Crown Resorts Ltd Annual Report 2009

FY2009 Annual Report · Crown Resorts Ltd
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CROWN LIMITED Annual Report 2009 

CONTENTS

Executive Chairman’s Letter 

Crown’s Premium Gaming Assets 

Chief Executive Ofﬁ cer’s Report 

Crown Melbourne 

Burswood 

Melco Crown Entertainment 

Other Investments 

Community and Environment 

Corporate Governance Statement 

Nevada Information Statement 

Directors’ Statutory Report 

Remuneration Report 

Auditor’s Independence Declaration 

Independent Auditor’s Report 

Directors’ Declaration 

Financial Report 

Shareholder Information 

Additional Information 

Corporate Information 

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ANNUAL GENERAL MEETING

Wednesday 28 October, 11.00am
River Room, Level 1, Crown Towers
8 Whiteman Street, Southbank, Melbourne

FINANCIAL CALENDAR

Record date for dividend  ______________ 2 October 2009 
Payment of ﬁ nal dividend  _____________ 26 October 2009
Annual General Meeting  ______________ 28 October 2009
2010 interim results  ______ Second half of February 2010

CROWN LIMITED ABN 39 125 709 953

Executive Chairman’s Letter

‘Crown has one of the 
strongest balance sheets of 
any gaming company in the 
world; a position underpinned 
by the superior performance 
of its Australian casinos.’
James Packer
Executive Chairman, Crown Limited

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Dear fellow shareholder,

During the last 12 months, Crown Melbourne and Burswood have delivered superior growth performance 
and Melco Crown has made signiﬁ cant progress in Macau. However, our other international investments have 
been severely impacted by the global ﬁ nancial crisis.

Crown announced a net loss of $1,197.9 million for the ﬁ nancial year ended 30 June 2009, after write-downs 
and other non-recurring items of $1,440.1 million. The write-downs were related primarily to the carrying value 
of Crown’s investments in North America, where trading conditions for the entire casino industry have been 
extremely difﬁ cult.

Despite these signiﬁ cant write-downs, Crown has one of the strongest balance sheets of any gaming 
company in the world, with low net debt and gearing. 

Crown’s wholly-owned and operated Australian casino businesses continued to perform well, despite 
the challenging economic environment, achieving normalised EBITDA growth of 5.2 percent for the year. 
VIP gaming volumes at both Crown Melbourne and Burswood reached an all time record level. 

Melco Crown opened its ﬂ agship integrated resort development, City of Dreams, in Macau on 1 June 2009. 
Together with the Asian VIP-focused Altira, Melco Crown now has two of the most spectacular properties 
in Macau. 

The Directors have announced a ﬁ nal dividend of 19 cents per share, franked to 60 percent. This brings 
the total dividend for the year to 37 cents per share, which represents 100 percent of normalised net proﬁ t 
after tax (NPAT). Going forward it will be Crown’s policy to distribute the higher of 37 cents per share or 
65 percent of normalised NPAT, subject to the company’s ﬁ nancial position.

In the year ahead, the primary focus of the company is to optimise the performance of Crown Melbourne and 
Burswood, and to continue to manage the substantial refurbishment and capital expenditure programs currently 
underway at both properties. We will continue to work with Melco Crown to further build the value of the 
business in Macau, and together with our joint venture partners will seek to optimise the value of our other 
international investments.

Crown’s resilient Australian casino operations and balance sheet strength leave Crown well positioned for the future.

On behalf of the Board, I wish to thank the management and staff of Crown for their contribution in 2009. 
I would also like to thank shareholders for their continued support.

James Packer
Executive Chairman

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Crown’s Premium Gaming Assets

>   MELBOURNE, 100% OWNED

(cid:129)   Crown Casino operates 2,500 gaming machines 

(cid:129)   Banqueting facilities include the Palladium’s 1,500 seat 

and 350 table games.

ballroom and the Palms’ 900 seat cabaret venue.

(cid:129)  Crown Towers comprises 480 guest rooms.

(cid:129)   More than 50 restaurants and bars reside in the complex, 

(cid:129)  Crown Promenade hotel comprises 465 guest rooms.

(cid:129)   Crown Metropol hotel to open in April 2010, 

with 658 guest rooms.

(cid:129)   Crown Conference Centre to open 

in December 2009.

including many of Melbourne’s ﬁ nest.

(cid:129)   Internationally recognised designer boutiques and 

retail outlets.

(cid:129)   Other entertainment options include a multi-screen 

cinema complex and one of Australia’s largest interactive 
multimedia entertainment arcades.

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>   PERTH, 100% OWNED

(cid:129)   Burswood casino operates 1,750 gaming machines 

and 170 table games.

(cid:129)   InterContinental Perth Burswood hotel comprises 

(cid:129)   A range of entertainment options including the 
20,000 seat Burswood Dome and 2,300 seat 
Burswood Theatre.

405 guest rooms.

(cid:129)   World class conventions and events facilities.

(cid:129)   Holiday Inn Burswood hotel comprises 

(cid:129)  16 restaurants and bars and a night club.

291 guest rooms.

(cid:129)  Luxury day spa and retail outlets.

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CROWN’S PREMIUM  GAMI NG  A SS ET S  c on t in u e d

>   MACAU, 33.5% INTEREST
City of Dreams

(cid:129)   Melco Crown’s ﬂ agship integrated resort, 
which opened in June 2009, incorporates: 

(cid:129)   Grand Hyatt hotel to be ofﬁ cially opened on 29 September 

2009 with approximately 800 guest rooms; and

(cid:129)  Purpose-built Theatre of Dreams to open in 2010.

(cid:129)   A 420,000 square foot casino featuring 

1,350 gaming machines and 520 table games;

Altira

(cid:129)   Formerly Crown Macau, Altira is targeted at the 

(cid:129)  More than 20 restaurants and bars;

Asian rolling chip market.

(cid:129)   An impressive array of some of the world’s 

(cid:129)   The casino and hotel feature 255 table games 

most sought after retail brands;

and 216 guest rooms.

(cid:129)   An iconic and spectacular audio visual 

Mocha Clubs

experience (the Bubble);

(cid:129)   Crown Towers and Hard Rock hotels, 

with approximately 300 guest rooms each;

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(cid:129)   A network of gaming lounges, operating approximately 

1,500 gaming machines.

 
 
 
Chief Executive Ofﬁ cer’s Report

‘ Crown Melbourne and Burswood are 
among the best performing casinos in 
Australia and the world. Crown’s capability 
and financial strength place it in a sound 
position for the future.’
Rowen Craigie
Chief Executive Ofﬁ cer, Crown Limited

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Overview

Crown reported a normalised net proﬁ t after tax (before 
discontinued operations and non-recurring items) of 
$280.7 million for the year ended 30 June 2009. Operating 
cash ﬂ ows generated were $382.4 for the 12 months and 
net debt at 30 June 2009 was $541.7 million.

This result was underpinned by the continued strong 
performance of Crown’s two wholly owned and operated 
Australian casinos, Crown Melbourne and Burswood. 
These businesses achieved normalised revenue growth 
of 6.8 percent to $2,163.7 million and normalised EBITDA 
growth of 5.2 percent to $619.6 million. Crown’s Australian 
casinos are among the best performing casinos in Australia 
and the world. We are making good progress towards 
completing the refurbishment and expansion programs at 
each property, which will ensure that they continue to grow 
in the face of domestic and international competition.

Crown’s joint venture business in Macau, Melco Crown 
Entertainment (Melco Crown) achieved a major milestone 
with the opening of the City of Dreams complex in June 
2009. When the twin towers Grand Hyatt Macau opens 
on 29 September 2009, the total room capacity of City 
of Dreams will be substantially increased.

While Crown’s Australian casinos again demonstrated 
their resilience, the impact of the global ﬁ nancial crisis on 
our other international investments has been substantial. 
Crown’s reported result after discontinued operations and 
non-recurring items was a loss of $1,197.9 million for 
the year. This result includes non-recurring items of 
$1,440.1 million primarily relating to the write-down of 
the carrying values of Crown’s North American investments 
due to extremely difﬁ cult and unprecedented trading 
conditions in those markets. In this context, Crown’s 
investments into North America were ill timed.

Despite these major write-downs, Crown’s balance sheet 
remains strong, with low gearing and net debt. On a global 
scale Crown has one of the strongest balance sheets of any 
gaming company and this positions us well for the future.

Performance for the year ended 30 June 2009 ($m)1

Group revenue

Expenditure

EBITDA

EBIT

Normalised Net proﬁ t after tax

Reported net (loss) proﬁ t2

1.  Normalised, excluding non-recurring items

2. After non-recurring items

Australian casinos

2,163.7

1,544.1

619.6

471.6

280.7

(1,197.9)

Both Crown Melbourne and Burswood delivered solid 
results, despite a challenging economic environment and 
signiﬁ cant refurbishment and construction works being 
undertaken at both properties. 

Across the two properties, main ﬂ oor gaming revenue 
achieved strong year-on-year growth of 6.9 percent whilst 
VIP program play turnover reached $34.8 billion, which 
was an all time record. Non-gaming revenue held steady.

Crown Melbourne’s normalised revenue increased by 
6.9 percent on the prior comparable period to 
$1,466.2 million and reported revenue increased by 
8.3 percent to $1,498.3 million. Normalised EBITDA 
for Crown Melbourne increased by 3.9 percent on the 
prior comparable period to $450.3 million. Reported 
EBITDA for the period was $477.3 million, up 7.5 percent, 
reﬂ ecting an above theoretical win rate of 1.48 percent. 

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CHIEF EXECUTIVE OFF IC ER’S   RE POR T   co nti nued
CHIEF EXECUTIVE OFF IC ER’S   RE POR T   co nti nued

FIGURE 1
CROWN MELBOURNE NORMALISED REVENUE 
AND EBITDA PERFORMANCE

FIGURE 2  
BURSWOOD NORMALISED REVENUE 
AND EBITDA PERFORMANCE 

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Normalised Revenue

Normalised EBITDA
before Crown Ownership

Normalised EBITDA since
change in Ownership

Normalised Revenue 

Normalised EBITDA 
before Crown Ownership 

Normalised EBITDA since 
change in Ownership 

Figure 1 shows the pleasing trend of normalised revenue 
and EBITDA growth at Crown Melbourne.

Crown Melbourne is well advanced on its program of 
upgrading the existing gaming, hotel and restaurant facilities 
to ensure continued growth and to maintain the property 
at a world class standard. Crown Melbourne’s third hotel, 
Crown Metropol, and the new Crown Conference Centre 
will both open during the 2010 ﬁ nancial year.

A more detailed report on Crown Melbourne is provided later 
in this Annual Report.

Burswood’s normalised revenue increased by 6.5 percent 
on the prior comparable period to $697.6 million and 
reported revenue increased by 7.6 percent to $696.9 million. 
Normalised EBITDA from Burswood increased by 6.8 percent 
on the prior comparable period to $208.7 million. Reported 
EBITDA for the period was $208.1 million, up 10.2 percent, 
reﬂ ecting a higher win rate of 1.34 percent compared to 
the previous year. 

Figure 2 shows the strong trend in normalised revenue 
and EBITDA growth at Burswood since it was acquired 
by Crown in 2004.

Burswood’s result was also achieved despite the disruption 
from the extensive refurbishment and expansion works 
in its gaming areas, hotel and food and beverage outlets. 
These works are now over 70 percent complete.

A more detailed report on Burswood is provided later in this 
Annual Report.

Crown Melbourne and Burswood have each made a solid 
start to the 2010 ﬁ nancial year and the current outlook for 
both properties for the 2010 ﬁ nancial year is positive. 

Crown Melbourne, gaming ﬂ oor

City of Dreams, employees

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City of Dreams, Crown Towers living room

Burswood, Pearl Room

Melco Crown Entertainment

Outlook

Melco Crown’s results have been impacted by the global 
ﬁ nancial crisis, visa restrictions and economic conditions in 
the key feeder markets of China and Hong Kong. As a result, 
Crown’s share of Melco Crown’s normalised result for the 
ﬁ nancial year was a loss of $34.3 million. 

City of Dreams is Melco Crown’s ﬂ agship integrated casino 
and leisure resort. The quality of the property is exceptional. 
The initial phase of City of Dreams features approximately 
520 gaming tables and 1,350 gaming machines. The 
opening of Grand Hyatt Macau signals the completion 
of Melco Crown’s capital expenditure at City of Dreams. 

Importantly, Melco Crown’s other casino in Macau, 
the Asian VIP-focused Altira, has not seen any meaningful 
cannibalisation to date of its signiﬁ cant VIP volumes following 
the opening of City of Dreams.

Recent developments suggest that the business 
environment in Macau is improving. Gaming revenues were 
up year-on-year in July and August in 2009 – the ﬁ rst 
monthly increases since November 2008. Gross gaming 
revenue in August 2009 was an all-time monthly record for 
Macau. A regulated and enforceable junket commission cap 
of 1.25 percent will be introduced in the near future. It has 
also been reported that certain visa restrictions from 
mainland China to Macau will be relaxed shortly.

Additional information about Melco Crown and Crown’s 
other international investments appears later in this 
Annual Report.

Our principal efforts over the next 12 months will be to 
further improve the performance of Crown Melbourne 
and Burswood, both of which have had solid starts to the 
new ﬁ nancial year. Both properties will continue with their 
expansion and refurbishment programs, which we expect 
will contribute further growth.

We will continue to work with the team at Melco Crown 
to build the value and enhance the performance of Melco 
Crown’s businesses in Macau. 

We will also be working with our joint venture partners 
during these challenging economic times to optimise the 
value of Crown’s other international investments. 

I would like to sincerely thank the Board, management 
and staff for their contribution in 2009.

Rowen Craigie
Chief Executive Ofﬁ cer

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Crown Melbourne

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‘Award-winning hotels, leading hotel 
convention facilities and the southern 
hemisphere’s pre-eminent casino and 
entertainment experience all make up the 
extraordinary world of Crown Melbourne.’
David Courtney
Chief Executive Ofﬁ cer, Crown Melbourne

Overview

Crown Melbourne property update

Crown Melbourne offers a distinctive combination of opulent 
luxury, exceptional service and non-stop spectacle that 
spans the Crown Entertainment Complex including the 
Crown Towers, Crown Promenade and soon-to-be 
completed Crown Metropol hotels.

The staged upgrade of the Crown Melbourne complex 
continues, with the main gaming ﬂ oor almost 50 percent 
complete. Patrons are enjoying new and refurbished gaming 
spaces and food and beverage offers, along with improved 
outdoor spaces, hotel rooms and entertainment venues.

Crown Melbourne is home to more than 50 restaurants 
and bars which include some of Melbourne’s premier dining 
experiences. The Palladium, which is Melbourne’s leading 
banqueting facility, the Palms cabaret venue, luxury retail 
boutiques, an extensive interactive multimedia entertainment 
arcade and a 13 screen cinema also reside in the complex, 
which attracts more than 16 million visitors each year.

Main gaming ﬂ oor revenue for the year showed consistent 
growth throughout the 12 month period, increasing by 
6.7 percent to $855.3 million. Normalised VIP program 
play revenue increased by 14.0 percent to $329.7 million 
on record turnover of $24.4 billion.

Non-gaming revenue grew 0.5 percent to $281.2 million 
for the year in a challenging environment. The result was 
impacted by the upgrade of Crown Towers and a softening 
in demand in the second half due to the economic climate, 
particularly from corporate and fundraising event bookings.

The overall operating margin decreased from 31.6 percent 
to 30.7 percent, with the margin on domestic business 
maintained. The decrease was due to a change in revenue 
mix resulting from the signiﬁ cant increase in VIP program 
play and an increase in VIP gaming provisions.

The Maple Room was the ﬁ rst gaming area to undergo major 
refurbishment at the eastern end of the property. In the 
western end a new gaming precinct opened in December 
2008, with a redeveloped food and beverage area opening 
progressively from May through to July 2009. Preliminary 
work has commenced on an upgrade of the Teak Room, 
the Mahogany Room and the VIP gaming salons to help 
ensure Crown Melbourne remains competitive with the 
world’s best VIP gaming facilities. Remaining refurbishments 
have been planned over the next two to three years 
to ensure disruption to patrons is kept to a minimum.

The major upgrade of Crown Towers is complete and 
construction of a new ﬁ ve-star 658-room hotel, Crown 
Metropol, is on budget and is expected to open one month 
early in April 2010. This will bring the total rooms available 
at the complex to more than 1,600. These major 
developments will continue to underpin future revenue 
growth at Crown Melbourne.

In May 2009, the Victorian Government announced an 
agreement with Crown Melbourne to introduce a staged 
increase in casino gaming machine tax and an increase 
in the number of table games. Implementation of this 
agreement is subject to passage of legislation through 
the Victorian Parliament.

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Local gaming and Crown Club 

Responsible gaming

New games reinvigorated the local table games business, 
with all 350 tables open on Friday and Saturday nights due 
to growing weekend demand. Poker continued its popularity 
with an increased proﬁ le for poker tournaments. The 2009 
Aussie Millions Poker Championship attracted more than 
2,000 entrants. Ranked ﬁ fth in the world, it is the largest and 
most prestigious gaming event in the Southern Hemisphere.

Crown Melbourne further strengthened its responsible 
gaming practices by implementing a new Responsible 
Gambling Code of Conduct in June 2009. The Responsible 
Gambling Code of Conduct details an ongoing commitment 
to responsible gaming. All gaming employees are trained 
in the responsible service of gaming and also undertake 
regular refresher training.

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More than 650 gaming machines were upgraded during 
the year and customers enjoyed a new range of exclusive 
games, such as Wheel of Fortune. Ticket In / Ticket Out 
transaction technology was recently introduced in the 
Riverside Lounge.

Crown Melbourne operates Crown Club, the largest loyalty 
program of its type in Australia, which promotes patronage 
across all of Crown Melbourne’s facilities.

VIP program play 

Crown Melbourne achieved an all time record of $24.4 billion 
in VIP program play turnover, despite strong competition 
from Macau, Las Vegas and other Australian casinos. This 
record result was assisted through innovative marketing and 
promotional programs and the maintenance of the highest 
service standards. It was also pleasing to see new business 
emerging from the key markets of China and Hong Kong.

The Responsible Gaming Support Centre operates 24 hours 
a day/seven days a week to offer responsible gaming 
information and support, counselling and referral services 
and a chaplaincy support service. 

Resources and programs available to patrons include 
the long-standing Self Exclusion and Play Safe programs. 
Crown Club members who use gaming machines are 
encouraged to participate in the Play Safe program, where 
they can nominate predetermined spending and time limits. 
Members who play gaming machines also receive player 
activity statements – a requirement for ongoing participation 
in the Club.

Crown Melbourne participates in Responsible Gambling 
Awareness Week, a partnership between industry, the 
community sector and the Victorian Government.

Crown Melbourne, including Crown Metropol

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Hotels and conferences

In July 2009, Crown Towers completed a comprehensive 
upgrade of its accommodation, resulting in an unrivalled 
level of luxury, comfort and technology in the ﬁ ve-star hotel 
segment. The new rooms and suites feature superior 
craftsmanship, contrasting textures and a refreshing colour 
palette. Each room also features the latest video on demand 
interactive system.

The accolades continued for Crown Towers this year, being 
awarded Victoria’s 2009 Deluxe Accommodation Hotel 
of the Year by the Australian Hotels Association (AHA), 
Best Five Star Hotel and Highly Commended in the 
Business Hotel category at Hotel Management magazine’s 
2009 HM Awards. Additionally Crown Towers was voted one 
of the favourite hotels in Australia by Qantas Frequent Flyers 
and was also named one of the top three city hotels 
in Australia, New Zealand and the South Paciﬁ c in the 
prestigious Travel + Leisure magazine’s 2009 World’s 
Best Awards.

Hotel occupancy at Crown Towers was impacted by the 
refurbishment program during the year, which resulted in 
a signiﬁ cant number of rooms being unavailable. In total, 
occupancy was 75.7 percent, with an average room rate 
of $305. Hotel occupancy on available rooms at Crown 
Towers was 94.6 percent.

Crown Promenade achieved a 92.9 percent occupancy rate 
and a $211 average room rate. Recognised as Melbourne’s 
leading conference and business hotel, Crown Promenade 
was awarded Best Superior Accommodation in the AHA 
State Awards for Excellence and was inducted into the 
Victorian Tourism Hall of Fame for winning the Deluxe 
Accommodation Award for three consecutive years.

Crown Melbourne’s newest property, Crown Metropol, 
will commence trading in April 2010. Designed by a team 
of internationally renowned architects, the 658 contemporary 
loft-style rooms (including 33 suites) will focus on space, 
light and luxury. A technologically advanced business centre 
with four dedicated meeting rooms is situated in the hotel, 
which will also feature one of Melbourne’s most anticipated 
dining ventures, Gordon Ramsay’s Maze.

Crown Metropol is ideally located adjacent to the Melbourne 
Convention and Exhibition Centre. A direct undercover 
link from Crown Metropol’s business centre to the Crown 
Conference Centre will contain an exciting new retail 
precinct with a range of well known brands. The Crown 
Conference Centre itself is undergoing an extension, which 
is on schedule for completion in December 2009. This caters 
for conferences of over 800 delegates with the option of 
utilising up to 19 rooms concurrently.

Restaurants and bars

Crown Melbourne’s restaurant and bar operations continued 
to grow with a variety of new venues now open. These 
include Lagerﬁ eld Bar and Beer Garden, Lumia Cocktail 
Lounge, Emporio della Pasta, Cantina dell’Emporio, Caffé 
dell’Emporio, Kitchen Workshop and Sho Noodle Bar, 
all conveniently located to the gaming ﬂ oor and other 
entertainment. The popular Riverside Gaming Lounge also 
expanded with the opening of the Riverside Restaurant 
& Café. In addition, refurbishments were completed for 
Odeon nightclub, Number 8 Restaurant & Wine Bar and 
the Double Up Bar on the main gaming ﬂ oor.

Crown Melbourne, Crown Towers upgraded standard room

Crown Melbourne, Lagerﬁ eld Beer Garden

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Crown Melbourne, Sho Noodle Bar

Crown Melbourne

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In the 2010 edition of The Age Good Food Guide restaurants 
at Crown Melbourne were recognised. Rockpool Bar & Grill 
received two coveted chef’s hats and the brasserie by 
Philippe Mouchel, Bistro Guillaume and Giuseppe Arnaldo 
& Sons each received one hat.

At the 2009 Victorian Restaurant & Catering Awards for 
Excellence, Crown Food and Beverage again received 
multiple awards in various categories. Crown Events was 
awarded best Function Centre Caterer and the brasserie 
by Philippe Mouchel was awarded best European 
Restaurant. Koko was also awarded best Asian Restaurant 
and was inducted in the Victorian Restaurant & Catering 
Awards Hall of Fame – one of only four restaurants to be 
inducted since 1998. Number 8 Restaurant and Wine Bar, 
the brasserie by Philippe Mouchel and Rockpool Bar & Grill 
were recognised by the Wine Spectator Magazine in its 
2009 Annual Restaurant Awards.

Entertainment and events 

The Palladium continued to host some of the country’s 
highest proﬁ le fund-raising and sporting events during the 
year. These included the Million Dollar Lunch, the Ronald 
McDonald House Charity Ball, Starry Starry Night, the 
Diamond Dinner, the TV Week Logie Awards, the AFL 
Brownlow Medal, the Cricket Australia Allan Border Medal, 
the Formula 1 Australian Grand Prix Ball and Victoria Racing 
Club Spring Carnival events including the Oaks Club Ladies 
Lunch and the Call of the Card.

For the second year, Crown Melbourne hosted a “Live Site” 
at Southbank for the duration of the 2008 Melbourne Cup 
Carnival in conjunction with the Victoria Racing Club and 
its ofﬁ cial partners. Over eight days an estimated 80,000 
people enjoyed all the racing action on a super screen, 
live entertainment, fashion parades and giveaways. These 

activities centred around the Carnival Bar, a stylish marquee 
on the riverbank, with full bar and betting facilities and an 
open-air beer garden with uninterrupted views of the city.

Crown also provided strong support to the 2009 Melbourne 
Food & Wine Festival, which culminated in hosting the 
“Stars of Europe” featuring the most acclaimed line up 
of Michelin Star chefs from around the world. Once again 
Crown Events presented the World’s Longest Lunch on the 
promenade and the Festival’s celebrated 2009 Gala Dinner.

Our people

Crown Melbourne is Australia’s leading hospitality employer. 
Crown continues to foster a culture that engages our people, 
motivating them to deliver exceptional experiences for our 
customers. Crown’s focus on talent development and 
succession planning continues, with a number of key 
appointments resulting from the assessment of leading talent.

Crown Melbourne is committed to protecting the health 
and safety of the people that work with us as well as those 
who visit and use our facilities. Indicators of management’s 
dedication to health and safety were highlighted through 
two key achievements during the year. A 20 percent 
reduction in workplace injury was achieved and safety 
received the highest positive perception score of all criteria 
in the 2009 Employee Engagement survey. Integral to 
these results is a robust health and safety management 
system (CrownSAFE), a structured assurance program 
and 90 committed health and safety representatives, 
with a coverage rate of one to every 62 employees. A key 
initiative in 2010 will be the launch of the new online incident, 
hazard and risk reporting system.

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Burswood

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‘With one of the best performing casinos 
in the region, Burswood Entertainment 
Complex has established itself as the 
fastest growing earnings contributor in 
Crown’s portfolio.’
Barry Felstead
Chief Executive Ofﬁ cer, Burswood 

Overview

Burswood property update

Burswood’s commitment to improve its gaming and 
entertainment products focused on unlocking the potential 
of the property to deliver a world-class entertainment 
experience. The refurbishment of the main casino ﬂ oor 
is approximately 70 percent complete, with major projects 
opening during the year including the Meridian Room, 
a mid-tier VIP gaming machine room which will complement 
the existing VIP high limit gaming room, a new casino 
entrance, a new poker room and a new main casino 
gaming ﬂ oor bar, Mesh. Works are now completed on 
Carvers Buffet and Snax Café, which are located 
immediately adjacent to the gaming ﬂ oor. Work is 
currently underway on a third VIP suite and the 
refurbishment of the InterContinental Club Rooms 
and River Suites.

The completed projects have contributed to Burswood’s 
revenue growth and further growth is expected as the 
remaining refurbishments are completed.

Burswood is located on the banks of the Swan River in Perth 
and has grown to become a major Western Australian tourist 
attraction and revenue earner. The integrated property 
features a casino, InterContinental Perth Burswood and 
Holiday Inn Burswood hotels, eight restaurants, eight bars, 
a nightclub, a world-class convention centre, a 2,300 seat 
theatre, a 20,000 seat capacity indoor stadium, a day spa 
and retail outlets. Burswood is adjacent to an 18-hole golf 
course and Burswood Park.

In its ﬁ fth year since acquisition, Burswood continued 
to implement a number of earnings initiatives. This has 
resulted in strong ﬁ nancial performance, while at the same 
time supporting its growth strategy and platform for 
continued expansion. 

Main ﬂ oor gaming revenue grew 7.4 percent to $397.9 million 
and normalised VIP program play revenue increased by 
11.5 percent to $140.0 million on record turnover of 
$10.4 billion.

Non-gaming revenue grew 0.3 percent to $159.7 million 
for the year in a challenging economic environment which 
resulted in a reduced number of entertainment events, 
shows and conferences, in addition to a softening in hotel 
demand from the corporate sector in the second half.

The overall operating margin at Burswood increased 
by 0.1 percent to 29.9 percent.

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Local gaming and Club Burswood

VIP program play 

Improved casino management systems and a resurgence 
in the popularity of table games, including growth in poker, 
all contributed to the solid year-on-year revenue growth. 
Also integral to the result were new promotions to increase 
brand awareness and proﬁ le.

Increases in high limit product offerings were also introduced 
with the opening of the Riviera Room Upper Level. This has 
contributed strongly to growth in table games revenue on 
the main gaming ﬂ oor. A series of special promotions also 
saw a positive impact and increased mid-week patronage.

Electronic gaming beneﬁ ted from the creation of tailored 
events and the development of new games. The recent 
opening of the Meridian Room mid-tier electronic gaming 
facility is expected to underpin continued growth.

A number of strategies were implemented in Burswood’s 
loyalty program, Club Burswood, to create interest during 
the year. Food and beverage offers and entertainment 
offers were introduced along with increased frequency 
of member communications.

Double digit growth in international gaming turnover was 
achieved by developing new business from Hong Kong 
and China and by joint initiatives with Crown Melbourne, 
which resulted in an increase in key players.

Signiﬁ cantly, the Pearl Room has secured Burswood’s 
place in the international market, evidenced by the solid 
increased contribution of that business. The mix of six 
private salons along with a number of semi-private salons 
has provided a signiﬁ cant point of difference as one of the 
most customer-focused and luxurious international gaming 
facilities in the world.

Responsible Gaming

Burswood is committed to providing responsible gaming 
services through the promotion of effective responsible 
gaming programs, information and assistance. A dedicated 
Responsible Gambling Information Centre at Burswood 
was ofﬁ cially opened by the Minister for Racing & Gaming 
during Responsible Gambling Awareness Week in June 
2009. Staffed by qualiﬁ ed and experienced personnel, 
the Centre is readily accessible and will assist patrons 
or members of the community who are seeking help.

Burswood casino entry post refurbishment

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A program of engagement with a wide range of community 
service organisations and responsible gaming groups 
was also embarked upon throughout the year. This 
was particularly beneﬁ cial in establishing cooperative 
arrangements amongst all interested parties leading up 
to and during Responsible Gambling Awareness Week.

An updated on-line training program for staff, development 
of the third party self-exclusion program and ongoing 
problem gambling indicator awareness training for gaming 
personnel continued to promote awareness among staff, 
patrons and the community.

Hotels and conferences

InterContinental Perth Burswood maintained its position 
as the leading luxury hotel in Perth. It ranked number one 
in its competitive set, despite weaker conferencing business 
and the softening of the Perth hotel market, particularly 
in the second half of the year. Hotel occupancy at 
InterContinental Perth Burswood was 74.0 percent 
with an average room rate of $236 and at Holiday Inn 
Burswood it was 87.0 percent and $184 respectively. 

The sharing of human and capital resources between 
the two hotels at Burswood created efﬁ ciencies and local 
support was strengthened through Club Burswood 
promotions. Concerts at the Dome, the hotel’s global 
branding and guest loyalty programs all contributed to 
attracting customers. InterContinental Perth Burswood 
hosted players and sponsors for the Johnnie Walker 
Classic, which drove international awareness and 
provided a platform for celebrity events and functions. 
Innovative promotions with Burswood’s sponsorship 
partners and entertainment packages built around long-
running shows such as The Phantom of the Opera were 
introduced to drive hotel business.

The hotels’ sales team was awarded Sales Team of the 
Year by the Australian Hotels Association (AHA) in 2008 
and InterContinental Perth Burswood was successful in 
the Qantas Frequent Flyer Awards.

Burswood Entertainment Complex

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Signature events hosted at the complex included the 
Queensbury Charity Challenge, the Ronald McDonald 
Charity Ball and the Melbourne Cup Luncheon. Major 
conferences held included the Asia Paciﬁ c Oil and Gas, 
West Australia Primary Principals Association, CSIRO 
Greenhouse 2009 and CPA Week.

Although the number of international acts was down 
year-on-year, the Dome continued to stage various 
headline acts which were major sell-outs throughout the 
year. A broad selection of entertainment was also held in 
Burswood Theatre, with the season of The Phantom of 
the Opera attracting more than 89,000 patrons. For the 
third consecutive year, Burswood was awarded Western 
Australia’s Best Live Entertainment Award for 2008 by 
the AHA.

Our people

Burswood remains the largest single site private employer 
in Western Australia with more than 4,200 employees. The 
commitment and professionalism of this team underpinned 
the strong result.

During the year, Burswood signiﬁ cantly expanded its training 
activities. The focus was on developing and improving 
service capability, improving performance systems, 
launching new online learning courses and developing 
a new croupier training academy. Diversity in the workplace 
has also been a key focus throughout the year.

Restaurants and bars

Burswood’s restaurants and bars portfolio maintained its 
signiﬁ cant contribution. A continued focus on the delivery 
of new and refreshed contemporary, innovative and 
diversiﬁ ed product offerings underpinned the result, 
highlighted by the opening of Mesh Bar in December 2008. 
Effective advertising, additional trafﬁ c generated from main 
gaming ﬂ oor activity and a comprehensive communications 
and event program in all key outlets have contributed to 
the continued positive performance. 

Established restaurants Yú, Victoria Station, Atrium and 
(A)LURE continued to focus on exemplary cuisine and 
service. Carbon Sports Bar was awarded Western 
Australia’s Best Sporting Entertainment Venue by the 
Australian Hotels Association.

Responsible service of alcohol initiatives continued to be 
a key focus throughout the year. To enhance the quality of 
Burswood’s nightclub experience, a re-brand of the Ruby 
Room to Eve took place in June 2009 together with the 
opening of a new balcony capable of holding an additional 
400 patrons. Other business initiatives included an increased 
focus on electronic communication, a focused product 
website and new entertainment line-ups.

Entertainment and events

Burswood is recognised as one of Australia’s leading 
meetings and events venues and this year focused on 
implementing a dynamic pricing structure and incentive 
offers to drive business locally as well as from the eastern 
states. The conventions and entertainment business was 
impacted as a result of less touring acts and shows and 
a reduction in conferences from the corporate sector 
due to subdued economic conditions.

Burswood, gaming ﬂ oor

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Melco Crown Entertainment

Overview

Crown holds a 33.5 percent equity interest in Melco Crown, 
a joint venture between Crown and Melco International 
Development Limited. Melco Crown was listed on the 
NASDAQ in December 2006.

Melco Crown’s ﬁ nancial performance for the year has been 
impacted by weakness in the Macau gaming market due 
to the global ﬁ nancial crisis, visa restrictions and economic 
conditions in the key feeder markets of China and Hong 
Kong. As a result, Crown’s share of Melco Crown’s 
normalised result for the period was a loss of $34.3 million. 

Recent data indicates that the overall gaming market in 
Macau is improving. In July and August 2009, gaming 
revenues increased year-on-year, the ﬁ rst monthly year-
on-year increases since November 2008. Gross gaming 
revenues in August set an all time monthly record for Macau. 
It has been reported that a junket commission cap of 
1.25 percent and an easing of visa restrictions from mainland 
China to Macau will soon be introduced.

Melco Crown conducted two successful capital raisings 
during the year to strengthen its balance sheet. Institutional 
equity placements of US$180 million in April 2009 and a 
further US$220 million in August 2009 have diluted Crown’s 
equity interest to 33.5 percent.

City of Dreams

City of Dreams, Melco Crown’s ﬂ agship integrated resort 
development, opened in Cotai, Macau on 1 June 2009. 
Combining world-class entertainment attractions, a diverse 
array of accommodation, regional and international dining, 
prestige shopping and spacious, contemporary casinos. The 
resort brings together a collection of world-renowned brands 
such as Crown, Grand Hyatt, Hard Rock and Dragone, to 
create an exceptional and spectacular experience.

City of Dreams, Crown Towers hotel lobby

City of Dreams, gaming ﬂ oor

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City of Dreams, opening night crowds

Highly experienced local management has recently been 
introduced to Altira. The team has an understanding of its 
customers and will continue to hone the operational 
effectiveness of this property through the development of a 
tailored experience. Mocha Clubs manages the gaming 
machines located at Altira.

Mocha Clubs

Mocha Clubs ﬁ rst opened in September 2003 and has 
since expanded its operations to eight clubs with a total 
of approximately 1,500 gaming machines.

The clubs comprise the largest non-casino-based 
operations of electronic gaming machines in Macau and 
are conveniently located in areas with strong pedestrian 
trafﬁ c, typically within three-star hotels. Each club offers 
a relaxed ambience and electronic tables without dealers. 
The Mocha Club gaming facilities include the latest 
technology for gaming machines and offer both single player 
machines with a variety of games (including progressive 
jackpots) and multi-player games, where players on linked 
machines play against each other in electronic roulette, 
baccarat and sicbo, a traditional Chinese dice game.

