T H E S TA R

E N T E R TA I N M E N T
GROUP

ANNUAL REPORT 2017

THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

CONTENTS
OUR VISION 2
O U R FO OT P R I N T 3
OUR HIG HLIG HTS 4
M ESSAG ES 6
Chairman’s Message 6
CEO’s Message 8

BOA RD A N D E X ECUTI VE 10
Board of Directors 10
Executive Team 12

GROUP PERFORMANCE 14
K E Y P RO J E CTS 18
S U S TA I N A B I L I T Y 2 4
Sustainability Strategy 26
Delivering World Class Properties 28
Leading Company 31
Guest Wellbeing 38
Talented Teams 39

D I R E CTO R S ’ , R E M U N E R AT I O N
AND FINANCIAL REPORT 44
Directors’ Report 45
Remuneration Report 59
Financial Report 78

A D D I T I O N A L I N F O R M AT I O N 133
Shareholder Information 133
Corporate Governance Statement Details 135
Annual General Meeting Details 135
Company Directory 136
Key Dates for FY2017/18 136

2017 has seen The Star Entertainment Group continue

to mature as a business, with steady operating results
reflecting a year of consolidation as focus sharpens on
executing our strategic agenda.
The pipeline of development and capital
improvements of our properties, with
partners Chow Tai Fook Enterprises Limited
and Far East Consortium International
Limited, has grown this year, and is
progressing strongly to meet increasing
tourism demand, as well as our evolving
local markets. Our international VIP
business has adjusted effectively to changing
circumstances in North Asia, accelerating its
existing diversification strategy.
The Group’s master brand roll-out took
important steps, with the launch of a new
‘The Star Club’ branded loyalty program
in November 2016, and the rebranding of
Jupiters Hotel & Casino to The Star Gold
Coast in March 2017. Both initiatives have
been well received by our members and
The newly refurbished hotel at The Star Gold Coast displaying ‘The Star’ logo. The property rebranded in March 2017.
guests, and are expected to work hard for
the Group in 2018, as the loyalty platform
begins to scale up, and The Star Gold Coast
fully leverages its status as a major partner
of the 2018 Commonwealth Games.
The Sydney and Brisbane Festivals, the
Queensland Maroons, and NSW Blues State
of Origin rugby league teams, along with
racing in Sydney were amongst other key
partnerships that further reinforced our
properties’ integral relationships with their
cities and communities during the 2017
financial year. Eighteen months of emphasis
on service excellence has also begun to
pay dividends, with The Darling Hotel at
The Star Sydney being recognised with a
prestigious Forbes Five Star rating – the first
and only one in Sydney.

1
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

OUR VISION OUR FOOTPRINT

TREASURY THE STAR THE STAR

BRISBANE GOLD COAST SYDNEY

1,500+
Team members
2,000+
Team members
4,500+
Team members

TO BE AUSTRALIA’S
LEADING INTEGRATED 4 MILLION
Guests in FY2017
3.4 MILLION
Guests in FY2017
10.4 MILLION
Guests in FY2017
RESORT COMPANY BY FULLY
HARNESSING OUR UNIQUE
OPPORTUNITIES IN EACH
PROPERTY, TO PROVIDE THE
MOST THRILLING GUEST
11
Restaurants
14
Restaurants
35
Restaurants
and bars and bars and bars
EXPERIENCES IN WAYS THAT
TRULY REFLECT THE UNIQUE
CHARACTER OF OUR CITIES.

127
Hotel rooms
596
Hotel rooms
606
Hotel rooms

BRAND PRIORITIES VALUES SERVICE

PILLARS COMMITMENTS
Thrilling experiences Shareholder Value Ownership Live it
Be Human
PROPERTY INVESTMENTS
Accessible luxury World Class Properties True Teamwork
Bring it
Local spirit Leadership in Loyalty Welcoming Be Your Best Self

Excellence in
Guest Service
City Pride Own it
Be a Star Player $3BN UP TO
$850M UP TO
$1BN
Redevelopment Potential investment in Potential investment at
Talented Teams of Queen’s Wharf Brisbane The Star Gold Coast The Star Sydney*
Deliver it
Be the Perfect Host
*Subject to all approvals. Investments include contributions from joint venture partners.

2 3
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

OUR
HIGHLIGHTS

62% $
13m+ $
895m #
1 AWARDS

OF PRE-TAX PROFITS CONTRIBUTION ESTIMATED SPEND ‘GLOBAL LEADER’

PAID TO ALL LEVELS TO CHARITIES, ON 4,000+ SUPPLIERS CASINO AND GAMING
OF GOVERNMENT COMMUNITY GROUPS AUSTRALIA WIDE INDUSTRY MEMBER
Dow Jones Sustainability Index 2016
AWARDED
RobecoSAM Sustainability Award
AND PARTNERSHIPS Dow Jones Sustainability Index (DJSI) Industry Mover 2016
(Dow Jones Sustainability Index assessment)
assessment 2016

$
2,432m 264m 32.0
ACTUAL GROSS
$
STATUTORY
¢
BASIC EARNINGS
16.0
DIVIDEND
¢
AWARDED
RobecoSAM Sustainability Award
CONSTITUENT
The Star Entertainment Group
REVENUE NPAT PER SHARE PER SHARE Gold Class 2016
(Dow Jones Sustainability Index assessment)
remains a constituent of the
FTSE4Good Index
($M) ($M) (CENTS) (CENTS)

2,432
2,358 264 32.0
16.0 FINALIST SILVER EMPLOYER
2,258 Australian HR Awards ‘Pride in Diversity’
(Employer of Choice, Diversity & Inclusion, Australian Workplace Equality Index
194 23.6 13.0 Reward & Recognition Program) for LGBTI Inclusion
169 20.5 11.0

FORBES 5 STAR RATING WINNER TAA AWARDS FOR EXCELLENCE

FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 The Darling Hotel at The Star Sydney Best Environmental Initiatives
is Sydney’s only luxury hotel to receive (Metropolitan Hotel) The Star Sydney
the prestigious Forbes Five-Star rating Tourism Accommodation Australia NSW

BACKGROUND IMAGE IS A CONCEPT IMAGE ONLY. SUBJECT TO APPROVALS.

4 5
THE STAR ENTERTAINMENT GROUP
CHAIRMAN’S
MESSAGE
Consistent with my messages in last
year’s Annual Report and Annual General
Meeting address, I am pleased to report
to shareholders that FY2017 saw The Star
Entertainment Group continue to mature
as a business, with steady operating results
reflecting a year of consolidation as our
concentration sharpens on executing our
strategic agenda. Core to this was further
advancement in the company’s strategy
of investing in key domestic assets and
diversifying our international business.
In delivering against strategic priorities,
we have made significant progress in our
pursuit of the opportunities that exist
today and long-term for Australia in the
tourism sector. In a landscape where
international visitation, most notably from
Asia, continues to rise substantially, we are
expanding and enhancing our properties
in the attractive destinations of Sydney,
the Gold Coast and Brisbane.
With continued stable leadership across
the Board and executive management
team, this concentration again delivered
sustained operating momentum and
financial performance, earnings growth
and returns to shareholders, despite
some disruption from capital works
projects across the Sydney and Gold Coast
properties as new and enhanced assets
were completed and opened.
Statutory net profit after tax (NPAT) for
the Group was $264.4 million, up 36%
on the prior year, supported by domestic
revenue growth in the second half of the
year along with ongoing effective cost
management, and assisted by a favourable
win rate in the International VIP Rebate
business. In normalised terms, applying
6 7
the normalised win rate of 1.35%, the
full year NPAT result was $214.5 million,
down 11.1% on FY2016 impacted by
lower turnover in the International VIP
Rebate business with disruption in the
North Asia market.
Statutory earnings before interest, tax,
depreciation and amortisation (EBITDA)
increased 19.9% on last financial year to
$586.2 million and normalised EBITDA
was down 7.4% to $515.1 million.
With these results, the Board declared a
final dividend of 8.5 cents per share (fully
franked), taking total dividends for the
year to 16 cents per share (fully franked), up
23.1% on FY2016 and representing growth
in dividends returned to shareholders over
each of the last five years.
As highlighted, these results were achieved
as transformational projects were carried
out and delivered across the properties.
This included completion of refurbished
hotel rooms across Astral Towers at
The Star Sydney and refurbishment
of all 596 hotel rooms at the newly
branded, The Star Gold Coast. These
reinvigorated hotel assets along with new
food and beverage and entertainment
offerings reflect our ongoing commitment
to delivering world-class tourism and
entertainment destinations with wide-
ranging offerings, coupled with excellence
in guest service. The validation of this
effort through The Darling at The Star
Sydney receiving the first Forbes Travel
Guide Five-Star rating in New South Wales
was particularly pleasing.
The 2017 financial year also saw the
continued close collaboration with our
Hong Kong based partners, Chow Tai Fook
ANNUAL REPORT 2017
and Far East Consortium, on additional complex, will be open ahead of the Gold
investment opportunities to expand Coast 2018 Commonwealth Games, of
and improve the value proposition which The Star is very proud to be an
of our properties on the Gold Coast Official Partner.
and in Sydney. On the Gold Coast, we
On behalf of the Board, I congratulate
received approval from the Queensland
Matt Bekier and the management team
Government to construct a new
on their continued drive to make The Star
700 room hotel and apartment tower
Entertainment Group Australia’s leading
costing approximately $400 million,
integrated resort company and return
which is the first stage in the master
value to shareholders by delivering upon
plan for the property announced in
strategic priorities while maintaining
May 2016. In addition, our consortium
momentum and efficiency in the existing
purchased the iconic beachfront resort,
business operations.
the Sheraton Grand Mirage Resort
Gold Coast, complementing our South- I look forward to welcoming shareholders
East Queensland integrated resorts and and providing another update at the 2017
enhancing their appeal to a broad range Annual General Meeting at The Star, Sydney.
of domestic and international visitors.
Thank you for your ongoing support for
In January 2017, a significant The Star Entertainment Group.
milestone was reached on the
Queen’s Wharf Brisbane integrated
resort development project with the
Destination Brisbane Consortium taking
possession of the 13 hectare CBD site and
commencing demolition works, which
are well underway and on schedule.
John O’Neill AO
We expect to progress to foundations
CHAIRMAN
work commencing in early 2018.
The ongoing growth in our existing
business, long-term tourism forecasts and
our drive to deliver world-class integrated
resorts with authentic local spirit provide
confidence in the scale and nature of
projects underway.
In FY2018 we are looking forward to the
completion and unveiling of the new
suites hotel tower at The Star Gold Coast,
including roof top dining and premium
gaming areas. This new luxury asset,
along with the reinvigorated existing
THE STAR ENTERTAINMENT GROUP
CEO’S
MESSAGE
The 2017 financial year witnessed the
ongoing transformation of The Star
Entertainment Group. We seek to become
Australia’s leading integrated resort
operator and seize opportunities emerging
within the domestic market and the
expanding international tourism sector.
This year, we executed important steps in
this strategy and delivered record statutory
earnings and shareholder dividends.
The Star Gold Coast – formerly Jupiters
– became the latest physical expression
of the Group’s ongoing evolution
when rebranded in March to represent
new standards of product excellence.
The property will be further improved
when a luxury suite hotel opens before the
Gold Coast 2018 Commonwealth Games.
Another milestone was the Group’s
acquisition of the Sheraton Grand Mirage
Resort on the Gold Coast in a joint venture
with Hong Kong based partners Chow Tai
Fook and Far East Consortium.
This valued relationship continues to
expand beyond the initial agreement
for the Queen’s Wharf Brisbane project.
It now extends to capital works in Sydney
– the planned The Ritz-Carlton Hotel
and apartment tower project – and a
planned hotel and apartment tower on
the Gold Coast.
Other critical elements to the business
strategy include the development of best
in class Loyalty capabilities, developing
talented teams and creating a culture of
guest service excellence. These capabilities
will ensure that The Star Entertainment
Group, as a leading company, is operating
world-class properties and maximising
value to shareholders.
OPERATING PERFORMANCE
The 2017 financial year showed good
progress in the performance of our
core business, despite a softer trading
environment and disruption in Sydney
and the Gold Coast.
The first half year involved major
development works and the relaunch of
the Loyalty program. We have seen positive
momentum post the Loyalty relaunch,
with member perception improving and
8 9
pleasing growth in private gaming room
revenues. In the second half of the year,
we delivered solid domestic revenue growth
in Sydney and the Gold Coast as disruption
decreased and guests responded positively
to completed investments.
For the full year, actual gross revenue
across the Group grew 3.2% to $2,432m,
with The Star Sydney growing by 1.8% to
$1,686m and the Queensland properties
increasing 6.5% to $746m. Normalised
gross revenue declined 3.9% to $2,337m.
Domestic gaming revenues grew 2% to
$1,545m across the Group in the 2017
financial year, largely due to a pleasing
performance in table games. Non-gaming
cash revenue of $248m was up 0.6% for
the year. This result would have been
further enhanced but for the impact of
disruption in the first half year prior to
the completion of key capital works.
The International VIP Rebate business
witnessed actual revenue growth of 7.3%,
supported by a high win rate of 1.59%
compared to the theoretical rate of 1.35%.
International VIP Rebate business turnover
was down 19.9%, with the lower volumes
impacted by the high win rate and the
well-documented disruption to the
North Asian market.
However, the diversification of our
International VIP Rebate business delivered
pleasing results. Our strategy of providing
a compelling high-end tourism proposition
for VIP and Premium Mass customers from
an expanding range of source markets
showed good traction. In support of this
strategy, we expanded our sales teams to
cover a broader international footprint.
We welcomed VIP or Premium Mass guests
from 13 countries and continue to assess
entry into additional markets.
It was also pleasing that our collections
remained strong. This reflected
a continuing focus on credit risk
management and effective credit processes.
Operating expenses for the 2017 financial
year showed a particularly good result.
Expenses were up 1% on last year to $971
million, despite record capital expenditure,
the relaunch of Loyalty, the expansion of
our VIP sales teams and the rebranding
of the Gold Coast property. This reflects the
company’s continued cost discipline and
focus to drive efficiency improvements.
AWARDS
The Star Entertainment Group and
its properties continued to receive
acknowledgement and recognition for
the quality of our offerings and our
commitment to service excellence.
The Darling at The Star Sydney had the
distinction of becoming the first luxury
hotel in NSW to be awarded the Forbes
Five-Star Rating. The accolade from the
Forbes Travel Guide is among the most
sought-after in the tourism and hospitality
sector. It was one of 34 awards bestowed on
The Star Sydney during the 2017 financial
year, including a Hall of Fame entry for
The Star Event Centre after winning the
“Best Specialty Event Venue” for the third
successive year at the National Meetings
and Events Awards. There were 14 awards
for our Queensland properties.
The Star Entertainment Group was also
awarded Silver Employer status by the
Australian Workplace Equality Index for
its LGBTI inclusion, and was a finalist
in the Australian HR awards in the
Employer of Choice, Diversity & Inclusion
and Reward & Recognition categories.
In terms of sustainability, we were
delighted that The Star Entertainment
Group was acknowledged as the global
leader in the Casinos and Gaming sector of
the Dow Jones Sustainability Index (DJSI)
assessment in 2016. The top ranking was
achieved for a second successive year when
the annual DJSI assessment was released
in September 2017. The Queen’s Wharf
Brisbane integrated resort development
also achieved a 6-Star Green Star
Communities Rating v1. This represents
world leadership in master planning.
TEAM AND COMMUNITY
Thousands of jobs will be created as
the transformation of our integrated
resorts continues over the next five years.
The growth of inbound tourism will also
require the industry more generally to
expand its collective workforce to cope
with demand. We are preparing for this
eventuality in a variety of ways, from
embedding our values and culture to
drive ongoing improvements in guest
service excellence, to partnering with
institutions in a practical and value-
add manner. During the 2017 financial
year, we partnered with TAFE NSW to
establish a Sydney School of Hospitality
Excellence. This follows the launch in the
previous year of the Queensland Hotel
& Hospitality School – a partnership with
TAFE Queensland.
In aligning with our business promise to
deliver experiences with authentic local
spirit, The Star Entertainment Group
encourages and supports the communities
in which we operate, providing widespread
assistance to organisations and key events.
In the 2017 financial year, the value of
contributions to community groups,
charitable organisations and partnerships
by The Star Entertainment Group’s
properties exceeded $13 million.
The Star Sydney committed total
funding of $1.5m to Barnardos Australia,
Taronga Conservation Society Australia
and Chris O’Brien Lifehouse. The property
also partnered with a range of community
groups and organisations including
the Gay and Lesbian Mardi Gras, the
NSW Rugby League, the Sydney Swans
and the Australian Turf Club, while also
joining OzHarvest, Australia’s leading food
rescue organisation.
In Queensland, ongoing support
was provided to Ronald McDonald
House South East Queensland, while a
partnership with Choice, Passion, Life
(formerly Cerebral Palsy League) entered
its 15th year. Assistance to Surf Lifesaving
Queensland has been continuous
since 1994 and in the 2017 financial
year included the donation of a new
inflatable rescue boat. Events and sports
partnerships included the Gold Coast 2018
Commonwealth Games, the Pan Pacific
Masters Games, Blues on Broadwater and
the Queensland Rugby League.
CAPITAL EXPENDITURE AND PRIORITIES
The Star Entertainment Group incurred
capital expenditure of $420 million, up
$114 million on the previous financial
year. This growth is due to development
ANNUAL REPORT 2017
works at The Star Sydney and The Star
Gold Coast. At both properties, there were
significant refurbishments of existing
hotel rooms and, on the Gold Coast, a new
luxury all-suite hotel neared completion.
Capital expenditure in the 2018 financial
year is expected to be at similar levels.
The Star Entertainment Group has five
priorities for the 2018 financial year.
They represent the next stage of executing
the transformation plan:
○○ Improve earnings across the Group
through continued focus on domestic
gaming and operating efficiencies
○○ Deliver on the next stage of the capital
works program, including completion of
demolition at Queen’s Wharf Brisbane
and the commencement of excavation
○○ Progress planning approvals for
joint venture developments with
Chow Tai Fook and Far East Consortium
in Sydney and the Gold Coast
○○ Continue diversification of the Group’s
VIP and Premium Mass revenue base
○○ Continue the drive to differentiate the
value proposition at each property.
To deliver on these priorities, The Star
Entertainment Group continues to attract
new talent and make key appointments
across the business.
I would like to extend my gratitude to the
Board and management for their support
and commitment during the 2017 financial
year and, importantly, to the team members
who have contributed so wonderfully to our
ongoing growth and development.
I also want to thank the millions of
guests who visited us and experienced the
significant changes we have made, and
continue to make, to enhance each one
of our properties.
Matt Bekier
MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER
THE STAR ENTERTAINMENT GROUP
BOARD OF
DIRECTORS
Diploma of Law; Foundation Fellow of the Australian Institute of Company Directors
JOHN O’NEILL AO
John O’Neill was formerly Managing Director and Chief Executive Officer of Australian
CHAIRMAN AND Rugby Union Limited, Chief Executive Officer of Football Federation Australia,
NON-EXECUTIVE Managing Director and Chief Executive Officer of the State Bank of New South Wales,
DIRECTOR and Chairman of the Australian Wool Exchange Limited.
Mr O’Neill was also formerly a Director of Tabcorp Holdings Limited and Rugby World
Cup Limited.
Mr O’Neill was also the inaugural Chairman of Events New South Wales, which flowed
from the independent reviews he conducted into events strategy, convention and
exhibition space, and tourism on behalf of the New South Wales Government.
Mr O’Neill is currently a member of the Advisory Council of China Matters and a
Director of Sport Australia Hall of Fame (SAHOF).
Master of Economics and Commerce; PhD in Finance
MATT BEKIER
MANAGING DIRECTOR Matt Bekier was previously Chief Financial Officer and Executive Director of the Company.
AND CHIEF EXECUTIVE He was also Chief Financial Officer of Tabcorp Holdings Limited from late 2005 until the
demerger of the Company and its controlled entities in June 2011.
OFFICER
Prior to his role at Tabcorp, Mr Bekier held various roles with McKinsey and Company over
14 years. During that time, he focused on building a substantial practice in both post-merger
management and financial services, working across four continents.
Mr Bekier is currently a member of the Board of the Australasian Gaming Council and an
Honorary Adjunct Professor at Macquarie University.
KATIE LAHEY AM Bachelor of Arts (First Class Honours), Master of Business Administration
NON-EXECUTIVE Katie Lahey has extensive experience in the retail, tourism and entertainment sectors
DIRECTOR and previously held chief executive roles in the public and private sectors.
Ms Lahey is currently the Chair of Tourism & Transport Forum and the Executive
Chairman Australasia for Korn Ferry International. She is also a member of the
Australian Brandenburg Orchestra Board.
Ms Lahey was previously the Chair of Carnival Australia and a member of the boards of
David Jones Limited, Australia Council Major Performing Arts, Hills Motorway Limited,
Australia Post and Garvan Research Foundation.
Bachelor of Economics (First Class Honours), Fellow of the Australian Institute of Company Directors
RICHARD SHEPPARD
Richard Sheppard has had an extensive executive career in the banking and finance
NON-EXECUTIVE sector including an executive career with Macquarie Group Limited spanning more
DIRECTOR than 30 years.
Mr Sheppard was previously the Managing Director and Chief Executive Officer of
Macquarie Bank Limited and chaired the boards of a number of Macquarie’s listed
entities. He has also served as Chairman of the Commonwealth Government’s
Financial Sector Advisory Council.
Mr Sheppard is currently the Chairman and a Non-Executive Director of Dexus Property
Group and a Non-Executive Director of Snowy Hydro Limited. He is also a Director of the
Bradman Foundation.
10
ANNUAL REPORT 2017
Bachelor of Commerce; Diploma of Advanced Accounting; Fellow of the Institute of Chartered
Accountants; Fellow of CPA Australia; Fellow of the Australian Institute of Company Directors;
GERARD BRADLEY Fellow of the Institute of Managers and Leaders
NON-EXECUTIVE Gerard Bradley is the Chairman of Queensland Treasury Corporation and related companies,
DIRECTOR having served for 14 years as Under Treasurer and Under Secretary of the Queensland Treasury
Department. He has extensive experience in public sector finance in both the Queensland and
South Australian Treasury Departments.
Mr Bradley has previously served as Chairman of the Board of Trustees at QSuper.
His previous non-executive board memberships also include Funds SA, Queensland
Investment Corporation, Suncorp (Insurance & Finance), Queensland Water Infrastructure
Pty Ltd, and South Bank Corporation.
Mr Bradley is currently a Non-Executive Director of Pinnacle Investment Management
Group Limited and a Director of the Winston Churchill Memorial Trust.
Doctor of Philosophy (Governance); Master of Laws; Bachelor of Laws; Fellow of the
Australian Institute of Company Directors
SALLY PITKIN
Sally Pitkin is a Queensland based company director and lawyer with extensive corporate
NON-EXECUTIVE experience and over 20 years’ experience as a non-executive director and board member
DIRECTOR across a wide range of industries in the private and public sectors.
Dr Pitkin currently holds various board roles, including as a Non-Executive Director of
Super Retail Group Limited, IPH Limited and Link Administration Holdings Limited.
Dr Pitkin is the President of the Queensland Division, and a member of the National Board
of the Australian Institute of Company Directors.
Dr Pitkin was previously a Non-Executive Director of Aristocrat Leisure Limited.
Master of Applied Finance; Graduate Diploma in Accounting; Bachelor of Arts;
Advanced Management Programme (Harvard Business School, Massachusetts);
GREG HAYES Member of Institute of Chartered Accountants
NON-EXECUTIVE Greg Hayes is an experienced executive and director having worked across a range of
DIRECTOR industries including energy, infrastructure and logistics. Mr Hayes brings to the Board
skills and experience in the areas of strategy, finance, mergers and acquisitions, and strategic
risk management, in particular in listed companies with global operations. He is currently
a Director of Incitec Pivot Limited, Precision Group, Aurrum Holdings Pty Ltd and Home
Investment Consortium Company Pty Ltd.
Mr Hayes was previously Chief Financial Officer and Executive Director of Brambles
Limited, Chief Executive Officer & Group Managing Director of Tenix Pty Ltd, Chief
Financial Officer and later interim CEO of the Australian Gaslight Company (AGL),
Chief Financial Officer Australia and New Zealand of Westfield Holdings, and
Executive General Manager, Finance of Southcorp Limited.
11
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

EXECUTIVE
TEAM

Back row from left to right:

JOHN DE ANGELIS
The Star Entertainment Group’s experienced CHIEF INFORMATION OFFICER
executive team leads the company to deliver PAULA MARTIN
GROUP GENERAL COUNSEL &
world-class integrated resort assets, develop COMPANY SECRETARY
its people and create shareholder value. GREG HAWKINS
MANAGING DIRECTOR
THE STAR SYDNEY

MATT BEKIER
MANAGING DIRECTOR &
CHIEF EXECUTIVE OFFICER
GEOFF HOGG
MANAGING DIRECTOR QUEENSLAND
JOHN CHONG
PRESIDENT INTERNATIONAL
MARKETING

PAUL MCWILLIAMS
CHIEF RISK OFFICER.

Seated from left to right:

GEOFF PARMENTER
GROUP EXECUTIVE MARKETING &
CORPORATE AFFAIRS

CHAD BARTON
CHIEF FINANCIAL OFFICER

KIM LEE
CHIEF HUMAN RESOURCES OFFICER

12 13
THE STAR ENTERTAINMENT GROUP
GROUP
PERFORMANCE
The Star Entertainment Group delivered record
earnings in the 2017 financial year, enabling a 23%
increase in dividends for the year.  
THE STAR SYDNEY
The Star Sydney’s success in the 2017
financial year continued the momentum
from 2016. Guests have responded to a
repositioned and upgraded offering, with
increased domestic and international
revenues helping deliver earnings growth.
The Star Sydney is one of the city’s most
sought after entertainment and tourism
destinations, welcoming over 10 million
guests per year.
In the 2017 financial year, The Star Sydney
was the recipient of 34 awards. The Darling
was the first ever Sydney-based hotel to
receive a Five-Star rating by the prestigious
Forbes Travel Guide. The Forbes Travel
Guide’s anonymous inspectors travel the
world to assess hotels, restaurants and spas
against up to 800 strict objective standards
in both service and facility. The Darling Spa
was also awarded a Forbes Four-Star Rating.
The Star Sydney was also proud to be
nominated for 13 awards in NSW at the
2017 Tourism Accommodation Australia
(TAA) Awards for Excellence with Momofuku
Seiōbo winning Restaurant of the Year and
Sokyo Lounge winning Bar of the Year in the
Metropolitan Hotels category. The property
also won the ‘Best Environmental Initiatives’
category at the TAA NSW Awards for
Excellence 2017 after achieving finalist status
in the previous two years.
THE STAR ENTERTAINMENT GROUP
THREE YEAR STATUTORY FINANCIAL RESULTS SUMMARY
REPORTED RESULTS FY2015
$m
STATUTORY REVENUE 2,140.3
EBITDA 450.8
EBIT 287.1
NPAT 169.3
SIGNIFICANT ITEMS
(AFTER TAX) 2.7
NPAT BEFORE SIGNIFICANT
ITEMS 172.0
BASIC EARNINGS PER SHARE 20.5 cents
FULL YEAR DIVIDEND
(FULLY FRANKED) 11.0 cents
The Darling Hotel at The Star Sydney. The Darling Hotel is proud to be Sydney’s only luxury hotel to receive a Forbes Five-Star rating.
* For further information please refer to the financial report contained in the Annual Report for the relevant financial year.
14
The consistently awarded The Star Event
Centre was inducted into the Hall of Fame
after winning ‘Best Specialty Event Venue’
for the third consecutive year at the
National Meetings and Events Awards 2017.
The Star Sydney’s operating performance
for the 2017 financial year overall was
pleasing. Domestic revenues were impacted
by disruption from capital works in the
first half of FY2017, with solid growth in
the second half as new and refurbished
assets became available. Our International
VIP Rebate business faced disruption
in North Asian markets from 2QFY2017,
resulting in lower business volumes,
although revenues were helped by a higher
than expected win rate. Statutory gross
revenues increased 1.8% to $1.7 billion
(or down 8.5% on a normalised basis to
$1.6 billion). EBITDA increased 32.6% to
$401 million (excluding significant items)
for the year (or down 16.0% on a normalised
basis to $321 million).
Domestic table games business revenue
grew 5.7% for the year. Revenue from
the slots business increased 1.8% for the
year, with The Star Sydney increasing its
market share in the third quarter of the
2017 financial year as disruption eased and
gaming and non-gaming investments were
completed. Revenue from non-gaming
FY2016 FY2017
$m % change $m
2,268.1 ↑6.0 2,344.0
488.8 ↑8.4 586.2
325.0 ↑13.2 421.7
194.4 ↑14.9 264.4
0 ↓100.0 8.9
194.4 ↑13.0 273.3
23.6 cents ↑14.9 32.0 cents
13.0 cents ↑18.2 16.0 cents
ANNUAL REPORT 2017
businesses declined 4.5% on the prior year,
impacted by disruption from capital works.
Turnover in the International VIP Rebate
business was $33.5 billion (a 29% decline
from the prior year), impacted by the high
win rate of 1.59% in the 2017 financial
year (up from 1.20% in the prior year) and
disruption to the North Asian market.
Effective cost management continued at
The Star Sydney, with operating expenses
down 0.8% to $614 million for the 2017
financial year, absorbing increases in
domestic gaming volumes, investments
in marketing, the relaunch of the loyalty
program in November 2016 and
wage indexation.
Strategic priorities at The Star Sydney
for the 2018 financial year remain focused
on investing in our core businesses to
attract repeat visitation from locals and
tourists. This includes continued progress
on investments to further enhance the
offering at The Star Sydney, as well as
submitting the Development Application for
the proposed $500 million tower (including
The Ritz-Carlton hotel and residential
apartments) in partnership with our
Hong Kong based partners, Chow Tai Fook
Enterprises Limited and Far East
Consortium International Limited.
% change
↑3.3
↑19.9
↑29.8
↑36.0
↑100.0
↑40.6
↑36.0
↑23.1%
15
THE STAR ENTERTAINMENT GROUP
QUEENSLAND
The Group’s Queensland properties
delivered another year of earnings
growth in the 2017 financial year, whilst
progressing investments in both Brisbane
and the Gold Coast. These investments
demonstrate our commitment to
Queensland and tourism, whilst securing
the Group’s long term strategic position in
South East Queensland.
Together with our partners in the
Destination Brisbane Consortium, Chow
Tai Fook Enterprises Limited and Far East
Consortium International Limited, the
Group took possession of 12 hectares in the
Brisbane CBD in January 2017 to progress
development of the Queen’s Wharf Brisbane
integrated resort. Demolition works are on
schedule, with foundations work expected
to commence in early 2018.
Jupiters Hotel & Casino has been
successfully rebranded as The Star Gold
Coast, with the completion of significant
capital works repositioning and upgrading
the resort. The new luxury suite hotel at
The Star Gold Coast with its signature
accommodation, gaming and dining
offerings is scheduled to open before the
Gold Coast 2018 Commonwealth Games.
The Queensland Government has approved
construction of a new approximately
$400 million hotel and apartment tower
that the Group will deliver in partnership
with Chow Tai Fook Enterprises Limited
and Far East Consortium International
Limited subject to the completion of a
successful apartment pre-sales program,
with opening planned in 2021. Further,
the Group completed the acquisition
of the Sheraton Grand Mirage Resort,
Gold Coast with its partners during the
year, complementing our South East
Queensland integrated resorts and
enhancing their appeal to a broad range
of domestic and international tourists.
Our Queensland properties collectively
received 14 awards in the 2017 financial
year, with hotel and restaurant offerings
recognised for their quality. Highlights
Treasury Brisbane.
16
ANNUAL REPORT 2017
48
included three awards at the prestigious
Queensland Hotels Association Awards
for Excellence. The Star Entertainment
AWARDS
Group was recognised for its Outstanding
Achievement in Training, and The Star
Gold Coast’s Garden Kitchen & Bar
was awarded Best Restaurant in the RECEIVED
Accommodation Hotels category.
Statutory gross revenue for the Queensland
ACROSS OUR
properties increased to $746 million, up
6.5% compared to the 2016 financial year
PROPERTIES
(or up 7.9% on a normalised basis) due
to increased International VIP Rebate
business revenue. EBITDA of $199 million
5.7%
(excluding significant items) increased
6.6% (up 11.5% on a normalised basis)
compared to the prior year.
Revenue from domestic gaming was
impacted by capital works disruption at
The Star Gold Coast in the first half, and INCREASE IN
competitor investments and disruption
to access from the construction of the DOMESTIC
Queen’s Wharf Brisbane development.
Table games revenue declined 1.4% and TABLE GAMES
slots revenues declined 2.8% in the 2017
financial year relative to the prior year.
REVENUE
Non-gaming business revenues increased
7.1% for the year, reflecting positive
(SYDNEY)
customer response to new and refurbished
offerings at The Star Gold Coast.
Operating expenses of $357 million was up
11.5%
4.3% on the prior year, driven by increased
activity, investments in loyalty, marketing,
the rebranding to The Star Gold Coast, and
wage indexation.
Strategic priorities for our Queensland
properties for the 2018 financial year INCREASE IN
include completion of the luxury suite
hotel at The Star Gold Coast prior to NORMALISED
the Gold Coast 2018 Commonwealth
Games, the completion of demolition, EBITDA (QLD)
the commencement of excavation and
finalising the Plan of Development at
Queen’s Wharf Brisbane.
17
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

KEY PROJECTS
QUEEN’S WHARF BRISBANE
The Star Entertainment Group – together with Destination PROJECT TIMELINE*
Brisbane Consortium partners Chow Tai Fook Enterprises
Limited and Far East Consortium International Limited –
is delivering an iconic development in Brisbane that will
revitalise the city’s heritage buildings, deliver striking
landmark architecture and will become a globally
2017
recognised destination.

