Crown Resorts Limited Annual Report 2014 Contents Chairman’s Message 01/ Chairman’s Message 06/ Portfolio of Integrated Resort Assets 08/ Crown Resorts is one of Australia’s leading luxury Chief Executive Officer’s Report tourism and entertainment businesses, with a significant and growing global reach. 10/ Crown Melbourne 13/ Crown Perth Crown’s Australian resorts make a major contribution to Australian tourism. We are a leading employer, with more than 15,000 people working across both properties, and Crown is one of the most significant taxpayers in the country, 16/ contributing two-thirds of its pre-tax profits to governments. This is more than any other ASX 50 company. Melco Crown Entertainment For the financial year ended 30 June 2014, Crown Resorts announced a net profit of $702.5 million before significant items, 19/ which was up 43.1% on the prior year. Crown Aspinall’s and Australia’s leading integrated resorts, Crown Melbourne and Crown Perth, have improved their performance in the second Other Investments half to deliver earnings growth, despite a challenging domestic environment. The main contributor to Crown’s improved performance this year was our investment in Melco Crown Entertainment (MCE) in Macau. MCE delivered strong earnings 20/ growth and Crown received its first dividends from MCE, which totalled $94.4 million for the year. Crown Sydney For our shareholders, a final dividend of 19 cents per share, franked to 50%, was declared, bringing the total dividend for the 22/ year to 37 cents per share. The Crown Board has adopted a revised dividend policy. The revised dividend policy is to pay an Sustainability annual dividend of the higher of 37 cents per share and 65% of normalised NPAT (excluding profits from associates but including dividends received from associates), subject to the company’s financial position. 30/ Crown is setting the bar for luxury tourism in Australia and I am extremely excited about our future pipeline of projects. In The Crown Resorts Foundation Perth, our six-star Crown Towers project is underway and is expected to open in late 2016 and we continue to make progress on our plans to complete the Crown Sydney project. I believe that Crown Sydney will offer New South Wales and Australia a 33/ once-in-a-lifetime tourism infrastructure opportunity. Sydney is Australia’s international gateway and an iconic six-star luxury Corporate Governance Statement Crown resort on its harbour will help attract millions of tourists and create great economic benefit for the city and this country. In Victoria, Crown has reached agreement with the State Government on a number of reforms to the Melbourne Licence and 41/ associated taxation arrangements, which will improve our competitiveness and investment certainty for the long run. With the Nevada Information Statement support of the Victorian Government, we will have a licence and taxation regime that will enable us to compete on a more level playing field to help drive tourism, jobs and economic benefit for the State. 45/ Through our investment and partnership with MCE, we are expanding our resorts across Asia and building a global luxury Directors’ Statutory Report brand based on the highest quality product and exceptional service. MCE will continue to explore the opportunity that may 55/ arise in Japan, should Japan decide to develop integrated resorts to compete on the world stage. Remuneration Report Crown, through a majority-owned subsidiary, has also acquired a 34.6-acre site on Las Vegas Boulevard. Our investment in Las Vegas will expand Crown’s global presence as a leading integrated resort operator and importantly, will provide our company with business and entertainment synergies that come from a network of resorts around the world. This 79/ complements our strong expansion in Australia and Asia. Auditor’s Independence Declaration Importantly, Crown Resorts continues to be a good corporate citizen, investing in local jobs and training, and contributing to 80/ the local communities we operate in through responsible practices and extensive charitable endeavours. Independent Auditor’s Report I am very proud of the contribution Crown has made to Australian communities over the past two decades. To take this to the next level, the Crown Resorts Foundation was established in September 2013. As the new philanthropic arm of Crown 82/ Resorts, it will formalise our substantial community involvement and aggregate the range of initiatives already being Directors’ Declaration undertaken across our Australian resorts. The Foundation recently announced a $200 million National Philanthropic Fund together with the Packer Family Foundation, which will establish community partnerships and provide financial support to 83/ programs with demonstrated