The initial opening of City of Dreams features a 420,000 
square foot casino with approximately 520 gaming tables 
and 1,350 gaming machines, retail outlets and over 
20 restaurants and bars. The Crown Towers and Hard 
Rock hotels offer approximately 300 guest rooms each. 
Grand Hyatt Macau, offering approximately 800 guest 
rooms, will open on 29 September 2009 and a Dragone 
theatre production is planned for the purpose-built 
Theatre of Dreams.

The Crown brand in Macau will be used solely at City of 
Dreams, targeting premium VIP customers sourced through 
the joint marketing networks of Melco Crown and Crown. 
City of Dreams is the only major casino resort to open in 
Cotai in 2009. It is located at the northern end of Cotai, 
and is one of the closest destination resorts in Cotai to 
the Macau International Airport and the newly developed 
Hong Kong to Macau Ferry Pier.

Altira

Altira (formerly Crown Macau) is primarily focused to meet 
the cultural preferences and expectations of Asian rolling 
chip customers.

Altira features approximately 180,000 square feet of 
gaming space with 255 gaming tables. The property won 
the ‘Best Casino Interior Design Award’ in the ﬁ rst 
International Gaming Awards in 2008, which recognises 
outstanding design in the sector. The 38-storey hotel is 
recognised as one of the leading hotels in Macau and 
comprises 216 deluxe guest rooms, including 
24 high-end suites and eight villas.

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International Investments

Crown holds a 50 percent interest in Aspinalls, a UK-based 
casino operator. Crown’s share of Aspinalls’ result was an 
equity accounted loss of $15.2 million. Trading was 
negatively impacted by a low win rate on VIP play at the 
Aspinalls Club, which had a $12.9 million impact on Crown’s 
share of its equity accounted result.

Crown has written down the carrying value of its equity 
investment in Aspinalls to nil, with a non-recurring loss 
of $82.7 million taken to the Proﬁ t & Loss. The asset 
write-down is due to the deteriorating outlook for the 
UK casino industry and the failure by the UK Government 
to deregulate the casino industry as initially announced.

Crown holds a 50 percent interest in Gateway, a Canadian-
based casino operator. Crown’s share of Gateway’s result 
was an equity accounted loss of $14.3 million. Crown has 
written down the carrying value of the equity and debt 
components of its investment in Gateway to nil. A non-
recurring loss of $231.2 million was taken to the Proﬁ t & 
Loss at year-end.

Having already written down the carrying value of the equity 
component of its investment in Gateway, Crown considered 
it to be prudent, given the current local trading, competitive 
and regulatory environment, to likewise write down the loan 
component of its investment.

In March 2009, Crown announced it had agreed to terminate 
the transaction to acquire Cannery Casino Resorts (Cannery) 
for US$1.75 billion, which was announced in December 
2007. Crown announced a new agreement whereby it has 
paid Cannery US$320 million to subscribe for a preferred 
instrument, which carries with it the right, subject to 
regulatory approval, to be converted to an equity entitlement 
of 24.5 percent.

The preferred instrument has no coupon and is 
non-participating. As such, Crown has not reﬂ ected 
any share of Cannery’s proﬁ t in this year’s results. The 
Pennsylvania Gaming Control Board is continuing to process 
Crown’s licence application to allow Crown to convert the 
preferred instrument into equity.

Crown has written down the carrying value of its investment 
in Cannery to $49.6 million, with a non-recurring loss 
of $378.2 million taken to the Proﬁ t & Loss. The asset 
write-down has been precipitated by the effect that current 
economic conditions in the United States have had on 
Cannery’s business. It is likely that Cannery’s Las Vegas 
casinos will be affected by the US recession for some 
time. The recession has also adversely impacted the 
original projections for the new permanent Meadows Casino 
in Pittsburgh.

Crown has written down to nil the carrying value of its 
minority US investments in Fontainebleau, Stations and 
Harrahs, which are classiﬁ ed under Australian Accounting 
Standards as “Available for Sale Assets”. Crown has 
also written off its $31.3 million loan to Fontainebleau.

Crown also reported charges for the year ended 
30 June 2009 totalling $155.2 million which primarily 
comprise the termination fee of $76.5 million in respect 
of the original Cannery transaction, break costs of 
$40.1 million in respect of the termination of interest 
rate swaps on US dollar debt repaid during the year and 
a net interest expense of $38.4 million incurred in relation 
to the funding of the original Cannery transaction. 

Betfair Australasia

Crown holds a 50 percent interest in Betfair Australasia 
under a joint venture with The Sporting Exchange Limited, 
the world’s largest betting exchange.

Betfair’s customer base continues to grow strongly and, 
with the recent lifting of advertising restrictions on mainland 
Australia, the business is now investing heavily in customer 
acquisition marketing in order to secure a solid platform 
for growth. Crown’s share of Betfair’s result was an equity 
accounted loss of $5.1 million, primarily due to the increase 
in marketing costs.

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Community and Environment

Community

Crown continues to proudly support the local communities 
in which its businesses operate. Burswood and Crown 
Melbourne signed the Australian Employment Covenant 
during the year and will provide many job opportunities for 
indigenous Australians. Crown also formed an alliance with a 
disability employment agency, pledging to provide more jobs 
for disabled job seekers. Both initiatives highlight Crown’s 
commitment to create a diverse and inclusive workforce.

Crown’s support of not-for-proﬁ t events, donations, employee 
volunteer contributions and sponsorship is extensive.

Crown Melbourne

From large organisations such as the Royal Children’s 
Hospital to individuals affected by tragedy, Crown 
Melbourne responds and provides assistance, donations 
and support to a broad spectrum of community needs. 
In 2009, this spanned medical research, aged care, 
schools and kindergartens, sporting groups, ﬁ re brigades 
and cultural organisations.

Crown Melbourne provided assistance to the Victorian 
community through its ﬁ nancial support of community 
and non-proﬁ t organisations including the Make-A-Wish 
Foundation, KOALA (Kids Oncology and Leukaemia Action) 
Foundation via the Million Dollar Lunch, Open Family 
Australia, the Alannah and Madeline Foundation, Challenge, 
Kids Under Cover, the Blue Ribbon Foundation and the 
Heartwell Foundation.

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In response to the Victorian Black Saturday bushﬁ res in 
February 2009, Crown promptly pledged $500,000 to the 
Victorian Bushﬁ re Appeal, supporting many affected and 
displaced individuals and families. Crown Melbourne and 
Burswood joined forces with the Salvation Army in setting 
up collection tins at both complexes and supported a 
number of charities and organisations in their efforts to raise 
money. On a more personal level, Crown Melbourne also 
provided overnight accommodation for affected families and 
supporters during visits to the city or as a relaxing respite 
from their grim reality. Crown Melbourne’s employees eagerly 
volunteered their time at the Australian Red Cross Call 
Centre and raised employee donations.

At Christmas, Crown Melbourne and its employees actively 
participated in Open Family Australia’s Christmas hamper 
efforts. Crown chefs prepared wonderful festive food 
hampers for Open Family Australia, which were delivered 
to many Melbourne-based families by dedicated employees.

Additional community activities supported and celebrated 
by Crown Melbourne during the year included Harmony Day, 
an employee Australian Citizenship Ceremony and Community 
Safety Week.

Burswood

Burswood recognises the pivotal role it plays within the 
community and contributes signiﬁ cant resources to a host 
of Western Australian organisations. Some of these are 
speciﬁ c to the arts sector including the Australian Business 
Arts Foundation, Telethon Speech & Hearing’s ‘Young Artists 
with Artitude’ competition and the youth arts initiative 
‘Storm the Stage’.

Burswood, employee involvement in Anglicare Winter Appeal

Crown donation to Country Fire Authority

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COMMUNI TY A ND EN VIRONM EN T   co n ti n u ed

Crown Melbourne, 2009 Million Dollar Lunch

Burswood, employee involvement 
in Anglicare Winter Appeal

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Burswood partnered with many other non-proﬁ t 
organisations in their fundraising efforts during the year. 
These included Ronald McDonald House which was host 
to one of Australia’s largest and most successful fundraising 
initiatives, Youth Focus, an organisation dedicated to helping 
young people with depression, The Amanda Young 
Foundation, StyleAid with the Western Australian AIDS 
Council, Strike a Chord for Cancer and the National Breast 
Cancer Research Foundation. Burswood has also forged 
strong long-term relationships with the Juvenile Diabetes 
Research Foundation, Crime Stoppers, Teen Challenge, 
Celebrate WA and United Way.

Burswood chefs annually prepare more than 9,000 litres 
of soup, which is donated to Foodbank Western Australia 
to support Perth’s homeless. Other Community Activities 
include partnerships with the Seniors Recreation Council, 
Charity ‘Movies by Burswood’ and the Returned 
Services League.

In addition to these regular partnerships, in 2009 many 
Western Australian service agencies were in need of 
additional support. Burswood, through both employee 
and corporate donations, was able to assist the Salvation 
Army, Anglicare Western Australia, Foodbank Western 
Australia, Father Brian’s Appeal and the St Vincent de 
Paul Society’s ‘Passages’ program.

At the heart of Burswood’s community program is its 
employee involvement. Burswood employees gave 
generously to the annual St Vincent de Paul Christmas 
Appeal and the Anglicare Winter Appeal. The Burswood 
team also participated in the annual Juvenile Diabetes 

Research Foundation ‘Walk to Cure Diabetes’ and partnered 
with the Salvation Army to raise more than $20,000 for its 
Victorian Bushﬁ re appeal. 

Burswood continues its commercial sponsorship program 
to support local businesses and sporting organisations. 
These included the West Coast Eagles and Fremantle 
Dockers AFL clubs and the Emirates Western Force Super 
14 Rugby Union team.

Environment

Crown’s ongoing environmental sustainability commitment 
focuses on three key pillars: water conservation, waste 
reduction and energy efﬁ ciency. Crown’s goal is to make 
meaningful contributions towards reducing its environmental 
impact by pursuing initiatives in these areas, consistent with 
our objectives to create memorable experiences and 
enhance shareholder value.

During the year, Crown Melbourne continued implementing 
a variety of initiatives. In March 2009, it launched a new 
web site, www.crownenvironment.com.au, to highlight and 
share information on its commitment to environmental 
impact reduction. The web site clearly articulates Crown 
Melbourne’s approach, milestones and future plans 
to address environmental issues and concerns.

A dedicated Burswood Environment Committee was formed 
in October 2008. The Committee’s main focus to date has 
been on identifying environmental initiatives to reduce energy 
and waste from the complex. Positive results with water and 
electricity consumption have also been achieved, despite the 
ongoing expansion of the property.

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Crown Melbourne, Cogeneration plant rooftop equipment

Crown Melbourne, Cogeneration plant standby boilers

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Water conservation

Throughout the year, Crown Melbourne continued water 
reduction initiatives through its approved waterMAP 
program. The upgrade of numerous facilities throughout 
the property has provided many opportunities to install water 
reduction devices such as dual ﬂ ush toilets and tap aerators 
to reduce ﬂ ow. Other initiatives included the replacement 
of grass (to eliminate the use of irrigation) with high quality 
artiﬁ cial turf for the landscaping of Crown Towers hotel 
roof-top, Whiteman Street frontage and median strips.

Burswood continues to reduce its water consumption and 
is expected to meet its target reductions as approved in its 
water efﬁ ciency management plan. The complex is in the 
process of implementing an aerator replacement program 
throughout the property, which will result in further water 
conservation. In 2008, Burswood was recognised for its 
commitment to water conservation with the Waterwise 
Award for a large-scale business or government agency.

Waste reduction

More than 30 percent of Crown Melbourne’s waste 
is currently recycled via composting, cardboard and 
plastics recycling. Waste reduction efforts continued 
to build momentum throughout the year with an education 
program on waste separation for kitchens and restaurants 
implemented throughout the complex. This has resulted 
in a record quantity of in excess of 600 tonnes of food 
waste being diverted to a natural recovery (or composting) 
facility instead of landﬁ ll – an increase of more than 
40 percent over previous years.

Crown Melbourne’s commitment to waste management 
was also demonstrated during the upgrade of the Crown 
Towers hotel. This was completed with an emphasis on 
recycling materials, where 80 percent of construction and 
demolition waste was recycled.

Energy efﬁ ciency

In March 2009, Crown Melbourne submitted its ﬁ rst 
Environment and Energy Resources Efﬁ ciency Plan (EREP) 
to the Environmental Protection Authority Victoria (EPA), 
which identiﬁ ed initiatives to improve resource efﬁ ciency.

An energy assessment of the retail and entertainment areas 
of the Crown Melbourne complex was conducted to identify 
future initiatives in accordance with the Commonwealth 
Government’s Energy Efﬁ ciencies Opportunities Act. 

During the year, Burswood replaced its chiller sets with 
energy efﬁ cient chillers, an initiative which is expected to 
substantially improve resource efﬁ ciency across the property.

In addition to the EREP, Crown Limited participated in the 
benchmarking Carbon Disclosure Survey conducted by 
an independent not-for-proﬁ t organisation which holds the 
largest database of corporate climate change information 
in the world (refer to www.cdproject.net).

Crown Melbourne and Burswood participated in Australia’s 
“Earth Hour” on 28 March 2009.

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Corporate Governance Statement

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The Crown Limited Board is committed to the implementation and maintenance of good corporate governance practices.

This Statement sets out the extent to which Crown Limited (Crown) has followed the best practice recommendations set 
by the ASX Corporate Governance Council during the twelve month period ending 30 June 2009.

Crown reports against the Corporate Governance Principles and Recommendations (Revised Principles) released by the 
Council on 2 August 2007.

Principle 1 
Lay solid foundations for management and oversight

Functions reserved for the Board

The Board is responsible for guiding and monitoring Crown on behalf of its shareholders. In addition, the Board is responsible 
for identifying areas of significant business risk and ensuring arrangements are in place to adequately manage those risks.

The Board has adopted a formal Board Charter which sets out a list of specific functions which are reserved for the Board.

Functions delegated to Senior Management

Management has responsibility for matters which are not specifically reserved for the Board (such as the day-to-day 
management of the operations and administration of Crown). 

Process for evaluating performance of senior executives

Crown has established processes for evaluating the performance of its senior executives. In summary, each senior executive  
is evaluated against the achievement of pre-agreed performance objectives. The evaluation process is conducted annually 
and is followed by the determination of appropriate remuneration of the relevant senior executive. 

Detailed information regarding Crown’s remuneration practices is provided in the Remuneration Report. An evaluation of senior 
executives took place following the end of the financial year and in accordance with the processes described in the 
Remuneration Report.

Induction process for new executives

Crown executives are required to undertake formal induction training through Crown’s on-site accredited training facility  
– Crown College.

The program involves training about:

•	 the history and development of the Crown brand and business;

•	 the main legal and regulatory obligations affecting the Crown business;

•	 Crown’s responsible gaming policies and procedures; and

•	 the rights and obligations of Crown employees.

As part of the induction program, executives are required to successfully complete a series of online training modules and to 
pass the associated assessment.

More information

A full copy of the Crown Board Charter is available at:  
www.crownlimited.com under the heading Corporate Governance – Charters.

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Principle 2 
Structure the Board to add value

Composition of the Board

As at the date of this Statement, the Board comprises the following eleven Directors:

•	 James D Packer 

Executive Chairman

•	 John H Alexander BA 

Executive Deputy Chairman

•	 Benjamin A Brazil BCom LLB

Independent, Non-Executive Director

•	 Christopher D Corrigan 

Independent, Non-Executive Director

•	 Rowen B Craigie BEc (Hons) 

Chief Executive Officer and Managing Director

•	 Rowena Danziger BA, TC, MACE 

Independent, Non-Executive Director

•	 Geoffrey J Dixon 

Independent, Non-Executive Director

•	 Ashok Jacob MBA 

Non-independent, Non-Executive Director

•	 Michael R Johnston BEc, CA 

Non-independent, Non-Executive Director

•	 David H Lowy AM, BCom 

Independent, Non-Executive Director

•	 Richard W Turner AM, BEc, FCA 

Independent, Non-Executive Director

Information about each Director’s qualifications, experience and period in office is set out in the Directors’ Statutory Report.

The roles of Chair and Chief Executive Officer are exercised by separate persons. James Packer acts as Executive Chairman 
and Rowen Craigie as Chief Executive Officer and Managing Director.

Relationships affecting independence

Of Crown’s eleven Directors, six are independent Directors. A majority of Directors are therefore independent. The 
independence of Directors is assessed against a list of criteria and materiality thresholds. Those criteria have been formally 
enshrined in the Crown Board Charter. Each Director who is listed as an independent Director complies with the relevant 
criteria for independence set out in the Crown Board Charter.

Departure from Recommendation 2.2: The Revised Principles recommend that the chair of the Board should be an 
independent Director. Crown’s Chairman is not an independent Director. The Board believes that the interests of shareholders 
are best served by a Chairman who is sanctioned by shareholders and who will act in the best interests of shareholders as  
 whole. As the Chairman has a significant relevant interest in Crown, he is well placed to act on behalf of shareholders and  
in their best interests.

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Procedure for selection and appointment of new Directors

Where a new Director appointment is required, the Board adheres to procedures including the following:

•	 the experience and skills appropriate for an appointee, having regard to those of the existing Board members 

and likely changes to the Board are considered;

•	 upon identifying a potential appointee, specific consideration is given to that candidate’s:

 – competencies and qualifications;

 – independence;

 – other directorships and time availability; and

 – the effect that their appointment would have on the overall balance and composition of the Board; and

•	 finally, all existing Board members must consent to the proposed appointment.

The re-appointment procedures for incumbent Directors are as outlined in Crown’s Constitution. In summary, subject  
to the specific matters described in the Constitution, an election of Directors must take place each year at which one third  
of Directors must retire. Any Director who has been in office for three or more years and for three or more annual general 
meetings must also retire. Directors who retire are generally eligible for re-election.

Departure from Recommendation 2.4: The Revised Principles recommend that the Board should establish a Nomination 
Committee. The Board has not established a Nomination Committee as it does not consider that the process for determining 
potential Directors would be made more efficient by doing so. The appointment of new Directors is a matter specifically reserved 
to the Board. In appropriate circumstances, the Board may delegate some or all of this process to a relevant Committee.

Process for evaluating performance of the Board, its Committees and its members

A performance evaluation of the Board and of its Committees is undertaken annually, following completion of each financial 
year, by way of a questionnaire sent to each Board and Committee member.

The questionnaire covers the role, composition, procedure and practices of the Board and its Committees. The individual 
responses to the questionnaire are confidential to each Board/Committee member, with questionnaire responses to be 
provided to the Chairman of the Audit & Corporate Governance Committee for his consideration and provision of a report  
to the Executive Chairman of the Board.

An evaluation of the Board and its Committees took place following the end of the financial year and in accordance with the 
processes described above.

Procedures for taking independent advice

To enable Crown’s Board to fulfil its role, each Director may obtain independent advice on relevant matters at Crown’s 
expense. In these circumstances, the Director must notify the Executive Chairman of the nature of the advice sought prior  
to obtaining that advice, so that the Executive Chairman can take steps to ensure that the party from whom advice is sought 
has no material conflict of interest with Crown. The Executive Chairman is also responsible for approving payment of invoices 
in relation to the external advice.

In addition, each Board Committee has the full authority of the Board to:

•	 communicate and consult with external and internal persons and organisations concerning matters delegated to the 

Committee; and

•	 appoint independent experts to provide advice on matters delegated to the Committee.

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Crown Board Committees

To assist in carrying out its responsibilities, the Crown Board has established the following Committees: 

Committees

Current Members

Meetings held  
during FY 2009

Audit & Corporate Governance

Finance*

Investment

Occupational Health, Safety & Environment

Remuneration

Risk Management

Richard Turner (Chair)
Rowena Danziger
Michael Johnston

Geoffrey Dixon (Chair)
Michael Johnston
Richard Turner

James Packer (Chair)
John Alexander
Rowen Craigie
Ashok Jacob

Rowena Danziger (Chair)
Rowen Craigie
Michael Johnston

James Packer (Chair)
John Alexander 
Geoffrey Dixon

Geoffrey Dixon (Chair)
Rowen Craigie
Rowena Danziger

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Attended by

All members

Not applicable

All members

All members

All members

All members

* The Finance Committee did not meet this financial year as all relevant financing matters were dealt with by the Board.

Each Committee has adopted a formal Charter that outlines its duties and responsibilities.

More information

A full copy of each of Crown’s Committee Charters is available at: 
www.crownlimited.com under the heading Corporate Governance – Charters.

A description of the procedure for selection, appointment and re-election of Directors is available  
on the Crown website at: www.crownlimited.com under the heading Corporate Governance – Policies.

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Principle 3 
Promote ethical and responsible decision-making

Codes of conduct

Crown has established separate Codes of Conduct that outline the standard of ethical behaviour that is expected  
of its Directors and of its employees at all times. 

The Code of Conduct for Employees is a detailed statement of the:

•	 practices required by employees to maintain confidence in Crown’s integrity;

•	 legal obligations of employees and the reasonable expectations of their stakeholders; and

•	 responsibility and accountability of individuals for reporting and investigating reports of unethical practices.

Policy concerning trading in company securities

Crown has adopted a formal Securities Trading Policy which details Crown’s policy concerning trading in company securities 
by Directors, senior executives and employees.

The Securities Trading Policy:

•	 includes a requirement that employees do not buy and sell Crown shares and securities within a 12 month period 

(ie that they do not short trade);

•	 establishes formal “trading windows” during which Crown employees can and cannot trade in Crown shares and securities;

•	 sets out Crown’s policy on entering into transactions in associated products which limit economic risk; and

•	 summarises the application of the insider trading provisions of the Corporations Act and the consequences of 

contravention thereof.

More information

Full copies of Crown’s Code of Conduct for Directors and Code of Conduct for Employees are available at:  
www.crownlimited.com under the heading Corporate Governance – Codes.

A full copy of Crown’s Securities Trading Policy is available at:  
www.crownlimited.com under the heading Corporate Governance – Policies.

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Principle 4 
Safeguard integrity in financial reporting

Crown Audit & Corporate Governance Committee and Charter

As indicated above, Crown has established a formal Audit & Corporate Governance Committee to review the integrity  
of Crown’s financial reporting and to oversee the independence of Crown’s external auditors.

The members of the Audit & Corporate Governance Committee are Richard Turner (Chair), Rowena Danziger and Michael 
Johnston. All members of the Committee are Non-Executive Directors and a majority of those Committee members are 
independent Directors.

The Chairman of the Audit & Corporate Governance Committee, Mr Richard Turner is an independent Director who has 
extensive financial qualifications and experience, having been an audit partner at Ernst & Young and having held the position 
of Chief Executive Officer of Ernst & Young prior to his retirement in 1994.

Further information about each Committee member’s qualifications and experience is set out in the Directors’ Statutory 
Report.

The Audit & Corporate Governance Committee has adopted a formal Charter that outlines its duties and responsibilities.

The Charter includes information on the procedures for selection and appointment of the external auditor of Crown and  
for the rotation of external audit engagement partners.

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More information

A full copy of Crown’s Audit & Corporate Governance Committee Charter is available at:  
www.crownlimited.com under the heading Corporate Governance – Charters.

Principle 5 
Make timely and balanced disclosure

Policy to ensure compliance with ASX Listing Rule disclosure requirements

Crown has a formal Continuous Disclosure Policy in place which is designed to ensure compliance with ASX Listing Rule 
requirements. The Policy details processes for:

•	 ensuring material information is communicated to Crown’s Chief Executive Officer, its General Counsel and Company 

Secretary or a member of the Audit & Corporate Governance Committee;

•	 the assessment of information and for the disclosure of Material Information to the market; and

•	 the broader publication of Material Information to Crown’s shareholders and the media.

More information

A full copy of Crown’s Continuous Disclosure Policy is available at:  
www.crownlimited.com under the heading Corporate Governance – Policies.

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Principle 6 
Respect the rights of shareholders

Promotion of effective communication with shareholders

Crown has designed a Communications Policy which seeks to promote effective communication with its shareholders.  
The Policy explains how information concerning Crown will be communicated to shareholders. The communication  
channels include:

•	 Crown’s Full Financial Annual Report;

•	 disclosures made to ASX; and

•	 Notices of Meeting and other Explanatory Memoranda.

Crown has a dedicated corporate website which includes copies of all communications and other company information.

More information

A full copy of Crown’s Communication Policy is available at:  
www.crownlimited.com under the heading Corporate Governance – Policies.

Principle 7 
Recognise and manage risk

Policy for the oversight and management of material business risks

Crown has established policies for the oversight and management of material business risks and has adopted a formal  
Risk Management Policy. Risk management is an integral part of the industry in which Crown operates.

Design and implementation of risk management and internal control systems

As required by the Board, Crown’s management have devised and implemented risk management systems appropriate  
to Crown. 

Management is charged with monitoring the effectiveness of risk management systems and is required to report to the  
Board via the Risk Management Committee. The Board convened Risk Management Committee administers Crown’s Risk 
Management Policy.

The Policy sets out procedures which are designed to identify, assess, monitor and manage risk at each of Crown’s controlled 
businesses and requires that the results of those procedures are reported to the Crown Board. A formal Risk Management 
Plan has been developed using the model outlined in Australia & New Zealand Standard 4360: 2004. The Plan identifies 
specific Head Office risks in light of major risks identified at an operational level and provides the framework for the reporting 
and monitoring of material risks across the Crown group.

The Board has received, and will continue to receive, periodic reports through the Risk Management Committee, summarising 
the results of risk management initiatives at Crown.

Chief Executive Officer and Chief Financial Officer assurances

The Crown Board has received assurance from the Chief Executive Officer and the Chief Financial Officer that the declaration 
provided in accordance with section 295A of the Corporations Act is founded on a sound system of risk management and 
internal control and that the system is operating effectively in all material respects in relation to financial reporting risks.

More information

A full copy of Crown’s Risk Management Committee Charter is available at:  
www.crownlimited.com under the heading Corporate Governance – Charters.

A full copy of Crown’s Risk Management Policy is available at:  
www.crownlimited.com under the heading Corporate Governance – Policies.

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Principle 8 
Remunerate fairly and responsibly

Remuneration of Board members and Senior Executives

As indicated earlier, Crown has established a formal Remuneration Committee. The role of the Remuneration Committee is  
to review and recommend appropriate Directors’ Fees to be paid to Non-Executive Directors. At the discretion of the Crown 
Board, the role of this Committee may be extended to the remuneration policies to be applied to executives, including any 
equity-based remuneration plan that may be considered, subject to shareholder approval (where required).

The current members of the Remuneration Committee are James Packer (Chair), John Alexander and Geoffrey Dixon.

Information about each Committee member’s qualifications and experience is set out in the Directors’ Statutory Report.

The Remuneration Committee has adopted a formal Charter that outlines its duties and responsibilities.

A summary of current remuneration arrangements is set out more fully in the Remuneration Report.

The objective of Crown’s remuneration policy is to ensure that:

•	 senior executives are motivated to pursue the long-term growth and success of Crown; and

•	 there is a clear relationship between senior executives’ performance and remuneration.

Departure from Recommendation 8.1: The Revised Principles recommend that the Remuneration Committee should be 
structured so that it consists of a majority of independent Directors, is chaired by an independent Director and has at least 
three members.

Whilst the composition and responsibilities of the Committee are not consistent with the recommendations in the Revised 
Principles, the Committee provides an effective and efficient mechanism for consideration of appropriate remuneration policy 
for Crown, responsibility for which ultimately lies with the Crown Board.

Policy on entering into transactions in associated products which limit economic risk

Crown’s policy on Directors and employees entering into transactions in associated products which limit economic risk  
is referred to in its Securities Trading Policy.

The Policy provides that in accordance with the Rules of the Executive Share Plan (ESP) operated by Crown those “Directors 
and employees of the Crown Group” who hold Crown shares under the ESP must not, without the prior consent in writing  
of Crown, sell, create a security interest in, or otherwise dispose or deal with their Crown shares or any of their interests in  
any of those Crown shares.

More information

A full copy of Crown’s Remuneration Committee Charter is available at:  
www.crownlimited.com under the heading Corporate Governance – Charters.

A full copy of Crown’s Remuneration Policy is available at:  
www.crownlimited.com under the heading Corporate Governance – Policies.

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Nevada Information Statement

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The gaming industry in Nevada is highly regulated and Crown must maintain relevant licences and pay gaming taxes  
to continue operations. Each of the casinos in which Crown has an interest is subject to extensive regulation under the  
laws, rules and regulations of the jurisdiction where it is located. These laws, rules and regulations generally concern the 
responsibility, financial stability and character of the owners, managers, and persons with financial interest in the gaming 
operations. violations of laws in one jurisdiction could result in disciplinary action in other jurisdictions. 

As part of the acquisition of Crown’s interest in Cannery Casino Resorts, LLC, Crown was granted a Non-Restricted Gaming 
Licence in the state of Nevada on 22 January 2009. One of the conditions of that licence requires Crown to summarise 
relevant Nevada gaming law requirements in this Report. Crown Entertainment Complex in Melbourne and Burswood 
Entertainment Complex in Perth are regulated in a similar manner by the victorian Commission for Gambling Regulation and 
the Western Australian Department of Racing Gaming and Liquor, respectively. We are not, however, required to summarise 
the regulations specific to victoria and Western Australia in this Report.

Nevada Government Regulation
The ownership and operation of casino gaming facilities in Nevada are subject to the Nevada Gaming Control Act and the 
regulations promulgated thereunder (collectively, the Nevada Act) and various local regulations. Gaming operations are 
subject to the licensing and regulatory control of the Nevada Gaming Commission (the Nevada Commission), the Nevada 
State Gaming Control Board (the Nevada Board) and various county and city licensing agencies (the local authorities). The 
Nevada Commission, the Nevada Board and the local authorities are collectively referred to as the “Nevada Gaming Authorities”.

The laws, regulations and supervisory procedures of the Nevada Gaming Authorities are based upon declarations of public 
policy that are concerned with, among other things:

•	 the prevention of unsavoury or unsuitable persons from having a direct or indirect involvement with gaming at any time 

or in any capacity; 

•	 the establishment and maintenance of responsible accounting practices;

•	 the maintenance of effective controls over the financial practices of licensees, including the establishment of minimum 

procedures for internal fiscal affairs and the safeguarding of assets and revenues;

•	 providing reliable record keeping and requiring the filing of periodic reports with the Nevada Gaming Authorities;

•	 the prevention of cheating and fraudulent practices; and 

•	 providing a source of state and local revenues through taxation and licensing fees. 

Each of the entities in which Crown holds an investment and which currently operate casinos in Nevada (the casino 
licensees) is required to be licensed by the Nevada Gaming Authorities. Certain of Crown’s subsidiaries in the Cannery 
ownership chain have also been licensed or found suitable as shareholders, members or general partners, as relevant, of the 
casino licensees. The casino licensees and the foregoing subsidiaries are collectively referred to as the “licensed subsidiaries”. 

Registration as a Publicly Traded corporation
Crown is required to be registered by the Nevada Commission as a publicly traded corporation and, as such, is required 
periodically to submit detailed financial and operating reports to the Nevada Commission and to furnish any other information 
that the Nevada Commission may require. No person may become a shareholder or member of, or receive any percentage  
of profits from the licensed subsidiaries without first obtaining licenses and approvals from the Nevada Gaming Authorities. 

Additionally, local authorities have taken the position that they have the authority to approve all persons owning or controlling 
the shares of any corporation controlling a gaming licensee. Crown and the subsidiaries have obtained from the Nevada 
Gaming Authorities the various registrations, approvals, permits and licenses required in order to engage in gaming activities  
in Nevada.

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Suitability of individuals

Power to investigate

The Nevada Gaming Authorities may investigate any individual who has a material relationship to, or material involvement with, 
Crown or any of the licensed subsidiaries to determine whether such individual is suitable or should be licensed as a business 
associate of a gaming licensee. 

Officers, Directors and certain key employees of the licensed subsidiaries must file applications with the Nevada Gaming 
Authorities and may be required to be licensed by the Nevada Gaming Authorities. Crown’s officers, Directors and key 
employees who are actively and directly involved in the gaming activities of the licensed subsidiaries may be required to  
be licensed or found suitable by the Nevada Gaming Authorities. 

The Nevada Gaming Authorities may deny an application for licensing or a finding of suitability for any cause they deem 
reasonable. A finding of suitability is comparable to licensing and both require submission of detailed personal and financial 
information followed by a thorough investigation. The applicant for licensing or a finding of suitability or the gaming licensee  
by which the applicant is employed or for whom the applicant serves must pay all the costs of the investigation. 

Changes in licensed positions must be reported to the Nevada Gaming Authorities and, in addition to their authority to deny 
an application for a finding of suitability or licensure, the Nevada Gaming Authorities have jurisdiction to disapprove a change 
in a corporate position.

Consequences of finding of unsuitability

If the Nevada Gaming Authorities were to find an officer, Director or key employee unsuitable for licensing or to continue 
having a relationship with Crown or the licensed subsidiaries, such company or companies would have to sever all 
relationships with that person. In addition, the Nevada Commission may require Crown or the licensed subsidiaries  
to terminate the employment of any person who refuses to file appropriate applications. Determinations of suitability  
or of questions pertaining to licensing are not subject to judicial review in Nevada.

Reporting requirements

Crown and the casino licensees are required to submit detailed financial and operating reports to the Nevada Commission. 
Substantially all of Crown and the licensed subsidiaries’ material loans, leases, sales of securities and similar financing 
transactions must be reported to or approved by the Nevada Commission.

Consequences of violation of the Nevada Act
If the Nevada Commission determined that Crown or a licensed subsidiary violated the Nevada Act, it could limit, condition, 
suspend or revoke, subject to compliance with certain statutory and regulatory procedures, Crown’s Nevada gaming licenses 
and those of Crown’s licensed subsidiaries. In addition, Crown and the licensed subsidiaries and the persons involved could 
be subject to substantial fines for each separate violation of the Nevada Act at the discretion of the Nevada Commission. 

Certain beneficial holders of shares required to be licensed

Generally

Any beneficial holder of Crown’s voting securities, regardless of the number of shares owned, may be required to file an 
application, be investigated and have his or her suitability as a beneficial holder of the voting securities determined if the 
Nevada Commission has reason to believe that such ownership would otherwise be inconsistent with the declared policies  
of the State of Nevada. The applicant must pay all costs of investigation incurred by the Nevada Gaming Authorities  
in conducting any such investigation.

The Nevada Act requires any person who acquires more than 5% of any class of Crown’s voting securities to report the 
acquisition to the Nevada Commission. The Nevada Act requires that beneficial owners of more than 10% of any class  
of Crown’s voting securities apply to the Nevada Commission for a finding of suitability within thirty days after the Chairman  
of the Nevada Board mails the written notice requiring such filing. 

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Institutional investors

Under certain circumstances, an “institutional investor” as defined in the Nevada Act, which acquires more than 10% but  
not more than 15% of any class of our voting securities, may apply to the Nevada Commission for a waiver of such finding  
of suitability if such institutional investor holds the voting securities for investment purposes only. 

An institutional investor will be deemed to hold voting securities for investment purposes if it acquires and holds the voting 
securities in the ordinary course of business as an institutional investor and not for the purpose of causing, directly or indirectly, 
the election of a majority of the members of Crown’s Board of Directors, any change in Crown’s constitution, management, 
policies or operations or any of Crown’s gaming affiliates or any other action that the Nevada Commission finds to be 
inconsistent with holding Crown’s voting securities for investment purposes only. 

Activities that are not deemed to be inconsistent with holding voting securities for investment purposes only include:

•	 voting on all matters voted on by shareholders; 

•	 making financial and other inquiries of management of the type normally made by securities analysts for informational 

purposes and not to cause a change in its management, policies or operations; and 

•	 such other activities as the Nevada Commission may determine to be consistent with such investment intent. 

