2016 Annual Report
Total Page:16
File Type:pdf, Size:1020Kb
CONTENTS 4 CHAIRMAN’S STATEMENT ABOUT GENTING SINGAPORE 6 2016 HIGHLIGHTS Genting Singapore PLC (“Genting Singapore” or “Company”) was incorporated in 1984 in the Isle of Man. The Company was converted into a public limited company on 20 March 1987 and listed on the 8 BOARD OF DIRECTORS Main Board of the Singapore Exchange Securities Trading Limited on 12 December 2005. Genting Singapore is a constituent stock of the FTSE Straits Times Index and is one of the largest companies in Singapore by market capitalisation. 10 MANAGEMENT & CORPORATE INFORMATION The principal activities of Genting Singapore and its subsidiaries (the “Group”) are in the development, management and operation of integrated resort destinations including gaming, hospitality, MICE, leisure 11 FINANCIAL HIGHLIGHTS & CORPORATE DIARY and entertainment facilities. Since 1984, the Group has been at the forefront of gaming and integrated resort development in Australia, the Bahamas, Malaysia, the Philippines, the United Kingdom and Singapore. Genting Singapore owns Resorts World Sentosa in Singapore, an award-winning 12 YEAR IN REVIEW destination resort and one of the largest integrated resort destinations in Asia, offering a casino, Adventure Cove Waterpark, S.E.A. Aquarium (one of the world’s largest Oceanariums), Universal Studios Singapore theme park, MICE facilities, hotels, Michelin-starred restaurants and specialty retail outlets. 16 CORPORATE SOCIAL RESPONSIBILITY 18 CORPORATE GOVERNANCE 33 REPORT OF THE DIRECTORS 35 FINANCIAL STATEMENTS 106 INDEPENDENT AUDITOR’S REPORT 111 STATISTICS OF SHAREHOLDINGS GENTING SINGAPORE ANNUAL REPORT 2016 CHAIRMAN’S STATEMENT Dear fellow Shareholders, As part of our efforts in transforming Resorts World Sentosa We are in the services industry, and the hard work from all As we aim to enhance customers’ (“RWS”) into a premium lifestyle destination targeting Asia’s our team members are the backbone of our organisation. experiences in RWS, the Group consistently The year 2016 was a year where the Asian gaming industry affluent, we have created Asia’s first Michelin Chef showcase The Group has invested more than $1.8 million annually went through uncertainties and an unpredictable environment. restaurant, featuring different Michelin-starred chefs from in developing and conducting training in an effort to seeks ways to improve our products and Our flagship Integrated Resort business in Resorts World around the world through its “Art at Curate” series. We are further enhance our team members’ skill sets. We have offerings. We have recently completed the Sentosa “IR” went through a period of adjustment in strategy also proud to be the first Integrated Resort in the world to also organised our very first in-house Career Carnival, refurbishment works at Hard Rock Hotel and has emerged to achieve a creditable set of results. have achieved a total of seven Michelin stars across four of showcasing interesting aspects of key jobs in Attractions, and are now in the process of upgrading our celebrity chef restaurants. In addition, we partnered Ant Hospitality and Resort Services. our Maritime Experiential Museum (“MEM”). For the financial year ended 31 December 2016, the Group Financial Services Group where we appointed Alipay as our reported a revenue of $2.2 billion and an adjusted earnings preferred partner for China as well as the official sponsor of As part of giving back to the community, RWS Cares Upon completion at the end of 2017, the before interests, tax, depreciation and amortization (“Adjusted S.E.A. Aquarium and Resorts World Theatre. We look forward contributed to and supported with over $5.8 million in cash MEM will be transformed into a world class EBITDA”) of $779.0 million. Net profit for the year was $384.5 to building our business in strategic markets through this and in-kind donations to numerous charity organisations edutainment attraction in Singapore. million, a significant growth on a year-on-year basis from $193.1 important partnership, leveraging on Alipay’s brand presence in Singapore, benefitting over 42,000 beneficiaries. We million in 2015. and network in Greater China. also hosted the inaugural Community Chest Charity in the Park at Universal Studios Singapore where 4,000 donors, Our net asset value per share, and cash and cash equivalents beneficiaries and caregivers came together for the event, stood at 60.1 cents and $5.0 billion respectively, as at 31 With your unwavering support and raising more than $2.3 million and benefiting more than 80 December 2016. commitment, I am delighted to see RWS charities supported by Community Chest. named as the Best Integrated Resort for We are attentive of creating good shareholders return. With this I would also like to take this opportunity to convey my in mind, the Board of Directors has declared a maiden interim the sixth consecutive year at the Travel utmost gratitude to all our stakeholders – team members cash dividend of 