 1.1 the slight decline in visits in 2016. The with 5.9 million casinos, compared casino the burned-down to the closure of visits was largely due number of Airport, and the various casino at Schiphol the closure of the in Groningen,
li anticipating and responding to developments and we are devoting a lot of anticipating and responding to developments proposition, including the addition of attention to the preparation of our online an online Responsible Gaming Policy. Culture and leadership are spearheads in our strategy. Holland Casino has Culture and leadership are spearheads in the context of those launched a range of initiatives and programmes liberalisation of the gaming market themes. At this time, it is unclear how the for the future, and flexibility and will progress. Holland Casino is preparing long-term plan. We are in any case agility are key elements in our strategic fact that our Internal Audit department was certified following an assessment Audit department was certified following fact that our Internal association Internal Auditors, the international professional by the IIA (Institute of we is a clear demonstration that as an organisation of internal auditors), professiona serious steps in the optimisation and have taken a number processes and control systems. sation of our internal out testing and rolling groups and are look at new target We also actively in investments are also making considerable for new players. We concepts renewal of our of our internal processes and the the continuing optimisation that respect. The and efficiency are focal points in systems. Future-proofing Guest experience is at the heart of all of our projects. We provide state-of-the We provide state-of-the of all of our projects. is at the heart Guest experience gaming concepts. innovative and surprising and introduce art slot machines
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0.2 -0.3 24.9 81.7 1.1% 8.7% 3.1% 9.3% 5.3% 8.8% 5.2% 5.2% -0.2% -0.8% 73.9% 10.0% 66.7% 11.7% 19.5% 20.0% -11.4% 222.4% -100.0% Procent
- 0.3 -0.2 -7.6 74.1 81.6 81.7 607.4 445.5 445.5 -161.9 -363.9
4.4 22.9 21.6 -24.9 2016 305.5 -207.6 -131.4 253.0 -
- -0.5 43.3 98.0 2017 2016 140.8 106.5 0.5 29.0 73.5 97.5 98.0 -24.5 639.2 468.7 497.7 -170.5 -400.2
3.9 23.6 23.6 2017 -43.3 255.9 332.2 -225.8 -131.1 (earnings before interest, taxes, depreciation and amortisation) (earnings before interest, taxes, depreciation
CALCULATION EBITDA EBITDA CALCULATION STATEMENT OF INCOME OF STATEMENT Share of profit of equity-accounted investees, net of tax net of investees, of equity-accounted of profit Share and impairments Depreciation EBITDA (VPB) income tax Corporate income tax corporate Result after (x millions of euro) income tax corporate Result before Financial income and expenses Gaming tax Net revenue claim Insurance revenue Total and impairments Depreciation benefits Employee expenses Other operating expenses Operating result Operating Financial income and expenses tax net of investees, of equity-accounted of profit Share income tax coprate Result before (x millions of euro) (x millions of games Table Revenue Slot machines Revenue tips Gaming and non-gaming revenue & Beverage Food Other Income tax* gaming before Revenue ed under financial results are now presented under financial have been adjusted for comparison purposes. The exchange rate * The revenue before gaming tax for 2016 income and expenses. Financial developments Financial
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Holland Casino has been subject to corporate income tax since 1 January income tax since 1 January Holland Casino has been subject to corporate 73.5 million (2016: EUR 74.1 2016. In 2017, the result after taxes was EUR expenses, the result after taxes million). Adjusted for one-off income and was EUR 71.7 million (2016: EUR 65.5 million). Other operating expenses declined slightly, by 0.2% or EUR 0.3 million to EUR million to EUR declined slightly, by 0.2% or EUR 0.3 Other operating expenses of transfer tax 131.4 million a year earlier. The one-off 131.1 million, from EUR (public limited conversion of the foundation into an N.V. EUR 4.6 million for the were offset by automation costs (EUR 3.7 million) company), and higher costs (EUR (EUR 1.6 million) and reduced operating lower marketing costs consultancy in operating costs was largely due to lower 6.1 million). The drop in Groningen. for slot machines and lower costs costs, lower lease costs came in at EUR 18.4 million In 2017, depreciation and amortisation costs of impairments related in higher than in 2016. This was due to a number 8.0 million) and impairments on particular to the fire in Groningen (EUR (EUR 3.8 million). previous investments in our online proposition Operating result corporate income tax rose by EUR Holland Casino’s operating result before increase compared to 2016 (EUR 16.3 million to EUR 98.0 million, a strong by higher revenue (EUR 23.2 81.7 million). This increase is mainly caused insurance claim (EUR 29.0 million) million) and the received portion of the (EUR 18.2 million) and cost of partly offset by the higher employee benefits impairments (EUR 18.4 million). labour agreement and a one-off supplementary supplementary payment for 2016 as a one-off a and agreement labour number of employees agreement. The total collective labour result of the earlier. from 3,441 a year at year-end 2017, had risen to 3,699 (headcount) slightly to 224 the head office increased of employees at The number (2016: 210).
o an increase increase was due to an increase or 8.8% from EUR 207.6 million in 2016. This at year-end 2017 (year-end in the number of employees (FTEs) to 2,708 2016: 2,519) in combination with a 2017 salary increase in the collective Expenses Expenses the previous year at EUR 400.2 Operating expenses came in higher than EUR 363.9 million recorded in 2016. million, up 10.0% or EUR 36.3 million from the million in 2017, up EUR 18.2 million Employee benefits increased to EUR 225.8 The revenue of EUR 29.0 million pertains to the agreed portion of the to the agreed portion of the The revenue of EUR 29.0 million pertains fire in Groningen. ongoing insurance claim related to the statements for more information on See pages 102 and 103 of the financial the financial impact of the fire in Groningen. Gaming and non-gaming tips (including tips received for Food & Beverage tips received for Food & Beverage Gaming and non-gaming tips (including EUR 0.7 million to EUR 23.6 million and Front office activities) increased by revenues were up 9.3% at EUR (2016: EUR 22.9 million). Food & Beverage 23.6 million. where revenue was up 8.6% at EUR 54.7 million (2016: EUR 50.4 million) million) up 8.6% at EUR 54.7 million (2016: EUR 50.4 where revenue was and contribution to this increase. The replacement made a considerable from Slot contributed to an increase in revenue renewal of Slot machines 305.5 million), to EUR 332.3 million in 2017 (2016: EUR Machines, which rose million or 8.7%. an increase of EUR 26.7 ing per visit spending per visit million), while average in 2017 (2016: 5.9 to 5.8 million in 2016. 6.9% from EUR 103 to EUR 109 in 2017, up increased to EUR 255.9 games was up EUR 2.9 million or 1.1% The revenue from Table Roulettes, million). Higher revenue from the Multi million (2016: EUR 253.0 Revenue Revenue an increase of 5.2% was EUR 639.2 million, gaming taxes Revenue before slightly of visits declined million). The number to 2016 (EUR 607.4 compared
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total of EUR 42.9 million will be paid for 2017. The remaining result of EUR 30.6 result of EUR 30.6 will be paid for 2017. The remaining total of EUR 42.9 million to the equity.. million will be added Investments fixed assets. a total of EUR 71.6 million in tangible Holland Casino invested investments were in building and renovation A large portion of these included West and Rotterdam, but they also projects in Amsterdam and regular renovation projects (EUR 40.3 million) investments in various Holland Casino also invested replacement investments (EUR 21.4 million). EUR 27.8 million). In addition, EUR 9.9 million in new slot machines (2016: with our online proposition being the we invested in intangible assets in 2017, largest project we invested in. Equity Equity 11.5 million in interim State a total of EUR Casino paid the In 2017, Holland 2017, Holland Casino dividend payment for respect to the dividend. With and a the reporting date Finance Ministry after with the reached agreement
73.3 88.6 2016 161.9 74.2 96.3 2017 170.5 GAMING TAX GAMING gaming tax Total (x millions of euros) games Table Gaming tax Slot machines Gaming tax credit of EUR 140 million, which was not used in 2016 and 2017. The credit credit of EUR 140 million, which was not used banks comprising ING (50%) and facility was agreed with a consortium of ABN AMRO (50%). his raised the to the equity. This raised the from 2017 (result before remittance of profits) solvency ratio to 63.9% (2016: 60.3%). Financing a new credit facility with total availableIn October 2015, Holland Casino arranged Financial position Solvency at year-end 2017, from EUR 184.3 Equity had increased to EUR 211.3 million addition of the undistributed result million a year earlier. This was due to the from the a financial year deviates from the The actual payments of gaming tax over a month in arrears. In addition to the figures above, as payments are made is also legally liable to pay a gaming payment of gaming tax, Holland Casino to EUR 0.9 million (2016: EUR levy. In 2017, the total gaming levy amounted 0.9 million). from Table games and Slot machines, on a monthly basis. basis. on a monthly games and Slot machines, from Table Holland Casino pays the State a gaming tax at a rate of 29% on the revenue revenue rate of 29% on the a gaming tax at a pays the State Holland Casino XX OP DEZE PAGINA XX OP
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start of the European Tour of the World Poker Tour (WPT). start of the European Tour of the World Poker Tour (WPT). the aimed specifically at the and quick variation on American roulette, available in seven casinos. 24+ target group. This game is currently Holland Casino once again organised a number of large-scale tournaments in 2017. In May, Holland Casino Amsterdam hosted the In late 2016, we added the dice game Casino Barbut in Venlo, a Barbut in Venlo, a In late 2016, we added the dice game Casino Barbut is based on the Middle game we developed in-house. Casino Eastern (street) game Barbut. Roulette, a simplified In 2017, we developed and introduced Simple approach. approach. was rolled out at a number The Diceball game we launched in 2016 on the familiar of casinos in 2017. This dice game is a variation incorporating a number game Craps (also known as seven-eleven) of baseball elements. We have also added Live Bingo as a new table game in Holland Live Bingo as a new table game in Holland We have also added and new guests have Casino Breda, and both our regular guests will also be available in the greeted this with enthusiasm. Live Bingo like Poker and Roulette, new casino in Amsterdam West. Live Bingo, future omni-channel is a game that is particularly suited to a r number fire in Groningen. We increased the 420 tables) due to the 795 units across all casinos by 95 to a total of of Multi Roulette units allows guests to play live on the American in 2017. Multi Roulette local casino or other casinos via a screen. Roulette tables in the Table games Table games (2016: tables declined slightly in 2017, to 417 The number of gaming Operational developments developments Operational group per product
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for 22 tournaments spread across 11 days with 545 re-entries (the with 545 re-entries (the for 22 tournaments spread across 11 days Casino in Breda hosted the opportunity to buy in again). The Holland the end of December. final of the Dutch Open Poker Series at -ins with various buy-ins The 2018 event had a total of 12 ‘Ring Events’ and formats. hosted the 26th edition of In November, Holland Casino Amsterdam participants registered the Master Classics of Poker. A total of 2,465 This was outstanding recognition for our professionalism. This was outstanding recognition for our hosted the Dutch The fully renovated Holland Casino in Rotterdam the first time at the end of version of the World Series of Poker for poker event in the world. last summer. This is the largest and oldest The European Dealer Championship took place in London in May of May of Championship took place in London in The European Dealer from had a total of 33 participants this year. The championships a the Netherlands. Gilbert Ho-Kang-Jou, 21 countries, including won and David Luijten, a dealer in Eindhoven, dealer in Scheveningen, dealers. at the European championship for second and third place ments, with several international top players. In October, Valkenburg Valkenburg top players. In October, several international ments, with for the first time the fourth time – World Poker Tour for hosted the to a Main Deep Stacks. In addition World Poker Tour dubbed the with a High Roller event and various side events Event, this included a lower buy-in. This was the third time Holland Casino teamed up with the WPT to with the WPT to Casino teamed up third time Holland This was the 11 different tourna year saw a total of tournament. Last organise this
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In 2017, the progressive jackpot of more than EUR 1.7 million was won In 2017, the progressive jackpot of more occasions: on seven jackpots smaller won guests addition, In Breda. in four of EUR 75,000. one of EUR 250,000, two of EUR 150,000 and chance to win a range of jackpots, from EUR 75,000 (1 euro bet) to chance to win a range of jackpots, from Part of each euro bet goes a minimum of EUR 1 million (5 euro bet). as this progressive jackpot towards the progressive jackpot. As long has not been won, it continues to grow. also reintroduced Black Jack and we are testing games with various also reintroduced Black Jack and we are skill components. offer guests the oppor At the moment, a total of 156 slot machines game offers players the tunity to win the Mega Millions Jackpot. This and Breda. Royal Derby will also be available in the new casino in will also be available in the new casino and Breda. Royal Derby overall Casino also continues to add to the Amsterdam West. Holland machines with branded themes. One example experience of its slot at of the Game of Thrones slot machine of this was the introduction of slot As part of our drive to expand our range all our casinos in 2017. year we them even more fun for our guests, last machines and make replaced 924 of the total of 5,701 slot machines in 2017, plus we slot machines in of the total of 5,701 replaced 924 slot machines. a further 1,320 existing game variations to added new now been Bingo machines have a successful pilot, all Based on also introduction in Utrecht in 2016, we have replaced. Following the a realistic horse racing game, in Rotterdam installed Royal Derby, Slot machines Slot machines drive. We slot machine renewal began a major In 2014, Holland
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system that we began in 2015, with the introduction of handheld units introduction of handheld units system that we began in 2015, with the to increase the speed of our services. score of 9.2 from 450 visitors on restaurant review site IENS last year. review site IENS last year. score of 9.2 from 450 visitors on restaurant top three of the culinary This put the restaurant in the Eindhoven consumer award the “IENS TOP 2018”. centralised cash register In 2017, we completed the renewal of the well-known in London, Miami and Las Vegas. The new restaurant The new restaurant well-known in London, Miami and Las Vegas. the overall guest experience concepts make a positive contribution to and appreciation at Holland Casino. received an average The restaurant at our casino in Eindhoven We will also open a high-end variation of this successful concept, high-end variation of this successful concept, We will also open a We new casino in Amsterdam West in 2018. Global Dining, in the to of our location in Amsterdam city centre have rented out part they launched the successful international an external party and is there in September 2017. This concept concept Sushi Samba front. We are devoting more and more attention to Food & Beverage to Food & Beverage more attention devoting more and front. We are functional eating extra beyond simply that offer something concepts concept in a new restaurant In late 2016, we opened and drinking. is inspired Kitchen. This fast casual restaurant Rotterdam, The Global and Latin American cuisine. by Asian, Mediterranean Food & Beverage & Beverage to renew on the Food also continues Holland Casino
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS INVESTING IN THE ULTIMATE CASINO EXPERIENCE PIETER BOERS AND SIBBE VAN DER MEIJDEN INVESTING IN THE ULTIMATE CASINO EXPERIENCE EXPERIENCE CASINO ULTIMATE THE IN INVESTING 49
“ All our casinos are Pieter Boers own audience. Director Gaming & Services unique and serve their “ -
“We completely renovated and refurbished on offer was very fragmented in Rotterdam andon offer was very fragmented in Rotterdam had twolots of guests didn’t even know the casino more spa floors. The casino is now laid out much first floorciously, with all the gaming tables on the And rightand all the slot machines on the second. at the centre of the gaming floor we have a modern stairwell with escalators up to the second floor.” with the best gaming experience’. with the best gaming games in clusters for For instance, we organise experience for our the best and most exciting change, then we have to guests. If the games A good example of this is reorganise the casinos. - ‘live roulette’ via a the Multi Roulette game are set out in an terminal. These terminals tables, arena-like formation around the gaming which changes the experience in the gaming room and vastly improves the contact between example the guests and the game itself. Another is that we always place the Food & Beverage room. So (F&B) facilities in or around the gaming of the the guests can still enjoy the full atmosphere to eat.” gaming room if they take a break for a bite The casino experience is back in Rotterdam Pieter: gamesthe Rotterdam casino in 2017. The range of position the Holland Casino brand as the ‘real casinoposition the Holland Casino
“We have our own very specific philosophy “An entertainment venue like Holland Casino Pieter: of years. That is essential to maintain our leadingof years. That is essential to maintain our aposition, and right now we are very busy with number of projects right across the country.” Design philosophy Pieter: itshas to renew continuously to keep surprising in lessguests. Of course we still invest in our casinos been afavourable economic periods, but there has couplebit more room for investments over the past about updating and renewing the casinos. renewing the casinos. about updating and distinct They are mostly about creating a very for our atmosphere, ambiance and experience guests. Continuous renewal former Manager Facilities & Real Estate, former Manager Facilities Meijden, Manager Food & and Sibbe van der the Valkenburg casino, are Beverage (F&B) at one or more building and closely involved in Renovations are not just renovation projects. Holland Casino invests in its casinos, so it can in its casinos, so it can Holland Casino invests casino experience. offer guests an optimum Gaming & Services and Pieter Boers, Director for the design of building and renovation projects.for the design of building and renovation The building blocks of this formula are based on our own strategy, with a focus on ‘players’ and we Investing in the ultimate casino experience experience casino ultimate in the Investing
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Manager Food & Beverage Manager Food & Beverage Holland Casino Valkenburg The casino experience The casino experience
“In addition to our new casino in “In addition to our new casino in “ Sibbe van der MeijdenSibbe is back with a vengeance is back with a look and feel.” The most sustainable casino in the Netherlands Pieter: the Amsterdam West, we are also busy with and construction of new-build casinos in Venlo the Utrecht. In Venlo, Holland Casino is applying local cradle-to-cradle principles of the Venlo council. We are applying sustainable principles in the fields of energy, materials and architecture project to spectacular effect. And the new-build cost- in Utrecht will devote a lot of attention to more effective sustainability. We are devoting Holland and more attention to sustainability within Casino. The Venlo casino proved to be an outstanding incentive on this front.” a range of warm colours that reflect a typical typical a range of warm colours that reflect a modern Limburg landscape and have a chic and
“All our casinos are unique and serve their “All our casinos are unique and serve their “In Valkenburg, for instance, we receive lots lots “In Valkenburg, for instance, we receive inspire our guests at every turn and indulge their their inspire our guests at every turn and indulge every whim.” Sibbe: really of guests from Belgium and Germany. They appreciate high-quality regional products on the F&B front. And in the casino itself, we have used to add new games to our range of table games, games, to add new games to our range of table including the dice game we developed ourselves, Quick Casino Barbut, plus a special zone with an Roulette and Dice Ball. These games are target excellent fit with the wishes of our 24+ around group, who really appreciate interaction the game.” Pieter: own audience, and you can see those differences What in the design and lay-out of the casinos. want to the casinos have in common is that we
“The look and feel and the lay-out of the “The look and feel and the lay-out of the “Hospitality is one of Holland Casino’s main Holland Casino’s main “Hospitality is one of “During these renovations, we always make “That large-scale renovation has made a renovation has “That large-scale Sibbe: very gaming room in Valkenburg will also be different in the future. We will have more slot machines and the latest models. And we plan restaurant in Valkenburg, guests were able enjoyrestaurant in Valkenburg, guests were able the gastronomic delights of a special ‘pop-up’ with a spectacular view of the Geul restaurant valley.” can watch live sports events and the like.” Pieter: accessiblesure that our casinos are open and easily of thefor guests. For instance, during the renovation then we have completely renewed the F&B facilities.then we have completely a and We now offer both a fine dining experience fully in line more informal brasserie. This offering is with the type of guests we welcome in Valkenburg, also have many of whom are real food lovers. We guests a new cocktail bar with giant screens so Sibbe: see that in the look and feel priorities and you can F&B facilities. We want to of the casinos and the Valkenburg, we started thepamper our guests. In last October and sincerenovation of the casino Sibbe: place: the casino in the feel of the real difference a vengeance.” experience is back with Valkenburg New look & feel for
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able office building with open work floors encourages a new way of working work floors encourages a new way of working office building with open able the various departments. Holland and more effective cooperation between for this new office, giving it Casino has signed a flexible rental agreement the freedom to respond to future developments. Amsterdam West has taken over the licence of the casino at Schiphol at Schiphol taken over the licence of the casino Amsterdam West has We have now its doors in the first quarter of 2017. Airport, which closed in Amsterdam 200 new employees for the new location recruited more than offered the from the Schiphol casino have been West and the employees been to the new casino. The employees have opportunity to transfer West casino. until the opening of the Amsterdam deployed to other casinos en and was a fire at Holland Casino in Groning On 27 August 2017, there this casino. We have great we were subsequently forced to close down services and other parties involved admiration for the way the emergency with various stakeholders, is handled the situation. Holland Casino, together new casino in Groningen. Until that working hard on the preparations for a in Leeuwarden, where we have time, our guests can go to Holland Casino We have organised a free shuttle temporarily extended the opening hours. for the duration. The Holland Casino service from Groningen to Leeuwarden in other casinos in the mean Groningen employees have agreed to work flexibility and commitment of its time. Holland Casino is very proud of the employees in these extraordinary circumstances. Casino head office moved to Finally, on 30 November 2017 the Holland This modern and sustain another location in Hoofddorp, on Neptunusstraat.
be trendsetting in a multitude of ways. The location is highly accessible and The location is highly accessible and be trendsetting in a multitude of ways. complex with a hotel, it will be part of a completely new, multi-functional hyper-modern complex is being wellness facilities and a rooftop bar. The developed in the former KPN Telecom head offices in Amsterdam West. desires of our guests. We are currently running a pilot with much longer running a pilot with much longer desires of our guests. We are currently opening hours in Rotterdam. location in Amsterdam West The proposed opening of the Holland Casino of 2018. This new casino will is currently scheduled for the second quarter in October 2017. We expect to be able to welcome our guests to a fully welcome our guests to a fully in October 2017. We expect to be able to refurbished casino in the summer of 2018. project in Rotterdam. This We have completed the large-scale renovation with the current requirements and fully renovated casino is now fully in line near the A12 motorway, which is scheduled to open in early 2020. We will to open in early 2020. We will near the A12 motorway, which is scheduled on Overste den Oudenlaan until continue operations in the existing casino the opening of the new casino. at the casino in Valkenburg Holland Casino launched a complete renovation on Floralaan in Tradeport Oost into operation at the end of 2019. Holland 2019. Holland Oost into operation at the end of on Floralaan in Tradeport the new casino is in the existing location until Casino will remain operational ready to open its doors. in Utrecht, building a new casino on Winthontlaan Holland Casino is also Construction and renovation projects renovation projects Construction and for the continuously in its casinos. The preparations Holland Casino invests locationare in full swing. We expect to take the new-build new casino in Venlo Developments at casinos Developments
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and unexpected turns. For Holland Casino, it is vital that we are it is vital that we are and unexpected turns. For Holland Casino, all the changes that may flexible and agile in our preparations for come our way. With our strategic long-term plan ‘Together on the road to 2020’, we are anticipating all possible developments that might come our way. based casinos and an online casino and are targeting an are targeting an based casinos and an online casino and product portfolio omni-channel strategy, driven by an innovative and our Responsible Gaming Policy. with a lot of uncertaintiesWe are operating in a dynamic playing field, agenda in the coming period, as will building long-term and long-term and agenda in the coming period, as will building personal relationships with our valued guests. for the online gaming Holland Casino will also continue to prepare combination of land- market. We see opportunities in the unique The opening of our new location in Amsterdam West is currently West is currently The opening of our new location in Amsterdam and Holland Casino also scheduled for the second quarter of 2018 as soon as possible. hopes to open a casino in Groningen again group will be high on our Attracting new players in the 24+ target In order to maintain our leading position in the casino market, in the in the our leading position in the casino market, In order to maintain continue to make substantial investments coming period we will concepts, building and renovation projects, in innovative game the optimisation of internal processes and as well as the further renewal of our systems. We expect the continued improvements in macro-economic in macro-economic the continued improvements We expect to the consumer confidence to contribute conditions and greater of the gaming market. continued recovery Outlook Outlook
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Identification and registration Information and awareness Information and awareness Responsible Gaming Policy Policy Responsible Gaming responsible Policy states that the player is in principle The Responsible Gaming more frequently conduct and should not play longer or for their own gaming allows. In order or more than their financial situation than is good for them provides of their gaming conduct, Holland Casino to make players aware to make that information that they may need them with all the possible the Responsible play a vital role in the execution of judgement. Our employees responsible gaming, Employees receive extensive training on Policy. Gaming associated them with insight into the problems which is aimed at providing in early recognition of potential with gambling addiction. They are trained active contribution to the problem behaviour and learn to make an conversational skills. They also Responsible Gaming Policy by using their in guests’ behaviour. If necessary, learn to recognise and assess changes manager or the Security & they can send an internal signal to their central registration system Responsible Gaming department via the is built on four pillars: Holland Casino’s Responsible Gaming policy 1. 2. the policy is primarily aimed atTo prevent or minimise gambling addiction, of safe and responsible gaming informing guests and making them aware on the subject both online practices. This includes sharing information and offline. The frequency of visits may prompt an awareness interview. Holland Casino tightened the policy on this front in 2017 in consultation with the advisory group. Holland Casino’s guests are required to identify themselves upon entry and Holland Casino’s guests are required to registration system. their visit is recorded in the central visitor
working processes and registration systems. We have also set up an We have also set up an working processes and registration systems. the policy. In addition to Holland advisory group that regularly assesses University Nijmegen, the Casino, this group includes AMC-UvA, Radboud Trimbos Institute, ASSISSA, Jellinek, HANDS and the AGOG foundation. What this duty of care entails, among other things, is that we make sure things, is that we make sure What this duty of care entails, among other at all times. Holland Casino teamed that our guests are playing responsibly and treatment organisationsup with a number of Dutch addiction prevention The execution of this policy is to develop our Responsible Gaming Policy. which has access to our supervised by the Dutch Gaming Commission, gambling addiction, protecting consumers and combatting fraud and gambling addiction, protecting consumers criminality. PRIORITY: Responsible gaming of Holland Casino’s core tasks. We consider caring for our guests as one Holland Casino’s policy focuses on three priorities: responsible gaming, Holland Casino’s policy focuses on three the guarantee of a safe gaming honest and reliable gaming options and on the three key objectives of environment. These three priorities are based drew up in 1974: preventing the Responsible Gaming Policy Holland Casino with risks. Holland Casino aims to give its guests the opportunity to play the aims to give its guests the opportunity with risks. Holland Casino on the Dutch reliable environment. As market leader game in a safe and Responsible devote a lot of time and attention to our gaming market, we are proud of the Kansspelen - PBK) and we Gaming Policy (Preventiebeleid policy in late 2017. a European certificate for this fact that we were awarded Holland Casino operates in a market that derives its licence to operate from in a market that derives its licence Holland Casino operates the chance thatexcitement people experience thanks to the enjoyment and obviously come in a large monetary prize. Chances their small bet will result Our guests guests Our
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more active role in referring players subject to a visit restriction or admission to a visit restriction or admission more active role in referring players subject organisation specialising in telephone ban to HANDS, which is an independent they are not allowed to assistance. As far as employees are concerned, and for six months after the end of participate in games of chance during their employment at Holland Casino. available methods to moderate their gaming behaviour. The risk of visit risk of visit moderate their gaming behaviour. The available methods to if the guest bans is that they may be ineffective restrictions or admission This anonymously at arcades or in illegal facilities. can continue to play Act (Kans with the arrival of the Remote Gaming issue will be resolved registration Koa). This entails the launch of a central spelen op Afstand – kansspelen - exclusions (Centraal register uitsluiting system for gaming improve the players from all providers and help CRUKS), which will exclude to gaming players. This register will then also apply protection of at-risk restrictive casinos. When a person returns after a arcades and online & Responsible Gaming measure is lifted, a member of our Security interview. In 2017, we department will always conduct an aftercare 10,424). conducted 10,485 aftercare interviews (2016: is six months, in line with the The maximum duration of a restrictive measure After this period, players are in draft legislation on Remote Gaming (Koa). interview, which enables us to contact with us once again via an aftercare gaming circuit for a longer period prevent them from gaming in the illegal ban, Holland Casino can also of time. In addition to a voluntary admission . impose a (long-term) admission ban. group, Holland Casino plays a Since 2017, in consultation with the advisory In the context of awareness, it is important that guests voluntarily agree to agree to voluntarily guests that it is important awareness, context of In the no longer a guest is when If necessary, ban. or admission restriction a visit Casino will impose responsibility, Holland capable of accepting considered if there a guest access Casino can also deny measure. Holland a restrictive their themselves and/or may cause harm to that the player is a suspicion the receiving advice on repeatedly and being approached family, despite
4. Intervention we confront the guest with the In the more probing monitoring interview, discuss any measures that may need findings of the monitoring phase and to be taken to moderate their gaming behaviour, such as visit restrictions or an admission ban. are involved via so-called prevention interviews. In 2017, we conducted a In 2017, we conducted a are involved via so-called prevention interviews. increase compared to 2016 total of 2,306 prevention interviews, a slight interviews, an increase on (2,223). In addition, we conducted 61 monitoring in 2016. the 51 monitoring interviews we conducted Security & Responsible Gaming department. Depending on the outcome of Depending on the outcome of Security & Responsible Gaming department. qualify for a monitoring interview. the analysis, the guest may or may not again emphasise the guest’s own During a monitoring interview, we once responsible gaming and regulating responsibility when it comes to safe and precautions when young adults their (gaming) behaviour. We take extra 3. Monitoring and gaming behaviour six and We assess the frequency of a guest’s visits – a qualitative analysis of 18 months after the initial awareness interview recorded in the systems of the any signals and incidents reported and their fourth on their fourth adult receives a flyer with information instance, every young the risks of aware of the frequency of their visits and visit, to make them over the of a young adult’s visits has increased gaming. If the frequency so-called we conduct an awareness interview, the previous three months, young adults. In 2017, we conducted 2,521 interviews with young adult interview. constitutes responsible gaming and the risks associated with gaming. with gaming. and the risks associated responsible gaming constitutes interviews in 2017. total of 1,043 awareness conducted a Holland Casino d to have in the age group 18 through 23 are considere Since young adults age group. For we have a stricter policy for that a higher risk of addiction, If a guest makes an average of 12 (or more) visits a month to Holland to Holland visits a month (or more) of 12 an average makes If a guest of interview in an awareness this results period, month over a three Casino Security & Responsible employee of the nature. A qualified an informative what guest and discusses with the has a conversation Gaming department
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European Certificate Certificate European Gaming Policy Responsible Alcohol policy; addiction; Policy for employees with a possible gambling use of their findings, Contacts with stakeholders and making Gaming Policy including reporting of relevant Responsible aspects in annual reports; Working with input stakeholders and financing of studies and innovation in this front. Training programme for employees related to the Responsible to the Responsible Training programme for employees related Gaming Policy; the risks of the game, Information for problem players about care organisations including options for referral to addiction and contacts with care providers; of ID (including door Registration, identification and verification abuse); policy for incapacitated people and alcohol gaming; Policy with respect to marketing and responsible ◊ ◊ ◊ ◊ In November 2017, Holland Casino was awarded a European certifi Casino was awarded a European In November 2017, Holland there Gaming Policy. In the European Union, cate for its Responsible besides Holland Casino are only three other casino organisations that have been granted this certification. eight aspects: The certification takes into consideration ◊ ◊ ◊ ◊ online and is more user-friendly. online and is more user-friendly. Responsible Gaming Policy Online Online Policy Gaming Responsible active also become Casino will Holland allows, legislation as Dutch As soon responsible gaming full progress and the preparations are in online. The environment in consultation an online gaming also be translated to policy will the current incident 2018, we will replace group. In early with the advisory used both offline and that can be with a new system reporting system
600 230 2016 4,586 4,979 20,638 5.4 to 1.1 5.4 to 432 336 2016 2017 4,888 5,886 21,324 2017 5.3 to 0.8 5.3 to Holland Casino monitors changes in vist behaviour during a period of nine months during a period of nine months in vist behaviour changes Holland Casino monitors year. do not line up with the financial That means that the figures the first interview. after EXECUTION PBK IN FIGURES* EXECUTION PBK IN FIGURES PBK EXECUTION Decline in visit frequency per month in visit frequency Decline adults (18-23) among young
Number of interviews Admission restrictions Compulsory admission restrictions Admission bans Compulsory admission bans * The hospitality interview is an additional opportunity to assess whether opportunity to assess whether The hospitality interview is an additional interview is a spontaneous guests are playing responsibly. A hospitality a guest, the findings of which are conversation between a shift leader and recorded in a specially designed app. This conversation is not related to the Responsible Gaming Policy, but may result in a Responsible Gaming Policy signal. In 2017, we conducted 24,073 hospitality interviews (2016: 21,959). Hospitality interview Hospitality interview virtually always result in a prevention interview. In addition, on the recommen in a prevention interview. In addition, on virtually always result the number of visits that prompt dation of the advisory group we reduced an awareness interview. Two changes to the policy resulted in an increase in the number of of policy resulted in an increase in the number Two changes to the did in 2016, we measures taken. First of all, as we interviews and restrictive actively involved last year to get employees more made a continued effort in identifying These internal signals potential problem behaviour in players.