Corporations and trusts

If the beneficial holder of voting securities who must be found suitable is a corporation, partnership or trust, it must submit 
detailed business and financial information including a list of beneficial owners. The applicant is required to pay all costs  
of investigation.

Consequences of finding of unsuitability

Any person who fails or refuses to apply for a finding of suitability or a license within 30 days after being ordered to do so by 
the Nevada Commission or the Chairman of the Nevada Board may be found unsuitable. The same restrictions apply to a 
nominee if the nominee, after request, fails to identify the beneficial owner. Any shareholder found unsuitable and who holds, 
directly or indirectly, any beneficial ownership of Crown’s shares beyond such period of time as may be prescribed by the 
Nevada Commission may be guilty of a criminal offence in Nevada. Crown will be subject to disciplinary action if, after Crown 
receives notice that a person is unsuitable to be a shareholder or to have any other relationship with Crown or a licensed 
subsidiary, Crown or any of the licensed subsidiaries:

•	 pays that person any dividend or interest upon any of our voting securities;

•	 allows that person to exercise, directly or indirectly, any voting right conferred through securities held by that person, 

•	 pays remuneration in any form to that person for services rendered or otherwise, or 

•	 fails to pursue all lawful efforts to require such unsuitable person to relinquish his or her voting securities including 

if necessary, the immediate purchase of the voting securities for cash at fair market value.

Certain debt holders required to be licensed
The Nevada Commission may, in its discretion, require the holder of any of Crown’s debt securities to file an application,  
be investigated and be found suitable to hold the debt security. If the Nevada Commission determines that a person is 
unsuitable to own such security, then pursuant to the Nevada Act, Crown can be sanctioned, including the loss of its 
approvals, if without the prior approval of the Nevada Commission, it: 

•	 pays to the unsuitable person any dividend, interest or any distribution whatsoever;

•	 recognises any voting right by such unsuitable person in connection with such securities; 

•	 pays the unsuitable person remuneration in any form; or 

•	 makes any payment to the unsuitable person by way of principal, redemption, conversion, exchange, liquidation 

or similar transaction.

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Maintenance of Share Register
Crown is required to maintain a current share register in Nevada that may be examined by the Nevada Gaming Authorities  
at any time. If any securities are held in trust by an agent or by a nominee, the record holder may be required to disclose  
the identity of the beneficial owner to the Nevada Gaming Authorities. A failure to make such disclosure may be grounds  
for finding the record holder unsuitable. We are also required to render maximum assistance in determining the identity  
of the beneficial owner. The Nevada Commission has the power to require Crown’s holding statements or share certificates 
bear a legend indicating that such securities are subject to the Nevada Act. To date, however, the Nevada Commission has 
not imposed such a requirement on us.

Actions requiring prior approval of the Nevada Commission

Public offerings to fund Nevada gambling activities

Crown may not make a public offering of any securities without the prior approval of the Nevada Commission if the securities 
or the proceeds therefrom are intended to be used to construct, acquire or finance gaming facilities in Nevada or to retire  
or extend obligations incurred for those purposes or for similar purposes. An approval, if given, does not constitute a finding, 
recommendation or approval by the Nevada Commission or the Nevada Board as to the accuracy or adequacy of the 
prospectus or the investment merits of the securities. Any representation to the contrary is unlawful.

Transactions effecting a change in control

Changes in control of Crown through merger, consolidation, share or asset acquisitions, management or consulting 
agreements or any act or conduct by a person whereby he or she obtains control, may not occur without the prior approval  
of the Nevada Commission. Entities seeking to acquire control of a registered corporation must satisfy the Nevada Board and 
the Nevada Commission concerning a variety of stringent standards prior to assuming control of the registered corporation. 
The Nevada Commission may also require controlling shareholders, officers, Directors and other persons having a material 
relationship or involvement with the entity proposing to acquire control to be investigated and licensed as part of the approval 
process relating to the transaction.

Share buy backs and other arrangements

Approvals are, in certain circumstances, required from the Nevada Commission before Crown can make exceptional 
repurchases of voting securities above the current market price and before a corporate acquisition opposed by management 
can be consummated. The Nevada Act also requires prior approval of a plan of recapitalisation proposed by a registered 
corporation’s Board of Directors in response to a tender offer made directly to the registered corporation’s shareholders for  
the purpose of acquiring control of that corporation.

Investigation and monitoring of “foreign gaming operations”
Because Crown is involved in gaming ventures outside of Nevada, Crown is required to deposit with the Nevada Board and 
thereafter maintain a revolving fund in the amount of US$10,000 to pay the expenses of investigation by the Nevada Board  
of our participation in such gaming. 

The Nevada Board refers to any of Crown’s operations outside of Nevada as “foreign gaming operations”. The revolving fund  
is subject to increase or decrease at the discretion of the Nevada Commission. Crown is also required to comply with  
certain reporting requirements imposed by the Nevada Act. Crown would be subject to disciplinary action by the Nevada 
Commission if we:

•	 knowingly violate any laws of the foreign jurisdiction pertaining to the foreign gaming operation;

•	 fail to conduct the foreign gaming operation in accordance with the standards of honesty and integrity required of Nevada 

gaming operations;

•	 engage in any activity or enter into any association that is unsuitable because it poses an unreasonable threat to the control 
of gaming in Nevada, reflects or tends to reflect discredit or disrepute upon the State of Nevada or gaming in Nevada or is 
contrary to the gaming policies of Nevada;

•	 engage in any activity or enter into any association that interferes with the ability of the State of Nevada to collect gaming 

taxes and fees; or 

•	 employ, contract with or associate with any person in the foreign gaming operation who has been denied a license or a 

finding of suitability in Nevada on the ground of personal unsuitability or who has been found guilty of cheating at gambling.

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Directors’ Statutory Report

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Review of operations

A review of operations of the Crown group for the financial year ended 30 June 2009 and the results of those operations  
is detailed on pages 5 to 21.

The principal activity of the entities within the Crown group is gaming and entertainment.

Significant changes in state of affairs

Some of the significant changes in the state of affairs of the consolidated group since 1 July 2008 include:

•	 in December 2008, Crown undertook an underwritten equity placement of shares to raise $300 million in new capital;

•	 in February 2009, Crown launched a Share Purchase Plan which gave eligible shareholders the opportunity to subscribe 
for up to $4,999.50 worth of new shares in Crown at $4.95 per share. The Share Purchase Plan raised approximately 
$40.2 million in additional capital; and 

•	 in March 2009, Crown announced it had agreed to terminate the original transaction to acquire Cannery Casino Resorts, 
LLC and had agreed to pay Cannery US$320 million to subscribe for series B Preferred Units. The Series B Preferred  
Units may, subject to receipt of necessary regulatory approvals, be converted into Series A2 Preferred Units giving Crown 
an approximate 24.5% interest in Cannery Casino Resorts, LLC. Crown has also been granted (subject to the necessary 
further regulatory approvals) an option, exercisable at any time over the next two years, to acquire the balance of the equity 
interests in Cannery Casino Resorts, LLC on the same terms as the original transaction.

Significant events after Balance Date

Subsequent to 30 June 2009, the Directors of Crown announced a final dividend on ordinary shares in respect of the year 
ending 30 June 2009. The total amount of the dividend is $144.1 million, which represents 19 cents per share. The final 
dividend will be 60% franked. None of the unfranked component of the dividend will be conduit foreign income. The dividend 
has not been provided for in the 30 June 2009 financial statements.

Likely developments

Other than the developments described in this Report and the accompanying review of operations, the Directors are of the 
opinion that no other matter or circumstance will significantly affect the operations and expected results for the Crown group.

Environmental regulation

The National Greenhouse and Energy Reporting Act 2007 (the NGER Act) was passed on 29 September 2007 establishing 
a mandatory reporting system for corporate greenhouse gas emissions and energy production and consumption. Crown will 
be required to report emissions under the NGER Act. The first reporting period commenced on 1 July 2008 and relevant 
reports are due for submission in October 2009.

Key features of the NGER Act are:

•	 reporting of greenhouse gas emissions, energy consumption and production by large corporations;

•	 public disclosure of corporate level greenhouse gas emissions and energy information; and

•	 to provide consistent and comparable data for decision making, in particular, to assist the development of the 

Carbon Pollution Reduction Scheme.

Crown is also subject to the Energy Efficiency Opportunities Act 2006 which came into effect on 1 July 2006.  
The Energy Efficiency Opportunities program encourages large energy-using businesses to improve their energy efficiency.  
It does this by requiring businesses to identify, evaluate and report publicly on cost effective energy savings opportunities. 
Crown submits reports in line with the required reporting schedule.

The Crown group is otherwise not subject to any particular or significant environmental regulation under Australian law. 
Environmental issues are, however, important to Crown and it has taken a number of initiatives in this regard. A description  
of those initiatives is set out in the Community and Environment section of this Report.

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Dividends and distributions

Interim Dividend: Crown paid an interim dividend of 18 cents per ordinary share on 30 April 2009. The dividend was 60% 
franked. None of the unfranked component was conduit foreign income.

Final Dividend: The Directors of Crown have announced a final dividend of 19 cents per ordinary share to holders registered 
as at 2 October 2009. The final divided will be 60% franked. None of the unfranked component of the dividend will be conduit 
foreign income.

In summary:

Interim Dividend paid

Final Dividend payable

Total

Dividend per share

18 cents per share

19 cents per share

37 cents per share

$’000

$136,511

$144,095

$280,606

Crown paid shareholders a final dividend in respect of the 2008 financial year of $200 million.

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Directors and Officers

Director details

Set out below are the names of each person who has been a Director of Crown during or since year end and the period for 
which they have been a Director. There are eleven current Directors.

Name

James Douglas Packer

John Henry Alexander

Christopher John Anderson

Benjamin Alexander Brazil

Christopher Darcy Corrigan

Rowen Bruce Craigie

Rowena Danziger

Geoffrey James Dixon

Ashok Jacob

Michael Roy Johnston

David Hillel Lowy

Richard Wallace Turner

Date Appointed

6 July 2007

6 July 2007

6 July 2007

26 June 2009

6 July 2007

31 May 2007

6 July 2007

6 July 2007

6 July 2007

6 July 2007

6 July 2007

6 July 2007

Date Ceased

–

–

2 April 2009

–

–

–

–

–

–

–

–

–

At Crown’s 2008 Annual General Meeting, Mr John Alexander, Mrs Rowena Danziger and Mr Geoff Dixon stood for re-election 
as Directors. Each was re-elected as a Director at that time.

The details of each Director’s qualifications and experience as at the date of this Report are set out below. Details  
of all directorships of other listed companies held in the three years before the end of the financial year have been included.

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James D Packer, Executive Chairman

Mr Packer is also Executive Chairman of Consolidated Press Holdings Limited and Executive Deputy Chairman of 
Consolidated Media Holdings Limited. Mr Packer is also a Director of Crown Melbourne Limited (appointed 22 July 1999)  
and Ellerston Capital Limited (appointed 6 August 2004) and a Director of Melco Crown Entertainment Limited.

Mr Packer was previously a Director of Qantas Airways Limited until 31 August 2007.

Directorships of other listed companies held during the last three years:

•	 Challenger Financial Services Group Limited: from 6 November 2003 to 8 September 2009

•	 Consolidated Media Holdings Limited1: from 28 April 1992 to current

•	 Ellerston Capital Limited: from 6 August 2004 to current

•	 Qantas Airways Limited: from 1 August 2000 to 31 August 2007

•	 SEEK Limited: from 31 October 2003 to 26 August 2009

•	 Sunland Group Limited: from 20 July 2006 to 13 August 2009

John Alexander BA, Executive Deputy Chairman

Mr Alexander became Executive Chairman of Consolidated Media Holdings Limited in November 2007. Mr Alexander had 
previously been Chief Executive Officer and Managing Director of PBL since June 2004.

Mr Alexander joined ACP Magazines as Group Publisher in 1998 and was appointed Chief Executive Officer of that division  
in March 1999, a position he held until April 2006. In January 2002, he was appointed Chief Executive Officer of PBL’s media 
businesses which included ACP Magazines and Nine Network – then owned by PBL. Prior to joining the PBL Group, 
Mr Alexander was the Editor-in-Chief, Publisher & Editor of The Sydney Morning Herald and Editor-in-Chief of The Australian 
Financial Review.

Mr Alexander is a Director of various companies including Crown Melbourne Limited, Burswood Limited, Melco Crown 
Entertainment Limited, Aspinalls Holdings (Jersey) Limited, FOXTEL Management Pty Limited and Premier Media Group  
Pty Limited.

Directorships of other listed companies held during the last three years:

•	 Consolidated Media Holdings Limited1: from 16 December 1999 to current

•	 SEEK Limited: from 17 April 2009 to 26 August 2009

Benjamin A Brazil BCom LLB, Independent, Non-Executive Director

Mr Brazil is an Executive Director of Macquarie Group Limited, within its Corporate Asset Finance Division. He originally 
commenced employment at Macquarie in 1994 and has operated across a range of geographies and business lines during 
the course of his career.

He holds a Bachelor of Commerce and a Bachelor of Laws from the University of Queensland.

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Christopher D Corrigan, Independent, Non-Executive Director

Mr Corrigan was Managing Director of Patrick Corporation Limited, Australia’s largest stevedore company with interests  
in rail transportation and aviation from March 1990 to May 2006. Prior to that, he had a career with Bankers Trust spanning  
20 years, including periods as Managing Director of Bankers Trust in Australia and for the Asia-Pacific region.

Mr Corrigan sponsored the formation of a development capital business of $220 million known as Jamison Equity  
Limited in 1990, which became a wholly owned subsidiary, in December 1996, of the then publicly listed company  
Patrick Corporation Limited.

Directorships of other listed companies held during the last three years:

•	 Consolidated Media Holdings Limited1: from 8 March 2006 to current

•	 Webster Limited: from 30 November 2007 to current

Rowen B Craigie BEc (Hons), Chief Executive Officer and Managing Director

Mr Craigie is also a Director of Crown Melbourne Limited, Burswood Limited, Melco Crown Entertainment Limited, Aspinalls 
Holdings (Jersey) Limited and New World Gaming Partners Holdings British Columbia Limited. 

Mr Craigie previously served from 2007 to 2008 as the Chief Executive Officer, PBL Gaming and from 2002 to 2007 as the Chief 
Executive Officer of Crown Melbourne Limited. Mr Craigie joined Crown Melbourne Limited in 1993 and was appointed as the 
Executive General Manager of its Gaming Machines department in 1996, and was promoted to Chief Operating Officer in 2000. 

Prior to joining Crown Melbourne Limited, Mr Craigie was the Group General Manager for Gaming at the TAB in victoria from 1990 
to 1993, and held senior economic policy positions in Treasury and the Department of Industry in victoria from 1984 to 1990.

Directorships of other listed companies held during the last three years:

•	 Consolidated Media Holdings Limited1: from 9 January 2002 to 8 April 2009

Rowena Danziger BA, TC, MACE, Independent, Non-Executive Director

Mrs Danziger’s professional experience spans over 30 years in various Australian and American educational institutions. She 
was the Headmistress at Ascham School in Sydney from 1973 to 2003. She is currently a Board member of Sydney Writers’ 
Festival and Chairperson of The Foundation of the Art Gallery of NSW.

Mrs Danziger is also a Director of Consolidated Media Holdings Limited and Crown Melbourne Limited.

Directorships of other listed companies held during the last three years:

•	 Consolidated Media Holdings Limited1: 17 September 1997 to current

Geoffrey J Dixon, Independent, Non-Executive Director 

Geoff Dixon stepped down in November 2008 after eight years as Managing Director and Chief Executive of Qantas Airways 
Limited. Mr Dixon joined Qantas in 1994, and was appointed Deputy Chief Executive in November 1998, to the Board of 
Directors in August 2000, Chief Executive Designate in November 2000 and Managing Director and Chief Executive Officer  
in March 2001.

Before joining Qantas Mr Dixon was Director of Marketing and Industry Sales at Ansett Australia Airlines and General Manager 
Marketing and Corporate Affairs at Australian Airlines. In both positions he was responsible for a wide range of commercial 
and customer service activities.

Prior to his career in the airline industry, Mr Dixon worked for an arm of the Australian Government Overseas Service  
(The Australian Information Service) in Australia and on posting for eleven years to the Australian Missions in The Hague,  
New York and San Francisco. He has also worked in the mining and media industries. Mr Dixon is Chairman of the Garvan 
Medical Research Foundation, Chairman of Queensland Events, Deputy Chairman of Tourism Australia and on the Advisory 
Board of Seabury Aviation and Aerospace, New York.

Directorships of other listed companies held during the last three years:

•	 Qantas Airways Limited: from 1 August 2000 to 28 November 2008

•	 Consolidated Media Holdings Limited1: from 31 May 2006 to current

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Ashok Jacob MBA, Non-independent, Non-Executive Director

Mr Jacob is Chief Executive Officer of Consolidated Press Holdings Limited (CPH). Prior to joining CPH in 1998, Mr Jacob 
was the Managing Director of the investment arm of the Pratt group of companies.

Mr Jacob is a Director of MRF Limited (appointed 26 October 1998) and a Director of Consolidated Media Holdings Limited 
(reappointed on 10 September 2009).

Mr Jacob holds a Master of Business Administration from the Wharton School, University of Pennsylvania and a Bachelor  
of Science from the University of Bangalore.

Directorships of other listed companies held during the last three years:

•	 Consolidated Media Holdings Limited1: from 9 November 1998 to 8 April 2009, reappointed on 10 September 2009

•	 Challenger Financial Services Group Limited: from 6 November 2003 to 8 September 2009

•	 Ellerston Capital Limited: from 6 August 2004 to current

Michael R Johnston BEc, CA, Non-independent, Non-Executive Director

Mr Johnston is the Finance Director of Consolidated Press Holdings Limited (CPH), having previously been an advisor to the 
CPH group for 17 years. As Finance Director, he oversees a large number of operational businesses within the CPH group  
and its controlled associates. Mr Johnston was also the Chief Financial Officer of Ellerston Capital (a subsidiary of CPH) until  
30 June, 2008. He is an alternate Director of Consolidated Media Holdings Limited.

Prior to his appointment with the CPH group, he was a senior partner in the Australian member firm of Ernst & Young.  
Mr Johnston was also on the Board of Partners of Ernst & Young, Australia. Mr Johnston holds a Bachelor of Economics 
Degree from Sydney University and is an Associate of the Institute of Chartered Accountants in Australia.

Directorships of other listed companies held during the last three years:

•	 Challenger Financial Services Group Limited2: from 24 February 2006 to 8 September 2009

•	 Ellerston Capital Limited: from 6 August 2004 to current

•	 Consolidated Media Holdings Limited1, 2: from 16 December 2005 to 8 April 2009

David H Lowy AM, BCom, Independent, Non-Executive Director

David Lowy is a principal of LFG Holdings and Non-Executive Deputy Chairman of Westfield Holdings Limited. He is also the 
Founder and President of the Temora Aviation Museum and a Director of The Lowy Institute for International Policy. He holds  
a Bachelor of Commerce degree from the University of NSW. 

Directorships of other listed companies held during the last three years:

•	 Westfield Group: from 5 July 2004 to current

•	 Westfield America Management Limited: from 13 July 2004 to current

•	 Consolidated Media Holdings Limited1: from 31 May 2006 to 8 April 2009

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Richard W Turner AM, BEc, FCA, Independent, Non-Executive Director

Before his retirement in 1994, Mr Turner had been the Chief Executive Officer of Ernst & Young, having had a successful  
36 year career as an audit partner. Mr Turner is a Fellow of the Institute of Chartered Accountants in Australia. He is Chairman 
of Lloyds International Pty Ltd. He was past President and Director of The Smith Family and past Chairman and a current 
Director of the Institute of Pain Management Research Institute Limited.

Mr Turner is also a Director of Crown Melbourne Limited and is Chairperson of Crown’s Audit & Corporate Governance Committee.

Directorships of other listed companies held during the last three years:

•	 Consolidated Media Holdings Limited1: from 9 November 1998 to 8 April 2009

•	 The Mirvac Group: from 7 January 2005 to 25 August 2009

•	 Bank of Western Australia Limited from 15 December 2005 to 19 December 20083

Notes:

1. Consolidated Media Holdings Limited (previously Publishing and Broadcasting Limited, ASX Code: PBL).

2. Alternate Director to Mr James Packer and Mr Ashok Jacob.

3. Removed from ASX’s official list on 20 December 2008.

Company secretary details

Michael J Neilson BA, LLB

Mr Neilson is Crown’s General Counsel and joint Company Secretary. Prior to his appointment with Crown, he was General 
Counsel for Crown Melbourne Limited, a position he held from 2004 to 2007.

Prior to joining the Crown group, Mr Neilson spent 10 years in a commercial legal practice in Melbourne before joining the 
Lend Lease Group in Sydney in 1997 as General Counsel for Lend Lease Property Management.

In 1998, he was appointed General Counsel and Company Secretary of General Property Trust, the position he held until 
joining Crown Melbourne Limited in 2004.

Mr Neilson is also a member of the School Council of Camberwell Grammar School.

Mary Manos BCom, LLB (Hons)

Ms Manos was appointed joint Company Secretary in April 2008. She commenced employment with the Crown Group in 
October 2007 just prior to implementation of the PBL Scheme and the Demerger Scheme. Prior to joining Crown, Ms Manos 
was a Senior Associate in a Melbourne law firm, specialising in mergers and acquisitions and corporate law.

Other officer details

In addition to the above, Crown’s principal officers include:

•	 Robert F Turner

Chief Financial Officer

•	 David G Courtney 

Chief Executive Officer, Crown Melbourne Limited

•	 Barry J Felstead 

Chief Executive Officer, Burswood Limited

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Relevant interests of Directors

Details of relevant interests of current Directors in Crown shares as at 30 June 2009 are as follows:

Director

John Alexander

Rowen Craigie

Rowena Danziger

David Lowy 

James Packer

Richard Turner

Notes:

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Total number  
of ordinary Shares1

607,680

2,341,102

30,896

137,250

280,753,465

29,373

1. Mr Craigie’s holding is entirely comprised of Crown ESP shares. For more information on relevant interests of current Directors, please see 

the Remuneration Report and the key management personnel disclosures set out in the Notes to the Financial Statements.

None of Crown’s Directors are party to any contract which would give that Director the right to call for the delivery of shares  
in Crown.

Board and committee meetings

Set out below are details of the number of Board meetings and committee meetings held by Crown during the 2009 financial 
year together with each Director’s attendance details. 

Audit & Corporate 
Governance 
Committee

Investment 
Committee

Board

Occupational 
Health, Safety  
& Environment 
Committee

Remuneration 
Committee

Risk Management 
Committee

Meetings

Meetings

Meetings

Meetings

Meetings

Meetings

Held

Attended Held

Attended Held

Attended Held

Attended Held

Attended Held

Attended

14

14

11

–

14

14

14

14

14

14

14

14

12

14

10

–

10

14

14

13

11

11

10

14

–

–

–

–

–

–

4

–

–

4

–

4

–

–

–

–

–

–

4

–

–

4

–

4

1

1

–

–

–

1

–

–

1

–

–

–

1

1

–

–

–

1

–

–

1

–

–

–

–

–

–

–

–

3

3

–

–

3

–

–

–

–

–

–

–

3

3

–

–

3

–

–

1

1

–

–

–

–

–

1

–

–

–

–

1

1

–

–

–

–

–

1

–

–

–

–

–

–

–

–

–

2

2

2

–

–

–

–

–

–

–

–

–

2

2

2

–

–

–

–

J D Packer 

J H Alexander 

C J Anderson*

B A Brazil**

C D Corrigan

R B Craigie

R Danziger

G J Dixon

A P Jacob

M R Johnston

D H Lowy 

R W Turner 

*  Resigned 2 April 2009.

** Appointed 26 June 2009.

The Finance Committee did not meet this financial year as all relevant financing matters were dealt with by the Board.

The Corporate Governance Statement includes details on Board committee structure and membership during the year.

Under Crown’s Constitution, documents containing written resolutions assented to by Directors are to be taken as a minute  
of a meeting of Directors. There was one written resolution assented to by the Board this financial year.

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Shares and Options
Crown has not granted any options over unissued shares. There are no unissued shares or interests under option. No shares 
or interests have been issued during or since year end as a result of option exercise.

Indemnity and insurance of officers and auditors

Director and officer indemnities

Crown indemnifies certain persons as detailed in its Constitution in accordance with the terms of the Crown Constitution.

On 8 October 2008 Crown Melbourne Limited entered into an agreement to indemnify Mr Rowen Craigie in relation to 
proceedings issued in the Supreme Court of victoria against Crown Melbourne Limited. Mr Craigie was later joined as a 
defendant to those proceedings. To the full extent permitted by law, Crown Melbourne Limited has agreed to indemnify  
Mr Craigie in the event that he incurs liability in the proceeding, whether as a result of judgement, settlement or otherwise.

A mirror indemnity was provided by Crown Melbourne Limited to Mr John Williams (in his capacity as Chief Operating Officer, 
vIP Gaming of Crown Melbourne Limited) in March 2007 in relation to the same proceedings.

D&O Insurance

During the year Crown has paid insurance premiums to insure officers of the Crown group against certain liabilities.

The insurance contract prohibits disclosure of the nature of the insurance cover and the amount of the insurance payable.

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Auditor Information

Auditor details

Ernst & Young has been appointed Crown’s auditor.

Mr Brett Kallio is the Ernst & Young partner responsible for the audit of Crown’s accounts.

True and fair information

There is no additional true and fair information included in the financial report.

Non-audit services

Details of the amounts paid or payable to the auditor for non-audit services provided during the year by the auditor are 
outlined in Note 28 of the Financial Report.

The Directors are satisfied that the non-audit services are compatible with the general standard of independence for auditors 
imposed by the Corporations Act. The Board considers that the nature and scope of the services provided do not affect 
auditor independence.

Rounding

The amounts contained in the financial statements have been rounded off to the nearest thousand dollars (where rounding  
is applicable) under the option available to Crown under ASIC Class Order 98/0100. Crown is an entity to which the Class 
Order applies.

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Remuneration Report

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Introduction

Content of the Report

This Remuneration Report outlines the Director and executive remuneration arrangements of Crown in accordance with the 
requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report, key management personnel 
(KMP) of the Group are defined as those persons having authority and responsibility for planning, directing and controlling the 
major activities of the Company and the Group, directly or indirectly, including any Director (whether executive or otherwise)  
of the parent company. For further details of KMP, refer to Note 30 of the Financial Report.

The disclosures in the Remuneration Report have been audited.

Structure of disclosures

As shareholders are aware, Crown acquired the majority of its gaming assets via two schemes of arrangement between the 
then Publishing and Broadcasting Limited (PBL) (now Consolidated Media Holdings Limited (CMH)), Crown and their 
respective shareholders (PBL Scheme).

Last year, due to the application of Australian Accounting Standards, Crown was required to provide information in relation  
to both “gaming” Directors and executives as well as other ex PBL “media” executives who had not participated in the gaming 
business of Crown during the year, but had been part of the Crown consolidated group during the year. Crown is required 
again this year to include comparative data for 2008 in relation to ex PBL media executives in this Report. The comparative 
data has been provided separately to other data to avoid confusion.

Persons to whom Report applies

The remuneration disclosures in this Report cover the following persons:

Non-Executive Directors

•	 Christopher J Anderson (resigned 2 April 2009)

•	 Benjamin A Brazil (appointed 26 June 2009)

•	 Christopher D Corrigan

•	 Rowena Danziger

•	 Geoffrey J Dixon

•	 Ashok Jacob

•	 Michael R Johnston

•	 David H Lowy

•	 Richard W Turner

Executive Directors

•	 James D Packer (Executive Chairman)

•	 John H Alexander (Executive Deputy Chairman)

•	 Rowen B Craigie (Managing Director and Chief Executive Officer)

Other company executives and key management personnel

•	 David G Courtney (Chief Executive Officer, Crown Melbourne Limited)

•	 Barry J Felstead (Chief Executive Officer, Burswood Limited)

•	 Geoffrey R Kleemann (Chief Financial Officer to 19 October 2008)

•	 Robert F Turner (Chief Financial Officer from 20 October 2008)

In this Report the group of persons comprised of the Executive Directors and the other company executives and key 
management personnel (listed above) are referred to as “Senior Executives”. 

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Media company executives and key management personnel

As mentioned above, due to the application of Australian Accounting Standards, this Report also sets out comparative 
remuneration disclosures for 2008 in relation to:

•	 Martin P Dalgleish

•	 Guy Jalland

Mr Dalgleish and Mr Jalland held executive roles within the PBL group prior to the PBL Scheme.

Overview of remuneration policy

Philosophy

The performance of the Crown group is dependent upon the quality of its Directors, senior executives and employees.  
Crown seeks to attract, retain and motivate skilled Directors and senior executives of the highest calibre.

Crown’s remuneration philosophy is to ensure that remuneration packages properly reflect a person’s duties and 
responsibilities, that remuneration is appropriate and competitive both internally and as against comparable companies  
and that there is a direct link between remuneration and performance.

Crown has differing remuneration structures in place for Non-Executive Directors and Senior Executives.

Non-Executive Directors

The process for determining remuneration of the Non-Executive Directors has the objective of ensuring maximum benefit for 
Crown by the retention of a high quality Board.

The Remuneration Committee bears the responsibility of determining the appropriate remuneration for Non-Executive 
Directors. Non-Executive Directors’ fees are reviewed periodically by the Remuneration Committee with reference taken to the 
fees paid to the Non-Executive Directors of comparable companies. The Remuneration Committee is subject to the direction 
and control of the Board. 

In forming a view of the appropriate level of Board fees to be paid to Non-Executive Directors, the Committee may also elect  
to receive advice from independent remuneration consultants, if necessary.

Details regarding the composition of the Committee and its main objectives are outlined in the Corporate Governance 
Statement. The Board deems it appropriate that Mr James Packer, who is not an Independent Director of Crown and does  
not receive remuneration from Crown, chair this Committee.

No performance based fees are paid to Non-Executive Directors. Non-Executive Directors are not entitled to participate in 
Crown’s Executive Share Plan. 

Non-Executive Directors are not provided with retirement benefits other than statutory superannuation at the rate prescribed 
under the Superannuation Guarantee legislation. Notwithstanding, the Executive Chairman and Executive Deputy Chairman 
may consider making a payment to a retiring Non-Executive Director having regard to the length of service and contribution  
of the retiring Non-Executive Director and will consider the appropriateness and reasonableness of such payments in light  
of payments made by comparable companies.

Senior Executives

The remuneration structure incorporates a mix of fixed and performance based remuneration. The following section provides 
an overview of the relevant elements of executive remuneration. The summary tables provided later in this Report indicate 
which elements apply to each Senior Executive.

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Details of Senior Executive remuneration structure

Fixed remuneration

The objective of fixed remuneration is to provide a base level of remuneration which is appropriate to the Senior Executive’s 
responsibilities, the geographic location of the Senior Executive and competitive standing in the appropriate market.

Fixed remuneration is therefore determined with reference to available market data, the scope and any unique aspects of  
an individual’s role and having regard to the qualifications and experience of the individual. Crown seeks a range of specialist 
advice to establish the competitive remuneration for its Senior Executives.

Fixed remuneration typically includes base salary and superannuation at the rate prescribed under the Superannuation 
Guarantee legislation, mobile telephone costs and may include, at the election of the Senior Executive, other benefits such  
as a motor vehicle, additional contribution to superannuation, car parking and club membership, aggregated with associated 
fringe benefits tax to represent the total employment cost (TEC) of the relevant Senior Executive to Crown.

Fixed remuneration for the Senior Executives (except the Chief Executive Officer and Managing Director) is reviewed annually 
by the Chief Executive Officer and Managing Director of Crown and is approved by the Executive Chairman and Executive 
Deputy Chairman.

The review process measures the achievement by the Senior Executives of their Key Performance Indicators (KPIs) 
established at the beginning of the financial year (see further below), the performance of Crown and the business in which  
the Senior Executive is employed, relevant comparative remuneration in the market and relevant external advice.

Fixed remuneration for the Chief Executive Officer and Managing Director is reviewed and set annually following consideration 
by the Executive Chairman of his or her performance against his or her annual KPIs.

No Senior Executive received an increase in fixed remuneration following the end of the 2009 financial year.

Any payments relating to redundancy or retirement are as specified in each relevant Senior Executive’s contract of 
employment. For summaries of Senior Executive contracts of employment, see page 49.

Performance based remuneration

The performance based components of remuneration for Senior Executives seek to align the rewards attainable by Senior 
Executives with the achievement of particular annual and long term objectives of Crown and the creation of shareholder value 
over the short and long term. The performance based components which applied to the Senior Executives during the year are 
as follows:

•	 Short Term Incentives (STI);

•	 Long Term Incentives (Gaming LTI); and

•	 an Executive Share Plan (ESP).

Short Term Incentives (STI)

The remuneration of the Senior Executives is linked to Crown’s short term annual performance through a cash-based STI. 
Individuals may be paid an STI following an assessment of the performance of the Crown group in the previous year and the 
performance of the individual against agreed annual KPIs. The employment contracts of some Senior Executives may specify 
an indicative STI subject to the Crown group’s performance and, if applicable, this indicative STI is set out in the summary of 
their employment contract below.

The basis for payment of an STI is the achievement of the Senior Executive’s KPIs established at the beginning of each 
financial year. A key focus is on the achievement of the Crown group’s annual business plan and budget. 

Financial performance objectives (including performance against budgeted normalised EBITDA1) have been chosen as Crown 
considers they are the best way to align performance outcomes with shareholder value. 

Appropriate non-financial performance objectives (such as strategic goals, operational efficiencies and people development) 
are also included in a Senior Executive’s KPIs where they are within that Senior Executive’s sphere of influence and are 
relevant to the Senior Executive’s area of work. These metrics are aligned with the achievement of Crown’s business plan.

1. In this Report, the term “normalised EBITDA” represents EBITDA which has been adjusted to exclude the impact  

of any variance from theoretical win rate on vIP program play and the impact of non-recurring items (where applicable).

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The performance of each Senior Executive against the financial and non-financial KPIs is reviewed on an annual basis. 
Whether KPIs have been achieved is determined by the Chief Executive Officer and Managing Director having regard to  
the operational performance of the business or function in which the Senior Executive is involved and the Chief Executive 
Officer and Managing Director’s assessment of the attainment of the individual’s KPIs.

The Chief Executive Officer and Managing Director reviews performance based remuneration entitlements and determines  
the STI payments in the context of any obligations under an individual’s employment agreement, subject to final approval by 
the Executive Chairman.

The Chief Executive Officer and Managing Director’s eligibility for an STI is determined by the Executive Chairman on behalf  
of the Board.

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In last year’s Report, it was noted that the approval process for STI payments for gaming Senior Executives for the 2008 
financial year had not been completed. Accordingly, the remuneration disclosures set out in this Report include STI payments, 
if any, received by relevant Senior Executives referable to both the 2008 and 2009 financial years.

Long Term Incentive Plan (Gaming LTI)

This incentive was established in June 2005 whilst Crown’s principal gaming businesses were owned by PBL. It was 
introduced following review of long term incentive plans operated by major competitors of the gaming business and as  
a means of retaining and motivating selected executives. The Gaming LTI was initially designed so that selected executives 
would be entitled to a cash bonus where the then “PBL Gaming Division”, comprising Crown Melbourne and Burswood, 
achieved its internal normalised EBITDA targets in financial years 2008, 2009 and 2010.

Selected participating Senior Executives may earn the maximum EBITDA cash bonus apportioned over the financial years 
2008, 2009 and 2010, subject to the achievement of relevant normalised EBITDA targets.

If the normalised EBITDA target is not reached in any financial year, the amount of the EBITDA cash bonus for that year may 
be held over to the following year or until financial year 2010 and will be payable if the total aggregate normalised EBITDA for 
Crown Melbourne and Burswood for all three financial years exceeds the aggregate sum of the normalised EBITDA internal 
targets for the three financial years 2008, 2009 and 2010.