On 1 January 2017, Destination Brisbane The Star Entertainment Group’s two

Consortium took possession of the existing heritage buildings will be
Queen’s Wharf Brisbane development subsequently repurposed by The Star 2017
site to begin demolition and enabling Entertainment Group into a hotel operated Commence
works on its $3 billion world-class project. by The Ritz-Carlton and a premium retail demolition and
During the 2017 financial year: precinct. The Star Entertainment Group enabling works
will retain these buildings under a at Queen’s Wharf
○○ Two CBD roads closed from January
2017 to enable the development’s safe long-dated lease and will be a 50% equity 2018 Brisbane
construction: a section of William Street, owner of the integrated resort component, Commence
from Elizabeth to Margaret streets, which includes the hotels and all public excavation works
during the build; and Queens Wharf realm areas. to remove around
Road permanently 600,000m3
○○ Destination Brisbane Consortium
The Queen’s Wharf Brisbane integrated
resort development includes a range of
of spoil 2019/20
appointed a demolition and early works Installation of
tourism, infrastructure and residential
contractor, which has erected safety above-ground
developments, including:
hoarding stretching almost 1km around infrastructure
the site that uses creative messaging to ○○ 50 new bars and restaurants
showcase Brisbane as a changing and
growing city
○○ Five new hotels, including the world
renowned The Ritz-Carlton and the
2021
Internal fit-out of
○○ As part of Destination Brisbane 6-star Rosewood, which will provide
buildings in the
Consortium’s heritage management more than 1,000 premium hotel rooms
development
approach, heritage footing ○○ New retail space
investigations were conducted, extensive
monitoring procedures and equipment
○○ Restored and repurposed 2022
heritage buildings Expected opening
were installed, and two of the nine of the core
heritage buildings in the precinct were ○○ The equivalent of 12 football fields
in size of public space integrated resort
braced by steel to ensure stability and
○○ A public Sky Deck located more than development
security ahead of demolition
○○ Demolition works commenced 100 metres above William Street 2024
○○ World-class gaming facilities (to replace Anticipated
to remove three former government
Brisbane’s existing Treasury casino) opening of the
non-heritage buildings in the precinct.
which will comprise less than 5% of repurposed
The site is expected to be level and ready the development footprint Treasury
for underground car park excavation works Building
○○ 2,000 apartments
by early 2018.
○○ A new pedestrian bridge to South Bank.
Main construction works are expected
to begin in 2019, once excavation of the The Queen’s Wharf Brisbane integrated
foundations, basements and underground resort development is the largest private
car park is complete. sector project in Queensland, stretching
from George Street to the Brisbane River,
The Star Entertainment Group will

continue to operate Treasury Brisbane
until the new integrated resort opens and
the transition to a new casino occurs.
2024
and from Queen Street to Alice Street.
The development will employ more than
2,000 workers during peak construction in
2020/21, and create more than 8,000 jobs
in Queensland when fully operational.

© Destination Brisbane Consortium. All rights reserved. Artist's impression. Subject to planning approvals.
*Timeline is indicative only.
References to years are to calendar years.

18 19
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

KEY PROJECTS
THE STAR GOLD COAST
The property has relaunched as The Star Gold Coast PROJECT TIMELINE*

after more than 30 years as Jupiters Hotel & Casino.

This transition embodies an ongoing transformation.

2017

2017
Application
to construct a
new hotel and
apartment tower
with joint venture
partners approved 2018
Pre-sales for
The luxury suite hotel under construction at The Star Gold Coast. the apartments in
the proposed joint
venture hotel and
Development works at The Star Gold Coast The Star Entertainment Group, as part apartment tower
are well advanced, with the following of its commitment to the Gold Coast, 2018
works already delivered: has also commenced work on the first Complete the
○○ A full refurbishment of all 596 hotel rooms phase of its future master plan concept, luxury suite hotel
receiving approval from the City of Gold (before the
○○ A refreshed and redesigned hotel lobby
Coast Council and the Queensland Gold Coast 2018
○○ Six new and exciting food and beverage
offerings, including the one-hatted Kiyomi,
Government for an additional hotel and
apartment tower on Broadbeach Island.
Commonwealth
Games) 2018
Cucina Vivo, Garden Kitchen & Bar, Commence
Subject to successful apartment pre-sales,
M&G Café and Bar, Mei Wei Dumplings preparatory works
the complex could take the property’s
and a new-look Atrium Bar for the new joint
transformation to a combined investment
○○ A luxurious poolside experience of up to $850 million. venture hotel
○○ An exterior refresh of the existing hotel and apartment
and a rejuvenated events lawn The new hotel and apartment tower 2021 tower (subject
is a project of the joint venture vehicle Complete to successful
○○ One of Australia’s largest permanent
– Destination Gold Coast Consortium the new joint pre-sales)
outdoor projection systems.
– including The Star Entertainment venture hotel
With these projects fully delivered, the Group and its partners Chow Tai Fook and apartment
next phase of the redevelopment and Enterprises Limited and Far East tower (subject
expansion is advancing with the following Consortium International Limited. to pre-sales
works program: and associated
The development is the first phase of
○○ Construction of the new luxury a broader master plan concept that facilities)
17 storey suite hotel, which is scheduled includes the potential for up to five hotel
to open before the Gold Coast 2018 and/or residential towers, a world class
Commonwealth Games
recreational deck with water features,
○○ Continued expansion of the food and tropical gardens, pools and spa facilities,
beverage offering, with further new and new entertainment offerings.

2021
restaurants and bars
○○ Re-energised main gaming floor
experience, connecting the existing
building through to the luxury suite hotel
○○ A refreshed property arrival experience
○○ Canal front parkland upgrade
in partnership with City of Gold
Coast Council.
Concept image only. Subject to approvals.
*Timeline is indicative only.
References to years are to financial years.

20 21
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

KEY PROJECTS
THE STAR SYDNEY
The Star Sydney, one of Sydney’s most awarded PROJECT TIMELINE*
entertainment and tourism destinations, has up
to $1 billion in capital works projects completed,
in progress or in planning.
2017
Astral Tower room
refurbishment
completed

Community
engagement
commences
for proposed
joint venture tower
(The Ritz-Carlton) 2018
Astral Residences
upgrades to be
completed
Astral Lobby and
Concept image only. Subject to all approvals.
Port Cochere
works to
commence Enabling works
An initial $500 million investment in The Star Entertainment Group is for Sovereign
The Star Sydney covers a range of works, working with its joint venture partners, Room expansion
including the expansion of restaurants Chow Tai Fook Enterprises Limited Development to commence
and bars, upgrades to the Sovereign Room, and Far East Consortium International Approval to be
gaming and retail offerings, the renovation Limited, to progress an additional submitted for
of hotel rooms and facilities, and improved $500 million of proposed development joint venture
customer flow and property access. works at The Star Sydney. The proposed
development is progressing through the
tower 2019
The 2017 financial year saw the New food and
planning stages and includes:
commencement and delivery of a range beverage assets to
of projects as part of this investment, ○○ A new hotel and residential tower be completed
including: proposed to be operated by the world
○○ The completion of the Astral Tower
renowned The Ritz-Carlton. Following
a design excellence competition 2021
hotel rooms upgrade and the overseen by a panel of industry experts Expected
Astral Residences refurbishment and after analysis and consideration of completion of
of 130 apartments community and stakeholder feedback, Sovereign Room
○○ The completion of gaming works internationally acclaimed architects expansion
including the new Vantage Room FJMT were selected to design the
(entry level domestic private gaming proposed hotel and residential tower.
experience), Stadium (the new multi- ○○ Additional food and beverage, retail,
terminal gaming experience) and the function and event space, as well as
new poker experience on the main other resort facilities and attractions.
gaming floor area
○○ The completion and launch of Latitude,
the new main gaming floor bar experience
○○ The commencement of the new Hotel Club
Lounge located in the Astral Tower, due for
2021
completion in the 2018 financial year
○○ The commencement of the Astral
lobby and Porte Cochere upgrade and
FJMT’s proposed design for a new hotel and residential tower at The Star Sydney. Concept image only. Subject to all approvals.
refresh, due for completion in the 2018
calendar year. *Timeline is indicative only.
References to years are to financial years.

22 23
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

SUSTAINABILITY

At The Star Entertainment Group, we

embrace a holistic approach to sustainability,
and its importance to the workplace
and the community. ‘Our Bright Future’ WORLD CLASS LEADING GUEST TALENTED
PROPERTIES COMPANY WELLBEING TEAMS
is the core strategy developed, which
The Star develops and operates The Star is an ethical corporate The Star is committed to giving The Star attracts, develops
combines environmental, social and world class liveable, environmentally citizen leading the way in our guests a safe, secure and and retains a talented,
governance objectives under four pillars. sustainable and resilient integrated responsible gaming and comfortable experience diverse and engaged team
resorts and precincts maintaining strong relationships
The strategy is underpinned by an with our stakeholders
annual materiality assessment.

#
1
‘GLOBAL LEADER’
$
13
MILLION
+
18
MILLION
20 %
TARGET OF ASIAN
CASINO AND CONTRIBUTION VISITORS REPRESENTATION IN
GAMING INDUSTRY Value of contribution to community The approximate number of guests LEADERSHIP ROLES
The Star Entertainment Group was ranked groups, charitable organisations and who visited The Star Sydney, The Star
global leader of the Casino and Gaming partnerships by The Star Entertainment Gold Coast and Treasury Brisbane To better reflect the diversity of our
Industry in the Dow Jones Sustainability Group’s properties in FY2017 team members and guests
Index (DJSI) assessment 2016

6 STAR
GREEN STAR
$
350K 400
DONATED LOCALLY SECURITY AND
+
APPRENTICE
70 +
COMMUNITIES IN SYDNEY SURVEILLANCE TEAM CHEFS
RATING V1 The Star Sydney is proud to support Security and surveillance team members First, second and third year apprentice
its neighbours in the City of Sydney across The Star Entertainment Group’s chefs studied at The Star Culinary
Awarded for the Queen’s Wharf Brisbane
and launched a Community Grants properties keep guests safe Institute in FY2017
integrated resort development
Program in August 2016

$
780K
ONGOING COST
$
18.9m 15,000 1
CONTRIBUTED COMMUNITY
#
OUTSTANDING
SAVINGS ACHIEVED TO RESPONSIBLE NEWSLETTERS ACHIEVEMENT
PER ANNUM GAMBLING FUND DELIVERED IN TRAINING
Cost savings from energy, water (NSW) The Star Sydney communicates with Awarded to our Queensland properties at
and maintenance efficiency projects The Responsible Gambling Fund (NSW) local residents in Pyrmont providing the Queensland Hotel Association (QHA)
implemented in FY2017 supports projects and services that aim to development and operational updates Awards for Excellence
reduce and prevent the harms associated
with problem gambling

24 25
THE STAR ENTERTAINMENT GROUP
SUSTAINABILITY
SUSTAINABILITY STRATEGY
REDUCING RESOURCE USE
The Star Entertainment Group continues
to target sustainable reductions in resource
use through capital and operational
energy and water improvement projects.
To support this commitment, The Star
Entertainment Group set long term carbon
and water targets in May 2017 to achieve
a 30% reduction in carbon and water
intensity by FY2023 against a baseline of
FY2013 on a square meter basis. For the
2017 financial year and in this Report,
resource intensity has been reported on
a per visitor basis in addition to absolute
consumption. From FY2018, intensity
reporting will move from visitation to
square meters. As the company’s portfolio
is expected to grow substantially with new
assets being developed and new loads
coming on-line, resource use is expected
to increase in absolute terms. However,
consumption per square meter should
decrease as energy and water retrofit
projects occur and new, more efficient floor
space opens over time.
To ensure the Group continues to prioritise
energy efficiency in an expanding portfolio
with energy prices expected to continue to
rise, an energy and water project pipeline
was established in FY2015 to ensure
projects are implemented each year that
deliver cost and environmental benefits.
To date, the Group has implemented
over twenty six projects delivering
environmental savings, with financial
savings of over $1.4 million achieved in
the last two financial years.
CARBON EMISSIONS
6.7
6.0
5.7
105,099
108,595
104,953
FY13 FY14 FY15
CARBON EMISSIONS EMISSIONS INTENSITY
(TONNES CO2-E) (KG CO2-E/VISITOR)
26
The Group has also set more stringent
controls for developments and new projects
through the revised Sustainable Design
and Operational Standards, specifying
mandatory and voluntary requirements to
ensure new build and refurbishment projects
maximise energy and water savings and
best practice sustainability opportunities.
The following resource saving projects
were delivered in FY2017:
○○ The Star Sydney refurbished the
Astral Tower and Residences, delivering
1,200 MWh in electricity savings and
over 2,000 GJ in gas savings and over
26,000 kL of water savings per annum.
○○ Treasury Brisbane introduced a chiller
control strategy at 159 William Street,
Brisbane (with expected savings of
240 MWh) and installed power factor
correction to the Treasury buildings.
To reduce energy from lighting, an
upgrade to LEDs on the main gaming
floor reduced the lighting load from
60 kW to 19 kW.
○○ The Star Gold Coast has progressed
through a $40 million infrastructure
project to allow for expansion plans
to the island with more efficient plant
and equipment. The benefits of these
upgrades are expected to be realised
from FY2018 as the projects complete.
ENERGY CONSUMPTION
37.2
33.2
5.8
5.7
584,445
104,829
101,170
607,476
FY16 FY17 FY13 FY14
ENERGY CONSUMPTION
(GJ)
The refurbishment of the existing hotel’s
596 rooms was completed in 2017 and
included a number of sustainable design
features, delivering estimated energy
savings of 1,334 MWh and water savings
of 22,000 kL per annum.
ENERGY AND CARBON EMISSIONS
The Group’s total emissions in carbon
dioxide equivalents (CO2-e) from gas and
electricity for the 2017 financial year were
101,170 tonnes. This footprint equates
to a decrease of 3.5% from 2016 and a
decrease of 6.8% from base year FY2013.
The Group’s total energy consumption
from gas and electricity for the 2017
financial year was 598,576 gigajoules (GJ)
which was a 2.3% decrease from the 2016
financial year and a 1.5% reduction from
base year FY2013. On an intensity basis,
the Group’s carbon emissions decreased
from 5.8 kg CO2-e/visitor in 2016 to 5.7 kg
CO2-e/visitor in 2017 and achieved a 15%
reduction from 6.7 kg CO2-e/visitor from
base year FY2013. Energy consumption
per visitor decreased from 33.8 MJ/visitor
in FY2016 to 33.7 MJ/visitor in FY2017,
and achieved a 9% MJ/visitor reduction
from 37.2 MJ/visitor from base year FY2013.
WATER CONSUMPTION
The Group’s total potable water
consumption was 817,121 kL in the 2017
financial year, a 3.4% decrease from FY2016
however an overall increase of 18.7% from
33.8 33.7
32.5
612,878
598,576
599,553
FY15 FY16 FY17
ENERGY INTENSITY
(MJ/VISITOR)
base year FY2013. On an intensity basis, the
Group’s water consumption has decreased
from 46.6 litres per visitor in FY2016 to
46.1 litres per visitor in FY2017 however
intensity has increased from 42.2 litres per
visitor in base year FY2013.
All properties except The Star Gold
Coast experienced decreases in water
consumption in the FY2017 when compared
to FY2016, saving over 28,740 kL in total.
The Star Gold Coast’s water consumption
increased by 3,000 kL which was expected
due to the reverse osmosis plant being
stopped in September 2016 to allow for
relocation and upsizing in capacity as part
of the infrastructure improvement project.
The new plant will double in size and will
be installed in 2018.
TARGETING RECYCLING
IMPROVEMENTS
The Group takes a comprehensive
approach to improving landfill diversion
with the Waste Strategy targeting recycling
improvements across all areas of the
business from offices, to bars, restaurants,
hotel rooms and entertainment offerings.
The Group has been tracking recycling
performance against the base year
FY2013 to ensure that improvements are
measurable, continue to divert increased
waste volumes from landfill and promote
behavior change across the organisation.
WATER CONSUMPTION
42.2 42.0
38.9
688,440
683,898
FY13 FY14 FY15
WATER CONSUMPTION
(KL)
* 2.13% of FY2017 utility accounts were unbilled at the time of reporting. The missing usage has been estimated as 1.0% (1.1 GWh) for electricity, 0.7% (1.3 Tj) for gas and 3.5% (28.9 ML) for water.
* The FY2013 baseline for waste has been recalculated. ‘Recycling intensity’ kg/visitor has been used in FY2017, not ‘waste to landfill intensity kg/visitor’ as used in the FY2016 report, which
better reflects recycling performance.
* Visitation numbers have been restated for The Star Sydney in FY2016 impacting the FY2016 intensity per visitor metric.
Across the Group, total recycling rates
have increased from 10% diversion
in FY2013 to 36% diversion across all
operations in FY2017. The Star Sydney
reached the highest diversion rate to date
achieving a rate of 49% within the year.
On an intensity basis, recycling per visitor
in tonnes has increased as the Group’s
recycling performance increased. During
the financial year a number of initiatives
have been introduced to ensure continuous
improvement including:
○○ the introduction of commingle bins as
part of the Astral Tower and Residences
refurbishment
○○ the rollout of new dual recycling bins
for guest use at The Star Gold Coast
and Treasury Brisbane
○○ the establishment of dedicated Waste
Strategy Groups focusing on training,
auditing, process improvement and
behavioural change programs
○○ undertaking multiple site audits at
The Star Sydney with specialised
training running in peak periods to
maximise recycling in bars
○○ expanding the Soap Aid recycling
scheme to The Darling Hotel, collecting
over 1,450 kgs of used soaps since the
program began
○○ the commencement of a program to
recycle Nepresso capsules from
The Star Gold Coast hotel rooms. To date
over 3,500 capsules have been recycled
RECYCLING RATES
46.6
46.1
0.03
845,861
776,229
817,121
10
FY16 FY17 FY13
WATER RECYCLING RATE (%)
(L/VISITOR)
ANNUAL REPORT 2017
○○ the celebration of National Recycling
Week with information stands, team
member giveaways, and training surveys
on recycling.
CLIMATE RISK ASSESSMENT
The Star Entertainment Group recognises
that its properties may be susceptible to
future changes in climate. Accordingly,
we are committed to improving the
resilience of our business operations,
our assets, and the precincts in which
our properties are located.
The Star Entertainment Group completed
climate risk assessments for each of our
properties during FY2017. The project
assessed the predicted climate variables
for each location including the expected
changes in rainfall, temperature and
extreme weather events, and assessed
these predicted physical impacts on the
buildings. By analysing the predicted
climate exposure and property sensitivity,
the climate risk was identified for each of
our properties. To manage these risks into
the future and to design and build with
a changing climate in mind, prioritised
mitigation and adaptation actions have
been developed and are included in
the Group’s Sustainable Design and
Operational Standards.
0.16
0.15
0.14
0.09
20
36
33
31
FY14 FY15 FY16 FY17
RECYCLING RATE INTENSITY
(KG/VISITOR)
27
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

SUSTAINABILITY
DELIVERING WORLD CLASS PROPERTIES

GREEN BUILDING RATINGS RATING STATUS

In the 2017 financial year, The Star
Entertainment Group continued to QUEEN’S WHARF 6 Star Green Star Communities
achieve and commit to green building BRISBANE Rating v1 achieved
ratings with both Green Star and the Integrated resort
Communities v1
National Australian Built Environment development
Rating System (NABERS). Committed to achieving a 6 Star
Green Star Design & As Built rating
Destination Brisbane Consortium for non‑residential new buildings
(on behalf of The Star Entertainment
Group and its joint venture partners) was Committed to achieving industry
awarded a 6 Star Green Star Communities best practice design for existing
Rating v1 for the Queen’s Wharf Brisbane heritage buildings
development which represents world
leadership in master planning. Committed to achieving Green
As development progresses, the Star Performance ratings for each
Queen’s Wharf Brisbane integrated resort non-residential building
development will move towards achieving
6 Star Green Star Design & As Built rating SYDNEY CORPORATE 5 Star NABERS Energy Tenancy
commitments for all new buildings, and OFFICE Rating achieved A newly refurbished room at The Astral Residences.
aims to achieve Australian best practice 60 Union Street,
sustainability outcomes on the repurposing Pyrmont NSW
PLANNING AND DESIGNING THE DESIGN ELEMENTS FOR THE ASTRAL TOWER AND RESIDENCES INCLUDED:
of existing  heritage buildings.
IN SUSTAINABILITY –
The Star Entertainment Group also registered THE STAR SYDNEY Committed to achieving a 5 Star THE ASTRAL TOWER
the proposed The Ritz-Carlton hotel and Proposed The Ritz-Carlton Green Star Design & As Built rating 35W HALOGEN
AND RESIDENCES DOWNLIGHTS BEING
residential tower at The Star Sydney for a hotel and residential tower
The Star Entertainment Group REPLACED WITH
5 Star Green Star Design & As Built rating, 7.5W LED LIGHTS
focuses on achieving energy and water
and The Star Entertainment Group’s efficiency outcomes in all refurbishment
corporate office in New South Wales was and development projects without
certified with a NABERS Energy Tenancy comprising guest experience. 
Rating, achieving 5 Stars.
In the recent $130 million TOILETS ARE
refurbishment of the Astral Tower and DUAL FLUSH
Residences at The Star Sydney, modern 4 STAR WELS RATED
luxury was achieved in each of the
375 rooms refurbished. This upgrade
also contributed towards achievement
of our sustainability goals.
Our Sustainable Design and Operational
Standards were applied in the planning
REPLACEMENT OF
and design phase, focusing on energy OLD FAN COIL
efficient lighting selection, smart controls, UNITS WITH MORE
water efficient fixtures, fittings and toilets EFFICIENT MODELS
with high WELS ratings, and in-room
recycling for guests.
Through improved specifications in
BATHROOM TAPS
design, the refurbishment project is AND SHOWER
estimated to deliver over 1,200 MWh HEADS ARE NOW
in electricity savings, over 2,000 GJ in 5 STAR WELS RATED
gas savings and over 26,000 kL of water
savings per annum. These energy savings
equate to a total annual carbon saving
of approximately 900 tonnes, which is
UPGRADING ROOM
approximately 2.4 tonnes of CO2 for CONTROLS AND IN-
each room refurbished. ROOM TECHNOLOGY
WITH C4 SUITE
The sustainable design features used CONTROL SYSTEM THAT
in the refurbishment of the Astral Tower ENABLES THE ROOM TO
and Residences are estimated to deliver GO INTO A SLEEP MODE
TO CONSERVE ENERGY
annual cost savings of over $370,000 in
energy, water and maintenance expenses.

Illustration only. Not to scale.

© Destination Brisbane Consortium. All rights reserved. Artist's impression. Subject to planning approvals.

28 29
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

SUSTAINABILITY SUSTAINABILITY
DELIVERING WORLD CLASS PROPERTIES LEADING COMPANY

SUSTAINABLE PROCUREMENT The Star Entertainment Group has a proud record of

The Star Entertainment Group is committed to continuous
improvement in supply chain management and takes a long- responsible corporate citizenship and embraces a culture
term view to managing and maintaining relationships with
suppliers and contractors.
of social responsibility, ethical behavior and community
During the year, our Sustainable Procurement Principles support, to promote sustainable business practices.
were refreshed to require our suppliers to consider ethical,
environmental and social sustainability impacts on the
communities in which we operate, as well as overall resource
use. We have taken steps to conduct a gap analysis of our
supply chain to understand high impact areas that will form
the basis of our Responsible Supply Chain Strategy.

FY2017 SUSTAINABLE PROCUREMENT INITIATIVES

Across the business, we have been working with our suppliers on
innovative and sustainable product and process solutions which
include the following improvements:
○○ Installed wine taps in high volume bar areas and
self-serve water fountains to reduce glass bottles and
plastic packaging
○○ Moving to polycarbonate and melamine reusable products
in bars and restaurants, to avoid using disposable plastic
for eat in options
○○ Using iPads for stocktake and food safety recording,
reducing paper wastage
○○ Expanded the towel and sheet reuse choices for guests in
the Astral Tower and Residences, reducing energy, water
and detergent use from laundering
○○ Implemented printing practices to reduce paper usage
and subsequent CO2 emissions, by standardising
printing configurations
○○ Over 250,000 litres of our used cooking oil was recycled into
biodiesel and stockfeed manufacture (our oil management
program delivered cost savings of over $70,000 during
the year)
○○ Fresh cooking oil is now delivered in tanks, which has REUSING WASTE OYSTER SHELLS
avoided the use of more than 22,500 20 litre bins that would TO IMPROVE HARBOURSIDE ECOLOGY
have otherwise gone to landfill
WITH OCEANWATCH AUSTRALIA
○○ Increasing spending on biodegradable and carbon neutral
The Star Sydney was delighted to collaborate with OceanWatch
food service packaging and cups by 50% between FY2016
Australia to donate used oyster shells from the Harvest
and FY2017 Image above: The Star Sydney is honoured to partner with City West Housing, a non-for-profit organisation supporting low to moderate income earners with housing, to offer a free cricket
Buffet at The Star Sydney to OceanWatch Australia’s Living pilot program for teenagers.
○○ All disposable napkin ranges are now made with Shoreline’s Program. The program aims to re‑establish
Forest Stewardship Council (FSC) certified pulp and are Australian intertidal reefs supporting habitat growth in TRUSTED COMMUNITY Support is provided in a variety of forms, Relationships with the premier partners
carbon neutral.
dedicated rehabilitation areas across Sydney Harbour. reflecting the diversity of groups with which announced by The Star Sydney in
PARTNERS
Over a number of restaurant sittings, The Star Sydney’s The Star Entertainment Group engages. 2016 – Taronga Conservation Society
Supporting local and state based
Harvest Buffet and stewarding teams worked with OceanWatch This includes active participation by team Australia, Barnardos Australia and
charities as well as community groups
Australia to collect over 500 kgs of used oyster shells. Once members, direct assistance via grants, and Chris O’Brien Lifehouse also continued
and events is an important factor in
collected, the Ocean Watch Australia team processes, cleans sponsorship arrangements. Each property in the 2017 financial year. To ensure
The Star Entertainment Group’s
and bags the shells for placement in Sydney Harbour is proud to also provide in-kind use of our the sustainability of our partnerships,
commitment to foster local spirit and be
to create artificial reefs which prevent erosion and create world-class venues, including the provision contributions are characterised by strong
active and valued participants in each of
a habitat for marine life. of event management and food and synergies and a natural association with
the cities in which it operates. In the 2017
beverage supplies. our properties in Sydney, Brisbane and
OceanWatch Australia works with the community to ensure financial year, The Star Entertainment
the Gold Coast.
Australia’s marine environment is healthy, productive, valued Group is proud to have made contributions The Star Entertainment Group has built on
and used in a responsible way. in excess of $13 million to a range of its long-term involvement with charities
community groups and events, and in Queensland including Choice, Passion,
charitable and sporting organisations. Life (formerly the Cerebral Palsy League)
and Surf Life Saving Queensland.
Image: The Star Entertainment Group team members
with OceanWatch Australia Program Manager
Simon Rowe during a visit to Oceanwatch Living
Shoreline’s Program at Lane Cove National Park.

30 31
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

SUSTAINABILITY
LEADING COMPANY

THE STAR SYDNEY TREASURY BRISBANE

In the 2017 financial year, The Star Treasury Brisbane is a proud supporter to In conjunction with The Star Gold Coast, ○○ Being a Presenting Partner of the
Sydney committed collective financial several community-focused organisations Treasury Brisbane again supported Ronald Asia Pacific Screen Awards (APSA),
funding of $1.5 million to Barnardos across the sporting, charity and cultural McDonald House South East Queensland Asia Pacific’s highest accolade
Australia, Taronga Conservation Society sectors. During the 2017 financial year, (RMHSEQ). Treasury Brisbane was a major in film
Australia and Chris O’Brien Lifehouse. Treasury Brisbane continued its association sponsor of the Brisbane International ○○ Participating in the National Trust
To further support these relationships, with Queensland Rugby League as Official tennis tournament and raised $83,500 for of Queensland’s Brisbane Open
team members participated in a wide Partner, and in conjunction with The RMHSEQ through the ‘Aces for Hearts’ House event by opening Treasury
range of volunteering activities, including Star Gold Coast, was the official home initiative (for every ace served, $100 was to the public and conducting tours
a complete family home renovation project of the XXXX Queensland Maroons. City donated to the charity). Treasury team ○○ Being a Partner of the Brisbane
with Barnardos Australia, supporting pride and local spirit are key elements members also committed their time to Racing Club with naming rights for
bush regeneration for vital wildlife of our community strategy, and in create a ‘Make a Meal’ event for sick children Treasury Brisbane Ladies Oaks Day.
conservation programs for Taronga Zoo, September 2016, Treasury Brisbane was and their families that included a buffet
and volunteering their time to art project proud to support one of Australia’s major smorgasbord and a visit from Santa. More than $20,000 was also donated
‘Arterie’ at Chris O’Brien Lifehouse. international arts and cultural events to other community organisations
Treasury Brisbane was also proud through direct contributions and
as one of the Principal Partners of the
The Star Sydney is proud to support to be involved in other events and our ‘Open Your Hearts’ program
Brisbane Festival. Treasury Brisbane and
its neighbours in the city of Sydney partnerships, including: that invites team members to
the Brisbane Festival collaborated to deliver
and launched a Community Grants ○○ Celebrating 15 years of consecutive nominate worthy recipients for
an interactive pop-up dance experience –
Program in August 2016. Friends of support for Choice, Passion, Life charitable donations.
‘You should be Dancing’.
Pyrmont Community Centre, the Harris (formerly the Cerebral Palsy League) and
Community Scholarship Fund and the being Presenting Partner for the Live Large
Pyrmont History Group were the first to Festival in South Bank
receive a community grant from The Star
Sydney. The Star is also proud to partner
with City West Housing, a non-for-profit
organisation supporting low to moderate Entertainment on Sky Terrace during The Star Chinese Festival of Racing as
part of The Star Sydney’s partnership with the Australian Turf Club (ATC).
income earners with housing, to offer a
free cricket pilot program for teenagers
living in the Ultimo and Pyrmont areas.
The Star Sydney was also involved in
a range of local event and sporting
partnerships, including:
○○ Being the Official Partner of the NSW
Rugby League and the official home of
the NSW Blues, including developing
the NSW Blatchys Blues SMARTWiG
campaign for fans
○○ Being a Premier Partner of the Sydney
Swans and hosting key Sydney Swans
events, including the Sydney Swans
Guernsey Presentation and Hall of Fame
Induction Dinner
○○ Being a Foundation Partner and the
Official Entertainment Partner of
the Australian Turf Club, including
participation in The Star Doncaster Mile,
The Star Epsom and The Star Chinese
Festival of Racing
○○ Joining OzHarvest, Australia’s leading
food rescue organisation, to serve
thousands of people a free hot meal
The Star Sydney's Managing Director Greg Hawkins
in Martin Place, as part of the ‘Think. with Momofuku Seiōbo Head Chef Paul Carmichael
Eat. Save’ campaign. during Oz Harvest's 'CEO Cook Off’. Collectively
the event raised $1.7 million, which results in
3.4 million meals to people in need.

Treasury Brisbane was proud to support one of Australia’s major international

arts and cultural events as one of the Principal Partners of the Brisbane Festival.

32 33
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

SUSTAINABILITY
LEADING COMPANY

The new inflatable rescue boat donated by

The Star Gold Coast to Surf Life Saving Queensland. Treasury Brisbane chefs with mum Jenny Milne and her son Robbie.