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903 1,404 445 869 1,741 3,127 1,475 2,674 1,094 1,988 indicators subjective subjective the basis of Reported on Reported Total 894 501 424 1,386 1,199 (including follow-up reports) objective objective indicators the basis of Reported on Reported HOLLAND CASINO REPORTS TO THE FIU TO REPORTS HOLLAND CASINO ADMISSION BANS* NUMBER OF (after refusal to participate in a client investigation) 57 2017 50 2016 41 2015 2014 21 2013 14 2017 2016 2015 2014 2013 * This pertains to admission bans due to potential money laudering risks. money potential admission bans due to to pertains This * The number of objective transactions reported in 2017 related to 503 in 2017 related to 503 The number of objective transactions reported 366), 437 cash transactions and deposits (2016: 528), 442 transfers (2016: and foreign currency trans credit card payments of EUR 15,000 or more (2016: 2). The increase in the actions (2016: 303) plus four other reports the higher revenue and spending total number of MOT reports was due to and awareness of employees figures in 2017. In addition, continuous training also contributed to the increase. supervises Holland (Kansspelautoriteit) Gaming Commission The Dutch the Casino provides policy. Holland its anti-money laundering Casino and the resulting from reports and analyses with quarterly Gaming Commission of same. and the execution laundering policy anti-money
nature of the visit and monitor transactions. We report unusual transactions tonature of the visit and monitor transactions. and transfers of money are carefullythe Dutch Financial Intelligence Unit (FIU) checked before they are approved or rejected. If Holland Casino has any doubts about the origins of money being used to play, we conduct a further investigation and we may terminate the relationship with the guest. classification and client investigation, the monitoring of business relationshipsclassification and client investigation, the transactions (MOT). and transactions, and the reporting of unusual guests before they engage inIn this context, we identify and register our personnel analyse the purpose andtransactions in the gaming rooms. Qualified Dutch Financial Supervision Act (Wft), the Prevention of money laundering Prevention of money laundering Dutch Financial Supervision Act (Wft), the and the Sanctions Act 1977. and the financing of terrorism Act (Wwft) Anti-money laundering policy policy has three key elements: riskHolland Casino’s anti-money laundering games in a safe and responsible way. games in a safe and responsible way. environment PRIORITY: Guaranteeing a safe gaming of fraud and criminal acts We consider it our duty to reduce the chances complying conscientiously with the to the absolute minimum. We do so by the random selection process in our gaming systems. The Dutch Gaming Dutch Gaming process in our gaming systems. The the random selection of our slot checks to monitor the reliability Commission uses risk-based procedures has thorough recruitment and hiring machines. Holland Casino submit an every new employee has to apply for and for new employees: Gedrag - VOG). of good conduct (Verklaring Omtrent het official certificate they can provide train and educate our employees so We also continuously has reliable and qualified employees, gaming equipment that meets objective gaming equipment and qualified employees, has reliable payment according to pre-determined standards and works technical specialised in testing, organisation The NMI, an independent percentages. and games in the field of measurement systems certification and training safeguard checks on our tables, including tests to of chance, conducts PRIORITY: Honest and reliable gaming gaming and reliable Honest PRIORITY: and games are honest Holland Casino’s be able to trust that Guests must it honest gaming because its guests Casino can guarantee reliable. Holland
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FOCUS ON THE GUESTS OF TOMORROW AND THE DAY AFTER IRENE VAN DEIJL AND ROBERT RAUPACH FOCUS ON THE GUESTS OF TOMORROW AND THE DAY AFTER DAY THE AND TOMORROW OF GUESTS THE ON FOCUS 58
“ Campaign manager The campaign images Irene van Deijl used to seeing from us. “ exciting than our guests are are more modern, trendy and “In order to design our gaming range “In order to design our gaming range “The recent December Goldrush campaign “The recent December Goldrush campaign ““Even in the earliest stages of a marketing stages of a marketing ““Even in the earliest 2017. Surveys and talks with new guests raised a raised a 2017. Surveys and talks with new guests for a number of issues. One of them is the desire a number lower minimum buy-in. Today, we have over of tables open at virtually all our casinos a lower the weekend where guests can play with minimum bet.” Irene: assess where we will use campaign, we carefully to avoid the vulnerable the campaign. We want under the age of 24. This group of young people consultation with our Security all happens in close department.” & Responsible Gaming Gold diggers Irene: a greater was the first nationwide campaign with imagesfocus on new target groups. The campaign our are more modern, trendy and exciting than want guests are used to seeing from us. We to show that Holland Casino offers an exciting is evening out. Our Responsible Gaming Policy new also very much top of mind when we develop campaigns.” Robert: as attractively as possible for our new target group in groups, Holland Casino set up a working
“We are very deliberately focusing on “We are very deliberately focusing on “The average age of our guests is set to rise “The average age of our guests is set to guests obviously remain extremely important to us,guests obviously remain extremely important we are also busy engaging new target audiences. day after.” They are the guests of tomorrow and the New target groups Irene: of thein the coming years, in line with the ageing population in the Netherlands. While our current role in promoting events and attracting new and attracting new role in promoting events National Marketing guests. Irene van Deijl, and Robert Raupach, Campaign manager, discuss the Marketing & Sales Nijmegen, challenges. opportunities and associated Holland Casino knows its guests inside out and its guests inside out and Holland Casino knows to exceed their high does everything it can efforts play a key expectations. Our marketing the first time. It is part of our DNA and it is also is also the first time. It is part of our DNA and it Policy.” the crux of our entire Responsible Gaming players aged 24 and upwards. As market leader, leader, players aged 24 and upwards. As market when it Holland Casino wants to set an example especially comes to safe and responsible gaming, are when it comes to a group of people who for coming into contact with games of chance Robert: Focus on the guests of tomorrow and the day after day and the tomorrow of the guests on Focus
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Holland Casino Nijmegen Manager Marketing & Sales & Sales Manager Marketing “In the past there was a bit more distance to discover safe and and to discover safe We want the Netherlands Netherlands We want the Robert Raupach Robert “You need each other to innovate. We are “You need each other to innovate. We are “The head office works closely with the “The head office works closely with the responsible gaming.
“ casinos. We can come up with all kinds of things of things casinos. We can come up with all kinds in the at the head office but it all has to happen casinos in the end. So we discuss campaigns up with the casinos in advance. And they come with their ideas to improve the campaigns.” Robert: but thatbetween the head office and the casinos, We areconnection has improved a lot these days. supportequal partners. Our role is to create local and roll out the campaigns locally. The casinos also regularly come up with their own ideas.” Irene: deal with a learning organisation. We do a great the information we collect and constantly renew our loyalty programme.” Learning organisation Irene: -
“We also use the more familiar ‘jij’ form “We also use the more familiar ‘jij’ form “Did you know that Las Vegas has “Did you know that Las Vegas has “The ‘James Bond’ feeling is very stylish, but Gaming Policy.” Robert: a of address in our materials. It has all become here bit more accessible and informal. We are for everyone and we want the Netherlands to discover safe and responsible gaming. Everyone is a player, after all!” Everyone is a player Everyone is a player Robert: changingabolished dress codes? Dress codes are with that rapidly and we are obviously keeping up development. We like to see our guests is free well-dressed in stylish outfits, but everyone to interpret that in their own way.” Irene: is more important that our guests feel comfort it the challenge in their outfit. On top of this, able for us is to always act in line with our Responsible - “We also conducted various campaigns “We also conducted various campaigns “In June 2017, we won the Radio Adver “In June 2017, we won “We noticed that new guests did not always always not guests did new “We noticed that also activation partner at the four-day walking walking also activation partner at the four-day - event in Nijmegen – the Nijmeegse vierdaagse the largest free festival in the Netherlands.” Robert: to new at festivals for the first time, to reach out Open target groups. These included Amsterdam were Air and the Solar festival in Roermond. We activation in the Coen & Sander Show on Radio in the Coen & Sander Show on Radio activation or won’t 538 ‘Lukt ‘t ze, of lukt ‘t ze niet?’ (Will they, Coen they). Listeners could guess whether DJs and Sander would succeed in various challenges Casino and with that win an all-inclusive Holland package.” games.” games.” Marketing activations Irene: tising for best branded content with ourAward find it easy to navigate their way around the way around the to navigate their find it easy hosts available we now have more casino. So to get acquainted with to give people a chance in a low-threshold games and slot machines provide explanations of the way. The hosts also Irene:
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255 570 615 623 210
3,231 1,378 3,441 3,441 295 630 700 665 224 2017 2016 3,475 1,409 3,699 3,699 EMPLOYEES Employees Slot machines Slot machines Employees Services Employees & Beverage Food Employees Other Employees (headcount) employees Total Employees casinos Employees head office Employees (headcount) employees Total games Table Employees
In 2017, we once again devoted considerable attention to the continued devoted considerable attention to the In 2017, we once again policy, to of the internal communications development and optimisation our employees. openness and transparency towards encourage interaction, HR, group in which the Executive Board, We have set up a steering within discuss how to improve the connections management and employees and the contacts between our employees the organisation. Strengthening between the casinos is a key priority, as are the contacts the management in long-term plan the casinos. Holland Casino’s strategic the head office and culture and leadership as a ‘Together on the road to 2020’ designates future with confidence, together. spearhead. Our objective is to look to the
on wages, adaptation of the senior staff scheme and job security. Holland on wages, adaptation of the senior staff that unsettled period behind us Casino is very happy that we can now put thanks to this agreement. protests and work stoppages. What our employees needed most of all was protests and work stoppages. What our liberalisation of the gaming more certainty in the context of the possible in June 2017 Holland Casino and market. After an intensive period of talks, agreement on a new five-year the trade unions arrived at a negotiating includes important agreements collective labour agreement. This agreement part of this. This is how we can ensure that everyone can form a realistic part of this. This is how we can ensure that future. picture of the future and prepare for that in light of our efforts to arrive at The past year was quite eventful, particularly process resulted in various employee a new collective labour agreement. This The market in which Holland Casino operates is very dynamic. High levels The market in which Holland Casino operates will be essential if we are to remain of flexibility, adaptability and innovation with our employees to make successful in the future. We maintain a dialogue engaged and connected. sure we keep each other informed and remain and trade union is an essential Effective cooperation with the works council level of hospitality if we perform optimally, with healthy, engaged and highlyoptimally, hospitality if we perform level of development of is why we invest continuously in the skilled employees. This attach a great we devote attention to their health and our employees, why to a safe working environment. deal of importance Hospitality, attention and personal contacts are all high priorities for Holland and personal contacts are all high priorities Hospitality, attention ourselves, our employees that we can differentiate Casino. It is thanks to possible We can only offer our guests the highest now and in the future. Our people Our
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2,519 1,023 1,378 1,898 1,543
44 869 153 2016 2017 2,708 1,136 1,541 2,005 1,694 EMPLOYEES (in fte) employees Total age (in years) Average full time Male employees part time Male employees male employees Total full time employees Female part time employees Female employees female Total retention of professional skills and talent development. In 2017, we retention of professional skills and talent Holland Casino as an devoted considerable attention to positioning employer brand, via the development and deployment of various online and offline materials for labour market communications and other measures. When we recruit new talents, we don’t just assess whether people When we recruit new talents, we don’t just also assess whether they fit have the qualities we are looking for, we to take and maintain a top into our organisational culture. We want recruitment, in-house position in the casino market with targeted engagement of employees, training and education, attention for the Amsterdam West. Until the opening of that casino, these employees Amsterdam West. Until the opening of that able to place the are working at other casinos. We were also in Groningen elsewhere employees of the burned-down casino until that situation is resolved. The number of employees at Holland Casino increased to 3,699 in 2017.The number of employees at Holland Casino than 200 new employeesWe have now recruited and trained more the new Holland Casino in in preparation for the planned opening of
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS OUR PEOPLE OUR 62 - - - Holland Casino invests in the development of leadership skills within the Holland Casino invests in the development opportunity to continue to develop organisation and offers its employees the we launched the second edition of their talents and careers. In October 2017, Holland Casino’s strategy the Management Development (MD) programme. managers are focal points in this and the skills we expect from our future programme. The programme comprises three intensive four-month modules. In addition to the training course, all participating managers receive support in the form of individual coaching during the programme. lematic behaviour. The basic training course is compulsory for all employees. basic training course is compulsory lematic behaviour. The revised the basic as an e-learning module. In 2017, we The course is available of gambling devotes extra attention to the prevention course and this now basic course, themselves. In addition to the addiction among employees employees also Gaming department managers and Security & Responsible about the training courses. You will find more information take supplementary 53 through Policy in the chapter ‘Our guests’ on pages Responsible Gaming 56. Anti-money laundering policy and financing of terrorism Pursuant to the prevention of money-laundering responsibility, Holland Casino Act (Wwft), but also on account of our social policy training. All employ provides employees with anti-money laundering course in the form of an e-learning ees take the basic anti-money laundering to reflect changes in legislation. module. This module was amended in 2017 supplementary training courses and Employees in specific positions also take of the policy, such as client investi attend meetings that explore the themes gations, in more detail. Management Development programme Responsible Gaming Policy Gaming Policy Responsible Policy (Preventiebeleid Responsible Gaming developed its Holland Casino care organisations. with Dutch addiction - PBK) in cooperation Kansspelen around gambling insight into the problems course provides The PBK training prob of addictive or in the early recognition and trains employees addiction - - - have hospitality trainers to keep the subject and the theory acquired alive have hospitality trainers to keep the subject and top of mind in our casinos. the highest possible level of hospitality. Every casino has its own hospitality the highest possible level of hospitality. Every the HEP (Hoffelijkheid, Emotie en training process, which is used to introduce and pro-activeness. Managers Pro-activiteit) theory of cordiality, emotion hospitality course, which combines in all casinos have followed the two-day knowledge gained. All casinos also theory and learning how to transfer the access to a personal budget of EUR 500 per year, which they can use or save access to a personal budget of EUR 500 up at their own discretion. Hospitality play a crucial role in realising Cordiality, social skills and service-mindedness courses. We developed and implemented new training products togeth courses. We developed and implemented these changes, the training er with employees from the casinos. Following which incorporate both online courses are now blended learning processes, all existing specialist courses. and offline learning. We will eventually renew labour agreement, employees have In addition, as part of the new collective training modules in areas such as communications, security, management, such as communications, security, training modules in areas media. MS Office and social education Training courses and take various career at Holland Casino, employees will In the course of their specialist training In 2017, we renewed a number of specialist training courses. ture employees are the best in their profession. Holland Casino ensures our Casino ensures their profession. Holland are the best in ture employees offers a development and opportunities for are offered sufficient employees education and devel training courses, of e-learning modules, broad range in the field of In addition to sector specific education opment programmes. offers generic and services, Holland Casino also table games, slot machines Growth and development development Growth and our current and fu to ensure that in the future of our people We invest
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS OUR PEOPLE OUR 63 investigated a total of 54 integrity issues. investigated a total of 54 integrity issues. our employees receive continuous training and education in how to provide continuous training and education in our employees receive department The Security & Responsible Gaming games safely and responsibly. and the in this via permanent camera supervision plays an important role staff on the floor. presence of security s Integrity hotline and Complaint committee Confidential advisers, at every location appointed certified confidential advisers Holland Casino has of inappropriate with advice and guidance in the event to provide employees behaviour and integrity issues. the casinos and information about The confidential advisers are known at is available on our intranet and integrity issues and inappropriate behaviour and the head office. in the form of a brochure at all our casinos committee for inappropriate We have an Integrity hotline, a complaints of integrity issues (Commissie behaviour and a committee for the reporting has an external chairman. Melden Integriteitskwesties). The latter committee with one report. The complaints In 2017, the committee received and dealt and the integrity hotline did not committee for inappropriate behaviour & Responsible Gaming department receive any reports in 2017. The Security Safety and integrity integrity Safety and and pleasant working importance to a safe attaches great Holland Casino casinos the of one in work employees Whether employees. its for environment have comfortable. We should feel safe and office, everyone or at the head And employees. procedures for (temporary) and hiring thorough selection -
were open to employees. These included a six-day cycling tour taking in all were open to employees. These included took part in a running event in En our casinos. And around 150 employees national golf championship was schede, while the nationwide Holland Casino once again a resounding success. (Ontspanning). Examples of initiatives we developed in 2017 were drives to (Ontspanning). Examples of initiatives we meals during night shifts, making stop smoking together, offering free healthy locally. fruit available and playing sports together sports activities in 2017 that Holland Casino organised various nationwide As in 2016, last year we supported various BRAVO initiatives to encourage As in 2016, last year we supported various is an abbreviation that stands efforts to remain healthy, fit and vital. BRAVO (Roken), moderate alcohol for more exercise (Beweging), no smoking and sufficient relaxation consumption (Alcohol), healthy diet (Voeding) Healthy and vital employees employees Healthy and vital who enjoy strive for healthy and vital employees At Holland Casino, we in 2017. we once again focused on this subject coming to work and realising our goal was at 3.7%. Although we fell just short of Absenteeism in 2017 2016 (3.5%). was once again low in 2017, as it was in of 3.5%, absenteeism development. From a large group of candidates, we made a selection and made a selection of candidates, we From a large group development. step who want to take the groups: employees people into two divided these who want to be prepared and employees management position towards a be admitted casino manager. High potentials can for the role of (assistant) in early 2018. any time. The programme is set to start to the programme at We have also developed a new initiative on the basis of an evaluation of of an evaluation initiative on the basis developed a new We have also talent development with management which combines the MD programme,
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49 3,392 3,441 56 2017 2016 3,643 3,699 EMPLOYEES cao Employees HAY Employees (headcount) employees Total with the executive of the Holland Casino pension foundation, we concluded with the executive of the Holland Casino to transfer to another pension that it was in the interest of the participants the scheme to Stap Algemeen company. As of 1 July 2017, we transferred fund founded by pension provider Pensioenfonds. Stap is a general pension TKP and insurance firm Aegon. leave days and flexible working. leave days and flexible Performance-related bonus (RAU) in 2016, we were also able toThanks to the solid financial results we recorded 2017. The pay-out for 2016 was 3.5 %pay out the performance-based bonus in in the collective labour(including a back-payment of 1.0 %, as agreed 3.6 million. agreement) and came in at a total of EUR Pension of our pension scheme. Together We have completed our strategic review The senior staff scheme will be changed into a scheme that targets long-term changed into a scheme staff scheme will be The senior of our the healthy ageing to take into account This enables us employability. will in the future. We also remains affordable while the scheme employees, and career development in job mobility and intensive investments also make employability, generation pact, sustainable agreement on a have reached
average collective labour agreement wage rise of the preceding year average collective labour agreement wage (CBS standard). A one-off payment for 2016 of 3.5% (plus 1.0% additional performance- A one-off payment for 2016 of 3.5% (plus related bonus); and 2018; A structural raise of 2.0% per year for 2017 the the years 2019/2020 by An increase in wages as of 1 January for The agreement also includes a commitment that there will be no forced The agreement also includes a commitment is valid (excluding pressing redundancies during the period the agreement economic circumstances and previously announced measures). ◊ ◊ The new collective labour agreement is valid for five years, from January 2016 The new collective labour agreement is following salary agreements: through December 2020, and contains the ◊ agreements for the future. With the broad package of measures it covers, agreements for the future. With the broad for its employees in sustainable Holland Casino wants to embed appreciation At the same time, the agreement and modern labour terms and conditions. Casino will encounter in the coming takes into account the changes Holland period. unions on a new five-year collective labour agreement. During the period of collective labour agreement. During unions on a new five-year conscientiously Casino kept its employees as fully and negotiations, Holland information labour agreement page on our intranet, informed, via a collective round-table meetings. videos and talks during down clear with the new agreement, which lays Holland Casino is pleased In May 2016, talks began between Holland Casino and the trade unions to and the trade unions Holland Casino talks began between In May 2016, would agreement that collective labour sustainable and modern arrive at a and After several intensive the years to come. responsible basis for provide a and work of talks, and a large number of staff protests constructive periods with the trade we reached a negotiating agreement stoppages, in June 2017 Labour terms and conditions and conditions Labour terms labour agreement Collective
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with the exception of Leeuwarden; with the exception of gambling dependency; B.V. as of 2018. Extension of opening hours by one hour on Sylvester night in all casinos all hours by one hour on Sylvester night in Extension of opening policy; Change to the appointments policy; Management Development and of policy relating to drugs, medications Change to and adoption Adoption roster manual. Appointment Ruud Bergervoet as CFO; Support Acquisition of control of part of Gaming ◊ ◊ ◊ ◊ ◊ Positive recommendation: ◊ ◊ recommendations in 2017. The works council did not issue any negative In 2017, the works council approved and/or attached a positive recommen and/or attached works council approved In 2017, the requests: respect to the following dation with Approval:
there was a hearing before the Enterprise Chamber on 1 December 2016. Chamber on 1 December 2016. there was a hearing before the Enterprise Casino in this matter on 3 February The Chamber ruled in favour of Holland an appeal with the Dutch Supreme 2017. The works council has since lodged annual report, a ruling from the Court. At the time of publication of this 2018. Supreme Court was expected on 1 June included the liberalisation of the gaming market, the change in legal form in legal form of the gaming market, the change included the liberalisation of the a public limited company and the transfer from a foundation to a new pension provider. pension scheme to in 2016 with recommendation from the OR issued Following the negative company, from foundation to a public limited respect to the transition 2017. The chairman of the Executive Board of Holland Casino is a discussion Casino is a discussion Board of Holland of the Executive 2017. The chairman all of the formal council and attended talks with the works partner in regular informal talks council also held meetings. The works consultation the works In addition to the subjects put before with the Executive Board. also or approval, the agenda of the meetings council for their advice The works council council The works consultation meetings in times for formal council (OR) met five The works
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS BACK TO GRONINGEN NIENKE WILDEMAN AND WIM STOPPELS BACK TO GRONINGEN TO BACK 67
“ you have. You have to be flexible and make do with what Waitress Holland Casino Groningen Nienke Wildeman “
“When I woke up I looked at my phone at my phone “When I woke up I looked “Slowly but surely, you realise the impact of “I didn’t. I had to process it all first.” “I didn’t. I had to process it all first.” “It was a shock. During the meeting in the to be flexible and make do with what you have.to be flexible and make do with what you a halfI am now working in Enschede. The one and have tohour travel time is something you simply expensesget used to. Thankfully, we get good travel and you can stay in a hotel after a late shift.” Comfort Comfort Nienke: 150 messages, so I knew and saw more than The casino was on fire. something was wrong. thing was that there were The most important course. During the day, no people inside, of messages with colleagues I exchanged a lot of for employees that and there was a meeting evening.” Wim: evening, our CEO Erwin van Lambaart immediately was very said everyone would keep their job. That reassuring. When you work for Holland Casino the there is not always another casino around corner. I did immediately think of Leeuwarden.” Nienke: Opportunities too Nienke: You havethe disappearance of your place of work.