success in the areas of social welfare, Indigenous education, and the arts. Financial Report On behalf of the Board, I wish to thank all of our employees and management for working so hard to ensure the success of 138/ Crown Resorts Limited ABN 39 125 709 953 Crown’s future. I would also like to thank you for your continued support and interest as a shareholder of Crown Resorts Limited. Shareholder Information 140/ Annual General Meeting Financial Calendar Additional Information Thursday 16 October 2014 Record date for dividend – 26 September 2014 10.00 am (Perth time) Payment of final dividend – 10 October 2014 James Packer The Astral Ballroom, Convention Centre Annual General Meeting – 16 October 2014 141/ Chairman, Crown Resorts Limited Corporate Information Crown Perth, Great Eastern Highway, Perth, WA 2015 interim results – second half of February 2015 Artist’s impression of Crown Sydney. The development of Crown Sydney remains conditional on the granting of all necessary planning approvals and the finalisation of certain agreements with the Barangaroo Delivery Authority and the developer of Barangaroo South, Lend Lease. Crown Resorts Limited Annual Report 2014 | Australia’s Leading Integrated Resort Company 1 Crown Limited Annual Report 2014 Dining From some of the most awarded restaurants in Australia through to casual food court offerings and cafés, Crown Melbourne and Crown Perth are each renowned for their range of cuisines and dining options. Hotels Crown Resorts offers premium and luxury accommodation in all of its world-class hotels, with facilities that include swimming pools, gyms, tennis courts and day spas. This year we provided almost 1.2 million guest nights, delivering impeccable service to our local, interstate 2 and international guests. 2 3 Crown Limited Annual Report 2014 Crown Limited Annual Report 2014 Gaming & Entertainment Both Crown Melbourne and Crown Perth have luxurious world-class VIP salons and a vibrant and exciting main gaming floor, offering customers a world of entertaining gaming experiences. Each resort shows a variety of musicals, plays, rock concerts, comedy acts and other performances and spectacles across a range of excellent venues. Shopping & Events Whether guests are looking for the latest trends in clothing and accessories, or luxury items from the world’s most prestigious designers, Crown offers the perfect shopping experience. Crown hosts events for an extraordinary range of occasions, from intimate meetings to large-scale corporate conferences, galas and televised events. 4 5 4 Crown Resorts Limited Annual Report 2014 | Australia’s Leading Integrated Resort Company 5 Crown Limited Annual Report 2014 Crown Limited Annual Report 2014 With our major investment in tourism infrastructure, our world-class resorts, hotels and entertainment experiences, Crown is building a global luxury brand based on the 100% owned 100% owned 33.6% interest in Melco Crown Entertainment highest quality product • Crown Melbourne operates 2,500 gaming machines and • Crown Perth has approval to operate 2,200 gaming CITY OF DREAMS has approval to operate 500 table games. machines and 270 table games. • City of Dreams operates approximately 500 table games and approximately 1,400 gaming machines. and exceptional service. • Crown Towers Melbourne hotel has 481 guest rooms. • Crown Metropol Perth hotel has 395 guest rooms and a • Crown Towers Macau hotel has approximately 300 guest • Crown Metropol Melbourne hotel has 658 guest rooms. luxury day spa. rooms. • Crown Promenade Melbourne hotel has 465 guest rooms. • Crown Promenade Perth hotel has 291 guest rooms. • Hard Rock hotel has approximately 300 guest rooms. • Crown Conference Centre has 7,350 square metres of • Crown Towers Perth hotel will have approximately 500 • Grand Hyatt hotel has approximately 800 guest rooms. conference and meeting facilities, across three floors. guest rooms and is expected to open in late 2016. • City of Dreams has more than 30 restaurants and bars. • Banqueting facilities include the Palladium’s 1,500-seat • Crown Perth’s large-scale entertainment facilities include ballroom and the Palms’ 900-seat cabaret venue. the 2,300-seat Crown Theatre Perth. • The resort has a range of retail options. • A broad selection of restaurants and bars are provided in • World-class convention and event facilities are available. • City of Dreams hosts Franco Dragone’s iconic and spectacular the resort, including many of Melbourne’s finest. • A broad selection of restaurants and bars are provided in show The House of Dancing Water. • Crown Melbourne’s retail precinct includes internationally the resort, including some of Perth’s best. • Other key attractions include The Bubble audio-visual renowned designer boutiques and retail