(incorporated in Hong Kong with limited liability) (在香港註冊成立的有限責任公司) Stock Code 股份代號：880 SJ M HOLDIN ANNUAL REPORT G S LI 年報 M ITE 2015 D 澳門博彩控股有限公 司 ANNUAL REPORT 年報 2015 Suites 3001 – 3006, 30th Floor, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong 香港中環港景街 1 號國際金融中心一期 3 0 樓 3 001 – 300 6 室 http://www.sjmholdings.com ABOUT US SJM Holdings Limited (the “Company”) is the holding company of Sociedade de Jogos de Macau, S.A. (“SJM”), one of the six companies authorised to operate casino games of fortune and other games of chance in casinos, under the terms of a concession granted by the Government of the Macau Special Administrative Region (“Macau”) in March 2002, and the only casino gaming concessionaire with its roots in Macau. SJM’s casinos are located in prime locations on the Macau Peninsula and Taipa and convenient to principal entry points. Gaming operations are comprised of VIP gaming, mass market table gaming and slot machines. The Grand Lisboa Palace, SJM’s integrated resort on Cotai, is currently under construction. The Grand Lisboa Palace will feature a total of approximately 2,000 hotel rooms and suites, facilities for meetings and conferences, shopping, dining and entertainment, and a casino. As at 31 December 2015, SJM operated 17 casinos, comprising more than 1,600 gaming tables and over 2,600 slot machines. CONTENTS 2 Event Highlights 85 Environmental, Social and Governance Report 4 Awards 93 Independent Auditor’s Report 6 Financial Highlights and Dividend Schedule 95 Consolidated Statement of Profit or Loss and 7 Chief Executive Officer’s Statement Other Comprehensive Income 8 Business Review 96 Consolidated Statement of Financial Position 16 Corporate Social Responsibility 98 Consolidated Statement of Changes in Equity 20 Prospects and Recent Developments 99 Consolidated Statement of Cash Flows 22 Financial Review 101 Notes to the Consolidated Financial Statements 24 Directors and Senior Management 172 Five-Year Financial Summary 31 Directors’ Report 173 Corporate Information 63 Corporate Governance Report 174 Definitions EVENT HIGHLIGHTS 2015 2 6 7 January May 1. Grand Lisboa 8th Anniversary Charity Event 5. Grand opening of the Pier 16 Macau 3D World February June 2. SJM hosts traditional Gala Dinner on Lunar 6. SJM Holdings Annual General Meeting New Year’s Eve 7. SJM wins trophies in the Macau International 3. SJM participates in the Chinese New Year Float Dragon Boat Races Parade organised by the Macao Government Tourism Office August 8. 11th Annual SJM Scholarship Awards April 4. SJM is the title sponsor of the SJM Macau 9. Establishment of the SJM Volunteer Team Derby 2015 10. SJM signs Music Public Performance Licence Agreement SJM Holdings Limited 2 Annual Report 2015 EVENT HIGHLIGHTS 11 12 15 16 17 16 October December 11. SJM celebrates China’s National Day with staff 14. SJM hosts “The Art of French Haute Cuisine” Charity Auction and Dinner November 15. SJM directors and staff members participate in 12. SJM is the title sponsor of the Champion Macau’s Walk for a Million 2015 Formula 3 racing team, SJM Theodore Racing, at the 62nd Macau Grand Prix 16. SJM and ICBC Macau jointly launch the SJM credit card, the first of its kind in Macau’s 13. SJM is the title sponsor of the world’s first SJM gaming industry Macau GT Cup — FIA GT World Cup 17. New Year’s countdown at Grand Lisboa SJM Holdings Limited 3 Annual Report 2015 3 AWARDS 1 4 7 5 6 The group and its directors received numerous awards in 2015, including those listed below: 1. HKU SPACE Po Leung Kuk Stanley Ho Community 5. SJM Holdings received the “Global Chinese College was named in honour of Dr. Stanley Ho. Business 1000 — Outstanding Performance Award (Hong Kong)” by Yazhou Zhoukan. 2. Dr. Stanley Ho received the Friends of Spain Award by the High Commissioner of the 6. SJM received the Corporate Social Responsibility Government for Spain Brand and the Spanish Gold Award (highest award in the CSR category) Consulate General in Hong Kong. by the 2015 Business Awards of Macau. 3. Ms. Angela Leong was awarded the Bronze 7. Ten SJM staff members were awarded at the 7th Bauhinia Star by the Hong Kong SAR International Volunteer Recognition Day Government. ceremony organised by the Youth Volunteer Association of Macau, and one was chosen 4. Mr. Louis Ng was awarded Chevalier de l’Ordre among the Top Volunteers. National du Mérite by the French government. SJM Holdings Limited 4 Annual Report 2015 AWARDS 8 9 8. Michelin Guide Hong Kong Macau 2016 9. Sofitel Macau at Ponte 16 • Robuchon au Dôme — 3 Michelin stars • 2015 Luxury Romantic Hotel by World • The Eight — 3 Michelin stars Luxury Hotel Awards • The Kitchen — 1 Michelin star • 2015 Travelers’ Choice Awards for Hotels in China — Romance Category by TripAdvisor Hong Kong Tatler Top 20 Best Restaurants 2016 • 2015 Best Luxury Wellness Spa by World • Robuchon au Dôme Luxury Spa Awards • 2015 Best Luxury