THE STAR GOLD COAST

The Star Gold Coast maintains long-term The Gold Coast property hosted a
Daffodil Day morning tea with charity
relationships with key charity partners in
Queensland, and actively encourages team partner Cancer Council Queensland,
members to contribute to the community unveiling an edible display to celebrate
in which they live, work and play. 30 years of the iconic fundraiser which helps
The Star Gold Coast continued its support of
make a difference for cancer patients and
their families.
Surf Life Saving Queensland (a partnership
The Star Gold Coast also supported the
which began in 1994) by donating a new
inflatable rescue boat to assist in keeping Currumbin Wildlife Hospital Foundation
local beachgoers safe. and was a platinum sponsor of the
Foundation’s ‘Sanctuary Under the Stars’
fundraising event. The Star Gold Coast
TO ENSURE THE provided much-needed winter warmth to
sick or injured animals as well by donating
SUSTAINABILITY OF hundreds of blankets to the Currumbin
Wildlife Hospital.
OUR PARTNERSHIPS,
Team members nominated and supported
CONTRIBUTIONS ARE local organisations and charities through
CHARACTERISED BY our ‘Open Your Hearts’ program and other
in-kind donations collectively totalling
STRONG SYNERGIES close to $60,000.
AND A NATURAL
ASSOCIATION WITH
OUR PROPERTIES.
The Star Gold Coast is also involved in
various event and sporting partnerships
on the Gold Coast, including:
○○ First Official Partner of the Gold Coast
2018 Commonwealth Games. In April
2017, The Star Gold Coast proudly
hosted a breakfast to celebrate one
year until the Commonwealth Games.
Guests included Gold Coast 2018
Commonwealth Games ambassadors
and athletes Sally Pearson OAM, Steve
Moneghetti AM, and Gold Coast 2018
Commonwealth Games Corporation
Chairman Peter Beattie AC
○○ Official Partner of Blues on Broadbeach,
an iconic Australian blues festival that
nurtures Australian talent and provides
a stage for international acts
○○ Naming rights sponsor of the Pan Pacific
Masters Games, which attracted more
than 14,000 athletes from 20 countries
○○ Official Partner of the Queensland
Rugby League (QRL) and Home of
the XXXX Queensland Maroons, in
conjunction with Treasury Brisbane.
WE’RE PROUD TO COMMUNITY PARTNERSHIP:
RONALD MCDONALD HOUSE SOUTH
thrilled to have also delivered and
sponsored the heart of house area that
SUPPORT RONALD EAST QUEENSLAND consists of a communal kitchen, dining
On 5 November 2016, Treasury Brisbane and lounge area.
MCDONALD HOUSE and The Star Gold Coast team members
The fundraising activities benefited
SOUTH EAST were proud to be on hand to support
Ronald McDonald House South East Ronald McDonald House’s two Family
QUEENSLAND WITH Queensland (RMHSEQ) with the official Rooms at the Gold Coast University
Hospital as well.
opening of their new South Brisbane facility.
THE OPENING OF The Star Entertainment Group also
RMHSEQ provides accommodation for
THEIR NEW SOUTH the families of seriously ill children who provided support to the fit-out works of
the new house by putting RMHSEQ in
BRISBANE HOUSE. live more than 50km from the treatment
touch with some of our furniture and
GEOFF HOGG,
hospital in Brisbane.
kitchen suppliers to reap significant
MANAGING DIRECTOR In 2014, Treasury Brisbane and The Star
Gold Coast pledged $3 million over three
savings of approximately $140,000.
QUEENSLAND
THE STAR ENTERTAINMENT GROUP years to assist in the construction of a In addition to their financial contribution,
Treasury Brisbane and The Star
new house in Brisbane. Both properties
have undertaken a number of initiatives Gold Coast have found other ways to
help the charity through the provision
to raise money for the house.
of in-kind services. Treasury Brisbane
The new house is one of the largest
Ronald McDonald Houses in the world,
hosted Ronald McDonald House
‘Captain of Industry’ fundraising lunches
includes 70 accommodation rooms, play including their inaugural Business
areas, outdoor space, laundry facilities Leaders Group luncheon.
and a rooftop function area. We are

34 35
THE STAR ENTERTAINMENT GROUP
SUSTAINABILITY
LEADING COMPANY
AN INTEGRAL
PART OF THE
DAILY OPERATIONS
IS THE PROVISION
OF A SAFE AND
SUPPORTIVE
ENVIRONMENT
FOR OUR TEAM
MEMBERS AND
OUR GUESTS.
RESPONSIBLE GAMBLING
The Star Entertainment Group provides
a variety of engaging entertainment
experiences at its properties. An integral
part of the daily operations is the provision
of a safe and supportive environment for
our team members and our guests.
While many of The Star Entertainment
Group’s guests enjoy gambling as part of
their leisure and entertainment experience
and do so within their financial means,
some guests experience problems in
controlling their gambling habits.
The Star Entertainment Group has in place
a responsible gambling program which is
designed to identify at an early stage guests
who may be exhibiting signs of having
problems in controlling their gambling
habits, and subsequently support those
guests while they seek counselling or
other appropriate treatment.
The objective of the responsible gambling
program is to minimise the potential
harm that may be caused by gambling
(such as financial hardship, emotional
distress and relationship breakdown), and
to provide guests with the means to make
informed decisions about managing their
gambling behaviours.
Key operational aspects of The Star
Entertainment Group’s responsible
gambling program are:
○○ Providing guests with readily
accessible information about problem
gambling, including symptoms and
treatment options
○○ Working with external support agencies
to provide assistance and information
for guests experiencing problems in
controlling their gambling habits
36
Team members at The Australasian Croupier Championships held at The Star Gold Coast.
○○ Providing sensitive and confidential
support to guests seeking to exclude
themselves from attending one or more
of The Star Entertainment Group’s
casinos (The Star Entertainment Group
has agreements with selected Gambling
Help Services in Queensland and
New South Wales to allow individuals
to self-exclude from a casino without
having to attend the casino in person)
○○ Assisting self-excluded guests to also
self-exclude from other gambling venues
○○ Providing clocks throughout the casinos
so that guests are aware of time spent on
gambling activities.
○○ Encouraging guests to take regular
breaks in play
○○ Preventing intoxicated guests from
participating in gambling activities
○○ Prohibiting the cashing of cheques to
fund gambling activities (other than
by prior arrangement)
○○ Prohibiting betting on credit terms
○○ Conducting responsible advertising and
marketing campaigns in compliance
with applicable regulations and industry
codes of practice
100 m
$ +
CONTRIBUTED TO
THE QLD GAMBLING
COMMUNITY BENEFIT
FUND* SINCE 1987
* previously the Jupiters Casino Community
Benefit fund
Board oversight of The Star Entertainment
Group’s responsible gambling program
is provided by the People, Culture and
Social Responsibility Committee. The
operational aspects of the responsible
gambling program are implemented and
applied by The Star Entertainment Group’s
three Patron Liaison Managers who report
directly to The Star Entertainment Group’s
Chief Risk Officer.
There are also Responsible Gambling
Liaison Officers who are available at each
property to provide on-the-floor support to
guests and their relatives.
The following initiatives also support
The Star Entertainment Group’s approach
to responsible gambling:
○○ All new team members are introduced
to responsible gambling practices as
part of their orientation and complete
a bi-annual responsible gambling
refresher training session
○○ Our Security and Surveillance staff are
trained to prevent minors and those
persons who have chosen to self-exclude
themselves from gaining access to
gaming areas
○○ Each property operates under a
‘Responsible Gambling Code of
Practice’ which sets the standards
and requirements to be followed for
the responsible delivery of gambling
products and services
○○ The Star Entertainment Group’s Patron
Liaison Managers are members of the
National Association for Gambling
Studies Inc., which is a non-profit
organisation that aims to promote
discussion and research into all areas
of gambling activity
In Queensland, one of The Star
Entertainment Group’s Patron Liaison
Managers attends Responsible Gambling
Network meetings on the Gold Coast,
ANNUAL REPORT 2017
SINCE 2013, THE STAR
ENTERTAINMENT GROUP HAS
CONDUCTED RESPONSIBLE GAMBLING
AWARENESS WEEKS, IN ADDITION
TO THOSE ALREADY ORGANISED BY
COMMUNITY SUPPORT GROUPS.
in Brisbane and on the Sunshine Coast. and the RSA obligations placed on its
The meetings are conducted by the
Gambling Help service in Queensland and
properties in Sydney, the Gold Coast and
Brisbane are found in relevant state-based
are attended by industry participants and
the Queensland Office of Liquor and Gaming
legislation, regulations and liquor licences.
Regulation. The Responsible Gambling
The Star Entertainment Group’s commitment
to RSA is monitored by a RSA Committee
Network provides a forum to exchange
information and views about approaches
comprising of senior operational team
members who meet bi-monthly to review
to responsible gambling and finding
solutions, to improve the management of
matters such as changes to legislation,
incidents, trend reports and upcoming events.
problem gambling.
At each property, all team members
A percentage of gaming taxes paid by
who are directly involved in the service
The Star Entertainment Group is directed
or supply of alcohol, including those
to the Gambling Community Benefit Fund
supervising or managing these processes
in Queensland (previously the Jupiters
must have a current RSA training course
Casino Benefit fund). Since 1987 more
certificate. Team members who are not
than $100 million has been contributed to
directly involved in the service or supply
the Gambling Community Benefit Fund
of liquor are required to complete the in-
for grants to community groups across
house RSA training upon commencement
Southern Queensland.
of employment.
In the 2017 financial year, The Star
For our guests, RSA awareness is promoted
Entertainment Group contributed $18.9
through brochures which are available at
million to the Responsible Gambling Fund
the casino entrances at each property.
(NSW). Funds are allocated, through the
New South Wales government, to support In addition to strict refusal of entry
various projects and services that aim to policies, each property has in place
reduce and prevent the potential harms processes for:
associated with problem gambling.
○○ Monitoring that guests on the premises
are not unduly affected by excess
In New South Wales, The Star
Entertainment Group engages BetCare, a
dedicated independent counselling service,
consumption of alcohol
○○ Empowering food and beverage
to provide assistance for distressed guests, managers to identify high-risk periods
and manage consumption by limiting
including 24/7 crisis intervention. BetCare
also assists with gambling assessments for the amount of drinks that can be
purchased at any one time
guests seeking revocation of self-exclusion
agreements and provides specialised ○○ Mandatory reporting of all serious RSA
responsible gambling training to our related incidents (to be documented
within the approved incident reporting
Responsible Gambling Liaison Officers.
databases and records)
Since 2013, The Star Entertainment Group
The Star Entertainment Group’s properties
has conducted responsible gambling
have also taken the following measures to
awareness weeks, in addition to those
support responsible service of alcohol:
already organised by community
support groups. ○○ The use of toughened or tempered
glass for many of the beverages served
in the public areas of the Gold Coast
RESPONSIBLE SERVICE
and Brisbane casino properties
OF ALCOHOL (excluding restaurants)
Responsible Service of Alcohol (RSA) ○○ The use of toughened or tempered glass
aims to reduce the adverse health, social in the Main Gaming Floor venues and
and economic consequences of alcohol the use of plastic drinking vessels
consumption for individuals, their family,
at Sky Terrace, the Sports Bar and
friends and the community.
Marquee Nightclub during restricted
The Star Entertainment Group’s properties periods at The Star Sydney.
operate in a highly regulated industry
37
THE STAR ENTERTAINMENT GROUP
SUSTAINABILITY
GUEST WELLBEING
Promoting guest wellbeing by providing a safe and enjoyable
environment across our properties is of paramount importance
to The Star Entertainment Group.
The Star Entertainment Group properties welcome around 18 million guests per annum.
The Star Entertainment Group’s
properties are pre-eminent international
tourist destinations that deliver a
range of offerings including food and
beverage, accommodation, theatre, live
entertainment and gaming to around
18 million guests per year.
The Star Entertainment Group is
committed to providing all guests with a
safe, secure and comfortable experience
at each of our properties. Our properties
are subject to a high level of oversight
from various external regulators. The Star
Entertainment Group works with police,
casino regulators and the local community
in each city so our properties remain safe
for all our local and international guests.
The Star Entertainment Group takes
a zero-tolerance approach to illegal,
undesirable and anti-social behaviour in
conjunction with its Responsible Gambling
and Responsible Service of Alcohol
(RSA) practices.
38
SECURITY AND SURVEILLANCE
The Star Entertainment Group’s properties
maintain leading security and surveillance
operations. All properties are supported by
24 hours-a-day seven-days-a-week security
and surveillance operations.
Across our three properties our security
and surveillance team comprises more
than 400 people. Each property has in
place standard operating procedures to
deal with and respond to any suspected
undesirable conduct. An incidents register
is maintained at each property and the
internal compliance team reviews all
requirements, and conducts regular
audits to support compliance with
relevant legislation and policies.
NEIGHBOURHOOD
ENGAGEMENT
A ‘Neighbourhood Advisory Panel’ has
been set up at The Star Sydney to provide
a formal and ongoing engagement
opportunity between The Star Sydney
and its neighbours. The panel provides an
opportunity to learn more about
The Star Sydney’s operations and to
suggest solutions or address concerns to
neighbourhood issues.
A community newsletter is also delivered
to 5,000 local residents and businesses in
the Pyrmont area, providing updates on
The Star Sydney’s plans.
Online development updates for residents
and stakeholders are provided at our
Queensland properties.
The Star Entertainment Group has initiated
a pilot program at The Star Sydney to
engage our guests on our sustainability
products and services (to be conducted
through outreach programs in our hotels).
SUSTAINABILITY
TALENTED TEAMS
The Star Entertainment Group is proud of its talented and
diverse workforce and is committed to equipping its team
members with the knowledge, tools and passion to deliver
thrilling and authentic guest experiences.
Matt Bekier, Managing Director and CEO The Star Entertainment Group, and Queensland
Attorney-General, Minister for Justice and Minister for Training and Skills, Hon. Yvette D’Ath MP
with graduates from the International Hospitality Service Program, the flagship program
of the Queensland Hotel & Hospitality School.
LEARNING AND DEVELOPMENT
Building our internal capability through
the provision of learning and development
opportunities for our people is integral
to The Star Entertainment Group’s vision
to become Australia’s leading integrated
resort company. Developing a pipeline of
future tourism and hospitality workers
by continuously upskilling our people in
all areas and levels of the business is a
core priority.
In addition to internal training programs,
Learning & Development teams across our
properties partner with external training
organisations such as TAFE, hospitality
schools and universities, allowing us to
provide our team members with a range
of learning activities that are nationally
recognised and accredited.
KEY LEARNING AND
DEVELOPMENT PROGRAMS
○○ The Star Culinary Institute (delivered
with TAFE NSW and TAFE QLD)
continued to create training and
mentoring opportunities for young chefs
through the Apprentice Chef program.
○○ The program provides unique, supportive
onsite learning experiences including
regular master classes in consultation
with industry experts. In the 2017
financial year, over 70 apprentice chefs
were enrolled in the program, undertaking
rotations across our properties.
○○ The Queensland Hotel & Hospitality
School (a partnership with TAFE
Queensland) celebrated its first year
of operation in December 2016.
The development of the school’s three
courses – the International Hospitality
Service Program, culinary arts
apprenticeships, and front-of-house
apprenticeships – is overseen by an
industry panel comprised of many of the
state’s leading global brands. The school’s
flagship International Hospitality Service
Program is designed to develop food and
beverage service skills for work in luxury
5 and 6-star properties and students
receive an accredited Certificate III in
Hospitality upon graduation. The school
is helping to build a pipeline of future
workers ahead of the Queen’s Wharf
Brisbane development that will require
8,000 operational roles.
ANNUAL REPORT 2017
○○ Aboriginal and Torres Strait Islander
work experience program (delivered
by The Star Gold Coast in partnership
with TAFE QLD and DMAC Personnel) is
designed to build capability and create
job opportunities in the hospitality
industry for indigenous people. This
program has been completed by
14 students who have successfully
broadened their employability by
attending classroom sessions and two
weeks of practical work experience
placements. On completion of the
program, students are awarded a
Certificate II in Hospitality.
○○ The Macquarie Graduate School of
Management (MGSM) ‘Women in MBA’
(Masters of Business Administration
program launched in 2015 with The Star
Entertainment Group as a founding
partner) encourages diversity by
financially supporting future female
business leaders to complete an MBA.
39
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

SUSTAINABILITY
TALENTED TEAMS

DIVERSITY TARGETS OUR SAFETY GOALS

50% ZERO FATALITIES

FEMALE REPRESENTATION AND SERIOUS
IN LEADERSHIP INJURIES
LEVELS 1-4 BY 2020

20% REDUCING LOW

CONSEQUENCE
ASIAN REPRESENTATION INJURIES
IN LEADERSHIP
LEVELS 1-3 BY 2020

Around 200 Leaders and team members participated in the 'Walk and
Talk for Women's Leadership' across The Star Entertainment Group properties.
DIVERSITY AND INCLUSION
The Star Entertainment Group is
committed to promoting and fostering
diversity and inclusion in the workplace
and recognises the important
contribution each team member’s unique
perspectives and background brings to
our organisation. Our policies, practices
and behaviours all contribute to creating
a safe, welcoming and inclusive workplace
and support equitable and collaborative
relationships and talented teams. This
is underpinned by our Diversity and
Inclusion Policy and is supported by our
Diversity and Inclusion Strategy.
The Star Entertainment Group’s
internal Diversity and Inclusion Steering
Committee continues to oversee the
diversity and inclusion initiatives at
The Star Entertainment Group, with input
from four Diversity Working Groups that
address four key diversity areas: gender,
multicultural, lesbian, gay, bisexual,
transgender and intersex (LGBTI) and age.
We have measurable targets for each of
these four areas (see graphic above) and
our progress towards achieving these
targets are reported back to the Board of
Directors on an annual basis.
Team members at each property have
participated in the following initiatives
and local and global events to support
diversity and inclusion.
40
GENDER
The Star Entertainment Group launched
Women in Gaming Australasia (WGA)
with Aristocrat Leisure Limited. WGA is
an organisation dedicated to supporting
the development and success of women
who work in the gaming industry.
In celebration of International Women’s Day,
The Star Entertainment Group held ‘Walk
and Talk for Women’s Leadership’ events
across each of our properties. These events
provided a platform for female employees to
connect with leaders in the business.
MULTICULTURAL
Lunar New Year, Mid-Autumn Festival
and Harmony Day are celebrated across our
properties. In addition, focus groups were
conducted to increase our understanding
around the career experiences of our
multicultural team members. This helped
us develop a roadmap of initiatives to
ensure we have a strong talent pipeline of
multicultural team members.
LGBTI
The Star Sydney has been a proud partner
of the Sydney Gay and Lesbian Mardi Gras
for two years. Our sponsorship includes
team members taking part in the Mardi
Gras parade and supporting Queer Screen
(a not-for-profit arts organisation that
showcases LGBTI screen content at the
Mardi Gras Film Festival and the Queer
Screen Film Festival).
5%
YEAR-ON-YEAR
INCREASE IN AUSTRALIAN
WORKPLACE EQUALITY
INDEX SCORE
EMPLOYEE ENGAGEMENT
OF MATURE AGE TEAM
MEMBERS
We promote the following events
internally to raise awareness amongst
our team members:
○○ International Day Against Homophobia,
Transphobia and Biphobia (IDAHOT)
○○ Wear it Purple Day (to support
LGBTI youth)
We have also produced and distributed
our own guide to supporting gender-
transitioning team members.
AGE
Mature Age Workers Expos are held at each
of our properties to provide wellbeing and
career development information. We also
offer a seminar program that supports
mature age team members in planning
for the later stages of their careers.
Education, awareness and training form a
key part of The Star Entertainment Group’s
Diversity and Inclusion Strategy. Our
senior leaders take part in Unconscious
Bias training, on-site training programs
in cultural awareness are offered to all
employees, and LGBTI-specific training
for managers and employees continues
to be provided by our partner in LGBTI
inclusion, ‘Pride in Diversity’.
A HEALTHY
AND ENGAGED
WORKFORCE
KEEPING OUR GUESTS
SAFE WHILST VISITING
OUR PROPERTIES
WORK, HEALTH, SAFETY
A new Work Health and Safety (WHS)
Policy was developed by management
and approved by the Board this financial
year. The new WHS Policy reinforces that
health and safety in the workplace is a
shared responsibility between The Star
Entertainment Group, its leaders, workers,
contractors and visitors to our sites.
To support the WHS Policy, the Board also
approved a new strategy which outlines the
following six key strategic focus areas:
○○ Safety Culture
○○ Safety Management Systems
○○ Critical Risks
○○ Risk Management and Human Factors
○○ Safety Assurance and Investigation
○○ Health and Wellbeing
SAFETY CULTURE
Our focus on safety culture has
commenced with the implementation of
safety programs to demonstrate active
and visible safety leadership. Our leaders,
Executive Committee and Board of
Directors participate in safety leadership
walks and activities to measure the success
of our safety programs.
SAFETY MANAGEMENT SYSTEMS
Our safety management systems continue
to evolve. During the 2017 financial year,
The Star Entertainment Group introduced
an online Workplace Safety Management
system which provides a more effective
process for induction, contractor
management and visitor management at
our properties.
Robust work, health and safety practices are an important part of keeping our kitchens safe.
CRITICAL RISKS HEALTH AND WELLBEING
In working towards achieving our goal of We continue to provide health and
zero fatalities and serious injuries, we have wellbeing programs to our team members
reviewed our top WHS risks and validated to promote a healthy and engaged
that we have adequate critical risk controls workforce.
in place.
The Star Entertainment Group uses a
RISK MANAGEMENT AND HUMAN number of leading and outcome based
FACTORS safety indicators, including:
We are implementing risk management ○○ Total Recordable Incident Frequency
programs that address hazard areas Rate (TRIFR)
such as plant and equipment, hazardous ○○ % of incidents reported within 24 hours
chemicals, and manual tasks. During this
○○ % of investigations commenced within
financial year, we commenced ergonomic 24 hours
studies using wireless sensors on workers
○○ % of WHS training undertaken
to create a manual task risk profile. This
has helped The Star Entertainment Group Our TRIFR reduced by a further 5% from the
introduce higher level controls in the 2016 financial year, achieving the assigned
design of tables and workplaces to reduce annual target set by the Board.
risks associated with manual tasks.
SAFETY ASSURANCE AND TOTAL RECORDABLE INJURY
INVESTIGATION FREQUENCY RATE (TRIFR)
Our safety assurance activities have been
focused around high risk construction FY13 - 33.5
works. We have implemented a safety
audit program on all high-risk principal FY14 - 31.4
contractors so that our construction
partners understand that our safety FY15 - 31.4
goals extend to all works in which they
FY16 - 24.4
have management or control over, on our
properties and work sites.
FY17 - 22.9
41
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

SUSTAINABILITY
TALENTED TEAMS

REWARD AND RECOGNITION

To build a guest-centric and service focused culture, The Star Entertainment Group recognises the importance of celebrating and
sharing the stories of our team members and leaders, who set the benchmark for guest service excellence and deliver a consistently
high standard of performance.
‘Star awards’ is one way The Star Entertainment Group recognises and rewards top performers. Annual awards are given to team members
who are delivering thrilling guest experiences by demonstrating qualifying behaviours called ‘Star Qualities’, and to leaders who are living our
‘Values’ of City Pride, Ownership, Welcoming and True Teamwork.
CITY PRIDE

STAR AWARD WINNERS

JUSTIN BURNHAM
FRONT OFFICE HOTEL SUPERVISOR, THE STAR GOLD COAST
Justin is an outstanding leader in The Star Gold Coast hotel team, who consistently delivers
exceptional guest excellence in his role of managing the busy hotel front office. Justin is known
for his friendly, approachable attitude when dealing with guests’ queries. He listens to and
empathises with guests, creating positive guest experiences that enhance and protect
The Star Gold Coast’s brand. Justin is a “natural” in his space and the passion he brings to his

OWNERSHIP
role is an ongoing inspiration to his team.

ASHLEIGH PAGE
RECRUITMENT ADVISOR, TREASURY BRISBANE
Ashleigh comes to work every day with a smile, commitment and a can-do attitude. Her
approach to recruitment is based on her forward-thinking and collaborative approach, looking
at the needs of the business and candidates now and in the future. Ashleigh has taken it upon
herself to update processes to improve recruitment outcomes, especially during busy periods.
Ashleigh’s positive and enthusiastic persona, together with her impressive work ethic makes
her a great colleague.

RACHAEL COX
EXECUTIVE ASSISTANT TO CHIEF OPERATING OFFICER, THE STAR SYDNEY

Rachael is a hardworking, organised executive assistant who takes time out

of her busy workload to act as Network Co-ordinator and Chair to Spectrum, The Star

WELCOMING
Entertainment Group’s LGBTI diversity group. Rachael has assisted with organising a variety of
events for Spectrum in her free time, including leading the participation of 100+ team members
in the 2016 and 2017 Sydney Gay & Lesbian Mardi Gras Parades. Rachael is a passionate member
of Spectrum and she also drives the team to support the initiatives of our other diversity working
groups, Women@The Star, Young@Heart, and Unity@TheStar, to create a truly inclusive culture at
The Star Sydney.

SCOTT GILLELAND
GROUP OPERATIONS MANAGER INFORMATION TECHNOLOGY,
THE STAR ENTERTAINMENT GROUP
Scott is a passionate and innovative IT professional who works tirelessly to understand
the diverse businesses that his team services daily. Scott routinely walks the floor of
different business areas, engaging with colleagues to learn about their work and to gain an
understanding of issues that may impact the level of service his team can deliver. Like a true
leader, Scott identified three areas of improvement in the way IT programs are delivered and
took ownership to achieve a superior outcome. Scott is known as a mentor, always supporting

TRUE TEAMWORK
and encouraging junior team members.

42 43
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

DIRECTORS’, REMUNERATION DIRECTORS’

Directors' ReportREPORT
AND FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
The Directors of The Star Entertainment Group Limited (the Company) submit their report for the consolidated entity
comprising the Company and its controlled entities (collectively referred to as the Group) in respect of the financial
T H E S TA R E N T E R TA I N M E N T G R O U P L I M I T E D year ended 30 June 2017.
A .C. N 1 49 629 023 1. Directors
ASX CODE: SGR The names and titles of the Company's Directors in office during the financial year ended 30 June 2017 and until the
AND ITS CONTROLLED ENTITIES date of this report are set out below. Directors were in office for this entire period.
Directors
John O'Neill AO Chairman and Non-Executive Director
Matt Bekier Managing Director and Chief Executive Officer
Gerard Bradley Non-Executive Director

CONTENTS
D I R E CTO R S ’ R E P O RT  45
A U D I TO R ’ S I N D E P E N D E N C E D E C L A R AT I O N  58
R E M U N E R AT I O N R E P O R T 
FINANCIAL REPORT
Consolidated income statement
Consolidated balance sheet
Consolidated statement of cash flows
Consolidated statement of changes in equity
Notes to the financial statements
A. Key income statement disclosures
B. Key balance sheet disclosures
C. Commitments, contingencies and subsequent events
D. Group structure
E. Risk management
F. Other disclosures
G. Accounting policies and corporate information
D I R E CTO R S ’ D E C L A R AT I O N  1 27
I N D E P E N D E N T AU D I TO R ’ S R E P O RT  1 28
Greg Hayes Non-Executive Director
Katie Lahey AM Non-Executive Director
Sally Pitkin Non-Executive Director
Richard Sheppard Non-Executive Director
2. Operating and Financial Review
59 The Operating and Financial Review for the year ended 30 June 2017 has been designed to provide shareholders with
78 a clear and concise overview of the Groupʼs operations, financial position, business strategies and prospects. The
review also discusses the impact of key transactions, events that have taken place during the reporting period and
79 material business risks faced by the Group, to allow shareholders to make an informed assessment of the results and
80 future prospects of the Company. The review complements the Financial Report and has been prepared in accordance
with the guidance set out in ASICʼs Regulatory Guide 247.
81
2.1. Principal activities
82 The principal activities of the Group are the management of integrated resorts with gaming, entertainment and
83 hospitality services.
84 The Star Entertainment Group Limited owns and operates The Star Sydney (Sydney), The Star Gold Coast (Gold
Coast) and Treasury Brisbane (Brisbane). The Group also manages the Gold Coast Convention and Exhibition
88 Centre on behalf of the Queensland Government and invests in a number of strategic joint ventures.
97
2.2. Business strategies
98 The key strategic priorities for the Group as initially outlined in the Company's 2014 Annual Report are to:
• Create “world class casino resorts with local spirit”;
106
• Manage planned capital expenditure programs in Queensland and Sydney to deliver value and returns for
112 shareholders;
121 • Increase the volume of high-value visitation from local, domestic and international markets;
• Grow the domestic and International VIP Rebate business;
• Improve customer experience, including providing customers with tailored product and service offerings; and
• Maximise value from technology, including further enhancing gaming and loyalty experiences and delivering
integrated and new IT platforms.
The Group has continued to make good progress on all these key strategic priorities during the year, with:
• Financial performance improved across all properties;
• Balance sheet strength maintained;
• Rebranding of Jupiters to The Star Gold Coast;
• Relaunch of The Star Club loyalty program and improved customer service;
• Leadership in place supplemented by strengthened functional capability;
• Completion of a number of capital projects, including full refurbishment of Sydney and Gold Coast hotels,
expansion of main gaming floor (MGF) in Sydney and additional food and beverage offerings in Gold Coast;
• Continuing the focus on international diversification, across global VIP and Premium Mass markets; and
• Invested in new joint venture with Chow Tai Fook Enterprises Limited (CTF) and Far East Consortium International
Limited (FEC) that acquired the Sheraton Grand Mirage, Gold Coast.

