Promotional Version of Crown's Submission in Support of Its Unsolicited Proposal

7/28/2019 Promotional Version of Crown's Submission in Support of Its Unsolicited Proposal

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CROWN SYDNEY RESORT PROPOSAL

Crown is uniquely positioned to design, construct and manage a world class, six star hotel resort,which incorporates VIP only gaming acilities, at Barangaroo South, Sydney.

No other organisation can deliver the package o measures set out in this proposal, which, whentaken together, will ensure Sydney is provided with a world class luxury hotel resort and landmarkbuilding on the water ront at Barangaroo.

While many o the individual elements listed in this proposal are unique to Crown in their own right,Crown is certainly the only company which can deliver the total combination o these elementsin one unique package.

Crown has signed an Exclusive Dealing Agreement with Lend Lease Corporation Limited( Lend Lease ) whereby Crown and Lend Lease will work together on an exclusive basis or aperiod o up to 24 months to jointly develop the concept plan or the hotel resort. The hotel resortis expected to be located on a site to be agreed with the New South Wales Government on the

north west corner o Barangaroo South, adjacent to Sydney Harbour and Barangaroo Central.The trade union, United Voice (New South Wales Branch), and the National Centre o IndigenousExcellence ( NCIE ) will both be Project Partners in the delivery and operation o the Crown SydneyResort. Crown has signed a Memorandum o Understanding with both organisations to coverissues relating to employment, training and work orce issues at the Crown Sydney Resort.

The Crown Sydney Resort project will utilise world’s best practice design, in order to createan iconic addition to Sydney Harbour. The design o the hotel resort will be sympathetic to thesurrounding improvements at Barangaroo South and Barangaroo Central and will create a uniqueopportunity or tourists to experience the proposed cultural amenities and parklands that are anintegral part o Baranga roo. Crown will be working with some o the world’s best hotel resor t andhospitality designers and will consult with an expert advisory panel to ensure that the CrownSydney Resort is an iconic addition to Barangaroo and Sydney Harbour.

Crown’s record demonstrates that it can deliver a centrepiece or Sydney that will draw millionso visitors. A Crown branded resort at Barangaroo would boost the economy, create thousandso new jobs, contribute signi cant tax revenues to the New South Wales Government and ensureSydney remains a rst class international tourist destination. A six star Resort on the water ront atBarangaroo will assist Sydney to compete with the best cities in the world or major internationalcon erences and events.

VIP only gaming acilities at the hotel resort are necessary to provide the commercial underpinningor an iconic and architecturally signi cant project and or the operation o a world class sixstar hotel resort. In order to proceed with the construction o the Crown Sydney Resort, Crownwill require a casino licence to be issued to operate the VIP only gaming acilities within thehotel resort.

Barangaroo has no comparable project in the Asia Paci c region. This is due to the scale o theproject and its unique combination o urban renewal, property development, creation o culturaland entertainment areas, mixed use deployment, creation o large scale passive and activerecreational areas in a harbourside CBD location. When completed, more than 23,000 peopleare expected to live and work at Barangaroo and another 33,000 people are expected to visitevery day. Barangaroo is Sydney’s last water ront site o scale with connectivity to the CBD andharbour side tourism precinct.



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Proposal details

i. Objectives o the proposal1. Build Sydney’s frst luxury six star hotel resort at Barangaroo

Crown’s objective is to build a six star hotel resort at Barangaroo which will be a worldclass tourist acility, helping Sydney compete with other global destinations and becomea landmark attraction or millions o visitors.

The Crown Sydney Resort Project has the support o many leaders in the tourism industry. A ter Crown and Lend Lease announced their Exclusive Dealing Agreement, Tourism andTransport Chie Executive John Lee stated:

“An international hotel resort will become a ocal point o Barangaroo South, attractingvisitors rom home and abroad. It will also help to activate the precinct, generatetourism spending and create hundreds o jobs.

Sydney needs additional hotel stock and Barangaroo needs a world-class hotel in a prominent location.”

Source: TTF Press Release 2 August 2012

The hotel resort is expected to comprise 350 rooms o which 20% will be suites and willincorporate VIP gaming similar to those operating at Crown’s resorts in Melbourne and Per th.The VIP only gaming acilities are necessary to provide the commercial underpinning or thedevelopment o such an iconic, world class hotel resort.

In order to proceed with the construction o the Crown Sydney Resort, Crown will require acasino licence to be issued to operate the VIP only gaming acilities within the hotel resort.

A ter Crown and Lend Lease announced their Exclusive Dealing Agreement on 2 August2012, ormer Prime Minister Paul Keating issued a statement noting the ollowing:

“There is little doubt that Lend Lease as developer/contractor, along with Crown as hotel designer/operator, could build a hotel o world rank.

‘VIP only’ gaming should bring revenue to the hotel that hotel-only operators areunable to bring. These revenues can underwrite a premium on the quality and designo the building – the very thing the precinct requires to give it world class status.”

“There is little doubt that LendLease as developer/contractor,along with Crown as hoteldesigner/operator, could builda hotel o world rank.”

Crown Resort will create 2000 jobs. Source: Allen Consulting Report (August 2012)



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2. Ensure New South Wales can compete with domestic andinternational tourist destinations

The global tourism market is ercely competitive and cities both domestically and around theworld are investing heavily in new tourism assets to increase their share o the internationalvisitor market. The Crown Sydney Resort will play an important role in allowing Sydney tocompete with many o these destinations.

The Final Report o the Visitor Economy Task orce commissioned by the New South WalesGovernment (June 2012) ( Visitor Economy Taskforce Report ) ound that New South

Wales needs to renew its approach to tourism:“NSW needs to con ront the act that its destination appeal has waned and it has lost

its number one status across a number o measures; it has been outper ormed and outspent by competitor destinations in Australia and the Asia-Paci c region over many

years and its competitive position has been eroded.”

“While NSW is the number one destination or international and domestic visitorson a range o key criteria, it continues to lose in other areas. This erosion o NSW’scompetitive position as an appealing destination or visitors can be clearly seen when

measured against our important indicators:

• share of interstate visitors and expenditure • share of international inbound aircraft seats • share of inbound aircraft seats from the target markets • share of international inbound visitors.”

The report also ound New South Wales aces increasingly aggressive competition romother global destinations.

“Potential visitors are now spoiled or choice – across Australia and the world, indestinations, in experiences, in price and in quality. There are major new investments

being made to attract visitors into the Middle East, South East Asia, China and thePaci c, as well as domestically, particularly in Victoria. This is giving rise to newexperiences in direct competition with NSW’s offerings.

Critically the report nds New South Wales is alling behind other states, particularly

Victoria:“NSW has lost its share o international arrivals to Australia (59 per cent in 2000 downto 51 per cent in 2011) and has only increased its international numbers by 2 per cent during this period. In this s ame period Victoria has increased its share o international visitors to Australia rom 25 per cent to 32 per cent (IVS December 2011).”

Given the New South Wales Government’s desire to attract more inbound touristsand to ensure Sydney remains competitive into the uture, the Crown Sydney Resortcan become a critical part o the state’s tourism strategy attracting international andinterstate visitors.

Melbourne river ront has been trans ormed by Crown’s resort



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3. Allow Sydney to compete or international government,business and sporting events

A six star hotel resort on the water ront at Barangaroo will assist Sydney to compete withthe best cities in the world or major international con erenc es and events.

The Crown Sydney Resort will become a critical asset when New South Wales bidsor these events, complementing the state’s rst class sporting acilities and the newconvention and con erence ac ilities being delivered by In rastructure New South Wales.

4. Assist New South Wales to take advantage o opportunitiesprovided by the boom in outbound tourism rom China and Asia

To help attract more tourists to New South Wales, Crown will promote the Crown SydneyResort by leveraging its global brand and reputation and its international sales team.

Crown undertakes extensive marketing o its Australian integrated resorts throughout Asia and adding the Crown Sydney Resort to the list o destinations Crown marketsinternationally will help New South Wales take greater advantage o the opportunitiesprovided by the boom in Asian outbound tourism.

As noted in the con dential Allen Consulting Report (August 2012) titled “Crown SydneyProposal – An Economic Bene t Assessment” ( Allen Consulting Repor t ):

“The outbound tourism market in China is one o the astest growing in the world.It increased at a compound annual growth rate o 18.5 per cent between 2000 and

2010, rom 10.5 million to 57.4 million people. It is orecast to reach 100 million people and be worth US$838 billion by 2020, driven primarily by increased wealth and theeasing o travel restrictions.

In the past decade China has also shown by ar the astest growth with regard toexpenditure on international tourism, multiplying expenditure four times. Expenditure

by tourists rom China is now third highest in the world, behind Germany and theUnited States.”

While outbound tourism rom China provides major opportunities, the Visitor Economy

To help attract more tourists toNew South Wales, Crown willpromote the Crown Sydney Resort by leveraging its globalbrand and reputation and itsinternational sales team.



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Task orce Report, noted that New South Wales was losing share o inbound aircra tseats rom key target markets including China, South Korea and Malaysia between 20 06and 2011.

“In major international growth markets, like China, NSW is losing its national share o airline seat capacity and as a consequence has lost share o outbound China trips to Australia (BDA 2012). Recently, China h as been the only market showing signi cant growth, passing the USA as the third largest market o inbound visitors to NSW (BDA 2012).”

Given Crown’s proven success in attracting tourists rom Asia and Crown’s shareholdingin Melco Crown Entertainment Limited ( MCE ), one o Macau’s major integrated resortoperators, Crown is in an ideal position to help ensure NSW improves its national shareo seat capacity rom these growing markets.