The Chief Executive Officer and Managing Director determines if the normalised EBITDA target for the Australian casinos has 
been met by reference to the audited financial reports of the Crown group and provides the data to the Executive Chairman  
for his ratification.

Crown has achieved the aggregate normalised EBITDA internal targets for Crown Melbourne and Burswood for financial  
year 2009. A cash payment has therefore been made to participating executives referrable to the 2009 financial year.

Of the Senior Executives named in this Report, four participate in the Gaming LTI. Details of potential Gaming LTI cash 
bonuses are as follows:

Senior Executive

Rowen Craigie

David Courtney

Barry Felstead

Robert Turner

Executive Share Plan (ESP)

Maximum  
Amount

$5,000,000

$2,250,000

$1,000,000

$1,250,000

30 June 2008 
(30%)

30 June 2009 
(20%)

30 June 2010 
(50%)

$1,500,000

$675,000

$300,000

$375,000

$1,000,000

$450,000

$200,000

$250,000

$2,500,000

$1,125,000

$500,000

$625,000

Certain Crown executives participate in an ESP which was approved by the PBL Shareholders at the  
1994 Annual General Meeting. 

As explained in last year’s Annual Report, the ESP was varied as part of Crown’s acquisition of the gaming assets of PBL.  
This was to enable executives participating in the ESP (ESP participants) to participate in the PBL Scheme. variations which 
were made to the ESP were set out in detail in last year’s Report.

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The resultant key features of the ESP are as follows:

•	 Crown Directors determine the number of Crown shares to be issued under the Plan;

•	 the total number of shares which can be issued under the ESP is limited to 2% of the issued capital of Crown;

•	 the price payable for each Crown share issued under the ESP is the weighted average share market price over the five 

business days up to and including the date that the offer of Crown shares is accepted;

•	 on completion of each year of service after the issue date, and subject to the performance hurdle summarised below, 
25% of a participating executive’s Crown shares are released from restrictions on transfer, with the loan repayable in  
year five (Expiry Date);

•	 subscription moneys for shares are funded by a loan from Crown that is fully repayable after five years, or earlier, upon 

cessation of employment of the executive;

•	 if a participating executive sells Crown shares which are no longer subject to transfer restrictions before the expiry of the 
five-year period, the executive must pay the issue price for each Crown share towards repayment of the relevant portion  
of the loan;

•	 loan funds provided by Crown to acquire shares are provided on a limited recourse basis; and

•	 interest payable on the loan funds is equal to dividends received on the relevant Crown shares from time to time.

Crown ESP shares are subject to a performance condition, requiring a 7% compound annual growth in the Crown share price 
in order that the relevant portion of shares vest and be released from restrictions under the ESP.

If a share price hurdle is not exceeded, that 25% share parcel remains restricted until the hurdle is exceeded in a subsequent 
anniversary (if the hurdle is ultimately not exceeded, the shares will be transferred back to Crown). 

Determination that hurdles have been achieved will be provided to the Chief Executive Officer and Managing Director by the 
Company Secretary.

Only executives of Crown can participate in the ESP. Mr James Packer has requested that he not participate.

As disclosed in the PBL Scheme Booklet (at page 133), the rules governing the operation of the ESP were varied to enable 
ESP Participants to participate in the PBL Scheme (and continue to participate in the ESP). Subject to the consideration 
election made by the ESP Participants under the PBL Scheme, ESP Participants were issued with Crown shares under the 
PBL Scheme and they had CMH shares transferred to them under the Demerger Scheme. Accordingly, following the PBL 
Scheme, persons not employed in day to day operations of Crown held Crown ESP Shares. This included employees who 
were past or present employees of PBL Media.

On 25 May 2009, Crown announced that it had resolved to partially wind up the ESP as it related to Crown shares held by 
persons who had not been employed in day to day operations of Crown or one of its gaming subsidiaries or joint ventures. 
The decision was made having regard to the underlying objectives of the ESP.

The Directors required that affected ESP Participants repay their loans by 1 June 2009. As the relevant Crown loans were 
limited recourse to the Crown ESP Shares, where the participant could not (or elected not) to repay the loan, Crown was 
authorised to procure the sale of the relevant ESP Shares on the ESP Participant’s behalf in full and final satisfaction of the 
relevant ESP loan.

Prior to the partial wind up, there were 11,029,826 Crown ESP shares on issue held by 63 participants. As a result of the 
partial closure, the number of Crown ESP shares was reduced to 6,073,815 which are held by 31 Crown employees. No new 
issues of Crown ESP shares were made in the 2009 financial year. 

Accordingly, as at the date of this Report a total of 6,073,815 ESP shares are on issue, representing 0.8% of Crown’s capital.

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The Senior Executives who have ESP shares for which loans are still outstanding, or have repaid loans during the year, are as follows:

Senior 
Executive

Issue Date

Issue Price
(per share)

Gaming Senior Executives 

  Number of 
 Crown ESP 
Shares 
Issued1

Released for 
Limitations 
during the
 year %2

Crown ESP 
Loan

Loan 
Outstanding

Number of 
ESP Shares 
for which 
Loan still 
outstanding

Shares Sold 
during Year

Loan 
Expiry Date

30-Oct-06

$9.87

300,000

$2,961,000

30-Oct-06

30-Oct-06

30-Oct-06

30-Oct-06

23-Nov-07

$11.12

1,000,000

$11,115,000

$9.87

300,000

$2,961,000

$10.35

$11.42

$12.15

409,694

$4,242,000

585,276

$6,682,500

292,638

$3,556,875

23-Nov-07

$12.29

1,053,494

$12,946,500

23-Feb-06

30-Aug-06

6-Mar-07

$10.35

$11.42

$12.15

204,847

$2,121,000

263,374

$3,007,125

175,581

$2,134,125

23-Feb-06

$9.87

240,000

$2,368,800

John 
Alexander3

Chris 
Anderson4

Rowen 
Craigie

David 
Courtney

Geoff 
Kleemann4

Barry 
Felstead

30-Aug-06

6-Mar-07

$11.42

$12.15

$11.42

$12.15

117,055

$1,336,500

117,055

$1,422,750

146,319

$1,670,625

117,054

$1,422,750

Robert Turner

30-Aug-06

6-Mar-07

Media Senior Executives 

Martin 
Dalgleish3

23-Feb-06

$9.87

240,000

$2,368,800

Guy Jalland3

23-Feb-06

$9.87

240,000

$2,368,800

Notes: 

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

300,000

1,000,000

300,000

$4,242,000

409,694

$6,682,500

585,276

$3,556,875

292,638

$12,946,500

1,053,494

$2,121,000

204,847

$3,007,125

263,374

$2,134,125

175,581

NIL

NIL

NIL

NIL

NIL

NIL

NIL

N/A

N/A

N/A

30-Oct-11

30-Oct-11

23-Nov-12

23-Nov-12

23-Feb-11

30-Aug-11

6-Mar-11

NIL

NIL

240,000

N/A

$1,336,500

117,055

$1,422,750

117,055

$1,670,625

146,319

$1,422,750

117,054

NIL

NIL

NIL

NIL

30-Aug-11

6-Mar-12

30-Aug-11

6-Mar-12

NIL

NIL

NIL

NIL

240,000

240,000

N/A

N/A

1. The fair value per Crown ESP share for each allotment date under the ESP is as follows: 23 February 2006: $1.92; 30 August 2006: $2.51;  

6 March 2007: $3.72; 21 June 2007: $3.77. The relevant allotment dates for the shares subject to shareholder approval in 2006: 
Mr Alexander’s 300,000 ESP Shares, Mr Anderson’s 300,000 ESP Shares and Mr Craigie’s 350,000 ESP Shares is 23 February 2006; 
Mr Alexander’s 1,000,000 ESP Shares and Mr Craigie’s 500,000 ESP Shares, 30 August 2006. The relevant allotment dates for the shares 
subject to shareholder approval in 2007: Mr Craigie’s 250,000 ESP Shares, 6 March 2007; Mr Craigie’s 900,000 ESP Shares, 21 June 2007.

2. None of the executives met their share price performance hurdles during FY09. The consequence of this is that no issued ESP Shares were 
released from limitations under the Plan Rules. These ESP Shares shall remain subject to the limitations under the Plan Rules unless or until 
the share price performance condition is satisfied on a subsequent anniversary and the executive remains an employee of the Crown Group.

3. Mr Alexander’s ESP Shares, Mr Dalgleish’s ESP Shares and Mr Jalland’s ESP Shares were included in the partial wind up announced on  
25 May 2009 and referred to above. Participants elected not to repay relevant loans and therefore Crown was authorised to procure the 
sale of these shares.

4. ESP Shares held by Mr Anderson and Mr Kleemann were sold by Crown upon the cessation of employment of the relevant participant and 

in accordance with the terms of the ESP.

As described above, all securities received by selected Senior Executives under the ESP are subject to performance hurdles. 
There have been no issues of securities as part of remuneration that are not subject to performance conditions.

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Relationship between policy and performance

As detailed above, various elements of Crown’s remuneration policy are linked to company performance, either by requiring 
the achievement of a predetermined share price or level of normalised EBITDA. In summary:

•	 An STI may be payable if Crown achieves its budgeted financial objectives and where an individual achieves his or her 

annual KPIs, assessed using a combination of financial and non-financial measures;

•	 The Gaming LTI may be payable where Crown Melbourne and Burswood achieve predetermined normalised EBITDA 

targets in financial years 2008, 2009 and 2010; and

•	 The	terms	of	the	ESP	include	share	price	performance	hurdles.

This year, normalised EBITDA generated by Crown Melbourne and Burswood, Crown’s wholly owned Australian casinos,  
grew by 4.8%. The compound average normalised EBITDA growth for Crown’s wholly owned Australian casinos for the five 
year period commencing from financial year 2004 through to financial year 2009 was 16.2%. Please note that during the 2004 
financial year Crown Melbourne was the only gaming asset of PBL. Burswood was acquired by PBL in September 2004  
and the impact of the Burswood acquisition on normalised EBITDA growth is included within the five year number above.

Prior to the PBL Scheme, PBL operated a mix of gaming and media businesses. Crown is now a stand alone gaming and 
entertainment business. A five year earnings per share comparison of the two different companies would not produce a 
meaningful result.

Crown was admitted to the official list of the ASX on 3 December 2007. Accordingly, the table below sets out information 
about movements in shareholder wealth for the years ended 30 June 2008 and 30 June 2009.

Share price at start of period

Share price at end of period

Full year dividend 

Basic/diluted earnings per share4 

Year ended 
30 June 2008

Year ended 
30 June 2009

–1

$9.29

54 cents2

54.58 cps

$9.29

$7.27

37 cents3

33.74 cps

  Notes: 
1. 
2. 
3. 
4. 

As Crown was admitted to the official list of the ASX on 3 December 2007, there is no trading data for 1 July 2007. 
Franked to 40% with unfranked component made up of conduit foreign income. 
Franked to 60% with none of the unfranked component comprising conduit foreign income. 
Excluding the effect of discontinued operations and specific items.

As each financial year passes, the additional data will provide a more meaningful comparison.

Policy on entering into transactions in associated products which limit economic risk

Crown’s policy on Directors and Senior Executives entering into transactions in associated products which limit economic risk 
is described earlier in the Corporate Governance Statement.

Remuneration details for Non-Executive Directors and Senior Executives

Non-Executive Directors

Non-Executive Directors are entitled to a base fee of $100,000 per annum for acting as a Director of Crown.

Non-Executive Directors acting on the Board of Crown Melbourne Limited are entitled to receive a further fee of $60,000 per annum.

Non-Executive Directors of Crown are entitled additional fees if they act as either chair or member of an active Board 
Committee (the Audit & Corporate Governance Committee, the Occupational Health, Safety & Environment Committee  
or the Risk Management Committee):

•	 $20,000 per annum for acting as Chair of an active Board Committee; or

•	 $10,000 per annum for acting as a member of an active Board Committee.

All Directors are entitled to complimentary privileges at Crown Melbourne and Burswood facilities.

In accordance with Crown’s constitution, Non-Executive Directors’ fees are determined within an aggregate Non-Executive 
Directors’ fee cap of $1,000,000 per annum.

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Senior Executives

Senior Executives are employed under service agreements with Crown or a business of the Crown group. Common features 
to these service agreements include (unless noted otherwise):

•	 an annual review of the executive’s fixed remuneration, with any increases at the discretion of the Chief Executive Officer 
and Managing Director or Executive Chairman and dependent on Crown’s financial performance, the individual’s KPI 
performance and market changes;

•	 competitive performance based incentive payments annually and in the long term, dependent upon Crown achieving its 

objectives and the Senior Executive achieving his or her KPIs;

•	 Crown may ask the executive to act as a Director of a member or associate of the Crown group for no additional 

remuneration;

•	 a prohibition from gambling at any property within the Crown group during the term of employment and for three months following 
termination and a requirement that the executive maintains licences required and issued by relevant regulatory authorities 
(such as the victorian Commission for Gambling Regulation and the Western Australian Gaming and Wagering Commission);

•	 where post-employment restraints apply, a restraint covering, amongst other things, competitive activities to those of the 

Crown group. Restraint periods vary and have been noted in each instance;

•	 where an employment agreement is terminated by Crown, notice may be given in writing or payment may be made (wholly 

or partly) in lieu of notice; 

•	 all contracts may be terminated without notice by Crown for serious misconduct; and

•	 All Senior Executives are entitled to complimentary privileges at Crown Melbourne and Burswood facilities.

Specific details of each Senior Executive’s contract of employment are summarised below. Where a Senior Executive has had 
more than one contract of employment during the year the most recent contract is listed and changes from the previous 
contract are noted. Where a key clause in a Senior Executive’s contract has been updated the change is noted. The 
summaries should be read in conjunction with the Remuneration Policy above.

James D Packer

Position

Remuneration

– base salary

Executive Chairman

The Executive Chairman, Mr Packer does not receive any remuneration for his 
services to Crown. Mr Packer acts as a Director of Melco Crown Entertainment Ltd,  
a company in which Crown has a significant investment. Mr Packer does not receive 
a fee from Crown for these services.

–  non-monetary benefits and other

Complimentary privileges at Crown Melbourne and Burswood facilities. 

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John H Alexander

Current Position

Fixed Remuneration

– base salary

– superannuation

Executive Deputy Chairman (commenced 1 December 2007):
Mr Alexander currently has a five year employment agreement with Crown Limited 
which is due to expire in December 2012.

$1,486,255 per annum, from 1 December 2007.

Compulsory Superannuation Guarantee Contributions up to the maximum 
contribution base, equating to $13,745 per annum.

–  non-monetary benefits and other

Complimentary privileges at Crown Melbourne and Burswood facilities and  
mobile telephone. 

Performance based remuneration Not applicable.

2009 Percentage breakdown  
of remuneration

Post employment benefits

Post-employment restraint

Termination

Fixed remuneration1

79%

Nil

STI

0%

LTI

21%

Crown may impose a restraint for the five year term of Mr Alexander’s employment 
agreement up to 30 November 2012.

– by the Senior Executive

12 months’ notice.

– by Crown

Termination benefits

Payments made prior to 
commencement
Directors’ Fees

Other

12 months’ notice without cause; one months’ notice for performance issues; three 
months’ notice due to incapacity.
Nil

Nil

Nil

Mr Alexander was a member of the Executive Share Plan summarised on page 45. 
Mr Alexander’s ESP Shares were included in the partial wind up announced on  
25 May 2009 and referred to earlier in this Report. Mr Alexander elected not to  
repay relevant loans and therefore Crown was authorised to procure the sale of his 
ESP shares.

1. Includes voluntary and compulsory superannuation.

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Rowen B Craigie

Current Position

Fixed Remuneration

– base salary

– superannuation

–  non-monetary benefits and other

Performance based remuneration

– STI

– LTI

2009 Percentage breakdown  
of remuneration

Post employment benefits

Post-employment restraint

Chief Executive Officer and Managing Director (commenced 1 December 2007): 
Mr Craigie has a five year employment agreement with Crown Limited which is due to 
expire in December 2012. 

$2,986,255 per annum, from 1 December 2007.

Compulsory Superannuation Guarantee Contributions up to the maximum 
contribution base, equating to $13,745 per annum.

Complimentary privileges at Crown Melbourne and Burswood facilities. Mobile 
telephone, salary sacrifice arrangements for motor vehicle and superannuation.
Discretionary up to a maximum of $2,000,000 of which up to a maximum of 
$1,000,000 is assessed by the Executive Chairman based on the achievement of 
personal KPIs. A further $1,000,000 may be paid at the discretion of the Crown 
Board if Crown’s performance substantially exceeds that set out in Crown’s business 
plan and represents an exemplary outcome.

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Subject to achieving internal normalised EBITDA targets in FY08, FY09 and FY10, 
Mr Craigie is eligible to receive up to $5,000,000 (30% for FY08, 20% for FY09 and 
50% for FY10). See further page 45.
Fixed remuneration1

STI

LTI

48%

Nil

0%

52%

Crown may impose a restraint for various periods up to 36 months. Depending on the 
circumstances, Mr Craigie may be entitled to an additional payment in consideration 
for the restraint. Mr Craigie may also be paid an amount equivalent to his monthly 
fixed remuneration for any period during which a restraint applies.

Termination

– by the Senior Executive

12 months’ notice.

– by Crown

Termination benefits

Payments made prior to 
commencement
Directors’ Fees

Other

12 month’s notice without cause; one month’s notice for performance issues 
(following least three months’ notice to improve); three months’ notice for incapacity.
Provided that Mr Craigie complies with any restraints imposed on him, if Mr Craigie 
terminates his employment with Crown or Crown terminates his employment for 
serious misconduct, performance issues or incapacity, he will be entitled to any 
unpaid Gaming LTI. Thereafter, Mr Craigie will cease to be involved in the Gaming LTI.  
If Crown terminates Mr Craigie’s employment without cause, Mr Craigie will be entitled 
to any unpaid Gaming LTI. Mr Craigie may also elect either to end his participation in 
the Gaming LTI and receive a payment of 24 months’ fixed remuneration at the date 
of termination or continue a pro-rated participation (calculated by reference to the 
number of completed months in the five year term) in the Gaming LTI.
Nil

Nil

A summary of the terms of the Executive Share Plan to which Mr Craigie is a member 
is set out on page 45.

1. Includes voluntary and compulsory superannuation.

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David G Courtney

Current Position

Fixed Remuneration

– base salary

– superannuation

–  non-monetary benefits and other

Performance based remuneration

– STI

– LTI

2009 Percentage breakdown  
of remuneration

Post employment benefits

Post-employment restraint

Chief Executive Officer, Crown Melbourne Limited (from 6 March 2007): 
Mr Courtney’s current employment contract with Crown Melbourne commenced  
on 6 March 2007 and expires on 5 March 2012.

$1,301,255 per annum, from 1 July 2008.

Compulsory Superannuation Guarantee Contributions up to the maximum 
contribution base, equating to $13,745 per annum.

Complimentary privileges at Crown Melbourne and Burswood facilities. Mobile 
telephone and salary sacrifice arrangements for motor vehicle and superannuation.
Discretionary STI based on the performance of Crown Limited and the achievement 
of personal KPIs.

Subject to achieving internal normalised EBITDA targets in FY08, FY09 and FY10, 
Mr Courtney is eligible to receive up to $2,250,000 (30% for FY08, 20% for FY09 and 
50% for FY10). See further page 45.
Fixed remuneration1

STI

LTI

47%

Nil

13%

40%

Crown may impose various restraint periods up to a period of 36 months post 
employment. Depending on the circumstances, Mr Courtney may be entitled to an 
additional payment in consideration for the restraint. Mr Courtney may also be paid  
an amount equivalent to his monthly total employment cost for any period during 
which a restraint applies.

Termination

– by the Senior Executive

12 months’ notice.

– by Crown

Termination benefits

Payments made prior to 
commencement
Directors’ Fees

Other

12 months’ notice without cause; one months’ notice for performance issues; three 
months’ notice due to incapacity.
Provided that Mr Courtney complies with any restraints imposed on him, if 
Mr Courtney terminates his employment with Crown Melbourne or Crown Melbourne 
terminates his employment for serious misconduct, performance issues or incapacity, 
he will be entitled to any unpaid Gaming LTI. Thereafter, Mr Courtney will cease to  
be involved in the Gaming LTI. If Crown Melbourne terminates Mr Courtney’s 
employment without cause, Mr Courtney will be entitled to any unpaid Gaming LTI. 
Mr Courtney may also elect either to end his participation in the Gaming LTI and 
receive a payment of 24 months’ total employment cost or continue a pro-rated 
participation (calculated by reference to the number of completed months in the  
five year term) in the Gaming LTI.
Nil

Nil

A summary of the terms of the Executive Share Plan to which Mr Courtney is a 
member is set out on page 45.

1. Includes voluntary and compulsory superannuation.

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Barry J Felstead

Current Position

Fixed Remuneration

– base salary

– superannuation

Chief Executive Officer, Burswood Limited (from 6 March 2007): 
Mr Felstead’s current employment contract with Burswood commenced on  
6 March 2007 and expires on 5 March 2012.

$721,255 per annum, from 1 July 2008.

Compulsory Superannuation Guarantee Contributions up to the maximum 
contribution base, equating to $13,745 per annum.

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–  non-monetary benefits and other

Complimentary privileges at Crown Melbourne and Burswood facilities. Mobile 
telephone and salary sacrifice arrangements for motor vehicle and superannuation.

Performance based remuneration

– STI

– LTI

2009 Percentage breakdown  
of remuneration

Post employment benefits

Post-employment restraint

Mr Felstead is entitled to one annual economy airfare between Perth and Melbourne 
for himself and his family.
Discretionary STI based on the performance of Crown and the achievement  
of personal KPIs.

Subject to achieving internal normalised EBITDA targets in FY08, FY09 and FY10 
Mr Felstead is eligible to receive up to $1,000,000 (30% for FY08, 20% for FY09 and 
50% for FY10). See further page 45.
Fixed remuneration1

STI

LTI

52%

Nil

14%

34%

Crown may impose various restraint periods up to a period of 36 months post 
employment. Depending on the circumstances, Mr Felstead may be entitled to an 
additional payment in consideration for the restraint. Mr Felstead may also be paid  
an amount equivalent to his monthly Fixed Remuneration for any period during which 
a restraint applies.

Termination

– by the Senior Executive

12 months’ notice.

– by Crown

Termination benefits

Payments made prior to 
commencement
Directors’ Fees

Other

12 months’ notice without cause; one months’ notice for performance issues; three 
months’ notice due to incapacity.
Provided that Mr Felstead complies with any restraints imposed on him, if Mr Felstead 
terminates his employment with Burswood or Burswood terminates his employment 
for serious misconduct, performance issues or incapacity, he will be entitled to any 
unpaid Gaming LTI. Thereafter, Mr Felstead will cease to be involved in the Gaming 
LTI. If Burswood terminates Mr Felstead’s employment without cause, Mr Felstead  
will be entitled to any unpaid Gaming LTI. Mr Felstead may also elect either to end  
his participation in the Gaming LTI and receive a payment of 24 months’ fixed 
remuneration or continue a pro-rated participation (calculated by reference to the 
number of completed months in the five year term) in the Gaming LTI.
Nil

Nil

A summary of the terms of the Executive Share Plan to which Mr Felstead is  
a member is set out on page 45.

1. Includes voluntary and compulsory superannuation.

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REMUNE RATION REP OR T  co n ti n ued

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Robert F Turner

Current Position

Fixed Remuneration

– base salary

– superannuation

–  non-monetary benefits and other

Performance based remuneration

– STI

– LTI

2009 Percentage breakdown  
of remuneration

Post employment benefits

Post-employment restraint

Chief Financial Officer (from 20 October 2008): 
Mr Turner commenced employment with Crown Limited on 12 December 2007.  
His previous position was Executive vice President, International Business.  
His current employment contract commenced on 6 March 2007 and expires  
on 5 March 2012.

$806,255 per annum, from 1 February 2008.

Compulsory superannuation guarantee contributions up to a maximum contribution 
base, equating to $13,745 per annum.

Complimentary privileges at Crown Melbourne and Burswood facilities. Mobile 
telephone and salary sacrifice arrangements for motor vehicle and superannuation.
Discretionary STI based on the performance of Crown and the achievement  
of his KPIs.

Subject to achieving internal normalised EBITDA targets in FY 08, FY 09 and FY 10, 
Mr Turner is eligible to receive up to $1,250,000 (30% for FY 08, 20% for FY 09 and 
50% for FY 10). See further page 45.
Fixed remuneration1

STI

LTI

59%

Nil

0%

41%

Crown may impose various restraint periods up to a period of 36 months post 
employment. Depending on the circumstances, Mr Turner may be entitled to an 
additional payment in consideration for the restraint. Mr Turner may also be paid  
an amount equivalent to his monthly Fixed Remuneration for any period during which 
a restraint applies.

Termination

– by the Senior Executive

12 months’ notice.

– by Crown

Termination benefits

Payments made prior to 
commencement
Directors’ Fees

Other

12 months notice without cause; one month’s notice for performance issues 
(following three months notice to improve); three months notice due to incapacity.
Provided that Mr Turner complies with any restraints imposed on him, if Mr Turner 
terminates his employment with Crown or Crown terminates his employment for 
serious misconduct, performance issues or incapacity, he will be entitled to any 
unpaid Gaming LTI. Thereafter, Mr Turner will cease to be involved in the Gaming LTI. 
If Crown terminates Mr Turner’s employment without cause, Mr Turner will be entitled 
to any unpaid Gaming LTI. Mr Turner may also elect either to end his participation in 
the Gaming LTI and receive a payment of 24 months fixed remuneration or continue  
a pro rata participation (calculated by reference to the number of completed months 
in the five-year term) in the Gaming LTI.
Nil

Nil

A summary of the terms of Executive Share Plan to which Mr Turner is a member  
is set out on page 45.

1. Includes voluntary and compulsory superannuation.

54

 
Remuneration tables
As explained in the 2008 Annual Report in relation to the 2008 financial year, Crown was required under Australian Accounting 
Standards to report a full 12 month period of remuneration of each relevant Senior Executive, notwithstanding that Crown had 
only traded since December 2007. To assist shareholders, disclosures were split between remuneration earned whilst a 
member of the PBL consolidated group (now CMH) and remuneration earned from Crown. We have maintained this treatment 
for the comparative figures included in this year’s remuneration tables.

Non-Executive Directors

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Short Term Benefits

Post Employ-
ment Benefits

Long Term  
Incentives

Financial 
Year
2009

Salary & 
Fees
44,250

Non- 
Mon-
etary
 – 

Term-
ination  
Benefits
 – 

Super
37,500

Other
 30,3065 

 Cash 
Based
 – 

 Equity 
Based
–

Total
112,056 

2008 Fees from CMH 

572,200

8,784

45,000

5,000,000

(until 30 November 2007)

Fees from Crown 
(from 1 December 2007)

33,334

 –

30,250

 –

Annual Total

605,534

8,784

75,250

5,000,000

Christopher Anderson1
Non-Executive Director

Ben Brazil2
Non-Executive Director

Christopher Corrigan
Non-Executive Director

2009 Annual Total

2008

2009

2008 Fees from CMH 

(until 30 November 2007)

Fees from Crown
(from 1 December 2007)

Annual Total

Rowena Danziger4
Non-Executive Director

2009

2008 Fees from CMH 

(until 30 November 2007)

Fees from Crown 
(from 1 December 2007)

Annual Total

Geoffrey Dixon
Non-Executive Director

2009

2008 Fees from CMH 

(until 30 November 2007)

Fees from Crown 
(from 1 December 2007)

Annual Total

Ashok Jacob
Non-Executive Director

Michael Johnston
Non-Executive Director

David Lowy
Non-Executive Director

2009

2008

2009

2008

2009

2008 Fees from CMH (until 30 
November 2007)

Fees from Crown  
(from 1 December 2007)

Annual Total

Chris Mackay3
Non-Executive Director

2009

2008 Fees from CMH 

(until 30 November 2007)

Fees from Crown 
(from 1 December 2007 
to 7 March 2008)

1,195

 –

100,000

46,110

58,333

104,443

200,000

83,836

105,000

188,836

120,000

50,301

74,311

124,612

 –

 –

 –

 –

100,000

46,110

68,478

114,588

 –

50,301

29,831

Annual Total

80,132

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

9,000

4,150

4,500

8,650

 –

3,521

2,700

6,221

10,800

4,806

5,733

10,539

 –

 –

 –

 –

9,000

8,579

6,163

14,742

 –

4,527

2,685

7,212

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

–

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

–

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

–

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

–

 –

 –

 –

 –

 –

 –

 –

–

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

–

60,362

5,686,346

62,729

126,313

123,091

5,812,659

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

1,195

 –

109,000

50,260

62,833

113,093

200,000

87,357

107,700

195,057

130,800

55,107

80,044

135,151

–

–

–

 –

109,000

54,689

74,641

129,330

–

54,828

32,516

87,344

55

 
REMUNE RATION REP OR T  co n ti n ued

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Richard Turner4
Non-Executive Director

Notes:

Short Term Benefits

Post Employ-
ment Benefits

Long Term  
Incentives

Financial 
Year

2009

2008 Fees from CMH 

(until 30 November 2007)

Fees from Crown 
(from 1 December 2007)

Annual Total

Salary & 
Fees

180,000

79,644

105,000

184,644

Non- 
Mon-
etary

 –

 –

 –

 –

Super

 –

 –

1,350

1,350

Term-
ination  
Benefits

Other

 Cash 
Based

 Equity 
Based

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

 –

Total

180,000

79,644

106,350

185,994

1. Mr Anderson resigned as a Non-Executive Director of Crown 2 April 2009. Remuneration disclosures made up to 30 November 2007 for 

the financial year ended 30 June 2008 represent amounts earned in an executive capacity as until that time, Mr Anderson was an Executive 
Director of PBL. As a PBL executive, Mr Anderson was entitled to participate in the Executive Share Plan. AASB 2 “Share-Based Payment” 
requires an entity to recognise the effects of modifications that increase the total fair value of the share-based payment arrangement or are 
otherwise beneficial to the employee. As the modification to the ESP post Demerger reduced the total fair value of the share-based 
payment arrangement, Crown continued to account for the services rendered as consideration for the equity instruments granted as if the 
modification had not occurred. The allocation of the expenses for Equity Based payments was 100 percent of the ESP expense to 30 
November 2007, 75 percent from 30 November 2007 (from 30 November 2007, 25 percent of the expense recorded by CMH). 
Mr Anderson’s ESP shares were sold as part of the partial wind up of the Executive Share Plan announced 25 May 2009.

2. Mr Brazil was appointed as a Director of Crown on 26 June 2009. The remuneration stated represents an accrued entitlement to Directors’ 

fees for the four day period ending 30 June 2009.

3. Mr Mackay resigned as a Director of Crown on 7 March 2008.

4. Mrs Danziger and Mr Turner each receive Directors’ fees of $60,000 per annum for their participation on the Crown Melbourne Limited Board. 

5. Executives that elected to receive the PBL Scheme standard consideration were provided with a loan (at an interest rate of 9 per cent)  

to compensate the relevant executive for the net capital gain incurred on the cash component of the consideration. The loan was provided  
to executives on similar repayment terms to the ESP loan and secured by their ESP shares.

56

 
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Total 
– 

– 

Senior Executives

Short Term Benefits

Post Employment 
Benefits4

Long Term 
Incentives

Financial Year
2009

James Packer  
Executive Chairman

Salary & 
Fees
 – 

 – 

1,486,255

Non – 
Mon-
etary
 – 

 – 

 – 

2,488,764

33,414

870,904

 – 

2008

2009

2008 Salary from CMH  
(until 30 Nov 2007)

Salary from Crown  
(from 1 Dec 2007)

% of  
max  
STI
 – 

STI3
 – 

Term-
ination  
Benefits
 – 

Super
 – 

Other 
 – 

 Cash 
Based5
 – 

 Equity 
Based6
 – 

 – 

 – 

 – 

13,745

 –  102,1267

120,000 15,000,000

9,847

 – 

129,847 15,000,000

 – 

 – 

– 

 – 

 – 

 – 

 – 

399,271

2,001,397

323,396 17,965,574

 – 

336,078

1,216,829

– 

659,474 19,182,403

 – 

 – 

 – 

 – 

– 

 – 

 – 

 – 

 – 

 – 

 – 

– 

 – 

 – 

100,000

41,667

Annual Total

3,359,668

33,414

2009

2,900,000

 – 

2008 Salary from CMH

867,047

9,380

(until 30 Nov 2007)

Salary from Crown
(from 1 Dec 2007)

1,666,639

24,580 1,200,000

60%

55,998

Annual Total

2,533,686

33,960 1,200,000

60% 

97,665

2009

1,265,528

 – 

368,000

70%

49,472

2008 Salary from CMH

497,953

141

 – 

 – 

5,471

(until 11 Dec 2007)

Salary from Crown
(from 12 Dec 2007)

664,329

188

500,000

100%

28,176

Annual Total

1,162,282

329

500,000

100%

33,646

2009

721,255

7,061

205,800

70%

13,745

2008 Salary from CMH 
(until 11 Dec 2007)

Salary from Crown 
(from 12 Dec 2007)

347,812

10,731

 – 

 – 

7,049

331,868

10,223

280,000

100%

6,564

Annual Total

679,680

20,954

280,000

100%

13,613

 – 

 – 

 – 

– 

 – 

 – 

 – 

– 

 – 

 – 

 – 

– 

 –  1,666,667 1,562,500

6,229,167

 – 

 – 

654,966

1,573,060

 –  1,666,667

680,651

5,294,535

–  1,666,667 1,335,617

6,867,595

 – 

 – 

750,000

352,688

2,785,688

 – 

157,502

661,067

 – 

750,000

195,186

2,137,879

– 

 – 

 – 

750,000

352,688

2,798,946

333,333

147,750

1,428,944

 – 

65,982

431,574

 – 

333,333

81,768

1,043,756

– 

333,333

147,750

1,475,330

John Alexander  
Executive  
Deputy Chairman

Rowen Craigie  
Chief Executive  
Officer & Managing 
Director

David Courtney  
Chief Executive  
Officer Crown 
Melbourne Limited

Barry Felstead  
Chief Executive 
Officer  
Burswood Limited

Geoff Kleemann1 
Chief Financial Officer

2009

2008 Salary from CMH 
(until 21 Dec 2007)

Salary from Crown 
(from 21 Jan 2008)

505,959

888,384

 – 

 – 

 – 

 – 

 – 

 – 

33,682

175,000

 27,0147

82,986

3,975,000 176,796

292,336

 – 

200,000

73%

24,440

 – 

 – 

 – 

 – 

 – 

88,373

830,028

54,917

5,178,083

60,283

577,059

Annual Total

1,180,720

806,255

– 

 – 

200,000

73% 

107,426

3,975,000 176,796

– 

115,200

5,755,142

 – 

 – 

13,745

 – 

 – 

416,667

163,438

1,400,105

7,685,252

7,061

573,800

224,389

175,000 129,140 3,166,667 2,714,020 14,675,329

Robert Turner2
Chief Financial Officer

2009

2009 TOTALS

Notes:

1. Mr Kleemann ceased in the role as Chief Financial officer on 19 October 2008. Remuneration disclosures are made for the period to  

7 April 2009 when Mr Kleemann ceased employment with Crown.

2. Mr Turner commenced in his role as Chief Financial Officer from 20 October 2008. Notwithstanding, remuneration disclosures are made  
in respect of the full year ending 30 June 2009. No comparative disclosures are made for the financial year ended 30 June 2008 on the 
basis that Mr Turner was not a member of Crown’s key management personnel at that time.

3. As at the date of the 2008 Annual Report, STI payments for gaming Senior Executives for the 2008 financial year had not been made.  