1.5 cents per share in the third quarter of 2016. Trade Gazette (“TTG”) Travel Awards, for their dedication, management team for their leadership, Together with a final dividend of 1.5 cents per share declared, Board of Directors for their guidance, and customers the total dividend for the financial year ended 31 December reaffirming our position as the go-to and business partners for their continued support. We 2016 is 3.0 cents per share, up 100% compared to the total leisure destination. appreciate the support, guidance and cooperation of the 2015 dividend per share. Singapore government and all its ministries and agencies in our continuing journey of making RWS the lifestyle Complementing this award, Universal Studios Singapore The Group continues to reward our vacation destination of choice in Asia. Last but not least, to remained the No.1 Amusement Park in Asia while its Halloween all our shareholders, thank you for your confidence in our shareholders and as a result, we will Horror Nights event took home the second consecutive company as we continue to execute our transformational have a consistent and sustainable award for the “Best Leisure Event” at Singapore Tourism initiatives to anchor RWS as Asia’s premium lifestyle Awards 2016. dividend policy moving forward. destination and grow our business overseas. With a subdued Asian gaming industry, we continue to exercise RWS’ non-gaming businesses were resilient. The caution with our premium gaming customer business. In the Attractions businesses continue to attract and entertain foreign premium mass and mass market segment, we are visitors from across the region while our hotels on Sentosa committed to sustainable earnings growth following our efforts consistently outperform industry-wide benchmarks with Tan Sri Lim Kok Thay Executive Chairman to enhance guests’ gaming experience. occupancy rates of more than 90%. Genting Hotel Jurong (“GHJ”) has been growing exponentially, recording a high We are encouraged by the passing of the IR Promotion Bill in occupancy rate of 94% just within one and a half years Japan and will be positioning the Group as a strong candidate of operations. Moving forward, given the prime location of GHJ, for the bidding process. If we are successful in bidding for the we welcome the development of the upcoming Singapore-Kuala Integrated Resort in Japan, this project will create significant Lumpur High Speed Rail Terminus that will be located within value to the growth of the Group. the neighbourhood of the hotel. 4 l GENTING SINGAPORE ANNUAL REPORT 2016 GENTING SINGAPORE ANNUAL REPORT 2016 l 5 Credits to Singapore Tourism Board 1 3 5 7 2 4 6 8 2016 HIGHLIGHTS 1 2 3 4 5 6 7 8 MICHELIN CHEF THE HUNTSMAN: PARTNERSHIP WITH 7 MICHELIN STARS WINNING TTG UNIVERSAL STUDIOS RESORTS WORLD PROPERTY SHOWCASE WINTER’S WAR ANT FINANCIAL FOR OUR AWARDS FOR THE SINGAPORE BREAKS SENTOSA CLINCHES ENHANCEMENT “ART AT CURATE” PREMIERE SERVICES GROUP RESTAURANTS SIXTH TIME RECORDS MORE AWARDS PROJECTS AT RWS Our strategic partnership with On 3 April 2016, Through our strategic RWS has become the first RWS was once again awarded Universal Studios Singapore For the second consecutive Throughout the year, we have Michelin Guide Singapore and Universal Studios Singapore partnership with Ant Financial Integrated Resort in the world the Best Integrated Resort at broke two Guinness World year, Halloween Horror Nights embarked on multiple Robert Parker Wine Advocate hosted the Asia premiere of Services Group, Alipay was to receive a total of seven the Travel Trade Gazette (TTG) Records in 2016 for having the received the award for the upgrading works in the resort. has allowed us to create Asia’s the movie “The Huntsman: appointed as RWS’ preferred Michelin Stars across four Awards, making this the sixth most people playing Monopoly Best Leisure Event at the We have completed first Michelin Chef showcase Winter’s War”, featuring Chris partner for China as well as celebrity chef restaurants in a row. This has reaffirmed in a single venue with 605 Singapore Tourism Awards refurbishment works at Hard restaurant. RWS brought in Hemsworth, Oscar® winner the official sponsor for S.E.A. (3-star Joël Robuchon our status as the most sought- participants in March, and for 2016, establishing itself as Rock Hotel, and just begun four stellar Michelin-starred Charlize Theron and Jessica Aquarium and Resorts World Restaurant, 2-star L’Atelier de after leisure destination in Asia the largest light bulb display at Southeast Asia’s most iconic the upgrading project at the chefs exhibiting different Chastain. The event attracted Theatre. This would allow RWS Joël Robuchon, 1-star Osia Pacific. This accolade is an an indoor venue with 824,961 and immersive Halloween event. Maritime Experiential Museum cuisines, namely Italian, French, a strong turnout of 7,000, with to expand our exposure and Steak and Seafood Grill and outstanding acknowledgement light bulbs in December, almost Universal Studios Singapore (MEM).