5. Meeting the demands o China’s new middle class tourist sector

One o Crown’s key visitor strategies or the Crown Sydney Resort will be to target thedemands o the growing tourist market rom China and Asia. Crown Melbourne andCrown Perth have demonstrated that luxury hotel resorts with VIP gaming acilities arevery success ul in attracting A sian tourism and this can also work in S ydney.

The Allen Consulting Report noted the ollowing in relation to China’s growing middleclass consumers:

“The evidence suggests these consumers are attracted to luxury hotels, great restaurants and high-end retail shopping, which is why there is a boom in luxury hotels and goo ds outlets across China and also in many international tourist destinationswhich are trying to attract Chinese consumers.

Given the importance of luxury goods and services to China’s rising middle class, it

is easy to understand why they are attracted to luxury integrated resorts which haveunparalleled accommodation, world-class restaurants and high-end retail.

Australia’s competitors appreciate the importance o integrated resorts and are actingto take advantage o the oppor tunity.

The most relevant and successful example of attracting Asian tourists to date has been Singapore, where two new integrated resorts have been developed at acombined cost of approximately S$14 billion (AU$13 billion). Singapore’s integrated

resorts opened in 2010. In response to these acilities, Singapore has seen convincing growth in its share o the international tourism market, while the broader economy also experiences signi cant bene ts. In 2010 tourism revenue increased 49 per cent to S$18.8 billion dollars with hotel revenue increasing 21.8 per cent to S$1.9 billion.

To help attract more tourists toNew South Wales, Crown willpromote the Crown Sydney Resort by leveraging its globalbrand and reputation and itsinternational sales team.

Crown’s City o Dreams Resort, Macau



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6. Increase domestic tourism

The Crown Sydney Resort will play an important role in improving New South Wales’domestic tourism per ormance by attracting a proportion o Australians, currentlytravelling overseas on holidays, to visit Sydney instead.

The Visitor Economy Task orce Report ound that:

“The tourism category of discretionary expenditure is holding up well, much of thisdiscretionary expenditure is on outbound travel. The Report found that the challengeor NSW is to encourage Australians to visit NSW more o ten or leisure, business,education and other purposes.”

The Visitor Economy Task orce Report noted the progress Victoria has made in thedomestic tourism sector.

“Victoria has been competing strongly, and overtaking NSW (and Queensland) in a number o key measures o success in the visitor economy, including:

• Domestic visitors: rated number one for more experiences than NSW, including in shopping, touring holidays, ood and wine, estivals, sporting events, arts and culture (BDA 2012)

• International conventions: Melbourne is currently ahead o Sydney in theInternational Congress and Convention Asso ciation (ICCA) convention city rankings.”

In Melbourne, Crown has demonstrated the important role it plays in helping Victoriaattract a larger share o the domestic tourist market and the Crown Sydney Resort willplay a similar role in helping New South Wales.

In Melbourne, Crown has

demonstrated the importantrole it plays in helping Victoriaattract a larger share o thedomestic tourist market.

Through considerable large scale expansionary projects in Macau and new casinos planned or Vietnam and the Philippines, it is evident these countries have also identi ed integrated resorts as necessary cornerstones or international tourism growth, particularly rom elsewhere in Asia.”

The success o Crown’s new and upgraded attractions in Melbourne and Perthdemonstrates how well Crown understands the demands o Asian tourists. Bothintegrated resorts now o er accommodation, dining, retail and entertainment acilitieswhich match the best the world has to o er.

Tourism Australia’s Managing Director, Andrew McEvoy, recently endorsed Crown’sapproach, saying:

“Shopping, dining and entertainment

are what the Crown complexesare all about and that is what Asiantourists want.”Source: Herald Sun 29 August 2012



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7. Help address a major shortage o hotel accommodation in Sydney

A new six star hotel resort will add to the total stock o hotel rooms available in Sydney,helping alleviate the current shortage.

As noted in the Allen Consulting Report:

“The hotel occupancy rate in Sydney is very high by international standards. Theoccupancy in Sydney or the 2011 December quarter was 86.3 per cent, with average

room rates up 4.5 per cent to $201.54 (TTF 2012a).

A recent repor t by the Tourism Association o A ustralia ound Sydney needs 150 to550 new hotel rooms every year or 5,000 rooms by 2020 to meet the demands o the tourism sector (TAA NSW 2012). TTF, the Australian Hotel Association and the

Accor Hotel Group have all expressed the need for more quality hotels to be built in Sydney (T TF 2012a). Since the year 2000 only one ve star hotel has been built inSydney (The Darling).

Looking ahead, this short all o tourist accommodation, especially in the upscale segment could cost NSW tourism and the NSW economy dearly.

The shortage o hotel rooms and undersupply o tourism in rastructure will constrainSydney’s international and domestic tourism market growth. Sydney’s hotels

performed above high expectations in 2011. While very strong forward outlook, very high level o occupancy and good room rate growth are predicted, high occupancy rate and minimal supply growth are expected to constrain future demand growth(Drans eld 2011).”

This shortage o quality development sites and the underlying economics associatedwith hotel development when compared to residential or commercial opportunities hasresulted in a structural de ciency in hotel accommodation in Sydney which makes itdi cult to meet uture increases in tourist numbers.

As noted by the Visitor Economy Task orce Report:

“A doubling of the overnight visitor expenditure by 2020 will demand more visitor accommodation or Sydney’s CBD and Greater Sydney.

Currently, there is limited capacity to promote additional visitation into Sydney.Competitor destinations, such as Melbourne, have implemented a strategy which hasensured that accommodation capacity has stayed ahead o demand.”

The report importantly notes the entrenched structural di culties deterring investment byhotel resort operators:

“A historical lack o long-term Government planning, alongside the challenges presented by market undamentals, such as the low return on hotel investment compared to retail and o ce space, has not helped Sydney present a competitiveedge in attracting investment in visitor accommodation.

In particular:

• land available for hotel development, particularly in Sydney’s CBD, competes withother asset class development opportunities. Land is scarce and, depending uponthe economic and property cycle, alternative land uses or accommodation o ten

provide higher immediate returns or private developers and landowners

• there has been a loss of existing hotel stock due to hotel closures and conversion to residential units

• private investors will overlook investment into new accommodation developments in avour o higher-yield property investments such as residential o r commercial o ce development”

Jones Lang LaSa lle in a 2010 report to the New South Wales Government projected thataccommodation supply in Sydney city and metropolitan markets would need to increasein the order o 8,900 rooms over the next ten years, rom 32,916 in 2009 to 41,790in 2020.

Governments have recognised that intervention is needed to mitigate the impactassociated with the lack o hotel accommodation as the structural short all o qualityhotel accommodation will become a limiting actor in tourism growth.



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8. Attracting high wealth tourists and VIP gaming players to Sydney

Crown’s six star hotel resort or Sydney combined with the attractiveness o Australia’smost naturally beauti ul city would be a major drawcard or high wealth tourists and VIPgaming players across Asia, in particular China. An iconic, landmark hotel resort onSydney’s beauti ul harbour would act as a magnet to many o these visitors.

Sydney is currently missing out on the revenue and economic activity these visitorsdeliver to other resorts domestically and overseas.

An iconic,landmark hotelresort on Sydney’sbeauti ul harbour

would act as amagnet to many o these visitors.



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• To be commercially successful, the luxury six star hotel resortand VIP gaming acility must be on a high profle water rontlocation on Sydney Harbour.

For a hotel resort in Sydney to be a landmark building that will attract millions ovisitors, it must be on a water ront location on Sydney Harbour. Barangaroo is theonly water ront and harbour side location in the Sydney CBD which will accommodatesuch a development.

Crown’s Exclusive Dealing Agreement with Lend Lease makes Crown the onlycompany in a position to deliver on this essential requirement. The indicative locationagreed to by Crown and Lend Lease in the Exclusive Dealing Agreement not onlydelivers on this essential requirement, it also ensures that the Crown Sydney Resortwill have spectacular views o the Sydney Opera House a nd Sydney Harbour.

A ter Crown and Lend Lease announced their Exclusive Dealing Agreement on2 August 2012, ormer Prime Minister, Paul Keating, issued a statement noting the

ollowing:“There is little doubt that Lend Lease as developer/contractor, along with Crown as

hotel designer/operator, could build a hotel o world rank.

‘VIP only’ gaming should bring revenue to the hotel that hotel-only operators areunable to bring. These revenues can under write a premium on the quality and designo the building – the very thing the precinct requires to give it world class status.”

ii. Unique elements o the proposalCrown is the only company which can build and operate a world class hotel resort(incorporating VIP only gaming acilities) at Barangaroo. No other organisation can deliverthe package o measures set out below, which, when taken together, will ensure Sydneyis provided with a new luxury hotel resort and landmark building on the water ront atBarangaroo.

While many o the individual elements listed below are unique to Crown in their own right,Crown is certainly the only company which can deliver the total combination o theseelements in one unique package.

The ollowing actors make the Crown Sydney Resort Project unique:

• Crown is the only company that has secured a two year exclusive dealing arrangement with Lend Lease in relation toa water ront site at Barangaroo South (an iconic building onan iconic site).

Barangaroo is Sydney’s last water ront site o scale with connectivity to the CBD andharbour side tourism precinct. This, coupled with the unique set o cultural amenitiesand parklands that are planned or Barangaroo, creates a compelling opportunity tocreate a resort destination o scale that can o er the types o experiences that arehighly appealing to both domestic and international tourists.

Crown’s Exclusive Dealing Agreement with Lend Lease will ensure that a collaborativeapproach will be utilised to create a compelling resort o ering that is integrated intothe most important redevelopment project o this century or Sydney. The ExclusiveDealing Agreement provides Crown with the exclusive right to work with Lend Leaseor a period o up to 24 months to create the development plans or the Crown SydneyResort and reach agreement on certain key milestones or the hotel resort, includingobtaining the necessary development approvals or the project.