STI payments attributable to the 2008 financial year were subsequently paid and have been added to the 2008 disclosures above.

4. Long service leave accrued balances have increased during the financial year ended 30 June 2009 for the following Senior Executives: 

Mr Alexander $24,984, Mr Craigie, $49,967, Mr Courtney $21,905, Mr Felstead $11,668, Mr Turner $13,657.

5. Representing average Gaming LTI cash bonus payments for FY08, FY09 and FY10.

57

 
REMUNE RATION REP OR T  co n ti n ued

6. AASB 2 “Share-Based Payment” requires an entity to recognise the effects of modifications that increase the total fair value of the 

share-based payment arrangement or are otherwise beneficial to the employee. As the modification to the ESP post Demerger reduced the 
total fair value of the share-based payment arrangement, Crown continues to account for the services rendered as consideration for the 
equity instruments granted as if the modification had not occurred. The allocation of the expenses for Equity Based payments to the Senior 
Executives made following the PBL Scheme and the Demerger Scheme was consistent with the split of the PBL ESP Loan as between 
CMH and Crown Limited (25 percent/75 percent).

7. Executives that elected to receive the PBL Scheme standard consideration were provided with a loan (at an interest rate of 9 per cent) to 

compensate the relevant executive for the net capital gain incurred on the cash component of the consideration. The loan was provided to 
executives on similar repayment terms to the ESP loan and secured by their ESP shares.

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Media senior executives

Mr Dalgleish and Mr Jalland were not part of the Crown group during the financial year ended 30 June 2009. Accordingly, only 
comparative data is provided.

Short Term Benefits

Post Employment 
Benefits

Long Term 
Incentives

Financial Year
2009

Salary & 
Fees
–

Non – 
Mon-
etary
–

% of  
max  
STI
–

STI
–

Termi-
nation  
Benefits
–

Other 
Long Term 
Benefits
–

Super
–

2008  264,890 

 8,733 

 41,918 

 100 

10,217  2,848,000 

2009

–

–

–

–

–

–

 – 

–

 Cash 
Based
–

 Equity 
Based1
–

Total 
–

 – 

 48,289 

 3,222,048 

–

–

–

2008 (until  
21 Dec 07)

 903,346 

 –   1,000,000 

 100 

12,868  4,275,000 

 211,471 

 – 

 115,200 

 6,517,885

Martin Dalgleish 
Chief Executive 
Officer 
New Media, PBL
Guy Jalland 
PBL Group General 
Counsel and Company 
Secretary

Notes: 

1. AASB 2 “Share-Based Payment” requires an entity to recognise the effects of modifications that increase the total fair value of the 

share-based payment arrangement or are otherwise beneficial to the employee. As the modification to the ESP post Demerger reduced  
the total fair value of the share-based payment arrangement, CMH continues to account for the services rendered as consideration for the 
equity instruments granted as if the modification had not occurred. The allocation of the expenses for Equity Based payments to the Senior 
Executives made following the PBL Scheme and the Demerger Scheme was consistent with the split of the PBL ESP Loan as between 
CMH and Crown Limited (25 percent/75 percent).

Signed in accordance with a resolution of the Directors.

J D Packer 
Director

R B Craigie 
Director

Melbourne, 16th day of September, 2009

58

 
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59

 
 
REMUNE RATION REP OR T  co n ti n ued

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60

 
 
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61

 
 
REMUNE RATION REP OR T  co n ti n ued

Directors’ Declaration

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In accordance with a resolution of the Directors, we declare as follows:

1. In the Directors’ opinion:

a)  there are reasonable grounds to believe that Crown will be able to pay its debts as and when they become due and 

payable; and

b)  the financial statements and notes are in accordance with the Corporations Act, including:

(i)  Section 296 (compliance with accounting standards); and

(ii)  Section 297 (true and fair view); and

2. The Directors have received declarations in relation to Crown’s financial statements for the financial year ended 30 June 

2009, by its Chief Executive Officer and its Chief Financial Officer in accordance with section 295A of the Corporations Act.

In the opinion of Directors, at the date of this declaration, there are reasonable grounds to believe that the members of the 
Closed Group identified in Note 33 of the Financial Report will be able to meet any obligations or liabilities to which they are  
or may become subject to, by virtue of the Deed of Cross Guarantee.

On behalf of the Board

J D Packer 
Director

R B Craigie 
Director

Melbourne, 16th day of September, 2009

62

 
Financial Report

CONTENTS

Income Statement 

Balance Sheet 

Cash Flow Statement 

Statement of Recognised Income and Expense 

Notes to the Financial Statements 

64

65

66

67

68

X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X

63

FINANCIAL REP OR T  200 9

Income Statement

For the year ended 30 June 2009

I

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S

t
a
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m
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n
t

Continuing operations

Revenues  

Other income 

Expenses  

Share of profits of associate and  
joint venture entities 

Profit/(loss) from continuing operations  
before income tax and finance costs 

CoNSolIdatEd 

PaRENt ENtIty 

Note 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

2,299,624 

2,215,930 

337,000 

175,000

3 

3 

3 

152 

701 

(3,112,178) 

(1,807,029) 

– 

– 

– 

–

(3,168,144)

–

2,10 

(125,959) 

(21,999) 

(938,361) 

387,603 

337,000 

(2,993,144)

Finance costs 

3 

(187,412) 

(132,989) 

– 

–

Profit/(loss) from continuing operations  
before income tax 

(1,125,773) 

254,614 

337,000 

(2,993,144)

Income tax (expense)/benefit  

2, 5 

(72,131) 

(117,608) 

7,631 

462

Profit/(loss) from continuing operations  
after income tax 

discontinued operations

Profit/(loss) from discontinued operations  
after income tax 

Net profit/(loss) for the period attributable  
to members of the parent 

(1,197,904) 

137,006 

344,631 

(2,992,682)

2 

– 

3,409,426 

– 

–

(1,197,904) 

3,546,432 

344,631 

(2,992,682)

The above income statement should be read in conjunction with the accompanying notes.

Earnings per share (EPS) 

Basic EPS(i) 

Diluted EPS(i) 

dividends per share 

Final dividend proposed  

Current year interim dividend paid  

2009 

2008

Cents 
per share 

Cents 
per share

(166.89) 

(166.89) 

514.57

514.57

19.0 

18.0 

29.0

25.0

29 

4 

(i)  Basic/diluted EPS excluding the effect of discontinued operations is (166.89) cps (2008: 19.88). 

Basic/diluted EPS excluding the effect of discontinued operations and significant items is 33.74 cps (2008: 54.58). 

64

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet

At 30 June 2009

Current assets

  Cash and cash equivalents 

  Trade and other receivables 

Inventories 

  Prepayments 

  Other assets 

  total current assets 

Non-current assets

  Receivables 

  Available-for-sale financial assets 

  Other financial assets 

 Investments in associates accounted  
for using the equity method 

  Property, plant and equipment 

  Licences 

  Other intangible assets 

  Deferred tax assets 

  Prepaid casino tax 

  total non-current assets 

total assets 

Current liabilities

  Trade and other payables 

Interest-bearing loans and borrowings 

  Current income tax liabilities 

  Provisions 

  Other financial liabilities 

  total current liabilities 

Non-current liabilities

  Other payables 

Interest-bearing loans and borrowings 

  Deferred tax liabilities 

  Provisions  

  Other financial liabilities 

  total non-current liabilities 

total liabilities 

Net assets 

Equity 

Equity attributable to equity holders of the parent

  Contributed equity 

  Reserves 

  Retained earnings/(accumulated losses) 

total equity 

7 

8 

9 

7 

11 

12 

10 

13 

14 

15 

5 

9 

17 

18 

19 

20 

17 

18 

5 

19 

20 

21 

22 

22 

CoNSolIdatEd 

PaRENt ENtIty 

Note 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

24 

515,498 

2,362,964 

928 

144,657 

146,524 

15,293 

12,335 

– 

11,835 

11,253 

70 

– 

– 

– 

– 

687,783 

2,532,646 

928 

–

–

–

–

–

–

l

B
a
a
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c
e
S
h
e
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t

236,837 

36,728 

– 

443,202 

507,489 

558,268 

178,160

– 

–

– 

8,645,201 

8,645,201

1,144,735 

1,130,164 

2,134,630 

1,854,977 

659,397 

182,336 

140,138 

68,371 

666,868 

189,301 

136,573 

71,106 

– 

– 

– 

– 

–

–

–

–

21,648 

13,870

– 

–

4,603,172 

4,999,680 

9,225,117 

8,837,231

5,290,955 

7,532,326 

9,226,045 

8,837,231

292,769 

255,108 

20,000 

37,141 

20,000 

53,965 

120,884 

105,750 

3,400 

– 

– 

– 

40,397 

– 

– 

13,408

–

–

–

–

474,194 

434,823 

40,397 

13,408

4,097 

24,059 

– 

–

1,037,158 

2,359,234 

2,210,103 

2,241,724

235,167 

43,509 

60,500 

394,709 

38,157 

– 

– 

– 

– 

–

–

–

1,380,431 

2,816,159 

2,210,103 

2,241,724

1,854,625 

3,250,982 

2,250,500 

2,255,132

3,436,330 

4,281,344 

6,975,545 

6,582,099

634,364 

483,978 

258,149 

10,114,805 

9,738,590

176,223 

9,392 

5,712

2,317,988 

3,846,972 

(3,148,652) 

(3,162,203)

3,436,330 

4,281,344 

6,975,545 

6,582,099

The above balance sheet should be read in conjunction with the accompanying notes.

65

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Cash Flow Statement

For the year ended 30 June 2009

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Receipts from customers 

Payments to suppliers and employees 

Dividends received 

Interest received 

Borrowing costs 

Income tax paid 

CoNSolIdatEd 

PaRENt ENtIty 

Note 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

2,209,937 

2,072,949 

(1,581,916) 

(1,564,942) 

15 

66,659 

88,335 

191,725 

(251,325) 

(127,625) 

(82,610) 

(68,745) 

– 

(434,023) 

76,266 

828,972 

– 

(84,076) 

(3,712) 

(987,877) 

35,832 

(12,322) 

(2,652) 

(16,921) 

3,442,768 

2,070,000 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

2,238,576

Net cash flows from/(used in) operating activities 

24 

382,436 

570,021 

Cash flows from investing activities

Purchase of property, plant and equipment 

(389,026) 

(203,142) 

Proceeds from sale of property, plant and equipment 

128 

3,486 

Payment for purchases of equity investments 

(587,457) 

(233,072) 

Purchase of available for sale financial assets 

Net proceeds from sale of equity investments 

Net proceeds from sale of held for sale investments 

Loans to associated entities 

Other (net) 

Net cash flows from/(used in) investing activities 

Cash flows from financing activities

Proceeds from borrowings 

Repayment of borrowings 

Dividends paid  

(5,285,054) 

(10,000) 

(44,096) 

–

(331,191) 

(338,694) 

(331,191) 

(169,544)

Proceeds from equity raising (net of underwriting fees) 

Proceeds from partial closure of executive share plan 

337,150 

39,065 

– 

– 

337,150 

39,065 

Payment of capital reduction 

Cash disposed from sale of group entities 

– 

– 

(2,053,852) 

(85,770) 

Net cash flows from/(used in) financing activities 

(1,797,262) 

(418,316) 

Net increase/(decrease) in cash and cash equivalents 

(2,402,703) 

134,784 

Cash and cash equivalents at the beginning of the  
financial year 

Effect of exchange rate changes on cash 

Cash and cash equivalents at the end of the  
financial year 

2,362,964 

2,227,657 

555,237 

523 

24 

515,498 

2,362,964 

928 

– 

– 

928 

– 

– 

– 

–

–

(2,069,032)

–

–

–

–

–

–

The above cash flow statement should be read in conjunction with the accompanying notes.

66

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Recognised Income and Expense

For the year ended 30 June 2009

CoNSolIdatEd 

PaRENt ENtIty

Movement in foreign currency translation reserve 

Movement from change in associates equity 

Fair value movement on cash flow hedges 

2009 

$’000 

186,469 

181,506 

(63,900) 

2008 

$’000 

(279,548) 

110,624 

– 

Net income recognised directly in equity 

304,075 

(168,924) 

2009 

$’000 

2008

$’000

– 

– 

– 

– 

–

–

–

–

Profit/(loss) for the period 

(1,197,904) 

3,546,432 

344,631 

(2,992,682)

total recognised income and expense for the period 

(893,829) 

3,377,508 

344,631 

(2,992,682)

The above statement of recognised income and expense should be read in conjunction with the accompanying notes.

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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements

For the year ended 30 June 2009

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)  Basis of preparation

This financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the 
Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian 
Accounting Standards Board. The financial report has also been prepared on a historical cost basis, except for derivative 
financial instruments and available-for-sale financial assets that have been measured at fair value and investments in 
associates accounted for using the equity method. 

The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars ($’000) unless 
otherwise stated under the option available to the Company under ASIC Class Order 98/100. The Company is an entity to 
which the class order applies.

The financial report of Crown Limited and its controlled entities for the year ended 30 June 2009 was authorised for issue  
in accordance with a resolution of the directors on 24 August 2009 subject to final approval by a sub committee, which was 
received on 16 September 2009.

(b)  Statement of compliance

The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards  
Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective  
have not been adopted by the Group for the reporting period ending 30 June 2009. These are outlined in the table below.

Application 
date of 
standard(i)

1 January 2009

1 January 2009

Reference

Title

AASB 8 and 
AASB 2007-3

AASB 123 
(Revised) and 
AASB 2007-6

Operating Segments 
and consequential 
amendments to other 
Australian Accounting 
Standards

Borrowing Costs  
and consequential 
amendments to other 
Australian Accounting 
Standards

1 January 2009

AASB 101 
(Revised) and 
AASB 2007-8

Presentation of 
Financial Statements 
and consequential 
amendments to other 
Australian Accounting 
Standards

AASB 2008-1 Amendments to 

1 January 2009

Australian Accounting 
Standard – Share-
based Payments: 
Vesting Conditions and 
Cancellations

Impact on Group financial report

AASB 8 will impact disclosures in the financial 
statements. Crown will implement the new 
disclosure requirements during the next  
financial year.

Application 
date for 
Group(i)

1 July 2009

1 July 2009

These amendments to AASB 123 require that  
all borrowing costs associated with a qualifying 
asset be capitalised. The Group already capitalises 
borrowing costs associated with qualifying 
assets and as such the amendments are not 
expected to have any impact on the Group’s 
financial report.

These amendments are only expected to affect 
the presentation of the Group’s financial report 
and will not have a direct impact on the 
measurement and recognition of amounts 
disclosed in the financial report. 

1 July 2009

The Group has share-based payment 
arrangements that have been or may be 
cancelled by an employee. The standard is  
not expected to have any material impact  
on the Group.

1 July 2009

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1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  continued 

(b)  Statement of compliance  continued

Application  
date of  
standard(i)

1 January 2009

Reference

Title

AASB 
2008-2

Amendments to 
Australian Accounting 
Standards – Puttable 
Financial Instruments 
and Obligations arising 
on Liquidation

AASB 3 
(Revised) 

Business  
Combinations

1 July 2009

AASB 127 
(Revised)

Consolidated and 
Separate Financial 
Statements

1 July 2009

IFRIC 16

Hedges of a Net 
Investment in a  
Foreign Operation

1 January 2009

AASB 138  
(AIP 2007)

Advertising and 
Promotional Activities 

1 January 2009

Application 
date for   
Group(i)

1 July 2009

1 July 2009

1 July 2009

1 July 2009

1 July 2009

Impact on Group financial report

These amendments are not expected to have 
any impact on the Group’s financial report as 
the Group does not have on issue or expect  
to issue any puttable financial instruments as 
defined by the amendments.

The Group is unlikely to enter a business 
combination during the next financial year  
at reporting date and therefore the revised 
standard is not expected to have an impact  
on the group.

The group has not undertaken a reorganisation 
during the year and is not expected to during 
the next financial year at reporting date. If the 
Group changes its ownership interest in  
existing subsidiaries in the future, the change 
will be accounted for as an equity transaction. 
This will have no impact on goodwill, nor will  
it give rise to a gain or a loss in the Group’s 
income statement.

The Interpretation will not have any impact on 
the Group since it does not significantly restrict 
the hedged risk or where the hedging 
instrument can be held. 

The Group recognises costs of advertising  
and promotional activities as an expense when 
these activities are delivered to the customers. 
The Group will be required in the next financial 
year to adopt the recognition of advertising and 
promotional expenses as an expense when  
the Group has the right to access those goods. 
This will not have a material impact on the Group.

(i)  Designates the beginning of the applicable annual reporting period unless otherwise stated.

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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

1.  SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES  continued

(c)  Basis of consolidation

The consolidated financial statements are those of the 
consolidated entity, comprising Crown Limited (the parent 
entity) and all entities that Crown Limited controlled from 
time to time during the year and at reporting date.

Information from the financial statements of subsidiaries is 
included from the date the parent entity obtains control until 
such time as control ceases. Where there is loss of control  
of a subsidiary, the consolidated financial statements include 
the results for the part of the reporting period during which 
the parent entity has control.

Subsidiary acquisitions are accounted for using the purchase 
method of accounting. The financial statements of subsidiaries 
are prepared for the same reporting period as the parent 
entity, using consistent accounting policies. Adjustments  
are made to bring into line any dissimilar accounting policies 
that may exist.

Investments in subsidiaries, as recorded in the parent entity 
(Crown Limited) accounts, are carried at cost less any 
impairment charges.

All inter-company balances and transactions, including 
unrealised profits arising from intra-group transactions,  
have been eliminated in full. Unrealised losses are eliminated 
unless costs cannot be recovered.

The accounting policies adopted have been applied 
consistently throughout the two reporting periods.

(d)   Significant accounting estimates  

and assumptions

The carrying amounts of certain assets and liabilities are 
often determined based on estimates and assumptions of 
future events. The key estimates and assumptions that have 
a significant risk of causing a material adjustment to the 
carrying amounts of certain assets and liabilities within the 
next annual reporting period are:

Impairment of goodwill and casino licences with 
indefinite useful lives

The Group determines whether goodwill and casino licences 
with indefinite useful lives are impaired at least on an annual 
basis. This requires an estimation of the recoverable amount 
of the cash-generating units to which the goodwill and 
casino licences with indefinite useful lives are allocated. The 
assumptions used in this estimation of recoverable amount 
and the carrying amount of goodwill and casino licences 
with indefinite useful lives are discussed in note 16.

Share-based payment transactions

The Group measures the cost of equity-settled transactions 
with employees by reference to the fair value of the equity 
instruments at the date at which they are granted. The fair 
value is determined with the assistance of an external valuer, 
using the assumptions detailed in note 26.

Doubtful debts

An allowance for doubtful debts is recognised when there is 
objective evidence that an individual trade debt is impaired.

Significant Items

Management determines significant items based on the 
nature, size and generally accepted accounting principles.

(e)  Income tax

Current tax assets and liabilities for the current and prior 
periods are measured at the amount expected to be 
recovered from or paid to the taxation authorities based  
on the current period’s taxable income. The tax rates and  
tax laws used to compute the amount are those that are 
enacted or substantively enacted by the balance sheet date.

Deferred income tax is provided on all temporary differences 
at the balance sheet date between the tax bases of assets 
and liabilities and their carrying amounts for financial 
reporting purposes.

Deferred income tax liabilities are recognised for all taxable 
temporary differences:

•	 except where the deferred income tax liability arises from 
the initial recognition of an asset or liability in a transaction 
that is not a business combination and, at the time of the 
transaction, affects neither the accounting profit nor 
taxable profit or loss; or

•	 in respect of taxable temporary differences associated 

with investments in subsidiaries, associates and interests 
in joint ventures, except where the timing of the reversal 
of the temporary differences can be controlled and it is 
probable that the temporary differences will not reverse  
in the foreseeable future.

Deferred income tax assets are recognised for all deductible 
temporary differences, carry-forward of unused tax assets 
and unused tax losses, to the extent that it is probable that 
taxable profit will be available against which the deductible 
temporary differences, and the carry-forward of unused tax 
assets and unused tax losses can be utilised:

•	 except where the deferred income tax asset relating to 

the deductible temporary difference arises from the initial 
recognition of an asset or liability in a transaction that is 
not a business combination and, at the time of the 
transaction, affects neither the accounting profit not 
taxable profit or loss; or

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1.  SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES  continued

(e)  Income tax  continued
•	 in respect of deductible temporary differences associated 
with investments in subsidiaries, associates and interests 
in joint ventures, deferred tax assets are only recognised 
to the extent that it is probable that the temporary 
differences will reverse in the foreseeable future and 
taxable profit will be available against which the temporary 
differences can be utilised.

The carrying amount of deferred income tax assets is 
reviewed at each balance sheet date and reduced to the 
extent that it is no longer probable that sufficient taxable 
profit will be available to allow all or part of the deferred 
income tax asset to be utilised.

Deferred income tax assets and liabilities are measured at 
the tax rates that are expected to apply to the year when  
the asset is realised or the liability is settled, based on tax 
rates (and tax laws) that have been enacted or substantively 
enacted at the balance sheet date.

Income taxes relating to items recognised directly in equity 
are recognised in equity and not in the income statement.

(f)  Other taxes

Revenues, expenses and assets are recognised net of the 
amount of GST except:

•	 where the GST incurred on a purchase of goods and 

services is not recoverable from the taxation authority,  
in which case the GST is recognised as part of the cost  
of acquisition of the asset or as part of the expense item 
as applicable;

•	 Gaming revenues, due to the GST being offset against 

casino taxes; and

•	 receivables and payables are stated with the amount 

of GST included.

The net amount of GST recoverable from, or payable to,  
the taxation authority is included as part of receivables or 
payables in the balance sheet. 

Cash flows are included in the Cash Flow Statement on a 
gross basis and the GST component of cash flows arising 
from investing and financing activities, which is recoverable 
from, or payable to, the taxation authority are classified as 
operating cash flows.

Commitments and contingencies are disclosed net of  
the amount of GST recoverable from, or payable to, the 
taxation authority.

(g)  Foreign currency translation

Both the functional and presentation currency of Crown 
Limited and its Australian subsidiaries is Australian dollars. 
Each foreign entity in the Group determines its own functional 
currency and items included in the financial statements of 
each foreign entity are measured using that functional 
currency, which is translated to the presentation currency.

Transactions in foreign currencies are initially recorded in the 
functional currency at the exchange rates ruling at the date 
of the transaction. Monetary assets and liabilities denominated 
in foreign currencies are retranslated at the rate of exchange 
ruling at the balance sheet date. 

Non-monetary items that are measured in terms of historical 
cost in a foreign currency are translated using the exchange 
rate as at the date of the initial transaction. Non-monetary 
items measured at fair value in a foreign currency are 
translated using the exchange rates at the date when  
the fair value was determined.

As at the reporting date the assets and liabilities of overseas 
subsidiaries are translated into the presentation currency of 
Crown Limited at the rate of exchange ruling at the balance 
sheet date and the income statements are translated at the 
weighted average exchange rates for the period. The exchange 
differences arising on the retranslation are taken directly to  
a separate component of equity.

On disposal of a foreign entity, the deferred cumulative 
amount recognised in equity relating to that particular foreign 
operation is recognised in the income statement.

(h)  Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise 
cash at bank and on hand, and short-term deposits with  
an original maturity of three months or less that are readily 
convertible to known amounts of cash and which are subject 
to an insignificant risk of changes in future value.

For the purposes of the Cash Flow Statement, cash and 
cash equivalents consist of cash and cash equivalents as 
defined above, net of outstanding bank overdrafts.

(i)  Trade and other receivables

Trade receivables are recognised and carried at original invoice 
amount less an allowance for any uncollectible amounts.

An estimate for doubtful debts is made when there is 
objective evidence that the full amount may not be collected. 
Bad debts are written off when identified.

Receivables from associates and other related parties are 
carried at amortised cost less an allowance for impairment. 
Interest, when charged is taken up as income on an  
accrual basis.

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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

are recognised as a separate component of equity until the 
investment is sold, collected or otherwise disposed of, or 
until the investment is determined to be impaired, at which 
time the cumulative gain or loss previously reported in equity 
is included in the income statement.

Non-derivative financial assets with fixed or determinable 
payments and fixed maturity are classified as held-to-maturity 
when the Group has the positive intention and ability to hold 
to maturity. Investments intended to be held for an undefined 
period are not included in this classification.

Other long-term investments that are intended to be 
held-to-maturity, such as bonds, are subsequently  
measured at amortised cost using the effective interest 
method. Amortised cost is calculated by taking into account 
any discount or premium on acquisition, over the period  
to maturity.

For investments carried at amortised cost, gains and  
losses are recognised in income when the investments  
are derecognised or impaired, as well as through the 
amortisation process.

For investments that are actively traded in organised financial 
markets, fair value is determined by reference to Stock 
Exchange quoted market bid prices at the close of business 
on the balance sheet date. For investments where there is 
no quoted market price, fair value is determined by reference 
to the current market value of another instrument which  
is substantially the same or is calculated based on the 
expected cash flows of the underlying net asset base of the 
investment. Gains or losses are recognised in the income 
statement and the related assets are classified as current  
in the balance sheet.

(m)  Property, plant and equipment

Property, plant and equipment is stated at cost less 
accumulated depreciation and any impairment in value.

Depreciation and amortisation is calculated on a straight-line 
basis over the estimated useful life of the asset as follows:

•	 Freehold buildings – 40 to 75 years;

•	 Leasehold improvements – lease term; and

•	 Plant and equipment – 2 to 15 years.

The assets residual values, useful lives and amortisation 
methods are reviewed, and adjusted if appropriate, at each 
financial year end.

1.  SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES  continued

(j)  Inventories

Inventories are valued at the lower of cost and net  
realisable value.

Costs incurred in bringing each product to its present 
location and condition are accounted for as follows:

•	 Gaming inventories which include food, beverages 
and other consumables are costed on a weighted 
average basis; and

•	  Net realisable value is the estimated selling price in

 the ordinary course of business, less estimated costs  
of completion and the estimated costs necessary to 
make the sale.

(k)  Investments in associates

The Group’s investment in its associates are accounted for 
under the equity method of accounting in the consolidated 
financial statements. These are entities in which the Group 
has significant influence and which are not subsidiaries.

The financial statements of the associates are used by the 
Group to apply the equity method. Where associates apply 
different accounting policies to the Group, adjustments are 
made upon application of the equity method.

Investments in the associates, as recorded in the parent 
entity (Crown Limited) accounts, are carried at cost.

The investment in the associates is carried in the 
consolidated balance sheet at cost plus post-acquisition 
changes in the Group’s share of net assets of the associates, 
less any impairment in value. The consolidated income 
statement reflects the Group’s share of the results of operations 
of the associates.

Where there has been a change recognised directly in  
the associates’ equity, the Group recognises its share  
of any changes and discloses this, when applicable in the 
consolidated statement of recognised income and expense.

When the Group’s share of losses in an associate equals or 
exceeds its interest in the associate, including any unsecured 
long term receivables and loans, the Group does not 
recognise further losses unless it has incurred obligations  
or made payments on behalf of the associate.

(l)  Investments and other financial assets

All investments and other financial assets are initially 
recognised at cost, being the fair value of the consideration 
given and including acquisition costs.

After initial recognition, investments, which are classified as 
available-for-sale, are re-measured at each reporting date at 
fair value. Gains or losses on available-for-sale investments 

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1.  SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES  continued

(m)  Property, plant and equipment  continued

Impairment

The carrying values of property, plant and equipment  
are reviewed for impairment when events or changes  
in circumstances indicate the carrying value may not be 
recoverable. For an asset that does not generate largely 
independent cash inflows, the recoverable amount is 
determined for the cash-generating unit to which the  
asset belongs. If any such indication exists and where  
the carrying values exceed the estimated recoverable 
amount, the assets or cash-generating units are written 
down to their recoverable amount.

The recoverable amount of property, plant and equipment  
is the greater of fair value less costs to sell and value in use. 
In assessing value in use, the estimated future cash flows are 
discounted to their present value using a post-tax discount 
rate that reflects current market assessments of the time 
value of money and the risks specific to the asset.

Derecognition

An item of property, plant and equipment is derecognised 
upon disposal or when no future economic benefits are 
expected to arise from the continued use of the asset.

Any gain or loss arising on derecognition of the asset 
(calculated as the difference between the net disposal 
proceeds and the carrying amount of the item) is included in 
the income statement in the period the item is derecognised.

(n)  Intangible assets

Licences

Licences are carried at cost less any accumulated 
amortisation and any accumulated impairment losses.

The directors regularly assess the carrying value of casino 
licences so as to ensure they are not carried at a value 
greater than their recoverable amount.

The casino licence premiums are carried at cost of acquisition. 
The Crown Melbourne licence is being amortised on a 
straight-line basis over the remaining life of the licence from 
the time PBL acquired Crown Melbourne, being 34 years. 
The Burswood licence is perpetual and, as such, no 
amortisation is charged. The Burswood licence is subject  
to an annual impairment assessment.

Goodwill

Goodwill on acquisition is initially measured at cost being  
the excess of the cost of the business combination over  
the acquirer’s interest in the net fair value of the identifiable 
assets, liabilities and contingent liabilities. Following  
initial recognition, goodwill is measured at cost less any 
accumulated impairment losses. Goodwill is not amortised.

As at the acquisition date, any goodwill acquired is allocated 
to each of the cash-generating units expected to benefit 
from the combination’s synergies.

Goodwill is reviewed for impairment, annually or more 
frequently if events or changes in circumstances indicate  
that the carrying value may be impaired. Impairment is 
determined by assessing the recoverable amount of the cash 
generating unit to which the goodwill relates. Where the 
recoverable amount of the cash-generating unit is less than 
the carrying amount, an impairment loss is recognised.

Where goodwill forms part of a cash-generating unit and part 
of the operation within that unit is disposed of, the goodwill 
associated with the operation disposed of is included in the 
carrying amount of the operation when determining the gain 
or loss on disposal of the operation. Goodwill disposed of  
in this circumstance is measured on the basis of the relative 
values of the operation disposed of and the portion of the 
cash-generating unit retained.

Other intangible assets

Acquired both separately and from a business combination

Intangible assets acquired separately are capitalised at cost 
and from a business combination are capitalised at fair value 
as at the date of acquisition. Following initial recognition,  
the cost model is applied to the class of intangible assets.

The useful lives of these intangible assets are assessed to  
be either finite or indefinite. Where amortisation is charged 
on assets with finite lives, this expense is taken to the 
income statement.

Intangible assets created within the business are not 
capitalised and expenditure is charged against profits  
in the period in which the expenditure is incurred.

Intangible assets are tested for impairment where an 
indicator of impairment exists, and annually in the case of 
intangible assets with indefinite lives, either individually or at 
the cash generating unit level. Useful lives are also examined 
on an annual basis and adjustments, where applicable, are 
made on a prospective basis.

Gains or losses arising from derecognition of an intangible 
asset are measured as the difference between the net 
disposal proceeds and the carrying amount of the asset and 
are recognised in the income statement when the net asset 
is derecognised.

(o)  Recoverable amount of assets

At each reporting date, the Group assesses whether there  
is any indication that an asset may be impaired. Where  
an indicator of impairment exists, the Group makes a  
formal estimate of recoverable amount. Where the carrying 
amount of an asset exceeds its recoverable amount the 
asset is considered impaired and is written down to its 
recoverable amount. 

73

 
 
 
 
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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

1.  SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES  continued

(o)  Recoverable amount of assets  continued

Recoverable amount is the greater of fair value less costs  
to sell and value in use. For the purposes of assessing 
impairment, assets are grouped at the lowest levels for 
which there are separately identifiable cash flows that are 
largely independent of the cash flows from other assets or 
groups of assets (cash-generating units). In assessing value 
in use, the estimated future cash flows are discounted to 
their present value using a pre-tax discount rate that reflects 
current market assessments of the time value of money  
and the risks specific to the asset.

(p)  Trade and other payables

Liabilities are brought to account for amounts payable in 
relation to goods received and services rendered, whether  
or not billed to the Group at reporting date. The Group 
operates in a number of diverse markets, and accordingly 
the terms of trade vary by business.

(q)  Interest-bearing loans and borrowings

All loans and borrowings are initially recognised at cost, being 
the fair value of the consideration received net of issue costs 
associated with the borrowing.

After initial recognition, interest-bearing loans and borrowings 
are subsequently measured at amortised cost using the 
effective interest method. Amortised cost is calculated by 
taking into account any issue costs, and any discount or 
premium on settlement.

Gains and losses are recognised in the income statement 
when the liabilities are derecognised and as well as through 
the amortisation process.

Borrowing costs

Borrowing costs are capitalised on qualifying assets. Other 
borrowing costs are recognised as an expense when incurred.

(r)  Provisions

Provisions are recognised when the economic entity has  
a legal or constructive obligation to make a future sacrifice  
of economic benefits to other entities as a result of past 
transactions or other events, it is probable that a future 
sacrifice of economic benefit will be required and a reliable 
estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions 
are discounted using a current pre-tax rate that reflects  
the risks specific to the liability. When discounting is used, 
the increase in the provision due to the passage of time  
is recognised as a borrowing cost.

A provision for dividends is not recognised as a liability 
unless the dividends are declared, or publicly recommended 
on or before the reporting date.

74

(s)  Employee benefits

Provision is made for employee benefits accumulated  
as a result of employees rendering services up to balance  
date including related on-costs. The benefits include wages 
and salaries, incentives, compensated absences and other 
benefits, which are charged against profits in their respective 
expense categories when services are provided or benefits 
vest with the employee.

The provision for employee benefits is measured at the 
remuneration rates expected to be paid when the liability is 
settled. Benefits expected to be settled after twelve months 
from the reporting date are measured at the present value  
of the estimated future cash outflows to be made in respect 
of services provided by employees up to the reporting date.

The liability for long service leave is recognised in the 
provision for employee benefits and measured as the 
present value of expected future payments to be made  
in respect of services provided by employees up to the 
reporting date using the projected unit credit method. 
Consideration is given to expected future wage and salary 
levels, experience of employee departures, and periods of 
service. Expected future payments are discounted using 
market yields at the reporting date on national government 
bonds with terms to maturity and currencies that match,  
as closely as possible, the estimated future cash outflows.

(t)  Share-based payment transactions

Equity settled transactions

The Group provides benefits to senior executives in the  
form of share-based payments, whereby executives render 
services in exchange for shares or rights over shares 
(equity-settled transactions).

The plan in place to provide these benefits is the Executive 
Share Plan (ESP).

The cost of these equity-settled transactions with executives 
is measured by reference to the fair value of the equity 
instruments at the date which they are granted. The fair 
value is determined by an external valuer using the Monte 
Carlo model, further details of which are given in note 26.

In valuing equity-settled transactions, only conditions linked 
to the price of the shares of Crown Limited are taken into 
account, further details of which are given in note 26.

The cost of equity-settled transactions is recognised, together 
with a corresponding increase in equity, over the period in 
which the performance and/or service conditions are fulfilled, 
ending on the date on which the relevant executives become 
fully entitled to the award (the vesting period).

 
 
 
 
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1.  SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES  continued

(t)   Share-based payment 
transactions  continued

Equity settled transactions  continued

The cumulative expense recognised for equity-settled 
transactions at each reporting date until vesting dates reflects:

(i)  the extent to which the vesting period has expired; and

(ii)  the Groups best estimate of the number of equity 

instruments that will ultimately vest.

No adjustment is made for the likelihood of market performance 
conditions being met as the effect of these conditions is 
included in the determination of fair value at grant date. The 
income statement charge or credit for a period represents 
the movement in cumulative expense recognised as at the 
beginning and end of that period.

(u)  Leases

Finance leases, which transfer to the Group substantially all 
the risks and benefits incidental to ownership of the leased 
item, are capitalised at the inception of the lease at the fair 
value of the leased property or, if lower, at the present value 
of the minimum lease payments.