“That’s exactly what you “That’s exactly what you
Wim: “I often hear people say about Wim: ‘that “I often hear people say about Wim: ‘that “Our work requires that you have good Nienke: like dealer is so much fun and so friendly.’ Guests to sit at his table.” do this for.” to be something of a chameleon.” Wim has been ato be something of a chameleon.” Wim has decidedealer at Holland Casino for 24 years. “I can’t surewhether people win or lose, but I can make they have a great evening.” sector as a child. Working with people is my favourite part of the job.” Wim: havepeople skills. Every person is different, so you You have to be a chameleon You have to be a chameleon at HollandNienke Wildeman has worked as a waiter roadsideCasino for three years. “My parents had a restaurant so I got to know the Food & Beverage work disappears from one day to the next? one day to the next? work disappears from to waiter Nienke Wildeman One thing was clear we will be back in and dealer Wim Stoppels: time, they are being Groningen. Until that at a different casino. flexible and working On Sunday 27 August, a fire of unknown origins On Sunday 27 August, Casino building in destroyed the Holland it mean if your place of Groningen. What does Back to Groningen to Back
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS BACK TO GRONINGEN TO BACK 68 “
Regular guests from from Regular guests Wim Stoppels Wim
Dealer Holland Casino Groningen Dealer Holland Casino “ faces in Leeuwarden. Groningen like to see familiar to see familiar Groningen like “We are in temporary spots at the moment, “We are in temporary spots at the moment, We are coming back to Groningen We are coming back to Groningen Wim: but I think we will all want to return to Groningen offers as soon as possible. A new building also for all new opportunities. And an opening party our guests!” are Wim and Nienke are both very clear: “We coming back to Groningen.”
“I’ve travelled on the “I’ve travelled on the Wim: “Some of the regular “Some of the regular Nienke: “Some regular guests who are missing their who are missing their “Some regular guests Casino has extended the opening hours in in Casino has extended the opening hours Leeuwarden, added an extra bar and extra gaming tables. bus as a travel guide a few times already. bus as a travel guide a few times already. they The guests like to see familiar faces and really also ask about the members of staff. They are very involved with the staff.” To provide optimum service to the extra guests, Holland Enschede at the moment.” Enschede at the moment.” a Holland Casino Groningen guests can use to complementary shuttle bus service to travel Leeuwarden and back. Wim: evening out are now travelling to Leeuwarden. in Before Holland Casino opened its doors Leeuwarden, people would travel from Leeuwarden to Groningen.” to guests in Groningen are also travelling the regular staff at Leeuwarden the chance to lookthe regular staff at Leeuwarden my lucky Aladdin pin, as it waselsewhere. I did lose in my locker.” Regular guests “I like checking out the different casinos and so I out the different “I like checking casinos in the past,to some of the other had been the like. This kind of situationfor special events and The arrival of a largealso offers opportunities. from Groningen also gavenumber of employees Wim is a dealer in Leeuwarden at the moment: in Leeuwarden Wim is a dealer
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excellent manner. Michel Weijers, Managing Director C2C ExpoLAB Michel Weijers, Managing Director C2C WC2C ExpoLAB is very pleased that Holland Casino has decided WC2C ExpoLAB is very pleased that Holland
“ casino in Venlo in a highly sustainable way. How the cradle to cradle casino in Venlo in a highly sustainable als and health are intertwined with spectacular architecture in a most als and health are intertwined with spectacular to embrace the ambition to design and realise the building of the new to embrace the ambition to design and Holland Casino, but also its guests, its employees and the city of Venlo Holland Casino, but also its guests, its selection of the design and architects. Ultimately, this decision will give selection of the design and architects. principles are expressed in the building played an important role in the principles are expressed in the building a building in which sustainable principles in the field of energy, materi a building in which sustainable principles Every location has an active waste-separation policy. Special waste disposal active waste-separation policy. Special Every location has an purpose. all casinos and at the head office for that bins are available at and renovation projects Sustainable building projects. report in all building and renovation We budget for a sustainability realising an new-build Holland Casino in Venlo, we are For instance, for the this project, we cost-effective sustainability. As part of adaptive building with is also in line use of rain, wind and sunlight. That are assessing the optimal Venlo municipal authorities. In the with the cradle to cradle principles of the devoting considerable attention to new-build Utrecht casino, we will also be cost-effective sustainability. In our restaurants, we have deliberately chosen a range of quality productsIn our restaurants, we have deliberately chosen put responsible and honest productsfrom A-grade suppliers. These suppliers on the market. We serve primarily seasonal products. In practice In practice of electricity annually and this isIn our casinos, we use an average of 43 GWh consumption, we shut down slotall green energy. In an effort to reduce energy more and more LED lightingmachines after closing time, we are introducing and we are optimising climate control installations. sustainable purchasing policy, which we use to encourage suppliers to make sustainable purchasing policy, which we chain. Holland Casino sustainable choices and thus create a sustainable such as environmental criteria, for each defines specific sustainability criteria, individual purchasing process. Sustainable purchasing Sustainable purchasing impact is found in our supply chain. A considerable part of our environmental services of our suppliers and the That chain includes both the products and our suppliers as partners operations of Holland Casino itself. We consider sustainability front. We have a in the realisation of common goals on the much aware of our role in society and aim to make a positive contribution role in society and aim to make a positive much aware of our the well-being national good causes. We also take to local initiatives and this in the seriously (you can read more about of our guests extremely chapter ‘Our guests’). To minimise our impact on the environment, Holland Casino focuses its on the environment, Holland Casino To minimise our impact products, as operations and Food & Beverage purchasing on sustainable We are also very construction and renovation projects. well as sustainable Our society Our
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS OUR SOCIETY SOCIETY OUR 70
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the school and Holland Casino. Manon Wilbrink-Lommen, Team leader Tourism Zadkine Zadkine likes to engage with reliable partners in the region who Zadkine likes to engage with reliable partners
training course and the company. They enhance each other by training course and the company. They make a high-quality contribution to the training of our students. make a high-quality contribution to the provides both practical lessons and traineeships. It guides young provides both practical lessons and traineeships. and developed and that makes a contribution to the quality of the and developed and that makes a contribution cooperating closely together, always in the interests of the student, cooperating closely together, always in people from students to starter professionals. Talents are discoveredpeople from students to starter professionals. That also includes Holland Casino. Together we developed a course That also includes Holland Casino. Together “ that trains students to become Leisure professionals. Holland Casino that trains students to become Leisure As part of our Risk Assessment and Evaluation Labour Terms and Conditions, and Evaluation Labour Terms As part of our Risk Assessment (sexual) employees whether they have encountered we regularly ask our or managers. or violence from guests, colleagues intimidation, aggression encounter surveys shows that respondents, if they The outcome of these with certain experience such behaviour in the contacts such conduct at all, are targeting takes these reports very seriously. We guests. Holland Casino courses. by providing aggression-prevention training a preventive policy, the resilience of employeesDiscussing the impact of incidents and increasing Our employees greatly are key components of these training courses. appreciate these training courses. We always treat men and women equally and aim for an equal division of for an equal division equally and aim treat men and women We always head office. The division casinos and at our men in teams, in our women and pregnancy, maternity 46%. Policies regarding men 54% and women in 2017 was: our of the law and in line with the provisions leave are defined and parental are dutifully observed. agreement and collective labour
Casino. Our employees act as trainers for the students and share their expertise. their share and students the for trainers as act employees Our Casino. Holland Casino also contributes to the initiative ‘employers go inclusive’ and facilitates the participation of people with limited access to the labour market. We do this carefully and on a small scale and it has proven successful. works council. All parties consult with each other regularly, and Holland Casinoworks council. All parties consult with each council and social partners. aims for effective cooperation with the works schools (MBO). Students can We work actively with local junior vocational opportunity for a job at Hollandenter traineeships and as a result have an matters, social and personnel matters, human rights observance and the matters, social and personnel matters, human fight against corruption and bribery. Social and personnel matters by three trade unions and a Holland Casino employees are represented Directive publication non-financial information Directive publication non-financial of non-financial information, Pursuant to the directive on the publication publish a non-financial statement in certain large companies are obliged to information about environmentaltheir annual reports, including at the very least In addition, from our local bases we also contribute to numerous large and local bases we also contribute to numerous In addition, from our One example in the field of health, sports and education. small local initiatives Daniel den Holland Casino Rotterdam and the is the connection between receives regular financial donations. Hoed cancer clinic, which Casino at World Cup events. The sponsoring helped the team to prepare the team to prepare sponsoring helped World Cup events. The Casino at all the efforts, the events. Despite and participate in qualifying effectively Dutch requirements. The the qualification sadly unable to meet team were in not take part in the Winter Olympics in PyeongChang bobsleigh team did South Korea. Charities and sponsoring and Charities Olympic qualification Casino sponsored the of 2017, Holland In the autumn itself as Team Holland which presented Dutch bobsleigh team, series of the
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There can be no discriminating factors that would give one party more factors that would give one There can be no discriminating and party. Everyone must be treated equally advantages than another the same information. everyone must receive Transparency that is clear in advance, with a clear description Expectations must be Decisions must be made with clear motivation. available to everyone. Proportionality suitability requirements, Technical specifications, grounds for exclusion, relevant and proportionate to the selection and awarding criteria must be size of the contract. Equal treatment Equal treatment ◊ ◊ The Holland Casino purchasing department adheres to the following basic to the following basic department adheres Casino purchasing The Holland purchasing process: which are part of our principles, ◊ - -
Loyalty to Holland Casino; Loyalty to Treat suppliers fairly; Support fair competition; of the profession. Maintain the reputation Holland Casino, its suppliers and their subcontractors. Our approach to sus Holland Casino, its suppliers and their subcontractors. code of conduct, which is in turn tainable purchasing is based on our supplier and internal code of conduct. based on our own Holland Casino core values Holland Casino wants to do business with organisations that have a good Holland Casino wants to do business with by ethical operations, and maintain name and reputation, who set great store continuity of their business. Hol healthy finances to preserve the sustainable a sustainable chain together with its land Casino’s ultimate goal is to realise and services and the operations of partners. This chain includes the products Every Holland Casino employee is responsible for the execution of all their employee is responsible for the execution Every Holland Casino legislation. above guidelines and in line with prevailing actions in line with the and subcontracting chain Safeguarding supply of the Dutch Association of Purchasers. The professional code of Holland code of Holland The professional Association of Purchasers. of the Dutch on four guidelines: Casino focuses I. II. III. IV. Integrity of purchasing of purchasing Integrity code the professional department has signed Casino purchasing The Holland
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS IN CONTROL STATEMENT STATEMENT CONTROL IN 72 Ruud Bergervoet Chief Financial Officer Chairman of the Board Taking into account the above, the Executive Board believes that the internal that the internal the above, the Executive Board believes Taking into account respect to the a reasonable degree of certainty with control systems offer these risks risks and the internal control systems, that financial reporting reporting to an acceptable level and that the financial have been reduced any material inaccuracies. does not therefore contain controls these risks are outlined in The major risks and how Holland Casino main findings of audits (internal more detail on pages 86 through 93. The and the Risk Management Monitor and external), the Letter of Assessment and/or Supervisory Board. have been discussed with the audit committee Hoofddorp, 24 April 2018 The Executive Board Erwin van Lambaart
ng the internal measures (including the internal reporting lines), risk identification, control information & communication control structure and internal controls), and monitoring (including reporting and consultation mechanisms) on the improvement of our (including auditing). We work continuously processes and procedures. organisation’s internal control systems. We have put in place several risk We have put in place several risk organisation’s internal control systems. to underpin our statement. The management and control systems (RCS) are based on the COSO Integrated risk management and control systems and control systems cover all Control Framework. The risk management governance framework (including aspects of internal control, such as the roles and responsibilities and the governance structure, codes of conduct, appropriate accounting policies and making accounting estimates that policies and making accounting appropriate accounting financial statements have been are reasonable in the circumstances. The prepared on the assumption of a going-concern. is also responsible for the effectiveness of the Executive Board The The Holland Casino Executive Board is responsible for the preparation Executive Board is responsible for the The Holland Casino provide of the financial statements, which should and fair presentation preparation of the equity and results, and for the a fair representation and applying This responsibility includes selecting of the annual report. Statement pertaining to the financial to pertaining Statement system control internal and statements In Control Statement Statement In Control
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS GOVERNANCE COMPOSITION OF THE SUPERVISORY BOARD SUPERVISORY THE OF COMPOSITION 74 Mrs. Dekker, Mr. Bröcker, Mr. Roks, Mr. Baud and Mrs. Van Zuijlen. From left to right:
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Ubbo Emmius Fund (Alumni fund University of Groningen) Ubbo Emmius Fund (Alumni fund University Member of the Supervisory Board Urgenda Jury member Family Firms Award Director Fluxys Europe B.V. Director Fluxys Europe de Kuiper Chairman of the Supervisory Board Koninklijke Chairman of the Supervisory Board Bavaria Capital Management Member of the Supervisory Board Teslin Goudse Verzekeringen Chairman of Stichting Administratiekantoor Africa Member of Investment Committee DOB Pigments (Holland Colours) Member of board Stichting Continuïteit Holland II and III Member of Investment Committee Walvis Speelklok Chairman of the Supervisory Board Museum Chairman Executive Board Vice-Chairman Administrative Board and Science Park Chairman of the Supervisory Board Utrecht Philips Lighting Member of the Board Stichting Continuïteit Fonds Member of the Supervisory Board Het Concertgebouw
◊ ◊ ◊ ◊ ◊ ◊ ◊ ◊ P.F. Roks (1954), Nederlands November 2018. on the first general board meeting after 19 Current term expires Other positions ◊ J. W. Baud (1951), Nederlands December 2020. on the first general board meeting after 19 Current term expires Other positions ◊ ◊ ◊ ◊ ◊ ◊ Consultant, coach, moderator Consultant, coach, moderator Director Group Balance Sheet Management A.S.R. Verzekeringen Director Group Balance Sheet Management External Advisor Y Group Capital Allies External Advisor IBS Chairman of the Supervisory Board The Hague & Partners Chairman of the Supervisory Board The Theater Member of the Supervisory Board Het Nationale Theater Member of the Supervisory Board Chassé Member of the Review Committee STIVA Chair ANWB Bondsraad Member of the Supervisory Board Mauritshuis Museum Member of the Supervisory Buruma External Advisor Houthoff N.V. Continuïteit BE Semiconductor Industries Chairman Stichting Winkelfonds Duitsland N.V. Chairman of the Supervisory Board Berlage Chairman of Board Colonial Property Fund
◊ ◊ Other positions Other positions ◊ ◊ ◊ ◊ Other positions Other positions ◊ M.M. van Zuijlen (1967), Nederlands board meeting after 1 June 2019. Current term expires on the first general ◊ ◊ R.E. Dekker AAG (1972), Nederlands board meeting after 1 August 2020. Current term expires on the first general ◊ ◊ ◊ ◊ ◊ W.L.J. Bröcker (1951), Nederlands W.L.J. Bröcker (1951), 1 August 2020. on the first general board meeting after Current term expires Other positions Composition of the Supervisory of the Composition Board
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FOREWORD BY THE CHAIRMAN THE BY FOREWORD 76
successful 2017. Willem Bröcker Chairman of the Supervisory Board management model and the change in pension provider. In addition to the and the change in pension provider. In management model Board, the shareholders and the Supervisory formal discussions between to discuss Ministry had regular informal contacts the Board and the Finance these topics. to full strength and the Supervisory Board were back Both the Executive Board as the guiding Corporate Governance Code acted in 2017. The revised Dutch an internal of the Supervisory Board. Following principle in the functioning year under review, the Supervisory evaluation of its own performance in the party to review the Supervisory Board is planning to appoint an external including the remuneration, Board’s performance next year. The committees, added in 2017, performed as they selection and appointments committee was installed last year and should last year. The privatisation committee potential sale of Holland Casino in focused its attention in particular on the of the gaming market. the context of the proposed liberalisation be on the supervision of the executionIn 2018, the Supervisory Board’s focus will the implementation of the collective of the strategic long-term plan 2020 and positioned for the future and the labour agreement. Holland Casino is well prospects for 2018. We would like Supervisory Board is confident about the for their contribution to a to extend our heartfelt thanks to all the employees
also devoted attention to the developments in the gaming market, including also devoted attention to the developments preparations for the introductionthe two pending draft laws, Holland Casino’s Regulation (GDPR), the risk of the European General Data Protection In addition, the fire at the casino in Groningen obviously had a major impact. In addition, the fire at the casino in Groningen to deal with this situation and Management and employees acted quickly very challenging circumstances. proved themselves resilient in what were everyone involved for their The Supervisory Board would like to compliment under review, the Supervisory Board speedy and resolute actions. In the year One of the most significant results recorded in 2017 was the future-proof One of the most significant results recorded that now runs to 31 December 2020. long-term collective labour agreement Board worked together very closely The Executive Board and the Supervisory on this dossier. strategic long-term plan 2020 and the conversion of Holland Casino from strategic long-term plan 2020 and the conversion (naamloze vennootschap – N.V.). foundation to a public limited company items successfully in the year under The Executive Board dealt with all these review. company for the future. These preparations and the excellent results These preparations and the excellent company for the future. years thereafter. a solid foundation for 2018 and the recorded in 2017 provide and agenda for 2017 included a number of complex The Executive Board the including the new collective labour agreement, long-running dossiers, The Supervisory Board would like to express its admiration for how the would like to express its admiration The Supervisory Board a challenging Holland Casino through what was Executive Board guided preparing the while also making further progress in year on many fronts, Foreword by the Chairman by Foreword
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS SUPERVISORY BOARD REPORT BOARD SUPERVISORY 77
majority stake in the maintenance activities of Gaming Support and the majority stake in the maintenance activities pension fund. Committees the audit Supervisory Board has three committees: The Holland Casino and selection and appointments committee committee, the remuneration, described in the The tasks of the committees are the privatisation committee. The committees of the Supervisory Board. by-laws of the respective Board as a and provide the Supervisory committees meet independently report on their their specific fields. The committees whole with support in Supervisory meetings of the Supervisory Board. The meetings during the these reports. The Holland Casino Board makes its decisions on the basis of consult with each other outside the Executive Board and the committees also scheduled meetings. Audit committee Dekker (Chairman) and Mrs. Van The audit committee members are Mrs. Supervisory Board with support in Zuijlen. The audit committee provides the risk management and control the supervision of Holland Casino’s internal 2017, the committee met four times for systems and the financial reporting. In at these meetings included scheduled meetings. The main topics discussed reports, audit reports, Risk the annual report, the 2018 budget, financial long-term plan and the GDPR Management and Compliance, the strategic the acquisition of a privacy legislation. The committee also discussed
European General Data Protection Regulation (GDPR). Recurring items on the European General Data Protection Regulation company’s financial performance, Supervisory Board’s agenda include the for the financial year ahead. the financial statements and the budget the ongoing legislative changes, the collective labour agreement negotiations,the ongoing legislative changes, the collective of the company’s legal building and renovation projects, the conversion company, the acquisition of a form from a foundation into a public limited majority stake in the maintenance activities of Gaming Support (2018), the of the plan 2020 and the preparations for the introduction long-term strategic Supervisory Board participated in discussions with various stakeholders, Supervisory Board participated in discussions the Executive Board and the including the consultation meeting involving Works Council. of topics at its meetings, including The Supervisory Board discussed a range were held in other locations. The members of the Executive Board and the were held in other locations. The members consulted with each other regularly members of the Supervisory Board also knowledge and expertise. outside the scheduled meetings to exchange consulted with each other in The members of the Supervisory Board also to this, the members of the the absence of the Executive Board. In addition The Board also held a number of conference calls during which minutes a number of conference calls during The Board also held were taken. Four of the in the presence of the Executive Board. The meetings were held while two at the Holland Casino head office in Hoofddorp, meetings were held The Supervisory Board met six times in 2017 for scheduled meetings. met six times in 2017 for scheduled The Supervisory Board November held in February, April, June, September, The meetings were all the meetings. the required quorum was present for and December, and Supervisory Report Board
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the Executive Board was once again at full strength. the Executive Board members and Board also had its full complement of In 2017, the Supervisory are women at year-end 2017. Two of the members consisted of five members various back are men. The five members represent and the remaining three members will and expertise. Any appointment of new grounds, experience Board, in line added value of diversity in the Supervisory take into account the the Dutch Corporate Governance Code. with the provisions of Financial reporting report and the financial statementsThe Supervisory Board discussed the annual the auditor. On 24 April 2018, the for 2017 with the Executive Board and with including the unqualified Executive Board shared the financial statements the Finance Minister. On 24 April auditor’s report and the annual report with statements. The unqualified auditor’s 2018, the minister adopted the financial pages 143 through 149. The report is included in this annual report on with Holland Casino’s articles of Supervisory Board proposes that, in line for its management and that association, the Executive Board be discharged their supervision of same. the Supervisory Board be discharged for Composition, appointments and re-appointments and re-appointments appointments Composition, as its new Chief appointed Ruud Bergervoet Holland Casino In March 2017, death vacant due to the CFO position had fallen (CFO). The Financial Officer appointment of Ruud 2016. Following the Kleijn in December of Anita de Board Erwin van Lambaart, of the Executive who joined Chairman Bergervoet,
In 2017, this committee met three times and discussed the liberalisation of the In 2017, this committee met three times and move for Holland Casino. gaming market and consequences of this Privatisation committee committee, which has been In 2017, Holland Casino set up the privatisation Board on the proposed assigned the task of advising the Supervisory of the gaming market. Mr. Bröcker privatisation as a result of the liberalisation of the privatisation committee. (Chairman) and Mr. Baud are the members remuneration of the individual members of the Executive Board. The committee members of the Executive Board. remuneration of the individual of theon nominations for the appointment of members also provides advice of Ruudcommittee met twice in 2017. The appointment Executive Board. This members the remuneration of the two Executive Board Bergervoet as CFO and meetings. were discussed at the the selection and appointments committee. The members of the combined committee. The members and appointments the selection and Mr. Roks. are Mr. Baud (Chairman) committee is to advise the and appointments committee’s task The remuneration, selection structure and the the remuneration policy, the remuneration Supervisory Board on Remuneration, selection and appointments committee selection and Remuneration, committee and the remuneration Supervisory Board combined In 2017, the
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS CORPORATE GOVERNANCE CORPORATE 79
Gaming Act and the Dutch Casino Games decree. Gaming Act and the Dutch Casino Games The Dutch government’s state shareholdings to policy is geared towards making a contribution This the sound governance of state shareholdings. all state policy also includes the organisation of end, shareholdings on an equal basis. To that articles the government uses the same standard various of association, so that the powers of the in corporate bodies are recorded unequivocally, the interests of sound corporate governance. an This policy is based on the legal form of The state equity company with a two-tier regime. Casino exercises its shareholder rights in Holland the 2013 N.V. in accordance with the provisions of policy paper on state shareholdings. The Executive Board manages the company and manages the company and The Executive Board of a Supervisory is subject to the supervision the Supervisory Board are Board. Members of Minister. appointed by the Finance the Finance Ministry has As 100% shareholder, powers of appointment approval rights and the company’s articles of that are laid down in Casino is subject to the association. Holland and supervision of the Dutch Gaming Commission the Dutch operates within the legal parameters of
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payments on the basis of the law, the articles of of payments on the basis of the law, the articles context. association and other agreements in this of The Finance minister determines the amount proposal the company’s equity on the basis of a from the Supervisory Board. Holland Casino has a so-called two-tier a so-called two-tier Holland Casino has which means the governance structure, written for a one-tier provisions of the Code do not apply. governance structure Governance structure founded in 1976 as a foun Holland Casino was as the only government- dation and designated casino gaming in the licensed provider of Netherlands. to On 1 May 2017, the foundation was converted became a public limited company, and the state was to the sole shareholder. The reason for this line with bring the legal form of Holland Casino in other state shareholdings. forThe Justice and Security Ministry is responsible policy matters. The Finance Ministry is responsible profit for the governance of the company. The is remitted to the state in the form of dividend
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Supervisory Board by-laws were also amended. withThese are now as much as possible in line the Code. 1 May 2017, the Nationale Stichting tot Exploitatie Casino)van Casinospelen in Nederland (Holland companywas converted to a public limited liability with the(naamloze vennootschap – N.V.). In line Board andnew articles of association, the Executive up specifically for listed companies. whereIn this context, we refer you to our website, accor we report on compliance with this code in Ondance with the ‘comply or explain’ principle. Holland Casino has chosen to comply with theHolland Casino has chosen Code”)Dutch Corporate Governance Code (“the and has implemented all the relevant provisions a listedof the Code. Since Holland Casino is not drawncompany, it does not apply any provisions of all of our stakeholders at all times. Our at all times. Our of all of our stakeholders is based on principles corporate governance integrity and clear such as transparency, communications. Corporate governance Corporate we recognise the As a professional company, corporate governance. Our importance of good into account the interests objective is to take
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Ruud Bergervoet joined Holland Casino as ChiefRuud Bergervoet joined Holland Casino as Prior toFinancial Officer (CFO) on 21 March 2017. of (adjoining Holland Casino, he held a number cuminterim) positions as CFO and graduated Universitylaude with an Economics degree from the of Amsterdam. &Responsibilities: Finance & Control, IT, Security Responsible Gaming, Legal & Compliance. Supervisory Board of The Supervisory Board supervises the policies provides the Holland Casino Executive Board and it with advice. The Supervisory Board supervises and advises the Executive Board in the execution of its tasks and does so from a position of independence. This independent position is in accordance with best-practice provision III.2.2 of of the Executive Board of Holland Casino on 7 Casino on 7 Board of Holland of the Executive Casino, he Prior to joining Holland March 2016. industry the international hospitality worked in and media theatre, entertainment and in the at The Hague his education sectors. Following Lambaart spent the first Hotel School, Erwin van working in the international 14 years of his career hotel sector. Gaming & Services, Human Responsibilities: Audit, & E-Commerce, Corporate Resources, Marketing Communications, Operations. Chief Financial Officer R. Bergervoet (1963)
Dutch Advertising Code for alcoholic drinks; Code for alcoholic Dutch Advertising connection ordinances (in General local licences). with operating