Crown and Lend Lease will work together to jointly develop the concept plan or thehotel resort which is expected to be located on a site to be agreed with the BarangarooDelivery Authority (BDA) on the north west corner o Barangaroo South, adjacent toSydney Harbour and Barangaroo Central.

The Crown Sydney Resort Project will utilise world’s best practice design, in order

to create an iconic addition to Sydney Harbour. The design o the hotel resort will besympathetic to the surrounding improvements at Barangaroo South and BarangarooCentral and will create a unique opportunity or tourists to experience the proposedcultural amenities and parklands that are an integral part o Barangaroo. Crown will beworking with some o the world’s best resort and hospitality designers and will consultwith an expert advisory panel to ensure that the Crown Sydney Resort is an iconicaddition to Barangaroo and Sydney Harbour.



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• Crown has a strong balance sheet and strong cash ows.Crown is an S&P/ASX 50 company with a market capitalisation o approximately $6.5billion. As at 30 June 2012, Crown had total liquidity (as measured by available cash andcommitted undrawn bank acilities) o $512.4 million. Subsequent to 30 June, Crownhas raised $300 million through the issue o senior notes in the Australian MediumTerm Note market and has completed the book build or an issue o at least $525million o subordinated notes to domestic retail and institutional investors. Crown’stotal committed and undrawn liquidity ollowing the completion o these transactionswill be approximately $1.3 billion. A process to re nance and replace maturing bankdebt has also commenced.

As a result, Crown be lieves it has ac cess to su cient nancial resources, either inexisting acilities or through potential new acilities, to nance the Crown SydneyResort project.

Crown is an S&P/ASX 50 company with amarket capitalisationo approximately $6.5 billion.

• Crown has an unrivalled record in securing visitation from Asian high wealth tourists and VIP gaming players to Australianintegrated resorts.

Since the establishment o Crown’s business in Melbourne in 1994 and, particularly,since commencing operations at the current Crown Melbourne site in 1997, Crown hasmaintained a commitment to attracting and hosting the most discerning o internationalhigh wealth visitors or VIP players. Long be ore Macau opened its doors to internationalcasino operators and many years prior to the integrated resorts in Singapore, Crownhad established an industry wide reputation or quality and or service, which havebeen the cornerstones o Crown’s success or many years. Prior to the opening o thenew integrated resorts in Macau, during a time when Las Vegas was recognised as the

epicentre o the global gaming industry, Crown Melbourne enjoyed the largest singlesite international VIP gaming operation o any casino world-wide.

Crown’s success is based on a ormula o high quality assets, dedicated people,integrity, discretion and an unfinching commitment to the best possible customerservice and attention to detail. This is all supported by an extensive and experiencedsales network spread across the length and breadth o Asia.

The strength o the Crown model was demonstrated ollowing the acquisition in 2004o the Crown Perth ( ormerly known as Burswood Entertainment Complex), whererapid growth in VIP gaming player activity was achieved ollowing many years ostagnant results under the previous management.

Mansions, Crown Perth



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During this time, the VIP operations at Crown Melbourne expanded signi cantly,proving Crown’s ability to expand and improve one resort without negatively impactingthe other. It was also applied success ully to ‘kick-start’ operations in Macau underthe Melco Crown joint venture and more recently to the UK ollowing the acquisition othe Aspinall’s Club in May air, London. All operations have bene ted greatly rom theapplication o the Crown “DNA” and mode l.

It is also the quality o the Crown customer experience that has allowed Crown tocontinue to grow despite increasing regional competition or the Asian VIP gamingplayer. While some regional operators have struggled to maintain relevance and tocompete with the developments in Mac au, Singapore and e lsewhere, Crown’s strength,as well as its strategic fexibility in an ever evolving market, has allowed it to continueto strongly grow its VIP gaming business.

Crown has enjoyed a dominant market share o the Australian VIP gaming segmentsince Crown’s beginning. Other domestic casino operators ( Echo Entertainment Group(Echo) and SkyCity Entertainment Group) have attempted to carve out their own share

o this market, with limited success. In act, Echo (under previous ownership) haswithdrawn rom this market at various points in its own history.

Crown’s domestic competitors tend to employ discounting strategies in their attemptto erode Crown’s dominant market share. Crown has been able to de end againstthese tactics, despite the relative pricing disadvantage, by staying true to Crown’scommitment to an exceptional customer experience. Crown delivers on this byleveraging those characteristics that set Crown apart, including the quality o the Crownproperties and the gaming, dining, accommodation and relaxation opportunities theyprovide, the commitment to service instilled in Crown’s employees and the strengtho the relationships Crown has developed with its customers over many years. Theseattributes have built Crown a loyal Asian customer base and a reputation that is theenvy o its competitors.

Crown estimates that its Australian integrated resorts account or around 75% ointernational VIP gaming activity attracted to Australia.

No other company domestically or internationally has had the experience or successin bringing high worth tourists / VIP players to Australian integrated resorts, a criticalelement in making the Crown Sydney Resort project a success.

• Crown has a proven track record of having designed,constructed and operated the most success ul group o luxuryintegrated resorts in Australia.

Crown has extensive experience in the construction and operation o world classintegrated resorts. Crown owns and operates two o Australia’s leading integratedresorts, Crown Melbourne and Crown Perth. As well, through a joint venture inMacau, Crown played a leading role in the development o Altira Macau (previouslyCrown Macau) and City o Dreams and will have signi cant input into the design anddevelopment o Studio City.

Crown is widely acknowledged as the best operator o integrated resorts in Australia.Both Crown Melbourne and Crown Perth continue to per orm well despite theso tening consumer ec onomy. Crown’s contribution extends beyond the operation othese two properties as businesses. Crown provides signi cant investment in tourismin rastructure, extensive employee training, considerable tax revenues or the relevantgovernments and makes a n invaluable contribution to Australia’s tourism o ering.

Crown Towers Melbourne won Reader’s Choice Gourmet Traveller 2012 Travel Awards



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• Crown will establish a dedicated training facility for the Crown Sydney Resort.

Crown has an outstanding record in sta training at both its Melbourne and Perthresorts and in Sydney it will invest heavily in training as well.

Crown Melbourne has developed a purpose built $10 million dollar training acility,which has trained over 10,000 employees in the last 13 years. Currently, more than1,000 employees, representing over 15% o the work orce are obtaining an accreditedquali cation. Crown has also graduated over 4,300 apprentices and trainees.

In Sydney, Crown will establish a dedicated training acility, to ensure job seekers andCrown’s employees receive the skills and quali cations to meet the highest standardso the company.

Given the high turnover in hospitality sta , Crown’s investment and commitment totraining will bene t the sector generally and help meet Sydney’s overall short all inhotel and hospitality sta .

• Crown has entered into an exclusive Memorandum ofUnderstanding (UV MOU) with the trade union, United Voice –New South Wales Branch, covering the Crown Sydney Resort.

From its experience in running luxury hotel resorts, Crown believes that in order todeliver six star service, a happy and harmonious work orce is needed. A positiverelationship with Crown’s employees and unions has been critical to Crown’s successover the years.

United Voice - New South Wales Branch has agreed with Crown to become a ProjectPartner in the Crown Sydney Resort project and has entered the UV MOU (attachedas appendix). As a Project Partner Crown will consult and work with United Voice todeliver the project and to develop work orce planning and training.

The UV MOU will play a major role in ensuring employees at the Crown Sydney Resorthave their workplace rights respected and protected while at the same time givingCrown the stability and commercial certainty needed to make the Crown Sydney

Resort project a success.

Crown has an outstanding record in sta training atboth its Melbourne and Perth resorts and in Sydney it will invest heavily in training as well.

“As a Project Partner, United Voice will work with Crown on issuesrelating to employment, trainingand work orce development or theoperation o the Resort. It’s a winor workers and a win or Sydney.”

Mark BoydNSW Branch Secretary, United Voice



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• Crown has signed an exclusive Memorandum of Understanding(NCIE MOU) with the National Centre o Indigenous Excellence(NCIE) in Red ern to provide a training acility or the CrownSydney Resort’s Indigenous work orce.

The NCIE has agreed to be a Project Par tner or the Crown Sydney Resort and to workwith Crown to deliver training, mentoring and support or the hotel resort’s Indigenouswork orce (attached as appendix).

Since its opening in 2010, the NCIE has been one o the most success ul not or pro tacilities in the country with over 10,000 Indigenous youth a ttending training, coursesand events at the campus. The NCIE is having a national impact, with other statesand territories looking to emulate the acility. It has been an important driver o socialchange in the Red ern community through programs and world class sporting andcultural acilities.

The NCIE currently has a commercial kitchen, dining acilities, class rooms anddormitories that will be used by Crown to train and mentor Indigenous job seekers romacross Sydney, New South Wales and Australia. In this sense, the partnership is unique.

Crown has been a leader in the Indigenous employment sec tor. Most recently, Crown’sIndigenous program was recognised when it was the recipient o the 2012 AustralianBusiness Award or Community Contribution in its industry classi cation.

The Award notes Crown’s work in the area:

“Crown Limited’s Aboriginal Employment & Business Strategy is based around principles o sustainable employment, broadened work orce diversity, increased cultural awareness among employees, enhanced community and network

relations hips. Their recruitm ent pr actices are ba sed o n un derstan ding Aborigi nal traditions and pre erences and include employing Aboriginal Employment Coordinators, specialist Aboriginal recruitment training or recruitment sta and

managers, plus establishing a presence in Aboriginal communities.

Working with Aboriginal candidates includes job-matching and diagnostic programswith each candidate (that can last or months), to identi y appropriate positions

and training. Continued support or Aboriginal employees includes one-on-onetraining and contact with Aboriginal organisations such as the Victorian Aboriginal Health Service in Melbourne, and in Perth the Champion Centre, Aboriginal Driver Training Program.

