Crown
Limited
Annual General
Meeting
30 October, 2012
2 Crown Limited Annual General Meeting 30 October 2012
1. F12 Year in Review
2. Recent Trading Update
3. Capital Expenditure Update
4. Crown Sydney Update
5. Crown: Building a Global Luxury Brand
6. Singapore’s Integrated Resorts – A Case Study
7. Crown Perth and Western Australian Tourism
8. Conclusion
Presentation Outline
3 Crown Limited Annual General Meeting 30 October 2012
1. F12 Year in Review
4 Crown Limited Annual General Meeting 30 October 2012
F12 Normalised
$m
F11 Normalised
$m
Variance F/(U)
F12 Actual
$m
F11 Actual
$m
EBITDA 722.0 664.9 8.6% 801.3 636.9
Depreciation and amortisation (218.3) (195.6) (11.6%) (218.3) (195.6)
EBIT 503.7 469.3 7.3% 583.0 441.3
Net Interest (102.1) (66.6) (53.3%) (102.1) (66.6)
Income Tax (81.8) (79.1) (3.4%) (106.5) (71.2)
Equity Accounted - Melco Crown - Betfair
92.1 3.1
19.2 (2.5)
379.7% 224.0%
135.8 3.1
34.9 (2.5)
Net Profit 415.0 340.3 22.0% 513.3 335.9
Crown Limited Group F12 Result
5 Crown Limited Annual General Meeting 30 October 2012
$m Australian
Casinos Variance
F/(U)
Main floor gaming 1,432.7 6.6%
VIP program play 635.3 18.7%
Non-gaming 562.1 5.1%
Total Revenue (Normalised) 2,630.1 8.9%
Gaming taxes and commissions (776.9) (17.6%)
Operating expenses (1,116.3) (6.0%)
EBITDA 736.9 5.1%
Depreciation & amortisation (214.4) (11.3%)
EBIT 522.5 2.8%
EBITDA / Revenue % 28.0% (1.0%)
VIP Turnover $ billion 47.0 18.7%
VIP Win Rate (1.35% theoretical) 1.58%
Crown Melbourne & Crown Perth Results Normalised F12 ($m)
6 Crown Limited Annual General Meeting 30 October 2012
Crown Melbourne Normalised EBITDA
Normalised EBITDA before Crown ownership
Normalised EBITDA after Crown ownership
0
100
200
300
400
500
600
F99 F00 F01 F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12
No
rma
lis
ed
E
BT
DA
$
m
7 Crown Limited Annual General Meeting 30 October 2012
0
50
100
150
200
250
F99 F00 F01 F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 F12
No
rma
lis
ed
EB
TD
A $
m
Crown Perth Normalised EBITDA
1. EBITDA growth for the period F05-F12
Normalised EBITDA after Crown ownership Normalised EBITDA before Crown ownership
8 Crown Limited Annual General Meeting 30 October 2012
Crown Melbourne & Crown Perth VIP Turnover
20
25
30
35
40
45
50
2005 2006 2007 2008 2009 2010 2011 2012
VIP
Tu
rno
ve
r (A
U$ b
illi
on
)
Year
Impact of Singapore
9 Crown Limited Annual General Meeting 30 October 2012
• 33.6% interest in Melco Crown Entertainment1
• Crown’s share of MCE’s normalised profit was $92.1 million
• Crown’s share of MCE’s reported profit was $135.8 million
• The Macau gaming market as a whole grew 29% in FY12
Melco Crown Entertainment (MCE)
0
10
20
30
40
50
60
70
80
Macau Gaming Market (Gross Gaming Revenue) Continues to Exhibit Strong Growth2
1. As at 30 June 2012 2. Sourced from the Government of Macao Special Administrative Region (DSEC). Data only includes revenue from games of fortune and excludes racing or lottery revenues
Bill
ion
MO
P
10 Crown Limited Annual General Meeting 30 October 2012
Macau: MCE has a 60% equity interest in the Studio City project - a new integrated resort to be constructed on the Cotai Strip in Macau
Melco Crown Entertainment – Studio City
11 Crown Limited Annual General Meeting 30 October 2012
Quality images of the Philippines
Melco Crown Entertainment - Philippines
MCE joint venture development and operation of a premium casino resort in Manila
12 Crown Limited Annual General Meeting 30 October 2012
• Paid a final dividend of 19 cps, franked to 50%
• Total full year dividend of 37 cps
• Dividend policy is to pay the higher of 37cps or 65% of normalised NPAT (excluding non-cash profits from associates) for the full year
Dividend
13 Crown Limited Annual General Meeting 30 October 2012
2. Recent Trading Update
14 Crown Limited Annual General Meeting 30 October 2012
Year on Year Revenue Growth for Crown Melbourne and Crown Perth (Combined)
1 July to 27 October 2012 (17 weeks)
Current Trading - Crown Melbourne and Crown Perth
Main Floor Gaming 8.0%
Non Gaming 5.9%