two-man Executive Board with Ruud Bergervoet. two-man Executive Board with Ruud Bergervoet. for a Executive Board members are appointed eligible term of four years, after which they are for re-appointment. Chairman of the Executive Board E. van Lambaart (1963) Erwin van Lambaart was appointed as Chairman Holland Casino’s Executive Board is responsible for Holland Casino’s Executive of Holland Casino the day-to-day management company’s strategy and and for defining the articles of association policies. Holland Casino’s by-laws include a more and the Executive Board of the Executive Board’s detailed description and operating methods. responsibilities, tasks and a Holland Casino has an Executive Board Team Management Team. The Management consists of staff department directors and and the regional directors. The Executive Board Management Team meet every two weeks, to reach primarily to discuss strategic topics and decisions on same. In accordance with the articles of association, of the Supervisory Board determines the number of the Executive Board members. The Chairman the Executive Board, Erwin van Lambaart, forms ◊ ◊ BoardThe Executive
agencies Act; Slot machine decree 2000; Slot machine regulations 2000; General Data Protection Regulation (this replaced the Wbp as of 25 May 2016); Gaming Tax Act; ECB decree on the authenticity and fitness checking and recirculation of euro banknotes (ECB/2010/14); Whistleblower protection Act; Private security firms and detective financing of terrorism Act (Wwft); financing of terrorism Act (Wbp); Personal Data Protection Act; Working conditions Working hours Act; of Code of conduct for promotional games Dutch Advertising Code; Decree on Gaming advertising and addiction prevention; Regulation on Gaming advertising and addiction prevention; Gaming Act (Wok); Gaming Act Decree; Casino Games Act (Wft); Financial Supervision and Prevention of money-laundering Sanctions Act; Act; Licensing and Catering
◊ ◊ ◊ ◊ ◊ ◊ ◊ ◊ ◊ chance; ◊ ◊ ◊ ◊ ◊ ◊ ◊ following legislation (list is not exhaustive): (list is not following legislation ◊ ◊ ◊ ◊ Laws and regulationsLaws and to the is currently subject Holland Casino
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS CORPORATE GOVERNANCE CORPORATE 81
financial targets and may include both short-term financial targets and may include both targets. For 2017, the medium to long-term and was ratio of financial and non-financial targets the set at 50/50. The financial targets includes extra realisation of the budgeted result before ordinary income and expenses. The non-financial social component included personal targets and targets (such as guest and employee satisfaction, compliance and CSR). so-calledThe variable remuneration is subject to a claw-back clause. This gives the Supervisory Board the power to reclaim the variable payment remuneration, not pay out or delay the that of said variable remuneration, in the event the variable remuneration was awarded on the basis of incorrect (financial) data or incorrect information on the realisation of the objectives on a variable component. In accordance with the with the component. In accordance a variable policy, Casino Remuneration current Holland income of the the fixed and variable the sum of (CEO) has of the Executive Board Chairman The premise for at EUR 296,000. been maximised income of the financial the total maximum 80-90% of the total director (CFO) is between variable component income of the CEO. The to a both the CEO and the CFO amounts for their fixed income. The maximum of 20% of remuneration to be paid level of the variable realisation of targets set in out depends on the Board. These targets advance by the Supervisory contribute to the realisation of various objectives. and non- They have been divided into financial
Remuneration the Each year, the Supervisory Board determines line with remuneration of the Executive Board, in which is the Holland Casino Remuneration policy, for state based on the Remuneration framework shareholdings and the 2013 Policy paper on state shareholdings. The remuneration for the members of the Executive Board consists of a fixed and stipulate that the external auditor should attend auditor should attend stipulate that the external of the audit committee per at least one meeting two meetings of the year. In 2017, KPMG attended audit committee. Code of conduct an internal code of conduct Holland Casino has of employees at every that governs the behaviour is level of the organisation. The code of conduct made included in the staff manual and has been addition, available on Holland Casino’s intranet. In the Holland Casino has set requirements for suppliers.services and products of its partners and include conditions related requirements These of to the fair and ethical sourcing or production Casino food items and other products. Holland assesses employees and suppliers for integrity or and trustworthiness before they are appointed selected. External auditor auditor since been Holland Casino’s KPMG has reports to the year 2016. KPMG the financial Board. Board and to the Supervisory Executive audit committee of Holland Casino’s The by-laws
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the Dutch Civil Code. We believe that the current current the Dutch Civil Code. We believe that the and composition is in line with the diversity policy today’s requirements. a balanced division of men and women in the in the a balanced division of men and women and Executive Board (and Management team) the the Supervisory Board and strives to meet guideline ensuing from the Dutch Management 2:166 of and Supervision Act, included in article In line with the Code, Holland Casino applies In line with the Code, Holland Casino applies a diversity policy drawn up by the Supervisory Board, Board for the composition of the Executive the Supervisory Board and the committees. of Holland Casino recognises the importance the individual members of the Executive Board, andthe individual members of the Executive Board, does so in the absence of the Executive Board. Composition Executive Board and Supervisory Board appointed by the Finance Minister after discussion appointed by the Finance with the Supervisory Board of said appointments with the Justice and and after consultation once a year, the SupervisorySecurity Ministry. At least performance, the perfor Board discusses its own committees and that ofmance of the separate and the remaining three were men. Mr. W.L.J. men. Mr. W.L.J. three were and the remaining the Supervisory been Chairman of Bröcker has year-end 2016. Board since Supervisory board are The members of the the Code. At year-end 2017, the Supervisory BoardAt year-end 2017, the the Code. were women members. Two of these had five
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS CORPORATE GOVERNANCE CORPORATE 82
Regulation (GDPR) has since come into force has since come into force Regulation (GDPR) until 25 May 2018 to adjust and companies have Holland Casino is currently their policies to same. of the GDPR. preparing for the introduction Prevention of money- Compliance with the financing of terrorism Act,laundering and the Act and theThe Financial Supervision Sanctions Act As per 1 January 2016, the supervision of compliance with the Prevention of money- Act laundering and the financing of terrorism Central (Wwft) was transferred from the Dutch Bank (DNB) to the Dutch Gaming Commission. for The Dutch Central Bank is still responsible Financial the supervision of compliance with the Act. Supervision Act (Wft) and the Sanctions In connection with this change in supervision, Gaming Holland Casino now provides the Dutch Commission with an annual Wwft report. processing. These legal criteria are laid down in are laid down in These legal criteria processing. and other laws and Data Protection Act the Dutch the protection of The laws governing regulations. have been in the European Union private data Protection the General Data revised and
ration for 2017 in the financial statements ration for 2017 in the financial statements Because we attach enormous importance to the to the Because we attach enormous importance make privacy of our guests and employees, we sure that all administrative processes involving the personal data of guests and employees meet the legal criteria for proper and careful data Privacy Holland Casino requires access to the personal tasks data of its guests in order to carry out its Policy. in the context of the Responsible Gaming paid employee (the CEO) to the median total total paid employee (the CEO) to the median 4.9 remuneration of all other employees was ratio in 2017 (2016: 4.9). The calculation of this of included the fixed and variable components total remuneration, as well as pension expenses You will find a detailed explanation of the You will find a detailed explanation of the remune on pages 138 and 139 of this annual report. highest The ratio of the total remuneration of the The shareholder determines the remuneration the remuneration The shareholder determines The members of the of the Supervisory Board. reimbursed for any Supervisory Board are they may incur. reasonable expenses was made dependent. In addition to this, the to this, the dependent. In addition was made to adjust the Board is authorised Supervisory of same is if the payment variable remuneration according to standards deemed unacceptable fairness. of reasonableness and which the remunerations is based or regarding or regarding remunerations is based which the remuneration on which the the circumstances
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 83
Risk assessment Response Context Risk appetite People & Culture Foundation Strategy and goals Mission and core values Risk management process Expectations of guests and other stakeholders Reporting Monitoring The risks and the effective operation of risk operation of risk The risks and the effective and status and controls are then monitored, drawn up on a quarterly progress reports are risk appetite determines basis. Holland Casino’s prepared to run risks and on which fronts we are to what extent. Holland Casino’s The figure below outlines integrated risk management system. -
projects. de The risk management process has been on a signed to identify, monitor and assess risks and what continuous basis and to weigh whether measures to take to mitigate those risks. Holland Casino’s integrated risk management risk management Holland Casino’s integrated on COSO and Cobit) system, which is based goals. This system enables helps us to realise our much more effectively when us to weigh matters decisions by identifying we are making important and making them any risks and opportunities to control risks in our day- explicit. We are able in the execution of to-day operations and projects both comprehensively and efficiently, Holland using a set of interrelated measures. At ‘hard side’ Casino, our attention goes beyond the of risk management (the processes, procedures such and reporting), to the so-called ‘soft side’, as risk awareness, communications and reciprocal trust. Risk management process the risks Integrated risk management looks at all both within the entire organisation. This includes risks, strategic risks and tactical and operational in casinos, within departments or in individual
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our obligations on the responsible gaming front, front, our obligations on the responsible gaming to have to comply with laws and regulations and our house in order internally. In addition to our mission and strategy, we put a we put a In addition to our mission and strategy, high priority on the expectations and demands guests, of our most important stakeholders. Our us to regulators and society as a whole expect to meet provide a reliable gaming environment, and anticipate and respond effectively and in a and in a and anticipate and respond effectively timely fashion to developments. When determining into our strategy and setting goals, we take appetite. account opportunities, risks and our risk Taking calculated risks is an inherent part of our of our Taking calculated risks is an inherent part value. activities and how Holland Casino creates is there The goal of integrated risk management fore not to exclude all risks. We make deliberate to run, choices in terms of the risks we are willing gaming markets and the proposed liberalisation gaming markets and market as a whole, which of the Dutch gaming but also entail a will create opportunities number of risks. The gaming market and Holland Casino are and Holland Casino are The gaming market of profound change. going through a period developments in the remote This includes both Risk management Risk
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 84
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ment and monitors whether parties monitors whether parties ment and more critical or relevant controls; areas with limited impact or increase the materiality indication; controls at several departments; automated controls; more efficient, effective and/or more reliable; Relevance: reduce the number of controls to to Relevance: reduce the number of controls Materiality: reduce number of controls in Frequency: change frequency of less critical same Eliminating double controls: remove the Automation: replace manual controls with them Efficiency: structure processes to make False security: remove unnecessary controls.
lined and more efficient process that will enable will enable lined and more efficient process that followingus to save time and costs. We applied the criteria to this improvement process: ◊ ◊ ◊ controls; ◊ ◊ ◊ ◊ risk-owners and the Executive Board on the main Board on the main and the Executive risk-owners of defence, which The second line strategic risks. and Compliance Risk Management includes the line supports and advises departments, manage responsibilities. The third actively exercise their Audit, audits and assesses line of defence, Internal between the first and whether the interaction properly. second lines is functioning even further, in 2017 To improve risk controls a critical review of the Holland Casino conducted re-assessed the controls current controls. We control and looked at ways to further optimise stream measures. The result of this review is a
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management system to monitor risks and this this management system to monitor risks and The monitors the main risks at operational level. management responsible is informed immediately in the event of any findings following the processing of an audit. In addition, Risk Management submits quarterly reports - via a ‘traffic light system’ - to the to respond effectively and in a timely fashion to to respond effectively risks. developments that entail of the integrated As part of the implementation in 2017 Risk Manage risk management system, sessions for senior and ment organised internal employees to increase risk middle management awareness. Risk controls of the Holland Casino controls risks on the basis the ‘three lines of defence’ model. In this model, first line is responsible for the design, effectuation and execution of primary and support processes and related control measures (hereafter: for the controls). The first line is also responsible and control of the risks, compliance with laws and regulations relevant to these processes the continuous monitoring of these processes a risk and controls. Holland Casino has set up revised and revitalised its tactical and operational revitalised its tactical revised and The new basis of its risk appetite. risks on the system integrated risk management future-proof appetite and helps the defined risk is in line with effectively and risks efficiently and us to control
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In 2017, Holland Casino continued to implement In 2017, Holland Casino continued to implement the integrated risk management system designed in 2016/2017 (on the basis of COSO and Cobit). The company has defined its strategic risks and As from 1 April 2017, the Risk Management de As from 1 April 2017, the Risk Management safeguard partment reports directly to the CFO to March independence more effectively. As of 1 2018, Holland Casino added a second Risk Adviser to the Risk Management department. the integrated risk management system. The Risk the integrated risk management system. Management department plays a coordinating role in the execution of the integrated risk management system. efforts and engagement of every single person efforts and engagement of every single in the organisation and a culture that embodies ethical and risk-aware conduct. for The Executive Board bears final responsibility and regulations. Risk culture culture form the foundation Our people and our management system. of our integrated risk depends on the Successful risk management the company as effectively as possible against possible against as effectively as the company system can Nonetheless, no potential risks. company will certainty that the provide total and financial objectives, nor achieve its strategic or the violation of laws fully prevent loss, fraud Holland Casino strives for the continuous continuous strives for the Holland Casino to safeguard of its processes improvement
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 85
Holland Casino does its utmost to guarantee the the Holland Casino does its utmost to guarantee and is safety of guests and employees at all times front. therefore not prepared to accept risks on this laws Holland Casino also strives to comply with all and regulations that apply to Holland Casino. and Holland Casino has a healthy financial position no outstanding debt. The company is therefore willing to accept financial risks in a responsible manner. EXPLANATION doing business. is an inherent part of Taking risks a responsible is prepared to accept Holland Casino ambitions. in the realisation of its level of risk we offer our guests are Our guests and the services at Holland Casino. Holland always the highest priority a responsible level of Casino is prepared to accept guest experience. risk to create a high-quality of the data of both With respect to the security Holland Casino is not our guests and employees, However, in terms of prepared to take any risks. with existing perceptions and sensitivities associated to the gaming market, Holland Casino is prepared accept a responsible level of risk. Low Extremely low Extremely low Moderate RISK APPETITE Medium Services Reputation Compliance Financial RISK CATEGORY Strategic
category. The company’s risk appetite was category. The company’s risk appetite was has been unchanged from the previous year and set as follows: core values, strategy and the risk profile of of core values, strategy and the risk profile the Holland Casino, and takes into account capacity to mitigate or control risks. risk Holland Casino’s risk appetite differs per appetite and this acts as a guiding principle for as a guiding principle for appetite and this acts to deal efficiently the responsible management is responsible for the with risks. The management risk appetite. implementation of this risk appetite, the Executive When determining the the context, the mission, Board takes into account controls, with the aim of further increasing the aim of further controls, with frequency and reliability. efficiency, Risk appetite defines Holland Casino’s risk The Executive Board In 2018, Holland Casino will look at the possibility of at the possibility of Casino will look In 2018, Holland with automated more manual controls replacing
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 86
Risk is declining Risk is increasing
Impact: low Impact: high STRATEGIC RISKS STRATEGIC STRATEGIC RISKS STRATEGIC B: Modernisation of employment terms and conditions and conditions B: Modernisation of employment terms A: Liberalisation of the gaming market market of the gaming A: Liberalisation lead to a deterioration of its results. The control measure defined our corporate values and we of its organisational culture. For instance, we have clearly Holland Casino invests in the professionalisation other things by actively involving these employees in strategic decision-making. have invested in high potentials, among arket position by Holland Casino’s market position by Finally, we are working on strengthening introduction of a new client loyalty programme. also working on the at improving returns. and targeted investments aimed controlling fixed overheads The risk Casino become a more market and a liberalised gaming market, it is extremely important that Holland To remain successful, in both the existing less competitive and If Holland Casino fails to do this successfully enough this could make the company commercial and competitive organisation. The risk that may offer better and smarter services than competition in the market. Competition the Dutch gaming market will increase The liberalisation of consequently of revenues. could result in loss of market share and Holland Casino. This The control measure differentiator vis-à-vis its competitors. Holland Casino is sees this as a significant in sustainable guest relationships and Holland Casino invests
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 87
Risk is declining Risk is unchanged
Impact: medium Impact: medium STRATEGIC RISKS STRATEGIC STRATEGIC RISKS STRATEGIC D: Large-scale projects C: Future-oriented organisation organisation C: Future-oriented bjectives or the inefficient use of resources and/or the organisation’s capacity. the project objectives or the inefficient use of resources this could lead to the failure to (fully) realise The control measure In addition to this, senior management is projects on the basis of a cost-benefit risk assessment. Holland Casino selects, prioritises and plans safeguards the consistent and effective Holland Casino’s project management office (PMO) intensively involved in all large-scale projects. portfolio. management of projects and the project orate values and we corp instance, we have clearly defined our orate values and we sational culture. For in the professionalisation of its organi Holland Casino invests decision-making. involving these employees in strategic potentials, among other things by actively have invested in high The risk these projects adequately, number of large-scale projects. If the company fails to prioritise and manage Holland Casino is currently running a large The risk important that Holland Casino become a more gaming market, it is extremely in both the existing market and a liberalised To remain successful, could make the company less competitive and fails to do this successfully enough this organisation. If Holland Casino commercial and competitive of its results. lead to a deterioration The control measure
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 88 Risk is unchanged Risk is unchanged Impact: medium Impact: medium SERVICE RISKS SERVICE STRATEGIC RISKS STRATEGIC F: Gaming experience and proposition F: Gaming experience and proposition E: Political developments developments E: Political The risk aligned. If Holland Casino experience, future online and current land-based gaming need to be closely To provide guests with an optimal gaming service levels, which would (including structures, processes and skills) on this front, this could lead to lower fails to prepare its internal organisation disappointing results from the online proposition. in turn result in sub-optimal services and The control measure to both the front-end partner on the development of its online proposition, and devoting equal attention Holland Casino is working with an external the omni-channel strategy it and land-based gaming services. In 2017, Holland Casino continued to develop and back-end of the integrated online team of experts. initiated in 2016 with the help of an international The control measure The control measure has regular consultations with all the stakeholders and regulations front and the company monitors developments on the laws Holland Casino closely to the illegal providers of online gaming. the Remote Gaming Act (Koa) with respect also advocates the enforcement of involved. Holland Casino lobbied for the same rate of a number of members of parliament and other involved parties, has successfully In addition, Holland Casino, together with gaming providers, which has helped to create a level playing field. gaming tax for both online and offline The risk market and the maintenance of a level playing regards to the future situation on the on political developments with Holland Casino is dependent of of the proposed liberalisationthe gaming market. regulations or to the postponement could lead to stricter laws and field. These developments market, online gaming or stricter laws and of the proposed liberalisation of the gaming that lead to the postponement Any political developments results. an impact on Holland Casino’s future regulations could have
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 89 Risk is unchanged Risk is unchanged Risk is unchanged Impact: medium Impact: medium SERVICE RISKS SERVICE SERVICE RISKS SERVICE H: IT infrastructure G: Core group guests G: Core group The control measure n landscape. a future-proof IT architecture and works continuously on the renewal of its applicatio Holland Casino is currently implementing s to gain the loyalty of special concepts to gain the loyalty In 2016, Holland Casino initiated the development in a manner appropriate to them. current and future guests gaming policy. in line with the criteria of our strict responsible All of these initiatives are of course fully of new target groups. The risk is not reliable can lead to lower is crucial to the smooth operation of Holland Casino. An IT infrastructure that A reliable and effective IT infrastructure and/or higher costs. service levels, delays to (innovation) processes The risk The risk to a decline in revenues. decline in this core group could lead a core group of permanent guests. Any Holland Casino has The control measure hos numerous initiatives in the fields ofpitality and marketing. of measures, including its guest relationships via a range Holland Casino strengthens programme and multi-media campaigns,to approach refinements to the loyalty so-called value-based marketing, including Holland Casino uses
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 90 Risk is unchanged Risk is unchanged Risk is unchanged Impact: medium Impact: high REPUTATIONAL RISKS REPUTATIONAL REPUTATIONAL RISKS REPUTATIONAL J: Perceptions and sensitivities gaming market market J: Perceptions and sensitivities gaming I: Security of sensitive information of sensitive information I: Security to deal effectively fails to deal effectively current perceptions and sensitivities the gaming market provokes. If the company Holland Casino is very much aware of the reputational damage. with those sensitivities this could lead to The control measure and sees the encouragement of responsible gaming as one of its core tasks. Holland Casino takes its social role seriously of the organisation. Holland its Responsible Gaming Policy has the company’s full attention at every level The effective execution and updating of plan that can be deployed in specific (including Public Affairs) and also has a crisis communications Casino has a communications department situations. r 25 May 2018. This as pe General Data Protection Regulation r 25 May 2018. This is to comply with the EU’s One of Holland Casino’s main priorities and cyber-attacks. external party to conduct a gap analysis and In this context, Holland Casino hired an Data Protection Act as of that date. law replaces the Dutch actions. work group to carry out any necessary installed an inter-disciplinary The risk The risk important. Unauthorised access to IT systems data of guests and employees, is extremely information, such as the personal The security of sensitive heav data leaks, reputational damage andy fines. unauthorised use of data, or external sources could lead to the or data from internal The control measure damage to these systems by computer viruses the misuse of our IT systems, or a wide range of measures in place to prevent Holland Casino has
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 91
Risk is unchanged Risk is unchanged Impact: low Impact: high COMPLIANCE RISKS COMPLIANCE RISKS COMPLIANCE L: Relevant laws and regulations L: Relevant laws and regulations K: Safety, criminality and fraud K: Safety, The risk The risk and the financing of terrorism Act, the to Holland Casino, such as the Prevention of money-laundering Any violation of laws or regulations applicable to meet the requirements of our regulators Act, data protection and financial reporting laws, or the failure Financial Supervision Act or the Sanctions operations and damage Holland Casino’s reputation. could have a negative impact on the company’s The control measure compliance monitoring. & Responsible Gaming and Audit departments are responsible for close Holland Casino’s Legal & Compliance, Security in reciprocal consultation with market regulators. Holland Casino operates where possible employees with regard to laws set by the management (tone at the top) contribute to awareness among Internal training courses and the example to behave in line with said regulations. and regulations and how they are expected tion to a clear protocols in risk areas. In addition to a clear in its working procedures and safety embedded preventative control measures Holland Casino has subject to intensive supervision. and cash storage, all procedures are functions in cash processing procedures division of tasks and guests the option of transferring or depositing for its employees. The company offers risk awareness in training courses Holland Casino stimulates cash for safety reasons. . The risk The risk the safety of employees and guests at all and criminal acts. To be able to guarantee in casinos creates a higher risk of fraud The presence of cash Holland Casino has a zero-tolerance policy and fraud, and the resultant unsafe situations. to minimise the risks of criminal acts times, it is necessary and fraud. with respect to theft The control measure
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 92
Risk is unchanged Risk is declining Risk is declining Impact: medium Impact: medium FINANCIAL RISKS FINANCIAL RISKS FINANCIAL N: Financial reporting N: Financial reporting M: Economic climate climate M: Economic incorrect, or is not available in a timely fashion, this could lead to the inadequate provision of information and potential reputational damage. fashion, this could lead to the inadequate provision of information and potential incorrect, or is not available in a timely The control measure main measures are monitored which documents how the main reporting risks are controlled. The Holland Casino has an internal control framework, this internal control framework. Holland Casino also carries out periodic re-evaluations of the set-up of intensively to safeguard effective operations. processes more efficient. improvements and to ascertain whether it is possible to make These checks are used to identify potential e ways we can do this is th is of its fixed overheads. One ofe ways we can do this s, including via the reduction strives to maintain healthy financial buffer Holland Casino also of purchasing contracts. increasing the flexibility The risk external parties. If this reporting is incomplete or for effective and informed decision making and for informing Reliable financial reporting is essential The risk The risk new economic downturn. this, there still is a realistic chance of a seen in 2016 continued in 2017. Despite The economic recovery The control measure to be more agile and more effective. market conditions, Holland Casino needs respond effectively to rapidly changing To be in a position to optimisation of its organisation. Casino continues to work on the further To achieve this, Holland
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 93
Risk is unchanged Impact: low FINANCIAL RISKS FINANCIAL O: Financial risks in general O: Financial The control measure The control measure position and takes any necessary action. monitors its liquidity and working capital risk is limited at this time, Holland Casino Although the liquidity place on the optimisation of the organisation. Continuous work takes as adding flexibility to its purchasing contracts. reduction of its fixed overhead costs, via measures such Holland Casino also strives for the further The risk due to its business model, with gamingas its main product. on the purchasing front exposure to fluctuating price levels Holland Casino has limited risks and cash flow risks are limited. On the basis of the also has no debts, credit company has virtually no creditors and Due to the fact that the that liquidity risks are low at this time. debts in one go. This also means position it can pay virtually all short-term company’s current liquidity
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS RISK MANAGEMENT RISK 94 Strategic Services Reputation Compliance Services Reputation Reputation Compliance Compliance Strategic Strategic Services(internal) Financial Financial Financial Strategic Reputation Compliance Strategic Services Risk category Future-oriented organisation Political developments IT infrastructure Economic climate Financial reporting Financial risks in general Large-scale projects and proposition Gaming experience terms Modernisation employment Security sensitive information guests Safety employees and Liberalisation gaming market Core group guests Security sensitive information Safety employees and guests Gaming experience and proposition Security sensitive information Perceptions and sensitivities gaming market Safety employees and guests Relevant laws and regulations I I I L F F J E B K K K H A D N C O G M