Crown adapted their usual operations to make this program a success by operating predomin antly within the Aborig inal commun ities and building strong ties with like-minded organisations. The success o this program has seen a marked increase in employment o Aboriginal people throughout the business, promotion and support o Aboriginal culture and a wider eeling o welcome or Aboriginal customers

and suppliers.”

The commitment o the NCIE to excellence matches the commitment o Crown andthis exclusive partnership is unique in the commercial sector.

“The NCIE is dedicated to providing young Aboriginal and Torres Strait Islander Australians with the oppor tunity to work in the hospitality industry, building success ul careers that cantake them anywhere in the world. Together withCrown, we’re building career pathways or thenext generation o Indigenous Australians.”Jason GlanvilleCEO, NCIE



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• Crown is a world leader in responsible gambling initiatives. As a provider o world class integrated resorts o ering gaming and entertainmentacilities, Crown is committed to providing gaming services to patrons in a responsiblemanner. Crown is a leader in the development and implementation o initiatives thatsupport responsible gaming.

Crown’s ongoing dedication is illustrated by the signi cant resources committedto promoting responsible gaming and providing assistance to patrons who may beexperiencing di culty with their gaming behaviours at the Crown Melbourne andCrown Perth. Crown’s responsible gaming initiatives implemented to date include:

• Board Committee: The establishment by the Crown Board o a Board Committee tooversee responsible gaming is a testament to Crown’s commitment to responsiblegaming. Chaired by Crown Director, Pro essor John Horvath, the ResponsibleGaming Committee meets regularly to review and monitor Crown’s responsiblegaming programs, the e ectiveness o those programs and promote awareness

o responsible gaming issues.Pro essor Horvath was the Australian Government Chie Medical O cer rom 2003to 2009. He is currently continuing to advise the Commonwealth Department oHealth & Ageing and the School o Medicine, University o Sydney, and holds theposition o Honorary Pro essor o Medicine.

• Staff traini ng and educati on at all levels: Training and education is thecornerstone o Crown’s responsible gaming program. At both Crown Melbourneand Crown Perth, sta undergo training that be gins during induction and continuesthroughout their career at Crown. All sta are trained in the steps to take to ensurethat players exhibiting behaviours o concern are re erred to the ResponsibleGaming Support Centre, or one o Crown’s Responsible Gaming Liaison O cers.

• On-site Responsible Gaming Support Centre: Crown Melbourne’s ResponsibleGaming Support Centre was the rst on-site support service o ered at any venuein the world. It o ers counselling services 24 hours a day, 7 days a week, aswell as providing problem gambling in ormation brochures and contact details inlanguages other than English.

• Responsible Gaming Liaison Of cer: Trained counsellors at both CrownMelbourne and Crown Perth who interact with customers on the foor are available24 hours per day 7 days a wee k.

• Play Safe Loss Limit Program: Crown’s voluntary loss limit system, Playsa e,has been in operation at Crown Melbourne since 2002 and Crown Perth since2010. This option is available to all loyalty club members who play gaming machineand ully automated table games and provides players the option to select theirown expenditure/time limits. I a limit is exceeded, the member is noti ed at themachine and no longer earns loyalty points – providing the opportunity or interactionwith sta .

• Self-Exclusion Program: Sel -exclusion is a legally binding process, allowing acustomer to ban themselves rom entering or remaining on the gaming foor atCrown Melbourne or Crown Perth.

• Responsibl e Gaming Code of Conduct: Introduced in 200 9, Crown’s ResponsibleGaming Codes o Conduct are readily available at many points on and around thegaming foors at both Crown Melbourne and Crown Perth. The documents areregularly reviewed by the relevant regulators and speci c to each property.

• Chaplaincy Services: A non-de nominati onal chapla incy servic e is availableat Crown Melbourne, o ering a counselling style support to players who seek it.

As a provider o world classintegrated resorts o eringgaming and entertainmentacilities, Crown is committedto providing gaming services topatrons in a responsible manner.



31

• Crown has a proven track record of securing widespread localcommunity support or its integrated resorts.

Crown Melbourne is a key driver o tourism within Australia, particularly in Victoria,attracting around 18 million visitors annually and is the most visited tourist attractionin Victoria.

Crown Melbourne responds and provides assistance, donations and support to abroad range o community needs. By way o example support was provided to ourorganisations in 2011 namely Red Cross 2011 Victorian Floods Appeal, Salvation

Army Queensland Disaster Relie Appeal, The Alannah and Madeline Foundation andKOALA Foundation (Kids Oncology And Leukaemia Action Foundation).

The Palladium at Crown is the host o some o Australia’s most notable industry eventsincluding the annual TV Week Logie Awards, the Cricket Australia Allan Border Medal,the AFL Brownlow Medal and the Australian Masters Gol Gala Dinner. During thespring racing carnival, the Palladium is home to a number o Victoria Racing Club’sSpring Carnival events including the Oaks Club Ladies Lunch and the Call o the Card.In conjunction with the Victoria Racing Club and its o cial partners, Crown Melbournehas hosted a ‘live site’ at Southbank during the Melbourne Cup Carnival. An estimated80,000 people enjoy live entertainment, big screen racing action, giveaways and theriverbank Carnival Bar.

Crown has invested heavily in the con erencing market with the newly developedmulti-million dollar Crown Con erence Centre in Melbourne playing host to some o

Australia’s leading businesses including the Intel Summit 2011, Tertiary EducationManagement Con erences, CIPSA Con erence, Cook Medical Con erences, the

AGES Annual Scienti c Meeting 2011, Telstra, NAB, Genesys Wealth, Intel, Foster’s,IATA and Stead ast.

Crown Melbourne provides high quality ree public events to the community whichinclude the Christmas show in the Atrium, Chinese New Year Show, the ood stallmarkets at the end o Chinese New Year, the Spring Carnival site, the gas fares on thepromenade etc.

Similarly, Crown Perth is one o the major tourist attractions in Western Australia,attracting around seven million visitors annually. Crown Perth recognises the importantrole it plays in the Western Australian community and through a range o communitypartnerships, sponsorships and employee initiatives, demonstrates its commitment tolocal charity and industry groups.

In 2011, Crown Perth worked with more than 20 local charity groups, includingChannel Seven Telethon weekend pledging a donation o $1 million to support childhealth causes, hosted a gala undraising dinner that raised $420,000 or the StarlightChildren’s Foundation, was involved with Foodbank Western Australia, The Salvation

Army Flood Relie Appeal including a Flood Relie Concert held at Crown PerthTheatre, Crown Perth employees participated in the Ronald McDonald House ‘Make

A Meal’ program and Crown Perth also sponsored the annual WA Police O cer o theYear Awards.

Crown Perth is also recognised as one o Australia’s leading meetings and eventsvenues. Major convention events hosted at Crown Perth have included the AustralianPrimary Principals Association Con erence, Rio Tinto Annual General Meeting,Western Australian Primary Principals Association Con erence, WASSRA Con erenceand the AMEC Con erence.

Sponsorships and partnerships play a signi cant role in Crown Perth’s support orlocal businesses and organisations including being host-sponsor o the Western

Australian & Qantas Australian National Tourism Awards, host venue or the WA Fashion Awards in conjunction with the Perth Fashion Festival and naming rights sponsor oCrown Perth International Race Day as par t o the Summer racing c arnival.



33

iii. Method o approach As described in this document.

iv. Nature and extent o anticipated outcomesCrown will deliver a world-class, six star hotel resort under the “Crown Sydney” brandat Barangaroo South on Sydney Harbour. Crown’s vision is to construct one o the besthotel resorts in the world, which will attract international tourists, particularly rom Asia.

The hotel resort will be iconic in nature and will convey a sense o glamour andarchitectural signi cance, taking advantage o its spectacular location on the SydneyHarbour oreshore.

Subject to negotiations with Lend Lease and the BDA, Crown currently envisions thehotel resort will comprise:

• 350 rooms of which 20% will be suites

• Two signature ne dining restaurants plus a three meal per day restaurant• Luxury retail

• A spa and beauty salon

• An executive lounge and meeting facilities

• A resort style pool and amenity deck

The hotel resort will also incorporate VIP only gaming acilities, similar to the VIP gamingacilities operated at Crown’s resorts in Melbourne and Perth. The VIP only gaming acilitiesare necessary to provide the commercial underpinning or the development.

Any proposal to incorporate a residential component in the Crown Sydney Resort projectwould require the consent o Lend Lease and the BDA.

In order to proceed with the construction o the Crown Sydney Resort, Crown will require acasino licence to be issued to operate the VIP only gaming acilities within the hotel resort.

v. Benefts the proposal will bring to the State1. Gross State ProductNew South Wales will bene t greatly rom increased economic activity both duringconstruction and once the hotel resort is operational.

The Allen Consulting Report outlines the economic bene ts the Crown Sydney ResortProject will bring or New South Wales:

“The initial e ect on NSW Gros s State Product (i.e. total economic activity in NSW) is projected to be around $60 million per year during the construction phase.”

“The very large impacts on NSW GSP occur when the complex is operational.From 2018 onwards, GSP is higher by $300-$440 million per year. This results romthe spending by visitors to the complex, especially international visitors, and theconsequent fow-on e ects to other industries in the state.”

2. Jobs or New South WalesOver 14,400 Australians come to work at Crown’s Australian integrated resorts.Crown Melbourne is Australia’s largest single site employer and Crown Perth isWestern Australia’s largest single site employer. The Crown Sydney Resort will alsomake a signi cant contribution to direct and indirect employment or the people oNew South Wales.

The Allen Consulting Report ound:

“Employment is estimated to increase by around 1,400 jobs rom 2018.