Hotel Spa in Macau by Wine Spectator 2015 World Luxury Spa Awards • Robuchon au Dôme — Grand Award • 2015 Global Award for Spa by Luxury Travel • Don Alfonso 1890 — Grand Award Guide • The Kitchen — Best of Award of Excellence SJM Holdings Limited 5 Annual Report 2015 FINANCIAL HIGHLIGHTS AND DIVIDEND SCHEDULE FINANCIAL HIGHLIGHTS Year Ended Year Ended 31 December 2015 31 December 2014 HK$ million HK$ million Gaming Revenue 48,590 79,269 Hotel, Catering and Other Income 601 971 Adjusted EBITDA* 3,862 7,763 Profit attributable to owners of the Company 2,465 6,731 Earnings per share — basic HK43.6 cents HK120.0 cents — diluted HK43.5 cents HK119.3 cents Dividend per ordinary share — proposed final dividend HK15 cents HK62 cents — interim dividend paid HK10 cents HK22 cents * Adjusted EBITDA is earnings after adjustment for non-controlling interests and before accounting for interest income and expense, tax, depreciation and amortisation, donations, premium on acquisition written off, loss on disposal/write-off of property and equipment, share-based payments and impairment loss on available-for-sale investment in equity securities. DIVIDEND SCHEDULE Events Date and Time Announcement of proposed final dividend 23 February 2016 2016 Annual General Meeting 2:30 p.m. on (to approve the proposed final dividend) Thursday, 16 June 2016 Ex-dividend date 20 June 2016 Record date for proposed final dividend 21 June 2016 Latest time to lodge transfer documents with share registrar to 4:30 p.m. on qualify for proposed final dividend Tuesday, 21 June 2016 Expected payment date of proposed final dividend (if approved at the 2016 Annual General Meeting) 30 June 2016 SJM Holdings Limited 6 Annual Report 2015 CHIEF EXECUTIVE OFFICER’S STATEMENT (All amounts expressed in Hong Kong dollars unless otherwise stated) Macau experienced the second consecutive year of declining gaming revenue, due to economic conditions and policy measures principally in Mainland China, which have affected discretionary and luxury spending across-the- board. According to the Macau Government, total casino gaming revenue in 2015 declined by 34.3% from the previous year. The decline was manifest most strongly in the VIP segment of the market, as many high-rollers continued to stay away from Macau or reduced their gaming budgets. Mass market table gaming and slot machine revenues were also affected. SJM’s VIP gaming revenue declined by 48.0% in 2015 compared with the previous year, whilst the declines in mass market table gaming and slot machine revenues were 24.6% and 14.8%, respectively. As a result, the Group’s adjusted EBITDA (earnings after adjustment for non-controlling interests and before accounting for interest income and expense, tax, depreciation and amortisation, donations, premium on acquisition written off, loss on disposal/write-off of property and equipment, share-based payments and impairment loss on available- for-sale investment in equity securities) fell by 50.3% whilst profit attributable to owners of the Company declined by 63.4%, after accounting for impaired value of available-for-sale investment in equity securities and the impact of suspending operations of a satellite casino. SJM’s market share of Macau gaming revenue was 21.7% in 2015. The Group’s flagship Casino Grand Lisboa showed a decline in Adjusted Property EBITDA by 49.5% for the year. Casino Grand Lisboa’s VIP gaming revenue decreased by 50.6%, mass market table gaming revenue and slot machine revenue decreased by 25.4% and 17.8%, respectively. Occupancy at the Grand Lisboa Hotel was 83% for the full year, at an average room rate of $2,030. During 2015, the Group maintained a strong financial position, whilst returning $4.1 billion to shareholders as dividends. Total cash and bank balances stood at $17.3 billion as at 31 December 2015, and debt outstanding of the Group was $0.7 billion. The Group’s project on Cotai, now named the Grand Lisboa Palace, which embodies our confidence in Macau and in China as well as our commitment to the solid diversification of our tourism business, made substantial progress in 2015. Foundation work and much of the superstructure were completed during the year, and we anticipate topping off the structure later in 2016. On completion, the Grand Lisboa Palace will increase our hotel room capacity by almost five times and provide best-in-category shopping, dining, entertainment and events facilities that will enhance Macau’s position as a world centre of tourism and leisure. As we grow our business locally we are committed to the development of local talent, which comprises over 90% of our employees in Macau. We provide training and education programmes including full sponsorship for studies at Macau Millennium College, the SJM Scholarship programme for dependents of staff, a customer services coaching programme as well as various soft and hard skills training courses.