Lease payments are apportioned between the finance charges 
and reduction of the leased liability so as to achieve a constant 
rate of interest on the remaining balance of the liability.

Operating lease payments are recognised as an expense  
in the income statement on a straight-line basis over the 
lease term.

(v)  Derecognition of financial instruments

The derecognition of a financial instrument takes place  
when the Group no longer controls the contractual rights 
that comprise the financial instrument, which is normally  
the case when the instrument is sold, or all the cash flows 
attributable to the instrument are passed through to an 
independent third party.

(w)  Derivative financial instruments  
and hedging

The Group uses derivative financial instruments (including 
Forward Exchange Contracts and interest rate swaps)  
to hedge its risks associated with foreign currency and 
interest rate fluctuations. Such derivative financial instruments 
are initially recognised at fair value at inception and are 
subsequently marked-to-market. 

Derivatives are carried as assets when their fair value is 
positive and as liabilities when their fair value is negative.  
Any gains or losses arising from changes in the fair value  
of derivatives, except for those that qualify as cash flow 
hedges, are taken directly to profit or loss for the year.

The fair value of Forward Exchange Contracts are calculated 
by reference to current forward exchange rates for contracts 
with similar maturity profiles. The fair values of interest rate 
swaps are determined by reference to market values for 
similar instruments. 

Hedges that meet the strict criteria for hedge accounting are 
accounted for as follows: 

(i) Fair value hedges

Fair value hedges are hedges of the Group’s exposure to 
changes in the fair value of a recognised asset or liability or 
an unrecognised firm commitment, or an identified portion of 
such an asset, liability or firm commitment that is attributable 
to a particular risk and could affect profit or loss. For fair 
value hedges, the carrying amount of the hedged item is 
adjusted for gains and losses attributable to the risk being 
hedged and the derivative is remeasured to fair value.  
Gains and losses from both are taken to profit or loss. 

The Group discontinues fair value hedge accounting if  
the hedging instrument expires or is sold, terminated or 
exercised, the hedge no longer meets the criteria for hedge 
accounting or the Group revokes the designation. Any 
adjustment to the carrying amount of a hedged financial 
instrument for which the effective interest method is used  
is amortised to profit or loss. Amortisation may begin as 
soon as an adjustment exists and shall begin no later than 
when the hedged item ceases to be adjusted for changes  
in its fair value attributable to the risk being hedged.

(ii)  Cash flow hedges

Cash flow hedges are hedges of the Group’s exposure to 
variability in cash flows that is attributable to a particular risk 
associated with a recognised asset or liability that is a firm 
commitment and that could affect profit or loss. The effective 
portion of the gain or loss on the hedging instrument is 
recognised directly in equity, while the ineffective portion  
is recognised in profit or loss.

Amounts taken to equity are transferred out of equity and 
included in the measurement of the hedged transaction 
(finance costs or inventory purchases) when the forecast 
transaction occurs. If the hedging instrument expires or is 
sold, terminated or exercised without replacement or rollover, 
or if its designation as a hedge is revoked (due to it being 
ineffective), amounts previously recognised in equity remain 
in equity until the forecast transaction occurs.

(x)  Impairment of financial assets

The Group assesses at each balance sheet date whether  
a financial asset or group of financial assets is impaired.

(i)  Financial assets carried at amortised cost

If there is objective evidence that an impairment loss on 
loans and receivables carried at amortised cost has been 
incurred, the amount of the loss is measured as the difference 

75

 
 
 
 
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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

1.  SUMMARY OF SIGNIFICANT 
ACCOUNTING POLICIES  continued

(x)  Impairment of financial assets  continued

(i)  Financial assets carried at amortised cost  continued

between the assets carrying amount and the present value 
of estimated future cash flows (excluding future credit losses 
that have not been incurred) discounted at the financial 
assets original effective interest rate (i.e. the effective interest 
rate computed at initial recognition). The carrying amount  
of the asset is reduced either directly or through use of an 
allowance account. The amount of the loss is recognised  
in the Income Statement.

The Group first assesses whether objective evidence of 
impairment exists individually for financial assets that are 
individually significant, and individually or collectively for 
financial assets that are not individually significant. If it is 
determined that no objective evidence of impairment exists 
for an individually assessed financial asset, whether significant 
or not, the asset is included in a group of financial assets 
with similar credit risk characteristics and that group of 
financial assets is collectively assessed for impairment. 
Assets that are individually assessed for impairment and for 
which an impairment loss is or continues to be recognised 
are not included in a collective assessment of impairment.

If, in a subsequent period, the amount of the impairment  
loss decreases and the decrease can be related objectively  
to an event occurring after the impairment was recognised, 
the previously recognised impairment loss is reversed. Any 
subsequent reversal of an impairment loss is recognised in the 
Income Statement, to the extent that the carrying value of the 
asset does not exceed its amortised cost at the reversal date.

(y)  Contributed equity

Ordinary shares are classified as equity. Issued capital is 
recognised at the fair value of the consideration received  
by the Company, less transaction costs.

(z)  Revenue

Revenue is recognised to the extent that it is probable that 
the economic benefits will flow to the Group and the revenue 
can be reliably measured. The following specific recognition 
criteria must also be met before revenue is recognised:

Sale of goods

Revenue is recognised when the significant risks and rewards  
of ownership of the goods have passed to the buyer and can be 
measured reliably. Risks and rewards are considered passed to 
the buyer at the time of delivery of the goods to the customer.

Rendering of services

Revenue is recognised when control of the right to be 
compensated for the services and the stage of completion 
can be reliably measured.

Casino revenues are the net of gaming wins and losses.

Interest

Revenue is recognised as the interest accrues (using the 
effective interest method, which is the rate that exactly 
discounts estimated future cash receipts through the expected 
life of the financial instrument) to the net carrying amount  
of the financial asset.

Dividends

Revenue is recognised when the shareholders’ right to 
receive the payment is established.

(ii)  Financial assets carried at cost

(aa)  Earnings per share

If there is objective evidence that an impairment loss has been 
incurred on an unquoted equity instrument that is not carried 
at fair value (because its fair value cannot be reliably measured), 
or on a derivative asset that is linked to and must be settled 
by delivery of such an unquoted equity instrument, the amount 
of the loss is measured as the difference between the assets 
carrying amount and the present value of estimated cash 
flows, discounted at the current market rate of return for  
a similar financial asset.

(iii)  Available-for-sale investments

If there is objective evidence that an available-for-sale 
investment is impaired, an amount comprising the difference 
between its cost (net of any principal repayment and 
amortisation) and its current fair value, less any impairment 
loss previously recognised in the Income Statement, is 
transferred from equity to the income statement. Reversals 
of impairment losses for equity instruments classified as 
available-for-sale are not recognised in the Income 
Statement. Instead they are recognised through a separate 
component of equity. 

76

Basic EPS is calculated as net profit attributable to members 
of the parent, adjusted to exclude any costs of servicing 
equity (other than dividends) and preference share dividends, 
divided by the weighted average number of ordinary shares, 
adjusted for any bonus element.

Diluted EPS is calculated as net profit attributable to 
members of the parent, adjusted for:

•	 costs of servicing equity (other than dividends) and 

preference share dividends;

•	 the after tax effect of dividends and interest associated 
with dilutive potential ordinary shares that have been 
recognised as expenses; and

•	 other non-discretionary changes in revenues or expenses 
during the period that would result from the dilution of 
potential ordinary shares;

divided by the weighted average number of ordinary shares 
and dilutive potential ordinary shares, adjusted for any  
bonus element.

 
 
 
 
2.  SEGMENT INFORMATION
Crown operated one distinct segment, being:

•	 Gaming – operation of fully integrated gaming and entertainment facilities.

Intersegment trading, where appropriate, is eliminated on consolidation. Any such transactions are based on market values.

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(a)  Industry segment

30 June 2009

operating revenue 

  Total  

Intersegment 

  External customers 

  Other income 

Interest revenue 

total revenue 

Segment result

i

F
n
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Gaming  Unallocated 

Note 

$’000 

$’000 

Crown 
Group 

$’000 

Significant  Continuing 
Items  Operations

$’000 

$’000

l

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2,195,020 

(120) 

2,194,900 

152 

3 

3 

3 

16 

– 

16 

– 

2,195,036 

(120) 

2,194,916 

152 

64,265 

2,195,052 

16 

2,259,333 

– 

– 

– 

– 

40,443 

40,443 

2,195,036

(120)

2,194,916

152

104,708

2,299,776

 Earnings before interest, tax,  
depreciation and amortisation “EBITDA” 

685,394 

(39,332) 

646,062 

  Depreciation and amortisation 

3 

(145,354) 

(2,630) 

(147,984) 

  Earnings before interest and tax “EBIT” 

540,040 

(41,962) 

498,078 

– 

– 

– 

646,062

(147,984)

498,078

  Significant items 

 Equity accounted share of  
associates’ net profit/(loss) 

  Net interest income/(expense) 

 Profit/(loss) from operating  
activities before income tax 

– 

(125,959) 

– 

– 

10 

3 

– 

(1,415,188) 

(1,415,188)

(125,959) 

– 

(125,959)

(27,877) 

(54,827) 

(82,704)

414,081 

(41,962) 

344,242 

(1,470,015) 

(1,125,773)

  Less: tax benefit/(expense)  

5 

(102,046) 

29,915 

(72,131)

Profit/(loss) after tax 

414,081 

(41,962) 

242,196 

(1,440,100) 

(1,197,904)

total assets employed(i) 

total liabilities 

4,945,280 

345,675 

5,290,955 

1,072,524 

782,101 

1,854,625 

acquisition of non-current assets 

409,254 

Investments in associates 

10 

1,144,735 

Non-cash (income)/expenses  
(other than depn & amort) 

– 

– 

– 

– 

409,254 

1,144,735 

(i)  Unallocated assets include unallocated cash on deposit of $65.3 million (2008: $2,215.2 million).

– 

– 

– 

– 

5,290,955

1,854,625

409,254

1,144,735

– 

1,293,751 

1,293,751

77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

2.  SEGMENT INFORMATION  continued

(a)  Industry segment  continued

30 June 2008

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operating revenue

  Total  

Intersegment 

  External customers 

  Other income 

Interest revenue 

total revenue 

Segment result

Gaming  Unallocated 

Less: 
Crown  Discontinued  Continuing 
Group  Operations  Operations

Note 

$’000 

$’000 

$’000 

$’000 

$’000

2,028,924 

9,480 

2,038,404 

8,731 

2,029,673

(2,233) 

– 

(2,233) 

– 

(2,233)

2,026,691 

9,480 

2,036,171 

8,731 

2,027,440

701 

273,933 

274,634 

188,490 

273,933 

701

– 

188,490

2,027,392 

283,413 

2,499,295 

282,664 

2,216,631

3 

3 

3 

 Earnings before interest, tax,  
depreciation and amortisation “EBITDA” 

632,924 

(50,907) 

582,017 

(11,068) 

593,085

  Depreciation and amortisation  

3 

(130,287) 

(3,866) 

(134,153) 

(1,343) 

(132,810)

  Earnings before interest and tax “EBIT” 

502,637 

(54,773) 

447,864 

(12,411) 

460,275

  Significant items 

 Equity accounted share  
of associates’ net profit/(loss) 

  Net interest income/(expense) 

 Profit from operating activities  
before income tax 

– 

3,095,613 

3,095,613 

3,334,776 

(239,163)

(21,999) 

57,470 

10 

3 

35,471 

55,501 

57,470 

– 

(21,999)

55,501

480,638 

3,098,310 

3,634,449 

3,379,835 

254,614

  Less: tax benefit/(expense)  

5 

(88,017) 

29,591 

(117,608)

Profit after tax 

480,638 

3,098,310 

3,546,432 

3,409,426 

137,006

total assets employed(i) 

total liabilities 

4,991,457 

2,540,869 

7,532,326 

752,833 

2,498,149 

3,250,982 

acquisition of non-current assets  

199,086 

Investments in associates 

10 

1,130,164 

– 

– 

199,086 

1,130,164 

Non-cash (income)/expenses  
(other than depn & amort) 

– 

239,163 

239,163 

(i)  Unallocated assets include unallocated cash on deposit of $65.3 million (2008: $2,215.2 million).

– 

– 

– 

– 

– 

7,532,326

3,250,982

199,086

1,130,164

239,163

(b)  Geographical segment

The consolidated entity operates principally within Australia.

78

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.  Revenue and Expenses

Profit before income tax expense includes the following  
revenues and expenses:

(i)  Revenue from continuing operations

Revenue from services 

Revenue from sale of goods 

Interest – significant item 

Interest – non significant item 

Dividends  

Other operating revenue 

CoNSolIdatEd 

PaRENt ENtIty

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

N
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i

F
n
a
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i

– 

– 

– 

– 

l

S

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a
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m
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n
t
s

–

–

–

–

1,903,113 

1,744,585 

272,188 

263,737 

40,443 

64,265 

16 

– 

188,490 

40 

337,000 

175,000

19,599 

19,078 

– 

–

2,299,624 

2,215,930 

337,000 

175,000

(ii)  other income from continuing operations

Profit on disposal of non-current assets 

152 

701 

(iii)  Expenses from continuing operations

Cost of sales 

Gaming activities 

Significant items (excl. interest and tax) 

Other activities 

Depreciation of non-current assets

(included in expenses above)

Buildings 

Plant and equipment 

Amortisation of non-current assets

(included in expenses above) 

Casino licence fee and management agreement 

Other assets 

105,386 

101,829 

1,549,626 

1,423,675 

1,415,188 

239,163 

41,978 

42,362 

3,112,178 

1,807,029 

43,870 

85,681 

42,941 

72,019 

129,551 

114,960 

14,417 

4,016 

18,433 

14,436 

3,414 

17,850 

total depreciation and amortisation expense 

147,984 

132,810 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

–

–

–

3,168,144

–

3,168,144

–

–

–

–

–

–

–

79

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

3.  Revenue and Expenses  continued

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CoNSolIdatEd 

PaRENt ENtIty

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

i

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(iv)  Significant items

Continuing operations

l

S

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Write down of available for sale assets 

Write down of investments in associates 

Write down of Gateway shareholder loan 

Write down of deferred debt securities 

Termination fee for original Cannery transaction 

Termination of US dollar interest rate swaps 

Net interest attributable to the termination  
of original Cannery transaction 

Write down of LVTI 

Other net significant items 

Impairment write down of non current assets 

discontinued operations

Gain on demerger of CMH 

Net profit on disposal of investments 

Impairment and write down of non-current assets 

561,552 

509,855 

182,279 

31,265 

76,546 

57,341 

54,827 

181,330 

– 

– 

13,134 

– 

– 

– 

– 

44,699 

(3,650) 

– 

– 

– 

1,470,015 

239,163 

– 

– 

– 

– 

(2,403,458) 

(948,318) 

17,000 

(3,334,776) 

total significant items 

1,470,015 

(3,095,613) 

(v)  other income and expense disclosures 

Finance costs expensed:

Debt facilities 

Debt facilities – significant item 

Bad and doubtful debts – trade debtors 

Rentals – operating leases 

Superannuation expense 

Other employee benefits expense 

Executive share plan expenses 

Net foreign currency gains/(losses) 

92,142 

95,270 

132,989 

– 

187,412 

132,989 

13,678 

9,225 

36,676 

(11,185) 

8,652 

33,930 

557,986 

530,545 

3,680 

12,909 

3,672 

781 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

–

–

–

3,168,144

3,168,144

–

–

–

–

3,168,144

–

–

–

–

–

–

–

–

–

(vi)  Restatement of Comparative Financial Information

Subsequent to the finalisation of the prior period financial statements, the Company identified a pre demerger liability which 
was not previously recognised in the demerger adjustments. This adjustment had the effect of reducing the prior period’s net 
gain from discontinued operations by $16.8 million (from $3,426.2 million to $3,409.4 million) and increasing current liabilities 
by $16.8 million (from $418.0 million to $434.8 million). Each of the effected financial statement line items for the prior period 
have been adjusted to reflect this.

Basic and diluted earnings per share for the prior year have been restated. The restatement for both basic and diluted 
earnings per share was a reduction of $2.43 (from 517.0 cps to 514.57 cps).

80

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.  Dividends Paid and Announced

(a)   Dividends declared and paid during the  

financial year

Current year interim dividend (paid 30 April 2009)

Paid at 18 cents (2008: 25 cents) per share franked at 60%  
(2008: 40% franked) at the Australian tax rate of 30% (2008: 30%) 

Prior year final dividend (paid 17 October 2008) 

Paid at 29 cents (2007: 25 cents) per share franked at 40%  
(2007: fully franked) at the Australian tax rate of 30% (2007: 30%) 

total dividends appropriated 

(b)   Dividends announced and not recognised  

as a liability

Current year final dividend on ordinary shares 
(expected to be paid 26 October 2009)

Announced at 19 cents (2008: 29 cents) per share and  
franked at 60% (2008: 40% franked) at the Australian tax rate  
of 30% (2008: 30%) 

(c)  Franking credits

The tax rate at which the final dividend will be franked is 30% 
(2008: 30%). The franking account disclosures have been  
calculated using the franking rate applicable at 30 June 2009.

The amount of franking credits available for the subsequent  
financial year:

Franking account balance as at the end of the financial year  
at 30% (2008: 30%) 

Franking credits that will arise from the payment of income  
taxes payable as at the end of the financial year 

total franking credits 

The amount of franking credits available for future reporting  
periods: 

Impact on the franking account of dividends announced before  
the financial report was authorised for issue but not recognised  
as a distribution to equity holders during the financial year 

CoNSolIdatEd 

PaRENt ENtIty

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

N
o
t
e
s

t
o

t
h
e

i

F
n
a
n
c
a

i

136,511 

172,419 

136,511 

172,419

200,006 

336,517 

172,122 

344,541 

200,006 

336,517 

–

172,419

l

S

t
a
t
e
m
e
n
t
s

144,095 

200,006 

144,095 

200,006

29,458 

9,445 

29,458 

9,445

15,994 

45,452 

22,554 

31,999 

15,994 

45,452 

22,554

31,999

(37,054) 

8,398 

(34,287) 

(2,288) 

(37,054) 

8,398 

(34,287)

(2,288)

81

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

5.  Income Tax

N
o
t
e
s

t
o

t
h
e

CoNSolIdatEd 

PaRENt ENtIty

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

i

F
n
a
n
c
a

i

l

S

t
a
t
e
m
e
n
t
s

(a)  Income tax expense

The prima facie tax expense, using tax rates applicable  
in the country of operation, on profit differs from income tax  
provided in the financial statements as follows:

Profit/(loss) before income tax 

(1,125,773) 

3,634,449 

337,000 

(2,993,144)

Prima facie income tax expense/(benefit) on profit/(loss)  
at the Australian rate of 30% (2008: 30%) 

(337,732) 

1,090,335 

101,100 

(897,943)

Tax effect of:

Dividends 

Non deductible depreciation and amortisation 

Non taxable net capital loss/(gain) 

Share of associates’ net losses/(profits) 

Tax losses previously not recognised now brought to account 

Other items – net 

Impairment and write down of investments and loans 

Deferred income tax on temporary differences 

Income tax (over)/under provided in prior years 

Deferred tax adjustment 

Income tax expense/(benefit)  

Income tax expense/(benefit) comprises –  

Current expense/(benefit) 

Deferred expense/(benefit) 

Adjustments for current income tax of prior periods 

– 

(101,100) 

(52,500)

– 

2,247 

1,506 

– 

(1,026,301) 

37,788 

(10,641) 

(6,000) 

(1,017) 

385,485 

(1,358) 

(7,282) 

– 

72,131 

80,771 

(1,358) 

(7,282) 

72,131 

– 

(7,263) 

71,739 

(6,966) 

675 

(25,067) 

88,017 

94,308 

(6,966) 

675 

88,017 

– 

– 

– 

– 

(3,370) 

– 

(804) 

(3,457) 

– 

–

950,443

–

–

–

–

(462)

–

–

(7,631) 

(462)

(3,370) 

(804) 

(3,457) 

(7,631) 

–

(462)

–

(462)

(b)  Deferred income taxes

Deferred income tax assets 

Deferred income tax liabilities 

140,138 

235,167 

136,573 

394,709 

21,648 

13,870

– 

–

Net deferred income tax assets/(liabilities) 

(95,029) 

(258,136) 

21,648 

13,870

82

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.  Income Tax  continued

CoNSolIdatEd 

PaRENt ENtIty

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

N
o
t
e
s

t
o

t
h
e

i

F
n
a
n
c
a

i

l

S

t
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m
e
n
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s

(c)   Deferred income tax assets and liabilities  

at the end of the financial year 

Doubtful debt provision 

Employee benefits provision 

Revenue losses carried forward 

Other receivables 

Other provisions 

Revaluation to fair value of:

Investments 

Prepaid casino tax 

Licences and intangibles 

Land and buildings 

Accelerated depreciation for tax purposes 

Other 

8,082 

21,274 

20,475 

44,013 

27,932 

7,803 

18,222 

13,500 

49,353 

47,695 

– 

(155,490) 

(20,511) 

(563) 

(125,137) 

(149,797) 

(51,658) 

(35,048) 

15,549 

(86,960) 

(3,764) 

1,865 

Net deferred income tax assets/(liabilities) 

(95,029) 

(258,136) 

– 

– 

–

–

20,475 

13,500

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

–

1,173 

21,648 

370

13,870

(d)   Movements in deferred income  

tax assets and liabilities during the  
financial year, reflected in deferred  
income tax expense/(benefit) –

Prepaid casino tax 

Adjustment to the carrying value of assets 

Net deferred income tax expense/(benefit) 

(e)   Tax losses not brought to account,  
as the realisation of the benefits  
represented by these balances is  
not considered to be probable –

The Group has tax losses arising in Australia that are  
available indefinitely for offset against future capital gains  
of the companies in which the losses arose.

Capital gains tax – no expiry date  

total tax losses not brought to account 

Potential tax benefit at respective tax rates 

(f)  Unrecognised temporary differences

(820) 

(538) 

(1,358) 

(820) 

(6,146) 

(6,966) 

– 

(804) 

(804) 

–

(462)

(462)

922,128 

922,128 

276,638 

922,128 

922,128 

276,638 

922,128 

922,128 

276,638 

922,128

922,128

276,638

At 30 June 2009, there is no recognised or unrecognised deferred income tax liability (2008: $nil) for taxes that would be 
payable on the unremitted earnings of certain of the Group’s subsidiaries, associates or joint ventures, as the Group has  
no liability for additional taxation should such amounts be remitted.

83

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

5.  Income Tax  continued

(g)  Tax consolidation

Crown Limited and its 100% owned Australian resident subsidiaries have formed a tax consolidated group with effect from  
1 July 2007. Crown Limited is the head entity of the tax consolidated group. Members of the group have entered into a tax 
sharing arrangement with Crown Limited in order to allocate income tax expense between Crown Limited and the wholly 
owned subsidiaries. In addition, the agreement provides for the allocation of income tax liabilities between the entities  
should the head entity default on its tax payment obligations. At the balance date the possibility of default is remote.

N
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(h)  Tax effect accounting by members of the tax consolidated group

Members of the tax consolidated group have entered into a tax funding agreement. The tax funding agreement provides for 
the allocation of current and deferred taxes to members of the tax consolidated group in accordance with their taxable income 
for the period. The allocation of taxes under the tax funding agreement is recognised as an increase/decrease in the subsidiaries 
inter-company accounts with the tax consolidated group head company, Crown Limited.

6.  Discontinued Operations
No components of the entity have been disposed of, or classified as held for sale in the current reporting period.  
The commentary below relates to the prior period comparatives only.

(a)  Details of discontinued operations

Demerger of CMH

On 12 December 2007, Crown disposed of its Media businesses by way of a demerger of Consolidated Media Holdings 
Limited. The demerger was effected by returning 1 CMH share to shareholders for each Crown share held.

The net assets of CMH at the time of demerger were $131.6 million. The value of CMH at the demerger date was  
$2,535.1 million. A gain of $2,403.5 million was therefore recorded on demerger. The $131.6 million was recorded  
as a reduction of capital and the $2,403.5 million was accounted for as an internal distribution in the December 2007 
consolidated accounts.

As part of the demerger the following material entities were disposed:

•	 Consolidated Media Holdings Ltd (formally PBL);

•	 Windfyr Pty Ltd (and controlled entities);

•	 PBL Media Holdings Shareholder Pty Ltd (and controlled entities); and

•	 PBL Pay TV Pty Ltd (and controlled entities).

PBL Media

On 10 September 2007 PBL disposed half of its 50% investment (25%) in PBL Media for proceeds of $526.4 million.  
The cost base disposed by Crown relating to the share disposed was negative $347.3 million resulting in a profit on disposal 
of $873.7 million.

Ticketing and Events

On 17 July 2007, PBL sold its Ticketing and Events business to PBL Media for $210.0 million in cash. PBL’s cost base in  
the Ticketing and Events business at the time of the sale was $50.5 million. At the time of the transaction PBL owned 50%  
of PBL Media, therefore 50% of these net assets and 50% of the debt funding that PBL Media used for the acquisition were 
transferred to PBL’s investment in PBL Media ($79.7 million). The residual 50% was disposed, resulting in a gain on disposal  
of $79.7 million.

The material entities disposed as part of this transaction were:

•	 Ticketek Pty Limited;

•	 Sydney Superdome Pty Limited; and

•	 Events Management Catering Pty Limited.

84

 
 
 
 
6.  Discontinued Operations  continued

Hoyts

On 5 December 2007 PBL sold its investment in Hoyts for $145.4 million. Costs of $3.2 million were incurred in relation  
to the sale. At the time the carrying value of Hoyts was $147.3 million resulting in a loss on disposal of Hoyts of $5.1 million.

Other Discontinued Operations

Other discontinued operations consisted of equity accounted results of entities no longer part of the Crown Group, tax 
adjustments, and corporate costs of businesses residing in CMH. The net profit from these other discontinued operations  
was $74.7 million.

Summary of Discontinued Operations

In summary, Crown’s gain for the year ended 30 June 2008 from discontinued operations of $3,409.4 million consisted  
of the following:

Gain on demerger of CMH 

Gain on disposal of PBL Media 

Gain on disposal of Ticketing & Events 

Loss on disposal of Hoyts 

New Regency write down 

Other discontinued operations 

$’000 

2,403,458

873,721

79,743

(5,146)

(17,000)

74,650

3,409,426

(b)  Cash flow information – discontinued operations

The net cash flows of discontinued operations for the period until disposal were as follows:

Operating activities 

Investing activities 

Financing activities 

CoNSolIdatEd

2009 

$’000 

2008

$’000

– 

– 

– 

– 

(3,641)

671,872

(2,139,622)

(1,471,391)

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85

 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

7.  Trade and Other Receivables

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Current

Trade receivables  

Provision for doubtful debts (a) 

Loans to associated entities 

Other receivables 

CoNSolIdatEd 

PaRENt ENtIty

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

127,194 

114,844 

(28,206) 

98,988 

34 

45,635 

45,669 

(13,983) 

100,861 

314 

45,349 

45,663 

144,657 

146,524 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

–

(a)  Allowance for Doubtful Debts

Trade debtors are non-interest bearing and are generally 30 day terms.

An allowance for doubtful debts is recognised when there is objective evidence that an individual trade debt is impaired.

Movements in the allowance for doubtful debts:

CoNSolIdatEd

2009 

$’000 

2008

$’000

Allowance for doubtful debts at the beginning of the year 

(13,983) 

(44,242)

Discontinued Operations (Transferred out) 

– 

369

Net doubtful debt (expense)/reversal for the year (i) 

(13,678) 

11,185

Transfers in 

Amounts written off 

(i)  Amounts are included in other expenses.

ageing analysis of trade debtors

2009 – consolidated

Current 

Past due not impaired 

Considered impaired 

2008 – consolidated

Current 

Past due not impaired 

Considered impaired 

86

(800) 

255 

(28,206) 

–

18,705

(13,983)

0-30 days 
$’000 

>30 days 
$’000 

Total 
$’000

48,405 

– 

3,249 

51,654 

62,049 

– 

1,184 

63,233 

– 

50,583 

24,957 

75,540 

– 

38,812 

12,799 

51,611 

48,405

50,583

28,206

127,194

62,049

38,812

13,983

114,844

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.  Trade and Other Receivables  continued

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

N
o
t
e
s

t
o

t
h
e

Non Current

Loans to associated entities(i) 

Derivatives 

Loans to controlled entities 

Other receivables 

Provision for doubtful debts 

(i)  Loan terms are outlined in note 31.

8.  Inventories

Current

Finished goods (at cost) 

9.  Other Assets

Current

Deposits 

Non Current

Prepaid casino tax at cost 

Accumulated amortisation 

i

F
n
a
n
c
a

i

l

S

t
a
t
e
m
e
n
t
s

– 

– 

–

–

165,160 

248,079 

11,200 

– 

– 

– 

558,268 

178,160

71,677 

188,923 

– 

(5,000) 

– 

– 

–

–

236,837 

443,202 

558,268 

178,160

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

15,293 

11,835 

– 

–

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

– 

70 

100,800 

100,800 

(32,429) 

68,371 

(29,694) 

71,106 

– 

– 

– 

– 

–

–

–

–

87

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

10.  Investments Accounted for using the Equity Method

Non Current

Investments at equity accounted amount:

Associated entities – unlisted shares 

Associated entities – listed shares 

total investments in associates 

Fair value of listed investments:

Melco Crown Entertainment Ltd (i) 

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

61,414 

1,083,321 

151,876 

978,288 

1,144,735 

1,130,164 

929,714 

1,613,685 

929,714 

1,613,685 

– 

– 

– 

– 

– 

–

–

–

–

–

(i)   Reflects Melco Crown share price at balance date, converted to Australian dollars. In accordance with Crown’s accounting policies, 

recoverable amount is the greater of fair value less costs to sell and value in use. The Melco Crown carrying amount does not exceed  
its recoverable amount.

Investments in Associates 

Reporting 
Date 

Principal Activity 

Country of 
Incorporation 
or Residence 

% Interest

30 June 
2009 

30 June 
2008

Melco Crown Entertainment Ltd 

31 Dec(ii) 

Resort/Casino and  
gaming machine operator  Macau 

Aspinalls Holdings (Jersey) Ltd 

30 June 

Casino and gaming  
machine operator 

Betfair Australasia Pty Ltd 

30 April(ii) 

Betting exchange 

Gateway Casinos 

31 Dec(ii) 

Cannery Casino Resorts LLC 

31 Dec(ii) 

Casino and gaming 
machine operator 

Casino and gaming 
machine operator 

(ii)   The Group uses 30 June results to equity account for the investments.

U.K. 

Australia 

Canada 

USA 

36.4 

50.0 

50.0 

50.0 

– (iii) 

37.9

50.0

50.0

50.0

–

(iii)   Crown has subscribed for a preferred instrument in Cannery. Subject to regulatory approval, the preferred instrument carries with it the 
right to be converted to an equity entitlement of 24.5%. The preferred instrument has no coupon and is non-participating and as such 
Crown has not reflected any share of Cannery’s profit in its 2009 results.

88

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.  Investments Accounted for using the Equity Method  continued
CoNSolIdatEd 

PaRENt ENtIty 

Note 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

N
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s

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Share of associates’ revenue and profits/(losses)

Share of associates’:

Revenue 

Operating profit/(loss) before income tax 

Income tax benefit/(expense) 

Share of associates’ net profit/(loss)  
after income tax 

661,130 

654,845 

(133,030) 

7,071 

37,964 

(2,493) 

2 

(125,959) 

35,471 

Carrying amount of investments in associates 

Balance at the beginning of the financial year 

1,130,164 

915,211 

Carrying amount of investments in associates  
acquired during the year 

Share of associates’ net profit/(loss) for the year 

Dividends received or receivable 

Gain/(loss) on issue of shares by associate 

Impairment of investments 

Foreign exchange movements 

Carrying amount of investments in associates  
disposed of during the year 

Carrying amount of investment in associates  
at the end of the financial year 

Represented by:

Investments at equity accounted amount:
•	 Melco Crown  
•	 Aspinalls 
•	 Betfair 
•	 Gateway 
•	 Cannery 

the consolidated entity’s share of the assets  
and liabilities of associates in aggregate

Current assets 

Non-current assets 

Current liabilities 

Non-current liabilities 

Net assets 

Retained profits/(accumulated losses) of the  
consolidated entity attributable to associates

Balance at the beginning of the financial year 

Share of associates’ net profits/(losses) 

Disposal of associated entities 

533,148 

(125,959) 

79,586 

35,471 

– 

(66,659) 

(12,063) 

158,035 

(509,855) 

– 

129,300 

(266,453) 

– 

274,973 

1,144,735 

1,130,164 

1,083,321 

978,287 

– 

11,829 

– 

49,585 

85,489 

16,948 

49,440 

– 

1,144,735 

1,130,164 

419,658 

377,684 

2,694,416 

2,102,728 

(343,794) 

(255,979) 

(1,807,980) 

(1,138,693) 

962,300 

1,085,740 

(75,324) 

(125,959) 

79,641 

35,471 

– 

(190,436) 

Balance at the end of the financial year 

(201,283) 

(75,324) 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

89

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

10.  Investments Accounted for using the Equity Method  continued
The investment in Gateway Casinos is no longer equity accounted as the investment was written down to $nil at  
31 December 2008. The Group’s share of unrecognised losses from 1 January 2009 to 30 June 2009 was $101.6 million.

Impairment Charge

Based on detailed impairment testing performed, an impairment loss of $509.9 million has been recorded against the Group’s 
investment in equity accounted associates for the year ended 30 June 2009 (2008: $nil).

The Group’s investments in Aspinalls and Gateway have both been written down to $nil, resulting in an impairment loss  
of $131.7 million. The Group’s investment in Cannery was written down to $49.6 million, resulting in a $378.2 million 
impairment loss.

As at 30 June 2009, the carrying value of the Group’s equity accounted investment in Cannery was determined using the 
value in use basis. For the purposes of impairment testing the investment, management estimated the present value of the 
future cash flows expected to be generated from Cannery from its operations and the proceeds from ultimate disposal of the 
investment. These calculations use cash flow projections based on past performance and expectations for the future using  
a five year cash flow period. The implied terminal growth rate beyond the five year period does not exceed the long-term 
growth rates for the business unit in which Cannery operates. A post-tax discount rate of 9% was used in the impairment 
review calculations.

Any reasonable possible change in key assumptions used would not cause the carrying amount of the investment in Cannery 
to exceed its recoverable amount.

11.  Available-for-sale Financial Assets

at fair value

Shares – unlisted (Australia) 

Shares – unlisted (US) 

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

36,728 

– 

36,728 

37,014 

470,475 

507,489 

– 

– 

– 

–

–

–

Available-for-sale financial assets consist of investments in ordinary shares, and therefore have no fixed maturity date or 
coupon rate.

The fair value of the unlisted available-for-sale financial assets has been estimated using valuation techniques based on 
assumptions that are not supported by observable market prices or rates. Management believes the estimated fair values 
resulting from the valuation techniques are recorded in the balance sheet and the related changes in fair values recorded  
in the income statement are reasonable and the most appropriate at the balance sheet date.

Based on the valuation techniques performed, an impairment loss of $470.5 million has been recorded against the value  
of US unlisted shares held by the Group at 30 June 2009.