1
44 45
THE STAR ENTERTAINMENT GROUP
DIRECTORS’
Directors' ReportREPORT
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017
In FY2018, the focus will be on the following key strategic priorities:
• Improve earnings across the Group through continued focus on domestic gaming and operating efficiency;
• Deliver on the next stage of the capital development programs, in particular the completion of the new 6 star hotel
in Gold Coast;
• Progress planning approvals for joint venture developments with CTF and FEC in Sydney and Gold Coast;
• Continue diversification of the Groupʼs international revenue base into global VIP and Premium Mass markets; and
• Continue the drive to differentiate the value proposition at each of our properties, through brand, loyalty, customer
service, and food and beverage offerings.
The Directors have excluded from this report any further information on the likely developments in the operations of the
Group and the expected results of those operations in future financial years, as the Directors have reasonable grounds
to believe that to include such information will be likely to result in unreasonable prejudice to the Group.
2.3. Group performance
Gross revenue of $2,432.2 million was up 3.2% on the prior comparable period (pcp), partly due to an above average
win rate in the International VIP Rebate business and offset by disruption from capital works and a softer macro-
economic environment. Normalised1 revenues decreased 3.9% for the period to $2,337.3 million, down from $2,431.0
million in the pcp, impacted by lower International VIP Rebate business volumes.
Operating costs remain well managed, up 1.0%, reflecting increased domestic gaming volumes, ongoing investment in
marketing, loyalty program relaunch and wage indexation. Significant operating expense items ($12.8 million) relate to
costs relating to the unutilised aircraft. There were no significant items within the prior period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) of $586.2 million was up 19.9% on the pcp.
Normalised EBITDA (excluding significant items) of $515.1 million was down 7.4% on the pcp. Normalised EBITDA
margin of 22.0% is down from 22.9% in the pcp as a result of higher average gaming taxes in Sydney.
Depreciation and amortisation expense of $164.5 million was flat on the pcp. Finance costs of $41.7 million were down
9.0% on the pcp.
Net profit after tax (NPAT) was $264.4 million, up 36.0% on the pcp. Normalised NPAT, excluding significant items,
was $214.5 million, down 11.1% on the pcp.
Basic Earnings per Share (EPS) was 32.0 cents, up 36.0% on the pcp. Diluted EPS was 31.9 cents, 23.6 cents in the
pcp. A final dividend of 8.5 cents fully franked was declared, totalling 16.0 cents per share for the year, up 23.1% on
the pcp and reflecting a payout ratio of 50.0% of statutory NPAT for the year ended 30 June 2017.
2.4. Group financial position
The Groupʼs net assets increased by 4.1% compared with the previous year.
Receivables remain well managed, with receivables past due not impaired less than one year comprising over 95% of
the total. Net receivables past due not impaired greater than 30 days of $33.3 million, flat on the pcp, reflecting new
debts being offset by collections during the period.
Net debt2 was $787.5 million (30 June 2016: $473.8 million) with $200.5 million in undrawn facilities and an average
drawn debt maturity of 2.3 years. Gearing levels remain conservative at 1.3 times FY2017 net debt to actual EBITDA,
positioning the Group well to continue executing on its growth projects. Operating cash flow before interest and tax
was $567.9 million (30 June 2016: $477.4 million). EBITDA to cash conversion ratio of 97% (30 June 2016: 98%).
Trade and other payables of $324.5 million were up 23.9% from June 2016 as a result of higher gaming related
payables, representing players' funds deposited and chips in circulation at 30 June 2017.
1Normalised results reflect the underlying performance of the business as they remove the inherent volatility of the International VIP
Rebate business. Normalised results are adjusted using an average win rate of 1.35% of actual turnover.
2Net debt is shown as interest bearing liabilities, less cash and cash equivalents, less net position of derivative financial instruments.
Derivative financial instruments reflect the position of currency swaps and interest rate hedges entered into for the USPP debt.
2 3
46
ANNUAL REPORT 2017
DIRECTORS’
Directors' ReportREPORT
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017
2.5. Segment operations
The Group comprises the following three operating segments:
• Sydney;
• Gold Coast; and
• Brisbane.
Refer to note A1 for more details of the financial performance of the Companyʼs operating segments. The activities and
drivers of the results for these operations are discussed below.
Sydney
Gross revenue was $1,685.8 million, up 1.8% on the pcp and EBITDA was $401.1 million, up 32.6% on the pcp.
Normalised EBITDA was $320.6 million, down 16.0% on the pcp.
Normalised gross revenue in Sydney was $1,595.5 million, down 8.5% on the pcp. Revenue decreased due to lower
International VIP Rebate business volumes, partially offset by solid domestic revenue growth in the second half of the
year. Domestic gross gaming revenue was up 4.4% on the pcp, with growth across both tables and slots, up 5.7% and
1.8% respectively. Electronic gaming machine market share of 9.1% for Q1-Q3 FY2017 consistent with the pcp. Non-
gaming cash revenue was down 4.5% on the pcp due to disruption from capital works in the first half of the year.
Taxes, levies, rebates and commissions of $670.6 million were down 8.8% on the pcp as a result of lower International
VIP Rebate business volumes, partially offset by higher average non-rebate gaming taxes. Sydneyʼs average non-
rebate tax rate was 32.6%, up from 31.9% in the pcp (top marginal tax rate of 50.0% in both years). Operating
expenditure of $614.1 million was down 0.8% on the pcp as continued cost control offset the investments in loyalty,
marketing, wage indexation and higher domestic gaming volumes. Normalised EBITDA margin of 20.1% was down
from 21.9% on the pcp.
The Sydney property is one of the main partners to the Sydney Festival, a Leadership Partner of City of Sydney's
Chinese New Year Festival and a sponsor of the Sydney Swans and New South Wales Rugby League (NSW Blues).
The Sydney property also contributed to various charities during the period, including Barnardos Australia and Taronga
Conservation Society Australia.
Queensland (Gold Coast and Brisbane)
Gross revenue was $746.4 million, up 6.5% on the pcp and EBITDA was $198.6 million, up 6.6% on the pcp.
Normalised EBITDA was $194.5 million, up 11.5% on the pcp.
Normalised gross revenue in Queensland was $741.8 million, up 7.9% on the pcp. Queensland experienced an
increase in revenue performance due to increased International VIP Rebate business revenue. The domestic gaming
business was down 2.2% on the pcp, with decline in both tables and slots, down 1.4% and 2.8% respectively. Non-
gaming revenue was up 7.1% on the pcp. Taxes, levies, rebates and commissions were up 10.6% on the pcp, driven
by increased International VIP Rebate business gaming in the period. Operating expenses of $356.7 million across the
Queensland properties were up 4.3% on the pcp. Normalised EBITDA margin of 26.2% was up from 25.4% on the pcp.
The Gold Coast property is the First Official Partner of the Gold Coast 2018 Commonwealth Games.
The Brisbane property was a sponsor of the Brisbane Festival and Queensland Rugby League (Queensland Maroons)
during the year.
The Queensland properties also contribute to various charities and not-for-profit organisations including Ronald
McDonald House and Surf Life Saving Queensland.
International VIP Rebate business
The results of the International VIP Rebate business are included in the segment performance overviews above. The
International VIP Rebate business turnover was $39.7 billion, down 19.9% on the pcp. The actual win rate of 1.59%
was above both the win rate for the pcp of 1.20% and the normalised rate of 1.35%. Normalised International VIP
Rebate business revenue was $544.7 million, down 18.6% on the pcp, compared to statutory revenue of $639.6 million
(up 7.3% on the pcp).
47
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

DIRECTORS’
Directors' ReportREPORT DIRECTORS’
Directors' ReportREPORT
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017

2.6. Significant changes in the state of affairs and future developments
Other than those stated within this report, there were no significant changes in the state of affairs of the Group during
the financial year. The section below discusses the impact of key transactions and events that have taken place during
the reporting period.
Sydney
Sydney's casino licence continues until 2093 and includes exclusivity arrangements with the New South Wales
Government until November 2019.
The Group has previously disclosed a proposed investment of up to $1 billion (subject to various approvals) which
includes a new tower to be developed with joint venture partners CTF and FEC. The capacity of the property is
proposed to be expanded to approximately 1,000 hotel rooms and residences (including The Ritz Carlton hotel and
luxury residences), with signature gaming experiences including new and refurbished premium gaming rooms and
gaming salons, and over 50 food and beverage offerings. The Groupʼs share of capital expenditure is expected to be
approximately $667 million (prior to the sale of any apartments).
Capital expenditure in the year was approximately $180 million, including the completion of the Vantage Room,
Latitude Bar, carpark upgrade, Astral Tower upgrade and MGF refurbishment. The redevelopment of the Astral
Residences, Astral Lobby and Porte Cochere and Sovereign Room expansion continues.
Gold Coast
The Group holds a perpetual casino licence to operate The Star Gold Coast. The Group owns Broadbeach Island on
which the casino is located. The Group has previously disclosed a major redevelopment of the property of up to $845
million capital spend (subject to various approvals), including a $400 million new 6 star hotel with joint venture partners
CTF and FEC. The capacity of the property is proposed to be expanded to approximately 1,400 hotel rooms and
residences with signature gaming facilities, over 20 restaurants and bars, and substantial resort facilities and
attractions. The Groupʼs share of capital expenditure is expected to be approximately $578 million (prior to the sale of
any apartments).
Progress on the redevelopment project includes the completion of the hotel rooms upgrade, Atrium Bar refurbishment,
new restaurants and MGF refurbishment. Capital expenditure in the year was approximately $210 million, including
construction costs for the new 6 star hotel, refurbishment of the Atrium Bar and upgrades to hotel rooms.
The Group continues to manage the Gold Coast Convention and Exhibition Centre adjacent to the casino.
Brisbane
In November 2015, contractual close was reached between the Queensland Government and Destination Brisbane
Consortium (DBC) on the Queenʼs Wharf Brisbane development. DBCʼs integrated resort ownership structure requires
capital to be contributed 50% by the Group and 25% each by CTF and FEC. The Group will act as the operator under
a long dated casino management agreement.
The Group holds a perpetual casino licence in Queensland that is attached to the lease of the current Treasury site
that expires in 2070. Upon opening of the integrated resort, the Groupʼs casino licence will be surrendered and DBC
will be granted a casino licence for 99 years including an exclusivity period of 25 years.
CTF and FEC will each contribute 50% of the capital to undertake the residential and related components of the
broader Queenʼs Wharf Brisbane development. The Group is not a party to the residential development joint venture.
Initial work on the integrated resort is on schedule and on budget, with demolition works underway and foundation
work expected to commence in early 2018.
2.7. Risk management
The Group takes a structured approach to identifying, evaluating and managing those risks which have the potential to
affect achievement of strategic objectives. The commentary relating to Principle 7 in the Groupʼs Corporate
Governance Statement describes the Groupʼs risk management framework which is based on ISO31000, the
international standard on risk management. The Corporate Governance Statement can be viewed on the Groupʼs
website.
Details of the Groupʼs major risks and associated mitigation strategies are set out below. The mitigation strategies are
designed to reduce the likelihood of the risk occurring and/or to minimise the adverse consequences of the risk should
it happen. However, some risks are affected by factors external to, and beyond the control of, the Group.
Risk and description Mitigation strategy
Competitive Position
The potential effect of increased competition The Groupʼs vision is to be Australiaʼs leading integrated resort
in the Groupʼs key markets of Sydney, company. The Group is making substantial investments in developing
Brisbane and the Gold Coast new or improved venue facilities in all key markets, diversifying
revenue sources and in improving the customer service capabilities
of employees.
Realising value from capital projects
The ability to generate adequate returns from The Group has implemented a comprehensive project management
the financial capital invested in capital framework and employed a number of appropriately skilled and
projects. experienced project managers to reduce the risk of delays in
completion and/or overruns in costs of capital projects. The Group
has also developed plans to market and promote its portfolio of
attractive resort facilities to achieve the level of customer patronage
required to deliver the expected returns on investment.
Human capital management
The ability to attract, recruit and retain the The Group has in place a variety of avenues to attract, recruit and
right people for key leadership and develop high performing and high potential employees, including an
operational roles. in-house talent acquisition team. The Group runs a number of training
and development programs to provide employees with career
development opportunities, and annually conducts an employee
engagement survey to monitor for emerging issues which might affect
the ability to retain talented employees. The Groupʼs diversity and
inclusion programs are widely recognised as being among the best in
the industry.
Effective management of key stakeholders
The ability to engage with key stakeholders to The Group has developed strong communication lines with a variety
satisfy their competing interests without of stakeholder groups, including State governments in New South
compromising the Groupʼs operations or Wales and Queensland, regulators in both States, investors, media
achievement of the Groupʼs strategic and unions. The Group has also developed strategic partnerships
objectives. with a number of local community groups and charitable
organisations.
Geo-political and regulatory changes
The potential effect of political or regulatory The Group continuously monitors for potential legislative changes or
changes in Australia affecting the operation of changes in relevant government policy in the States and countries in
casinos, or the potential effect of changes in which it conducts business operations. The Group also makes
the administration of laws in foreign countries representations to governments and industry groups to promote
affecting the ability of foreign nationals to effective, appropriate and consistent regulatory and policy outcomes.
travel to and/or bring funds to Australia.
Data and systems security and reliability
The ability to protect the integrity of The Group has a dedicated IT security function which continuously
confidential business or customer data which tests and monitors our technology systems to detect and block
is collected, used, stored, and disposed of in viruses and other threats to the security of our data. Employees are
the course of business operations, and the regularly trained on the importance of maintaining effective cyber
ability to maintain the security and operating security and data privacy processes.
reliability of key business systems.

4 5
48 49
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

DIRECTORS’
Directors' ReportREPORT DIRECTORS’
Directors' ReportREPORT
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017

Risk and description Mitigation strategy The Company is registered under the National Greenhouse Energy Reporting System (NGERS) and reports all energy
Major business disruption events consumption and greenhouse gas emissions to the Federal Government every year. The Companyʼs Environmental
The ability to anticipate, prevent, respond to The Groupʼs business continuity framework enables early Management Policy, Sustainability Strategy, Materiality Assessment and Sustainable Design Guidelines can be found
and recover from events which have the identification of material risks to the continued operation of a resort on the Companyʼs website. Sustainability performance and progress against the Sustainability Strategy is reported to
potential to prevent the continued operation of facility. The framework is supported by a suite of emergency the People, Culture and Social Responsibility Committee regularly.
one of our resort facilities, or which inhibit the response, crisis management, and disaster recovery plans that are
3. Earnings per share (EPS)
ability of guests being able to visit one of our regularly tested and updated.
Basic EPS for the financial year was 32.0 cents (2016: 23.6 cents), 36.0% up on the pcp as a result of the improved
resort facilities for a sustained period of time.
operational performance across the Group. Diluted EPS was 31.9 cents (2016: 23.6 cents). EPS is disclosed in note
People health and safety F3 of the Financial Report.
The ability to operate the Groupʼs resort The Group takes a risk based approach to managing workplace
facilities without affecting the safety, security health and safety. Critical safety risks have been identified with 4. Dividends
and wellbeing of our guests and employees. mitigation plans in place. Dedicated workplace health and safety and 4.1. Dividend payout
injury management specialists are employed at each resort facility. An interim dividend of 7.5 cents per share (fully franked) was paid on 22 March 2017.
To assist in maintaining the safety and security of our guests and A final dividend per share of 8.5 cents (fully franked) was declared, totalling 16.0 cents per share for the year, up
employees, each resort facility employs a substantial number of 23.1% on the pcp and reflecting a payout ratio of 50.0% of statutory NPAT for the year ended 30 June 2017.
security and surveillance personnel to provide support in monitoring
existential threats and managing potential incidents on a real time 4.2. Dividend Reinvestment Plan (DRP)
basis. The Companyʼs DRP is in operation for the final dividend. The last date for receipt of election notices to enable
Financial management participation for the final dividend is 30 August 2017. The price at which shares are allocated under the DRP is the
The ability to maintain financial performance The Group annually establishes a financial budget and 5 year plan daily volume weighted average market price of the Company's shares sold in the ordinary course of trading on the ASX
and a strong balance sheet which enables the which underpin the setting of performance targets incorporated in over a period of 10 trading days beginning on (and including) the fourth trading day after the Record Date (29 August
Group to fund future growth opportunities on management incentive plans. Financial performance is continuously 2017). Shares allocated under the DRP will rank equally with the Company's existing fully paid ordinary shares.
commercially acceptable terms. monitored for any variations from annual financial budgets and
market expectations. The Groupʼs core business produces strong 5. Significant events after the end of the financial year
cashflow, allowing the Group to maintain low to moderate levels of On 23 August 2017, the Group completed a tender and reissue offer in relation to 73% of the Groupʼs US Private
debt while allowing shareholders to be paid dividends. Placement (USPP) borrowings. This was undertaken to extend the Group's tenor on average drawn debt maturity by 3
years to 5.2 years, reduce finance costs on a like for like basis and lower refinancing requirements for the Group. The
Corporate governance
Group estimates that its average blended cost of debt on all USPP notes following the new issue will be approximately
The ability to maintain a strong and effective The Group has a well-defined governance framework which identifies
5% (down from over 9% on previous notes). The transaction is expected to result in a one-off loss in the range of $30-
governance structure which supports a culture the roles and responsibilities of the Board, the Board Committees
$34 million (after tax) relating to the crystallisation of an existing obligation for the related out of the money interest rate
of transparency, accountability, and and senior management. The Group also has a complementary set of
swaps and other costs. This one-off loss will be recognised as a significant item in the FY2018 Financial Report.
compliance. key policies, compliance with which is monitored on an ongoing
Further detail can be found in the ASX Announcement - The Star announces placement of long-term notes (dated 23
basis. The Group operates an integrated “3 lines of defence” model
August 2017).
to identify and manage key risks and to provide assurance that
critical controls are effective in managing those risks. Other than those events that have already been disclosed in this report or elsewhere in the Financial Report, there
have been no other significant events occurring after 30 June 2017 and up to the date of this report that have
2.8. Environmental regulation and performance materially affected or may materially affect the Groupʼs operations, the results of those operations or the Groupʼs state
The Group is committed to sustainability leadership in the entertainment sector and reducing resource consumption of affairs.
across its operations. In 2016 the Group set out a five-year Sustainability Strategy, 'Our Bright Future', focused on
building business capacity and delivering continuous improvement in the management of environmental, social and
governance issues (ESG). The Sustainability Strategy is aligned to the business strategy and groups ESG objectives
and targets into four key pillars:
• we strive to be Australia's leading integrated resort company;
• we actively support guest wellbeing;
• we attract, develop and retain talented teams; and
• we develop and operate world class properties.
The Sustainability Strategy is underpinned by a structured materiality assessment process that was first conducted in
2016 over a three month period to identify potential material issues and ESG risks relevant to the business and
industry.
To support the delivery of the Sustainability Strategy and to ensure the Group manages the resource consumption
from an expanding portfolio, an energy and water project pipeline has been established to ensure projects are
implemented each year that deliver cost and environmental benefits. The Group has now implemented over twenty
four projects, delivering environmental and financial savings of over $1.4 million in the last two financial years. To
ensure energy and water efficiency is achieved in refurbishment and development projects, the Groupʼs Sustainable
Design Guidelines have been applied to achieve greener building outcomes by specifying energy efficient technologies
and best practice water and waste management.
During the year, the Group attained the global leadership position of the Casino and Gaming Industry in the Dow
Jones Sustainability Index. The Group also attained its first National Australian Built Environment Rating System
(NABERS) rating for its office located at 60 Union St, Pyrmont, New South Wales, achieving a result of 5 out of a
possible 6 Stars for energy efficiency.

6 7
50 51
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

DIRECTORS’
Directors' ReportREPORT DIRECTORS’ REPORT
Directors' Report
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017

6. Directors' qualifications, experience and special responsibilities Current Directors

The details of the Company's Directors in office during the financial year and until the date of this report (except as
otherwise stated) are set out below.
Current Directors
John O'Neill AO Chairman (from 8 June 2012); Non-Executive Director (from 28 March 2011)
Diploma of Law; Foundation Fellow of the Australian Institute of Company Directors
Experience:
John OʼNeill was formerly Managing Director and Chief Executive Officer of Australian
Rugby Union Limited, Chief Executive Officer of Football Federation Australia, Managing
Director and Chief Executive Officer of the State Bank of New South Wales, and Chairman
of the Australian Wool Exchange Limited.
Mr OʼNeill was also formerly a Director of Tabcorp Holdings Limited and Rugby World Cup
Limited.
Mr OʼNeill was also the inaugural Chairman of Events New South Wales, which flowed from
the independent reviews he conducted into events strategy, convention and exhibition
space, and tourism on behalf of the New South Wales Government.
Mr O'Neill is currently a member of the Advisory Council of China Matters.
Special Responsibilities:
Mr OʼNeill is Chairman of the Board and an ex-officio member of all Board committees.
Gerard Bradley Non-Executive Director (from 30 May 2013)
Bachelor of Commerce; Diploma of Advanced Accounting; Fellow of the Institute of
Chartered Accountants; Fellow of CPA Australia; Fellow of the Australian Institute of
Company Directors; Fellow of the Australian Institute of Managers and Leaders
Experience:
Gerard Bradley is the Chairman of Queensland Treasury Corporation and related
companies, having served for 14 years as Under Treasurer and Under Secretary of the
Queensland Treasury Department. He has extensive experience in public sector finance in
both the Queensland and South Australian Treasury Departments.
Mr Bradley has previously served as Chairman of the Board of Trustees at QSuper. His
previous non-executive board memberships also include Funds SA, Queensland
Investment Corporation, Suncorp (Insurance & Finance), Queensland Water Infrastructure
Pty Ltd, and South Bank Corporation.
Mr Bradley is currently a Director of the Winston Churchill Memorial Trust.
Special Responsibilities:
• Chair of the Risk and Compliance Committee
• Member of the Audit Committee
• Member of the Investment and Capital Expenditure Review Committee
• Member of the Remuneration Committee

Directorships of other Australian listed companies held during the last 3 years: Directorships of other Australian listed companies held during the last 3 years:
Nil Pinnacle Investment Management Group Limited (1 September 2016 to present)
Matt Bekier Managing Director and Chief Executive Officer (from 11 April 2014) Greg Hayes Non-Executive Director (from 24 April 2015)
Master of Applied Finance; Graduate Diploma in Accounting; Bachelor of Arts; Advanced
Executive Director (from 2 March 2011) Management Programme (Harvard Business School, Massachusetts); Member of Institute
Master of Economics and Commerce; PhD in Finance of Chartered Accountants
Experience: Experience:
Matt Bekier is a member of the Board of the Australasian Gaming Council. Greg Hayes is an experienced executive and director having worked across a range of
industries including energy, infrastructure and logistics. Mr Hayes brings to the Board skills
Mr Bekier was previously Chief Financial Officer and Executive Director of the Company and experience in the areas of strategy, finance, mergers and acquisitions, and strategic
and also previously Chief Financial Officer of Tabcorp Holdings Limited from late 2005 and risk management, in particular in listed companies with global operations. He is currently a
until the demerger of the Company and its controlled entities in June 2011. Director of Precision Group, Aurrum Holdings Pty Ltd and Home Investment Consortium
Company Pty Ltd.
Prior to his role at Tabcorp, Mr Bekier previously held various roles with McKinsey &
Company. Mr Hayes was previously Chief Financial Officer and Executive Director of Brambles
Special Responsibilities: Limited, Chief Executive Officer & Group Managing Director of Tenix Pty Ltd, Chief
Nil Financial Officer and later interim CEO of the Australian Gaslight Company (AGL), Chief
Financial Officer Australia and New Zealand of Westfield Holdings, and Executive General
Directorships of other Australian listed companies held during the last 3 years: Manager, Finance of Southcorp Limited.
Nil
Special Responsibilities:
• Chair of the Audit Committee
• Member of the Investment and Capital Expenditure Review Committee
• Member of the Risk and Compliance Committee

Directorships of other Australian listed companies held during the last 3 years:
• Incitec Pivot Limited (1 October 2014 to present)

8 9
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THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

DIRECTORS’
Directors' ReportREPORT DIRECTORS’
Directors' ReportREPORT
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017

Current Directors Current Directors

Katie Lahey AM Non-Executive Director (from 1 March 2013) Richard Sheppard Non-Executive Director (from 1 March 2013)
Bachelor of Arts (First Class Honours); Master of Business Administration Bachelor of Economics (First Class Honours); Fellow of the Australian Institute of Company
Directors
Experience:
Katie Lahey has extensive experience in the retail, tourism and entertainment sectors and Experience:
previously held chief executive roles in the public and private sectors. Richard Sheppard has had an extensive executive career in the banking and finance sector
including an executive career with Macquarie Group Limited spanning more than 30 years.
Ms Lahey is currently the Chair of Tourism & Transport Forum and Executive Chairman
Australasia for Korn Ferry International. She is also a member of the Australian Mr Sheppard was previously the Managing Director and Chief Executive Officer of
Brandenburg Orchestra Board. Macquarie Bank Limited and chaired the boards of a number of Macquarieʼs listed entities.
He has also served as Chairman of the Commonwealth Governmentʼs Financial Sector
Ms Lahey was previously the Chair of Carnival Australia and a member of the boards of Advisory Council.
David Jones Limited, Australia Council Major Performing Arts, Hills Motorway Limited,
Australia Post and Garvan Research Foundation. Mr Sheppard is currently the Chairman and a Non-Executive Director of Dexus Property
Group and a Non-Executive Director of Snowy Hydro Limited. He is also a Director of The
Special Responsibilities: Bradman Foundation.
• Chair of the People, Culture and Social Responsibility Committee
• Member of the Remuneration Committee Special Responsibilities:
• Member of the Risk and Compliance Committee • Chair of the Investment and Capital Expenditure Review Committee
• Member of the Audit Committee
Directorships of other Australian listed companies held during the last 3 years: • Member of the Risk and Compliance Committee
Nil
Sally Pitkin Non-Executive Director (from 19 December 2014) Directorships of other Australian listed companies held during the last 3 years:
Doctor of Philosophy (Governance); Master of Laws; Bachelor of Laws; Fellow of the • Dexus Property Group (1 January 2012 to present)
Australian Institute of Company Directors

Experience: 7. Directors' interests in securities

Sally Pitkin is a Queensland based company director and lawyer with extensive corporate At the date of this report (except as otherwise stated), the Directors had the following relevant interests in the
experience and over 20 yearsʼ experience as a non-executive director and board member securities of the Company:
across a wide range of industries in the private and public sectors.
Name Ordinary Shares Performance Rights
Dr Pitkin is the President of the Queensland Division, and a member of the National Board
of the Australian Institute of Company Directors. Current
John O'Neill AO 54,348 Nil
Dr Pitkin was previously a Non-Executive Director of Aristocrat Leisure Limited.
Matt Bekier 649,562 1,350,622
Special Responsibilities: Gerard Bradley 25,000 Nil
• Chair of the Remuneration Committee Greg Hayes 10,000 Nil
• Member of the Audit Committee
Katie Lahey AM 27,080 Nil
• Member of the People, Culture and Social Responsibility Committee
Sally Pitkin 45,900 Nil
Directorships of other Australian listed companies held during the last 3 years: Richard Sheppard 80,000 Nil
• Super Retail Group Limited (1 July 2010 to present)
• Billabong International Limited (28 February 2012 to 15 August 2016)
• IPH Limited (23 September 2014 to present)
8. Company Secretary
• Link Administration Holdings Limited (23 September 2015 to present)
Paula Martin holds the position of Group General Counsel and Company Secretary. She holds a Bachelor of Business
(Int. Bus.) and a Bachelor of Laws and a Graduate Diploma in Applied Corporate Governance. She has extensive
commercial legal experience having worked with King & Wood Mallesons (formerly Mallesons Stephen Jaques) prior to
joining the Company. Ms Martin is a member of the Queensland Law Society, Association of Corporate Counsel
(Australia) and the Governance Institute of Australia.

10 11
54 55
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

DIRECTORS’
Directors' ReportREPORT DIRECTORS’
Directors' ReportREPORT
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
for the year ended 30 June 2017

9. Board and Committee meeting attendance Description of services $000

During the financial year ended 30 June 2017, the Company held 13 meetings of the Board of Directors (including 4 Other assurance related services in relation to the Company and any other entity in the
unscheduled meetings which were attended by a majority of Directors). The numbers of Board and Committee consolidated group -
meetings attended by each of the Directors during the year are set out in the table below.
Other non-audit services including taxation services 272.0
People, Total of all non-audit and other services 272.0
Culture & Investment & Amounts paid or payable by the Company for audit and non-audit services are disclosed in note F11 of the Financial
Social Capital Report.
Risk and Remuner- Responsibi- Expenditure
Board of Audit Compliance ation lity Review 13. Rounding of amounts
Directors Committee Committee Committee Committee Committee The Star Entertainment Group Limited is a company of the kind specified in the Australian Securities and Investments
Directors A B A B A B A B A B A B Commissionʼs ASIC Corporations (Rounding in Financial/Directorsʼ Reports) Instrument 2016/191. In accordance with
that Instrument, amounts in the Financial Report and the Directorsʼ Report have been rounded to the nearest hundred
John O'Neill AO 13 13 5 5 4 4 4 4 4 4 5 5 thousand dollars unless specifically stated to be otherwise.
Matt Bekier (i) 13 13 - - - - - - - - - -
Gerard Bradley 13 13 5 5 4 4 4 4 - - 5 5 14. Auditor's independence declaration
Attached is a copy of the auditor's independence declaration provided under section 307C of the Corporations Act
Greg Hayes 12 13 5 5 3 4 - - - - 4 5 2001 (Cth) in relation to the audit of the Financial Report for the year ended 30 June 2017. The auditor's independence
Katie Lahey AM 12 13 - - 4 4 4 4 4 4 - - declaration forms part of this Directorsʼ Report.
Sally Pitkin 13 13 5 5 - - 4 4 4 4 - -
This report has been signed in accordance with a resolution of Directors.
Richard Sheppard 13 13 5 5 4 4 - - - - 5 5
A- Number of meetings attended as a Director or Committee member
B- Maximum number of meetings available for attendance as a Committee member
(i) The Managing Director and Chief Executive Officer is not a member of any Board Committee but may attend Board
Committee meetings upon invitation, however this attendance is not recorded here

Details of the functions and memberships of the Committees of the Board and the terms of reference for each Board
Committee are available from the Corporate Governance section of the Companyʼs website. John O'Neill AO
Chairman
10. Indemnification and insurance of Directors and Officers Sydney
The Directors and Officers of the Company are indemnified against liabilities pursuant to agreements with the 23 August 2017
Company. The Company has entered into insurance contracts with third party insurance providers, in accordance with
normal commercial practices. Under the terms of the insurance contracts, the nature of the liabilities insured against
and the amount of premiums paid are confidential.

11. Indemnification of auditors

To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, as part of
the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified
amount). No payment has been made to indemnify Ernst & Young during or since the end of the financial year.

12. Non-audit services

Ernst & Young, the external auditor to the Company and the Group, provided non-audit services to the Company
during the financial year ended 30 June 2017. The Directors are satisfied that the provision of non-audit services
during this period was compatible with the general standard of independence for auditors imposed by the Corporations
Act 2001 (Cth). The nature and scope of each type of non-audit service provided did not compromise auditor
independence. These statements are made in accordance with advice provided by the Audit Committee.
The Audit Committee reviews the activities of the independent external auditor and reviews the auditorʼs performance
on an annual basis.
Limited authority is delegated to the Company's Group Chief Financial Officer for the pre-approval of audit and non-
audit services proposed by the external auditor, limited to $50,000 per engagement and capped at 40% of the relevant
year's audit fee. Delegated authority is only exercised in relation to services that are not in conflict with the role of
statutory auditors, where management does not consider the services to impair the independence of the external
auditor and the external auditor has confirmed that the services would not impair their independence. Any other non-
audit related work to be undertaken by the external auditor must be approved by the Chair of the Audit Committee.
Further details relating to the Audit Committee and the engagement of auditors are available in the Corporate
Governance Statement.
Ernst & Young, acting as the Companyʼs external auditor, received or is due to receive the following amounts in
relation to the provision of non-audit services to the Company:

12 13
56 57
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

AUDITOR’S INDEPENDENCE
200 George Street DECLARATION
Ernst & Young Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
REMUNERATION REPORT
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
ey.com/au
(AUDITED)
FOR THE YEAR ENDED 30 JUNE 2017

T H E S TA R E N T E R TA I N M E N T G R O U P L I M I T E D
Ernst & Young Tel: +61 2 9248 5555 A .C. N 1 49 629 023
Auditors Independence Declaration to the Directors of The Star
200 George Street
Sydney NSW 2000 Australia
Fax: +61 2 9248 5959
ey.com/au ASX CODE: SGR
Entertainment Group GPO Box 2646 Sydney NSW 2001
AND ITS CONTROLLED ENTITIES

As lead auditor for the audit of The Star Entertainment Group for the financial year ended 30 June 2017, I
declare to the best of my knowledge and belief, there have been:

Auditors Independence Declaration to the Directors of The Star

a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
Entertainment Group
b) no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of The Star Entertainment Group and the entities it controlled during the financial
As lead auditor for the audit of The Star Entertainment Group for the financial year ended 30 June 2017, I
year.
declare to the best of my knowledge and belief, there have been:

a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
b) no contraventions of any applicable code of professional conduct in relation to the audit.

Ernst & Young is in respect of The Star Entertainment Group and the entities it controlled during the financial
This declaration
year.

John Robinson
Partner
23 August
Ernst 2017
& Young

John Robinson
Partner
23 August 2017

A member firm of Ernst & Young Global Limited

Liability limited by a scheme approved under Professional Standards Legislation

14

58 59
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

REMUNERATION
Remune eration REPORT
R
Report (AUDITED)
(u
unaudited
d) REMUNERATION
Remuneration REPORT (AUDITED)
Report (audited)
FOR THE
For YEAR ENDED
the yearr ended 30 Ju 30 JUNE 2017
une 2017 FOR THE
For YEAR ENDED
the year ended 30 JUNE 2017
30 June 2017

Introductio
on from the Remuneration Committtee Chair Summary for FY17
Dear Shareholder, In accordance with the Reward Strategy, the Company annually assesses the remuneration
Remuneration
a pleased to present the Remuneration
On behalf of the Board, I am R Report for the 3 June 2017 (FY17). This
e year ended 30 levels and mix for Executives to identify where adjustments are appropriate based on market
Reviews
pared on a con
report is prep nsistent basis to the previou
us year for easse of referencce. benchmarking against relevant peer groups. The Company considers companies with a
market capitalisation within the range of 70%-160% of The Star Entertainment Group’s
2016 Annual General Meeting (AGM) market capitalisation and appropriate gaming and entertainment peers. Following the
The FY16 Re emuneration Report
R receive
ed positive sha
areholder supp
port at the 201
16 AGM, with 98.16% of votes in favour remuneration review completed in September 2016, Executives received adjustments to
of the resoluttion. their remuneration as detailed in Table 7.