Normalised VIP Program Play revenue growth has been encouraging, given the recent slowdown in VIP gaming revenue in Macau
15 Crown Limited Annual General Meeting 30 October 2012
3. Capital Expenditure Update
16 Crown Limited Annual General Meeting 30 October 2012
Investment in Large Scale Tourism Attractions
Crown’s capital investment in the period F08 to F15 will amount to more than $2.8 billion
142
324 290
231 231
54
65
66
140
232
134
75 60
267
263 277
0
50
100
150
200
250
300
350
400
450
500
F08 F09 F10 F11 F12 F13 F14 F15
$ m
illio
ns
Crown Melbourne (Actuals) Crown Perth (Actuals)
Crown Melbourne (Forecast) Crown Perth (Forecast)
17 Crown Limited Annual General Meeting 30 October 2012
Crown Melbourne – West End
18 Crown Limited Annual General Meeting 30 October 2012
Crown Melbourne - Atrium Bar
19 Crown Limited Annual General Meeting 30 October 2012
Crown Melbourne - Conservatory
20 Crown Limited Annual General Meeting 30 October 2012
Crown Melbourne - Crown Towers Spa
21 Crown Limited Annual General Meeting 30 October 2012
Crown Melbourne - Rosetta
22 Crown Limited Annual General Meeting 30 October 2012
4. Crown Sydney Update
Crown Limited Annual General Meeting 30 October 2012 23
Crown Sydney Location Study
24 Crown Limited Annual General Meeting 30 October 2012
Source: The Daily Telegraph 28 September 2012
Sydney’s first six-star hotel
• Over 350 hotel rooms
• Signature restaurants
• Luxury retail
• Roof top pool and spa facility
• VIP gaming facilities
Economic Benefits
• 650 new on-site construction jobs
• 1,400 new jobs once operational
• Expected contribution of $400m annually to the NSW economy
(Source: The Allen Consulting Group, Economic Benefit Report, Aug 2012)
Crown Sydney – Hotel Resort
25 Crown Limited Annual General Meeting 30 October 2012
Impact of Crown’s Australian Integrated Resorts
• Overall economic impact estimated1 to be:
− $2.1 billion of economic value added from Crown Melbourne
− $800 million of economic value added from Crown Perth
• Direct and indirect employment impact estimated1 to be more than 23,000
people at Crown Melbourne and 7,700 at Crown Perth
• A major provider of training and career development opportunities for young
Australian’s including award winning indigenous employment programs
• Combined taxes attributable for FY12 was $760 million2
• More than $1 billion of Crown’s $2.8 billion revenue in FY12 (approximately
37%) was estimated to be generated from international visitors
1. KPMG 2012
2. Reflects local rates and levies, state gambling, land and payroll taxes, levies and licence fees, federal GST. PAYG, FBT and corporate income tax for Crown
Melbourne and Crown Perth only
26 Crown Limited Annual General Meeting 30 October 2012
5. Crown – Building a Global Luxury Brand
27 Crown Limited Annual General Meeting 30 October 2012
Crown: Building a Global Luxury Brand
28 Crown Limited Annual General Meeting 30 October 2012
The Opportunity is Asia
The rising Asian middle class
• Over 300 million in China alone - equal to the entire population of the USA
• By 2030 China is expected to have 1.4 billion middle class consumers compared to
365 million in the USA and 414 million in Western Europe
Source: Forbes: 2011
29 Crown Limited Annual General Meeting 30 October 2012
• China’s outbound travel market is one of the fastest growing in the world
• Increase of 566% between 2000 and 2011
• Forecast to reach 100 million by 2015
China’s Outbound Tourism Market
10.5m 12.1 16.6
20.2
28.9 31.0 34.5
41.0 45.8 47.7
57.4
70 million
100 million
0
10
20
30
40
50
60
70
80
90
100
110
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2015
Mill
ion
pe
op
le
Size of China's outbound tourism market, 2000-2020
Source: China National Tourism Administration CNTA & 2015 prediction by China National Tourism Association
30 Crown Limited Annual General Meeting 30 October 2012
• Australia is China’s top long-haul ‘must-visit’ destination
− Chinese visitors have increased from 105,000 visitors in 2001 to 500,000 in 2011
− Forecast to be over 1,000,000 in 2020
Importance of Chinese Tourism to Australia
105,000