12.  Other Financial Assets

Non current

Unlisted shares in controlled entities 

90

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

– 

– 

– 

– 

8,645,201 

8,645,201

8,645,201 

8,645,201

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13.  Property, Plant and Equipment

CoNSolIdatEd 

Freehold 
land and 
  buildings 
$’000 

  Buildings 
on 
leasehold 

Plant & 
land  equipment 
$’000 

$’000 

 Construction 
work in 

Total 
Leased 
property,  
plant &  plant and 
progress  equipment  equipment 
$’000 

$’000 

$’000 

year ended 30 June 2009

At 1 July 2008, net of  
accumulated depreciation  
and impairment 

Additions 

Disposals 

674,551 

670,558 

444,827 

65,041 

–  1,854,977 

Depreciation expense 

(16,420) 

(27,450) 

(85,681) 

Reclassification/ transfer 

26,358 

– 

74,861 

(101,219) 

883 

34,395 

65,502 

308,474 

(9) 

– 

(41) 

– 

– 

– 

– 

– 

– 

409,254 

(50) 

(129,551) 

– 

at 30 June 2009, net of  
accumulated depreciation  
and impairment 

at 1 July 2008

685,363 

677,503 

499,468 

272,296 

–  2,134,630 

Cost (gross carrying amount) 

812,165 

987,441  1,184,250 

65,041 

10,679  3,059,576 

Accumulated depreciation  
and impairment 

(137,614) 

(316,883) 

(739,423) 

– 

(10,679)  (1,204,599) 

Net carrying amount 

674,551 

670,558 

444,827 

65,041 

–  1,854,977 

at 30 June 2009

Cost (gross carrying amount) 

839,644  1,018,705  1,290,588 

272,296 

10,679  3,431,912 

Accumulated depreciation  
and impairment 

(154,281) 

(341,202) 

(791,120) 

– 

(10,679)  (1,297,282) 

Net carrying amount 

685,363 

677,503 

499,468 

272,296 

–  2,134,630 

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PaRENt 
ENtIty

Total 
$’000

–

–

–

–

–

–

–

–

–

–

–

–

91

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
N
o
t
e
s

t
o

t
h
e

i

F
n
a
n
c
a

i

l

S

t
a
t
e
m
e
n
t
s

PaRENt 
ENtIty

Total 
$’000

–

–

–

–

–

–

–

–

–

–

FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

13.  Property, Plant and Equipment  continued

CoNSolIdatEd 

Freehold 
land and 
buildings 
$’000 

year ended 30 June 2008

  Buildings 

on  Leasehold 
improve- 

leasehold 
land 
$’000 

Plant & 
ments  equipment 
$’000 
$’000 

 Construction 
work in 

Total 
Leased 
property,  
plant &  plant and 
progress  equipment  equipment 
$’000 

$’000 

$’000 

At 1 July 2007,  
net of accumulated  
depreciation and  
impairment 

Additions 

Disposals 

694,185 

654,001 

5,374 

451,806 

25,485 

209  1,831,060 

7,187 

43,103 

46,274 

102,522 

Disposal of entities 

(40,828) 

(2,933) 

– 

– 

Depreciation expense 

(16,776) 

(26,662) 

Reclassification/transfer  33,716 

116 

– 

– 

(5,374) 

– 

– 

(1,191) 

(5,152) 

(72,444) 

– 

– 

25,534 

(59,366) 

– 

– 

199,086 

(4,124) 

– 

– 

(115,882) 

– 

(3,600) 

(209) 

(55,163) 

at 30 June 2008,  
net of accumulated  
depreciation and  
impairment 

at 1 July 2007

Cost (gross carrying  
amount) 

Accumulated  
depreciation and  
impairment 

674,551 

670,558 

– 

444,827 

65,041 

–  1,854,977 

820,225 

947,206 

5,838  1,146,271 

25,485 

10,981  2,956,006 

(126,040) 

(293,205) 

(464) 

(694,465) 

– 

(10,772)  (1,124,946) 

Net carrying amount  694,185 

654,001 

5,374 

451,806 

25,485 

209  1,831,060 

92

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14.  Licences

year ended 30 June 2009

At 1 July 2008, net of accumulated depreciation and impairment 

Amortisation expense 

at 30 June 2009, net of accumulated amortisation and impairment 

at 1 July 2008

Cost (gross carrying amount) 

Accumulated depreciation and impairment 

Net carrying amount 

at 30 June 2009

Cost (gross carrying amount) 

Accumulated depreciation and impairment 

Net carrying amount 

year ended 30 June 2008

At 1 July 2007, net of accumulated depreciation and impairment 

Amortisation expense 

at 30 June 2008, net of accumulated amortisation and impairment 

at 1 July 2007

Cost (gross carrying amount) 

Accumulated depreciation and impairment 

Net carrying amount 

(i)  Purchased as part of a business combination

The casino licence premiums are carried at cost and amortised on a straight line basis over their useful lives.  
The Crown licence is being amortised over 34 years. The Burswood licence is perpetual and no amortisation is charged.

CoNSolIdatEd  ENtIty

PaRENt  

Casino 
licence(i) 
$’000 

Total
$’000

N
o
t
e
s

t
o

t
h
e

i

F
n
a
n
c
a

i

666,868 

(7,471) 

659,397 

774,899 

(108,031) 

666,868 

774,899 

(115,502) 

659,397 

674,339 

(7,471) 

666,868 

774,899 

(100,560) 

674,339 

l

S

t
a
t
e
m
e
n
t
s

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

93

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

15.  Other Intangible Assets

N
o
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e
s

t
o

t
h
e

i

F
n
a
n
c
a

i

CoNSolIdatEd 

PaRENt 
ENtIty

Casino  
  Management  
agreement(i) 

Goodwill(i) 

$’000 

$’000 

Other 

$’000 

Total 

$’000 

Total

$’000

l

S

t
a
t
e
m
e
n
t
s

year ended 30 June 2009

At 1 July 2008, net of accumulated  
depreciation and impairment 

Amortisation expense 

at 30 June 2009, net of accumulated  
amortisation and impairment 

at 1 July 2008

11,892 

176,461 

– 

(6,945) 

948 

(20) 

189,301 

(6,965) 

11,892 

169,516 

928 

182,336 

Cost (gross carrying amount) 

11,892 

245,279 

1,025 

258,196 

Accumulated depreciation and impairment 

– 

(68,818) 

Net carrying amount 

at 30 June 2009

11,892 

176,461 

(77) 

948 

(68,895) 

189,301 

Cost (gross carrying amount) 

11,892 

245,279 

1,025 

258,196 

Accumulated depreciation and impairment 

– 

(75,763) 

Net carrying amount 

11,892 

169,516 

(97) 

928 

(75,860) 

182,336 

year ended 30 June 2008

At 1 July 2007, net of accumulated  
depreciation and impairment 

Disposal of entities 

Amortisation expense 

at 30 June 2008, net of accumulated  
amortisation and impairment 

at 1 July 2007

26,095 

(14,203) 

183,426 

– 

– 

(6,965) 

968 

– 

(20) 

210,489 

(14,203) 

(6,985) 

11,892 

176,461 

948 

189,301 

Cost (gross carrying amount) 

26,095 

245,279 

1,025 

272,399 

Accumulated depreciation and impairment 

– 

(61,853) 

Net carrying amount 

26,095 

183,426 

(57) 

968 

(61,910) 

210,489 

(i)  Purchased as part of a business combination

Goodwill is considered to have an indefinite life and is tested annually for impairment (see note 16).

The useful life of the casino management agreement is 34 years, and is amortised on a straight line basis.

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

94

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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16.  Impairment Testing of Intangible Assets 

Impairment tests for intangible assets

Intangible assets deemed to have indefinite lives are allocated to the Group’s cash generating units (CGU’s) identified 
according to business segment.

The recoverable amount of a CGU is determined based on fair value less costs to sell. Fair value less costs to sell is calculated 
using a discounted cash flow methodology covering a specified period, with an appropriate residual value at the end of that 
period, for each segment. The methodology utilises cash flow forecasts that are based primarily on business plans presented 
to and approved by the Board.

The following describes each key assumption on which management has based its cash flow projections to undertake 
impairment testing of goodwill and casino licences.

(i)  Cash flow forecasts

Cash flow forecasts are based on five year financial forecasts presented to and approved by the board.

(ii)  Residual value

Residual value is calculated using a perpetuity growth formula based on the cash flow forecast using a weighted average cost 
of capital (after tax) and forecast growth rate.

(iii)  Forecast growth rates

Forecast growth rates are based on past performance and management’s expectations for future performance in each segment.

(iv)  Discount rates

Discount rates used are the weighted average cost of capital (after tax) for the Group, risk adjusted where applicable.

17.  Trade and Other Payables

Current – unsecured

Trade and other payables  

Deferred income 

Non Current – unsecured

Other 

Deferred Income 

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

284,499 

249,296 

8,270 

5,812 

292,769 

255,108 

67 

4,030 

4,097 

59 

24,000 

24,059 

– 

– 

– 

– 

– 

– 

2008

$’000

13,408

–

13,408

–

–

–

95

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

18.  Interest-Bearing Loans and Borrowings

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

N
o
t
e
s

t
o

t
h
e

i

F
n
a
n
c
a

i

l

S

t
a
t
e
m
e
n
t
s

Current – unsecured

Bank Loans – unsecured 

Non Current – unsecured

Bank Loans – unsecured 

Capital Markets Debt – unsecured 

Derivatives 

Loans from controlled entities 

Fair Value Disclosures

20,000 

20,000 

20,000 

20,000 

500,000 

2,070,000 

534,058 

281,634 

7,600 

3,100 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

1,037,158 

2,359,234 

2,210,103 

2,241,724

– 

2,210,103 

2,241,724

Details of the fair value disclosures of the Group’s interest bearing liabilities are set out in note 34.

Financial Risk Management

Information about the Group’s exposure to interest rate and foreign currency changes is provided in note 34.

Financing and Credit Facilities:

Unsecured credit facilities are provided as part of the overall debt funding structure of the Crown Group as follows:

Facility Type 

Bank Facilities

Facility 
Amount 

$’000 

Drawn 

Letters of 
Amount  Credit Issued 

Available  Expiry

$’000 

$’000 

$’000  Dates

Bilateral Multi Option Facility 

Syndicated Multi Option Facility 

Syndicated Revolving and Term Loan Facility 

Australian Dollar Bilateral Facilities 

US Dollar Bilateral Facilities(i) 

120,000 

450,000 

600,000 

1,187,650 

440,007 

20,000 

38,373 

61,627  October 2010

– 

232,105 

217,895  August 2010

300,000 

200,000 

– 

– 

– 

– 

300,000 

June 2013

987,650 

2009 – 2013

440,007 

2010 – 2013

2,797,657 

520,000 

270,478 

2,007,179 

debt Capital Markets

Medium Term Note 

Euro Medium Term Note 

US Private Placement(i) 

114,600 

174,634 

247,924 

537,158 

114,600 

174,634 

247,924 

537,158 

– 

– 

– 

– 

–  March 2011

July 2036

2015 – 2020

– 

– 

– 

total 

3,334,815 

1,057,158 

270,478 

2,007,179 

(i)  Converted at an exchange rate of AUD $1.00 = USD $0.8067.

96

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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18.  Interest-Bearing Loans and Borrowings  continued
The bank facilities are provided on an unsecured basis by domestic and international banks.

The debt capital markets drawn amounts represent unsecured notes issued to domestic and international debt investors.

Crown is able to make advances and issue letters of credit under the syndicated facilities and the bilateral facilities which  
are multi option in nature. For details relating to letters of credit issued, refer to note 27.

Each of the above mentioned facilities is supported by a Group guarantee from Crown and certain of its subsidiaries and 
impose various affirmative covenants on Crown, including compliance with certain financial ratios and negative covenants, 
including restrictions on encumbrances, and customary events of default, including a payment default, breach of covenants, 
cross-default and insolvency events.

19.  Provisions

At 1 July 2008 

Arising during the year 

Utilised during the year 

Amount reversed during the year 

Reclassification to payables during the year 

at 30 June 2009 

Current 2009 

Non-current 2009 

Current 2008 

Non-current 2008 

CoNSolIdatEd 

Employee 
  entitlements 

$’000 

108,948 

75,963 

(62,384) 

(236) 

– 

122,291 

94,782 

27,509 

122,291 

70,790 

38,157 

Other 

$’000 

34,960 

18,621 

(2,968) 

(5,387) 

(3,124) 

42,102 

26,102 

16,000 

42,102 

Total 

$’000 

143,908 

94,584 

(65,352) 

(5,623) 

(3,124) 

164,393 

120,884 

43,509 

164,393 

34,960 

105,750 

– 

38,157 

108,947 

34,960 

143,907 

PaRENt  
ENtIty

Total

$’000

–

–

–

–

–

–

–

–

–

–

–

–

20.  Other Financial Liabilities

CoNSolIdatEd 

PaRENt ENtIty 

Current

Payables on forward exchange contracts 

Non Current

Payables on interest rate swaps 

Payables on cross currency swaps 

Payables on forward exchange contracts 

Other financial liabilities are outlined in note 34.

2009 

$’000 

3,400 

3,400 

18,300 

38,300 

3,900 

60,500 

2008 

$’000 

2009 

$’000 

2008

$’000

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

97

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

N
o
t
e
s

t
o

t
h
e

i

F
n
a
n
c
a

i

l

S

t
a
t
e
m
e
n
t
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21.  Contributed Equity

Issued share capital
Ordinary shares fully paid  

Movements in issued share capital
Carrying amount at the beginning of the financial year  
Issue of shares in acquisition of PBL 
Issue of shares through Executive Share Plan(i) 
Capital Reduction 
Return of capital by way of CMH Demerger 
Other 
Partial closure of Executive Share Plan 
Shares issued 

Carrying amount at the end of the financial year  

Issued share capital
Ordinary shares fully paid  

Movements in issued share capital
Balance at the beginning of the financial year  
Issue of shares through Executive Share Plan(i) 
Share buyback 
Shares issued 
Transfer on demerger 

CoNSolIdatEd 

PaRENt ENtIty 

2009 
$’000 

2008 
$’000 

2009 
$’000 

2008
$’000

634,364 

258,149 

10,114,805 

9,738,590

258,149 
– 
– 
– 
– 
– 
39,065 
337,150 

634,364 

2,454,986 
– 
3,250 
(2,069,032) 
(131,560) 
505 
– 
– 

9,738,590 
– 
– 
– 
– 
– 
39,065 
337,150 

–
14,345,281
–
(2,069,032)
(2,551,805)
14,146
–
–

258,149 

10,114,805 

9,738,590

CoNSolIdatEd 

PaRENt ENtIty 

2009 
No. 

2008 
No. 

2009 
No. 

2008
No.

  758,394,185  689,676,925  758,394,185  689,676,925

  689,676,925  688,486,925  689,676,925 
– 
– 
68,717,260 

– 
– 
68,717,260 
– 

1,190,000 
– 
– 
– 

8
–
(8)
–
–  689,676,925

Balance at the end of the financial year  

  758,394,185  689,676,925  758,394,185  689,676,925

(i)  Shares issued through the Executive Share Plan are accounted for as share based payments. Refer to note 26.

In December 2008, Crown undertook an underwritten equity placement of shares to raise $300 million in new capital.

In February 2009, Crown launched a Share Purchase Plan which gave eligible shareholders the opportunity to subscribe for  
up to $4,999.50 worth of new shares in Crown at $4.95 per share. The Share Purchase Plan raised approximately $40.2 million 
in additional capital.

Terms and Conditions of Contributed Equity

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding-up of the Company in proportion  
to the number of shares held.

The voting rights attaching to ordinary shares provide that each ordinary shareholder present in person or by proxy or attorney 
or being a corporation present by representative at a meeting shall have:

(a) on a show of hands, one vote only;

(b) on a poll, one vote for every fully paid ordinary share held.

Effective 1 July 1998, the Corporations Legislation in place abolished the concepts of authorised capital and par value shares. 
Accordingly, the Parent entity does not have authorised capital nor par value in respect of its issued shares.

Capital Management

When managing capital, management’s objective is to maintain optimal returns to shareholders and benefits for other stakeholders. 
Management also aims to maintain a capital structure that ensures the lowest cost of capital available to the entity.

During 2009, management paid dividends of $336.5 million. Management’s target dividends going forward is to pay the  
higher of 37 cents per share or 65% of normalised full year NPAT, subject to the Group’s financial position.

98

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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22.  Reserves and Retained Earnings

Foreign currency translation reserve 

Employee equity benefits reserve 

Net unrealised gains reserve 

Cash flow hedge reserve 

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

(94,107) 

(280,576) 

9,392 

5,712 

632,593 

451,087 

(63,900) 

– 

2009 

$’000 

– 

9,392 

– 

– 

2008

$’000

–

5,712

–

–

483,978 

176,223 

9,392 

5,712

Foreign Currency translation Reserve

The foreign currency translation reserve is used to record  
exchange differences arising from the translation of the  
financial statements of foreign operations.

Balance at the beginning of the financial year 

(280,576) 

(388) 

Net exchange difference on translation of foreign operations  

186,469 

(279,548) 

Disposal of entities 

Balance at the end of the financial year  

– 

(640) 

(94,107) 

(280,576) 

Employee Equity Benefits Reserve

The employee equity benefits reserve is used to record  
share based remuneration obligations to executives  
in relation to ordinary shares

Balance at the beginning of the financial year  

Disposal of entities 

Charged to the income statement  

Transfer on demerger 

Transfer to controlled entities 

5,712 

– 

3,680 

– 

– 

10,340 

(8,300) 

3,672 

– 

– 

Balance at the end of the financial year  

9,392 

5,712 

Net Unrealised Gains Reserve

The net unrealised gains reserve records the movement  
from changes in associates equity

Balance at the beginning of the financial year  

451,087 

340,304 

Disposal of entities 

Change in equity accounted investments  
due to change in associates equity 

Balance at the end of the financial year 

– 

159 

181,506 

632,593 

110,624 

451,087 

Cash Flow Hedge Reserve

The cash flow hedge reserve records the portion of the  
gain or loss on a hedging instrument in a cash flow hedge  
that is determined to be an effective hedge.

Balance at the beginning of the financial year 

Movement in interest rate swaps 

Movement in cross currency swaps 

Movement in forward exchange contracts 

Balance at the end of the financial year 

– 

(18,300) 

(38,300) 

(7,300) 

(63,900) 

– 

– 

– 

– 

– 

– 

– 

5,712 

– 

– 

– 

3,680 

9,392 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

–

3,081

2,631

5,712

–

–

–

–

–

–

–

99

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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o
t
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a

i

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S

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a
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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

22.  Reserves and Retained Earnings  continued   

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

Retained Earnings

Balance at the beginning of the financial year 

3,846,972 

3,060,042 

(3,162,203) 

–

Net profit/(loss) attributable to members of Crown 

(1,197,904) 

3,546,432 

344,631 

(2,992,682)

Total available for appropriation 

Dividends provided for or paid 

Internal Demerger distribution 

2,649,068 

6,606,474 

(2,817,572) 

(2,992,682)

(331,080) 

(339,257) 

(331,080) 

(169,521)

– 

(2,420,245) 

– 

–

Balance at the end of the financial year  

2,317,988 

3,846,972 

(3,148,652) 

(3,162,203)

23.  Expenditure Commitments

(a)  Capital expenditure commitments

Estimated capital expenditure contracted for  
at balance date, but not provided for, payable:
•	 within one year 
•	 after one year but not more than five years 

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

265,081 

96,641 

361,722 

321,821 

118,632 

440,453 

– 

– 

– 

–

–

–

At 30 June 2009, the Group has capital expenditure commitments principally relating to funding various projects at Burswood 
and Crown Melbourne casinos.

(b)  Non cancellable operating lease commitments

Payable within one year 

Payable after one year but not more than five years 

Payable more than five years 

CoNSolIdatEd 

PaRENt ENtIty

2009 

$’000 

993 

2,762 

1,485 

5,240 

2008 

$’000 

2,479 

10,351 

1,918 

14,748 

2009 

$’000 

2008

$’000

– 

– 

– 

– 

–

–

–

–

The Group has entered into non-cancellable operating leases. The leases vary in contract period depending on the asset 
involved but generally have an average lease term of approximately 4 years (2008: 6 years). Operating leases include 
telecommunications rental agreements and leases on assets including motor vehicles, land and buildings and items of plant 
and equipment. Renewal terms are included in certain contracts, whereby renewal is at the option of the specific entity that 
holds the lease. On renewal, the terms of the leases are usually renegotiated. There are no restrictions placed upon the lessee 
by entering into these leases.

In addition, in 1993 Crown Melbourne entered into a ninety-nine year lease agreement for the site upon which Crown Melbourne 
Entertainment complex is located. For years one to forty inclusive the annual rent payable by the parent entity is one dollar  
per annum. For years forty-one to ninety-one inclusive the annual rent payable will be the then current market rent for the site. 
The aggregate lease expenditure contracted for at balance date but not provided for which is disclosed in this report does not 
include an estimate for the rent payable for years forty-one to ninety-nine inclusive due to the uncertainty of these amounts. 

100

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24.  Cash Flow Statement Reconciliation

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

N
o
t
e
s

t
o

t
h
e

(a)  Cash balance represents:
•	 cash on hand and at bank 
•	 deposits at call 

(b)   Reconciliation of the profit/(loss) after tax  
to the net cash flows from operating activities

236,774 

134,419 

278,724 

2,228,545 

515,498 

2,362,964 

928 

– 

928 

–

–

–

Profit/(loss) after tax 

(1,197,904) 

3,546,432 

344,631 

(2,992,682)

i

F
n
a
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S

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a
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t
s

Depreciation and amortisation:
•	 property, plant and equipment 
•	 intangibles 
(Profit)/loss on sale of property, plant and equipment 

Unrealised foreign exchange (gain)/loss 

(Profit)/loss on disposal of investments 

Share of associates’ net (profit)/loss 

Impairment and write down of investments  

Dividends received from associates 

Executive Share Plan expense 

Changes in assets and liabilities

(Increase)/decrease in trade and other receivables 

(Increase)/decrease in doubtful debts 

(Increase)/decrease in inventories 

(Increase)/decrease in prepayments 

(Increase)/decrease in deferred income tax asset 

(Increase)/decrease in other assets 

(Decrease)/increase in payables 

129,551 

115,882 

18,433 

(102) 

(10,426) 

18,271 

2,229 

(523) 

– 

(3,381,154) 

125,959 

(35,471) 

1,357,848 

239,163 

– 

3,680 

66,659 

2,692 

– 

– 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

–

3,168,144

–

(28,246) 

(337,000) 

(175,462)

(12,631) 

14,223 

(4,719) 

(1,023) 

(3,565) 

(7,074) 

6,614 

(3,359) 

(2,773) 

1,504 

302 

(3,517) 

117,495 

(Decrease)/increase in current income tax liability 

(16,824) 

(20,404) 

(Decrease)/increase in provisions for employee entitlements   

(Decrease)/increase in other provisions 

(Decrease)/increase in deferred income tax liability 

4,925 

(14,478) 

(10,051) 

3,196 

(69,287) 

930 

Net cash flows from operating activities 

382,436 

570,021 

Bank Overdraft Facilities

The consolidated entity has bank overdraft facilities available as follows:

Bank 

ANZ Banking Group Limited 

Citibank NA 

2009 

2008

A$10 million 

A$10 million

  US$10 million  US$10 million

There were no drawn down amounts at 30 June 2009.

– 

– 

– 

(7,779) 

– 

(40,342) 

40,490 

– 

– 

– 

– 

–

–

–

–

–

–

–

–

–

–

–

101

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

25.  Events After the Balance Sheet Date
Subsequent to 30 June 2009, the directors of Crown announced a final dividend on ordinary shares in respect of the year 
ended 30 June 2009. The total amount of the dividends is $144.1 million, which represents a 60% franked dividend of  
19 cents per share. The dividend has not been provided for in the 30 June 2009 financial statements.

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26.  Executive Share Plan
Crown operates an Executive Share Plan (ESP) which was approved at the 1994 PBL Annual General Meeting. No ESP 
shares were issued to executives in the current financial year.

On 25 May 2009, Crown announced that it had resolved to partially wind up the ESP as it related to Crown shares held  
by persons who have not been employed in the day to day operations of Crown or one of its gaming subsidiaries or joint 
ventures. The decision was made having regard to the underlying objectives of the ESP.

Prior to the partial wind up, there were 11,029,826 Crown ESP shares on issue held by 63 participants. As a result of the 
partial closure, the number of Crown ESP shares was reduced to 6,073,815 which are held by 31 Crown employees.

Crown ESP shares are subject to a performance condition, requiring a 7% compound annual growth in the Crown share  
price in order that the relevant portion of shares to vest and be released from restrictions under the ESP.

At the date of this Report, a total of 31 ESP participants hold, in total, 6,073,815 Crown ESP shares or 0.8% percent  
of Crown’s issued capital.

ESP share movement 

Shares at the beginning of the financial year 

Granted (i.e. issued) during the year 

Granted (i.e. issued) during the year as a consequence of PBL Scheme election 

Forfeited 

Vested (and sold) during the year 

Shares on issue at the end of the financial year 

Loans to executives at the beginning of the financial year 

ESP loans issued during the year 

Cash consideration paid under PBL scheme 

Loan balance transferred to CMH 

Loans repaid and satisfied during the year 

loans to executives at year end 

Methodology

2009 
No. 

2008 
No.

11,449,826 

9,655,000

– 

– 

1,190,000

958,469

(5,376,011) 

(308,643)

– 

(45,000)

6,073,815 

11,449,826

  $125,751,938  $165,839,800

–  $22,717,300

– 

– 

($15,180,000)

($42,615,575)

($55,493,625) 

($5,009,587)

  $70,258,313  $125,751,938

External valuers have used a Monte Carlo simulation model combined with a Black Scholes option pricing model to value the 
ESP this year. The value per share granted for each allotment incorporates the share price growth performance conditions.

The Monte Carlo simulation is a technique used to simulate future TSRs. The assumptions that underpin Black Scholes are 
used in a Monte Carlo simulation. The key assumptions are:

•	 Share price movement conforms to a lognormal distribution;

•	 Market efficiency; and

•	 Risk neutral valuation.

Using an estimate of the future standard deviation (volatility) of returns and the risk neutral valuation assumption (allowing the 
use of the risk free interest rate), the share price return distribution of a company at a future date is estimated. The Monte Carlo 
simulation technique simulates possible share price returns conforming to that distribution. At each simulation, the share price 
is also simulated, meaning an equity instrument can be valued at that date.

The share price simulated at one vesting date is used to simulate the share price at the next vesting date. If the target was  
not met at the earlier date, the unvested portion is carried to the next vesting date in the simulation.

102

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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26.  Executive Share Plan  continued

Non transferability of the plans

During the period from grant date to vesting, executives cannot sell their plan rights. However, no adjustment is made  
to the fair values for this, as non-transferability is due to the executive having not yet earned the right to the plan (through  
the provision of their services), rather than a restriction on the underlying value of the plan rights.

After vesting, the holders have until expiry to “exercise” the plan. Since the plan rights are not transferable, liquidity can only  
be obtained by exercising the plan rights and selling the underlying shares. In the case of the ESP, given the seniority of the 
holders and the benefit of the limited recourse feature, it is assumed the ESP will be held until expiry.

Dilution

When an investor exercises an exchange traded option, there is no change in either the company’s assets or the number of 
shares outstanding. However, when a company issued option is exercised, the number of shares outstanding will increase and 
the underlying assets of the company will be increased by the amount of the exercise proceeds. Any dilution of the share price 
of Crown which might arise on the issue of new shares following exercise of the ESP would be immaterial, given the number 
of existing shares on issue. Accordingly, no adjustment to the value of the ESP has been made for potential dilution.

Other assumptions applied by external valuer
•	 PBL’s share price was the loan amount per share as advised by Crown to the external valuer at the grant date for the ESP;

•	 The risk free rate is the yield on an Australian Government Bond with a life similar to the expected life at the valuation date;

•	 Expected volatility was based on PBL’s historical share price movement preceding the valuation date and the implied 

volatility on exchanged traded options; and

•	 The dividend yield was calculated based on the consensus broker EPS forecast divided by PBL’s share price.

27.  Contingent Liabilities and Related Matters

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

Unsecured 

270,478 

354,187 

270,478 

354,187

Contingent liabilities related primarily to the following:

Controlled Entities

(i)   Under the terms of a deed entered into in accordance  

with the ASIC Class Order 98/1418, the parent entity has  
undertaken to meet any shortfall which might arise on the  
liquidation of controlled entities which are party to the deed 

(ii)   The consolidated entity and parent entity have issued  
letters of credit to the State of Victoria in respect of  
obligations of Crown Melbourne Limited 

(iii)   The consolidated entity and parent entity have made  

guarantees in relation to commitments of certain of its  
associated entities 

(iv)   The consolidated entity and parent entity have made  

certain guarantees regarding contractual, performance  
and other commitments 

– 

– 

– 

–

185,000 

185,000 

185,000 

185,000

68,429 

150,961 

68,429 

150,961

17,049 

18,226 

17,049 

18,226

The probability of having to meet these contingent liabilities is unlikely, and therefore it is not practicable to disclose an 
indication of the uncertainties relating to each amount or the timing of any outflows.

103

 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

28.  Auditors’ Remuneration

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CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

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amounts received, or due and receivable,  
by Ernst & young (australia) for:

Auditing the accounts 

Taxation services 

Other services
•	 Assurance related 
•	 Assurance services relating to restructuring 
•	 Due diligence 
amounts received, or due and receivable, by other  
member firms of Ernst & young International for:

Auditing the accounts of controlled entities 

Other services
•	 Taxation services 
•	 Assurance Related 
•	 Due diligence 

887 

3,626 

764 

2,061 

6 

372 

– 

28 

463 

– 

80 

2 

642 

334 

24 

383 

25 

354 

amounts received, or due and receivable,  
by non Ernst & young audit firms for:

Auditing services 

298 

– 

5,462 

4,589 

29.  Earnings Per Share (EPS)

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

–

–

–

–

–

CoNSolIdatEd 

2009 

$’000 

2008

$’000

the following reflects the income and share data used in the calculations of basic  
and diluted EPS:

Net profit/(loss) used in calculating basic and diluted EPS 

(1,197,904) 

3,546,432

Weighted average number of ordinary shares used in calculating basic and diluted EPS (‘000) 

717,779 

689,206

the following reflects the income and share data used in the calculations of basic  
and diluted EPS:

Excluding the effect of discontinued operations:

Net profit/(loss) attributable to members of the parent 

Discontinued operations 

Net profit/(loss) excluding discontinued operations 

Net profit/(loss) used in calculating basic and diluted EPS 

Weighted average number of ordinary shares used in calculating basic and diluted EPS (‘000) 

717,779 

104

(1,197,904) 

3,546,423

– 

3,409,426

(1,197,904) 

(1,197,904) 

137,006

137,006

689,206

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29.  Earnings Per Share (EPS)  continued

CoNSolIdatEd

2009 

$’000 

2008

$’000

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Excluding the effect of discontinued operations and significant items:

Net profit/(loss) attributable to members of the parent 

Discontinued operations 

Significant items after tax 

Net profit/(loss) excluding discontinued operations and significant items 

Net profit/(loss) used in calculating basic and diluted EPS 

Weighted average number of ordinary shares used in calculating basic and diluted EPS (‘000)   

(1,197,904) 

3,546,432

– 

3,409,426

(1,440,100) 

(239,163)

242,196 

242,196 

717,779 

376,169

376,169

689,206

There are no transactions involving ordinary shares or potential ordinary shares that would significantly change the number  
of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these 
financial statements.

30.  Key Management Personnel Disclosures
The Company has applied the exemption under Corporations Amendments Regulation 2006 which exempts listed companies 
from providing remuneration in their annual report as required by paragraphs Aus 25.4 to Aus 25.7.2 of Accounting Standard 
AASB 124 Related Party Disclosures. These remuneration disclosures have been transferred to the remuneration report in 
pages 42 to 58 and have been audited.

(a)  Details of key management personnel

(i)  Directors

James D Packer 

Executive Chairman

John H Alexander 

Executive Deputy Chairman 

Christopher J Anderson 

Non-Executive Director (resigned 2 April 2009)

Benjamin A Brazil 

Non-Executive Director (appointed 26 June 2009)

Rowen B Craigie 

Chief Executive Officer and Managing Director

Christopher D Corrigan 

Non-Executive Director 

Rowena Danziger 

Non-Executive Director

Geoffrey J Dixon 

Non-Executive Director 

Ashok Jacob 

Non-Executive Director

Michael R Johnston 

Non-Executive Director 

David H Lowy 

Non-Executive Director 

Richard W Turner 

Non-Executive Director

(ii)  Executives

Robert Turner 

Chief Financial Officer – Crown Limited

David Courtney  

Chief Executive Officer – Crown Melbourne Limited

Barry Felstead 

Chief Executive Officer – Burswood Limited

105

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

30.  Key Management Personnel Disclosures  continued

(b)  Remuneration of key management personnel

Total remuneration for key management personnel for the Group and Parent Entity during the financial year are set out below:

Remuneration by category 

Short term 

Post employment 

Other 

Termination 

Long Term Incentives 

2009 
$ 

2008 
$

8,266,113 

13,403,580

224,389 

129,140 

405,282

388,267

175,000 

26,098,000

5,880,687 

5,524,218

14,675,329 

45,819,347

Further details are contained in the Remuneration Report.

(c)  Shareholdings of key management personnel

2009

Ordinary shares held in Crown (directly and indirectly)

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Directors 
(Including directors who 
left the Board during the year) 

James D Packer(iii) 

Christopher J Anderson(i) & (iv) 

John H Alexander(i), (ii) & (iv) 

Rowen B Craigie(v) 

Rowena Danziger(ii) 

David H Lowy 

Richard W Turner(i) & (ii) 

  Issued under 
Executive 

Balance 
  1 July 2008 

Balance 
Share Plan  Net Change  30 June 2009

  261,500,000 

315,194 

1,827,133 

2,341,102 

28,876 

137,250 

27,000 

– 

– 

– 

– 

– 

– 

– 

19,253,465  280,753,465

(298,990) 

16,204

(1,219,453) 

607,680

– 

2,341,102

2,020 

– 

2,373 

30,896

137,250

29,373

Directors not listed did not hold any Crown shares during the financial year.

Executives 

Robert Turner(i) 

David Courtney(i) & (ii) 

Barry Felstead 

  Issued under 
Executive 

Balance 
  1 July 2008 

Balance 
Share Plan  Net Change  30 June 2009

263,373 

643,802 

234,110 

– 

– 

– 

1,010 

56,575 

– 

264,383

700,377

234,110

(i)  Change is as a result of an election to take up an entitlement to shares under Crown’s Share Purchase Plan which closed on 20 March 2009.

(ii)   Change is a result of an election to take up an entitlement to an offer by Consolidated Press Holdings Limited (the CPH Offer) to sell shares 
to shareholders who, as result of Crown’s private placement announced 17 December 2008, would have had their interest diluted below 
their pre-placement interest. The CPH Offer was a condition of the ASX waiver allowing Consolidated Press Holdings Limited to participate 
in the placement.

(iii)   Change is as a result of a private placement of 20,202,020 shares made to Consolidated Press Holdings Limited on 27 March 2009 and 

the sale of 948,555 shares made pursuant to the CPH Offer.

(iv)   Change is the result of the partial closure of the Executive Share Plan as it related to Crown shares held by persons who had not been 
employed in day to day operations of Crown or one of its gaming subsidiaries or joint ventures. 300,000 of Mr Chris Anderson’s shares 
were ESP shares and 1,300,000 of Mr John Alexander’s shares were ESP shares.

(v)   All of Mr Rowen Craigie’s shares are ESP shares.

The Company does not have any options on issue.

106

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30.  Key Management Personnel Disclosures  continued

(c)  Shareholdings of key management personnel  continued

2008

Ordinary shares held in Crown (directly and indirectly)

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Directors 
(Including directors who 
left the Board during the year) 

James D Packer 

Christopher J Anderson 

John H Alexander 

Rowen B Craigie 

Rowena Danziger 

David H Lowy 

Christopher J Mackay (resigned 7 March 2008) 

Richard W Turner 

Balance 
 1 July 2007 
 (PBL Shares) 

  261,500,000  

315,194(iii) 

1,812,500(iii) 

Issued under 
Executive 

Balance 
Share Plan  Net Change  30 June 2008

– 

– 

– 

–  261,500,000

– 

315,194(iii)

14,633(ii) 

1,827,133

850,000(iii) 

1,150,000 

341,102(ii) 

2,341,102

22,876 

117,253 

100 

27,000 

– 

– 

– 

– 

6,000(i) 

28,876

19,997(ii) 

137,250

– 

– 

100

27,000

Directors not listed did not hold any Crown shares during the financial year.