. Risks Society Overall Holland Casino Employees Guests Partnerships Innovation Strategic pillar Strategic Relationship strategic pillars and risks risks and pillars strategic Relationship
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 96 -22 -22 2016 74,161 81,562 81,773 74,161 74,139 445,385 445,385 607,364
- 309 1,746 2,608 1,003 -7,612 -1,101 22,881 21,580 -24,853 253,005 305,544 -161,979 -207,580 -131,390
3 3 73,480 73,483 97,496 73,480 97,990 639,238 497,658 468,701
457 1,097 1,812 2,145 -1,060 28,957 23,600 23,622 -43,267 -24,510 255,872 332,187 -170,537 -225,765 -131,130
1 2 3 4 5 6 7 8 Note 2017 STATEMENT OF COMPREHENSIVE INCOME STATEMENT INCOME STATEMENT net of tax income, other comprehensive Total income comprehensive Total income tax corporate Result before income tax Corporate income tax corporate Result after the year Result for in subsequent periods to the income statement be reclassified income to Other comprehensive of investees operations on foreign differences translation - Currency Gaming tax Net revenue claim Insurance revenue Total and impairments ** Depreciation benefits Employee expenses Other operating result Operating Finance income Finance expenses tax of net investees, of equity-accounted of profit Share games Table Revenue Slot machines Revenue tips Gaming and non-gaming Admission fees revenue & Beverage Food Other income tax* gaming before Revenue * The revenue before gaming tax for 2016 has been adjusted for comparison. The exchange rate income is now presented under finance income. * The revenue before gaming tax for 2016 has been adjusted for comparison. The exchange rate ** Depreciation and impairments have been adjusted for comparison. in thousands of euro of in thousands Income statement Income
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 97 197,717 107,759 305,476 31-12-2016
- 650 704 777 236 6,248 1,092 4,954 14,396 175,331 101,088
229,682 101,188 330,870 31-12-2017
40 414 711 974 236 4,742 1,342 35,626 14,283 63,601 208,901
9 10 11 12 13 14 15 11 11 12 16 Note
ASSETS Fees not yet amortised not yet Fees Cash and cash equivalents assets current Total assets Total Fees not yet amortised not yet Fees investees Equity-accounted assets non-current Total assets Current Inventories and accrued income Receivables receivables Income tax receivables Other tax assets Non-current assets Intangible assets fixed Tangible assets tax Deferred in thousands of euro, before profit appropriation profit before of euro, in thousands Balance sheet Balance
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 98 12,557 184,282 108,637 305,476 31-12-2016
- - - - -92 5,800 1,898 9,827 2,730 1,999 2,018 74,161 88,640 15,980 102,515
17,296 211,265 102,309 330,870 31-12-2017
- - 45 29 -89 4,502 4,138 3,633 1,898 8,656 1,223 85,423 73,480 15,634 132,298
18 19 20 21 18 21 20 20 21 17 Note
LIABILITIES liabilities Current Provisions and other payables Trade due income tax Corporate liabilities Other tax Other liabilities liabilities current Total equity and liabilities Total Retained earnings Retained result Unappropriated equity Total liabilities Non-current Provisions and borrowings Loans liabilities tax Deferred Other liabilities liabilities non-current Total Equity capital Share Legal reserve reserve translation Currency reserve value Fair in thousands of euro, before profit appropriation appropriation profit before euro, of in thousands
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 99 - - - - - 3 -22 Total 47,499 73,483 74,161 25,981 74,139 -46,500 210,263 210,263 211,265 110,143 184,282 184,282 ------681 result 3,376 47,499 74,161 25,981 73,480 70,785 74,161 74,161 -74,161 -70,785 100,142 100,142 Unappropriate Unappropriate ------45 2,167 -3,228 74,161 70,785 70,785 74,116 34,958 earnings -46,500 Retained Retained 102,470 132,298 102,515 102,515 102,515
------reserve 1,898 1,898 1,898 1,898 1,898 1,898 Fair value value Fair ------3 3 -89 -22 -92 -22 -92 -92 -92 -70 reserve Currency Currency translation translation ------Legal reserve -2,167 3,228 5,800 3,633 5,800 5,800 5,800 2,572
------45 45 45 45 Share capital
------capital Foundation
9 9
17 STATEMENT OF CHANGES IN EQUITY OF CHANGES STATEMENT Result for the financial period from 1 May to 31 December 2017 to 31 December 1 May the financial period from Result for of result Appropriation the year income for Other comprehensive income comprehensive Total Dividend costs development to Changes related Balance as at 31 December 2017 Total comprehensive income comprehensive Total costs development to Changes related 2016 Balance as at 31 December 2017 Balance as at 1 January 2017 April to 30 January 1 the financial period from Result for April 2017 Balance as at 30 2017 on 1 May N.V. to conversion Effect conversion) effect 2017 (after Balance as at 1 May Balance as at 1 January 2016 Balance as at 1 January year financial the Result for of result Appropriation the year income for Other comprehensive in thousands of euro in thousands Statement of changes in equity in changes of Statement
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 100 - - 98 -24 -13 -93 631 133 -309 4,505 7,612 9,643 24,853 74,161 -19,990 101,207 121,197
-7 -37 -185 916 -197 -457 2016 2017 -3,217 -2,563 5,000 -1,947 24,510 83,501 43,267 73,480 -21,953 -33,109 105,454
2 4 8 8 11 21 18 15 15 15 14 13 5,6 Note 6,20,21
STATEMENT OF CASH FLOWS OF CASH STATEMENT Net cash flow from operating activities operating from Net cash flow Other assets and other payables Trade Provisions Other liabilities activities operating from Cash flow paid Taxes Depreciation and amortisation Depreciation sale of investments from Proceeds Net finance costs/income expenses income tax Corporate in: Movements Receivables Groningen be settled fire to claim Insurance Groningen fire in advance received claim Insurance Inventories income tax corporate Result after Adjustments for: tax net of investees, of equity-accounted Profit in thousands of euro in thousands Statement of cash flows cash of Statement
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 101 36 24 967 240 -541 4,904 -4,440 96,184 -65,308 -27,281 -68,481 -27,822 101,088
37 -649 240 210 2016 2017 1,060 -3,819 -71,567 -73,839 -47,149 63,601 -46,500 -37,487 101,088
5 5 9 4 6 17 10 13 16 16 Note STATEMENT OF CASH FLOWS OF CASH STATEMENT at 1 January Cash and cash equivalents at 31 December Cash and cash equivalents activities investing from Net cash flow Finance costs paid Dividends paid financing activities from Net cash flow Net cash flow received Interest gains conversion currency Foreign assets in intangible Investments plant and equipment in property, Investments sale of investments from Proceeds Dividends received in thousands of euro of in thousands
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 102
Fire Groningen date (see note 22). loss of the tangible fixed assets,The damages with respect to the impairment by the insurer for the estimatedwith the exception of the land, are covered Casino had already reached anreinstatement value (see note 10). Holland agreement with the insurer in 2017 for the payable amount. The claim has been recognised in the result under income (see note 1). Groningen. The building and inventory were completely destroyed, and must and must and inventory were completely destroyed, Groningen. The building and emptied on write-off. The vault was opened be considered a complete were all intact, The cash and cash equivalents inside Friday 20 October 2017. deposited. and were counted and 2017. Due to the building started on Monday 23 October The demolition of the vicinity were a number of homes in the immediate condition of the building, will take several months. cleared. The demolition over the period after the fire The fixed costs for the Groningen casino for under ‘Other running costs’ (September to December) are accounted the lost profits from the Groningen (see note 4). These costs were offset by policy (for a maximum of 104 casino that are covered by the insurance respect to these lost profits. The weeks). Holland Casino filed a claim with settlement of the claim. insurer made a counter-offer for the immediate has been recognised in the 2017 The loss of the last four months of the year the insurer. Holland Casino and the financial statements as a claim against on the claim for the lost profits over the insurer signed a definitive agreement the reporting date. The claim on period on 23 February 2018, therefore after not been processed at the reportingthe insurer (EUR 23.9 million) had therefore in casino in 27 August 2017, a fire broke out at the On Sunday morning
to draw up financial statements for the period 1 January 2017 to 30 April 2017. to draw up financial statements for the l data for the method, the financial data for the Due to the use of the ‘pooling of interest’ included in the financial statements disappearing Foundation over 2017 will be year of the disappearing Foundation of Holland Casino N.V. The last financial reason the Foundation does not have ended on 31 December 2016, and for this ncluded in purposes are included in the other financial years included for comparison N.V. at carrying value. The carrying the financial statement of the acquiring at the time of processing values of the Foundation’s assets and liabilities year) have been ‘passed on’ (the start of the comparative financial for periods in which the unchanged. This approach is only possibly management. Foundation and the N.V. were under joint slot machines in the Netherlands. slot machines in the the ‘pooling of interests’ method In the conversion from Foundation to N.V., assets and liabilities (and revenue was used. This means that the acquired which the transaction takes place and and expenses) for the financial year in subsequently liquidated, whereby the State of the Netherlands became the whereby the State of the Netherlands subsequently liquidated, will be referred Casino N.V. Hereinafter, this transaction shareholder in Holland registration: Holland Casino (Chamber of Commerce to as the ‘conversion’. (head office registered in The Hague, the Netherlands 68662289), officially games and 71, 2132 JP Hoofddorp), operates casino address: Neptunusstraat General information General information (Holland tot Exploitatie van Casinospelen in Nederland The Nationale Stichting as ‘Holland Casino N.V. (hereinafter referred to Casino) founded Holland was by means of legal demerger. The Foundation Casino’) on 1 May 2017, Notes to the financial statements for the financial financial the for statements financial the to Notes 2017 31 December ending year
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 103
any and any instruments: measured at fair value non-derivative financial recognised in the income statement. changes in value are changes value and any changes measured at fair financial instruments: derivative the result; are recognised in in valuation
Foreign currency euro at the prevailing exchange rates Assets and liabilities are translated into currencies are translated at the at the reporting date. Transactions in foreign Foreign currency differences exchange rates at the time of the transaction. Exchange rate differences and are recognised in the income statement. provisions arising from foreign exchange transactions are recognised under financial income and expenses. ◊ have been are presented in euro and all amounts The financial statements thousand, unless otherwise indicated. rounded off to the nearest were received are attributed to the year in which they Revenue and expenses have been realised are included only to the extent that they or incurred. Profits prior to the end of the year underon the reporting date. Losses that originated known prior to the preparation of review are included if their existence was the financial statements. Going-concern financial statements for 2017 The Executive Board prepared Holland Casino’s will continue as a going concern. on the assumption that Holland Casino Presentation and functional currency currency and the currency in The euro (€) is Holland Casino’s functional been prepared. which these financial statements have Policies used for the preparation of the financial statements of the financial the preparation used for Policies thea historical cost basis, with been prepared on statements have The financial balance at fair value at each which were valued of the following items, exception sheet date: ◊
1.1 5.5 5.5 27.9 13.5 13.5 8.9 8.9
LOST INCOME LOST VALUE ESTIMATE REINSTATEMENT Building (building & renovation costs) Building (building & renovation Inventory Slot machines September September through December 2017 These principles have been applied consistently for all periods presented in These principles have been applied consistently these financial statements. l 2018. statements on 24 April 2018. The Executive Board approved the financial Relevant accounting policies policies used for the valuation of Below is an explanation of the key accounting of the results of Holland Casino. assets and liabilities and the determination een for the year 2017 have been These consolidated financial statements Reporting Standards (IFRS), as prepared in accordance with International section 362, Part 9 of Book 2 of the endorsed by the European Union, and with Dutch Civil Code. Statement of compliance with IFRS and new and amended IFRS new and amended IFRS Statement of compliance with IFRS and standards The insurance claim as recognised in the income statement (EUR 29.0 29.0 (EUR statement in the income claim as recognised The insurance as follows: be broken down million) can
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input for the asset or liability that is not based on observable based on observable input for the asset or liability that is not inputs other than the quoted prices included in level 1 that are in level 1 that are inputs other than the quoted prices included quoted price (unadjusted) in active markets for identical assets in active markets for identical assets quoted price (unadjusted)
Level 1: or liabilities; Level 2: directly (i.e. as prices) or observable for the asset or liability, either indirectly (i.e. derived from prices); Level 3: market data (unobservable inputs).
In the calculation of the fair value of an asset or liability, Holland Casino Casino the fair value of an asset or liability, Holland In the calculation of The fair values possible use of observable market data. makes the maximum depending levels on the basis of a fair value hierarchy, are divided into various The different the application of the valuation method. on the inputs used for as follows: levels have been defined ◊ ◊ ◊ of an asset or liability might be If the inputs used to measure the fair value hierarchy, then the fair valuecategorised in different levels of the fair value same level of the fair value hierarchymeasured is categorised in its entirety in the to the entire measurement. Hollandas the lowest level input that is significant levels of the fair value hierarchy at Casino recognises any transfers between the change occurred. the end of the reporting period during which Fair value and non-financial assets of both financial of the fair value The determination principles and explanatory number of valuation is required for a and liabilities notes.
; 10
. 22 ; 18 ; 18 ; 4 ; 13 the useful economic life and valuation of property, plant and equipment the useful economic life and valuation of the restructuring provision the provision for employee benefits lease classification control investees balance sheet assets and liabilities not recognised in the
◊ ◊ ◊ ◊ ◊ ◊ Estimates and underlying assumptions are reviewed on an ongoing basis. are reviewed on an ongoing basis. Estimates and underlying assumptions in the period in which the Revisions to accounting estimates are recognised if the review relates to future periods. estimate is reviewed, or in future periods primarily related to: The key estimates and assumptions are expenses. The estimates and associated assumptions are based on historical assumptions are based on historical expenses. The estimates and associated are believed to be reasonable experience and various other factors that and circumstances may differ under the circumstances. The actual results from these estimates. the translation difference is allocated to non-controlling interests. is allocated to non-controlling interests. the translation difference assumptions Key estimates and to make financial statements requires management The preparation of the of accounting and assumptions that affect the application judgments, estimates income and amounts of assets and liabilities, and policies and reported value adjustments arising from acquisitions, are translated into euro at the at the into euro acquisitions, are translated arising from value adjustments and expenses of foreign date. The income rate on the reporting exchange rate on the transaction euro at the exchange are translated into operations comprehensive differences are recognised in other dates. Foreign currency to the extent that in the translation reserve, except income and accumulated Foreign operations goodwill and fair activities, including and liabilities of foreign The assets
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 105 -
Lease payments Lease payments leases are recognised in the income Lease payments related to operational the term of the lease. Incentives for statement on a straight line basis over in the result the term of the the closing of a lease agreement are recognised lease, as an integral part of the total lease expenses. of an agreement that includes a lease agreement, Holland Casino separates Casino separates includes a lease agreement, Holland of an agreement that for the fees required by the agreement into payments payments and other elements based agreement and payments for the other lease-element of the it is not feasible values. If Holland Casino concludes that on their relative fair reliable fashion, an payments in a financial lease in a in practice to separate the fair value of are recognised for an amount equal to asset and a liability payments are The liability is subsequently reduced as the underlying asset. recognised on costs related to the liability are made and implicit financing interest rate. the basis of Holland Casino’s marginal Leased assets the risks and benefits of ownership Lease agreements that transfer virtually all to lease agreements. At initial Holland Casino are classified as financial fair value or present value of therecognition, the leased asset is valued at which is lower. After initial recognition,minimum lease payments, depending on the applicable accounting policy for the asset is valued in accordance with the asset in question. leases; these are not Other lease agreements pertain to operational recognised in the balance sheet. Lease agreements agree whether said Holland Casino establishes of an agreement, At the start the re-evaluation a lease agreement. At the start of or at ment is or includes
Gaming and non-gaming tips This relates to tips received at the table games and the slot machines, as well as tips received by Food and Beverage and other staff. This revenue is recognised daily, after the gaming chips have been counted. Food and Beverage revenue at the moment that the amount of Food and Beverage revenue is recognised the payment has been received or is revenue can be reliably determined and likely to be received. Revenue Slot machines the difference between the money The revenue from Slot machines represents paid out, adjusted for the inserted in the slot machines and the amount progressive jackpots not yet paid out. ss can be or loss can be date and in so far as the profit rendered at the reporting reliably estimated. Revenue Table games the difference between the stakes The revenue from Table games represents received and the amounts paid out. Revenue or to be at the fair value of the payments received Revenue is recognised is qualified as activities generate revenue that received. Holland Casino’s of the services This revenue is recognised pro rata revenue from services. Determination of result Determination income and expenditure. difference between profit/loss is the The operating while recognised in the year in which it is received, Income is generally Losses are to the years in which they were incurred. expenses are attributed they are identified. recognised at the moment Accounting policies for the income statement income the for policies Accounting
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financial fees; interest expenses from financial commitments recognised at recognised at interest expenses from financial commitments amortised cost; commitment, utilization and agency fees; interest expenses related to the revaluation of provisions. amortisation ◊ ◊ ◊ exchange differences on foreign activities of the investees are charged to on foreign activities of the investees are exchange differences Dividends if the interest in the participation is sold. result in the statement are charged to the balance sheet item. received from investees Finance income income from as finance income the interest Holland Casino recognises the exchange account balances at banks, as well as deposits and positive above. rate results mentioned basis of the effective interest method. Interest income is accounted for on the Exchange rate results currency) transactions The exchange rate results realised on (foreign number of netted flows. These are with guests in the casinos consists of a on credit card transactions, transaction charges and provisions charged between foreign currency provisions paid to GWK-Travelex, and differences is recognised under other financial exchange rates. The exchange rate result income in the income statement. Finance expenses the following: Holland Casino’s finance expenses comprise Share in profit of equity-accounted investees, net of tax net of investees, of equity-accounted in profit Share recognised are investees equity-accounted of in the valuation Any adjustments activities on foreign exchange differences statement. Currency the income in income. in the other comprehensive are recognised of participations are of the investees on foreign activities exchange differences The currency accumulated currency statement. The the result in the income charged to ◊ Interest expenses are recognised using the effective interest method.
obligation to make additional payments. The periodic payments to the pensionobligation to make additional payments. Amounts due but not yet paidfund are recognised in the income statement. (if applicable) are recognised as a short-term liability at the reporting date. Holland Casino has a pension scheme that is classified as a defined contributionHolland Casino has a pension scheme that is determined in advance,scheme. This is a scheme in which a contribution Pensioenfonds Hollandwhich is paid to an independent entity (‘Stichting is ‘Stichting Algemeen PensioenfondsCasino’ until 1 July 2017; from 1 July 2017, this has no legal or constructiveStap’) and in which Holland Casino subsequently These liabilities financial statements. These liabilities explained in more detail elsewhere in the value. Revaluations are recognised are discounted to determine the present occur. in the results in the period in which they Pension scheme be expected to pay if the company had a legally enforceable or constructive a legally enforceable or constructive be expected to pay if the company had of services rendered by the employee obligation to pay the amount as a result and the obligation can be estimated reliably. to long-term employee benefits is Holland Casino’s net obligation in respect statement on a straight line basis over the term of the lease. statement on a straight Staff benefits service is benefits are expensed as the related Short-term employee Casino would recognised for the amount that Holland provided. A liability is such a way that this results in a constant periodic interest rate on the residual residual interest rate on the a constant periodic that this results in such a way the liability. balance of of slot machines as the lessee in the operational leasing Holland Casino acts Lease slot machines and cars are not capitalised. and cars. The leased income operational leases are recognised in the payments related to cognised recognised lease are financial from a arising payments lease The minimum liability. ding the outstan of as repayment and partly costs as financing partly of the total lease term in to each period costs are allocated The financing
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temporary differences ensuing from transactions that cannot be be ensuing from transactions that cannot temporary differences and taxable and do not affect the commercial considered acquisitions the transaction; result at the time of relating to investments in subsidiaries, temporary differences assets, such joint ventures and contract-related associated companies, the reversal is in a position to control the timing of unless the company difference and it is likely that the temporary of the temporary difference will not be reversed in the foreseeable future; the initial recognition of taxable temporary differences arising on
plans of individual subsidiaries within Holland Casino. Casino. plans of individual subsidiaries within Holland reporting date and are reduced to Deferred tax assets are evaluated at every the related tax credit will be realised.the extent that it is no longer probable that it is probable that the taxable Such reductions are reversed as soon as income will increase in the future. Deferred tax liabilities are not recognised for: Deferred tax liabilities ◊ ◊ ◊ goodwill. unused tax deductible losses, unused Deferred tax assets are recognised for to the extent that it is tax credits and deductible temporary differences, available in the future that these probable that taxable income will become income is determined on the basis can be offset against. Prospective taxable differences. If the amount of of the reversal of relevant taxable temporary sufficient to recognise a deferred the taxable temporary differences is not adjusted for the reversal of existing tax credit, prospective taxable income – on the basis of the business temporary differences – is taken into account Deferred income taxes are recognised for the temporary differences between between differences for the temporary taxes are recognised Deferred income financial reporting purposes and liabilities for value of the assets the carrying of these items. carrying value and the taxable Deferred income taxes Deferred income
dividends. Current tax claims and liabilities are only netted if certain criteria are only netted if certain criteria dividends. Current tax claims and liabilities are met. determined on the basis of the best estimate of the tax income or expense, of the tax income or expense, determined on the basis of the best estimate relating to income taxes. Current taking into account potential uncertainty the prevailing tax rates on the income tax is calculated on the basis of materially decided on said reporting date or which have already been includes possible taxes payable on reporting date. Current income tax also Current income taxes tax payable or receivable on the Current income tax comprises the expected any adjustment to tax payable or taxable income or loss for the year and The amount of current income tax is receivable in respect of previous years. other comprehensive income. including the uncertain handling of Interest and fines relating to income taxes, of IAS 37 - Provisions, Contingent income taxes, are recognised on the basis Liabilities and Contingent Assets. either capitalised including VAT, or recognised in the income statement. VAT, or recognised in the income either capitalised including Income taxes income taxes sum of the income taxes and deductible The income tax is the result, except tax. The income tax is recognised in the and deferred income in the equity or in to items that are recognised directly in so far as this relates Dutch Gaming Tax Act (Wet op de kansspelbelasting). The revenue from from The revenue de kansspelbelasting). Tax Act (Wet op Dutch Gaming Beverage Casino’s Food & gaming tax. Holland chance is subject to games of a limited possible to deduct means it is only subject to VAT. This activities are reason, capital for total income and expenses. For this amount of input tax deductible, are for which input tax is not or not fully expenditures and costs, Value added tax (turnover tax) / gaming tax tax (turnover tax) Value added in the chance as defined VAT on games of is exempt from Holland Casino
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Casino. Casino. netted if certain criteria are met. Deferred tax assets and liabilities are only es of how es of how income tax reflects the tax consequenc The valuation of deferred of its assets and to realise or settle the carrying value Holland Casino expects that the carrying of the reporting period. It is also assumed liabilities at the end fair value will investments that are measured at amount of the real estate by Holland sale. This assumption has not been refuted be realised through become available in the future that it can be offset against. against. that it can be offset in the future become available expected tax rates that are on the basis of the assets are valued Deferred tax the basis of tax the end of the temporary differences on to be applicable at date. materially determined on the reporting rates determined or Unrecognised deferred tax assets are re-evaluated at every reporting date date at every reporting are re-evaluated deferred tax assets Unrecognised taxable income will it is probable that as soon as and are recognised
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 109 7 years 7 years 20 years 12 years 3 - 8 years 5 - 12 years THE ESTIMATED USEFUL ECONOMIC LIFE IS GENERALLY AS FOLLOWS USEFUL ECONOMIC LIFE IS GENERALLY THE ESTIMATED Buildings Building conversions Plant and equipment machines and Multi Roulette Slot machines and fittings Fixtures value is the estimated sale price in the context of normal operations less the value is the estimated sale price in the context cost required to realise the estimated cost of completion and the estimated of the estimated future cash flows sale. The value in use is the present value of an asset and of its disposal at expected to be realised on continued use test is carried out at the level of the end of its useful life. The aforementioned cash flow generating units. If the net realisable value is lower than the carrying amount, an impairment in the amount of the difference is recognised in the income statement and the carrying amount of the asset is reduced to its net of cost or net lower of cost or net under construction are valued at the Tangible fixed assets costs, direct labour production price consists of material realisable value. The production costs an attributable part of the indirect costs, installation costs, costs. The level of operating activity, and related interest based on a normal less any costs is based on the expected sales price direct realisable amount and sale. to be incurred for completion Impairments tested against the recoverable amount The carrying amount of a fixed asset is impairment. The net realisable periodically if there are indications of a potential to sell and value in use. The sale amount is the higher of fair value less costs
ASSETS not depreciated. are capitalised (using the Expenditures on repairs and (major) maintenance component approach) if it is likely that the asset item will generate additional future economic benefits and if the cost price of the asset item can be reliably calculated. All other costs are charged directly to the income statement. equipment are valued at cost price less cumulative depreciation and, where cumulative depreciation and, where equipment are valued at cost price less Straight line depreciations are applicable, cumulative impairment losses. useful life and calculated on the effected in line with the estimated expected residual value. Depreciations are basis of purchase cost less the estimated is taken into use. Land holdings are recognised from the moment the asset five years applies to assets related to Play Digital and Holland Casino IT environment. five years applies to assets related to Play Property, plant and equipment land holdings, building conversions,Property, plant and equipment are buildings, and fittings. Property, plant and slot machines, gaming tables, fixtures Other intangible assets acquired by Holland Casino with a finite life are valued atOther intangible assets acquired by Holland cumulative impairment losses. cost price less cumulative amortisation and is three years. A different useful life ofThe general useful life of intangible assets and commercially feasible, future economic benefits are likely and Holland Casino future economic benefits are likely and commercially feasible, ent and use or resources to complete the developm intends to and has sufficient moment they are costs are recognised at the sell the asset. Other development are valued atrecognition, capitalised development costs incurred. After initial losses. amortisation and cumulative impairment cost price less cumulative Intangible assets Intangible at the moment activities are recognised in the results Expenditures on research only capitalised if on development activities are they are incurred. Expenditures is technically be reliably calculated, the product or process the expenditures can Accounting policies for the balance sheet balance the for policies Accounting
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 110