172,000 217,000
292,000
358,000
500,000
669,000
795,000
886,000
1,001,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
Inte
rnat
ion
al a
rriv
als
fro
m C
hin
a
Chinese visitor arrivals to Australia, 2000-2021
Source: Tourism Research Australia, Tourism Forecast 2012 Issue 1
31 Crown Limited Annual General Meeting 30 October 2012
Australia is Facing Increased Competition for Chinese Tourism
• Australia now faces competition from over 140 countries that have Approved Destination
Status from China
• Between 2001-2011, arrivals from China have seen a compound annual growth rate of 13.1%
• Despite this growth, Australia's share of China’s total outbound travel market has decreased
from 1.3% in 2001 to 0.8% in 2011
32 Crown Limited Annual General Meeting 30 October 2012
6. Singapore’s Integrated Resorts – A Case Study
33 Crown Limited Annual General Meeting 30 October 2012
Singapore - Resorts World Sentosa
34 Crown Limited Annual General Meeting 30 October 2012
Singapore - Resorts World Sentosa
35 Crown Limited Annual General Meeting 30 October 2012
Singapore - Marina Bay Sands
36 Crown Limited Annual General Meeting 30 October 2012
Singapore - Marina Bay Sands
Crown Limited Annual General Meeting 30 October 2012 37 10/30/2012 9:06 AM
Singapore Integrated Resorts – Economic Benefits
First full year of IRs operation:
• Singapore’s GDP increased by 14.5% in 20101
Tourism revenue:
• Tourism revenue soared 49% in 20102
• Tourism revenue grew an additional 18% in 2011
Tourism receipts:
• Tourism receipts have almost doubled from $12.6 billion in 2009 to $22.2 billion in 2011
Visitor numbers:
• In 2011, visitor numbers increased 13% to 13.2 million
• On track to reach its target of 17.0 million visitors by 20152
1. Sourced from Ministry of Trade and Industry Singapore
2. Singapore Tourism Board
38 Crown Limited Annual General Meeting 30 October 2012
• The massive increase in Chinese
visitors to Singapore since the opening of its integrated resorts to 1.58 million in 2011 represents:
− An increase of 34.7% on 2010
− An increase of 68% on 2009 (before the opening of the integrated resorts)
Source: Singapore Tourism Board Statistics on Visitor Arrivals 31 Mar 2012
Singapore Integrated Resorts – Attracting Chinese Tourists
670,099
857,820
1,113,956
936,747
1,171,337
1,577,522
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Chinese tourists to Singapore, 2002 to 2011
Crown Limited Annual General Meeting 30 October 2012 39 10/30/2012 9:06 AM
Singapore Integrated Resorts – Jobs, Taxes & Gaming Revenue
Employment:
• Approximately 22,000 people are employed by the IRs
• Support more than 40,000 jobs throughout the economy1
Tax:
• Last year they paid S$1.1 billion (A$800 million) on gaming revenue of S$5.5 billion
Tourism receipts:
• Tourism receipts have almost doubled from $12.6 billion in 2009 to $22.2 billion in 2011
Gaming revenue:
• Will this year overtake the entire Las Vegas Strip
1. Sourced from Ministry of Trade and Industry Singapore
40 Crown Limited Annual General Meeting 30 October 2012
Entire Tourism Industry has Benefited
Singapore Hotel Occupancy and Average Room Rate Since the Opening of Integrated Resorts
76%
85%
87%
$191 $217
$245
0
50
100
150
200
250
300
70%
72%
74%
76%
78%
80%
82%
84%
86%
88%
2009 2010 2011
Average Annual Occupancy Rate Average Room Rate (S$)
• Thousands of conferences and events
• Marina Bay Sands: Over 6,000 events to attract over 1.9 million visitors
41 Crown Limited Annual General Meeting 30 October 2012
Prime Minister Lee Hsein Loong
Singapore – PM’s Recent Comments
“Business-wise [the integrated resorts] have done very well,” Mr Lee said. “Revenue-wise the government has done very well. From an urban planning point of view, it has done a lot for our skyline . . . it’s helped our image enormously.” The Prime Minister said it became imperative to build the two projects or lose out to rival jurisdictions in the region. “As the world was developing, as the business was developing, the casino became the integrated resort business – not just making it a place to gamble.