Executives 

Geoffrey R Kleemann 

Guy Jalland 

Martin P Dalgleish  

David G Courtney 

Barry J Felstead 

Balance 
 1 July 2007 
Balance 
 (PBL Shares)(iv)  Share Plan  Net Change  30 June 2008

Issued under 
Executive 

350,000 

240,000 

240,000 

550,000 

200,000 

– 

– 

– 

– 

– 

– 

– 

– 

93,802(ii) 

34,110(ii) 

350,000

240,000

240,000

643,802

234,110

(i)   Change is as a result of an on-market transaction.

(ii)    Additional shares issued as a result of the shareholder electing the PBL Scheme Maximum Share consideration under the PBL Scheme.  

Mr John Alexander elected the PBL Scheme Maximum Share Consideration, in relation to only one parcel of shares (87,000).

(iii)  300,000 of Mr Chris Anderson’s shares are ESP shares, 1,300,000 if Mr John Alexander’s shares are ESP shares and all of Mr Rowen 

Craigie’s shares are ESP shares.

(iv)  All of the Executives’ shares are ESP shares except for Mr Geoff Kleemann. 240,000 of Mr Kleemann’s shares are ESP shares.

The Company does not have any options on issue.

107

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

30.  Key Management Personnel Disclosures  continued

(d)   Other transactions with director, key management personnel and their personally related entities

Consolidated Press Holdings Limited (“CPH”), an entity related to Mr James Packer provided corporate secretarial and 
administrative services to Crown and its controlled entities of $198,933 during the year (2008: $27,000). In addition CPH paid 
costs on behalf of Crown to third parties totalling $2,805,000 during the year (2008: $4,987,184); Crown has subsequently 
reimbursed CPH for all these payments at balance date.

Crown and its controlled entities provided CPH with accommodation for $105,000 (2008: $426,000) and banqueting and 
other services of $14,000 (2008: $240,000).

Consolidated Media Holdings (“CMH”) is an entity which is classified as a related party of Crown due to Crown and CMH 
having a majority of common directors. 

Crown and CMH jointly engaged certain legal and other advisers in relation to certain matters arising prior to the PBL demerger. 
Costs of these advisers are shared in a manner consistent with Section 14 of the PBL Scheme Booklet, generally Crown 
– 75% and CMH – 25%. In addition Crown provided CMH with Hotel services of $64,000 and banqueting services of  
$20,000 during the year. 

All transactions between the consolidated entity and its director related entities are conducted under normal commercial terms 
and conditions unless otherwise noted. 

31.  Related Party Disclosures

Parent entity

Crown Limited is the ultimate parent entity of the Group at 30 June 2009. During the comparative 2008 financial year 
Publishing and Broadcasting Limited was the ultimate parent up until the separation of PBL and Crown into two separate 
listed companies in December 2007. The related party transactions include transactions entered into with PBL related parties 
up until 11 December 2007 and Crown Limited related parties transactions from 12 December 2007 to 30 June 2008.

Controlled entities, associates and joint ventures

Interests in significant controlled entities are set out in note 32.

Investments in associates and joint ventures are set out in note 10.

Entity with significant influence over the Group

CPH, an entity related to Mr James Packer, holds 37.02% (2008: 37.92%) of the Company’s fully paid ordinary shares.

Key management personnel

Disclosures relating to key management personnel are set out in note 30, and in the Remuneration Report.

108

 
 
 
 
31.  Related Party Disclosures  continued

Transactions with related parties

The following table provides the total amount of transactions that were entered into with related parties for the relevant 
financial year:

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Rendering of services, other revenue or payments made  
by Crown on behalf of related parties –

Entities with significant influence over the Group

  CPH 

Associates

  SEEK Ltd 

  Hoyts Cinemas Group 

  Foxtel 

  PBL Media (Inc. ninemsn) 

  Melco Crown 

  Betfair 

  Aspers 

  Gateway 

Other Related Parties

  CMH 

Receiving of services or payments made by  
related parties on behalf of Crown –

Entities with significant influence over the Group

  CPH 

Associates

  SEEK Ltd 

  Hoyts Cinemas Group 

  Foxtel 

  PBL Media (Inc. ninemsn) 

  Melco Crown 

  Aspers 

  Gateway 

Other Related Parties

  CMH 

CoNSolIdatEd

2009 

$’000 

2008

$’000

119 

1,089

– 

– 

– 

– 

4,260 

240 

1,259 

10,235 

38

350

77

5,061

1,599

331

1,500

9,170

84 

7

3,004 

5,214

– 

– 

– 

– 

459 

1,490 

76 

47

233

333

1,732

86

191

26

1,634 

1,082

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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

31.  Related Party Disclosures  continued

Terms and conditions of transactions with related parties

All of the following transactions were conducted under normal commercial terms and conditions unless otherwise noted.

Crown made a further equity contribution of $63.6 million into Melco Crown during the year as part of the Melco Crown capital 
raising. Interest charged on loans previously advanced to Melco Crown was $0.9 million for the year (2008: $1.6 million). 
Crown provided Melco Crown accommodation for $7,000 and the use of IT systems for $1,120,581. In addition Crown 
provided IT and related services of $2,187,738 at cost to Melco Crown during the year. Amounts receivable from Melco 
Crown at 30 June 2009 in relation to all charges made during the year were $1,579,759.

Melco Crown provided $241,000 in Hotel and Other services to Crown during the year. In addition Melco Crown paid costs  
of $217,729 on behalf of Crown during the year which were subsequently reimbursed in full. 

Crown made further equity contributions of $3.8 million into Aspinalls during the year. Crown also provided additional loans  
to Aspinalls of $3.7 million during the year. Interest of $1.5 million (2008: $1.5 million) was charged on the loan for the year.  
In addition Aspinalls has paid costs of $1.5 million on behalf of Crown during the year. Crown has subsequently reimbursed  
all amounts paid on its behalf during the year.

Crown made further equity contributions of $8.4 million into Gateway during the year. Crown also provided additional loans  
to Gateway of $16.7 million. Interest of $10.1 million was charged on the loan for the year (2008: $9.2 million). In addition 
Gateway has paid costs of $76,000 on behalf of Crown during the year. Crown has subsequently reimbursed Gateway  
all amounts owing at 30 June 2009. Crown also paid costs of $36,000 on behalf of Gateway during the year which has 
subsequently been reimbursed in full as at 30 June 2009.

The loan balance with Betfair at 30 June 2009 was $7.7 million (2008: $7.7 million). No interest is payable on the loan.  
In addition Crown provided Betfair management services of $160,000 (2008: $331,000) and Hotel and Banqueting services  
of $80,000 during the year. 

For the year ended 30 June 2009, the Group has not made any allowance for doubtful debts relating to amounts owed by 
related parties as there have been no default of payment terms and conditions (2008: $nil). 

An impairment assessment is undertaken each financial year by examining the financial position of the related party and the 
market in which the related party operates to determine whether there is objective evidence that a related party receivable  
is impaired. When such objective evidence exists, the Group recognises an allowance for the impairment loss. During the 
financial year Crown has assessed Gateway’s outstanding loan to be impaired, this has resulted in a write down to the 
Gateway shareholder loan of $182.3 million, the outstanding balance being $nil at 30 June 2009.

110

 
 
 
 
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32.  Investment In Controlled Entities
The consolidated financial statements include the financial statements of Crown Limited and its controlled entities.  
Significant controlled entities and those included in a class order with the parent entity are:

Footnote 

2009 

2008 

 Place of 
Incorporation 
/Residence 

Beneficial Interest 
Held by the 
Consolidated Entity(i)

2009 

% 

2008

%

australia 

Parent Entity

Crown limited 

Artra Pty Ltd 

Burswood Limited 

Burswood Nominees Ltd 

Burswood Resort (Management) Ltd 

Crown Capital Golf Pty Ltd 

Crown Cyprus Limited 

Crown CCR Group Holdings One Pty Ltd 

Crown CCR Group Holdings Two Pty Ltd 

Crown CCR Group Holdings General Partnership 

Crown CCR Group Investments One LLC 

Crown CCR Group Investments Two LLC 

Crown CCR Holdings LLC 

Crown Entertainment Group Holdings Pty Ltd 

Crown Gateway Luxembourg Sarl 

Crown Group Finance Limited 

Crown Group Securities Ltd 

Crown Melbourne Limited 

Crown North America Holdings One Pty Ltd 

Crown North America Investments LLC 

Crown Overseas Investments Pty Ltd 

Crown Services (US) LLC 

Crown (Western Australia) Pty Ltd 

Flienn Pty Ltd 

Jade West Entertainment Pty Ltd 

Jemtex Pty Ltd 

Nine Television (Netherlands Antilles) Pty Ltd 

PBL Asia Investments Limited 

PBL (CI) Finance Limited 

PBL Cinema Holdings Pty Ltd 

PBL International Partnership 

Publishing and Broadcasting (Finance) Ltd 

Publishing and Broadcasting International Holdings Ltd 

Renga Pty Ltd 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

A 

B 

B 

B 

B 

B 

A 

B 

A 

A 

B 

B 

A 

A 

A 

A 

Australia 

Australia 

Australia 

Australia 

Australia 

Cyprus 

Australia 

Australia 

USA 

USA 

USA 

USA 

Australia 

Luxembourg 

Australia 

Australia 

Australia 

Australia 

USA 

Australia 

USA 

Australia 

Australia 

Australia 

Australia 

Australia 

 Cayman Islands 

 Cayman Islands 

Australia 

 United Kingdom 

A 

A 

Australia 

Bahamas 

Australia 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100 

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

(i)  The proportion of ownership interest is equal to the proportion of voting power held

A   These controlled entities have entered into a deed of cross guarantee with the parent entity under ASIC Class Order 98/1418 – the “Closed 

Group” (refer note 33).

B  Entity acquired or incorporated during the financial year.

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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

33.  Deed of Cross Guarantee
Certain controlled entities of Crown Limited, as detailed in note 32, are parties to a Deed of Cross Guarantee under which 
each company guarantees the debts of the others.

By entering into the deed, pursuant to ASIC Class Order 98/1418, certain controlled entities of Crown have been granted  
relief from the Corporations Act 2001 requirements for preparation, audit and publication of accounts.

The consolidated profit and loss statement and balance sheet of the entities which are members of the “Closed Group”  
for the year ended 30 June 2009 are detailed below.

Consolidated income statement 

Profit/(loss) before income tax 

Income tax (expense)/benefit  

Net profit/(loss) after income tax 

CloSEd GRoUP

2009 

$’000 

2008

$’000

154,751 

(1,510,339)

2,573 

(52,602)

157,324 

(1,562,941)

Retained earnings/(accumulated losses) at the beginning of the financial year 

(1,578,235) 

2,039,793

Retained earnings of entities entering Closed Group 

Retained earnings of entities removed from Closed Group 

Dividends provided for or paid 

Retained earnings/(accumulated losses) at the end of the financial year 

– 

– 

96,936

(1,982,502)

(331,080) 

(169,521)

(1,751,991) 

(1,578,235)

112

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
33.  Deed of Cross Guarantee  Continued

Consolidated balance sheet 

Current assets

Cash and cash equivalents 

Trade and other receivables 

Inventories 

Other 

total Current assets 

Non Current assets 

Receivables 

Investment in associates 

Available for sale assets 

Other financial assets 

Property, plant and equipment 

Licences 

Other intangible assets 

Deferred tax assets 

total Non Current assets 

total assets 

Current liabilities

Payables 

Interest-bearing loans and borrowings 

Income tax payable 

Provisions 

total Current liabilities 

Non Current liabilities

CloSEd GRoUP

2009 

$’000 

2008

$’000

232,052 

2,282,780

24,468 

3,344 

6,426 

33,480

4,138

7,446

266,290 

2,327,844

1,953,321 

1,670,748

11,829 

102,437

– 

8,100

10,244,203 

9,553,562

582,260 

420,426 

11,892 

84,062 

559,789

420,426

11,892

82,793

13,307,993 

12,409,747

13,574,283 

14,737,591

86,335 

20,000 

40,397 

59,604 

105,428

20,000

13,618

42,828

206,336 

181,874

Interest-bearing loans and borrowings 

4,940,296 

6,330,865

Deferred tax liability 

Provisions 

Other financial liabilities 

total Non Current liabilities 

total liabilities 

Net assets 

Equity

Contributed equity 

Reserves 

Retained earnings 

total Equity 

41,396 

13,505 

56,600 

42,327

23,059

–

5,051,797 

6,396,251

5,258,133 

6,578,125

8,316,150 

8,159,466

10,114,805 

9,738,590

(46,664) 

(889)

(1,751,991) 

(1,578,235)

8,316,150 

8,159,466

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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

34.  Financial Risk Management Objectives and Policies
The Group’s principle financial instruments comprise receivables, payables, bank loans and capital market debt, available  
for sale investments, cash and short term deposits and derivatives.

The Group’s business activities expose it to the following risks; market risks (interest rate and foreign exchange), price risk, 
credit risk and liquidity risk. For each of these risks, the Group considers the counterparties, geographical area, currency  
and markets as applicable to determine whether there are concentrations of risk. Other than as described in this note,  
the Treasury Group is satisfied that there are no material concentrations of risk.

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The Group has policies in place to manage different types of risks to which it is exposed. Policies include monitoring the level 
of interest rate and foreign exchange risk and assessments of market forecasts for interest rates and foreign exchange rates. 
Ageing analysis of and monitoring of exposures to counterparties are undertaken to manage credit risk. Liquidity risk is 
monitored through the employment of rolling cash flow forecasts.

Financial risk management is carried out by the Treasury Group under policies approved by the Board of Directors. The Treasury 
Group identifies, evaluates and hedges financial risks in accordance with approved polices. The Board are informed on a 
regular basis of Treasury’s risk management activities.

(a)  Market Risk

(i)  Interest rate risk – cash flow

The Group’s exposure to market interest rates relates primarily to the Group’s cash and cash equivalents and long term debt 
obligations as outlined in note 18.

At balance date, the Group had the following mix of financial assets and liabilities exposed to variable interest rates that  
are not designated as cash flow hedges.

Financial assets

AUD Cash and cash equivalents 

USD Cash and cash equivalents 

total Financial assets 

Financial liabilities

AUD Bank loans 

USD Bank loans 

total Financial liabilities 

Net Exposure 

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

266,651 

1,860,262 

248,847 

502,702 

515,498 

2,362,964 

220,000 

1,590,000 

– 

500,000 

220,000 

2,090,000 

295,498 

272,964 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

–

As at balance date, the Group maintained floating rate borrowings of $220.0 million (2008: $1,590.0 million) that were not 
designated as cash flow hedges. The associated interest rate risk is mitigated by cash and cash equivalents of $266.6 million 
(2008: $1,860.3 million). Under the bank loans, the Group pays the Bank Bill Swap rate (BBSW) plus a margin of 145 basis 
points. The cash and cash equivalents are invested at approximately BBSW.

As at balance date, the Group maintained no floating rate borrowings in US dollars (2008: $500.0 million) and had cash  
and cash equivalents of $248.8 million (2008: $502.7 million) invested at approximately LIBOR.

Group Sensitivity

As a result of Australian dollar interest rates increasing by 150 basis points and US dollar interest rates increasing by 50 basis 
points the Group’s post-tax-profit for the year would have been $1.9 million higher. The impact on post-tax-profit for a  
50 basis points reduction in Australian dollar interest rates and a 25 basis point reduction in US dollar interest rates would  
be negative $0.9 million.

The sensitivity to fair value movements through equity as a result of interest rates increasing by 150 basis points or decreasing 
by 50 basis point is not material as at balance date.

114

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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34.  FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES  continued

(a)  Market Risk  continued

The Group, where appropriate, uses interest rate swaps to manage the risk of adverse movements in interest rates  
for its long term floating rate borrowings which are subject to variable rates.

The Group uses cross-currency interest rate swaps to manage the risk of adverse movements in interest rates for its  
long term foreign currency denominated borrowings which are subject to variable rates.

As at balance date the notional principal amounts and period of expiry of the interest rate swap contracts were as follows:

Cash flow hedge

Maturity 1-5 years 

Maturity over 5 years 

Closing Balance 

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

300,000 

174,634 

474,634 

– 

174,634 

174,634 

– 

– 

– 

–

–

–

Under the interest swap contracts maturing June 2013, the Group has the right to receive floating rate (i.e. BBSW) quarterly 
and pay fixed rate of 6.99% quarterly. The terms of the swap contracts are matched directly against the appropriate loan  
and interest expense and as such are highly effective. The fair value of the swap at balance date was negative $18.3 million.

Under the cross currency swap contract (maturing July 2036), the Group has the right to receive US dollar interest at a fixed 
rate of 4.76% (2008: 4.76%) semi-annually and pay Australian dollar interest at fixed rate of 7.05% (2008: 7.05%) quarterly. 
The terms of the cross currency swap contract are matched directly against the appropriate loan and interest expense and  
as such is highly effective. The fair value of the swap at balance date was negative $38.3 million US dollars (2008: negative 
$22.2 million US dollars).

(ii)  Interest rate risk – fair value

Where appropriate, the Group enters into fixed rate debt to mitigate exposure to interest rate risk. As the Group holds fixed 
rate debt there is a risk that the fair value of financial instruments will fluctuate because of market movements in interest rates. 
The level of fixed rate debt at balance date was $362.5 million (2008: $114.6 million). 

As at balance date the Group had the following interest rate swap in place to hedge the medium term note issuance. 

Fair value hedge

Maturity 1-5 years 

Maturity over 5 years 

Closing Balance 

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

114,600 

124,600 

– 

– 

114,600 

124,600 

– 

– 

– 

–

–

–

Under the terms of the swap contract (maturing March 2011) the Group has the right to receive a fixed rate of interest of  
6% semi-annually and pay floating rate of interest (i.e. BBSW) plus a margin of 39.5 basis points. The fair value of the swap  
at balance date was positive $3.1 million Australian dollars (2008: negative $7.6 million Australian dollars).

Group Sensitivity

The sensitivity to fair value movements through equity or profit and loss as a result of interest rates increasing by 150 basis 
points or decreasing by 50 basis points was not material as at balance date.

115

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

34.  Financial Risk Management Objectives And Policies  Continued

(a)  Market Risk  continued

(iii)  Foreign exchange risk

The Group has currency exposure as a result of capital expenditure and investments/sales in currencies other than the 
Group’s functional currency.

Treasury, on behalf of the operating units, uses forward exchange contracts to minimise the currency exposure on any 
significant receivables or payables as is deemed appropriate. 

All forward exchange contracts must be in the same currency as the firm commitment and the Group negotiates the terms  
of the hedges to exactly match the underlying commitment to maximise hedge effectiveness. As at balance date, the Group 
had hedged 100% of its foreign currency receivables and payables that are firm commitments. 

As at balance date, the Group had the following foreign exchange exposures that were not designated as cash flow hedges:

US Dollars Exposure 

Financial assets

Cash and cash equivalents 

Trade and other receivables 

Available-for-sale financial assets 

total Financial assets 

Financial liabilities

US Private Placement 

total Financial liabilities 

Net exposure 

GBP Exposure 

Financial assets

Loans to associates 

total Financial assets 

Financial liabilities 

Net exposure 

Group sensitivity – US dollar

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

248,847 

502,702 

– 

– 

248,847 

22,162 

138,828 

663,692 

247,924 

247,924 

500,000 

500,000 

923 

163,692 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

–

–

–

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

27,894 

27,894 

– 

22,658 

22,658 

– 

27,894 

22,658 

– 

– 

– 

– 

–

–

–

–

Based on the financial instruments held at balance date, the sensitivity to fair value movements through equity or profit  
and loss as a result of the Australian dollar strengthening or weakening by 10c against the US dollar would not be material 
(2008: $9.0 million lower or $21.0 million higher) as at balance date.

Group sensitivity – GBP

As a result of the Australian dollar strengthening or weakening by 5c against the GBP with all other variables held constant, 
the Group’s post-tax-profit for the year would have been $1.6 million lower or $2.0 million higher (2008: $1.5 million lower  
or $1.9 million higher) as at balance date.

The sensitivity to fair value movements through equity as a result of the Australian dollar strengthening or weakening by  
5c against the GBP would not be material as at balance date.

116

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
34.  Financial Risk Management Objectives and Policies  Continued

(a)  Market Risk  continued

(iii)  Foreign exchange risk  continued

Foreign Exchange Contracts

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The Group uses derivative instruments such as Forward Exchange Contracts to manage the currency risks arising from  
the Group’s operations and its sources of finance. 

Derivatives are exclusively used for hedging purposes and not as trading or other speculative instruments. These derivatives 
qualify for hedge accounting and are based on limits set by the Board.

Cash flow hedges

At balance date details of outstanding contracts denominated in Australian dollars was:

CoNSolIdatEd 

PaRENt ENtIty

Notional Amounts 

Average Rate  

Notional Amounts 

Average Rate

2009 

$’000 

2008 

$’000 

2009 

2008 

2009 

$’000 

2008 

$’000 

2009 

2008

Buy USd/Sell aUd

Maturity under 1 year 

14,185 

Maturity 1-5 years 

Buy aUd/Sell USd

– 

2,728 

2,063 

0.7051 

0.7330 

– 

0.7271 

Maturity under 1 year 

38,615 

37,635 

0.8462 

0.8822 

Maturity 1-5 years 

59,931 

151,236 

0.8076 

0.8133 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

–

–

–

–

The change in fair value of cash flow hedges as at balance date was negative $7.3 million Australian dollars (2008: negative 
$2.3 million)

Fair value hedges

At balance date details of outstanding contracts denominated in Australian dollars was:

CoNSolIdatEd 

PaRENt ENtIty

Notional Amounts 

Average Rate  

Notional Amounts 

Average Rate

2009 

$’000 

2008 

$’000 

2009 

2008 

2009 

$’000 

2008 

$’000 

2009 

2008

Buy aUd/Sell USd

Maturity 1-5 years 

82,913 

82,689 

0.7737 

0.7758 

Buy aUd/Sell Cad

Maturity 1-5 years 

– 

161,671 

– 

0.8041 

– 

– 

– 

– 

– 

– 

–

–

The change in fair value of fair value hedges as at balance date was positive $0.3 million Australian dollars (2008: negative 
$11.2 million).

The forward exchange contracts are considered to be highly effective hedges as they are matched against known and 
committed receivables and payments and any gain or loss on the hedged risk is taken directly to equity.

117

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL REP OR T  200 9  co nti nued

Notes to the Financial Statements  continued

For the year ended 30 June 2009

34.  Financial Risk Management Objectives and Policies  Continued

(b)  Price Risk

The Group is exposed to equity securities price risk. Equity securities price risk arises from investments held by the Group  
and classified on the balance sheet as available-for-sale financial assets.

Neither the Group nor the parent entity is exposed to commodity price risk.

CoNSolIdatEd 

PaRENt ENtIty 

2009 

$’000 

36,728 

36,728 

2008 

$’000 

507,489 

507,489 

2009 

$’000 

– 

– 

2008

$’000

–

–

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Shares – unlisted 

Net exposure 

Group sensitivity

The Group’s sensitivity to price risk has been estimated using valuation techniques based on the fair value of securities held. 
The sensitivity to fair value movements through equity or profit and loss as a result of movement in value of the securities  
was not material as at balance date.

(c)  Credit Risk

Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents, trade and other 
receivables and derivative instruments. The Group’s exposure to credit risk arises from the potential default of the counterparty, 
with a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is outlined under each 
applicable note.

The Group does not hold any credit derivatives or collateral to offset its credit exposure.

All investment and financial instruments activity is with approved counterparties with investment grade ratings and is in 
accordance with approved policies. There are no significant concentrations of credit risk within the Group and the aggregate 
value of transactions is spread amongst a number of financial institutions to minimise the risk of default of counterparties.

Credit risk in trade receivables is managed in the following ways:

(i)  The provision of credit is covered by a risk assessment process for all customers.

(ii)  Concentrations of credit risk are minimised by undertaking transactions with a large number of customers.

(iii) The provision of cheque-cashing facilities for gaming patrons is subject to detailed policies and procedures designed to 

minimise any potential loss, including the taking up of bank opinions and the use of a central credit agency which collates 
information from major casinos around the world.

(d)  Liquidity Risk

It is the Group’s objective to maintain a balance between continuity of funding and flexibility through the use of cash reserves, 
committed bank lines and capital markets debt in order to meet its financial commitments in a timely manner.

The Group’s policy is that no more than 30% or $500 million of borrowings should mature in any 12 month period. At balance 
date 3.09% or $103 million of the Group’s debt will mature in less than 12 months (2008: 0.55%).

As at balance date the Group had $2,007 million in undrawn committed bank lines.

Maturity analysis of financial assets and liabilities

The table below analyses the Group’s contractual undiscounted cash flows of financial liabilities, net and gross settled 
derivative financial instruments into relevant maturity groupings based on the remaining period at balance date to the 
contractual maturity date.

118

 
 
 
 
 
 
 
 
 
 
 
34.  Financial Risk Management Objectives and Policies  Continued

(d)  Liquidity Risk  continued

1 year or less 

1 to 5 years 

more than 5 years 

total carrying  
amount as per the 
Balance Sheet

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008 

$’000 

2009 

$’000 

2008

$’000

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Financial Liabilities

Trade and other payables   292,769 

255,108 

4,097 

24,059 

– 

– 

296,866 

279,167

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– 

– 

114,600 

114,600 

422,558 

174,634 

537,158 

289,234

Capital markets  

Bank loans 

Forward exchange contracts 

52,800 

34,906 

142,844 

393,533 

20,000 

20,000 

500,000  2,070,000 

– 

414,600 

124,600 

Interest rate swaps 

Cross currency interest  
rate swaps 

– 

– 

– 

– 

– 

– 

– 

– 

520,000  2,090,000

– 

– 

– 

–

–

–

– 

– 

– 

174,634 

174,634 

total Financial liabilities   365,569 

310,014  1,176,141  2,726,792 

597,192 

349,268  1,354,024  2,658,401

Financial Assets

Cash and cash equivalents   515,498  2,362,964 

– 

– 

Receivables – trade  

144,623 

146,210 

71,677 

183,923 

– 

– 

– 

– 

515,498  2,362,964

216,300 

330,133

Receivables – associates 

Assets held for sale 

Available for sale assets 

34 

– 

– 

314 

129,566 

228,921 

35,594 

30,358 

165,194 

259,593

– 

– 

– 

– 

– 

– 

– 

– 

– 

–

36,728 

507,489 

36,728 

507,489

Forward exchange contracts 

52,800 

34,906 

142,844 

393,533 

– 

414,600 

124,600 

– 

– 

– 

– 

– 

– 

– 

–

–

–

Interest rate swaps 

Cross currency interest  
rate swaps 

– 

– 

– 

– 

– 

174,634 

174,634 

total Financial assets  

712,955  2,544,394 

758,687 

930,977 

246,956 

712,481 

933,720  3,460,179

Net Maturity 

347,386  2,234,380 

(417,454) (1,795,815) 

(350,236) 

363,213 

(420,304) 

801,778

Parent

Financial Liabilities

Loans from controlled entities 

Trade and other payables 

total Financial liabilities 

Financial Assets

Cash and cash equivalents 

Loans to controlled entities 

total Financial assets 

Net Maturity 

– 

– 

– 

– 

13,408 

13,408 

928 

– 

928 

928 

– 

– 

– 

(13,408) 

– 

– 

– 

– 

– 

– 

– 

–  2,210,103  2,241,724  2,210,103  2,241,724

– 

– 

– 

– 

13,408

–  2,210,103  2,241,724  2,210,103  2,255,132

– 

– 

– 

– 

– 

928 

–

558,268 

178,160 

558,268 

178,160

558,268 

178,160 

559,196 

178,160

–  (1,651,835)  (2,063,564)  (1,650,907)  (2,076,972)

(e)  Fair Value of Financial Instruments

The fair value of the Group’s financial assets and financial liabilities approximates the carrying value as at balance date.

119

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shareholder Information

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Substantial shareholders as at 14 September 2009:
The following information is extracted from substantial shareholder notices received by Crown Limited.

Shareholder 

Number of ordinary Shares 

% of Issued Capital

Consolidated Press Holdings Limited 

Janus Capital Management LLC 

280,753,465 

45,800,167 

37.02

6.04

Holders of each class of securities
Crown only has ordinary shares on issue. The total number of ordinary shares on issue is 758,394,185 held by 57,283 
shareholders.

Voting rights of ordinary shares
Crown Limited’s Constitution sets out the information in relation to the voting rights attached to shares. In summary,  
at a general meeting on a show of hands, every member present has one vote; and on a poll, every member present has:

(a) one vote for each fully paid share held by the member and in respect of which the member is entitled to vote; and

(b)  a fraction of a vote for each partly paid share held by the member and in respect of which the member is entitled to vote, 
equivalent to the proportion which the amount paid on the share bears to the total amount paid and payable on the share.

Distribution of shareholders as at 14 September 2009:
Size of Holdings 

Number of Shareholders 

% of Issued Capital

1 – 1,000 

1,001 – 5000 

5,001 – 10,000 

10,001 – 100,000 

100,001+ 

Total   

Holding less than a marketable parcel 

37,119 

17,917 

1,501 

635 

111 

57,283 

3,677

2.03

4.93

1.35

1.92

89.77

100.00

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The 20 largest shareholders as at 14 September 2009:
Name 

No. of Shares 

% of Issued Capital

1.  Bareage Pty Limited 

2.  HSBC Custody Nominees (Australia) Limited 

3.  Consolidated Press Holdings Limited 

4.  J P Morgan Nominees Australia Limited 

5.  National Nominees Limited 

6.  RBC Dexia Investor Services Australia  

Nominees Pty Limited  

7.  Citicorp Nominees Pty Limited 

8.  ANZ Nominees Limited  

9.  Cogent Nominees Pty Limited 

10.  RBC Dexia Investor Services Australia  
Nominees Pty Limited  

11.  Samenic Limited 

12.  Queensland Investment Corporation 

13.  AMP Life Limited 

14.  WIN Television NSW Pty Limited 

15.  Citicorp Nominees Pty Limited  

 

16.  UBS Nominees Pty Ltd 

17.  Citicorp Nominees Pty Limited  

 

18.  Citicorp Nominees Pty Limited  

19.  RBC Dexia Investor Services Australia  
Nominees Pty Limited  

20.  UBS Wealth Management Australia Nominees Pty Ltd 

total 

others 

158,486,104 

118,367,547 

108,488,156 

70,035,629 

61,653,465 

18,968,872 

18,211,054 

13,738,100 

13,048,665 

11,564,658 

10,188,370 

6,145,494 

6,008,387 

5,528,845 

3,474,590 

3,117,478 

2,901,785 

2,459,193 

2,444,052 

2,417,352 

637,247,796 

121,146,389 

20.90

15.61

14.30

9.23

8.13

2.50

2.40

1.81

1.72

1.52

1.34

0.81

0.79

0.73

0.46

0.41

0.38

0.32

0.32

0.32

84.03

15.97

Details of unquoted equity securities
Crown Limited has 5,107,645 shares on issue which are currently unquoted. These shares are held by participants in the 
Executive Share Plan (as described more fully in the Remuneration Report) and represent shares which are yet to be released 
from restriction in accordance with the terms of the Plan.

Use of cash and assets
Crown was admitted to the official list of the ASX on 3 December 2007. The company used (and continues to use) the  
cash and assets in a form readily convertible to cash that it had at the time of admission in a manner consistent with its 
business objectives. 

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Additional Information

Shareholder enquiries
Shareholders may access their details by visiting the Share Registry’s website at www.computershare.com. For security 
reasons, shareholders need to enter their Security holder Reference Number (SRN) or Holding Identification Number (HIN) and 
postcode to access personal information. Security holding information may be updated online. Alternatively, download the 
relevant forms and have the completed forms mailed to the Share Registry.

Shareholders with queries about their shareholdings should contact the Share Registry, Computershare Investor Services, on 
telephone number 1300 659 795 or if calling from outside Australia, (61 3) 9415 4000 or by fax (61 3) 9473 2500.

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Electronic shareholder communications
Receiving shareholder communications electronically, instead of by post enables you to:

•	 Receive important shareholder and company information faster

•	 Reduce your impact on the environment

•	 Securely store important shareholder documents online, reducing clutter in your home or office

•	 Access all documents conveniently 24/7

Shareholders who wish to receive email alerts informing them of Annual Report, Notice of Meeting, Issuer Holding Statements, 
Payment Advices and other company related information on Crown Limited’s website, www.crownlimited.com, may either 
contact the Share Registry or lodge such instructions online at the Share Registry’s website at www.computershare.com.

Change of address
Issuer sponsored shareholders should notify the Share Registry immediately in writing or by telephone upon any change in 
their address quoting their SRN. Changes in addresses for broker sponsored holders should be directed to the sponsoring 
brokers with the appropriate HIN.

Direct payment to shareholders’ accounts
Dividends may be paid directly to any bank, building society or credit union account in Australia. Payments are electronically 
credited on the dividend date with advisory confirmation containing payment details mailed to shareholders. 

Shareholders who wish to have their dividends paid directly to their account may advise the Share Registry in writing or may 
update their payment instructions online on www.investorcentre.com.au prior to the dividend record date.

Tax File Numbers
Crown is obliged to deduct tax at the top marginal rate plus Medicare levy from unfranked or partially franked dividends paid 
to Australian resident shareholders who have not supplied their Tax File Number (TFN) or exemption details. If you wish to 
provide your TFN or exemption details, please contact the Share Registry.

Consolidation of multiple holdings
If you have multiple holdings which you wish to consolidate, please advise the Share Registry in writing. If your holdings are 
broker sponsored, please contact the sponsoring broker directly.

Crown website
Crown has a dedicated corporate website, www.crownlimited.com which includes Crown’s Full Financial Annual Report, 
disclosures made to the ASX and Notices of Meeting and other Explanatory Memoranda.

Investment Warning
All information provided in the Annual Report is provided as of the date stated or otherwise as at the date of the Report. 

The Annual Report has not taken into account any particular investor’s investment objectives or other circumstances. 
Investors are encouraged to make an independent assessment of Crown or seek independent professional advice.

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Corporate Information

Directors
•	 James	D	Packer	Executive Chairman

•	 John	H	Alexander	BA	Executive Deputy Chairman

•	 Rowen	B	Craigie	BEc	(Hons)	Chief Executive Officer and Managing Director

•	 Ben	Brazil	BCom,	LLB

•	 Christopher	D	Corrigan

•	 Rowena	Danziger	BA,	TC,	MACE

•	 Geoffrey	J	Dixon

•	 Ashok	Jacob	MBA

•	 Michael	R	Johnston	BEc,	CA

•	 David	H	Lowy	AM,	BCom

•	 Richard	W	Turner	AM,	BEc,	FCA

Company Secretaries
Michael J Neilson BA, LLB

Mary Manos BCom, LLB (Hons)

Crown Limited’s registered office and principal corporate office
Level 3 
Crown Towers 
8 Whiteman Street 
Southbank VIC 3006 
Australia

Share Registry
Computershare Investor Services Pty Ltd 
Yarra Falls 
452 Johnston Street 
Abbotsford VIC 3067 
Phone:  1300 659 795 (within Australia) 

(61 3) 9415 4000 (outside Australia) 
Fax: 
(61 3) 9473 2500 
Website: www.computershare.com

Stock Exchange Listing
Crown Limited’s ordinary shares are listed on the Australian Stock Exchange under the code “CWN”.  
The home exchange is Melbourne.

Website
Visit our website www.crownlimited.com for media releases and financial information

Auditor
Ernst & Young

Banker
Australia and New Zealand Banking Group Limited

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DESIGN: COLLIER & ASSOCIATES THE STRATEGIC DESIGN COMPANY #13714

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