These are not just the jobs at Crown Sydney, but in many industries throughout the state.

Measuring employment using direct and multiplier e ects

An alternative method o estimating em ployment impacts rom the construction and operation phases takes into account direct and multiplier e ects:

• The construction of the Crown Sydney project is expected to create an average of 650 on-site construction jobs – this is direct e ect. The industry norm is that or every on-site construction job, there is an incremental job rom a related service provider o -site e.g. architects, designers, work being manu actured in o -site acilities – the

multiplier e ect. This equates to total average construction employment o 1,300 per annum over the construction phase.

• When the complex is fully operational, Crown expects to employ abo ut 1,250 people. The American G aming Association (2012) estimated that every job in the gaming industr y creates an additional 1.34 jobs in other sectors o the economy,corresponding to an employment multiplier o 2.34. The ann ual employment impact during the operational phase would under these circumstances be 2,925.”



3534

3. Business investmentThe Crown Sydney Resort will boost business investment signi cantly right throughoutthe New South Wales economy, during both construction period and the operationalperiod.

“The integrated resort complex is projected to lead to signi cant and ongoing increases in business investment, such as spending on equipment and buildings. Increases in business investment (not just Crown’s investment, but throughout the economy) areobserved throughout the modelling period, rom 2015 onwards till 2027.

During the construction phase, investment in the NSW economy increases, relativeto the baseline, by over $200 million per year. Importantly, this boost to investment continues even after the complex has been built, as the ongoing positive impact onthe NSW economy leads to urther increases to investment, o between $140 million

and $200 million every year. This is the critical eature o the economic impact o thecomplex — it has an ongoing positive effect on the NSW economy.”

Source: Allen Consulting Report

4. Export incomeExpenditure on domestically produced goods and services by international visitors isconsidered export income by ec onomists and the Australian Bureau o Statistics.

The Crown Sydney Resort will signi cantly boost New South Wales export income as aresult o additional international visitors to New South Wales.

“A very notable feature of the complex’s economic effects is that, once operational,the complex will generate signi cant additional exports from NSW, of around $400

million per year.”


5. Tourism infrastructure and hotel bedsThe Crown Sydney Resort at Barangaroo will be an architectural landmark on SydneyHarbour which will attract millions o visitors. It will become a Sydney icon, which willincrease New South Wales’ tourist appeal both domestically and internationally.

The hotel resort will also he lp alleviate the shortage o available premium hotel rooms in

Sydney. As noted above in the Objectives, there is an urgent need to provide new tourismin rastructure and more premium accommodation supply.

The Visitor Economy Task orce Report highlights the extent o the problem:

“NSW Visitor accommodation in Sydney is a critical in rastructure need. Sydney hasone o the highest average annual hotel occupancy rates, at over 80 per cent, o any capital city in Australia. This means that, requently throughout the year, there are

insu cient rooms available to meet demand.

As occupancy levels have reached this level, hotel room rates have risen, putting more pressure on the ‘value- or-money’ equation that is now o ten a strong part o thedecision to visit a destination o r stage an event here.”

6. Allowing Sydney to at tract more international government,business and sporting events

A six star hotel resort on the water ront at Barangaroo will assist Sydney to compete withthe best cities in the world or major international con erence s and events.

The Crown Sydney Resort will become a critical asset when New South Wales bidsor these events, complimenting the new convention and con erence acilities beingdelivered by In rastructure New South Wales.

7. The Crown Sydney Resort will support local charity andcommunity events

Just as Crown Melbourne and Crown Perth support local charities and communityevents with nancial support and sponsorships, particularly in the nature o subsidisedunctions in the Crown Melbourne and Crown Perth meeting and unction rooms, itis envisaged that the Crown Sydney Resort will support a similar array o New South

Wales and Sydney based community events a nd charities by providing nancial supportand sponsorships. The Crown Sydney Resort will include a number o unction roomsand meeting spaces which can be o ered on a subsidised basis. In addition, theCrown Sydney Resort would seek to establish its pro le in Sydney by sponsoring keycharitable, sporting, arts and education organisations.

The Crown Sydney Resort willsigni icantly boost New South

Wales export income as a resulto additional international visitorsto New South Wales.



3736

8. Tax revenueGaming regulation, including taxation, is managed on a state by state basis. Each statein Australia has its own regime or taxation o gaming. While the taxation regime variesacross each state, typically gaming is taxed based on a percentage o gaming revenue(the net amount o bets placed less prizes paid). The Crown Sydney Resort project willgenerate additional VIP gaming revenue or New South Wales which, it is expected,will be subject to a gaming tax levied by the State. Based on Crown’s experience inother jurisdictions this gaming tax revenue or New South Wales is likely to provide asubstantial contribution to the state budget.

In relation to the anticipated gaming taxation revenue to the State, it should be notedthat the project incorporates VIP only gaming acilities. That is, the typical publiclyaccessible main gaming foor business which constitutes the balance o the gamingrevenue generated at both Crown Melbourne and Crown Perth will not be included inthis project. As a result, the total gaming revenue generated by the hotel resort will belower than that experienced at other Crown properties which are not limited to only VIPgaming activities.

9. Crown will attract more Chinese and Asian visitorsto Sydney

Crown’s Melbourne and Perth resorts have demonstrated their strength in attracting alarge proportion o outbound tourists rom China and other parts o Asia. Crown hasinvested heavily in both its in rastructure and its employees to ensure that its Australianintegrated resorts are o major appeal to the rising number o Asian middle class tourists.

Crown’s strong brand recognition in Asia and its detailed understanding o the desireso Asian tourists will help ensure that the Crown Sydney Resort also attracts a growingshare o visitors to New South Wales.

Given the growing importance o Asian tourists to Australia, the Visitor EconomyTask orce Report ound there is a m ajor need or New South Wales tourism operators tostart catering to their tastes:

“The pre erences o visitors rom these Eastern markets are di erent romthe traditional markets in terms of the experiences and destinations being sought,

as well as their spending and travel patterns. Understanding, meeting and exceeding the expectations of these visitors, while maintaining and growing NSW’s

share o the traditional inbound markets, will be essential i the 2020 target is to be reached. Resource allocation mu st be directed to target the growth outlooks o the respective markets.”

10. Increase visitor spendThe Crown Sydney Resort will also help increase Sydney’s overnight visitor expenditure,with studies showing that visitors to luxury integrated resorts have a much higher percapita spend than other tourists.

“In a submission to the Productivity Commission’s Inquiry into Gambling, the Tourism& Transport Forum highlighted the signi cant contribution by integrated resorts in

Australia in 2008:

Casino visiting tourists spend approximately $4,941 per person compared to $2,628 per non-casino visiting tourists”


The Visitor Economy Task orce Report argues that it is critical that New South Wales

look at strategies to increase visitor spend;“NSW requires growth not only in visitor numbers but also in visitor spend. High-

spending, particularly high-yield international visitors, predominantly rom China, have been identi ed in this Plan as a key target market and represents a signi cant opportunity to increase overnight visitor expenditure. Achieving the target requires

growth in both international visitor numbers and nights stayed. NSW needs appropriately targeted strategies to tailor products and experiences that meet thedemands o high-yield visitors.”

Crown has invested heavily in itsin rastructure and its employeesto ensure that its Australianintegrated resorts are o major appeal to the rising number o

Asian middle class tourists.



3938

11. Training and model employer Sydney will bene t rom Crown’s experience and industry leade rship on the employmentand training ront.

Crown invests heavily in sta training at its resorts in both Melbourne and Perth and itwould do so in Sydney as well.

Crown has developed a purpose built $10 million dollar training acility in Melbourne,which has trained over 10,000 employees in the last 13 years. Currently, more than1,000 employees, representing over 15% o the work orce are obtaining an accreditedquali cation. Crown has also graduated over 4,300 apprentices and trainees.

Given the high turnover in hospitality sta , Crown’s investment and commitment totraining will bene t the sector generally a nd help meet Sydney’s overall short all in hoteland hospitality sta .

The Visitor Economy Task orce Report noted the ollowing:

“There is a need to increase the number and skills o Australian residents in order toll the gap in demand or labour in the visitor economy.

A lack o post-school quali cations signi cantly restricts career progression and earning potential or workers in the visitor economy. This results in di culties in sourcing and retaining sta . The uptake o Certi cate II and III programs in hospitality in NSW has reduced signi cantly, partially as a result o the removal o incentives or traineeships in these areas by the Commonwealth Government and State Governments.”

12. Indigenous employmentThe Crown Sydney Resort will make long-term jobs or Indigenous Australians acentrepiece o Crown’s employment strategy.

• Crown currently provides one of the most developed and successful Indigenoustraining and employment programs in the country.

• In September 2009, Crown was the rst signatory to the Aboriginal EmploymentCovenant and was the rst company in Australia to provide employment opportunitiesunder the program. Crown’s commitment at the time was to make 300 jobs availableto aboriginal people. More recently Crown has committed to providing 2,000 jobs toaboriginal people over the next ten years.

• In 2010, Crown’s efforts in Indigenous employment were recognised with the Na tionalDiversity at Work Award and, more recently, Crown was named the AustralianBusiness Award Winner or Community Contribution 2012 in recognition o Crown’semployment and inclusion o Indigenous Australians.

• Crown’s commitment to addressing the retention of Indigenous workers is exempli edin the recently announced creation o a Work orce Participation Unit at Crown Perthdedicated to developing support or both the participants o the program and thebusiness areas.

• Leadership support, close relationships with the aboriginal community a ndgovernment agencies, a our week job readiness program, individual and groupsupport and dedicated internal resources are the key actors that have made Crown’s

Aboriginal Employment Program a success.

• This model will be replicated for the Crown Sydney Resort. Crown has signed theNCIE MOU with the NCIE in Red ern to provide a training acility or the CrownSydney Resort’s Indigenous work orce.