At the 2016 AAGM, sharehoolders approveed a grant to th

he Managing Director and Chief
C Executivve Officer of performance Payments under the STPP only accrue if the financial performance gateway for Normalised
Short Term
share rights under
u the Lon
ng Term Perforrmance Plan (LTPP).
( His to
otal at risk rem
muneration now
w accounts forr more than Net Profit After Tax (NPAT) for the Group is met. As the financial performance for FY17 was
Performance Plan
70% of total a
annual reward
d, with more th
han 55% delivvered through deferred equity. below the threshold of $245.4 million, set by the Board at the commencement of
(STPP)
performance period, no incentives accrued to Executives in FY17. Figure 3 shows the link
Shareholderss also approveed an increase e to the Non-E Executive Direectors’ (NED) fee
f pool cap frrom $2 million
n to $2.5 between pay and performance and the alignment of short term incentive outcomes to the
million per an
nnum to provid
de future flexib
bility to increase the size off the Board. performance of the Group.
FY17 Perform
rmance and In
ncentive Outc
comes
Performance rights relating to the FY13 LTPP were tested in September 2016. The TSR
The Group delivered Net Profit
P 264.4 million, 36.0% above the pcp. Norm
after Taxx (NPAT) of $2 malised NPAT T (excluding Long Term
performance of the Group was 54.5%, with a percentile ranking of 46.77. As this was below
ems) of $214.5
significant ite 5 million was 11.1%
1 below the
t pcp and be elow the targe
et set by the Board at the be
eginning of Performance Plan th
the 50 percentile required for vesting, no awards were realised under the LTPP for FY13.
the performance period forr the Short Terrm Performan nce Plan (STPPP). The Group p delivered sa
atisfactory non
n-financial (LTPP)
The FY14 LTPP grant is due for testing on 1 October 2017 and comprises an EPS and TSR
performance as measured d against the Guest
G Satisfacction and Safety targets thatt were set by the
t Board for F FY17. Total performance hurdle. The LTPP performance hurdles are being reviewed by the Board for
dividends paiid to sharehollders in FY17 were 16 centss per share, up p 23.1% on thhe pcp. alignment to the Group’s key strategic priorities.
As the financcial performance gateway un
nder the STPP
P was not mett for FY17, no incentives acccrued to Execcutives in
The resolution to increase the Non-Executive Directors’ fee pool from $2.0 million to
FY17. Non-Executive
$2.5 million was approved by shareholders at the 2016 Annual General Meeting. The
Director fees
The FY13 aw ward under the e Long Term Performance
P Plan
P (LTPP) was
w tested for vesting during
g the period an
nd did not increased fee pool provides future flexibility to increase the size of the Board, and to ensure
th
vest. Total Shhareholder Re eturn (TSR) off 54.5% was below
b the 50 percentile of the
t competitorr peer group aand below the the Company maintains the ability to attract and retain high calibre Non-Executive Directors
threshold reqquired for vestting. with the appropriate qualifications, skills, experience and diversity to oversee the Company’s
business and strategic direction. Whilst the fee pool was increased by $0.5 million, total
Future events
increases to NED fees in FY17 was $0.073 million to align Committee fees with the
The FY14 LTTPP is due to be
b tested for vesting
v in Octo
ober 2017. Th
his is the first LTPP
L hat comprises 50%
award th appropriate benchmark. The unutilised fee pool is $0.875 million.
Earnings perr Share (EPS) and 50% Relative Total Shhareholder Retturn (rTSR) hu urdles.
This Remuneration Report is comprised of the following sections:
The Board iss presently und
dertaking a revview of the LT
TPP performan
nce metrics fo
or alignment with
w the Group’’s key
strategic prio
orities.

Further advicce on these matters is expected to be pro

ovided at the upcoming
u 2017 Annual Gen
neral Meeting. Contents

We thank you
u for your support in FY17 and
a welcome your
y feedbackk on our Remu
uneration Rep
port.
CONTENTS
1.
2.
Key Management Personnel.................................................................................................................. 17
Remuneration Governance .................................................................................................................... 17
1. Key
3. Management
Remuneration Personnel
Strategy 62
and Programs................................................................................................... 18
Yours sincere
rely, 4. Executive Contracts
2. Remuneration and Remuneration ................................................................................................. 26
Governance 62
5. Statutory Executive
3. Remuneration Remuneration.........................................................................................................
Strategy and Programs 27
63
6. NED Remuneration
4. Executive Contracts ................................................................................................................................
and Remuneration 29
71
7.
5. Other information
Statutory ....................................................................................................................................
Executive Remuneration 30
72
7.1. KMP shareholdings
6. NED Remuneration ................................................................................................................................ 30
74
Sally Pitkin
7.2.
7. Loans and other transactions with KMP ................................................................................................. 31
Other Information 75
Remuneratio
on Committee Chair
7.3. Variable Remuneration .......................................................................................................................... 32
7.1. KMP Shareholdings 75
7.2. Loans and other transaction with KMP 76
7.3. Variable Remuneration 77

16
15
60 61
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

REMUNERATION
Remuneration REPORT (AUDITED)
Report (audited) REMUNERATION
Remuneration REPORT (AUDITED)
Report (audited)
FOR THE
For YEAR ENDED
the year ended 30 JUNE 2017
30 June 2017 FOR THE
For YEAR ENDED
the year ended 30 JUNE 2017
30 June 2017

The Directors of The Star Entertainment Group Limited (The Star Entertainment Group or the Company) have Gender pay equity
approved this Remuneration Report for the consolidated entity comprising the Company and its controlled entities
The Group is committed to ensuring all employees are remunerated fairly and equitably. The Group conducts annual
(collectively referred to as the Group) in respect of the financial year ended 30 June 2017.
gender pay equity reviews that are presented to the Remuneration Committee. No significant gaps were identified during
This Remuneration Report outlines the remuneration arrangements for Key Management Personnel (KMP) who are FY17.
defined as those persons having authority and responsibility for planning, directing and controlling the major activities of
the Group, directly or indirectly, including any director (whether executive or otherwise) of The Star Entertainment Group
3. Remuneration Strategy and Programs
Limited. This report has been prepared in accordance with the requirements of the Corporations Act 2001(Cth) (the The remuneration strategy at The Star Entertainment Group is designed to support a high performance culture, achieve
Corporations Act) and its regulations. The information has been audited as required by section 308(3C) of the superior performance and as a result, sustainable value for shareholders. The reward programs are designed to promote
Corporations Act where indicated. individual accountability and entrepreneurship in employees.
For purposes of this report, the term ‘Executives’ means the executive director (Managing Director and Chief Executive To achieve these objectives, the key reward principles are shaped around:
Officer) and senior executives (the Chief Financial Officer and the Managing Directors of The Star Sydney and
Queensland properties), but excludes Non-Executive Directors (NEDs). x Being market competitive in order to attract and retain high performing individuals (refer section 3.1 – fixed
remuneration),
1. Key Management Personnel x Paying above market for superior performance behaviours (variable – at risk remuneration) that drive
The names and titles of the Company’s KMP for the year ended 30 June 2017 are set out below. KMP were in office for sustainable value for shareholders (refer section 3.2 – variable (at risk) remuneration),
the entire duration of the financial year, unless otherwise stated. There have been no changes to KMP since the end of
x Delivering a meaningful quantum of awards in equity to create alignment with shareholders’ interest and
the financial year.
manage risk, and
Non-Executive Directors Position
x Linking remuneration components and outcomes to the achievement of the Group’s strategic priorities.
John O’Neill AO Chairman and Non-Executive Director Total Annual Reward (TAR) is comprised of a fixed and a variable component. The variable component includes both a
Gerard Bradley Non-Executive Director short term and long term incentive opportunity. The Group balances the level of fixed versus variable remuneration
based on the industry’s market for talent, the views of shareholders and the need for effective reward mechanisms to
Greg Hayes Non-Executive Director connect short and long-term performance against the Group’s strategic priorities. Fixed remuneration and total target
Katie Lahey AM Non-Executive Director remuneration (fixed remuneration plus variable remuneration) is targeted at the median of the relevant market, with an
th
opportunity to earn above median pay, up to the 75 percentile, where higher levels of performance are realised.
Sally Pitkin Non-Executive Director
Richard Sheppard Non-Executive Director

Executives

Matt Bekier Managing Director and Chief Executive Officer

Chad Barton Chief Financial Officer
Greg Hawkins Managing Director, The Star Sydney
Geoff Hogg Managing Director, Queensland

2. Remuneration Governance
The Remuneration Committee (the Committee) considers matters relating to the remuneration of KMP as well as the
remuneration policies of the Group generally. This includes reviewing and recommending to the Board, the remuneration
of Executives and of the Chairman and NEDs. The main responsibilities of the Committee are outlined in the
Remuneration Committee Terms of Reference, available on the corporate governance page of the Company’s
website: https://www.starentertainmentgroup.com.au/corporate-governance/

Under the Remuneration Committee Terms of Reference, the majority of Committee members must be independent non-
executive directors and the Chair of the Committee must be an independent non-executive director. All members of the
Remuneration Committee (including the Chair of the Committee) are independent non-executive directors. Details of
members of the Committee and their background are included in the Directors’ Report on pages 8 to 11.
Use of remuneration advisors

The Committee seeks external advice from time to time to ensure it is fully informed when making remuneration
decisions. Remuneration advisors are engaged by, and report directly to, the Committee. PricewaterhouseCoopers
(PwC) are the Group’s appointed independent external remuneration consultants. No remuneration recommendations as
defined by the Corporations Act were provided by PwC during FY17.

Remuneration Report approval at 2016 Annual General Meeting (AGM)

The FY16 Remuneration Report received positive shareholder support at the 2016 AGM, with 98.16% of votes in favour
of the resolution.

17 18
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THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

REMUNERATION
Remuneration REPORT (AUDITED)
Report (audited) REMUNERATION
Remune eration REPORT
R
Report (AUDITED)
(a
audited)
FOR THE
For YEAR ENDED
the year ended 30 JUNE 2017
30 June 2017 FOR THE
For YEAR ENDED
the yearr ended 30 Ju 30 JUNE 2017
une 2017

Figure 1 illustrates the components of Executives’ Total Annual Reward (TAR) opportunity and how these are linked to 3.1 Fixed rremuneration
strategic objectives of the Group.
muneration recceived by Exe
The fixed rem ecutives may in nclude base salary,
s superan
nnuation and non-monetaryy benefits.
Figure 1: Components of Executive TAR Opportunity The amount of fixed remunneration an Exxecutive receivves is based on
o the followin
ng:
x Sco
ope and responsibilities of th
he role,
Component/ Performance Strategic Performance
Percentage of Delivery x Refe
erence to the level of remunneration paid to
t Executives of comparablee ASX-listed organisations,
o determined
alignment objective period
TAR base
ed on similar market capitalisation (range
e 70% to 160%% of The Star Entertainment Group’s marrket
capitalisation) and
d industry pee
ers, and

Fixed
x Leve
el of internatio
onal and dome
estic gaming knowledge,
k skkills and experrience of the in
ndividual.
Attraction
remuneration (i)
Cash and
CEO – 27% Market median and retention July 2016 to Fixed remune
eration is revie
ewed annuallyy, and the policy is to target fixed remuneeration at the median
m of the market.
superannuation (Talented
Other Execs – Teams)
June 2017 Fixed remune
eration may deviate from the market med dian depending g on the individual capabilitties and other business
48% factors.
3.2 Variable (at risk) re
emuneration
n
The Star Enteertainment Grroup has two variable
v rewarrd programs designed to drive performance and executtion of the
Short-term Cash and Board approvved business plan to ultimattely deliver su
uperior returnss and long-term
m value creation for shareho olders. They
incentive (STI) cash superannuation
CEO – 18% are the Shortt Term Performmance Plan (SSTPP) and the e Long Term Performance
P P
Plan (LTPP). Further
F detailss of these two
Other Execs – 19% programs aree set out in section 3.3 and 3.5 respective
ely.
Group or property Short-term
performance and financial and non - July 2016 to June Figure 2 illustrates the rem
muneration mixx for the Mana
aging Director and Chief Exeecutive Officer and senior executives
e
individual financial 2017
performance (iii) performance (iii) (the Chief Finnancial Officerr and the Managing Directors of The Starr Sydney and the
t Queenslan nd properties)) respectively.
STI Restricted Figure 2: Re
emuneration mix
m for FY17
Shares Restricted shares (ii)
CEO – 9 %
Other Execs –
10% LTI
Deferred Deferred 23%
Equity Equity
55% LTI 52% 33%
46% STI Deferred
At Risk 10%
73%
Long-term incentive Relative Total Sustainable At Risk 19% STI Cash
(LTI) September 2016 to STI Deferred
D
Performance rights Shareholder Shareholder value 9%
CEO – 46% Return and creation (4-year September 2020 STI Cash
C
Other Execs – 23% Earnings per Share period) Cash Cash
45% 18% 67% Fixed
48%
48%
Fixed
Fixed
d
TAR opportunity 100% 27%
27%
Fixed

(i) Employees may voluntarily elect to salary sacrifice for additional superannuation contributions and motor vehicle novated leases (from fixed Fixed vs. Cash vs.
Fixed vs.
F C
Cash vs. At Risk Deferred Equity
remuneration component only).
At Risk Deferred Equity
(ii) A mandatory one-third of the Executives’ short-term incentive award is deferred into restricted shares which are subject to a holding lock for a period Mana aging Director Th
he Star - Sydneey
of twelve months from the date of the award. ging Director and Chief Executivve Officer
Manag Maanaging Director Queensland
(iii) Table 2 provides details on the strategic priorities and the metrics used to assess performance against the strategic priorities Total Target Annual Rewarrd Chief Financial Officer
To
otal Target Ann nual Reward

19 20
64 65
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

REMUNERATION
Remuneration REPORT (AUDITED)
Report (audited) REMUNERATION
Remune eration REPORT
R
Report (AUDITED)
(a
audited)
FOR THE
For YEAR ENDED
the year ended 30 JUNE 2017
30 June 2017 FOR THE
For YEAR ENDED
the yearr ended 30 Ju 30 JUNE 2017
une 2017

3.3 Short Term Performance Plan Design 3.4 Reward

d Outcomes under STPP
P
The STPP is designed to reward Executives for execution of the Group’s strategy during the performance period. In determinin
ng whether any y incentives are being paid and the size of
o the incentive pool, the Bo
oard considerss both
financial and non-financial performance against targetts.
Payments only accrue under the plan if the Group achieves its financial performance gateway, thereby aligning to
x Financia
al performanc
ce
shareholder interests and achieving a direct link between pay and performance (refer Figure 3). Payments are further
moderated based on satisfactory performance against key non financial performance indicators. Individual payments are The financial performance measure drivving the size off the STPP po
ool is Normalis
sed NPAT of the Group.
performance based and assessed using a weighted balanced scorecard approach (refer Figure 4). Figure 3 showws the Compaany’s reportedd Normalised NPAT
N relative to target overr the last six financial years and the
As the Group did not achieve the financial performance gateway for FY17, no incentives accrued to Executives under the percentage oof STIs awarde
ed relative to the
t ‘on target’ amount.
STPP in FY17. As the financcial performance gateway off $245.4 millio
on (i.e. 95% off Target NPAT
T) was not mett for FY17, no incentives
accrued to Exxecutives.
The number of employees invited to participate in the STPP was approximately 692 (increased from 451 for FY16).
Figure 3: No
ormalised NPAT relative to
o target and percentage
p STI paid
Table 1 sets out the key features of the STPP, all of which are consistent with the prior year.

Table 1: Key design features of the STPP Normalised NPAT relative to target and STI%

300.0
Purpose To reward Executives for execution of the Group’s strategy during the performance period. 125%
Gateway The minimum level of financial performance required before any incentives accrue under the STPP is referred to as the 250.0
115%
gateway. The gateway hurdle is 95% of the budgeted Normalised 1 NPAT of the Group as approved by the Board. This
gateway applies to all Executives and other participants in the plan. The Board may use its discretion to make 200.0
105%

NPAT ($m)
payments to reward for significant non-financial performance.

STI %
150.0
95%
Pool size The pool size is determined by the Board through an assessment of Group performance, including:
1. Financial performance (Normalised NPAT) 100.0 85%
0% of target pool vests at below 95% of budgeted NPAT
50% of target pool vests at 95% of budgeted NPAT 50.0 75%
100% of target pool vests at 100% of budgeted NPAT
150% of target pool vests at 110% of budgeted NPAT - 65%
2. Non-financial performance measures and strategic priorities (Guest Service and Safety). FY12 FY13 FY14 FY15 FY16 FY17

Incentive Opportunities are based on the Executive’s incentive target in their employment contract (refer Table 7) Normalised NPAT ($m) Target NPAT ($m) STI %
opportunity The payment range available is 0%-150% of the Executive’s incentive target.
levels No awards were ma
ade in FY12, FY13 and
a FY17, as targets were not achieved

Payment Individual performance is determined by using a weighted scorecard of measures (Figure 4) to arrive at a performance x STPP po
ool moderatin
ng measures
s
calculation rating. Performance ratings link to payment ranges as follows:
5 = Outstanding (125 – 150% of target) The two non--financial mea
asures conside
ered when dettermining the size
s of the ST
TPP pool are Guest
G Satisfacction and
4 = Exceeds (100 – 125% of target) Safety (TRIFR)^.
3 = Meets (75 – 100% of target)
2 = Meets some (0 – 75% of target) Guest Satisfa action is an ind
dicator of the value delivere
ed from the qu
uality of our cu
ustomer experience and Saffety is a
1 = Did not meet (0% of target) critical focus area of the Group, particulaarly during the
e current capital expansion and
a redeveloppment phase.
An Executive’s individual STI award is based on the following calculation: For FY17, thee Group came e within 95% of
o the Guest Satisfaction
S tarrget and achie
eved better tha
an the Safety TRIFR
T limit
set by the Bo
oard at the com
mmencement of the performmance period.
Individual STI
Group Individual
Fixed Individual Performance Performance
award x Executiv
ve scorecard
ds (individual performance
e)
x x x (capped at
Remuneration Target STI % Multiplier % Multiplier % Although no incentives acccrued to Execuutives in respe
ect FY17, indivvidual perform
mance for Executives was assessed
150% x
(0-150%) (0-150%)
target) against their respective we
eighted balancced scorecard objectives. Details of thesee objectives arre shown in Figure 4.
Payments are capped at 150% of the Executive’s STPP target. Where performance and/or behaviours have been eighted balan
Figure 4: We nced scoreca
ard
deemed unsatisfactory, no incentives are awarded.
Delivery of Two-thirds of payments are delivered in cash in September. Ma
anaging Director and Chief Execu utive Officer Managing Director, The
e Star Sydney
and Chieff Financial Office
er Manaaging Director, Queensland
Q
payments One-third of all payments are held in restricted shares for a period of twelve months from the date of the award. These
(including shares are forfeited in the event that the Executive voluntarily terminates from the Group. Executives are entitled to Differentiated value p
proposition Differentiated value proposition
Deliver Shareholder value Deliver Shareholder value
deferrals) receive dividends and have voting rights during the restriction period, however they are unable to vote on remuneration and Work Class Properties and Woork Class Properties
resolutions at the AGM. x Guest Excellence culture
c x Guest Excellence culture
x Customer loyalty x Earnings and market x Custom
mer loyalty x Net revenue
r growth
share growth tarrgets x EBIT
TDA growth
Clawback Incentives may be clawed back where there has been a material misrepresentation of the financial outcomes on which People
x Diversification of
People Guest
x EGMM market share
Other 20%
the payment had been assessed and/or the Executive’s actions have been found to be fraudulent, dishonest or in strateggic
international revvenue grow
wth
x Safety TRIFR^ x Safety TRIFR^
breach of the Group’s Code of Conduct (e.g. misconduct). This provision may extend up to the prior three financial priorities
x Operational efficciencies hareholder x Operrational efficiencies
Sh
x Diversity and Engagement^ x x Diversiity and Engagement^ and margin optimisation
Delivery of capittal valu
ue creation
years of STPP payments. x Talent developmennt and 40% Shareholder redevelopment plans
p on x Talent development and People
40% x Delivvery of capital
retention value creation time, on budget on
retentio 20% mainntenance and
1 60% x Balance sheet redevvelopment plans on
Normalised results reflect the underlying performance of the business as they remove the inherent volatility of the International VIP Rebate Governance, risk and
d management / capital
c Governannce, risk and time,, on budget
business and exclude significant items that are considered by their nature and size unusual or not in the ordinary course of business. This methodology has stakeholder managemment ratios stakehold
der management
Governance
been consistently applied since FY12. x Compliance x Compliance 20%
x Sustainability x Sustainnability
x Key stakeholder maanagement

^External p
providers are enga
aged to report on TRIFR, Guest Satisfaction and Emp
ployee Engageme
ent scores as applicable.

21 22
66 67
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

REMUNERATION
Remuneration REPORT (AUDITED)
Report (audited) REMUNERATION
Remuneration REPORT (AUDITED)
Report (audited)
FOR THE
For YEAR ENDED
the year ended 30 JUNE 2017
30 June 2017 FOR THE
For YEAR ENDED
the year ended 30 JUNE 2017
30 June 2017

Table 2 provides a summary of performance against the strategic priorities of the Group for FY17.
Table 2: FY17 Performance outcomes against strategic priorities and key performance indicators
Strategic Key performance indicator
Priorities
Shareholder FINANCIAL PERFORMANCE
Value and x Deliver budgeted Normalised NPAT and EBITDA
World Class (improving earnings and operating efficiencies)
Properties x Grow revenues and market share in domestic and
International Rebate Business (IRB), including
diversification of revenue
x Grow EGM Market Share
x Manage operational benchmarks, cash and receivables
CAPITAL REDEVELOPMENT PLANS
x Deliver capital works within scope, timing and budget
x Progress master planning for Sydney and the Gold Coast
in line with business strategy
x Progress Queen’s Wharf Brisbane (QWB) development in
line with approved time frames
x Manage balance sheet and key ratios in line with target
Differentiated GUEST SERVICE CULTURE
value x Elevate the customer service culture through:
proposition o Implementation of world class Guest Service System
(refers to a comprehensive system geared towards
creating sustainable service culture)
o Measuring the internal level of customer service
through an independently managed Internal Customer
Survey (ICS)
LEADERSHIP IN LOYALTY
x To achieve a leadership position in Loyalty and thereby
achieve growth in market share and earnings
x Execution on Loyalty targets include:
o relaunch of program on an upgraded platform to offer
improved program features and enhanced analytics
capability
o focus on existing customer engagement levels to
increase rated play and offer attainable mid-tier
benefits and exemplary customer service, improving
new member quality and acquisition metrics
x Deliver the Group’s new branding for The Star Gold Coast
People EMPLOYEE ENGAGEMENT
x Focus on ensuring continuous improvements in employee
engagement and diversity through identification and
delivery of appropriate targeted action plans and initiatives
x Support a culture of continuous learning through
implementation of contemporary Learning Management
System (LMS) and effective leadership behaviours and
competencies
SAFETY
x Deliver a safe environment for guests and team members
across the Group
x Measure Work, Health & Safety (WHS) progress, including
Total Reportable Injury Frequency Rate (TRIFR), Long
Term Injury Frequency Rate (LTIFR)
x Operationalise strategy and measures of progress,
including implementation of robust WHS information
technology platform and increased reporting
Governance, RISK, COMPLIANCE & SUSTAINABILITY
risk and x Foster a sound control and compliance environment
stakeholder
underpinned by a strong governance framework, including:
management
o Effective implementation and monitoring of
compliance with company policies and procedures
o Active monitoring of regulatory and other legislative
compliance requirements
x Deliver on the Sustainability Strategy and achieve resource
consumption reduction
x Maintain and develop key stakeholder relationships
including with regulatory and law enforcement agencies,
community organisations, shareholders, trade unions and
other key business partners.
3.5 Long Term Performance Plan
The LTPP is principally designed to reward Executives for their contributions towards achieving the Group’s strategic
Performance outcomes/ commentary Overall priorities orientated around the achievement of sustainable shareholder value creation. Equity awards are granted
Rating
annually and may vest after four years (subject to performance). Performance is measured at the test date against two
x The Group’s normalised EBITDA and NPAT performance criteria rTSR and EPS. The Board is presently reviewing the LTPP performance criteria in the context of its strategic
were below budget, impacted by disruptions from capital
works at the Sydney and Gold Coast properties and softer Below priorities to ensure these are appropriate and effective in driving the execution of the strategy. Consultation with key
macro-environment and events in China target stakeholders is an important part of this review.
x EGM Market share flat in Sydney and down ~1% in Qld
x IRB actual win rate above normalised levels, receivables For FY17, there were 17 participants in the plan (9 participants for FY16). Each of the Executives participates in the plan.
well controlled, increased dividend to shareholders
x Benefits of around $48m in FY17 from “Fit for Growth”
program that is focused at driving year on year sustainable
Table 3 sets out the key features of the LTPP, all of which are consistent with the prior year.
improvements/operational efficiencies
Table 3: Key design features of the LTPP
x Master planning and redevelopment works progressing in
line with expectations with Capital expenditure of more than To reward Executives for execution of the Group’s strategy and delivering long term sustainable shareholder value
$420m completed in FY17. Key projects delivered in FY17 Purpose
creation.
include: On target
o (Sydney) – upgrade to 303 room Astral Tower hotel, Performance Rights - when the performance rights vest, ordinary shares in The Star Entertainment Group are
entry level domestic private gaming room (Vantage),
Type of equity automatically registered in the participant’s name and the participant will have voting and dividend rights corresponding
multi-terminal gaming machine theatre
o (Gold Coast) – main gaming floor refresh, upgrade to award to the rights of all other holders of ordinary shares. These ordinary shares are free of restrictions but are still subject to
596 room hotel, reception and Atrium area, launched The Star Entertainment Group’s Securities Trading Policy.
two new restaurants
x QWB development on track, demolition works commenced Determination of The number of performance rights allocated to an Executive is based on the following calculation:
x Gearing and other key ratios were within target range the number of
rights Moderated face
Number of performance rights
x Guest service scores within 95% of target except on the Target LTI ($) y value of a
allocated
Gold Coast where this was >10% below target performance right
x Over 85% of staff completed the ‘Star Quality’ service
foundations training that is also embedded in induction Slightly Moderated face value reflects the face value of the share at the allocation date less the value of any dividends foregone
programs across the Group below by the award holder during the vesting period, i.e. Share price x Dividend Discount Factor. Details of annual grant
x Over 17,500 guest surveys completed target values for Executives is set out in Table 7.
x Satisfactory ICS results from FY17 survey
Vesting rTSR (50% of the award) EPS (50% of the award)
conditions
x Loyalty program relaunched per plan in November 2016 On track rTSR has been included to focus the Executives on EPS has been included to drive line of sight between
(hurdles) and
x Relaunched loyalty program showing positive initial signs the return received by shareholders (capital returns, shareholder value creation and management’s financial
x Member perception improving month on month since schedule
dividends and share price movement) over the four performance, against the Group’s business plan. It measures
relaunch in November 2016
year period relative to a peer group of companies. growth in accounting-based earnings per ordinary share.
x Electronic gaming rated play in FY2017 continued to grow
faster than unrated play across key metrics – turnover, TSR peer group: S&P ASX 100 FY17 EPS target: EPS Growth to FY20
actual and theoretical win across both Slots and MTGMs
x New member acquisition showing initial signs of improving Exclusions: property trusts, infrastructure groups, and The EPS threshold and stretch target is set by the Board at the
quality – increased visitation within first 4 weeks of signing mining companies, represented by the S&P Global beginning of the performance period by reference to a Board
up and higher average gaming spend per trip in 2H2017 on
Industry Classification Standards of Oil & Gas, Metals approved long term plan.
pcp
& Mining, Transportation Infrastructure and Real
x The Star Gold Coast rebranding completed as per plan The Star Entertainment Group will disclose the actual EPS
Estate.
x Employee engagement action plans following FY16 target on a retrospective basis to ensure that the Group’s
Employee Opinion Survey (EOS) satisfactorily on track On track competitive position is not undermined.
across all properties.
x ICS completed with overall score within threshold The Star EPS performance Percentage of performance
Percentage of
x LMS implemented in Dec 2016 with more than 67,000 Entertainment outcome rights that will vest
performance rights that
online compliance training modules completed Group’s relative
will vest Below threshold 0%
x Multiple Diversity and Inclusion and HR awards and finalist TSR ranking
nominations, including for Employer of Choice At threshold 50%
Below 50th
0% Between threshold Pro-rata between threshold and
x Revised WHS strategy approved and implemented in FY17 On track percentile
and stretch target
x TRIFR scores improved on pcp and on decreasing for all At 50th percentile 50%
properties except Gold Coast Above 50th and Pro-rata between 50% (at At stretch 100%
x LTIFR below expectations - remedial plans under review in below 75th 50th percentile) and
conjunction with overall safety improvement plans percentile 100% (at 75th percentile)
x Phase 1 of Work Safety Management System implemented At or above 75th
100%
percentile
Test Date and
Performance rights are tested on the fourth anniversary of the grant and are not subject to retesting.
x No material compliance or risk breaches Vesting date
x Casino licence review in Sydney completed with no
Above All unvested performance rights lapse immediately upon cessation of employment with The Star Entertainment Group.
material findings
target However, the Board has discretion in special circumstances to determine the number of performance rights retained
x The Group obtained the global leadership position of the
Casino and Gaming Industry in the Dow Jones and the terms applicable. Special circumstances include events such as retirement, redundancy, death and permanent
Cessation of
Sustainability Index and remains a member of the disability. If a Change of Control Event occurs, or the Board determines in its absolute discretion that a Change of
FTSE4Good Index employment,
Control Event may occur, the Board will determine in its absolute discretion appropriate treatment regarding any
x ESG Strategy on track Change of
Awards.
x Progress made with QWB development and relations with Control and
broader stakeholder groups during development phase Clawback
Unvested rights may be clawed back where there has been a material misrepresentation of the financial outcomes on
x Development approvals and submissions for expansion
projects (including with joint venture partners) on track which the award had been assessed and/or the Executive’s actions have been found to be fraudulent, dishonest or in
x Over $10m contributed to partnerships, community groups breach of the Group’s Code of Conduct (e.g. misconduct).
and charities

23 24
68 69
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

REMUNERATION
Remuneration REPORT (AUDITED)
Report (audited) REMUNERATION REPORT (AUDITED)
FOR THE
For YEAR ENDED
the year ended 30 JUNE 2017
30 June 2017 FOR THE YEAR ENDED 30 JUNE 2017

3.6 Vesting under the LTPP

Since the Group’s inception in 2011, there have been six grants made under the LTPP, with two grants tested and no
vesting outcomes (refer Table 4).

The Star Entertainment Group deducts superannuation from the Executives’ fixed remuneration as per the Australian Tax Office Superannuation Guarantee Cap.

$1,100,000
$550,000

$330,000
$220,000
Table 4: Details of performance rights issued to date

FY16
Managing Director,
Detail FY12 Grant FY13 Grant FY14 Grant FY15 Grant FY16 Grant FY17 Grant

Open ended
Queensland
Geoff Hogg

12 months
12 months
6 months
9 months
Grant date 20 Sep 2011 19 Sep 2012 1 Oct 2013 26 Sep 2014 21 Sep 2015 5 Oct 2016

Remuneration arrangements for Executives are formalised in employment contracts. Table 7 sets out details of Executive employment contracts, including remuneration.

N/A
N/A
Test date 20 Sep 2014 19 Sep 2016 1 Oct 2017 26 Sep 2018 21 Sep 2019 5 Oct 2020

$1,254,000
$605,000

$363,000
$286,000
Vesting hurdle(s) TSR TSR TSR & EPS TSR & EPS TSR & EPS TSR & EPS

FY17
Test result 0% vested 0% vested N/A N/A N/A N/A

During FY17, the FY13 grant was tested and did not vest as performance hurdles were not met.
The next test date will be in October 2017, for performance rights granted in FY14.

The FY13 Grant was the first grant with a four year performance period, resulting in a gap year in 2015. Prior to this, the

$2,400,000
$1,200,000

$720,000
$480,000
vesting period was three years.

FY16
Managing Director,
Performance rights relating to the FY13 grant were tested in September 2016. The TSR performance of the Group was

The Star Sydney

26
Greg Hawkins

Open ended
12 months

12 months
54.5% (excluding the value of franking credits), with a percentile ranking of 46.77. As this was below the 50th percentile

Exclusion from being engaged in any business or activity in Australia which competes with or is substantially similar to the business of The Star Entertainment Group.
9 months
9 months
N/A
N/A
required for vesting, no awards were realised under the LTPP for FY13.
The FY14 Grant, due to be tested on 1 October 2017, is the first award with an EPS performance hurdle that comprises

$2,640,000
$1,260,000

$756,000
$624,000
50% of the award outcome. The Group introduced the EPS measure in FY14 to better align the reward outcomes under

FY17
the LTPP with the execution of the Group’s strategic priorities. The outcomes will be reported in the FY18 Remuneration
Report.

the notice of termination by the Group

Notice period or 6 months following
$1,365,000
Table 5 outlines the performance of the Group and shareholder returns over the last six financial years.

$682,500

$409,500
$273,000
FY16
Chief Financial Officer
Table 5: Statutory key performance indicators

for any reason.