For further information, please see note 17. For further information, please see note Liabilities Following initial recognition, unless Liabilities are initially stated at fair value. otherwise indicated, liabilities are valued at amortised cost on the basis of the effective interest method. Provisions Cash and cash equivalents are stated at face value. Any bank balance not at face value. Any bank balance not Cash and cash equivalents are stated into account in the valuation. freely available to Holland Casino is taken Equity nominal amounts paid on the issued The issued share capital consists of the of a legal reserve, translation shares. The remainder of the equity consists The item legal reserves reserve, fair value reserve and a profit reserve. and a legal reserve for capitalisedcomprises a legal reserve for related parties is related to the conversion of development costs. The translation reserve party. The fair value reserve is a legal foreign currency ensuing from the related property, plant and equipment. reserve and pertains to the revaluation of calculated on the basis of individual assessments of the inventories. calculated on the basis Trade and other receivables initial initially recognised at fair value. Following These receivables are on the basis of are valued at amortised cost price recognition, receivables necessary to rate method, less any provisions deemed the effective interest debts. cover the risks of bad Cash and cash equivalents are recognised in the income statement. If necessary, external valuations are are external valuations If necessary, statement. in the income are recognised of assets. the value to determine used Inventories lower of first in first out on the basis of the are valued at cost Inventories is net realisable value value. This lower or net realisable (FIFO) method -
SBF are consolidated in Holland Casino’s financial statements. SBF are consolidated in Holland Casino’s Assets held for sale Assets held for sale are valued at the lower of carrying amount or fair value less costs for sale. When assets held for sale are classified, any impairments in so far as there is no indication of potential impairment. in so far as there is no indication of potential Subsidiaries (SBF) is a 100% subsidiary of Under IFRS 10, the Stichting Beheer Fooiengelden individual assets and liabilities of the Holland Casino in economic terms. The only in the event that Holland Casino has accepted liability for said losses. only in the event that Holland Casino has with Gaming Support B.V. areUnrealised profits resulting from transactions interest in Gaming Support B.V.eliminated in proportion to Holland Casino’s way as unrealised profits, but onlyUnrealised losses are eliminated in the same ments of Gaming Support B.V. are not eliminated. to the total of the net investmentLosses on associated investees are recognised carrying amount, as well as any loansin the participation, taking into account the for the share in any additional lossesissued to the investee. A provision is taken adjusted to the share in the result. Dividends received are deducted from the in the result. Dividends received are deducted adjusted to the share the moment companies are consolidated from carrying amount. Associated no longer exists. is acquired until the moment that influence significant influence eliminated with equity-accounted investees are The results of transactions Any impair to the extent of the interest in the investee. against the investment the asset is raised to the net realisable value. raised to the net realisable the asset is investees Equity-accounted of Holland Support B.V., the associated company The 40% interest in Gaming equity method. for in the financial statements using the Casino, is accounted amount was at historical cost and the carrying This was initially recognised realisable value. In addition and in so far as applicable, the straight line de the straight so far as applicable, and in In addition value. realisable that are indications If there life is adjusted. useful the remaining over preciation of the carrying amount needs to be reversed, applied impairment a previously
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Jackpot liability at the fair measured value of the The liability relating to the jackpot is stated jackpots. Favorites programme Loans and borrowings value. They are are initially recognised at fair Drawn loans and borrowings the effective at amortised cost on the basis of subsequently recognised capitalised and attributable transaction costs are interest method. Directly debts on the loans. If there are no outstanding netted against the drawn capitalised and sheet, these transaction costs are liability side of the balance interest expenses as ‘fees not yet amortised’. The effective recognised in assets year), are attributed to the period to (in the event there were loans during the income statement. which they pertain and recognised in the Derivative financial instruments recognised at fair value and Derivative financial instruments are initially recognised in the result at the time directly attributable transaction costs are are subsequently valued at they are incurred. Derivative financial instruments recognised in the result. fair value and any changes in same are Uncashed chips liability tokens that have not been exchanged The liability relating to coins, chips and of the coins, chips and tokens visitors is stated at face value, less that portion are no longer expected to cash in. loyees loyees for emp is created payments benefit disability for The provision policy, this insurance policy. Under insurance previous by the covered of 62. In July 2017, Holland until the age receive disability benefits employees company provision to insurance to transfer this Casino decided this, liability. As a result of the entire which has assumed ‘De Amersfoortse’, was released. the provision
-
expected costs of the termination of the contract or the lower present value of expected costs of the termination of the contract. Before a provision is taken,the expected net costs of continuing the Holland Casino first recognises any impairment on the assets associated with the contract. Provision for disability benefit payments detailed and formalised restructuring plan and made a start on the restruc detailed and formalised restructuring plan is taken for future operating losses. turing or announced it publicly. No provision Provision for onerous contracts at the present value of the The provision for onerous contracts is stated discount rate is the yield at the balance sheet date on AA-rated bonds with sheet date on AA-rated bonds with discount rate is the yield at the balance Casino’s liabilities. a term that approximates that of Holland Restructuring provision Holland Casino has approved a A restructuring provision is taken when fits, with employee benefits, with Holland Casino’s net liability based on long-term amount of future benefits that the exception of pension schemes, is the the services they have rendered in employees have earned in exchange for This liability is estimated using the period under review and previous periods. discounted to present value. The the projected unit credit method and is the restoration of leased properties and land to their original state. The provision properties and land to their original the restoration of leased at the time the costs is taken for the associated costs for decommissioning arises. obligation to decommission benefits (long-service award liability) Provision employee rate that reflects the current market estimates of the time value of money and the time value of money market estimates of the current rate that reflects to the The interest added with the obligation. risks associated of the specific expense. recognised as a financing provision is costs Provision for decommissioning costs for the anticipated contractual decommissioning This provision covers Provisions are taken only for legally enforceable obligations and constructive and constructive obligations enforceable for legally only are taken Provisions by are calculated Provisions sheet date. balance exist on the that obligations discount basis of a pre-tax cash flows on the the expected future discounting
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use as possible of unobservable inputs. The chosen valuation method method inputs. The chosen valuation use as possible of unobservable in deciding that market parties must take into account includes all factors the price of the transaction. price, Holland at fair value has a bid and offer If an asset that is recognised bid price and its assets and long positions against the Casino measures its against the offer price. liabilities and short positions a financial instrument at initial recog The best foundation for the fair value of the fair value of the payment nition is usually the transaction price, meaning that the fair value at initial given or received. If Holland Casino determines price and the fair value is no longer recognition differs from the transaction an active market for an identical supported by a quoted market price on on a valuation method in which all asset or liability, and it is also not based in relation to the valuation, unobservable inputs are judged to be insignificant at fair value at initial recognition, the financial instrument is recognised fair value at initial recognition and adjusted to defer the difference between then recognised in the income the transaction price. The difference is but no later than when the statement over the term of the instrument, market data or the transaction valuation is fully substantiated by observable is complete. instrument with the aid of the price quoted on an active market for that for that market an active quoted on the price the aid of with instrument or for assets transactions active if is considered A market instrument. volume to issue pricing frequency and place with sufficient liabilities take price on an active If there is no quoted on a continuous basis. information using valuation methods the fair value by company determines market, the little inputs and makes as observable maximum use of relevant that make
- nation of fair values, both for financial and non-financial assets and liabilities. nation of fair values, both for financial and A number of Holland Casino’s policies and explanatory notes require the deter A number of Holland Casino’s policies and mi the fair value of a financial When it is available, the company determines be settled on the valuation date in an orderly transaction between well-informedbe settled on the valuation date in an orderly isn’t available, most advantageousrelevant parties in the primary or, if the primary on that date. The fair value of amarket that is accessible for Holland Casino liability reflects the risk of non-compliance. income is allocated to the loyalty programme and the other components of income is allocated to the loyalty programme the sales transaction. Determination of fair value asset can be traded or a liability canThe fair value is the amount for which an Recognition of the amount allocated to the loyalty programme is deferred and allocated to the loyalty programme Recognition of the amount obligation to once Holland Casino has fulfilled its is only carried as income or when it is likely discount ensuing from the programme, deliver products at a exchanged. The from the programme will no longer be that the points ensuing live gaming tables. live gaming Platinum and Diamond (Welcome, Black, has various cards Holland casino is carried at levels of associated privileges. This liability Card) with increasing amount points at year-end based on a nominal the number of outstanding per point. The Favorites Card gives visitors the opportunity to save up for (gaming) money up for (gaming) to save opportunity the gives visitors Card The Favorites at and slot machines on the are collected Points food or drinks. on or discounts at the are also collected casinos, points in the restaurant. In selected the bar or
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 113 Accounting policies statement of cash flows of cash statement policies Accounting investment investment since these are the result of the company’s financial cash flow, flow. cash financial as recognised is out paid Profit activities. financing and/or cash flows cash flows financial year. The investment and financing expenses during the to the direct method. are prepared according investment cash opted to present dividends received as Holland Casino has costs paid as as investment cash flow and financing flow, interest received nal, flow from operational, comprises the cash of cash flows The statement cash flow is recognised The operational and financing activities. investment between method and on the basis of a comparison according to the indirect review. To this balance of the financial year under the starting and closing in income or for changes that have not resulted end, the result is adjusted
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 114
composition of the lease portfolio on that date, the final evaluation of whether it composition of the lease portfolio on that the degree to which Holland Casino will exercise its lease renewal options and recognition exemptions. chooses to apply practical solutions and to have a significant impact on Holland Casino does expect this new standard impact will be on the operational its balance sheet positions. The biggest In view of the nature of the company’s activities (operating casino games casino games of the company’s activities (operating In view of the nature the performance the company expects compliance with and slot machines), Holland Casino the ‘contracts’ between customers and obligations on the day immediately This means that income can be recognised come into existence. recognition of in a change compared to the current and this will not result revenue. IFRS 16 Leases was published on 13 January IFRS 16, the new standard for lease accounting, 2019. How lease contracts are 2016. IFRS is compulsory from 1 January fundamentally. IFRS 16 eliminates accounted for and recognised will change a distinction between financial the current recognition model, which makes (off balance). Instead, it introduces lease (on balance) and operational lease to the model currently used a single recognition model which is comparable for financial lease accounting. assessment of the possible impact on Holland Casino has completed its initial has not yet completed its detailed its consolidated financial statements, but of IFRS 16 on the financial assessment. The actual impact of the application depends on future economicstatements in the period of first application rate on 1 January 2019, the conditions, including Holland Casino’s interest The analysis on the impact of IFRS 15 for Holland Casino has been completed. has been completed. IFRS 15 for Holland Casino on the impact of The analysis on its revenue recognition. no material impact expects IFRS 15 Holland Casino
rogrammes. 18, Revenue, IAS 11 Construction contracts and IFRIC 13, Loyalty p 18, Revenue, IAS 11 Construction contracts starting on or after 1 January 2018. IFRS 15 is applicable to financial years IFRS 15 revenue from contracts with customers IFRS 15 revenue from contracts with published in May 2014, IFRS 15 ‘Revenue from Contracts with Customers’, whether, how much and when revenueestablishes a framework for determining IAS recognition guidance, including is recognised. It replaces existing revenue explanatory notes, in particular around hedge accounting, credit risks and hedge accounting, credit risks and explanatory notes, in particular around expected credit losses. Holland Casino has been completed. The analysis on the impact of IFRS 9 for This new standard has no material impact. financial impairment on financial a new expected credit loss model for calculating requirements. The provisions of assets, and new general hedge accounting exclusion of financial instruments IAS 39 with respect to the inclusion or future standard. IFRS 9 is applicable to have also been incorporated into the new 2018 . IFRS 9 requires additional financial years starting on or after 1 January IFRS 9 Financial instruments IAS 39 Financial July 2015, replaces existing guidance in IFRS 9, published in revised guidance and Measurement. IFRS 9 includes Instruments: Recognition including and measurement of financial instruments, on the classification Holland Casino has not voluntarily applied new standards, changes to existing changes to applied new standards, has not voluntarily Holland Casino is required. Holland Casino this is legally or interpretations before standards interpre the impact of the following new standards, currently investigating standards have to existing standards. The following tations and amendments year: are not yet compulsory for the 2017 financial been published but New or amended IFRS standards IFRS amended or New
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 115 on 1 January 2019, without adjustment of the comparative figures. on 1 January 2019, without Holland Casino intends to apply the practical solution to maintain the the practical solution intends to apply Holland Casino the transition. of a lease in existing definition 1 January 2019, to apply IFRS 16 for the first time on Holland Casino expects effect of applying application. This means the cumulative using the retroactive the retained results adjustment of the opening balance of IFRS 16 will lead to an leases. We refer to note 22 for an overview of the (non discounted) lease discounted) the (non of for an overview to note 22 We refer leases. liabilities.
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 116
- 1,746 2,608 22,881 21,580 445,385 445,385 558,549 -161,979
219 1,045 2,389 1,237 21,644 45,676 -25,141 253,005 305,544 -161,979
2017 2016 1,812 2,145 23,622 28,957 23,600 497,658 468,701 588,059 -170,537
- 211 1,934 1,337 22,263 53,784 -30,162 255,872 332,187 -170,537
1. REVENUE 1. revenue Total value of EUR 27.9 million reinstatement for the appraised claim The lost. considered were and the building and inventory fire, by affected was the casino in Groningen 2017, August *In and loss statement. profit in the as income under the revenues recognised till December (EUR 1.1 million) are and the lost earnings in September Free non-alcoholic drinks (at sales price) Free Other income fees Parking Miscellaneous Net revenue claim* Insurance The revenue from Table games and Slot machines are subject to gaming tax, The current gaming tax rate is 29% of revenues. rate tax gaming current The gaming tax, subject to are games and Slot machines Table from revenue The tips Gaming and non-gaming Gaming tips Tips Admission fees revenue & Beverage Food (gross) & Beverage Food & Beverage Food Outsourced games Table Revenue Slot machines Revenue tax gaming before Revenue Gaming tax in thousands of euro, unless otherwise indicated unless otherwise euro, of in thousands Notes to the income statement income the to Notes
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 117 - 2016* -24,853 -207,580 -24,853
- -
-764 -194 -660 -24,089 -1,500 -22,448 -19,674 -10,298 -152,806
2017 2016 2017 -31,458 -11,809 -43,267 -225,765
-840 -234 -622 -1,508 -3,817 -7,992 -29,950 -22,873 -16,748 -10,443 -174,005
The impairment of tangible fixed assets pertains to the depreciation of the The impairment of tangible fixed assets building and inventory in Groningen. The casino burned down in August 2017, the land, are considered a write-off. and the tangible fixed assets, excluding
3. EMPLOYEE BENEFITS EMPLOYEE 3. 2. DEPRECIATION AND IMPAIRMENTS AND DEPRECIATION 2. provision long-service award Addition (release) Salaries disability benefits WAO/WIA Social security charges costs Pension benefits employee Indirect provision restructuring Addition (release) Total depreciation and impairments depreciation Total assets intangible Depreciation assets fixed tangible Depreciation assets Impairments intangible assets fixed tangible Impairments property, * The presentation of the depreciation has been adjusted for comparison purposes. for has been adjusted of the depreciation presentation The * this, the old project was fully terminated, which led to an impairment.this, the old project was fully terminated, In 2017, Holland Casino took an impairment on intangible fixed assets for the PlayIn 2017, Holland Casino took an impairment absence of relevant legislation andDigital project, as a result of the continued The project was restarted andthe rapidly changing online gaming market. to go in another direction. As a result ofreassessed, and Holland Casino decided
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 118
3,282 2016* 504
2017 3,597 640 608 564 656 612 1,401 1,354 292 248 EMPLOYEE NUMBERS PER DEPARTMENT (AVERAGE) NUMBERS PER DEPARTMENT EMPLOYEE Services & Beverage Food Other Table games machines Table Slot The calculation method for the average number of employees has changed, and the figures for 2016 have been adjusted for comparative purposes. * The number of employees stood at 3,699 at year-end 2017 (year-end 2016: 3,441). These costs include the cost for selection and recruitment, training, staff training, staff the cost for selection and recruitment, These costs include staff. rental of parking spots for Holland Casino’s canteen, uniforms and provision Expenses restructuring to the closure to a contribution of EUR 1.5 million related In 2016, this pertained contribution and the Pensioenburo. In 2017, the of Holland Casino Schiphol Casino Schiphol. pertains to an addition relating to Holland Staffing of 3,597 employees (2016: 3,282 In 2017, Holland Casino had an average trainees. The distribution across employees), excluding stand-by staff and departments was as follows: Indirect employee benefits Indirect employee the adjustment is that the cost-covering premium must at all times remain remain at all times must premium cost-covering is that the the adjustment labour the collective parties to If the bandwidth. premium the agreed within decide pension fund will themselves, the fail to reach agreement agreement percentage. to the accrual any required adjustment and introduce with a pay scheme indexed average scheme is a conditionally The pension 67 and a minimum tax franchise. pensionable age of
adjustments to the scheme. The parties use a statement from the pension use a statement from the pension adjustments to the scheme. The parties that is (financially) realisable from fund on the expected accrual percentage the premiums agreed for the subsequent year. In addition to the adjustment of the accrual percentage, the parties to the collective labour agreement can also decide on an alternative adjustment to the scheme. A prerequisite for the pension scheme. decide each year whether The parties to the collective labour agreement as of 1 January of the subsequent the pension scheme can still be financed whether it is necessary to make year from the agreed upon premiums or is equal to the sum total of the actuarial premium of the pension accrual in premium of the pension accrual in is equal to the sum total of the actuarial solvency surcharge and the cost the relevant year, the risk premiums, the therefore does not include elements surcharge. This cost-covering premium past or the financial position of the relating to the pensions accrued in the or surpluses in the pension fund. fund. Holland Casino is not liable for deficits for the account of the participants in The risk of deficits or surpluses is entirely The regulations of the Stichting Algemeen Pensioenfonds Stap do not provide Pensioenfonds Stap do not provide The regulations of the Stichting Algemeen from the fund. Each year, in any way for additional deposits or withdrawals premiums required for the the pension fund determines the cost-covering year. The cost-covering contribution nominal pension accrual in the relevant Algemeen Pensioenfonds Stap, from Stichting Pensioenfonds Holland Casino. Holland Casino. Stap, from Stichting Pensioenfonds Algemeen Pensioenfonds as a defined of pension scheme, this is qualified By virtue of the provisions due to Holland Casino has recognised the contributions contribution scheme. Pensioenfonds Holland Casino and Stichting Algemeen Stichting Pensioenfonds in the income statement. Stap as an expense l year. employers’ contribution due in the financia This pertains to the to the Stichting Casino transferred its pension scheme From 1 July 2017, Holland Pension costs Social security charges security Social EUR of premiums social insurance share of employer’s include the charges These the Healthcare This item also includes (2016: EUR 14.0 million). 14.1 million (2016: EUR 8.4 million). costs of EUR 8.8 million Act-related
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 119
-257 -131,390
24 -24 -43 -214 -704 -190 -63,271 -27,597 -21,138 -18,490
-306 2017 2016* 2017 2016 -131,130
- -15 -41 185 -250 -4,791 -22,153 -57,204 -27,680 -19,487
AUDITOR’S FEES AUDITOR’S 4. OTHER OPERATIONAL EXPENSES OPERATIONAL OTHER 4. of the financial statements Audit Other audit engagements advisory services Tax-related
Business expenses Accommodation expenses expenses Marketing IT expenses equipment plant and Disposals of property, costs Start-up Other running costs *The figures for 2016 have been adjusted; only KPMG Accountants N.V. is now mentioned. is now N.V. Accountants only KPMG been adjusted; for 2016 have figures *The Business expenses expenses, lease Business expenses pertain primarily to maintenance Food & Beverage purchasing expenses slot machines, consultancy costs, and accounting fees (excluding VAT).
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 120 309 1,003 -1,101
-72 36 309 -469 -236 -324 967
457 2017 2016 2017 2016 2017 2016 -1,060 1,097
457 -216 -458 -236 -150 37 1,060
an amount of EUR 4.6 million in real estate transfer tax on the value of the value of the million in real estate transfer tax on the an amount of EUR 4.6 demerged real estate. that period, which are covered by the insurance policy. The claim for the lost for the lost The claim policy. the insurance by are covered which that period, revenue recognised as December have been September through profits for income statement. income item in the under the tax for the restructuring the conditions Casino no longer meets As Holland paid Holland Casino of the Foundation, following the liquidation exemption
7. SHARE OF PROFIT OF EQUITY-ACCOUNTED INVESTEES OF EQUITY-ACCOUNTED SHARE OF PROFIT 7. 6. FINANCE EXPENSES 6. 5. FINANCE INCOME 5. Gaming Support B.V. Interest expenses on financial liabilities at amortised expenses cost price Interest etc.) utilisation fee, (commitment fee, Finance expenses fees Amortisation financial of provisions of the unwinding of discount and/or discounting as a result expenses Interest deposits and balances with banks income from Interest gains conversion currency Foreign in August 2017, the Groningen casino burned down, and the entire building and the entire building casino burned down, 2017, the Groningen in August expenses of the Groningen to be lost. The fixed are considered and inventory December) have fire (September through the period after the casino for to EUR 1.7 ‘other operating expenses’ and amounted been recognised under ngen casino over are offset by the lost profits of the Groni million. These costs Other operating expenses operating Other of income balance (on and expenses income usual other to the In addition the following: this item comprises EUR 1.5 million),
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 121 -7,612
14,396 -22,008
20.3%
2017 2017 2016 79,623 19,895 97,990 -24,510
-6 -12 -46 -457 600 1,441 -1,879 -18,008 -4,615 -19,895 -18,458 91
RECONCILIATION AMOUNT RECONCILIATION AND THE TAXABLE RESULT reserve reinvestment Fiscal creation purposes tax on disposals for Higher depreciation purposes tax for depreciation Lower provision to purposes related tax for Higher expenses amount Taxable be paid (effective) to income tax corporate current Total income tax corporate Result before differences: Permanent deductible costs Limited deduction Energy deduction Environmental exemption Investee differences: Temporary 8. CORPORATE INCOME TAX CHARGED TO THE RESULT THE RESULT TO CHARGED TAX INCOME CORPORATE 8. tax income corporate Current income tax corporate Deferred income tax corporate Total liability as of 1 January 2016. corporate income tax liability as of 1 January in the result due to Holland Casino’s was created on 1 January 2016 and recognised The deferred tax asset
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 122 373 2,319 9,781 -4,502 11,591 31-12-2017
-4 95 -204 -4,502 -4,615 Movement
- 278 2,323 11,795 14,396 1-1-2017 reinstatement value. This creates an administrative book profit in respect of theThis creates an administrative book profit reinstatement value. the insurance based on the historical cost price. As depreciation of the assets to be utilised entirely for the reconstruction and refitting of payment is expected a for this income. Casino created a fiscal reinvestment reserve new casino, Holland of the building in Groningen The deferred tax formed in 2016 for the revaluation has been recognised for the amount was released in 2017. A new deferred tax added to the reinvestment reserve. include the participation exemption pertaining to the result from its participation from its to the result pertaining exemption the participation include costs. of deductible B.V. and the limitation Gaming Support with also had to deal Holland Casino these temporary differences, Aside from will in Groningen, the insurer 2017. Due to the fire reserve in a fiscal reinvestment the basis of the estimated and inventory on damage to the building pay for the
BREAKDOWN OF DEFERRED CORPORATE INCOME TAX TAX INCOME OF DEFERRED CORPORATE BREAKDOWN assets Intangible plant and equipment Property, Provisions reserve Reinvestment income tax amount corporate Balance deferred recognised in the result due to the introduction of Holland Casino’s corporate of Holland Casino’s corporate recognised in the result due to the introduction income tax liability as of 1 January 2016. The deferred tax asset was created on 1 January 2016 for 2016 result and 1 January 2016 for 2016 result and The deferred tax asset was created on between the company valuation and the tax valuation. The fiscal provisions valuation and the tax valuation. The fiscal between the company e income tax in the corporate income tax participations liable for by making state playing field is liable this means that it For Holland Casino, as private companies. same way has end, Holland Casino 1 January 2016. To this income tax as of for corporate purposes. The balance sheet as of 1 January 2016 for tax drawn up an opening prevailing tax rates has been calculated on the basis of the corporate income tax into account the fiscal provisions that create differencesin the Netherlands, taking The Act on the modernisation of corporate income tax obligations for state- tax obligations income of corporate on the modernisation The Act overheidsondernemingen) Vpb-plicht (Wet modernisering owned companies aimed creating a level This legislation is effect on 1 January 2016. came into
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 123
90 -91 Total 3,819 4,742 4,742 6,248 -3,817 -1,507 18,173 18,262 -13,431 -12,014 - - - - - 2,090 2,090 2,090 3,817 2,090 3,817 -3,817 Assets under - - - - 294 294 448 -154 2,596 2,596 -2,302 -2,148 Software construction
- 90 -91 2,358 1,729 2,358 1,983 -1,353 -9,866 13,487 11,849 -11,129 Development costs Development online gaming market. The project was restarted and reassessed, and restarted and reassessed, and online gaming market. The project was direction. As a result of this, the old Holland Casino decided to go in another to an impairment that has been project was fully terminated, which led amount under ‘assets under recognised in the income statement. The incurred as a result of the reassess construction’ mostly pertains to the costs ment and the direction change resulting from that in the new Play Digital project. In 2017, an impairment has occurred for the Play Digital project, as a result of of the Play Digital project, as a result In 2017, an impairment has occurred for and the rapidly changingthe continued absence of relevant legislation
9. INTANGIBLE ASSETS INTANGIBLE 9. Balance as at 31 December 2017 developed – internally Investments Depreciation Impairments (cost of acquisition) depreciation) Impairments (cum. Digital Impairment Play Balance as at 31 December 2017 Cost of acquisition depreciation Cumulative Cost of acquisition depreciation Cumulative 2016 Balance as at 31 December in thousands of euro, unless otherwise indicated unless of euro, in thousands The intangible assets generally have a useful life of three years. The assets related to the Play Digital project and the IT landscape have a different useful life of five years. Holland Casino’s intangible assets consist of the capitalised costs related to a of the capitalised costs related to a Holland Casino’s intangible assets consist project Play Digital (see column number of items including: the online casino tool and the development ‘assets under construction’), the Procure-to-Pay IT landscape). The capitalised of future-proof architecture (Holland Casino’s consultancy costs and software. costs consist of internal and external hours, Notes to the balance sheet balance the to Notes
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 124
- Total Total -49,165 15,962 71,567 46,311 -27,151 -23,954 469,047 208,901 470,599 175,331 208,901 -260,146 -295,268
------38,363 25,223 53,084 25,223 53,084 53,084 -10,502 construction Assets under
9,891 6,285 1,989 Fixtures Fixtures -7,253 -7,644 21,097 21,908 24,877 24,877 -86,187 -21,396 128,224 111,064 -106,316 and fittings
- Slot -8,422 9,903 8,420 2,301 -4,151 87,918 85,248 45,575 43,420 43,420 -41,828 -10,206 -42,343 machines
Plant & 4,814 6,117 4,755 2,927 -7,008 -7,144 -5,446 28,556 27,571 27,571 -74,812 -80,238 108,794 102,383 equipment the result under revenue. the result under revenue. This damage item is covered by the insurer for the estimated reinstatement for the estimated reinstatement This damage item is covered by the insurer reached an agreement with the value of EUR 27.9 million. Holland Casino The claim has been recognised in insurer in 2017 on the amount to be paid.