“It is probably one o the biggeststeps in the lasttwenty years inRed ern”Sol BellearBoard Member, NCIE



4140

13. The bene ts of additional VIP Customers for Sydney VIP gaming customers deliver signi cant revenue which then allows Crown to crosssubsidise the operations o other parts o the hotel resort such as the building design,the hotel rooms, the restaurants a nd leisure acilities. Without VIP only gaming acilities,the hotel resort would not be commercially viable.

The Allen Consulting Report described the bene ts o VIP gaming customers:

“The value o VIP casino gaming customers to the Australian economy can be summarised as:

• The VIP Casino business in Australia is estimated to be worth $1 billion in FY 2012 and it also generates additional signi cant high tourism on-spend.

• The VIP business supports Australian integrated resorts in investing in additional non-gaming in rastructure, including new and upgraded hotels, convention and con erence acilities, theatres, cinemas, restaurants and retail outlets etc, which

results in urther tourism on-spend.

The Australian VIP business mainly consists o high-value players, predominantly rom Asia, and more speci cally rom mainland China and Hong Kong. There is anestimated 30 million Chinese patrons in the VIP gambling market.

In 2011/12 the international VIP business in Australia is estimated to be worth $1 billion(prior to including the value o the tourism on-spend). Proceeds generated in VIP

rooms enable casinos to urther invest in tourism in rastructure, including world-class hotels, convention and con erence acilities, theatres, cinemas, restaurants and retail outlets, which results in urther tourism on-spend. Currently the casino industry is inthe process o spending over $4.6 billion on redeveloping and building new tourism

in rastructure. O equal importance is the act that 35 per cent o all revenue earned in Australian casinos returns to the community through taxes paid to the three levelso government.

Despite Australia’s geographic isolation, Australian casinos currently attract about 3 per cent o the highly competitive international VIP gaming business. Looking to

replicate Singapore’s and Macau’s success, competition or this market is increasingwith new integrated resorts opening in the Philippines and Vietnam, and possibly

Japan and Taiwan.

When VIP customers come to Australia they visit or ve to seven days (a much longer stay than or local and interstate customers) and are mostly accompanied by amily or riends who participate in a range o other tourism activities bene cial to the economy,

such as shopping, visiting major tourist attractions and other destinations apart romthe city in which they are staying.

It has also been known or these infuential and highly regarded business people’s contribution to develop beyond tourism expenditure into investment in Australian businesses.

State and territory regulators recognise the importance o the high-roller business and Australia’s place within a global market. For that reason state and territory governments have responded with a different taxation scheme for the VIP business, setting rates,which are competitive with Las Vegas and the Asian markets.

There can be no doubt that competition is increasing in the worldwide VIP business.Singapore’s casinos offer a lower tax rate on VIP gaming than Australia and theSingapore government is ocused on targeting high value players or Marina Bay Sands and Resorts World Sentosa – Singapore’s two integrated resorts.”

“The VIP Casino business in Australia is estimated to be worth$1 billion in FY 2012 and it alsogenerates additional signifcanthigh tourism on-spend.”Source: The Allen Consulting Repor t (August 2012)



Melbourne, Australia 100% owned

Perth, Australia100% owned

London, United Kingdom100% owned

42 43

Organisation

i. Our organisationCrown is one o Australia’s largest entertainment groups. It has businesses and investmentsin the integrated resort and entertainment sectors in Australia and Macau a nd wholly-ownsand operates a high-end casino in London. Crown is an S&P/ASX 50 company and listedon the ASX with a market capitalisation o approximately $6.5 billion. In the nancial yearended 30 June 2012, Crown generated revenue o $2,809 million and Statutory Pro t o$513.3 million.

Financial and commercial detailsCrown is an S&P/ASX 50 company with a market capitalisation o approximately $6.5 billion.

As at 30 June 2012, Crown had total liquidity (as measured by available cash and committedundrawn bank acilities) o $512.4 million. Subsequent to 30 June 2012, Crown has raised$300 million through the issue o senior notes in the Australian Medium Term Note marketand has completed the book build or an issue o at least $525 million o subordinated notesto domestic retail and institutional investors. Crown’s total committed a nd undrawn liquidityollowing the completion o these transactions will be approximately $1.3 billion. A process tore nance and replace maturing bank debt has also commenc ed. As a result, Crown believesit has access to su cient nancial resources, either in existing acilities or through potentialnew acilities, to nance the Crown Sydney Resort project.

Crown has an exclusive right to negotiate with Lend Lease to develop the Crown SydneyResort on the Baranga roo South site, over which Lend Lease is the exclusive developer.

Crown intends negotiating with Lend Lease and the BDA to agree the nancial andcommercial details o the Crown Sydney Resort, including the costs o construction andoperation and the price and terms on which Crown (or its nominee) would acquire that parto the Barangaroo South site on which the Crown Sydney Resort is to be loca ted.

Crown expects that the total cost o the Crown Sydney Resort will be up to $1 billion,depending upon the nal scale and con guration o the project. Crown also intends exploringthe option o having other parties co-invest in the project.

The nancial details o the Crown Sydney Resort Project will need to be negotiated andagreed as part o Stage 2 and Stage 3 o the Unsolicited Proposal process.

Costs to GovernmentCrown does not anticipate any direct costs to the New South Wales Government arisingrom this project. However, it should be noted that:

• The BDA will incur costs in carrying out its functions in overseeing the development ofthe Barangaroo site. Such costs would have presumably be en incurred whether or notthe Crown Sydney Resort Project proceeds.

• The operation of VIP only gaming facilities at the Crown Sydney Resort may necessitatethe New South Wales gaming regulator, the Independent Liquor and Ga ming Authority(ILGA), having to engage additional sta , most likely additional inspectors and auditors,to carry out ILGA’s unctions in respect o the new VIP casino. Crown would anticipatethe additional resources potentially required by ILGA would carry an additional annualcost o no more than $500,000. This is likely to be more than o set by additionalgaming taxes payable by the Crown Sydney Resort’s VIP only gaming operation.

• The New South Wales Government will presumably incur some costs in assessingthis proposal.

Crown businesses

Crown investments

Crown Melbourne

Melco Crown Betfair Australia

Cannery Casino Resorts

Aspers Group

Echo Entertainment Group

The Aspinall’s ClubCrown Perth

Macau,People’s Republic of China

33.6% interest

Australia50.0% interest


United Kingdom50.0% interest




4544

ii. Previous experience in delivery o similar projectCrown has extensive experience in the construction and operation o world classintegrated resorts. Crown owns and operates two o Australia’s leading integratedresorts, Crown Melbourne and Crown Perth. Through a joint venture in Macau,Crown played a leading role in the development o the Altira Mac au (previously CrownMacau) and City o Dreams acilities and will have signi cant input into the design anddevelopment o Studio City.

Crown MelbourneCrown Melbourne opened in 1997 – an unprecedented $2.0 billion development, whichincluded the luxurious ve star, award winning Crown Towers hotel, world class gamingacilities, the Palladium Ballroom (Melbourne’s largest), a 900-seat theatre, a cinema andentertainment complex, nightclubs, a number o restaurants and bars a nd high-end retail.

Crown invested a urther $150 million in the construction o Crown Promenade, a our

star, 465-room hotel which opened in 2003. T his o ering, targeted at corporate travellers,included a state-o -the-art con erence centre and extensive leisure acilities.

Crown invested a urther $370 million in the construction o the ve star Crown Metropolhotel and complementary Crown Con erence Centre. Crown Metropol, Australia’s largesthotel, consisting o 658 rooms, opened in 2010.

As part o the ongoing signi cant capital expenditure program aimed at ensuringCrown Melbourne remains one o the world’s leading integrated resorts, complex-widere urbishment and expansions have been undertaken and include:

• Extensive refurbishment of existing hotels, resulting in Crown Towers being awarded Australia’s ‘Best large luxury hotel 2012’ 1

• Signi cant upgrade to the VIP salons and villas resulting in Crown being awarded the‘2012 VIP Gaming Room o the Year’ 2

• Extension and refurbishment of the premium gaming offering the Mahogany Room andClub 23

• Development of the West End – a 15,000 sqm, all-encompassing entertainment precinctincluding a number o restaurants, bars and gaming options

• Ongoing oor wide refurbishment of the main gaming oor

The scale and quality o the capital expenditure program undertaken has cementedCrown Melbourne’s reputation as a world class integrated resort. As one o Australia’smost visited tourist destinations, both the Victorian and Australian tourism industrieshave bene ted rom this large scale investment program.

Crown Melbourne served as the catalyst or both residential and commercial development.Today Southbank is one o the primary business and entertainment precincts in GreaterMelbourne. The Southbank Promenade and Southgate Arts and Leisure Precinct is oneo Melbourne’s major arts and cultural destinations.

1 Awarded as part o the Reader’s Choice Gourmet Traveller 2012 Travel Awards.2 Awarded at the International Gaming Awards 2012.

Southbank post the development o Crown Melbourne



47

Crown Perth

Crown acquired Crown Perth in 2004. In the years prior to Crown taking control oCrown Perth, minimum capital had been invested in the property. Since acquisition,Crown has committed to modernising and expanding the acilities at the complex tobring it up to the standard o a world class integrated resort capable o competing in a nexpanding and increasingly competitive global entertainment and tourism market.

The developments to-date have taken the orm o upgraded accommodation to veand six star standard in and adjacent to Crown Metropol Perth (previously the InterContinentalhotel), expanding the outdoor resort swimming pool taking advantage o Perth’s naturalenvironment and climate, new internationally acclaimed restaurants, such as Rockpool Bar & Grill and Nobu, expanded con erence and meeting acilities and an expanded and modernisedcasino and accompanying ood and beverage outlets to meet world standards.