Chad Barton

Open ended
12 months
6 months
9 months
Performance metric FY12 FY13 FY14 FY15 FY16 FY17

N/A
N/A
Statutory NPAT $42.2m $83.5m $106.3m $169.3m $194.4m $264.4m

$1,528,901
$733,688

$440,213
$355,000
Basic EPS (statutory) 5.9c 10.1c 12.9c 20.5c 23.6c 32.0c

FY17
Full year dividend (fully franked, cents 4.0c 6.0c 8.0c 11.0c 13.0c 16.0c
per share)

Share price at year end $4.28 $3.06 $3.14 $4.36 $5.40 $5.05

Increase/(decrease) in share price N/A (29%) +3% +39% +24% (6%)

$4,400,000
$1,650,000

$1,650,000
$1,100,000
FY16
Chief Executive Officer
Managing Director and
Table 6 summarises the unvested performance rights held by Executives as at 30 June 2017.

Open ended
Matt Bekier

12 months
12 months

12 months

12 months
4. Executive Contracts and Remuneration

N/A
N/A
Table 6: Performance rights by grant held by Executives at 30 June 2017

$6,290,000
$1,695,000

$1,695,000
$2,900,000
Remuneration Report (audited)
Executive FY14 Grant FY15 Grant FY16 Grant FY17 Grant Total performance rights

FY17
held

Table 7: Executive Employment Contracts

Matt Bekier 196,850 352,112 253,456 548,204 1,350,622

Chad Barton - 91,549 62,903 67,108 221,560

Greg Hawkins - 169,014 110,599 117,958 397,571

Long-term incentive (annual grant value)

For the year ended 30 June 2017
Geoff Hogg 62,992 70,422 50,691 54,064 238,169

Total performance rights 259,842 683,097 477,649 787,334 2,207,922

Total Target Annual Reward

Short-term incentive target
The FY13 Grant was tested in September 2016 and as performance hurdles were not met and there is no retesting of hurdles, these rights lapsed.

Notice by the Executive

Non-monetary benefits

Notice by the Group

Fixed remuneration

Contract duration
Contract Details

Superannuation

Non solicitation
Other benefits

Restraint (i)

(i)
25
70 71
72
THE STAR ENTERTAINMENT GROUP

Remuneration Report (audited)

For the year ended 30 June 2017

5. Statutory Executive Remuneration

Table 8 sets out Executive remuneration as required by the Corporations Act and its regulations, including the relevant Australian Accounting Standard principles.
Table 8: Statutory Executive Remuneration
Executive Financial Short-term Long-term Post-Employment Charge for share based allocations Total Performance
year (i) (ii) (iv)
remuneration related
Salary & fees Bonus Non-monetary Long service Superannuation Performance Restricted shares $ %
(ii)
$ $ benefits (iii) leave $ rights (v)
$ $ $ $

Matt Bekier 2017 1,692,785 - 1,040 36,018 35,000 976,850 - 2,741,693 36%

2016 1,575,505 1,584,000 2,353 51,085 30,524 607,104 792,000 4,642,571 64%

Chad Barton 2017 706,241 - 1,040 14,001 30,000 165,235 - 916,517 18%
FOR THE YEAR ENDED 30 JUNE 2017

2016 691,918 343,980 194 11,961 30,000 97,649 171,990 1,347,692 46%
REMUNERATION REPORT (AUDITED)

Greg Hawkins 2017 1,281,943 - 1,317 22,819 35,216 295,427 - 1,636,722 18%

2016 1,223,119 630,000 299,509 20,008 39,608 176,620 315,000 2,703,864 41%

Geoff Hogg 2017 576,553 - 4,929 17,655 19,616 162,743 - 781,496 21%

2016 543,761 231,000 4,797 15,219 19,308 143,290 115,500 1,072,875 46%

TOTAL FY17 4,257,522 - 8,326 90,493 119,832 1,600,255 - 6,076,428

TOTAL FY16 4,034,303 2,788,980 306,853 98,273 119,440 1,024,663 1,394,490 9,767,002

(i) Comprises salary, salary sacrificed benefits (including motor vehicle novated leases) and annual leave expense.
(ii) Represents STPP award delivered as two-thirds cash award and one-third restricted shares. For accounting purposes, the charge relating to the grant of restricted shares is recognised as a share based payment expense in the income
statement over the vesting period. The amounts recognised in share based payments expense in FY17 in respect of FY15 and FY16 STPP awards were: Matt Bekier $381,403, Chad Barton $93,206, Greg Hawkins $160,182 and Geoff
Hogg $76,608.
(iii) Comprises car parking, accommodation, airfares, travel costs, relocation expenses, living away from home benefits and taxation services where applicable.
(iv) Comprises superannuation contributions per Superannuation Guarantee legislation and salary sacrificed superannuation.
(v) Represents the fair value of share based payments expensed by The Star Entertainment Group in relation to LTPP awards.

27

Remuneration Report (audited)

For the year ended 30 June 2017

5. Statutory Executive Remuneration cont.

Table 9 summarises the Executives’ remuneration for FY17 based on awards made and vested (or forfeited) during FY17.
These outcomes differ to the statutory remuneration disclosed in Table 8 that are based on Australian Accounting Standard principles.

Table 9: Remuneration outcomes for the year ended 30 June 2017 – Executives

Executive Fixed pay Short-term incentives Long-term incentives Total remuneration Long-term incentives
Cash vested during the year $ lapsed during the year (iii)
(ii)
$ (i)
$
Cash Shares $
FOR THE YEAR ENDED 30 JUNE 2017

$ $
REMUNERATION REPORT (AUDITED)

Matt Bekier 1,695,000 - - - 1,695,000 (1,343,180)

Chad Barton 733,688 - - - 733,688 -

Greg Hawkins 1,260,000 - - - 1,260,000 -

Geoff Hogg 605,000 - - - 605,000 (376,090)

TOTAL FY17 4,293,688 - - - 4,293,688 (1,719,270)

(i) As the financial performance gateway under the STPP was not met for FY17, no incentives accrued to Executives under the STPP in FY17
(ii) No performance rights vested in FY17 as performance hurdles were not met.
(iii) No performance rights vested in FY17 as performance hurdles were not met. The amount shown is the realisable value of performance rights at lapse date.
73
ANNUAL REPORT 2017
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

REMUNERATION REPORT (AUDITED) REMUNERATION REPORT (AUDITED)

Remuneration
FOR THE Report (audited) Remuneration Report
30 (audited)
For YEAR ENDED
the year ended 30 JUNE
30 June 2017 2017 FOR THE
For YEAR ENDED
the year ended 30 June 2017 JUNE 2017

6. NED Remuneration 7. Other information

Remuneration Policy
x NEDs receive a Board fee and a Committee fee for their participation as Chair or member of each Committee.
x NEDs do not receive any performance or incentive payments and are not eligible to participate in any of
The Star Entertainment Group’s reward programs. This policy aligns with the principle that NEDs act
independently and impartially.
x Board fees are not paid to the Managing Director and Chief Executive Officer. Executives do not receive fees
for directorships of any subsidiaries.
NED Fees
The aggregate fees payable to NEDs for their services as directors are limited to the maximum annual amount approved
by shareholders, currently set at $2,500,000 including superannuation contributions.
There were small increases to Committee fees in FY17 to align with the increasing demands on Committee members
and to maintain market competitiveness. Board and Committee fees effective from 1 July 2016 are shown in Table 10.
7.1. KMP shareholdings
To align the interests of the Board and Executives with the interests of shareholders generally, the Company introduced
in FY16, a minimum shareholding policy for KMP. There is a separate Minimum Shareholding Policy that applies to other
executives who report directly to the Managing Director and Chief Executive Officer.
Minimum Shareholding Policy for Executives
Executives are encouraged to progressively acquire shares over a five year period from the date of their appointment (for
new Executives), or within five years from the date of commencement of the policy (for existing Executives).
The Managing Director and Chief Executive Officer is to hold a minimum number of shares which is of equal value to
150% of one year’s base salary at the time of his unconditional appointment.
Other Executives are to hold a minimum number of shares which is of equal value to 100% of one year’s base salary at
the time of their unconditional appointment.

Table 10: Annual NED Fees (inclusive of superannuation) Direct and indirect holdings in shares or performance rights will each count towards the minimum shareholding target.

Board Audit Risk & Remuneration People, Culture & Investment & Capital Minimum Shareholding Policy for NEDs
Compliance Social Expenditure Review
Responsibility NEDs are encouraged to progressively acquire shares over a three year period from the date of commencement of their
unconditional appointment (for within three years from the date of commencement of the policy (for existing directors).
Chair $475,000 $35,000 $35,000 $35,000 $30,000 $30,000 NEDs are to hold shares of equal value to their respective annual base fees applicable at the time of their unconditional
appointment.
Member $160,000 $17,500 $17,500 $17,500 $15,000 $15,000
Direct and indirect holdings will both count towards the minimum shareholding target.
The Star Entertainment Group remunerates NEDs for the full month of fees irrespective of their commencement date. Observer fees are paid
where the NED appointment is subject to regulatory approvals being obtained. Observer fees are equivalent to applicable Board and Committee fees. Tables 12 and 13 show the number of shares and performance rights held by NEDs and Executives respectively at the
beginning and end of the financial year.
Table 12: Shares held by NEDs at 30 June 2017
A summary of the total remuneration received by each NED is set out in Table 11.
Table 11: NED Remuneration NED Balance at start of the Number acquired Number divested Balance at the end of
year the year
NED Financial year Board and Committee Fees Superannuation (i) Total John O’Neill AO 51,172 3,176 - 54,348
$ $ $
Gerard Bradley 25,000 - - 25,000
John O'Neill AO 2017 439,168 35,832 475,000
Greg Hayes 10,000 - - 10,000
2016 439,476 35,524 475,000
Katie Lahey AM 27,080 - - 27,080
Gerard Bradley 2017 225,384 19,616 245,000
Sally Pitkin 26,900 19,000 - 45,900
2016 208,609 19,308 227,917
Richard Sheppard 50,000 30,000 - 80,000
Greg Hayes 2017 207,965 19,535 227,500
Total ordinary shares 190,152 52,176 - 242,328
2016 203,139 18,944 222,083

Katie Lahey AM 2017 205,580 19,420 225,000

2016 191,781 18,219 210,000

Sally Pitkin 2017 207,983 19,517 227,500

2016 194,064 18,436 212,500

Richard Sheppard 2017 205,562 19,438 225,000

2016 196,419 18,581 215,000

TOTAL FY17 2017 1,491,642 133,358 1,625,000

TOTAL FY16 2016 1,433,488 129,012 1,562,500

(i) Comprises superannuation contributions per Superannuation Guarantee legislation and salary sacrificed superannuation.

29 30
74 75
76
(ii)
(i)

(iii)
FOR THE

7.2.
Executive

Matt Bekier

Geoff Hogg
Chad Barton

Greg Hawkins
For YEAR
THE STAR ENTERTAINMENT GROUP

from the acquisition date

the year ended
Remuneration

Holding
ENDED
30 June 2017

Ordinary Shares
Ordinary Shares
Ordinary Shares
Ordinary Shares
Report

Restricted Shares
Restricted Shares
Restricted Shares

Restricted Shares iii

Performance Rights
Performance Rights
Performance Rights
Performance Rights
30 JUNE

-
-
(audited)

year

30,897
62,081
47,536
32,366

247,741
279,613
154,452
146,733
361,140
1,029,690
2017
REMUNERATION REPORT (AUDITED)

Balance at start of the

Loans and other transactions with KMP

20,993
31,938
54,064
56,212
48,868
30,775
33,273
67,108

There have been no loans or other transactions with KMP during the year.
117,958
141,689
548,204

148,633

Restricted shares that are no longer subject to a holding lock are converted into ordinary shares
as compensationi
Acquired or granted
Table 13: Shares and Performance Rights held by Executives at 30 June 2017

-
-

-
-
-
-
year ii

(30,575)
(63,636)
(48,151)
(32,785)
(148,633)
(227,272)

Note: The closing balances of restricted shares are subject to a deferral period of one year that ends on 15 September 2017.
transferred during the
Disposed of, lapsed or

Includes shares acquired under the Dividend Reinvestment Plan and transfers from restricted shares where the holding lock has been lifted
21,315
94,019
55,597
48,868
30,356
33,273

238,169
397,571
221,560
139,789
509,773
the year

1,350,622
Balance at the end of

Includes 217 ordinary shares acquired through salary sacrifice under the General Employee Share Plan that are subject to a holding lock for three years

31
Remuneration Report (audited)
For the year ended 30 June 2017

7.3. Variable Remuneration

Table 14 shows the variable remuneration of Executives under the STPP and LTPP during the period. Details of the number of performance rights granted, vested or lapsed during the
period are also provided as required under the Corporations Act and its regulations, including the relevant Australian Accounting Standard principles.
Table 14: Variable Remuneration
STPP LTPP

Executive Financial Cash award Restricted As a % of STI not Number of Fair value of Average Grant date Test date As a % of Number of Number of
year $ share grant total achieved as performance performance Fair value total performance performance
$ remuneration a % of target rights granted rights granted per right at remuneration (ii) rights vested rights lapsed
(i) (iii)
$ grant date
$

Matt Bekier 2017 - - 0% 100% 548,204 2,338,091 4.27 5/10/2016 5/10/2020 36% - (227,272)
FOR THE YEAR ENDED 30 JUNE 2017
REMUNERATION REPORT (AUDITED)

2016 1,584,000 792,000 51% 0% 253,456 893,433 3.53 21/09/2015 21/09/2019 13% - -

Chad Barton 2017 - - 0% 100% 67,108 286,217 4.27 5/10/2016 5/10/2020 18% -

2016 343,980 171,990 38% 0% 62,903 221,734 3.53 21/09/2015 21/09/2019 7% - -

Greg Hawkins 2017 - - 0% 100% 117,958 503,091 4.27 5/10/2016 5/10/2020 18% -

2016 630,000 315,000 35% 0% 110,599 389,862 3.53 21/09/2015 21/09/2019 7% - -

Geoff Hogg 2017 - - 0% 100% 54,064 230,584 4.27 5/10/2016 5/10/2020 21% - (63,636)

2016 231,000 115,500 32% 0% 50,691 178,687 3.53 21/09/2015 21/09/2019 13% - -

Total FY17 - - 787,334 3,357,983 (290,908)

Total FY16 2,788,980 1,394,490 477,649 1,683,716 - -

(i) Maximum opportunity available is 150% of the Executives’ target incentive level.
(ii) Percentage calculation based on accounting LTI expense and total remuneration as reported in Table 8.
(iii) Performance rights granted in FY13 were tested in September 2016 and resulted in no vesting of performance rights. FY14 performance rights are due for testing in October 2017.
77
ANNUAL REPORT 2017
 ANNUAL REPORT 2017

Consolidated income statement

FINANCIAL REPORT CONSOLIDATED
For the year ended 30INCOME
June 2017 STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017

2017 2016
Note $m $m
T H E S TA R E N T E R TA I N M E N T G R O U P L I M I T E D Revenue A2 2,344.0 2,268.1
A .C. N 1 49 629 023
ASX CODE: SGR Other income A3 1.1 0.8
AND ITS CONTROLLED ENTITIES Government taxes and levies A3 (526.2) (504.6)
Commissions and fees (247.3) (313.7)
Employment costs A3 (609.1) (600.5)
Depreciation and amortisation A4 (164.5) (163.8)
Cost of sales A3 (85.7) (81.8)
Property costs (77.9) (77.8)
Advertising and promotions (91.5) (85.7)
Other expenses (120.5) (116.0)
Share of net loss of associate and joint venture entities accounted for
using the equity method D5 (0.7) -

Earnings before interest and tax (EBIT) 421.7 325.0

Net finance costs A5 (41.7) (45.8)

Profit before income tax (PBT) 380.0 279.2

Income tax expense F2 (115.6) (84.8)

Net profit after tax (NPAT) 264.4 194.4

Other comprehensive (loss)/income

Items that may be reclassified subsequently to profit or loss
Change in fair value of cash flow hedges taken to equity, net of tax F1 (13.4) 9.6
Total comprehensive income for the period 251.0 204.0

Earnings per share:

Basic earnings per share F3 32.0 cents 23.6 cents
Diluted earnings per share F3 31.9 cents 23.6 cents
Fully franked dividend per share A6 16.0 cents 13.0 cents

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

33

79
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Consolidated balance sheet Consolidated statement of cash flows

CONSOLIDATED
For the year ended 30BALANCE
June 2017 SHEET CONSOLIDATED
For the year ended 30STATEMENT
June 2017 OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017

2017 2016 2017 2016

Note $m $m Note $m $m

ASSETS Cash flows from operating activities

Cash and cash equivalents B1 113.7 159.0 Net cash receipts from customers (inclusive of GST) 2,348.3 2,287.6
Trade and other receivables B2 192.7 130.3 Payments to suppliers and employees (inclusive of GST) (1,259.4) (1,307.7)
Inventories 11.9 9.0 Payment of government levies, gaming taxes and GST (521.0) (502.5)
Derivative financial instruments B3 48.4 14.5 Interest received 1.0 1.3
Other assets F4 60.9 38.5 Income taxes paid F2 (95.6) (100.8)

Total current assets 427.6 351.3 Net cash inflow from operating activities F9 473.3 377.9

Property, plant and equipment B4 2,360.5 2,120.9

Cash flows from investing activities
Intangible assets B5 1,851.8 1,836.7
Payments for property, plant, equipment and intangibles (407.6) (292.5)
Derivative financial instruments B3 151.1 242.0
Payments for investment in associate and joint venture entities (183.9) (29.3)
Investment in associate and joint venture entities D5 212.4 29.3
Other assets F4 11.9 15.2 Net cash (outflow) from investing activities (591.5) (321.8)

Total non current assets 4,587.7 4,244.1

Cash flows from financing activities
TOTAL ASSETS 5,015.3 4,595.4
Proceeds from interest bearing liabilities B7 434.5 160.0
Repayment of interest bearing liabilities B7 (185.0) (110.0)
LIABILITIES Dividends paid A6 (123.9) (94.9)
Trade and other payables F5 324.5 261.9 Finance costs (52.7) (48.8)
Interest bearing liabilities B7 130.0 -
Net cash inflow/(outflow) from financing activities 72.9 (93.7)
Income tax payable F2 28.8 20.8
Provisions F6 66.5 58.3
Derivative financial instruments B3 18.4 17.8 Net (decrease)/increase in cash and cash equivalents (45.3) (37.6)
Other liabilities F7 21.1 20.9
Cash and cash equivalents at beginning of the year 159.0 196.6
Total current liabilities 589.3 379.7
Cash and cash equivalents at end of the year B1 113.7 159.0
Interest bearing liabilities B7 915.0 813.5
Deferred tax liabilities F2 188.2 181.9 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Provisions F6 9.9 14.6
Derivative financial instruments B3 37.3 58.0

Total non current liabilities 1,150.4 1,068.0

TOTAL LIABILITIES 1,739.7 1,447.7
NET ASSETS 3,275.6 3,147.7

EQUITY
Share capital F8 2,580.5 2,580.5
Retained earnings 702.3 561.8
Reserves F8 (7.2) 5.4

TOTAL EQUITY 3,275.6 3,147.7

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

34 35

80 81
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Consolidated statement of changes in equity

CONSOLIDATED
For the year ended 30STATEMENT
June 2017 OF CHANGES IN EQUITY NOTES TO THE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
FOR THE YEAR ENDED 30 JUNE 2017
Share based
Ordinary Retained Hedging payment
shares earnings reserve reserve Total
Refer to the Operating Financial Review (OFR) within the Directors’ Report for details of key transactions during the year.
Note $m $m $m $m $m
2017

CONTENTS
Balance at 1 July 2016 2,580.5 561.8 (0.4) 5.8 3,147.7
Profit for the year - 264.4 - - 264.4
Other comprehensive income F1 - - (13.4) - (13.4)
Total comprehensive income - 264.4 (13.4) - 251.0 A K E Y I N C O M E S TA T E M E N T D I S C L O S U R E S  84
A1. Segment information 84
Dividends paid A6 - (123.9) - - (123.9)
A2. Revenue 85
Employee share based payments F10 - - - 0.8 0.8 A3. Expenses 85
A4. Depreciation and amortisation 86
Balance at 30 June 2017 2,580.5 702.3 (13.8) 6.6 3,275.6
A5. Net finance costs 86
A6. Dividends 87
A7. Significant items 87
2016 B KEY BA L A N C E SH E ET D I SC LOS U RES 88
Balance at 1 July 2015 2,580.5 462.3 (10.0) 2.6 3,035.4 ASSETS
Profit for the year - 194.4 - - 194.4 B1. Cash and cash equivalents 88
B2. Trade and other receivables 88
Other comprehensive income F1 - - 9.6 - 9.6
B3. Derivative financial instruments 90
Total comprehensive income - 194.4 9.6 - 204.0 B4. Property, plant and equipment 91
Dividends paid A6 - (94.9) - - (94.9) B5. Intangible assets 92
Employee share based payments F10 - - - 3.2 3.2 B6. Impairment testing and goodwill 93
LIABILITIES 95
Balance at 30 June 2016 2,580.5 561.8 (0.4) 5.8 3,147.7 B7. Interest bearing liabilities 95
C COMMITMENTS, CONTING ENCIES AND SUBSEQUENT EVENTS 97
C1. Commitments 97
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. C2. Contingent liabilities 97
C3. Subsequent events 97
D G RO U P ST R U CT U R E  98
D1. Related party disclosures 98
D2. Parent entity disclosures 100
D3. Deed of cross guarantee 101
D4. Key Management Personnel disclosures 102
D5. Investment in associates and joint venture entities 103
E RI SK M A N AG E M E NT 106
E1. Financial risk management objectives and policies 106
E2. Additional financial instruments disclosures 109
F OT H E R D I S C LO S U R E S  112
F1. Other comprehensive income 112
F2. Income tax 112
F3. Earnings per share 115
F4. Other assets 115
F5. Trade and other payables 115
F6. Provisions 116
F7. Other liabilities (current) 117
F8. Share capital and reserves 117
F9. Reconciliation of net profit after tax to net cash inflow from operations 118
F10. Employee share plans 119
F11. Auditor’s remuneration 120
G A C C O U N T I N G P O L I C I E S A N D C O R P O R AT E I N F O R M AT I O N  121

36

82 83
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes to the financial statements

Notes
NOTES to
TOthe
For the year
financial
THE
ended 30
statements
FINANCIAL
June 2017 STATEMENTS Notes
NOTES to
TOthe
For the year
financial
THE
ended
statements
FINANCIAL
30 June 2017 STATEMENTS
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
A Key income statement disclosures A2 Revenue
A
A1 Key income
Segment statement disclosures
information A2 Revenue 2017 2016
A1 Segment information
The Group's operating segments have been determined based on the internal management reporting structure and the 2017
$m 2016
$m
The Group's
nature operating
of products and segments have been
services provided by determined basedreflect
the Group. They on thethe
internal management
business reporting
level at which structure
financial and the
information is $m $m
nature of to
provided products and services
the executive provided
decision by the
makers, Group.
being They reflect
the Managing the business
Director levelExecutive
and Chief at which financial information
Officer and the Groupis Gaming 2,184.2 2,111.1
provided
Chief to the Officer,
Financial executivefor decision making
makers,regarding
being theresource
Managing Directorand
allocation andperformance
Chief Executive Officer and the Group
assessment. Gaming
Non-gaming and other 2,184.2
248.0 2,111.1
246.6
Chief Financial Officer, for decision making regarding resource allocation and performance assessment. Non-gaming and other 248.0 246.6
The Group has three reportable segments: Total gross revenue 2,432.2 2,357.7
The Group has three reportable segments: Total
Playergross
rebates revenue
and promotional allowances 2,432.2
(88.2) 2,357.7
(89.6)
Sydney Comprises The Star Sydney's casino operations, including hotels, apartment complex, restaurants Player rebates and promotional allowances (88.2) (89.6)
Sydney Comprises
and bars. The Star Sydney's casino operations, including hotels, apartment complex, restaurants 2,344.0 2,268.1
Gold Coast and bars. The Star Gold Coast's casino operations, including hotel, theatre, restaurants and bars.
Comprises 2,344.0 2,268.1
Gold Coast Comprises The Star Gold Coast's casino operations, including hotel, theatre, restaurants and bars. Revenue is up $75.9m or 3.3% on the prior comparable period (pcp) driven by growth in domestic gaming and
Brisbane Comprises Treasury's casino operations, including hotel, restaurants and bars. Revenue
the high winis up $75.9m
rate in theor 3.3% on theVIP
International prior comparable
Rebate business. period (pcp) driven by growth in domestic gaming and
Brisbane Comprises Treasury's casino operations, including hotel, restaurants and bars. the high
Revenue win rate in the International VIP Rebate business.
Sydney Gold Coast Brisbane Total Revenue is measured at the fair value of the consideration received or receivable from the sale of goods and services
Sydney Gold Coast Brisbane Total Revenue is measured
2017 $m $m $m $m in the ordinary courseatofthe fairGroup's
the value ofactivities.
the consideration
Revenuereceived or receivable
is recognised to the from thethat
extent saleitofisgoods and services
probable that the
2017 $m $m $m $m in the ordinary
economic course
benefits of the with
associated Group's activities. will
a transaction Revenue
flow toisthe
recognised
Group and to the
the amount
extent that it is probable
of revenue that the
and associated
Gross revenues - VIP a 547.9 66.3 25.4 639.6
Gross 547.9 66.3 25.4 639.6 economic benefits
costs incurred can associated
be reliably with a transaction
measured. Revenue flow to thenetGroup
willcomprises gaming andwin
theless
amount
playerof rebates
revenueand andpromotional
associated
Gross revenues
revenues -- VIP
a
domestic a 1,137.9 331.3 323.4 1,792.6 costs incurred
allowances, can as
as well be other
reliably measured.revenue
non-gaming Revenue from comprises
the hotels,net gaming win
restaurants andless
bars.player rebates and promotional
Gross revenues - domestic a 1,137.9 331.3 323.4 1,792.6 allowances, as well as other non-gaming revenue from the hotels, restaurants and bars.
Segment revenue (refer to note A2) 1,685.8 397.6 348.8 2,432.2 Customer loyalty programs
Segment revenue (refer to note A2) 1,685.8 397.6 348.8 2,432.2 Customer loyalty programs
The Group operates customer loyalty programs enabling customers to accumulate award credits for gaming and on-
Segment earnings before interest, tax and The Group operates customer
Segment earnings before interest, tax and 300.9 58.1 76.2 435.2 property spend. A portion of theloyalty
spend, programs
equal toenabling customers
the fair value of thetoaward
accumulate
credits award
earnedcredits for gaming
and reduced and on-
for expected
significant items property
significant items 300.9 58.1 76.2 435.2 breakage,spend. A portion
is treated of the spend,
as deferred revenue equal to the
(refer fair value
to note of the award
F7). Revenue fromcredits earned
the award and reduced
credits for expected
is recognised in the
Depreciation and amortisation 100.2 36.3 28.0 164.5 breakage, is treated
income statement whenas the
deferred
award revenue (referor to
is redeemed note F7). Revenue from the award credits is recognised in the
expires.
Depreciation and amortisation 100.2 36.3 28.0 164.5 income statement when the award is redeemed or expires.
Capital expenditure 180.0 209.1 30.5 419.6 A3 Expenses
Capital expenditure 180.0 209.1 30.5 419.6 A3 Expenses
Profit before income tax is stated after charging the following expenses and significant items:
Profit
Otherbefore
incomeincome tax is stated after charging the following expenses and significant items:
Sydney Gold Coast Brisbane Total Other income
2016 Sydney
$m Gold Coast
$m Brisbane
$m Total
$m
Net foreign exchange gain 1.1 0.8
2016 $m $m $m $m Net foreign exchange gain 1.1 0.8
Gross revenues - VIP a 555.1 39.9 1.3 596.3 Government taxes and levies (including gaming GST):
Gross 555.1 39.9 1.3 596.3 Government
New South taxes
Walesand levies (including gaming GST):
Gross revenues
revenues -- VIP
a
domestic a 1,101.7 321.1 338.6 1,761.4 369.4 350.0
Gross revenues - domestic a 1,101.7 321.1 338.6 1,761.4 New South Wales
Queensland 369.4
156.8 350.0
154.6
Segment revenue (refer to note A2) 1,656.8 361.0 339.9 2,357.7 Queensland 156.8 154.6
Segment revenue (refer to note A2) 1,656.8 361.0 339.9 2,357.7 526.2 504.6
Segment earnings before interest, tax and
Segment earnings before interest, tax and
significant items 200.7 49.1 75.2 325.0 526.2 504.6
200.7 49.1 75.2 325.0 Government taxes and levies is up $21.6m or 4.3% on the pcp in line with higher gaming revenues, as well as a
significant items Government taxes and levies is in
upSydney.
$21.6m or 4.3% on the pcp in line with higher gaming revenues, as well as a
Depreciation and amortisation 101.7 35.2 26.9 163.8 higher average gaming tax rate
Depreciation and amortisation 101.7 35.2 26.9 163.8 higher average gaming tax rate in Sydney.
Capital expenditure 150.2 132.4 23.6 306.2 Employment costs:
Capital expenditure 150.2 132.4 23.6 306.2 Employment costs:bonuses and other benefits
Salaries, wages, 559.8 551.9
Salaries, wages, bonuses
Defined contribution and other
plan expense benefits
(superannuation guarantee charges) 559.8
45.5 551.9
43.0
a Gross revenue is presented as the gross gaming win before player rebates and promotional allowances.
a Gross revenue is presented as the gross gaming win before player rebates and promotional allowances. Defined contribution plan expense (superannuation
Share based payment expense (refer to note F10) guarantee charges) 45.5
3.8 43.0
5.6
2017 2016 Share based payment expense (refer to note F10) 3.8 5.6
2017
$m 2016
$m 609.1 600.5
Reconciliation of reportable segment profit to profit before income tax $m $m 609.1 600.5
Reconciliation of reportable segment profit to profit before income tax Cost of inventories recognised as an expense during the year 85.7 81.8
Segment earnings before interest, tax and significant items 435.2 325.0 Cost of inventories recognised as an expense during the year 85.7 81.8
Segment earnings before interest,
Significant items (refer to note A7) tax and significant items 435.2
(12.8) 325.0- Movement in provision for impairment of trade receivables (refer to note B2) 18.7 23.1
Significant (12.8) - Movement in provision for impairment of trade receivables (refer to note B2) 18.7 23.1
Unallocateditems (refer to note A7)
items: 13.0 12.3
Unallocated items: Operating lease charges
- net finance costs (refer to note A5) (41.7) (45.8) Operating lease charges 13.0 12.3
-- net finance
share of netcosts (refer
loss of to noteand
associate A5) joint venture entities accounted for using (41.7) (45.8) Significant items (refer to note A7) 12.8 -
- share
the of net
equity loss of associate and joint venture entities accounted for using
method (0.7) - Significant items (refer to note A7) 12.8 -
the equity method (0.7) -
Profit before income tax (PBT) 380.0 279.2
Profit before income tax (PBT) 380.0 279.2

38 39
38 39
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
84 85
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes to the financial statements