8,596 2,362 5,586 -2,619 -2,826 68,098 Building 21,980 21,980 10,562 68,911 12,488 -46,118 -12,169 -56,423 conversions
- - 115 259 -170 -1,627 -2,189 -9,948 49,170 51,529 41,581 37,969 37,969 buildings -11,201 Land and 10. PROPERTY, PLANT AND EQUIPMENT PLANT PROPERTY, 10. Depreciation in use (cost of acquisition) Disposals / assets no longer depreciation) in use (cum. Disposals / assets no longer plant and equipment (cost of acquisition) Impairments property, depreciation) plant and equipment (cum. Impairments property, Balance as at 31 December 2017 Cost of acquisition depreciation Cumulative Balance as at 31 December 2017 Cost of acquisition depreciation Cumulative 2016 Balance as at 31 December Investments use into / taken Assets under construction the tangible fixed assets, excluding the land, are considered a write-off. fixed assets, excluding the land, are considered a write-off. tangible the to the new-build projects (Amsterdam West, Utrecht and Venlo), and the slot West, Utrecht and Venlo), and the slot to the new-build projects (Amsterdam million). machines not yet taken into use (EUR 12.2 of the building and inventory in The impairment pertains to the depreciation Groningen. a fire, and by In August 2017, the Groningen casino was destroyed The amount for the investment in ‘assets under construction’ is largely related is largely related amount for the investment in ‘assets under construction’ The
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 125
3 457 -210 886 1,342 1,092 15,173
31-12-2016
- 31-12-2016
777 650 236 14,396
650 15,297 31-12-2017 31-12-2017
40 974 414 236 14,283
At year-end 2016 and 2017, there were no outstanding loans, so these costs At year-end 2016 and 2017, there were no amortised’. have been recognised under ‘fees not yet
13. EQUITY-ACCOUNTED INVESTEES EQUITY-ACCOUNTED 13. investee result from differences translation Currency Balance as at 31 December 2017 Balance as at 31 December 2016 differences) translation Result Gaming Support (incl. Dividends received 12. FEES NOT YET AMORTISED YET FEES NOT 12. 11. TAX ASSETS TAX 11.
added tax Value long-term amortised, not yet Fees short-term amortised, not yet Fees assets tax Deferred income tax Corporate assets income tax Current income tax Corporate assets tax Current liabilities ensuing from any outstanding loans and amortised over the remainingliabilities ensuing from any outstanding loans term using the effective interest rate method. Costs incurred in connection with a new credit facility are deducted from the Costs incurred in connection with a new Refer to note 8 for further information on the composition of the deferred corporate income tax. Refer to note 8 for further information on the
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 126
801 3,292 3,982 3,118 3,355 1,342 13,445 1,141 31-12-2017 related to gaming tables, equipment, and any related parts. related to gaming tables, The gaming tables and equipment that Holland Casino uses in its casinos that Holland Casino tables and equipment The gaming strict laws and and subject to various specialist in nature are extremely cooperation agreement therefore signed a Holland Casino has regulations. in the Casino with support provides Holland Support B.V., which with Gaming inventory management installation and and sale, maintenance, purchase
SUMMARY FINANCIAL INFORMATION GAMING SUPPORT B.V. GAMING FINANCIAL INFORMATION SUMMARY assets Current assets Non-current liabilities Current liabilities Non-current Income Profit as at 31-12-2017 Equity Gaming Support B.V. in the Holland Casino financial statements (40% of the equity of Gaming Support B.V.) ParticipationGaming Support B.V. Holland Casino holds 40% of the shares, with the remaining shares held by a shares held shares, with the remaining holds 40% of the Holland Casino Van Linden Beheer B.V. shareholder director/majority Gaming Support B.V.’s business is the maintenance of and trade in slot of and trade in slot is the maintenance B.V.’s business Gaming Support holding company activities. as well as and other related equipment, machines
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 127 704 4,954 31-12-2016
31-12-2016 - - 704 690 877 1,967 1,420
711 35,626 31-12-2017 31-12-2017
699 851 711 2,963 1,004 2,000 28,109
slot machines and other inventory items such as brochures. slot machines and other These transactions were effected at market conditions and prices that were that were and prices market conditions effected at were transactions These third with independent agreed would be those that than favourable not more parties. Insurance claim to be settled related to the fire in Groningen in This amount pertains to the insurance claim value of EUR 27.9 million and the August 2017, for the estimated reinstatement lost profits from September through December of EUR 1.1 million. It also pertains to the fixed costs, demolition costs and other costs for a total of EUR 4.1 million less the advance payment of EUR 5.0 million by the insurance company.
15. RECEIVABLES AND ACCRUED INCOME AND ACCRUED RECEIVABLES 15. 14. INVENTORIES 14. contributions paid in advance Pension Other receivables be settled to claim Insurance Prepayments Receivables companies card credit Due from Inventories Food & Beverage activities, as well as items for use as non-cash prizes for the for use as non-cash prizes for the Food & Beverage activities, as well as items Inventories are largely consumables and raw materials for Holland Casino’s Holland Casino’s consumables and raw materials for Inventories are largely amounts are including VAT. Amounts still due to Gaming Support still due to Gaming including VAT. Amounts amounts are B.V. amounted 2017 (2016: EUR 1.5 million). million at year-end to EUR 0.9 The following transactions were effected in 2017: no sales to Gaming Support Support to Gaming no sales in 2017: were effected transactions The following sales of (in 2016: 13.8 million of EUR the amount services in use of and the These of EUR 14.5 million). in the amount and the use of services EUR 38,000 This receivable pertains to the advance payment of pension liabilities of This receivable pertains to the advance 1 month. Pension contributions paid in advance
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 128
55 27 5,618 29,699 65,771 101,088
31-12-2016
31-12-2016 2 25
14 49 9,931 34,322 19,348 63,601 31-12-2017 31-12-2017
5 44
of the Netherlands became a shareholder in Holland Casino N.V. in Holland Casino N.V. of the Netherlands became a shareholder general information on page 102. For further information, we refer you to the capital consists of 2,250 ordinary On 31 December 2017, the authorised share The issued and paid-up capital shares with a nominal value of EUR 100. amounts to EUR 45k in the form of 450 shares with a nominal value of EUR 100 each. The remainder of the equity consists of a legal reserve, a currency exchange difference reserve, a revaluation reserve and a profit reserve. Holland Casino has taken a provision (EUR 65k; previous year EUR 57k) for all EUR 57k) for all taken a provision (EUR 65k; previous year Holland Casino has outstanding for more than 90 days. debts that have been 17. Equity N.V. on 1 May 2017 through a legal Holland Casino founded Holland Casino liquidated in 2017, and the State demerger. The Foundation was subsequently 16. CASH AND CASH EQUIVALENTS EQUIVALENTS AND CASH CASH 16. AGE OF RECEIVABLES AFTER DUE DATE BUT NOT COVERED BY A PROVISION A PROVISION BY COVERED NOT BUT DATE AFTER DUE OF RECEIVABLES AGE Cash in transit casinos Cash held by Bank balances 30-60 days > 60 days past due amount of receivables Total age (days) Average The casinos have enough cash reserves to ensure the continuity of the gaming The casinos have enough cash reserves to cash that has not yet been activities. The item ‘cash in transit’ pertains deposited in Holland Casino’s bank accounts. on the bank accounts, we refer you For further information regarding the liens to note 19. The average outstanding accounts receivable was 14 days in 2017. Holland in 2017. Holland accounts receivable was 14 days The average outstanding the due date. interest on accounts receivable after Casino does not charge
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 129 Holland Casino has on the balance sheet date not yet reached agreement agreement on the balance sheet date not yet reached Holland Casino has on the dividend for 2017. with the shareholder Revaluation reserve cost approach; IFRS, Holland Casino opted for the deemed In the conversion to application of IFRS. can only be applied once in the first this is an option that of the buildings Casino has chosen to value a number In addition to this, Holland has set land holdings at fair value. The company it owns and the related for in the event that the fair aside a revaluation reserve for these buildings The revaluation pertains solely to the value is higher than the purchase value. land holdings. Unappropriated result Unappropriated year 2017 financial over the of the result Appropriation General Meeting of were adopted by the statements The 2017 financial of Sharehold ers followed The General Meeting on 24 April 2018. Shareholders board. as proposed by the of the result the appropriation
annual report. yment to of the dividend payment to The definitive agreement on the determination in 2018, an amount of EUR 42.9 million the Finance Ministry has been reached paid to the State. The net profit will be of the net profit of the year 2017 will be the provision related to the appro added to the equity in accordance with information section of this priation of profit as recorded in the additional was added to the equity in accordance with the provision related to the with the provision related to the was added to the equity in accordance additional information section of appropriation of profit as recorded in the also paid out an amount of EUR this annual report. In 2017, Holland Casino 11.5 million in interim dividends. generated by all our casinos for allocation to Equity, which is recognised as is recognised as casinos for allocation to Equity, which generated by all our ‘other reserves’. e. An amount of Finance determined the profit remittanc In 2017, the minister e. The net profit the 2016 result was remitted to the Stat of EUR 35.0 million of from the investee. The revaluation reserve is a legal reserve and pertains to to reserve and pertains reserve is a legal The revaluation from the investee. Casino has formed a assets. Holland of tangible fixed the revaluation than the fair value is higher in case the reserve for these buildings revaluation Games Decree accordance with Article 17 of the Casino acquisition value. In Articles 1996) and Article 14 of Holland Casino’s (Beschikking casinospelen net profit has been set aside from the aggregate of Association, an amount The legal reserve item comprises a legal reserve participations and a legal and a legal participations legal reserve a item comprises reserve The legal difference exchange currency costs. The development for capitalised reserve currency resulting differences of foreign to the exchange reserve pertains
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 130 65 Total Total -150 8,656 1,223 9,827 1,999 9,879 -1,862 11,826 - - 554 602 234 602 1,125 1,679 -1,311 Restructuring - - - 86 84 84 202 288 -204 Onerous Onerous contracts - - - - - 23 835 858 -858 Provision Provision AOV payments AOV 560 700 537 -347 -150 5,816 6,042 benefits 6,376 6,579 Employee Employee this, this provision has been released. this, this provision has been released. been set aside for the expected costs The provision for onerous contracts has This provision pertains to the ensuing from the termination of lease contracts. The lease for Hoofdweg 616 was locations Hoofdweg 616 and 640 in Hoofddorp. been terminated as per 1 October 2017 and this provision has been released. Per February 2018, the provision for Hoofdweg 640 will also be used. The provision for occupational disability payments has been created for payments has been created for The provision for occupational disability insurance policy. This insurance employees covered by the previous disability reaches the age of 62. Holland pays disability benefits until the employee employees reach the age of 67. Casino disburses disability payments until transfer this provision to insurance In July 2017, Holland Casino decided to accepted full liability. As a result of company ‘De Amersfoortse’, which has - - - 89 -11 costs 2,536 2,614 2,625 2,614 Decommissioning
18. PROVISIONS 18. As at 31 december 2016 part of provisions Long-term partShort-term of provisions As at 31 december 2017 part of provisions Long-term partShort-term of provisions at 31 december 2016 Balance as Addition/release Withdrawals Unwind of discount 2017 Balance as at 31 december young participants will leave the company. In addition to this, the discount In addition to this, the discount young participants will leave the company. in 2016. The withdrawals from the rate was reduced to 1.3% in 2017, from 1.4% provision pertain to long-service awards actually paid out in 2017. The valuation of this provision takes into account factors such as mortality rates and the likelihood of employees leaving the company. to cover the costs that will be incurred in this scenario. to cover the costs that will be incurred in created to cover future long-service The provision for employee benefits was provision in 2017 was largely a award liabilities. The addition made to this and the greater likelihood that result of the increase in the number of FTEs The decommissioning provision has been set aside to cover the costs of set aside to cover the costs of The decommissioning provision has been of the premises currently occupied the (potential) closure and dismantling Rotterdam, Schiphol and Utrecht. by Holland Casino Eindhoven, Nijmegen, to new premises in 2019 upon Holland Casino Utrecht is expected to relocate This provision has been set aside which the current casino will be dismantled.
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 131
- 2,018 15,980 17,998
31-12-2016
312 4,861 10,807
- 4,502 20,136 15,634 31-12-2017
- 4,823 10,811
In 2017, Holland Casino paid an amount of EUR 1.3 million for this provision. provision. for this 1.3 million of EUR an amount Casino paid Holland In 2017, to the Pensioenburo 2018, and pertains primarily will be settled in The provision fund). to another pension with the transfer (in connection Costs incurred in connection with a new credit facility are deducted from the from the with a new credit facility are deducted Costs incurred in connection term on loans and amortised over the remaining liabilities from outstanding and 2017, Holland interest method. At year-end 2016 the basis of the effective under ‘fees loans so these costs were recognised Casino had no outstanding the asset side of the balance sheet). not yet amortised’ (on are tested on its banks have drawn up covenants, which Holland Casino and in 2016 and 2017. Casino complied with all covenants an annual basis. Holland
20. TAX TAX LIABILITIES 20.
Deferred tax liabilities tax Deferred income tax corporate Deferred liabilities tax Current income tax Corporate liabilities tax Other current Gaming tax tax Payroll Other taxes
provision in connection with the closure of Holland Casino Schiphol Casino Schiphol closure of Holland connection with the provision in 2017). (13 March In 2017, Holland Casino made a contribution of EUR 0.2 million to the restricting restricting million to the EUR 0.2 of a contribution Casino made Holland In 2017, At year-end 2017, Holland Casino had no provisional tax liabilities. Taking into account the room for bank guarantees amounting to EUR 9.5 million,the room for bank guarantees amounting Taking into account amounted to EUR 130.5 million at the unused portion of the credit facility million). year-end 2017 (year-end 2016: EUR 130.5 At year-end 2017, the credit facility amounted EUR 140 million, consisting of consisting of credit facility amounted EUR 140 million, At year-end 2017, the facility (EUR 110 30 million) and a revolving credit an ancillary facility (EUR (between rate is set on the basis of EURIBOR + margin million). The interest 0.95% and 2.0%). 19. Loans and borrowings 19. Loans and of the 2017 no outstanding bank loans at the end Holland Casino had financial year.
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 132
- 88,640
31-12-2016 - 7,458 2,730 1,463 6,115 2,685 6,693 8,001 29,006 15,523 11,696
29 4,138 2,730 85,423 31-12-2017
- 29 928 4,138 2,797 7,191 8,120 25,375 17,771 12,199 11,042
the amount of EUR 3.0 million (previous year: EUR 2.9 million). the amount of EUR 3.0 million (previous The item ‘Other liabilities’ includes the liability for the loyalty programme in for the loyalty programme in The item ‘Other liabilities’ includes the liability
21. TRADE PAYABLES AND OTHER LIABILITIES AND OTHER TRADE PAYABLES 21. Other current liabilities Other current Lease incentives Holiday days, holiday pay and salaries pay holiday days, Holiday fund Holland Casino pension Liability to Jackpots liability Uncashed chips investments Outstanding costs Outstanding Other liabilities liabilities Other non-current Lease incentives and other payables Trade payables Trade Gaming Support to Debts payable The item lease incentives pertains to the lease discounts on the buildings in lease discounts on the buildings in The item lease incentives pertains to the recognised over the term of the lease. Amsterdam and Rotterdam. These will be
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 133
------> 5 years > 5 years 6.2 6.0 0.7 2.0 1.1 14.5 < 5 years < 5 years > 1 year en > 1 year > 1 year en > 1 year
5.1 6.7 4.1 0.7 4.0 - 8.9 - 0.7 10.8 32.0 46.9 19.3 - - 58.3 11.4 41.9 58.3 30.1 50.8 41.6 53.6 46.9 < 1 year < 1 year
1.4 6.0 8.9 1.8 11.3 89.7 21.2 10.1 19.3 111.6 142.1 139.2 Total 2016 Total 2017 Total
Holland Casino leases cars on the basis of operational leases with a maximum Holland Casino leases cars on the basis term of five years. Framework agreement Playtech In 2014, Holland Casino entered into a framework contract with Playtech for the development of the intangible asset Play Digital (its online casino platform). The contract stipulates that a forecast should be made each year for the of EUR 6.0 million in lease payments to In 2017, Holland Casino charged a total its result.
buildings buildings 22. OFF-BALANCE SHEET ASSETS AND LIABILITIES ASSETS SHEET OFF-BALANCE 22.
Investments Liabilities arising from: Rent Lease slot machines Lease cars IT services Investments in millions of euro euro in millions of Liabilities arising from: Rent Lease slot machines Lease cars IT services an amount lower than the fair value. At year-end 2017, Holland Casino had an amount lower than the fair value. At year-end 2017, Holland Casino had bought out three contracts (two of which in 2016); these slot machines have been capitalised under tangible fixed assets (note 10). Rent due for renewal no later than Holland Casino’s rental agreements are 31 December 2032. Lease machines on the basis of Since 2014, Holland Casino has leased slot term of five years. Holland operational lease agreements with a maximum machines, but not by definition for Casino has the right to purchase the slot
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Categories and fair values loans and receivables, while Financial assets are recognised in the category category other financial liabilities. financial liabilities are recognised in the liabilities are virtually the same as The fair value of the financial assets and the carrying amount. The lost profits following the Groningen casino fire are covered by the insurance the Groningen casino fire are covered The lost profits following date, there period of 104 weeks. As per the reporting policy for a maximum as filed with the on the total settlement of this claim was no final agreement period September assumes that the lost profits for the insurer. Holland Casino insurer. For the 2017 will at least be compensated by the through December was definitively period after the reporting date, the claim lost profits over the the insurer had 2018. This claim (EUR 23.9 million) on settled on 23 February at the reporting date. therefore not been recognised risk management framework23. Financial instruments - fair value and Holland Casino is exposed to In the context of its normal business operations, Casino did not change its risk credit, liquidity and market risks. Holland management compared to previous year. risk management of Holland The Executive Board is responsible for the Supervisory Board with support Casino. The audit committee provides the risk management and control in the supervision of Holland Casino’s internal consists of Mrs. R. Dekker systems and financial reporting. This committee In 2017, the committee met four times (chairman) and Mrs. M. M. van Zuijlen. with at these meetings included for regular meetings. The main issues dealt policy. the annual report and the profit remittance developed by the owner as well as the outside area and the car park. Delays park. Delays the car area and the outside as well as owner by the developed not being the building in resulted unfortunately have the construction during 2018. Holland Casino has not opening until in time and the casino completed further legal action. and is considering owner notice of default issued the Groningen Insured interest
ision as per not set aside a provision as per material outflow of funds and had therefore the reporting date. Holland Casino closed a lease agreement with the owner of the “Ven complex” on the new casino in Amsterdam West. The hull was to be (2016: EUR 19.3 million). Legal disputes pending at the balance sheet Holland Casino had several legal disputes liability claims to result in a date. Holland Casino does not expect these comply with the requirements of these guarantees in the next 12 months given comply with the requirements of these guarantees the strong solvency of the company. Investments for regular investments and Holland Casino had entered into obligations 8.9 million at the reporting date investment projects for approximately EUR A total of EUR 9.5 million in bank guarantees (2016: EUR 9.0 million) have been in bank guarantees (2016: EUR 9.0 million) A total of EUR 9.5 million with the requirement of the issued (including EUR 6.5 million in accordance for the lease of the building in Dutch Central Bank (DNB), EUR 1.0 million of large amounts of operatingAmsterdam and EUR 2.0 million for the withdrawal little chance that it will have to cash). Holland Casino believes there is very In 2014, Holland Casino entered into a five-year contract with KPN for the entered into a five-year contract with In 2014, Holland Casino printing In 2016, Holland Casino added multi-functional provision of IT services. equipment to this contract. Bank guarantee This contract will come into force as soon as the Dutch remote gaming law law Dutch remote gaming as soon as the will come into force This contract being law and revenues are has passed into op afstand - Koa) (Kansspelen generated. Other obligations expected gross gaming revenues, which Playtech will use to invoice according according to invoice will use Playtech which gaming revenues, gross expected to of (by means quarter each be adjusted payment will The scale. a graduating gross gaming revenues. basis of the actual credit invoice) on the a debit or
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 135
Holland Casino charges transaction costs on currency exchangeHolland Casino charges transactions and rate exchange rates, which absorbs any exchange applies a margin to the ahead (the maximum period between fluctuations for a week moment the funds are deposited). transaction and the
Sensitivity analyses ◊ ◊ result in the recorded a positive currency exchange In 2017, Holland Casino under other (2016: EUR 1.0 million); this is recognised amount of EUR 1.1 million currency exchange result income in the income statement. The positive currency risk sufficiently. shows that Holland Casino mitigates its Interest rate risk event of changes in the value ofInterest rate risk is the risk that is run in the in market interest rates. Hollandfinancial instruments as a result of changes managing its net financing costsCasino’s interest rate risk policy focuses on rates. Holland Casino has a creditensuing from fluctuations in market interest shortages. Given Holland Casino’sfacility in the event of the threat of liquidity chosen not to hedge this credithealthy liquidity position, the company has Holland Casino therefore held nofacility using (derivate) financial instruments. derivatives as per the balance sheet date. Currency risk Currency (foreign)currency for foreign tokens for chips and exchanges Casino Holland is currency cash the fact that this foreign casinos. In view of guests in its risk of Casino does run the Holland deposited with GWK-Travelex, periodically this currency risk. To hedge exposed to rate losses, and is therefore exchange measures: Casino takes the following risk, Holland Changes in currency exchange rates have little impact on the results of HollandChanges in currency exchange rates have Changes in interest ratesCasino due to the above-mentioned measures. Casino due to the fact that as perhave little impact on the results of Holland 31-12-2017, the company had no interest-bearing payables or receivables on its balance sheet.
Credit risk Credit At year-end 2017, Holland Casino had no positions in derivatives. At year-end 2017, Holland Casino had no Market risk income or the value of financialMarket risk refers to the risk that Holland Casino’s in market prices, such asinstruments are negatively affected by changes share prices. Holland Casino strivescurrency exchange rates, interest rates and boundaries while optimising returns.to keep its market risk within acceptable the company no longer hedges this risk using (derivate) financial instruments.the company no longer hedges this risk using Casino’s liquidity in note 24 on capital You will find more information on Holland management. At year-end 2017, Holland Casino had a large amount of cash or cash equivalentsAt year-end 2017, Holland Casino had a large accounts with ABN AMRO Bank and ING (EUR 63.6 million, with EUR 19.3 million in EUR 140 million. Bank) and an available credit facility of therefore limited and as per 31-12-2017Holland Casino’s exposure to liquidity risk is Liquidity risk in meeting its that Holland Casino will encounter difficulty Liquidity risk is the risk paid in cash or other financial assets. financial obligations are limited in size, which limits this risk. To keep this risk limited, Holland Casino Casino risk limited, Holland this risk. To keep this in size, which limits are limited clients with an adequate sure only business measures to make has initiated Cash casinos on account. can visit the in terms of creditworthiness reputation currencies) exchange transactions involving foreign transactions (including carrying amount highly-qualified credit institutions. The are only effected with represents the maximum credit risk. of the financial assets a client fails to fails to when a client Casino to Holland loss risk of financial risk is the Credit outstanding receivables Holland Casino’s contractual obligations. meet their
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 136 0.1 12,557 20,106 108,637 121,194 101,088 184,282 0.3 17,296 56,004 63,601 102,309 119,605 211,265 31-12-2017 31-12-2016
In view of its current liquidity position, Holland Casino had no outstanding Casino had no outstanding In view of its current liquidity position, Holland 31-12-2017 to hedge its liquidity and (derivative) financial instruments as per market risk. reporting date and will remit EUR 42,9 million from the result for 2017. will remit EUR 42,9 million from the result reporting date and Holland Casino’s of borrowed capital to equity is part of Determining the ratio This was as follows: capital management. credit facility with total credit of EUR 140 million, which had still not been used been used had still not which 140 million, of EUR total credit facility with credit banking credit facility with a entered into this 2017. Holland Casino by year-end (50%). (50%) and ABN AMRO consisting of ING consortium the Finance ministry after with the has reached agreement Holland Casino
24. CAPITAL MANAGEMENT CAPITAL 24. Equity Net liabilities / equity ratio liabilities Non-current liabilities Current liabilities Total Cash and cash equivalents Less: Net liabilities maintaining this solid financial position. lland Casino equity confirms that Holland Casino The current ratio of borrowed capital to future policy will be aimed at has maintained its solvency. Holland Casino’s and sustainable returns, in October 2015 Holland Casino arranged a new a new in October 2015 Holland Casino arranged and sustainable returns, employees, the government, potential investors and other stakeholders. other stakeholders. investors and the government, potential employees, the company’s business development of safeguards the future This in turn consisted of share Casino’s capital At year-end 2017, Holland activities. and other reserves. capital, legal reserves to realise higher that will enable the company In order to make investments 24. Capital management 24. Capital a on maintaining is focused policy management capital Casino’s Holland society as a whole, among confidence in position that inspires strong equity
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 137
note Relevant (see below) directors Remuneration Supervisory (see below) Board Remuneration on page 64 scheme Pension See below See pages 125 till 127 earnings on page 129 Retained on page 129 Dividend payment Holland Casino has an interest in a participation (Gaming Support B.V.), (Gaming Support B.V.), Holland Casino has an interest in a participation but does not exercise decisive control in which it exerts significant influence, policies. Transactions with this in terms of business operations or financial and at prices that are not more party are executed under market conditions with independent third parties. favourable than those that would be agreed is recognised as a related On the basis of this relationship, this participation of the main relationships with party. The table above provides an overview related parties.
Shareholder / dividends Shareholder transactions and relevant of the relationship Nature members remuneration Board Executive Supervisory remuneration membership Board costs Pension tips Gaming and non-gaming contracts / maintenance investee Equity-accounted / dividends Pseudo-shareholder RELATED PARTIES PARTIES RELATED The State of the Netherlands (from 1 may 2017) 1 may Netherlands (from of the State The Related parties Related Board Executive Supervisory Board fund (until 1 july 2017) Holland Casino pension Beheer Fooiengelden Stichting Gaming Support 2017) Netherlands (until 1 may of the State The consolidated financial statements. The Executive Board in Holland Casino’s directors acting on behalf of Holland of the SBF consists of four directors, two of the trade unions. Casino and two directors acting on behalf both Holland Casino and its employees. This makes the SBF inextricable from This makes the SBF inextricable from both Holland Casino and its employees. transfers all the tips received to Holland Casino. Each week, Holland Casino is repaid to Holland Casino once all the SBF and the remaining bank balance sheet date, the balance of the salaries have been paid. As per the balance million. This amount has been SBF bank account amounted to EUR 3.9 The Stichting Beheer Fooiengelden (SBF), the organisation responsible for the organisation responsible for The Stichting Beheer Fooiengelden (SBF), tips, is a 100% Holland Casino the management of gaming and non-gaming of the SBF is to execute the cash tip subsidiary in economic terms. The goal labour agreement, such on behalf of regulation as included in the collective
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 138
-
- - - - - 18.2 18.6 20.8 82.9 37.6 11.7 228.1 204.2 350.4 271.7 - - - - - 9.8 22.3 14.5 46.6 20.6 33.8 2016 2017 249.6 174.9 339.1 233.0
1 2 1 3 1 fixed salary fixed salary fixed salary fixed pension costs pension costs pension costs variable salary variable variable salary variable variable salary variable other remuneration other remuneration other remuneration
The 2016 amount includes the payment of death benefits and the settlement of holiday entitlements. The 2016 amount includes the payment 3.5 percent over 2016 as part for company cars, social security premiums and a one-time payment of This amount includes additional tax liability of the collective labour agreement. payment is made in the subsequent financial year. financial year, while payment is made in the subsequent financial Variable salaries are based on the current DIRECTORS
1-5-2017) from at Chamber of Commerce 21-3-2017 and registered (from Bergervoet R.J. Drs. 22-12-2016) de Kleijn (to A.M.J.H. drs. Mrs. Directors 7-3-2016) Lambaart van (from E.
3 1 2 Remuneration key management personnel Holland Casino Holland personnel key management Remuneration Holland Casino’s key management personnel consist of its directors and supervisory directors. supervisory and of its directors consist personnel key management Casino’s Holland
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 139 - 1.4 2.0 1.4 9.3 8.6 2016 26.4 10.3 20.7 20.7 100.8
- - - 2.0 2.8 29.6 21.7 21.4 21.7 21.1 2017 120.3
4 4 4 4 4 4 4 fee Committee fee Committee fee Committee Supervisory fee membership Board Supervisory membership fee Board Supervisory membership fee Board Supervisory fee membership Board Supervisory fee membership Board Supervisory fee membership Board Supervisory fee membership Board
The remuneration for supervisory directors in 2017 includes a structural increase of 2.0% and a one-time payment of 3.5% over 2016. in 2017 includes a structural increase of 2.0% and a one-time payment of 3.5% The remuneration for supervisory directors SUPERVISORY DIRECTORS SUPERVISORY 20-7-2016) (from Dekker R.E. drs. Mrs. Roks P.F. Mr. 19-12-2016) Baud (from J.W. Mr. Supervisory directors 1-12-2016) (to Schouwenaar A. Drs. 20-7-2016) (from Bröcker W.L.J. Mr. 1-7-2016) (to Schaapveld A.E.J.M. drs. Mrs. Zuijlen van M.M. drs. Mrs.