In August 2012, Crown urther demonstrated its long term commitment to Australiantourism, with the decision to undertake the development o a new six star, luxury hotelto be known as Crown Towers Perth, with total investment estimated at $568 million.The development o the new hotel will take Crown’s investment in the Crown Perthcomplex to over $1.3 billion since acquisition.

Upon completion, Crown Towers Perth will be the largest hotel in Perth and take the totalhotel room capacity at Crown Perth to nearly 1,200 rooms. Construction is expected tocommence in early 2013 and the hotel, which will take approximately 3 years to complete,will comprise 500 rooms and include restaurants, bars, resort and convention acilities.

In September, Burswood was rebranded ‘Crown Perth’. This change will allowCrown Perth to utilise the internationally recognised Crown brand in order to increase thenumber o international and interstate visitors to Perth, especially rom the strategicallyimportant China market.

Crown’s ongoing investment at Crown Perth illustrates a commitment to making it a worldclass entertainment precinct to compete not only in the region, with the mega resorts inSingapore and Macau, but also globally, where large integrated resorts are increasinglybeing developed in an endeavour to capture a share o the expanding tourism market,particularly out o China.

Ongoing Investment Australian investment in large sc ale tourism attractions ha s be en relatively modest inrecent years. In contrast, Crown has been and continues to be a signi cant investorin Australian tourism in rastructure. Between F07-F16, Crown has announced capitalexpenditure o approximately $3.2 billion in maintaining, improving and expandingits acilities at both Crown Melbourne and Crown Perth. This signi cant and ongoingprogram illustrates Crown’s commitment to ensuring its properties remain among theleading integrated resort o erings in the world and able to compete in the increasingcompetitive global tourism market.

F07

140 140

324 290231 231

13475 60 60

63 63

6566

140232

267

263 277

72

Crown Melbourne (Actuals) Crown Perth (Actuals)

Crown Melbourne (Forecast) Crown Perth (Forecast)

0

50

150

300

200

350

100

250

400

450

500

$ m

i l l i o n s

F08 F11F09 F12F10 F13 F14 F15 F16



Crown’s City o Dreams Resort, Macau

49

Altira MacauThrough Crown’s joint venture in Macau, MCE, Crown played a leading role in thedevelopment o Altira Macau (previously Crown Macau). Altira Macau opened in 2007and cost approximately US$500 million. Situated in the heart o Taipa, Macau, AltiraMacau o ers panoramic views o the Macau Peninsula. The extraordinary 38-storeycomplex eatures 216 lavishly appointed guest rooms, including 24 deluxe suites and8 astounding villas, all showcasing an un orgettable skyline. Altira Macau combinescom ort and style to elegant e ect, o ering impeccable service tailored to each guest.The hotel is home to a host o world-class culinary experiences, chic clubs and anaward-winning day spa.

City of Dreams, Macau

Through MCE, Crown played a leading role in the development o City o Dreams. Cityo Dreams is an integrated resort in Cotai, Macau which opened in June 2009 ollowingthree years o construction at a cost o US$2.2 billion. City o Dreams targets premium

mass market and VIP players rom regional markets across Asia. The integrated resorteatures a gaming area, the Crown Towers hotel and the Hard Rock Hotel each o erapproximately 300 rooms, and the Grand Hyatt Macau hotel o ers approximately 800rooms. City o Dreams includes over 20 restaurants and bars, approximately 70 retailoutlets, an audio visual multimedia experience, recreation and leisure acilities, includinghealth and tness clubs, swimming pools, sap and salons and live entertainment space.

The Dancing Water Theatre, a wet stage per ormance theatre with 2,000 seats, openedin September 2010 and eatures the internationally acclaimed ‘The House o DancingWater’ show.

Studio City Macau

Through MCE, Crown expects to play a central role in the development o the StudioCity project, an integrated resort in Cotai, Macau. MCE has a 60% equity interest in theStudio City project. Studio City is expec ted to include a variety o interactive, productionstudio-derived attractions designed to captivate their target market and signi cantlyexpand Macau’s appeal as a multi aceted tourism destination.

iii. Past per ormance operating similar projectCrown is widely acknowledged as the best operator o integrated resorts in Australia.Both Crown Melbourne and Crown Perth continue to per orm well despite the so teningconsumer economy. Crown’s contribution extends beyond the operation o these twoproperties as businesses. Crown provides signi cant investment in tourism in rastructure,extensive employee training, considerable tax revenues or the relevant governmentsand makes an invaluable contribution to Australia’s tourism o ering.

Crown MelbourneCrown Melbourne attracts 18 million visitors each year, making it one o Australia’s mostvisited tourist attractions. It is also Victoria’s largest single-site employer with more than6,500 employees and contributes over $1.5 billion per annum o value-added to the

Victorian economy. 3

Normalised EBITDA after Crown Ownership

Normalised EBITDA before Crown Ownership

Crown MelbourneNormalised EBITDA

0

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$ m

F Y9 9 F Y0 0 F Y01 F Y02 F Y0 3 F Y0 4 F Y0 5 F Y0 6 F Y07 F Y0 8 F Y0 9 F Y10 F Y11 F Y12

3KPMG Econtech Modelling 2010.



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Crown PerthCrown Perth is a m ajor Western Australian tourist attraction with more than seven millionvisitors each year. It is the state’s largest single-site employer, with more than 4,600employees and contributes $510 million per annum o value-added to the Western

Australian economy. 4

Normalised EBITDA after Crown Ownership

Normalised EBITDA before Crown Ownership

Crown PerthNormalised EBITDA

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

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50

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$ m

Impacted by increased competition

from two new integrated resorts inSingapore and the renovations on theproperty

iv. Facilities to be used (e.g. land owned by proponent or Government land)Crown does not require any government acilities to construct and operate the CrownSydney Resort.

Crown has an exclusive right to negotiate with Lend Lease Corporation Limited (“LendLease”) to develop the Crown Sydney Resort on the Barangaroo South site, over whichLend Lease is the exclusive developer.

Crown intends negotiating with Lend Lease and the Barangaroo Delivery Authority toagree the price and terms on which Crown (or its nominee) would acquire that part o theBarangaroo South site on which the Crown Sydney Resort is to be located.

Intellectual property

i. Inventory o each item o intellectual propertyThe Crown brand, including the distinctive Crown logo, is synonymous with luxuryexperiences, world’s best service standards and diverse entertainment. The brand iswell recognised throughout Australia and internationally, in particular in Asia.

Crown has intellectual property in the orm o know-how in relation to its VIP business,in particular:

• Information in relation to casino patrons (including but not limited to customer lists)

• Knowledge of how to attract “high rollers” through the VIP business

Crown caters to the unique needs o its VIP gaming guests by o ering fexible andpersonalised service and by having the highest quality acilities. Individual client’s pro les,needs, pre erences, gaming habits, past gaming data are docum ented, captured, stored,updated and utilised on a real time basis. Understanding the service and cultural needsand expectations o the VIP customer on the basis o this in ormation and knowledge isparamount and critical to the success o the business.

The nancial per ormance and the nancial modelling associated with Crown’s VIPgaming business is proprietary and con dential to Crown.

Crown is a party to an Exclusive Dealing Agreement with Lend Lease to exclusivelynegotiate the design and construction o the Crown Sydney Resort at Barangaroo.

The Allen Consulting Report is proprietary and con dential to Crown.

4KPMG Econtech Modelling 2010.



ii. Nature o the intellectual property claimed(e.g. copyright, patent, etc.)Crown has numerous trademarks registered in Australia, Asia (including Macau, HongKong and China) and internationally to protect its brand. The trademarks are supportedby business name, domain name and corporate name registrations.

VIP patron data is retained on proprietary developed so tware applications such asSYCO and CDW.

Crown has exclusive contractual rights to negotiate the development o the Crown SydneyResort at Barangaroo.

iii. The owner(s) of the intellectual property claimedCrown Limited through its wholly owned subsidiary Crown Melbourne Limited owns allthe registered trade marks. Where appropriate, Crown Melbourne Limited has granted

licences to use some o these trade marks to other subsidiaries and joint venture partners.The intellectual property in Crown’s VIP customer data and the details o the nancialper ormance and the nancial modeling o Crown’s VIP gaming business is owned byCrown through a number o its wholly owned subsidiaries which operate VIP gamingacilities, including Crown Melbourne Limited, Burswood Nominees Limited and

Aspinall’s Club Limited.

iv. Registration details (where applicable)Crown Melbourne Limited is registered owner o over one hundred trade marks in

Australia and internationally. Full details o registration details o relevant trademarks canbe provided on request.

The intellectual property in Crown’s VIP customer data and know-how is not capableo registration.

v. Details o any items or which confdentiality is whollyor partly claimed.Crown’s know-how in relation to its VIP gaming business, in particular the identity andpersonal particulars o its VIP gaming customers is highly con dential and commerciallysensitive.

The nancial per ormance and the nancial modelling associated with Crown’s VIPgaming business is proprietary and con dential to Crown.

The terms o the Exclusive Dealing Agreement between Crown and Lend Lease arestrictly con dential and Crown is not permitted to disclose these terms without LendLease’s consent.

The Allen Consulting Report is con dential to Crown and Crown reserves the right not topublicly release the Allen Consulting Report.



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Other statementsEnvironmental Impacts

The New South Wales Government intends that Ba rangaroo will be a great opportunity toshowcase Sydney as a world leader in sustainability. Sustainable designs and initiativesare being created throughout the delivery o the program - environmentally, socially andeconomically.

Barangaroo’s goal is to be the rst precinct o its size in the world and certainly the rstCBD precinct in Australia, to be climate positive.

The plan is to generate more renewable energy than is used at Barangaroo, recycle andexport more water than is used and reuse, reduce and recycle more waste rom the citythan is generated.