Notes
NOTES to
TOthe
For the year
financial
THE
ended 30
statements
FINANCIAL
June 2017 STATEMENTS Notes
NOTES to
TOthe
For the year
financial
THE
ended
statements
FINANCIAL
30 June 2017 STATEMENTS
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
A4 Depreciation and amortisation A6 Dividends
A4 Depreciation and amortisation 2017 2016 A6 Dividends 2017 2016
2017 2016
$m $m Cents2017
per Cents2016
per
$m $m Cents per
share Cents per
share
Property, plant and equipment (refer to note B4) 137.1 135.6
Property, plant and equipment 137.1 135.6 share share
Intangible assets (refer to note (refer
B5) to note B4) 26.2 27.1 Dividends per share
Intangible assets (refer to note B5)
Other 26.2
1.2 27.1
1.1 Dividends per share
Interim dividend 7.5b 5.5
Other 1.2 1.1 Interim dividend 7.5 b 5.5
164.5 163.8 Final dividend 8.5 c 7.5a
164.5 163.8 Final dividend 8.5c 7.5a
Depreciation is calculated using a straight line method. The useful lives over which the assets are depreciated are as Total dividend 16.0 13.0
Depreciation
follows is calculated
(for further details ofusing a straight
the useful livesline method. The
of intangible assetsuseful
referlives overB5):
to note which the assets are depreciated are as Total dividend 16.0 13.0
A final dividend per share of 8.5 cents fully franked was declared, totalling 16.0 cents per share for the year, up
follows (for
Freehold andfurther detailsbuildings
leasehold of the useful lives of intangible assets yearsto note B5):
10 - 95refer A final dividend per share of 8.5 cents fully franked was declared, totalling 16.0 cents per share for the year, up
23.1% on the pcp and reflecting the improved performance and financial position of the Group.
Freehold
Leaseholdand leasehold buildings
improvements 104 -- 95
75 years
years 23.1% on the pcp and reflecting the improved performance and financial position of the Group.
4 2017 2016
Leasehold improvements
Plant and equipment 5 -- 75
20 years
years 2017 2016
5 $m $m
Plant and equipment
Software 3 -- 20
10 years
years $m $m
Software 3Until
- 10 expiry
years Dividends declared and paid during the year on ordinary shares
Licences Dividends declared and paid during the year
Licences Until expiry Final dividend paid during the year in respect of on
the ordinary shares
year ended 30 June 2016 a 61.9 49.5
Operating equipment (which includes uniforms, casino chips, kitchen utensils, crockery, cutlery and linen) is Final
Interim dividend paid during the year in respect of the half 30
dividend paid during the year in respect of the year ended June
year 201631
ended
a 61.9 49.5
Operating equipment
recognised (which expense
as a depreciation includesbased
uniforms, casino
on usage. Thechips,
periodkitchen
of usageutensils,
dependscrockery, cutleryof and
on the nature linen) is
the operating Interim
December dividend
2016 b paid during the year in respect of the half year ended 31 62.0 45.4
recognised and
equipment as avaries
depreciation
betweenexpense based on usage. The period of usage depends on the nature of the operating
1 to 3 years. December 2016 b 62.0 45.4
equipment
The residual and variesand
values between
useful1 lives
to 3 years.
are reviewed annually, and adjusted if appropriate, at each financial reporting 123.9 94.9
The residual values and useful lives are reviewed annually, and adjusted if appropriate, at each financial reporting 123.9 94.9
date.
date. a A final dividend of 7.5 cents per share fully franked for the year ended 30 June 2016 (30 June 2015: 6 cents) was declared on 25
a A final dividend
August 2016 andofpaid
7.5 cents
on 30 per share fully
September 2016franked fordeclared
(2015: the yearonended 30 June
11 August 2016
2015 (30
and June
paid on2015: 6 cents) was
16 September declared on 25
2015).
A5 Net finance costs August 2016 and paid on 30 September 2016
A5 Net finance costs b An interim dividend of 7.5 cents per share fully(2015:
frankeddeclared on 11
for the half August
year 2015
ended and paid on
31 December 16 September
2016 2015).
(31 December 2015: 5.5 cents)
Interest paid on borrowings 49.4 44.6 b An
wasinterim dividend
declared on 15 of 7.5 cents
February perand
2017 share fully
paid onfranked for2017
22 March the half yeardeclared
(2016: ended 31onDecember 2016
15 February (31and
2016 December
paid on 2015: 5.5 cents)
22 March
Interest paid on borrowings 49.4 44.6
Capitalised to property, plant and equipmenta (10.0) (1.7) was declared on 15 February 2017 and paid on 22 March 2017 (2016: declared on 15 February 2016 and paid on 22 March
2016).
Capitalised to property, plant and equipmenta
Borrowing costs (10.0)
3.3 (1.7)
4.2
2016).
2017 2016
Borrowing costs
Finance costs 3.3 4.2 2017
$m 2016
$m
42.7 47.1
Finance costs
Interest income 42.7
(1.0) 47.1
(1.3) $m $m
Interest income (1.0) (1.3) Dividends declared after balance date
Net finance costs recognised in the income statement 41.7 45.8 Dividends declared
Final dividend after
declared for balance
the year date
ended 30 June 2017 c 70.2 61.9
Net finance costs recognised in the income statement 41.7 45.8 Final dividend declared for the year ended 30 June 2017 c 70.2 61.9
a Borrowing costs of $10.0 million were capitalised during the year and are included in 'Additions' in note B4. The capitalisation
a Borrowing
rate coststoofthe
was equal $10.0 million
Group's were capitalised
weighted during
average cost the year and
of borrowings are included
applicable in Group's
to the 'Additions' in note B4.borrowings
outstanding The capitalisation
during the c Since the end of the financial year, the Directors have declared a final dividend of 8.5 cents per ordinary share (2016: 7.5 cents),
rate was equal to the Group's weighted average cost of borrowings applicable to the Group's outstanding borrowings during the
year. c Sincefranked.
fully the endThe
of the financialamount
aggregate year, the
is Directors
expected have
to be declared a final
paid on 26 dividend2017
September of 8.5
outcents per ordinary
of retained share
earnings (2016:
at 30 June7.5 cents),
2017, but
fullyrecognised
not franked. The
as aggregate
a liability atamount
the endisof
expected
the year.to be paid on 26 September 2017 out of retained earnings at 30 June 2017, but
year.
Net finance costs of $41.7 million were down 9.0% on the pcp as a result of higher capitalised interest partially not recognised as a liability at the end of the year.
Net finance Franking credit balance
offset by an costs of $41.7
increase million
in average were
debt down
year 9.0% on the pcp as a result of higher capitalised interest partially
on year. Franking
offset by an increase in average debt year on year. Amount ofcredit balance
franking credits available to shareholders 121.7 79.2
Amount of franking credits available to shareholders 121.7 79.2

A7 Significant items
A7 Significant items
Earnings before interest and tax (EBIT) is stated after charging the following significant items:
Earnings before interest and tax (EBIT) is stated after charging the following significant items:
Costs associated with the International VIP Rebate business a 12.8 -
Costs associated with the International VIP Rebate business a 12.8 -
Net significant items 12.8 -
Net significant items 12.8 -
a Costs relating to the unutilised aircraft, including unavoidable lease payments, maintenance and other costs.
a Costs relating to the unutilised aircraft, including unavoidable lease payments, maintenance and other costs.
Significant items are determined by management based on their nature and size. They are items of income or expense
Significant
which items individually
are, either are determined
or inby management
aggregate, based
material on their
to the Groupnature
or to and size. They
the relevant are items
business of income
segment and:or expense
which
− notare, either
in the individually
ordinary courseorofinbusiness
aggregate,
(for material thecost
example,tothe Group or to the relevant
of significant businessorsegment
reorganisations and: or
restructuring);
not in the ordinary course of business (for example, the cost of significant reorganisations or restructuring);
− part of the ordinary activities of the business but unusual due to their size and nature (for example, impairment
− or of
− part of
assets). the ordinary activities of the business but unusual due to their size and nature (for example, impairment of
assets).

40 41
40 41
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
86 87
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes
Notes to
to the
the financial
financial statements
statements Notes
Notes to
to the
the financial
financial statements
statements
NOTES
For
For the TOended
the year
year THE 30
ended FINANCIAL
30 June
June 2017
2017 STATEMENTS NOTES TOended
For the year THE 30
FINANCIAL
June 2017
For the year ended 30 June 2017
STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017
B Key Other receivables
B Key balance
balance sheet
sheet disclosures
disclosures Other receivablesare not past due or considered impaired. It is expected that these
Other receivables balances will be received as they
Assets
Assets Other receivables are not past due or considered impaired. It is expected that these balances will be received as they
fall due.
B1 fall due.
B1 Cash
Cash and
and cash
cash equivalents
equivalents The chart below compares the ageing of trade receivables and amounts considered impaired as at 30 June 2017 and
2017
2017 2016 The chart2016
below compares the ageing of trade receivables and amounts considered impaired as at 30 June 2017 and
2016 30 June respectively.
$m $m 30 June 2016 respectively.
$m $m
Cash on
on hand
hand and
and in
in banks
banks 107.7
107.7 103.4
103.4
Cash
Short term
Short term deposits,
deposits, maturing
maturing within
within 30
30 days
days 6.0
6.0 55.6
55.6
Trade receivables ageing profile
113.7
113.7 159.0
159.0
200.0
B2
B2 Trade
Trade and
and other
otherareceivables
receivables 180.0
Trade 176.6 123.2
Trade receivables
receivables a 176.6 123.2 160.0
Less provision for impairment
impairment (14.0)
(14.0) (12.8)
(12.8)
Less provision for 140.0
Net trade
trade receivables
receivables 120.0
Net 162.6
162.6 110.4
110.4 100.0
Other receivables 30.1 19.9

$m
Other receivables 30.1 19.9 80.0
192.7
192.7 130.3
130.3 60.0
40.0
a Includes patron cheques not deposited of $123.2 million (2016: $69.6 million).
a Includes patron cheques not deposited of $123.2 million (2016: $69.6 million). 20.0
Past
Past due
due not
not impaired
impaired receivables
receivables ofof $33.3
$33.3 million
million are
are consistent
consistent with
with the
the pcp.
pcp.
–
2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
(i)
(i) Provision for impairment reconciliation
Provision for impairment reconciliation Total trade Not yet due 30 days - 1 Year 1-3 Years 3+ Years
Balance (12.8) (9.4)
Balance at
at beginning
beginning ofof year
year (12.8) (9.4) receivables (0-30 days) (past due) (past due) (past due)
Provision (18.7) (23.1)
Provision for impairment recognised
for impairment recognised during
during the
the year
b
year b (18.7) (23.1) Considered impaired Not impaired
Less amounts
amounts written
written off
off as
as uncollectible
uncollectible 17.5
17.5 19.7
19.7
Less
Balance
Balance at
at end
end of
of year
year (14.0) (12.8)
(14.0) (12.8)
b These amounts are included in other expenses in the income statement (refer to note A3). Provision for impairment of trade receivables
b These amounts are included in other expenses in the income statement (refer to note A3). Provision forrecognises
impairment aof provision
trade receivables
The Group for impairment of trade receivables when there is objective evidence that an
Trade
Trade receivables
receivables are
are non-interest
non-interest bearing
bearing and
and are
are generally
generally on
on 30
30 day
day terms. The Group recognises a provision for impairment
terms. individual trade debt is impaired. Factors considered of trade
when receivables
determining when
if an there is exists
impairment objective evidence
include the agethat an
of the
individual trade debt experienced
debt, management's is impaired. Factors considered
judgement, and otherwhen determining
specific if antoimpairment
facts related the debt. exists include the age of the
(ii)
(ii) Ageing
Ageing of
of trade
trade and
and other
other receivables
receivables debt, management's experienced judgement, and other specific facts related to the debt.
30
30 days
days -- 1
1
0
0 -- 30
30 days
days year
year 1 1 -- 3
3 years
years 3 years
3 years +
+ Total
Total
Trade
Trade receivables
receivables $m $m $m $m $m
$m $m $m $m $m
2017
2017
Not 129.3 -- -- -- 129.3
Not yet
yet due
due 129.3 129.3
Past
Past due not
due not impaired
impaired -- 27.1
27.1 6.2
6.2 -- 33.3
33.3
Considered
Considered impaired
impaired -- 2.8
2.8 11.2
11.2 -- 14.0
14.0
129.3
129.3 29.9
29.9 17.4
17.4 -- 176.6
176.6
2016
2016
Not
Not yet
yet due
due 77.2
77.2 -- -- -- 77.2
77.2
Past
Past due
due not
not impaired
impaired -- 31.5
31.5 1.7
1.7 -- 33.2
33.2
Considered impaired
Considered impaired -- 11.5
11.5 1.3
1.3 -- 12.8
12.8
77.2
77.2 43.0
43.0 3.0
3.0 -- 123.2
123.2

42
42 43
43
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
88 89
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes
Notes to
to the
the financial
financial statements
statements Notes
Notes to
to the
the financial
financial statements
statements
NOTES
For
For the TOended
the year
year THE 30
ended FINANCIAL
30 June
June 2017
2017 STATEMENTS NOTES
For
For the TOended
the year
year THE 30
ended FINANCIAL
30 June
June 2017
2017 STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017

B3
B3 Derivative
Derivative financial
financial instruments
instruments B4
B4 Property,
Property, plant
plant and
and equipment
equipment
2017
2017 2016
2016
Freehold
Freehold
and
and
$m
$m $m
$m Freehold leasehold Leasehold Plant
Freehold leasehold Leasehold Plant and
and
land
land buildings
buildings improvements
improvements equipment
equipment Total
Total
Current
Current assets
assets Note $m $m $m $m $m
Cross
Cross currency
currency swaps
swaps 47.0
47.0 12.6
12.6 Note $m $m $m $m $m
Forward 1.4 1.9 2017
Forward currency
currency contracts
contracts 1.4 1.9 2017
Cost
Cost
48.4 14.5 Opening 81.5 1,794.7 279.7 922.8 3,078.7
48.4 14.5 Opening balance
balance at
at beginning
beginning of
of the
the year
year 81.5 1,794.7 279.7 922.8 3,078.7
Non Additions -- 267.8 6.8 102.5 377.1
Non current
current assets
assets Additions 267.8 6.8 102.5 377.1
Cross
Cross currency
currency swaps
swaps 150.0
150.0 239.8
239.8
Disposals
Disposals -- (9.3)
(9.3) (0.3)
(0.3) (30.5)
(30.5) (40.1)
(40.1)
a -- (5.3) (0.1) 6.9 1.5
Forward currency
Forward currency contracts
contracts 0.2
0.2 2.2
2.2
Reclassification
Reclassification // transfer
transfer a (5.3) (0.1) 6.9 1.5
Closing b 81.5 2,047.9 286.1 1,001.7 3,417.2
Interest rate swaps
Interest rate swaps 0.9
0.9 -- Closing balance at end of the
balance at end of the year
year b 81.5 2,047.9 286.1 1,001.7 3,417.2

151.1 242.0 Accumulated

Accumulated depreciation
depreciation
151.1 242.0
Opening
Opening balance
balance at
at beginning
beginning of
of the
the year
year -- 306.7
306.7 88.6
88.6 562.5
562.5 957.8
957.8
Current
Current liabilities
liabilities A4
Depreciation
Depreciation expense
expense A4 -- 43.6
43.6 10.4
10.4 83.1
83.1 137.1
137.1
Interest
Interest rate
rate swaps
swaps 18.4
18.4 17.8
17.8 Disposals
Disposals -- (8.7)
(8.7) (0.3)
(0.3) (29.2)
(29.2) (38.2)
(38.2)
18.4
18.4 17.8
17.8 Closing
Closing balance
balance at
at end
end of
of the
the year
year -- 341.6
341.6 98.7
98.7 616.4
616.4 1,056.7
1,056.7
Non
Non current
current liabilities
liabilities Carrying
Carrying Amount
Amount
Interest
Interest rate
rate swaps
swaps 37.3
37.3 58.0
58.0 Opening
Opening balance
balance at
at beginning
beginning of
of the
the year
year 81.5
81.5 1,488.0
1,488.0 191.1
191.1 360.3
360.3 2,120.9
2,120.9
37.3
37.3 58.0
58.0
Closing
Closing balance
balance at
at end
end of
of the
the year
year 81.5
81.5 1,706.3
1,706.3 187.4
187.4 385.3
385.3 2,360.5
2,360.5
Net 143.8 180.7
Net financial
financial assets
assets 143.8 180.7 2016
2016
Cost
Cost
Net
Net derivative
derivative assets
assets down
down $36.9
$36.9 million
million due
due to
to a
a decrease
decrease in
in the
the value
value of
of the
the cross
cross currency
currency swap
swap used
used to
to Opening
Opening balance
balance at
at beginning
beginning of
of the
the year 81.5 1,622.6 275.1 845.2 2,824.4
hedge
hedge the
the USPP
USPP loan
loan as
as a
a result
result of
of an
an appreciation
appreciation in
in the
the AUD
AUD vs
vs USD
USD exchange
exchange rate.
rate.
year 81.5 1,622.6 275.1 845.2 2,824.4
Additions
Additions -- 189.6
189.6 5.9
5.9 85.5
85.5 281.0
281.0
Valuation
Valuation of
of derivatives
derivatives and
and other
other financial
financial instruments
instruments Disposals
Disposals -- (6.3)
(6.3) -- (21.8)
(21.8) (28.1)
(28.1)
The
The valuation of derivatives and financial instruments
valuation of derivatives and financial instruments is
is based
based on
on market
market conditions
conditions at the balance
at the balance sheet
sheet date.
date. The
The
value Reclassification
Reclassification // transfer -- (11.2) (1.3) 13.9 1.4
value of the instrument fluctuates on a daily basis and the actual amounts
of the instrument fluctuates on a daily basis and the actual amounts realised
realised may
may differ materially
differ materially from
from their
their transfer (11.2) (1.3) 13.9 1.4
value
value at the balance
at the balance sheet
sheet date.
date. Closing
Closing balance
balance at
at end
end of
of the
the year
year 81.5
81.5 1,794.7
1,794.7 279.7
279.7 922.8
922.8 3,078.7
3,078.7
Refer
Refer to
to note
note E2
E2 for
for additional
additional financial
financial instruments
instruments disclosure.
disclosure. Accumulated
Accumulated depreciation
depreciation
Opening
Opening balance
balance at
at beginning
beginning of
of the
the year
year -- 264.5
264.5 79.2
79.2 506.5
506.5 850.2
850.2
Depreciation A4
Depreciation expense
expense A4 -- 48.5
48.5 9.4
9.4 77.7
77.7 135.6
135.6
Disposals
Disposals -- (6.3)
(6.3) -- (21.7)
(21.7) (28.0)
(28.0)
Closing
Closing balance
balance at
at end
end of
of the
the year
year -- 306.7 88.6 562.5 957.8
306.7 88.6 562.5 957.8
Carrying
Carrying Amount
Amount
Opening
Opening balance
balance at
at beginning
beginning of
of the
the year
year 81.5
81.5 1,358.1
1,358.1 195.9
195.9 338.7
338.7 1,974.2
1,974.2
Closing
Closing balance
balance at
at end
end of
of the
the year
year 81.5
81.5 1,488.0
1,488.0 191.1
191.1 360.3
360.3 2,120.9
2,120.9
a Includes reclassifications of $1.5 million
a Includes reclassifications of $1.5 million (2016:
(2016: $1.4
$1.4 million)
million) from
from intangibles
intangibles to
to plant
plant and
and equipment
equipment (refer
(refer to note B5).
to note B5).
2017
2017 2016
2016
$m
$m $m
$m
b
b Includes capital
Includes capital works
works in
in progress
progress of:
of:
Buildings - at cost
Buildings - at cost 33.0
33.0 117.3
117.3
Leasehold improvements
Leasehold improvements -- at
at cost
cost 3.8
3.8 1.5
1.5
Plant and
Plant and equipment
equipment -- at
at cost
cost 47.8
47.8 40.7
40.7
Total capital
Total capital works
works in
in progress
progress 84.6 159.5
84.6 159.5
Additions
Additions of
of $377.1
$377.1 million,
million, up
up 34.2%
34.2% on
on the
the pcp
pcp consisting
consisting predominantly
predominantly of of redevelopment
redevelopment works
works in
in the
the Gold
Gold
Coast and Sydney properties. For details on capital activities refer to section 2.6 of the Directors' Report.
Coast and Sydney properties. For details on capital activities refer to section 2.6 of the Directors' Report.

44
44 45
45

The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities
90 91
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes to the financial statements

Notes
NOTES to
TOthe
For the year
financial
THE
ended 30
statements
FINANCIAL
June 2017 STATEMENTS Notes
NOTES to
TOthe
For the year
financial
THE
ended
statements
FINANCIAL
30 June 2017 STATEMENTS
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
Property, plant and equipment is comprised of the following assets: Intangible asset additions relate predominantly to software as the Group progresses its strategic priority to
Property,
− plant
Freehold landand- Gold
equipment
Coast is comprised of the following assets:
property; Intangible
maximise valueasset from
additions relate predominantly
technology, including further to software
enhancing as gaming
the Group andprogresses its strategic
loyalty experience and priority
deliveringto
Freehold and
− Freehold
− land leasehold
- Gold Coast property;
buildings - Brisbane, Gold Coast and Sydney properties; maximise value
integrated and new from technology, including further enhancing gaming and loyalty experience and delivering
IT platforms.
integrated and new IT platforms.
− Freehold
− Leaseholdand leasehold buildings
improvements - Brisbane,
- Brisbane property;Gold
and Coast and Sydney properties; Asset useful lives and residual values
Leasehold improvements - Brisbane property;
− Plant and equipment - operational and other equipment.
− and Asset useful
Intangible lives are
assets andamortised
residual values
using the straight line method as follows:
− Plant and equipment - operational
Asset useful lives and residual values and other equipment. Intangible
− assetscasino
The Sydney are amortised
licence isusing the straight
amortised from its line method
date as follows:
of issue until expiry in 2093.
Asset
For theuseful lives and
accounting residual
policy values
on depreciation and useful lives of property, plant and equipment refer to note A4. − The Brisbane casino licence is amortised over the remaining until
− The Sydney casino licence is amortised from its date of issue expiry
life of in 2093.
the lease to which the licence is linked, which
For the accounting policy
Capital works in progress on depreciation and useful lives of property, plant and equipment refer to note A4. The Brisbane
− expires casino licence is amortised over the remaining
in 2070. The Group will continue to amortise the casino licence over life of the lease to which the licence
its current termis up
linked,
untilwhich
it is
Capital works in progress
Major ongoing projects include the refurbishment at the Sydney property and the expansion and refurbishment of the expires in 2070. The Group will continue to amortise the casino licence over
surrendered, following the opening of the integrated resort at Queen's Wharf Brisbane (QWB) which is expectedits current term up until it in
is
MajorCoast
Gold ongoing projects
property. include
Minor the refurbishment
refurbishment at theundertaken
is also being Sydney property and the expansion
at the Brisbane property. and refurbishment of the surrendered, following the opening of the integrated resort at Queen's Wharf Brisbane (QWB) which is expected in
2022.
Gold Coast property. Minor refurbishment is also being undertaken at the Brisbane property.
Impairment 2022.Sydney casino concessions granted by the New South Wales government include effective casino exclusivity
− The
Impairment
Refer to note B6 for details of the accounting policy and key assumptions included in the impairment calculation. The product
− and Sydney concessions
casino concessionsin New granted
South Walesby thewhichNew South Wales government
are amortised include
over the period effective casino
of expected exclusivity
benefits, which is
Refer to note B6 for details of the accounting policy and key assumptions included in the impairment calculation. and product concessions
until 2019 and 2093 respectively. in New South Wales which are amortised over the period of expected benefits, which is
B5 Intangible assets until 2019 and 2093 respectively.
− Software is amortised over useful lives of 3 to 10 years.
B5 Intangible assets Sydney and Software is amortised
− Other
− assets include overthe useful lives ofto3 to
contribution the10construction
years. costs of the state government owned Gold Coast
Sydney and
Brisbane Sydney Other assets
Brisbane
casino Sydney
casino
− Convention andinclude
Exhibitionthe Centre.
contribution to the Gold
The Group's construction costs isofderiving
Coast casino the state government
future owned
benefits from Gold Coast
the contribution,
Goodwill casino concessions
licences casino Software a Other Total Convention
which andamortised
is being ExhibitionoverCentre. The of
a period Group's
50 years. Gold Coast casino is deriving future benefits from the contribution,
Goodwill licences concessions which is being amortised over a period of 50 years.
$m Software Other Total
a
Note $m $m $m $m $m Goodwill and impairment testing
2017 Note $m $m $m $m $m $m Goodwill and impairment
is assessed for testing
impairment on an annual basis and is carried at cost less accumulated impairment losses.
2017
Cost Goodwill
Refer to is assessed
note B6 for fortheimpairment
accountingonpolicy
an annual
on asset basisimpairment
and is carriedand at cost less
details accumulated
of key assumptions impairment
included losses.
in the
Cost
Opening balance at beginning of the year 1,442.2 294.7 100.0 162.4 27.2 2,026.5 Refer to note
impairment testing for the accounting policy on asset impairment and details of key assumptions included in the
B6 calculation.
Opening balance at beginning of the year 1,442.2- 294.7- 100.0- 162.4
42.5 27.2- 2,026.5
42.5
impairment testing calculation.
Additions a
B6 Impairment testing and goodwill
Additions a
Disposals -- -- -- 42.5
(7.7) -- 42.5
(7.7) B6 Impairment testing
Goodwill acquired and goodwill
through business combinations has been allocated to the applicable cash generating unit for
Disposals
Reclassification / transfer b -- -- -- (7.7)
(1.5) -- (7.7)
(1.5) Goodwill
impairment acquired
testing. through
Each cash business
generating combinations
unit representshas abeen allocated
business to the
operation applicable
of the Group. cash generating unit for
Reclassification / transfer b - - - (1.5) - (1.5) impairment testing. Each cash generating unit represents a business operation of the Group.
Closing balance at end of the year 1,442.2 294.7 100.0 195.7 27.2 2,059.8 Carrying amount of goodwill allocated to each cash generating unit
Closing balance at end of the year 1,442.2 294.7 100.0 195.7 27.2 2,059.8 Carrying amount of goodwill allocated to each cash generating unit Total carrying
Accumulated amortisation Total carrying
Accumulated amortisation
Cash generating unit Sydney Gold Coast Brisbane amount
Opening balance at beginning of the year - 62.9 20.2 99.5 7.2 189.8 Cash generating unit Sydney Gold Coast Brisbane amount
Opening balance at beginning of the year A4 -- 62.9 20.2 99.5 7.2 189.8 (Reportable segment) $m $m $m $m
Amortisation expense 3.2 2.9 17.1 3.0 26.2 (Reportable segment) $m $m $m $m
Amortisation
Disposals expense A4 -- 3.2- 2.9- 17.1
(8.0) 3.0- 26.2
(8.0) 2017 1,013.5 165.5 263.2 1,442.2
Disposals - - - (8.0) - (8.0) 2017 1,013.5 165.5 263.2 1,442.2
Closing balance at end of the year - 66.1 23.1 108.6 10.2 208.0 2016 1,013.5 165.5 263.2 1,442.2
Closing balance at end of the year - 66.1 23.1 108.6 10.2 208.0 2016 1,013.5 165.5 263.2 1,442.2
Carrying Amount
The recoverable amount of each of the three cash generating units at year end (Sydney, Gold Coast and Brisbane) is
Carrying Amountat beginning of the year
Opening balance 1,442.2 231.8 79.8 62.9 20.0 1,836.7 The recoverable
determined basedamount
on 'fairofvalue
eachlessof the three
costs of cash generating
disposal', which units at year end
is calculated using (Sydney, Gold Coast
the discounted cashand Brisbane)
flow approach. is
Opening
Closing balance atatend
balance beginning of the year 1,442.2 231.8 79.8 62.9 20.0 1,836.7 determined based on 'fair
of the year 1,442.2 228.6 76.9 87.1 17.0 1,851.8 This approach utilises cashvalue less coststhat
flow forecasts of disposal',
represent which is calculated
a market using
participant's viewthe of discounted
the future cashcashflows
flow that
approach.
would
Closing balance at end of the year 1,442.2 228.6 76.9 87.1 17.0 1,851.8 This approach
arise utilisesand
from operating cash flow forecasts
developing that represent
the Group's assets. a market
These cashparticipant's
flows are view of thebased
principally future upon
cash flows
Boardthat would
approved
2016
2016 arise
businessfromplans
operating
for aand developing
five-year period,thetogether
Group's with
assets. These
longer termcash flows areand
projections principally
approvedbased upon
capital Board approved
investment plans,
Cost
Cost business
extrapolated plans for an
using a five-year period, growth
implied terminal togetherratewith
of longer term projections
2.5% (2016: 2.5%). These andcash approved capital
flows are theninvestment
discounted plans,
using
Opening balance at beginning of the year 1,442.2 294.7 100.0 139.4 27.2 2,003.5
Opening 1,442.2- 294.7- 100.0- 139.4 27.2- 2,003.5 extrapolated
a relevant long using
termanpost-tax
implieddiscount
terminalrate growth rate to
specific of each
2.5% cash
(2016: 2.5%). These
generating cash flows
unit, ranging are then
between 8.9%discounted using
to 9.7% (2016:
Additionsbalance at beginning of the year 25.2 25.2 a relevant long The
termpre-tax
post-tax discount raterange
specific to each12.7%
cash generating unit, ranging between
9.0% to 9.5%). discount rates between to 13.8% (2016: 12.9% to 13.6%).8.9% to 9.7% (2016:
Additions
Disposals -- -- -- 25.2
(0.8) -- 25.2
(0.8) 9.0% to 9.5%). The pre-tax discount rates range between 12.7% to 13.8% (2016: 12.9% to 13.6%).
Disposals
Reclassification / transfer -- -- -- (0.8)
(1.4) -- (0.8)
(1.4)
No impairment was recognised in any of the cash generating units at 30 June 2017 (2016: nil). The
No impairment
performance wasGroup
of the recognised
was driven in any of theincash
by growth generating
the domestic unitsbusiness
gaming at 30 June (+1.7%)2017 and(2016:
a highnil). The
win rate
Reclassification / transfer - - - (1.4) - (1.4)
Closing balance at end of the year 1,442.2 294.7 100.0 162.4 27.2 2,026.5 performance
in the Internationalof the VIP
Group was Business
Rebate driven by(IRB) growthwithin revenue
the domestic gaming business (+1.7%) and a high win rate
up 7.3%.
Closing balance at end of the year 1,442.2 294.7 100.0 162.4 27.2 2,026.5 in the International VIP Rebate Business (IRB) with revenue up 7.3%.
Accumulated amortisation Key assumptions
Accumulated
Opening amortisation
balance at beginning of the year - 59.7 17.4 82.2 4.2 163.5 Key
The assumptions
fair value measurement is valued using level 3 valuation techniques (refer to note E2(vi) for details of the levels).
Opening balance
Amortisation at beginning of the year A4
expense -- 59.7
3.2 17.4
2.8 82.2
18.1 4.2
3.0 163.5
27.1 The key
fair value measurement
assumptions on which is valued
management using level
based 3 its
valuation techniques
cash flow (refer
projections whento note E2(vi) for
determining details
'fair valueofless
thecosts
levels).
of
Amortisation
Disposals expense A4 -- 3.2- 2.8- 18.1
(0.8) 3.0- 27.1
(0.8) The key assumptions
disposal' are as follows: on which management based its cash flow projections when determining 'fair value less costs of
Disposals - - - (0.8) - (0.8) disposal' are as follows:
Closing balance at end of the year - 62.9 20.2 99.5 7.2 189.8 i. Cash flow forecasts
Closing balance at end of the year - 62.9 20.2 99.5 7.2 189.8 i. Cash
The cash flow forecasts
flow forecasts are based upon Board approved business plans for a five-year period, together with longer
Carrying Amount The cash flow forecasts are based upon Board approved business
term projections and approved capital investment plans for each cashplans for a five-year
generating unit. period, together with longer
Carrying Amount
Opening balance at beginning of the year 1,442.2 235.0 82.6 57.2 23.0 1,840.0 term projections and approved capital investment plans for each cash generating unit.
Opening balanceatatend
Closing balance beginning of the year
of the year 1,442.2 235.0
231.8 82.6
79.8 57.2
62.9 23.0
20.0 1,840.0
1,836.7 ii. Terminal value
Closing balance at end of the year 1,442.2 231.8 79.8 62.9 20.0 1,836.7 ii. Terminal
The terminalvaluegrowth rate used is in line with the forecast long term underlying growth rate in the Consumer Price Index
a Includes capital works in progress of $24.5 million (2016: $18.1 million). The terminal growth rate used is in line with the forecast long term underlying growth rate in the Consumer Price Index
(CPI).
a
b Includes capital works in progress
reclassifications of $24.5
of $1.5 million million
(2016: (2016:
$1.4 $18.1
million) million). plant and equipment (refer to note B4).
to property, (CPI).
b Includes reclassifications of $1.5 million (2016: $1.4 million) to property, plant and equipment (refer to note B4).