PUBLISHED: 13 Oct 2012, AFR
42 Crown Limited Annual General Meeting 30 October 2012
8. Crown Perth and Western Australian Tourism
Crown Limited Annual General Meeting 30 October 2012 43 10/30/2012 9:06 AM
Crown Understands the Asian Market
International Visitors to Crown
• Crown understands the Asian market
• More than one third of Crown’s revenue is estimated to be generated from international
visitors
Ken Henry
• Recently singled out Crown as an Australian company that understood the impact that the emerging middle class will have on Australia’s future growth
44 10/30/2012 9:07 AM Crown Limited Annual General Meeting 30 October 2012
Tourism Western Australia
• Western Australia achieved the highest growth in international visitor
numbers in Australia in 2011 – achieving 7% (Australia 3%)
‐ Chinese visitors to Western Australia increased by 57.5%
• Tourism Western Australia’s goal:
‐ “To double the value of tourism in Western Australia from $6 billion in 2010 to $12 billion by 2020.”
• Hotel room shortage in Perth threatens tourism growth
‐ Need for 1,900 hotel rooms by 2020 – Tourism WA ‐ Hotel room rates in Perth are the most expensive of all Australian
capital cities (11% above the average)
45 Crown Limited Annual General Meeting 30 October 2012
Transformation of Crown Perth
46 Crown Limited Annual General Meeting 30 October 2012
Crown Perth – Resort Pool
47 Crown Limited Annual General Meeting 30 October 2012
Crown Perth - The Mansions
48 Crown Limited Annual General Meeting 30 October 2012
Crown Perth – Infinity Suites
49 Crown Limited Annual General Meeting 30 October 2012
Crown Perth - Sky Salon
50 Crown Limited Annual General Meeting 30 October 2012
Crown Perth – Main Gaming Floor Expansion
51 Crown Limited Annual General Meeting 30 October 2012
Crown Perth - Nobu
52 Crown Limited Annual General Meeting 30 October 2012
Crown Perth – Bistro Guillaume
53 Crown Limited Annual General Meeting 30 October 2012
Crown Towers Perth
Perth’s first six-star hotel
• 500 luxury rooms
• Resort and Convention facilities
• Restaurants and bars
• Australia’s best resort swimming pools
A massive boost to WA’s economy and jobs
• $568 million investment
• 700 jobs during construction
• 500 jobs once operational
54 Crown Limited Annual General Meeting 30 October 2012
Crown Towers Perth
55 Crown Limited Annual General Meeting 30 October 2012
Crown – Building a Global Luxury Brand
Crown Limited Annual General Meeting 30 October 2012 56 10/30/2012 9:06 AM
• All information provided in this presentation is provided as of the date stated or otherwise as of the date of the presentation.
• This presentation may include forward looking statements. Forward looking statements, by their nature, involve inherent risks and uncertainties. Many of those risks and uncertainties are matters which are beyond Crown’s control and could cause actual results to differ from those predicted. Variations could either be materially positive or materially negative.
• Some information which has been included in this presentation has been provided by a third party and Crown does not assume responsibility for the correctness or accuracy of the information.
• This presentation has not taken into account any particular investor’s investment objectives or other circumstances. Investors are encouraged to make an independent assessment of Crown.
Disclaimer
Crown
Limited
Annual General
Meeting
30 October, 2012
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