4 or the Supervisory Board. advances or guarantees on behalf of the members of the Executive Board Holland Casino has not extended any loans, The remuneration for supervisory directors includes a fee for expenses. The remuneration for supervisory directors
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 140
Supervisory Board: Mr. W.L.J. Bröcker Mr. W.L.J. Bröcker Mrs. M.M. van Zuijlen Mrs. R.E. Dekker Mr. P.F. Roks Mr. J.W. Baud
Support B.V. The remaining shares in both companies are held by Linden by Linden shares in both companies are held Support B.V. The remaining Beheer B.V.. 2018 Hoofddorp, 24 April Executive Board: cluding activities, including Support B.V.’s 2018, part of Gaming On 3 January B.V., transferred to a new activities, were and maintenance (pre)installation shares purchased 60% of Holland Casino has Casino Services B.V. Gaming & 40% of shares in Gaming B.V., and also holds & Casino Services in Gaming E. van Lambaart R.J. Bergervoet
the building and inventory are considered lost. In 2017, the total insured damages the total insured considered lost. In 2017, and inventory are the building the claim for lost profitsWith the exception of with the insurer. were claimed in 2017. was reached for this an agreement insured interest coverage, under the of the insuredan agreement was also reached on the scope On 23 February 2018, approved a claim of EUR 23.9 million.interest, and the insurer Subsequent events Subsequent and burned down, 2017, the casino in Groningen morning 27 August On Sunday
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If the proposal described in the last sentence of article 10.4 is rejectedIf the proposal described in the last sentence if the Executive Board has not submitted a proposal for an interim if the Executive Board has not submitted indicates that the requirements of article 10.1 have been met.indicates that the requirements of article the position of the equity at theThe interim equity statement pertains to before the month in whichearliest on the first day of the third month the resolution to payment is announced. It is put together in compliance with measurement methods considered acceptable in society. The equity statement amounts are recognised in accordance with the laws and statutes. They are signed by the members of the executive board and the may decide to reserve profit or distribute said profit to the shareholders. profit or distribute said profit to the may decide to reserve exceptionprofits of the current fiscal year. With the reserves or from the the previous in article 10.5, the resolution cited in of the situations described that hasproposal to do so from the Executive Board sentence requires a by the Supervisory Board. been approved in advance Board, may submit a written request to the Executive The General Meeting previous for payment as referred to in the asking it to make a proposal a proposal for payment bysentence. If the General Meeting has rejected can submit a new written request,the Executive Board, the General Meeting for an interim paymentasking the Executive Board to submit a proposal be approved by the Supervisorywithin eight weeks, which proposal should year without a prior proposalreserves or the profits of the current financial from the Executive Board: by the General Meeting; and within six months of receivingpayment approved by the Supervisory Board a written request for same. r provisions of the other provisions without prejudice to this is justified, such that shows of association. these articles An interim payment is only permitted if an interim equity statementAn interim payment is only permitted if an The General Meeting is free to decide on an interim payment from theThe General Meeting is free to decide on The profit is at the disposal of the General Meeting. The General Meetingthe General Meeting. is at the disposal of The profit The General Meeting can resolve to make an interim payment from the can resolve to make an interim payment The General Meeting
10.6 10.7 10.4 Board. 10.5 a. b. 10.3
Distribution of profit occurs after the adoption of the financial statements prizes and running costs, shall be remitted to the state, where applicable prizes and running costs, shall be remitted to be allocated to equity, such after deduction of any retention of profit and insofar as liquidity so subject to approval of the Finance Ministry the N.V. shall submit a Within one month of the end of each quarter, Gaming Commission on report to the Finance Ministry and the Dutch any other information the Ministry the N.V.’s financial position and furnish may require with all the information it The N.V. is required to supply the Ministry if necessary. requires, accompanied by an auditor’s report greater than the amount of the issued and paid-up capital, plus the reserves that must be maintained by virtue of the law. this being the difference between gross income and the sum of cash this being the difference between gross operations undertaken under this license, The net profit generated by all operations undertaken under this license, The company may only make payments to shares insofar as its equity is
Profit appropriation ancial year for the financial year the financial statements Board signed The Supervisory 2018. The Supervisory on 24 April them for publication 2017 and released to the General statements for adoption present the financial Board will 2018. Meeting on 24 April 10.2 Article 10 Articles of Association 10.1 17.3 permits. 17.2 Article 10 of the Articles are relevant to the appropriation of profit/loss. Article 10 of the Articles are relevant to the Article 17 of the Casino Games Decree 17.1 The Casino Games Decree 1996 and the Holland Casino Articles of Association 1996 and the Holland Casino Articles The Casino Games Decree Economic AffairsMay 2017. These form the final part of the were amended on 1 with the responsibility for casino games, together Ministry’s transfer of policy and Justice and policy desired by the Security distinction between governance Decree and Ministry. Article 17 of the Casino Games Ministry and the Finance Other information Other
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 142
This agreement has been recognised in the financial statements. Holland Casinobeen recognised in the financial statements. This agreement has over 2017. announcement regarding the profit remittance has not yet made an These articles of association do not include a provision relating to losses. In the to provision relating include a do not association articles of These is Any negative equity from the equity. these are deducted event of losses, financial year. net result over the year by the positive reduced each to the Finance Ministry. of the profit from 2016 remitted a part Holland Casino was added to the equity.the remittance of profit remaining following The profit
from the required payment to the nominal amount of shares is eligible. to the nominal amount of shares from the required payment decides on another day. the General Meeting and are added to the reserves.claimable are retained by the company partly or entirely in a form other than cash. in a form other partly or entirely unless these company do not count, in its capital by the shares held or a right receipts for shares have a right of usufruct shares or depositary to which the party other than the company, pursuant of lien on behalf of a paid to the holder of the right usufruct or lien. entitlement profit is members of the supervisory board. If the signature of one or more of one If the signature board. supervisory of the members noted with the reason.is missing, that will be members The General Meeting is authorised to decide if a payment will be made to decide if a payment Meeting is authorised The General paid on shares, the of the amount to be of the division In the calculation At the calculation of the amount to be paid to each share, only the amountthe amount to be paid to each share, only At the calculation of unless adopted, being after days thirty than later no payable are Payments becomingnot been settled five years and a day after Payments that have
10.10 10.11 10.12 10.9 10.8
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 143
described in the ‘Our responsibilities for the audit of the financial statements’ responsibilities for the audit of the financial described in the ‘Our section of our report. the Wet toezicht of Holland Casino N.V. in accordance with We are independent the Verordening (Wta, Audit firms supervision act), accountantsorganisaties van accountants bij assurance-opdrachten inzake de onafhankelijkheid with respect to for Professional Accountants, a regulation (ViO, Code of Ethics in the other relevant independence regulations independence) and with the Verordening gedrags- enNetherlands. Furthermore, we have complied Code of Ethics). beroepsregels accountants (VGBA, Dutch obtained is sufficient and appropriate We believe the audit evidence we have to provide a basis for our opinion. Basis for our opinion Basis for our law, including the Dutch with Dutch our audit in accordance We conducted further standards are under those on Auditing. Our responsibilities Standards
the balance sheet as at 31 December 2017; statement, the the following statements for 2017: the income changes in equity and statements of other comprehensive income, cash flows; and accounting policies and other the notes comprising a summary of the explanatory information. and with Part 9 of Book 2 of the Dutch Civil Code. and with Part 9 of Book 2 of the Dutch Civil What we have audited Our opinion a true and fair financial statements give In our opinion the accompanying 31 December 2017 position of Holland Casino N.V. as at view of the financial International cash flows for 2017, in accordance with and of its result and Union (EU-IFRS) Standards as adopted by the European Financial Reporting To: the General Meeting of Shareholders and the Supervisory Board of Supervisory Board of and the Meeting of Shareholders To: the General N.V. Holland Casino included in of the financial statements 2017 Report on the audit the annual report 3 The financial statements comprise: The financial statements comprise: 1 2 N.V. 2017 of Holland Casino N.V. We have audited the financial statements Netherlands. (the ‘Company’) based in The Hague, the Independent auditor’s report auditor’s Independent
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 144
cated the key audit matters to the Supervisory Board. The key audit cated the key audit matters to the Supervisory benchmark that gives fair representation of the scope of the company’s business fair representation of the scope of the company’s benchmark that gives possible taken into account misstatements and/or activities. We have also the financial our opinion are material for the users of misstatements that in reasons.statements for qualitative excess of EUR Board that misstatements in We agreed with the Supervisory to them, as during the audit, would be reported 300.000 which are identified on qualitative that in our view must be reported well as smaller misstatements grounds. Our key audit matters in our professional judgement, Key audit matters are those matters that, the financial statements. We have were of most significance in our audit of communi of all matters discussed. matters are not a comprehensive reflection of our audit of the financial These matters were addressed in the context opinion thereon, and we do not statements as a whole and in forming our provide a separate opinion on these matters. Materiality the the materiality for we determined professional judgement Based on our The(2016: EUR 6.0 million). at EUR 6.0 million statements as a whole financial after (gross revenues to net revenue is determined with reference materiality We consider net revenue it represents 1.3%. of gaming tax) of which deduction stable the years been a as this has over appropriate benchmark as the most Accounting for fire location Groningen Accounting for fire Cash and cash equivalents UNQUALIFIED OPINION Materiality of EUR 6.0 million Materiality of EUR 6.0 net revenue 1,3% of EUR 469 million
◊ Key audit matters ◊
Materiality ◊ ◊ Audit approach Audit Summary
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 145 CASH AND CASH EQUIVALENTS AND CASH CASH ear, we made a In the course of the year, we made a processing procedures and camera supervision. the segregation of duties in the cash counting procedures, procedures had been followed and the outcome and cash equivalents to ensure that visits to attend the counting of cash number of unannounced and these cash ledgers were in agreement. the financial administration cash ledgers. We also determined that was recorded in the Our observation and completeness of the cash and we obtained sufficient audit evidence with respect to the correctness Based on the procedures we carried out, of the financial year. balance of the inventories of cash and cash equivalents at the end cash equivalents transactions and the Description our audit is to of the core tasks of to fraud, one the related sensitivity equivalents in circulation, and of cash and cash significant amount Due to the being held by cashiers at the casinos. plus the cash and cash equivalents and completeness of these transactions, determine the accuracy Our response availability control measures with respect to the of the functioning of the internal primarily on testing the effectiveness Our audit activities concentrated These internal control measures include the daily the supervision of the cash processing. cash and cash equivalents, as well as and safekeeping of
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 146
ACCOUNTING FOR FIRE LOCATION GRONINGEN FOR FIRE LOCATION ACCOUNTING include an adequate explanation of the consequences of the processing of the fire. include an adequate explanation of the Our response by th the write-down on the assets destroyede fire and Holland and completeness of on the assessment of the accuracy Our activities concentrated the statement. In addition to this, our auditactivities focused on to the fire in its income and classification of the costs related Casino’s processing damage and loss of income. These audit activities of the extent to which the insurer would award the fire assessment of the estimation of the likelihood the insurer at year-end with the policy terms and conditions, assessing the status of the negotiations with primarily involved taking cognisance of insurance. Finally, we tested the financial and assessing the settlement agreement for the fire and loss of income respect to the fire damage insurance of same in the financial statements. insurer of the fire and loss of income damage and the explanation processing of the compensation by the Our observation statements and that said statements consequences of the fire were incorporated correctly in the financial We have determined that the financial Description insurance e with the a dialogu Casino entered into after the fire, Holland down. During the period in Groningen burned 2017, the casino On 27 August Holla building and inventory. At year-end,nd Casino had and the fire damage to the the compensation for the loss of income company regarding reached at year-end no agreement had yet been with respect to fire damage. However, with the insurer on the settlement of the reached agreement not the approval of the claim for lost income, Holland Casino did nt certainty regarding loss of income. Since there was insufficie the settlement of the assets of same in the off-balance sheet . and included an explanation in the financial statements for 2017 recognise a receivable
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 147
9 of Book 2 Part 9 of Book 2 in accordance with EU-IFRS and of the financial statements responsible for Furthermore, the Executive Board is of the Dutch Civil Code. to enable the as management determines is necessary such internal control material statements that are free from preparation of the financial due to fraud or error. misstatement, whether Executive Board is of the financial statements, the As part of the preparation as a going the Company’s ability to continue responsible for assessing frameworks mentioned, the concern. Based on the financial reporting statements using the going Executive Board should prepare the financial Executive Board either intends to concern basis of accounting unless the or has no realistic alternative liquidate the Company or to cease operations, disclose events and circumstances but to do so. The Executive Board should company’s ability to continue as a that may cast significant doubt on the going concern in the financial statements. overseeing the Company’s financial The Supervisory Board is responsible for reporting process. Description of responsibilities regarding the financial the regarding of responsibilities Description statements for the Supervisory board Board and the of the Executive Responsibilities statements financial fair presentation is responsible for the preparation and The Executive Board
contains the information as required by Part 9 of Book 2 of the Dutch as required by Part 9 of Book 2 of the contains the information About Holland Casino (pages 9 through 36); 9 through 36); Casino (pages About Holland 72); (pages 37 through the Executive Board Report of 73 through 94); Governance (pages (pages 141 through 149). Additional information is consistent with the financial statements and does not contain material financial statements and does not contain is consistent with the Civil Code. The introduction to the annual report (pages 2 through 8); 8); report (pages 2 through to the annual The introduction
Report on the other information included in the annual report the annual in included information on the other Report The Executive Board is responsible for the preparation of the other information, The Executive Board is responsible for the with Part 9 of Book 2 of the including the information required in accordance Dutch Civil Code. By performing these procedures, we comply with the requirements of Part 9 with the requirements of Part 9 By performing these procedures, we comply Dutch Standard 720. The scope of of Book 2 of the Dutch Civil Code and the less than the scope of those the procedures performed is substantially statements. performed in our audit of the financial on our knowledge and understandingWe have read the other information. Based statements or otherwise, we haveobtained through our audit of the financial contains material misstatements.considered whether the other information Based on the following procedures performed, we conclude that the other that the other procedures performed, we conclude Based on the following information: ◊ misstatements; ◊ ◊ ◊ ◊ ◊ ◊ In addition to the financial statements and our auditor’s report thereon, the and our auditor’s to the financial statements In addition of: that consists contains other information annual report
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 148
Appendix: Description of our responsibilities for the audit of the annual accounts R.R.J. Smeets RA Smeets R.R.J. description forms part of our auditor’s report. The Hague, 24 April 2018 KPMG Accountants N.V. statements. The materiality affects the nature, timing and extent of our audit of our audit affects the nature, timing and extent statements. The materiality of identified misstatements on procedures and the evaluation of the effect our opinion. for the audit of the financial A further description of our responsibilities to this auditor’s report. This statements is included as an attachment audit. material if, arise from fraud or error and are considered Misstatements can to aggregate, they could reasonably be expected individually or in the of these financial decisions of users taken on the basis influence the economic Our objective is to plan and perform the audit engagement in a manner that that in a manner the audit engagement is to plan and perform Our objective evidence for our opinion. and appropriate audit to obtain sufficient allows us level of assurance, performed with a high, but not absolute, Our audit has been during our not detect all material errors and fraud which means we may Our responsibilities for the audit of the financial statements of the financial for the audit Our responsibilities
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 2017 STATEMENTS FINANCIAL 149 ying ying the underl represent statements the financial whether evaluating transactions and events in a manner that achieves fair presentation. that achieves and events in a manner transactions
We provide the Supervisory Board with a statement that we have complied with Board with a statement that we We provide the Supervisory to communicate regarding independence, and relevant ethical requirements be thought and other matters that may reasonably with them all relationships safeguards. and where applicable, related to bear on our independence, we determine the with the Supervisory Board, From the matters communicated in the audit matters that were of most significance key audit matters: those these matters in our auditor’s report of the financial statements. We describe disclosure about the matter or when, unless law or regulation precludes public the matter is in the public in extremely rare circumstances, not communicating interest. ◊ among other matters, Board regarding, with the Supervisory We communicate the including audit findings, audit and significant and timing of the planned scope audit. identify during our control that we findings in internal any significant
evaluating the overall presentation, structure and content of the evaluating the overall presentation, structure and content of the concluding on the appropriateness of the Executive Board’s use of the Executive Board’s use of the concluding on the appropriateness of the obtaining an understanding of internal control relevant to the audit in control relevant to the audit in obtaining an understanding of internal policies used and the evaluating the appropriateness of accounting audit evidence obtained up to the date of our auditor’s report. However, of our auditor’s report. However, audit evidence obtained up to the date a company to cease to continue future events or conditions may cause as a going concern; financial statements, including the disclosures; and tinue as on t’s ability to continue as conditions that may cast significant doubt material uncertainty exists, we a going concern. If we conclude that a report to the related are required to draw attention in our auditor’s or, if such disclosures are disclosures in the financial statements conclusions are based on the inadequate, to modify our opinion. Our performing audit procedures responsive to those risks, and obtaining obtaining responsive to those risks, and performing audit procedures a basis for is sufficient and appropriate to provide audit evidence that resulting of not detecting a material misstatement our opinion. The risk may than the risk resulting from error, as fraud from fraud is higher or intentional omissions, misrepresentations, involve collusion, forgery, control; the override of internal appropriate in the order to design audit procedures that are of expressing an opinion on the circumstances, but not for the purpose control; effectiveness of the the Company’s internal and related disclosures made reasonableness of accounting estimates by the Executive Board; based on the audit evidence going concern basis of accounting, and exists related to events or obtained, whether a material uncertainty identifying and assessing the risks of material misstatement of the of the the risks of material misstatement identifying and assessing and whether due to fraud or error, designing financial statements,
◊
◊ ◊ ◊
Auditing, ethical requirements and independence requirements. Our audit audit requirements. Our and independence requirements Auditing, ethical others: included among ◊ Appendix maintained professional judgement and have professional We have exercised on Dutch Standards in accordance with throughout the audit, scepticism
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION LOCATIONS 151 Valkenburg
Casino
Holland Casino Zandvoort Badhuisplein 7 2042 JB Zandvoort (023) 574 05 74 Holland Casino Scheveningen Kurhausweg 1 2587 RT Den Haag (070) 306 77 77 Holland Casino Utrecht 2 Overste den Oudenlaan 3527 KW Utrecht (030) 750 47 50 Holland Magalhaesweg 4 5928 LN Venlo (077) 750 26 00 Kuurpark Cauberg 28 6301 BT Valkenburg a/d Geul (043) 609 96 00 Holland Casino Venlo Nijmegen
Casino
Holland Casino Rotterdam Weena 624 3012 CN Rotterdam (010) 206 82 06 Holland Casino Enschede Boulevard 1945 105 7511 AM Enschede (053) 750 27 50 Holland Casino Groningen (closed due to fire) 150 Gedempte Kattendiep 9711 PV Groningen (050) 317 23 17 Holland Casino Leeuwarden Heliconweg 56 8914 AT Leeuwarden (058) 750 22 22 Holland Waalkade 68 6511 XP Nijmegen (024) 381 63 81
La Guardiaweg 61 1043 DE Amsterdam Holland Casino Breda (020) 521 11 11 Holland Casino Amsterdam West (opening in 2018) (023) 565 95 65 Holland Casino Amsterdam Max Euweplein 62 1017 MB Amsterdam Holland Casino Head Office Holland Casino Head Neptunusstraat 71 2132 JP Hoofddorp 5611 DK Eindhoven (040) 235 73 57 4811 GP Breda (076) 525 11 00 Holland Casino Eindhoven Heuvel Galerie 134 Kloosterplein 20 Locations
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FIVE-YEAR SUMMARY FIVE-YEAR 152
- - - - 8.7 -5.8 25.0 42.9 52.2 52.4 34.5
-17.9 -16.5 -22.3 -22.3 -22.3 2013 372.3 503.2 372.3 200.3 -360.2 -394.6 -130.9 - - - -2.7 69.7 54.9 43.4 18.0 77.1 54.2 14.7 12.0 12.0 12.0 -22.9 2014 383.1 520.2 383.1 214.9 -345.5 -371.1 -137.1 - - - - 0.3 -0.8 -0.1 10.1 26.8 71.4 70.8 70.8 70.7 2015 422.3 100.5 575.3 422.3 241.5 106.3 106.3 -351.0 -351.5 -153.0 - - 0.3 -0.2 -7.6 12.6 65.3 81.6 81.7 74.1 74.1 2016 445.5 101.2 607.4 445.5 184.3 110.1 305.5 106.5 106.5 -363.9 -363.8 -161.9
- - - 0.5 29.0 - 17.3 71.6 83.5 97.5 98.0 73.5 73.5 -24.5 2017 497.7 639.2 468.7 211.3 330.9 140.8 140.8 -400.2 -399.7 -170.5
liabilities claim tax ults are now presented under the purposes. The currency exchange results are now presented under the The revenue before taxes from the years 2013 through 2016 have been adjusted for comparison financial income and expenses. Not legally liable for corporate income taxes until 2016. with the guidelines of the Dutch Annual Report Council (Nederlandse Raad The comparable figures in the financial years through 2014 have been drawn up in accordance voor de Jaarverslaggeving – RJ), and from 2015 in accordance with IFRS. revenue expenses revenue FIVE-YEAR SUMMARY FIVE-YEAR * ** *** Balance sheet Equity Non-current Balance sheet total equipment during the year plant and in property. Investments activities operating from Cash flow income and expenses exceptional excl. EBITDA EBITDA EBIT Total Total and expenses income exceptional excl. expenses Operating expenses Exceptional income and Financial income and expenses tax net of investees. of equity-accounted of profit Share Total income tax corporate Result before income tax** Corporate income tax corporate Result after net of tax income. other comprehensive Total income*** comprehensive Total Income statement gaming tax* before Revenue Gaming Net Insurance Amounts in millions of euro, unless otherwise indicated unless of euro, in millions Amounts Five-year summary Five-year
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS FIVE-YEAR SUMMARY FIVE-YEAR 153 4.4 4.6 1.3 -6.8 -6.0 -3.6 -7.7 41.5 48.2 61.0 2013 3.4 3.1 4.2 3.9 1.1 -2.6 -4.1 41.1 49.7 59.1 2014 1.6 4.0 3.3 1.0 -4.7 10.6 40.5 51.1 16.8 57.4 2015 5.6 3.7 3.7 3.8 3.6 0.7 41.7 50.3 16.7 57.0 2016
5.2 3.7 3.7 0.6 52.0 15.7 10.0 10.0 40.0 56.4 2017
percentages) (in (as a percentage of the total) (as a percentage
(as a percentage of operating expenses. excl. exception income and expenses) and expenses) income exception excl. expenses. of operating (as a percentage games Table Table
FIVE-YEAR SUMMARY FIVE-YEAR Ratios (in percentages) margin Profit benefits Employee year Comparison with previous gaming tax before Revenue expenses Operating income and expenses exceptional excl. expenses Operating categories Revenue Revenue Slot machines Revenue tips Gaming and non-gaming revenue & Beverage Food Other income Amounts in millions of euro, unless otherwise indicated unless of euro, in millions Amounts
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS ABOUT THIS REPORT THIS ABOUT 154
. Translation report This report is a translation of the original the in Dutch. In the event of any discrepancies, original report in Dutch shall prevail. Feedback regarding the report can We welcome your feedback on how we with improve our report. Please send an e-mail your questions or comments to [email protected] Holland Casino participates in the TransparencyHolland Casino participates annual survey into the Benchmark (TB), an of CSR reporting among content and quality Casino was ranked Dutch companies. Holland of 2017 (2016: 110 of 253). 128 of 254 at the end Benchmark and The setup of the Transparency in 2018. The frequency of Kristal price changes the benchmark moves from annual to bi-annual, but the yearly price remains.
Choices and scope Casino has also reported In this report, Holland and socially relevant on a number of material our role in society topics, such as governance, We have reported on and our role as employer. Policy, our anti-money our Responsible Gaming our Human Resources laundering approach, topics served Management. These Risk and policy as a basis for the selection of the non-financial indicators. GRI (Global Reporting Initiative) is the international standard for CSR (Corporate Social Responsibility) has beenreporting. Holland Casino’s annual report anddrawn up on the basis of the GRI-4 guidelines (GRI-4)in line with the core option. The GRI Index has notis available on our website. Holland Casino guidelines,received external assurance on the GRI-4 as it did not ask its auditor to provide such assurance.
Scope and boundaries of the report Scope and boundaries Civil Code. The Report of the Executive Board was was Civil Code. The Report of the Executive Board 391 of prepared with due observance of Section Book 2 of the Dutch Civil Code. information for 2017 in this annual report was was information for 2017 in this annual report prepared in accordance with International financial Financial Reporting Standards (IFRS). The up information in this annual report was drawn Dutch in accordance with Part 9 of Book 2 of the Presentation of information of the The annual report comprises the Report Executive Board, the Report of the Supervisory financial Board and the financial statements. The financial year, which runs from 1 January 2017 runs from 1 January 2017 financial year, which 2017. This report covers all through 31 December activities and its staff, but of Holland Casino’s any of its subcontractors it does not report on and/or suppliers. This is the annual report of Holland Casino N.V. , of Holland Casino N.V. , This is the annual report This report covers the 2017 a State shareholding. About this report About
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS LIST OF ABBREVIATIONS OF LIST 155
Risk management and control system Risk management and control system Supervisory Board Sanctions act Social Affairs and Employment Transparency benchmark Personal Data Protection Act Financial Supervision Act Betting and Gaming Act financing Prevention of money laundering and the of terrorism Act Corporate Social Responsibility (CSR) reporting (CSR) reporting Corporate Social Responsibility Limited company specialised in testing, Independent organisation in the field of measurement certification and training of chance systems and games Net Promoter Score Works Council policy Responsible gaming Performance-related bonus MVO N.V. NMi NPS OR PBK Rau RCS RvC SW SZW TB Wbp Wft Wok Wwft International Financial Reporting Standards Remote gaming Gaming Commission Reporting of unusual transactions Act Chief Financial Officer Commission Organizations of the Treadway The Committee of Sponsoring Related Technologies Control Objectives for Information and bans Central register of (temporary) gaming Earnings Before Interest and Taxes and Amortization Earnings Before Interest, Taxes, Depreciation Financial Intelligence Unit General Data Protection Regulation Global Reporting Initiative Administrative organisation and internal control and internal control Administrative organisation Private company Netherlands Civil Code Collective Labour Agreement Chief Executive Officer IFRS Koa Ksa MOT CFO COSO Cobit CRUKS EBIT EBITDA FIU GDPR GRI AO/IB B.V. BW Cao CEO List of abbreviations List of
CONTENT ABOUT HOLLAND CASINO EB REPORT GOVERNANCE FINANCIAL STATEMENTS Colophon Text editors ©Holland Casino Holland Casino Corporate Communicatie Hoofddorp, 24 April 2018 Holland Casino Finance & Control CFF Communications Holland Casino Postbus 355 Translation 2130 AJ Hoofddorp Piggott & Partners [email protected] Photography www.hollandcasino.nl Corné van der Stelt en Mark van der Zouw
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