The project will be carbon neutral, water positive, generate zero waste and enhance thewellbeing o the community.

The project will provide a ordable housing or key workers as well as green skilling andlocal employment opportunities. Just over 50% o Barangaroo will be dedicated publicspace, including a 2.2 kilometre oreshore walk and the vibrant, naturalistic Headland Park.

To achieve these goals, Barangaroo in rastructure will be developed and implemented bythe BDA and the site’s developers across the whole district.

Crown will work with all stakeholders, in particular the BDA and Lend Lease, in negotiatingand agreeing the design and development o the hotel resort to ensure the hotel resortplays its part in meeting Barangaroo’s environmental ambitions.

Pre erred contractual arrangements

i. Casino LicenceIn order to operate VIP only gaming ac ilities at the Crown Sydney Resort, Crown (orits relevant subsidiary) will require a casino licence to be issued by the New SouthWales Government, subject to necessar y probity and nancial due diligence on Crownconducted by ILGA. The issuing o a new casino licence would require amendments tothe Casino Control Act 1992 (NSW).

ii. Casino AgreementCrown assumes that i this project proceeds it will be required to enter into a Casino

Agreement between Crown (or its relevant subsidiary) and either the State o New SouthWales or ILGA which records the parties’ agreement and which may or may not includethe ollowing:

• Crown’s development deliverables;

• The rate of any gaming taxes or other levies;

• The number and type of gaming products permitted in the casino;

• Requirements as to casino operations; and

• Licence terms and conditions.

iii. Design and Construct AgreementUnder the Exclusive Dealing Agreement between Crown and Lend Lease, Crown isrequired to enter into a Novated Design and Construct Agreement with Lend Lease orone o its subsidiaries to construct the Crown Sydney Resort.



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APPENDIX

Memorandum o Understandingbetween Crown Limited and United Voice –

New South Wales Branch

1. United Voice – NSW Branch (“UV”) is a project partne r in the Crown Limited (“Crown”)proposed project to develop a six star hotel resort (including VIP ga ming acilities) atBarangaroo South in Sydney (“Crown Sydney Resort”).

2. As a project partner, Crown will consult and work with UV to deliver the Crown SydneyResort project and in the development o work orce planning, training and development.

3. UV has the right o coverage with respect to rontline (non-management) hospitality/

gaming employees and any other employee UV represe nts in NSW, engaged at theCrown Sydney Resort.

4. Crown acknowledges that UV has rights o acce ss to those employees in accordancewith the Fair Work Act 2009 (Cth) as am ended or replaced rom time to time.

5. Crown will:

• allow UV representatives to make a presentation to new employees of the CrownSydney Resort during their induction training (subject to terms to be agreed);

• provide UV with an of ce to service its members employed at the Crown SydneyResort at a location to be agreed between Crown and UV;

• supply all new employees for the Crown Sydney Resort with a UV membershiporm in their pre-employment packs; and

• facilitate payroll deductions for employees at the Crown Sydney Resort for unionees or acilitate bank account details o individual employees who may use directdebit acilities, or those employees who have agreed to such arrangements.

6. The parties agree to negotiate an enterprise agreement to cover the rontline (excludingmanagement) hospitality / gaming employees at the Crown Sydney Resort and any otheremployees agreed between UV and Crown. The objectives o the agreement would

include, but are not limited to:• the development of harmonious and productive working relations and an

adherence to issue resolution procedures to avoid any disruption to customers,business or services provided by Crown;

• the provision of terms and conditions of employment which are fair andreasonable;

• the development and introduction of exible working arrangements, having regardto the 24 hour, 7 day operation o the business and the fuctuations in demand orlabour which occur; and

• consultation on relevant employment issues with a recognition of the respectiveroles management, employees and the union play in the workplace under theproposed agreement and the requirements to operate a commercially viable andprosperous business or the bene ts o both the operator and employees.

7. It is intended that the e nterprise agreement would cover, but not be limited to, theollowing topics:

• wages;

• conditions of work;

• hours of work;

• change consultation;

• dispute resolution; and

• union delegates and union recognition.

8. UV acknowledges the commercial necessity o gaming smoking exemptions or areasused by VIPs in the proposed Crown Sydney Resort. Crown acknowledges the need orstate o the art air quality tech nology together with appropriate rostering practices toappropriately manage the air quality in smoking exemption areas in VIP gaming areas.

9 UV acknowledges the 24/7 nature o the operational needs o the Crown Sydney Resortand will work to ensure this is not interrupted nor hindered.

10. UV will work with Crown in developing and supporting an indigenous employmentprogram or Sydney including (subject to Crown’s and UV’s legal obligations) jobtargets, specialised training, school based apprenticeships, support and mentoring.

11. This Memorandum o Understanding (“MOU”) will be wholly replaced and supercededwhen Crown and UV enter into a binding enterprise agreement covering the relevantemployees at the Crown Sydney Resort.

12. This MOU will automatically terminate i the Crown Sydney Resort does not proceed orwhen the parties mutually agree to its termination.

13. This MOU shall be governed by the laws in place in NSW and the parties submit to thenon-exclusive jurisdiction o the courts in NSW.

For and on behal o Crown Limited

For and on behal o United Voice – NSW Branc h

Signed 4th September 2012:



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APPENDIX

Memoranum o Understandingbetween Crown Limited and National Centre or

Indigenous Excellence

1. National Centre o Indigenous Excellence (“NCIE”) is a Project Partner with CrownLimited (“Crown”) in the proposed project to develop a six star hotel resort atBarangaroo South in Sydney (“Crown Sydney Resort”).

2. As a Project Partner, Crown will work with NCIE to develop and deliver Indigenousemployment programs or the hospitality areas o the Crown Sydney Resort, including:work orce planning, recruitment, school based trainees, pre employment training,quali ed certi cation cross-cultural competency and career development or up skilling.

3. NCIE will provide Crown access, at agreed rates, to its acilities at Red ern to establishthe Crown Sydney Indigenous Training College. Crown would utilise the NCIE’scommercial kitchen areas, ser ving acilities, training rooms, administration areas anddormitories or the training o its Indigenous and non indigenous sta . This work will beundertaken in such a way as to not impede the NCIE’s other program delivery activities.

4. Crown will become a Platinum Partner o NCIE receiving all the opportunities arisingrom that status. A separate commercial c ontract will be put in place to support thistraining acility prior to the commencement o courses.

5. As a registered training organisation (RTO) Crown or its wholly owned subsidiary will bethe primary training provider on the Red ern site or the courses or which Crown or itssubsidiary is accredited, but it is agreed that NCIE may decide in uture to apply or RTOaccreditation and Crown could assist in the training o NCIE sta and the boosting oNCIE capacity in this area. With a greement Crown may determine to contract training toother RTOs with experience in delivering Indigenous training programs.

6. Crown trainees and training sta will have ull acc ess to the recreational acilities at theNCIE while participating in training at the College.

7. A pathway rom school to employment in hospitality will be e stablished by Crownand NCIE with local high schools to develop employment pathways through Crownsponsored school based traineeships.

8. While training or Crown Sydney Resort would not commenc e until the Crown SydneyResort was closer to opening, both pa rties will investigate possibility o the NCIE trainingsta sooner to work at Crown’s Melbourne and Perth resorts.

9. The NCIE and Crown will work together to investigate the possibility o establishing asimilar training acility in Western Sydney or Indigenous and non indigenous job see kers.

8. While training or Crown Sydney Resort would not commence until the Crown SydneyResort was closer to opening, both parties will investigate possibility o the NCIE trainingsta sooner to work at Crown’s Melbourne and Perth resorts.

9. The NCIE and Crown will work together to investigate the possibility o establishing asimilar training acility in Western Sydney or Indigenous and non indigenous job seekers.

10. Crown and the NCIE agree to work together with Crown’s Trade Union Project Partner,United Voice – NSW Branch, on Indigenous Employment programs.

11. Crown will provide executive and non executive sta to provide mentoring and careerdevelopment programs or NCIE sta at times that are mu tually agreeable. Crown andNCIE will also establish a program or sta rom both organisations to be seconded intoeach other’s acilities to help develop the skills, business and cultural expertise o bothorganisations.

12. Crown and the NCIE will acknowledge each other as partners in selected marketingand publicity materials, newsletters, websites etc. as agreed by both partners on a caseto case basis.

13. Crown will provide sta with the opportunity to support NCIE directly throughworkplace giving and other direct individual donation schemes.

14. Crown and NCIE will jointly collect data resulting rom the partnership and agree thatNCIE will use the data to contribute to NCIE’s broader impact measurement ramework.

15. This MOU will automatically terminate a ter two years i the Crown Sydney Resort doesnot proceed or when the parties mutually agree to its termination. On the success ulapproval o the Crown Sydney Resort by the NSW Government and relevant authorities,the Project Partnership will continue as agreed by the parties.

16. This MOU shall be governed by the laws in place in NSW and the parties submit to thenon-exclusive jurisdiction o the courts in NSW.

For and on behal o Crown Limited

DATED this 6th day o September 2012

SIGNED:

For and on behal o NCIE



Forward Looking Statements Disclaimer

This document may include orward looking statements. Forward looking statements, by their nature, involveinherent risks and uncertainties. Many o those risks and uncert ainties are matters which are beyond Crown’s controland could cause actual results to di er rom those predicted. Variations could either be materially positive ormaterially negative.

This document has not taken into account any particular investor’s investment objectives or other circumstances.Investors are encouraged to make an independent assessment o Crown.



For further information please contact:John Bresnan

General Manager

Promotional Version of Crown's Submission in Support of Its Unsolicited Proposal

Documents

Transcript of Promotional Version of Crown's Submission in Support of Its Unsolicited Proposal