46 47
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The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
92 93
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes to the financial statements

Notes to Notes to the financial statements
NOTES TOthe
For the year
financial
THE
ended 30
statements
FINANCIAL
June 2017 STATEMENTS NOTES TOended
For the year THE FINANCIAL
30 June 2017 STATEMENTS
For the year ended 30 June 2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017
iii. Discount rates Liabilities
iii. Discount
Discount rates
rates applied are based on the post tax weighted average cost of capital applicable to the relevant cash Liabilities
Discount rates
generating unit. applied are based on the post tax weighted average cost of capital applicable to the relevant cash B7 Interest bearing liabilities
B7 Interest bearing liabilities
generating unit. 2017 2016
iv. Regulatory changes 2017 2016
iv. Regulatory changes
Queensland $m $m
$m $m
Queensland
Upon opening of the integrated resort in 2022, the existing Brisbane casino will cease to operate and the Group will act Current
Upon
as theopening
operatorofofthe theintegrated
QWB casino. resort in 2022, the existing Brisbane casino will cease to operate and the Group will act Current
Private placement - US dollar (ii) 130.0 -
as the operator of the QWB casino. Private placement - US dollar (ii) 130.0 -
The Group currently holds a perpetual casino licence in Queensland that is attached to the lease of the current 130.0 -
The Groupsite
Brisbane currently holds ain perpetual
that expires 2070. Upon casino licence
opening of inthe
Queensland
integrated that is attached
resort, the Group's to the leaselicence
casino of the current
will be 130.0 -
Brisbane siteand
surrendered that expires inBrisbane
Destination 2070. Upon opening
Consortium of the
(DBC) will integrated
be grantedresort,
a casino thelicence
Group's forcasino
99 years licence will be
including an Non current
surrendered
exclusivity periodand Destination
of 25 years. Brisbane Consortium (DBC) will be granted a casino licence for 99 years including an Non current
Bank loans - unsecured (net of unamortised borrowing costs) (i) 446.9 196.2
exclusivity Bank loans - unsecured (net of unamortised borrowing costs) (i) 446.9 196.2
The Group period of 25 years.
will surrender the Brisbane casino licence in exchange for the right to operate the new QWB casino.
The Group will surrender the Brisbane casino licence in exchange for the right to operate the new QWB casino. Private placement - US dollar (ii) 468.1 617.3
New South Wales Private placement - US dollar (ii) 468.1 617.3
New8South
On WalesLiquor and Gaming NSW issued a restricted gaming licence to Crown Resorts Limited (Crown) to
July 2014, 915.0 813.5
On 8 Julya 2014,
operate Liquor
restricted and Gaming
gaming facility NSW issued a restricted
at Barangaroo South, Crown gamingSydney
licence Hotel
to Crown Resorts
Resort (Crown Limited (Crown)
Sydney) fromto 915.0 813.5
operate a 2019
November restricted gaming
onwards. On 28facility
June at Barangaroo
2016, South, Crown
Crown announced Sydney Hotel
that conditional planning Resort (Crown
approval had Sydney)
been receivedfrom The Group has undrawn bank facilities of $200.5 million at year end and an average drawn debt maturity of 2.3
The Group has undrawn bank facilities of $200.5 million at year end and an average drawn debt maturity of 2.3
years.
November
from the NSW2019Planning
onwards.Assessment
On 28 June Commission,
2016, Crown and announced
that Crownthat conditional
is expectingplanning approval
to complete had beenand
construction received
open years.
from the
Crown NSW in
Sydney Planning
2021. TheAssessment
expected Commission,
impact of Crown andSydney
that Crown is expecting
has been taken into to complete
considerationconstruction and open
in determining the Net debt was $787.5 million, up 66.2% on the pcp with gearing levels increased to 1.3x at 30 June 2017
Crown Sydney
recoverable in 2021.
amount The expected
of Sydney's impact of Crown
cash generating unit at Sydney
30 Junehas 2017.been
As taken
furtherinto consideration
details of the finalinscopedetermining the
and timing Net debt was
compared to 1.0x$787.5
at 30million, up 66.2% on the pcp with gearing levels increased to 1.3x at 30 June 2017
June 2016.
recoverable
of the proposed amountgamingof Sydney's cash generating
facility become unit at 30 June
known, management 2017. Astofurther
will continue considerdetails of the final
the impact that scope
this may and timing
have on compared to 1.0x at 30 June 2016.
of the
the proposed
cash generatinggaming facility
unit's become
carrying value.known, management will continue to consider the impact that this may have on Refer also to note C3 Subsequent events.
Refer also to note C3 Subsequent events.
the cash generating unit's carrying value. Refer to note F8 (iii) for Capital management disclosures and the calculation of the gearing ratio.
v. Sensitivities Refer to note F8 (iii) for Capital management disclosures and the calculation of the gearing ratio.
v.
The Sensitivities
key estimates and assumptions used to determine the 'fair value less costs of disposal' of a cash generating unit
(i) Bank loans - unsecured (net of unamortised borrowing costs)
The based
are key estimates and assumptions
on management's currentused to determine
expectations theconsidering
after 'fair value less
pastcosts of disposal'
experience, futureof ainvestment
cash generating unit
plans and (i) Bank loans - unsecured (net of unamortised borrowing costs)
are based
external on management's
information. They are current
considered expectations after considering
to be reasonably achievable, past experience,
however, future
significant investment
changes in any plans and
of these Syndicated revolving facility
Syndicated revolving facility
external
key information.
estimates, They are
assumptions consideredenvironments
or regulatory to be reasonably achievable,
may result in a cashhowever, significant
generating changesvalue
unit's carrying in any of these
exceeding The Group has drawn down $250.0 million of the syndicated revolving facility (SFA) and $49.5 million of the syndicated
keyrecoverable
its estimates, assumptions
value, requiring or regulatory
an impairment environments
charge to may result in a cash generating unit's carrying value exceeding
be recognised. The Group
revolving has drawn
facility (SFB).down $250.0 million of the syndicated revolving facility (SFA) and $49.5 million of the syndicated
its recoverable value, requiring an impairment charge to be recognised. revolving facility (SFB).
For the Gold Coast, management considers that a 3.6 percentage point decline (2016: 4.0 percentage point decline) in
For the Gold Coast,
the compound averagemanagement
growth rateconsiders that a 3.6
is a reasonable percentage
possible change point
thatdecline (2016:
could give rise4.0 percentage
to an impairment. point decline) in 2017 Facility amount Unutilised at 30 June
the compound average growth rate is a reasonable possible change that could give rise to an impairment. 2017 Facility amount Unutilised at 30 June
For the Sydney property, the impact of Crown Sydney on the projected earnings and cash generating unit's carrying Type $m $m Maturity date
For thehas
value Sydney
been property,
assessed,thetaking
impactintoof consideration
Crown Sydneythe on expected
the projected earnings
increase and cash generating
in competition as well as unit's carrying
the expected Type $m $m Maturity date
Syndicated revolving facility - tranche A 250.0 - July 2018
value hasinbeen
increase marketassessed,
size. Ataking into consideration
reasonably possible change the expected
in any of increase in competition
the assumptions usedasdoes well not
as the expected
result in an Syndicated revolving facility - tranche A 250.0 - July 2018
increase in charge
impairment marketatsize. A reasonably
30 June 2017, however possible change inwill
management any of the toassumptions
continue monitor the used does not
assumptions withresult in an
regards to Syndicated revolving facility - tranche B 250.0 200.5 July 2019
Syndicated revolving facility - tranche B 250.0 200.5 July 2019
impairment
the expectedchargeimpactatof30 Crown 2017, however
JuneSydney on Sydney's management will continue to monitor the assumptions with regards to
carrying value. 500.0 200.5
the expected impact of Crown Sydney on Sydney's carrying value. 500.0 200.5
Impairment of assets
Impairment
Goodwill andof assets life intangible assets are tested for impairment at least annually. Property, plant and equipment,
indefinite
2016 Facility amount Unutilised at 30 June
Goodwill
other and indefinite
intangible assets life
andintangible assets assets
other financial are tested
are for impairment
considered foratimpairment
least annually. Property,
if there plant and
is a reason equipment,
to believe that 2016 Facility amount Unutilised at 30 June
other intangible
impairment may assets and other
be necessary. financial
Factors assets
taken into are consideredinforreaching
consideration impairmentsuchif athere is a reason
decision include tothebelieve that
economic Type $m $m Maturity date
Type $m $m Maturity date
impairment
viability of the mayassetbe itself
necessary.
and whereFactors
it is ataken into consideration
component in reaching
of a larger economic such
entity, theaviability
decision include
of the the economic
unit itself. Syndicated revolving facility - tranche A 250.0 200.0 July 2018
viability of the asset itself and where it is a component of a larger economic entity, the viability of the unit itself. Syndicated revolving facility - tranche A 250.0 200.0 July 2018
Syndicated revolving facility - tranche B 250.0 250.0 July 2019
Syndicated revolving facility - tranche B 250.0 250.0 July 2019
500.0 450.0
500.0 450.0
Interest is variable, linked to BBSY (Bank Bill Swap Bid Rate), plus a margin tiered against the reported gearing ratio at
Interest
the is variable,
end of linked
certain test to BBSY (Bank Bill Swap Bid Rate), plus a margin tiered against the reported gearing ratio at
dates.
the end of certain test dates.

48 49
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The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
94 95
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes to the financial statements

Notes
NOTES to
TOthe
For the year
financial
THE
ended 30
statements
FINANCIAL
June 2017 STATEMENTS Notes
NOTES to
TOthe
For the year
financial
THE
ended
statements
FINANCIAL
30 June 2017 STATEMENTS
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
Working capital facility C Commitments, contingencies and subsequent events
Working
On capital
31 May facility
2017, the Group rolled over its working capital facility. This working capital facility has been executed on C Commitments
C1 Commitments, contingencies and subsequent events
On 31 May
the same 2017,
terms andthe Group rolled
conditions over
as the its working
existing capital
syndicated facility. facility
revolving This working capital facility has been executed on
agreement. C1 Commitments
(i) Operating lease commitments a
the same terms and conditions as the existing syndicated revolving facility agreement. (i) Operating lease commitments a 2017 2016
2017/2016 Facility amount Unutilised at 30 June 2017
$m 2016
$m
2017/2016
Type Facility amount
$m Unutilised at 30 June $m Maturity date $m $m
Type $m
150.0 $m- Maturity date
January 2019 Not later than one year 14.3 13.6
Working capital facility
Not later than one year
Later than one year but not later than five years 14.3
11.4 13.6
19.9
Working capital facility
Working capital facility 150.0
150.0 -
- January 2019
January 2018
Later than one year
Later than five yearsbut not later than five years 11.4
79.1 19.9
80.6
Working capital facility 150.0 - January 2018
Interest is variable, linked to BBSY, plus a margin tiered against the reported gearing ratio at the end of certain test Later than five years 79.1 80.6
Interest
dates. is variable, linked to BBSY, plus a margin tiered against the reported gearing ratio at the end of certain test 104.8 114.1
dates. 104.8
a The Group leases property (including Sydney and Brisbane property leases) under operating leases expiring between 1 to 114.1
76
(ii) US Private Placement (USPP)
a The Group
years. leases
Leases property
generally (including
provide Sydney
the Group withand Brisbane
a right property
of renewal leases)
at which under
time operating
all terms leases expiring
are renegotiated. between
Lease 1 to 76
payments
(ii) US
The Private
Group's Placement
USPP (USPP)
borrowings have not changed during the year, and are summarised below. years. Leases
comprise a basegenerally
amountprovide
plus anthe Group with
incremental a right of rental.
contingent renewal at which time
Contingent all terms
rentals are renegotiated.
are based Lease payments
on either movements in the CPI or
The Group's USPP borrowings have not changed during the year, and are summarised below. comprise
are a to
subject base amount
market rateplus an incremental
review. contingent
Operating lease rental. Contingent
commitments rentals
also include are basedinon
commitments eitherto
relation movements
the leasinginofthe CPI or
aircraft.
2017/2016 are subject to market rateb review. Operating lease commitments also include commitments in relation to the leasing of aircraft.
2017/2016 (ii) Other commitments
Type $m USD $m (AUD)* Maturity date (ii) Other commitments b
Not later than one year 197.5 238.2
Type $m USD $m (AUD)* Maturity date
Series A 100.0 94.0 June 2018 Not later than one year
Later than one year but not later than five years 197.5
4.2 238.2
40.7
Series
Series BA 100.0
360.0 94.0
336.0 June
June 2018
2021 Later than
than five
one years
year but not later than five years 4.2- 40.7-
Later
Series B 360.0 336.0 June 2021 Later than five years - -
460.0 430.0 201.7 278.9
460.0 430.0 201.7 278.9
* The $430.0 million USPP borrowings are stated in the table above at the AUD amount repayable under cross currency swaps at
maturity. Interest
* The $430.0 is variable,
million linked to BBSW
USPP borrowings (BankinBill
are stated theSwap
tableRate),
aboveand a defined
at the gearingrepayable
AUD amount ratio at the end of
under certain
cross test dates.
currency swapsThe
at b Other commitments as at 30 June 2017 mainly include capital construction and related costs in connection with the Gold Coast
$460.0
maturity.million USD
Interest translates
is variable, to $598.1m
linked to BBSWAUD at 30
(Bank BillJune
Swap2017 of and
Rate), which $130.0 gearing
a defined million isratio
disclosed as aofcurrent
at the end certaininterest bearing
test dates. The b Other commitments
refurbishment as at 30 June in
and redevelopment 2017 mainly include capital construction and related costs in connection with the Gold Coast
Sydney.
liability.
$460.0 million USD translates to $598.1m AUD at 30 June 2017 of which $130.0 million is disclosed as a current interest bearing refurbishment and redevelopment in Sydney.
liability. The Group will invest approximately $1 billion into Destination Brisbane Consortium to fund the construction of the
All of the above borrowings are subject to financial undertakings as to gearing and interest cover. The GroupResort
Integrated will invest approximately
(expected to open in$1 billion into Destination Brisbane Consortium to fund the construction of the
2022).
All of the above borrowings are subject to financial undertakings as to gearing and interest cover. Integrated Resort (expected to open in 2022).
Fair value disclosures Commitments include operating lease commitments for the Sydney and Brisbane properties, as well as capital
Fair value
Details disclosures
of the fair value of the Group's interest bearing liabilities are set out in note E2. Commitments in
commitments include operating
relation lease commitments
to the redevelopment of the for
GoldtheCoast
Sydney
andand Brisbane
Sydney, bothproperties, aswell
of which are wellunderway.
as capital
Details of the fair value of the Group's interest bearing liabilities are set out in note E2. commitments
Refer to note D5in relation to the redevelopment
for commitments in respect ofof the Gold Coast
investment and Sydney,
in associate both
and joint of which
venture are well underway.
entities.
Financial Risk Management
Refer to note D5 for commitments in respect of investment in associate and joint venture entities.
Financial
As a result Risk
of Management
USPP borrowings, the Group is exposed to the foreign currency risk through the movements in C2 Contingent liabilities
As a resultexchange
USD/AUD of USPPrate. borrowings,
The Groupthe hasGroup
enteredis into
exposed
cross to the foreign
currency swapscurrency
in order torisk through
hedge the movements
this exposure. As at 30in C2 Contingent liabilities
Legal challenges
USD/AUD
June 2017,exchange
100% of the rate. The Group
USPP has entered
borrowings balanceinto cross currency
of US$460.0 millionswaps in order to hedge this exposure. As at 30
is hedged. Legal challenges
There are outstanding legal actions between the Company and its controlled entities and third parties as at 30 June
June 2017, 100% of the USPP borrowings balance of US$460.0 million is hedged. There are outstanding
2017. The legal actions
Group has notified between
its insurance the Company
carrier and its
of all relevant controlled
litigation and entities
believesandthatthird
any parties
damages at 30 June
as (other than
The Group is also exposed to the interest rate risk as a result of bank loans and USPP borrowings. To hedge against
The risk,
Group 2017. The Group
exemplary has that
damages) notified
mayitsbeinsurance
awarded carrier
againstofthe
all Group,
relevantinlitigation
addition and
to itsbelieves that anyindamages
costs incurred connection(other
withthan
the
this theisGroup
also exposed to the
has entered interest
into rate
interest risk
rate as a result
swaps. As at of
30bank
June loans
2017,and
out USPP borrowings.
of the total interest To hedge
bearing against
liabilities,
this the Group
risk,(2016: hashasentered exemplary
action, will damages)
be coveredthat may
by its be awarded
insurance against
policies wherethe Group,
such in addition
policies to its costs
are in place. Whereincurred
there arein no
connection
policies inwith the
place,
60.3% 68.3%) been into interest
hedged rate swaps.
against As atrate
the interest 30 June Furtherout
risk. 2017, of theabout
details total interest bearing
the Group's liabilities,
exposure to
60.3% action, will be
provisions arecovered
made forby its insurance
known policies
obligations wherethe
where such policies of
existence areainliability
place. Where there and
is probable are no
canpolicies in place,
be reasonably
interest(2016:
rate and68.3%)
foreignhas been hedged
currency movementsagainst
are the interest
provided rate risk.
in notes E1 and E2. details about the Group's exposure to
Further
interest rate and foreign currency movements are provided in notes E1 and E2. provisions are
quantified. made
As the for known
outcomes of obligations
these actions where the existence
remain uncertain, ofcontingent
a liability liabilities
is probableexistand
forcan be reasonably
possible amounts
quantified. As the that
eventually payable outcomes of these
are in excess actions
of the remain
amounts uncertain,
covered for by contingent
the insurance liabilities
policiesexist for possible
in place or of the amounts
eventuallyfor.
provided payable that are in excess of the amounts covered for by the insurance policies in place or of the amounts
provided for.
Financial guarantees
Financial guarantees
Refer to note E1 for details of financial guarantees provided by the Group at the reporting date.
Refer to note E1 for details of financial guarantees provided by the Group at the reporting date.
C3 Subsequent events
C3 Subsequent
On 23 August events
2017, the Group completed a tender and reissue offer in relation to 73% of the Groupʼs US Private
On 23 August
Placement 2017,
(USPP) the GroupThis
borrowings. completed a tender to
was undertaken and reissue
extend the offer
Group'sin relation
tenor ontoaverage
73% ofdrawn
the Groupʼs US Private
debt maturity by 3
Placement
years to 5.2(USPP) borrowings.
years, reduce financeThiscosts
was on
undertaken
a like for to
likeextend
basis theandGroup's tenor on average
lower refinancing drawn for
requirements debtthematurity
Group. by
The3
years to
Group 5.2 years,
estimates reduce
that financeblended
its average costs on a like
cost for like
of debt basis
on all USPP andnotes
lowerfollowing
refinancingtherequirements
new issue willforbethe Group. The
approximately
Group
5% estimates
(down that9%
from over its average blended
on previous cost
notes). Theof transaction
debt on all USPP notes to
is expected following
result inthe new issue
a one-off losswill be approximately
in the range of $30-
5% (down
$34 millionfrom
(afterover
tax)9% on previous
relating notes). The transaction
to the crystallisation of an existing is expected
obligationtoforresult in a one-off
the related out ofloss
the in the range
money of $30-
interest rate
$34 million
swaps and (after
other tax) relating
costs. This to the crystallisation
one-off loss will be ofrecognised
an existingas obligation for theitem
a significant related outFY2018
in the of the money interest
Financial rate
Report.
swaps
Further and other
detail can costs.
be foundThis
in one-off
the ASXloss will be recognised
Announcement - The Staras a significantplacement
announces item in the of FY2018
long-termFinancial Report.
notes (dated 23
detail can be found in the ASX Announcement - The Star announces placement of long-term notes (dated 23
Further 2017).
August
August 2017).
Other than those events disclosed in the Directors' Report or elsewhere in these financial statements, there have been
Other thansignificant
no other those events disclosed
events Directors'
in theafter
occurring the balance or elsewhere
Report sheet date andin these
up tofinancial
the datestatements, there which
of this report, have been
may
no other significant
materially affect eitherevents occurring
the Group's after the
operations balance
or results of those date and up
sheet operations to Group's
or the the datestate
of this report, which may
of affairs.
materially affect either the Group's operations or results of those operations or the Group's state of affairs.

50 51
50 51
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
96 97
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes to the financial statements

Notes
NOTES to
TOthe
For the year
financial
THE
ended 30
statements
FINANCIAL
June 2017 STATEMENTS NOTES TOended
For the year THE 30
FINANCIAL
June 2017 STATEMENTS
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017
D Group structure
D Group structure a These companies entered into a deed of cross guarantee with The Star Entertainment Sydney Holdings Limited on 31 May 2011,
D1 Related party disclosure and as such are members of the closed group as defined in Australian Securities and Investments Commission Instrument
D1 Related party disclosure 2016/785 (refer to note D3)
(i) Parent entity
(i) Parent entityparent entity within the Group is The Star Entertainment Group Limited.
The ultimate b These companies have provided a charge over their assets and undertakings as explained in note E1
The ultimate parent entity within the Group is The Star Entertainment Group Limited. c Deregistered on 24 August 2016
(ii) Investments in controlled entities
(ii) Investments in controlled entities incorporate the assets, liabilities and results of the following controlled entities in d Incorporated on 18 October 2016
The consolidated financial statements
The consolidated
accordance financial
with the statements
accounting policyincorporate
described inthenote
assets, liabilities
G. The andyears
financial results
of of
allthe followingentities
controlled controlled
are entities
the same in e The following entity changed its company name on 18 October 2016:
accordance
as that of thewith the accounting
Company policyotherwise
(unless stated in note G. The financial years of all controlled entities are the same
describedbelow). - The Star Entertainment (Macau) Limited was previously known as Jupiters Resorts (Macau) Limited
as that of the Company (unless stated otherwise below). Equity interest Equity interest f The following entity changed its company name on 3 November 2016:
Equity interest
at 30 June Equity interest
at 30 June
- EEI Services (Hong Kong) Holdings Limited was previously known as Echo Entertainment International (Hong Kong) Limited
Country of at 30 June
2017 at 30 June
2016
Name of controlled entity Note Country of
incorporation Equity type 2017
% 2016
% g The following entities changed their company name on 2 February 2017:
Name of controlled entity Note incorporation Equity type % % - The Star Entertainment International Pty Ltd was previously known as Destination Brisbane Pty Ltd
Parent entity - The Star Entertainment Sydney Apartments Pty Ltd was previously known as Sydney Harbour Apartments Pty Limited
Parent
The Starentity
Entertainment Group Limited Australia ordinary shares
- The Star Entertainment Sydney Properties Pty Ltd was previously known as Sydney Harbour Casino Properties Pty Limited
The Star Entertainment Group Limited Australia ordinary shares
Controlled entities h The following entities changed their company name on 3 February 2017:
Controlled entities
The Star Entertainment Sydney Holdings Limited ab Australia ordinary shares 100.0 100.0 - The Star Entertainment QLD Limited was previously known as Jupiters Limited
The Star Entertainment
The Star Pty Limited Sydney Holdings Limited a
abb Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0 - The Star Entertainment QLD Custodian Pty Ltd was previously known as Jupiters Custodian Pty Ltd
The Star
The Star Entertainment
Pty Limited Pty Ltd a
ab Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0 i The following entity changed its name on 24 May 2017:
The Star Entertainment Sydney
The Star Entertainment Pty Ltd Properties Pty Ltd a
abg Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0 - The Star Entertainment Gold Coast Trust was previously known as Jupiters Trust
The Star
The Star Entertainment
Entertainment Sydney
Sydney Apartments
Properties Pty
PtyLtd
Ltd a
abgg Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0 j Incorporated on 15 June 2017
The Star Entertainment Sydney Apartments
Star City Investments Pty Limited Pty Ltd a
a g Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
Star City
Star City Share
Investments Pty Limited
Plan Company Pty Ltd a Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0 (iii) Transactions with controlled entities
Star City Share Plan Company Pty Ltd
The Star Entertainment QLD Limited h Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
The Star Entertainment Group Limited
The Star
The Star Entertainment
Entertainment QLD
QLD Custodian
Limited Pty Ltd h
h Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0 During the period, the Company entered into the following transactions with controlled entities:
The Star Entertainment Gold Custodian
The Star Entertainment QLD Coast TrustPty Ltd h
i Australia
Australia ordinary
units shares 100.0
100.0 100.0
100.0
− loans of $128.4 million were advanced by controlled entities (2016: the Company advanced loans of $32.9 million);
The Star
Star Entertainment
Entertainment International
Gold Coast Trust i Australia units 100.0 100.0 and
The No.1 Pty Ltd Australia ordinary shares 100.0 100.0
Australia ordinary 100.0 − income tax and GST paid on behalf of controlled entities was $230.6 million (2016: $225.2 million).
The Star Entertainment International No.2
The Star Entertainment International No.1 Pty
Pty Ltd
Ltd Australia ordinary shares
shares 100.0 100.0
100.0
Australia ordinary 100.0 The amount receivable by the Company from controlled entities at year end is $279.7 million (2016: $151.3 million). All
The Star
The Star Entertainment
Entertainment (Macau)
International No.2 Pty Ltd
Limited e Macau ordinary shares
shares 100.0 100.0
100.0
The Star
Star Entertainment
Entertainment International
(Macau) Limited e Macau ordinary shares
shares 100.0 100.0
the transactions were undertaken on normal commercial terms and conditions.
The No.3 Pty Ltd Australia ordinary 100.0 100.0
The Services
EEI Star Entertainment International
(Hong Kong) No.3 Pty Ltd
Holdings Limited f Australia
Hong Kong ordinary shares
ordinary shares 100.0
100.0 100.0
100.0 (iv) Transactions with other related parties
EEI Services
Echo (Hong Kong)
Entertainment Holdings
(Shanghai) Limited
Trading Co. Ltd cf Hong
China Kong ordinary shares
ordinary shares 100.0
0.0 100.0
100.0
Other transactions
EchoServices
Entertainment (Shanghai) Trading Co. Ltd c China Kong ordinary shares
shares 0.0 100.0 During the period, in addition to equity contributions (refer to note D5), the Group entered into the following
EEI (Hong Kong) Limited Hong ordinary 100.0 100.0
transactions with related parties:
EEI C&C
EEI Services (HongPte
Services Kong)
Ltd Limited Hong Kong
Singapore ordinary shares
ordinary shares 100.0
100.0 100.0
100.0 - Amount recharged to Destination Brisbane Consortium Integrated Resort Holdings Pty Ltd was $0.2 million (2016:
EEI C&C
The Services Pte Ltd
Star Entertainment RTO Pty Ltd Singapore
Australia ordinary shares
ordinary shares 100.0
100.0 100.0
100.0 $0.9 million); and
The Star
The Star Entertainment
Entertainment Finance
RTO PtyLimited
Ltd Australia
Australia ordinary shares
ordinary shares 100.0
100.0 100.0
100.0 - Amount paid to Destination Brisbane Consortium Integrated Resort Holdings Pty Ltd was $1.5 million (2016: nil)
The Star Entertainment Finance Limited
The Star Entertainment International Pty Ltd g Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0 relating to capital works.
The Star
The Star Entertainment
Entertainment Technology
InternationalServices
Pty Ltd Pty Ltd g Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
The Star Entertainment Training Company PtyPty
The Star Entertainment Technology Services LtdLtd Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
The Star
PPIT Pty Entertainment
Ltd Training Company Pty Ltd Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
PPIT Pty Ltd
The Star Entertainment International No.4 Pty Ltd Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
The Star
The Star Entertainment
Entertainment Online
International No.4
Holdings Pty
Pty Ltd
Ltd Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
The Star Entertainment Online Holdings
The Star Entertainment Online Pty Ltd Pty Ltd Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
The Star
The Star Entertainment
Entertainment Brisbane
Online PtyHoldings
Ltd Pty Ltd Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
The Star Entertainment Brisbane Holdings
The Star Entertainment Brisbane OperationsPtyPty
LtdLtd Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
The Star
The Star Entertainment
Entertainment DBC
Brisbane Operations
Holdings Pty LtdPty Ltd Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
The Star Entertainment DBC Holdings PtyLtd
The Star Brisbane Car Park Holdings Pty Ltd Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
100.0
The Star
The Star Entertainment
Brisbane Car Park
GoldHoldings Pty Ltd Pty Ltd
Coast Holdings d Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 100.0
0.0
The Star Entertainment Gold Coast Holdings Pty Ltd
The Star Entertainment GC Investments Pty Ltd d
d Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 0.0
0.0
The Star
The Star Entertainment
Entertainment GC
GC Investments
Investments No.1 Pty Ltd d
Pty Ltd d Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 0.0
0.0
The Star
The Star Entertainment
Entertainment International
GC InvestmentsNo.5No.1 Ltd Ltd jd
Pty Pty Australia
Australia ordinary
ordinary shares
shares 100.0
100.0 0.0
0.0
The Star Entertainment International No.5 Pty Ltd j Australia ordinary shares 100.0 0.0

52 53
52
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities
98 99
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes
Notes to
to the
the financial
financial statements
statements Notes
Notes to
to the
the financial
financial statements
statements
NOTES
For
For the TOended
the year
year THE 30
ended FINANCIAL
30 June
June 2017
2017 STATEMENTS NOTES
For
For the TOended
the year
year THE 30
ended FINANCIAL
30 June
June 2017
2017 STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017

D2
D2 Parent
Parent entity
entity disclosures
disclosures D3
D3 Deed
Deed of
of cross
cross guarantee
guarantee
The
The Star
Star Entertainment
Entertainment Group Limited, the
Group Limited, the parent
parent entity
entity of
of the Group, was
the Group, was incorporated
incorporated on
on 2
2 March
March 2011.
2011. The
The Star
Star Entertainment
Entertainment Sydney
Sydney Holdings
Holdings Limited,
Limited, The
The Star
Star Pty
Pty Limited,
Limited, The
The Star
Star Entertainment
Entertainment Pty
Pty Ltd,
Ltd, The
The Star
Star
2017 2016 Entertainment
Entertainment Sydney
Sydney Properties
Properties Pty
Pty Ltd,
Ltd, The
The Star
Star Entertainment
Entertainment Sydney
Sydney Apartments
Apartments PtyPty Ltd
Ltd and
and Star
Star City
City
2017 2016
Investments
Investments Pty
Pty Limited
Limited are
are parties
parties to
to a
a deed
deed of
of cross
cross guarantee
guarantee under
under which
which each
each company
company guarantees
guarantees the
the debts
debts of
of
$m
$m $m
$m the
the others.
others. By
By entering
entering into
into the
the deed,
deed, the
the wholly-owned
wholly-owned entities
entities have
have been
been relieved
relieved from
from the
the requirements
requirements to
to prepare
prepare aa
Result
Result ofof the
the parent
parent entity
entity
Financial
Financial Report and Directors'
Report and Report under
Directors' Report under Instrument
Instrument 2016/785
2016/785 issued
issued by
by the
the Australian
Australian Securities
Securities and
and Investments
Investments
Profit for
for the 244.8 142.3 Commission.
Commission.
Profit the year
year 244.8 142.3
(i)
(i) Consolidated
Consolidated income statement and
income statement and summary
summary of of movements
movements in in consolidated
consolidated earnings
earnings
Total
Total comprehensive
comprehensive income
income for
for the
the year
year
a
a 244.8
244.8 142.3
142.3 The
The above
above companies
companies represent
represent a
a 'closed
'closed group'
group' for
for the
the purposes
purposes of
of the
the Class
Class Order,
Order, and
and as
as there
there are
are no
no other
other parties
parties
to
to the deed of cross guarantee that are controlled by The Star Entertainment Sydney Holdings Limited, they
the deed of cross guarantee that are controlled by The Star Entertainment Sydney Holdings Limited, they also
also
a Since
Since the
the end
end of
of the
the financial
financial year,
year, the
the Company
Company has
has declared
declared aa final
final dividend
dividend of
of 8.5
8.5 cents
cents per
per ordinary
ordinary share
share (2016:
(2016: 7.5
7.5 cents), represent
a
which
cents), represent the
the 'extended
'extended closed
closed group'.
group'.
which is
is expected
expected to
to be
be paid
paid on
on 26
26 September
September 2017
2017 out
out of
of retained
retained earnings
earnings at
at 30
30 June
June 2017
2017 to
to its
its shareholders
shareholders (refer
(refer to
to note
note
A6).
A6). Set
Set out
out below
below is
is a consolidated income
a consolidated statement and
income statement and a
a summary
summary of
of movements
movements in
in consolidated
consolidated retained
retained earnings
earnings for
for
the year ended 30 June 2017 of the closed group.
the year ended 30 June 2017 of the closed group.
Financial
Financial position
position of
of the
the parent
parent entity
entity
Current assets 1,310.0 1,181.3 Consolidated
Consolidated income
income statement
statement
Current assets 1,310.0 1,181.3
2017
2017 2016
2016
Non
Non current
current assets
assets 2,589.5
2,589.5 2,589.4
2,589.4
$m
$m $m
$m
Total
Total assets
assets 3,899.5
3,899.5 3,770.7
3,770.7 Revenue
Revenue 1,620.4
1,620.4 1,575.7
1,575.7
Current
Current liabilities
liabilities 43.5
43.5 36.9
36.9
Non current
current liabilities
liabilities 1,031.5
1,031.5 1,031.2
1,031.2 Other (0.1) 0.5
Non Other income
income (0.1) 0.5
Total Government
Government taxes
taxes and
and levies (369.4) (349.9)
Total liabilities
liabilities 1,075.0
1,075.0 1,068.1
1,068.1 levies (369.4) (349.9)
Commissions and
Commissions and feesfees (222.4)
(222.4) (294.3)
(294.3)
Employment
Employment costs
costs (338.3)
(338.3) (335.2)
(335.2)
Net
Net assets
assets 2,824.5
2,824.5 2,702.6
2,702.6 Depreciation, (88.1) (93.9)
Depreciation, amortisation
amortisation and
and impairment
impairment (88.1) (93.9)
Total
Total equity
equity of
of the
the parent
parent entity
entity Cost
Cost of
of sales
sales (48.7)
(48.7) (45.1)
(45.1)
Issued capital 2,580.5 2,580.5 Property (50.3) (51.0)
Issued capital 2,580.5 2,580.5 Property costs
costs (50.3) (51.0)
Retained
Retained earnings 237.2 116.3 Advertising (53.7) (52.4)
earnings 237.2 116.3 Advertising and
and promotions
promotions (53.7) (52.4)
Shared
Shared based
based payments
payments benefits
benefits reserve
reserve 6.8
6.8 5.8
5.8 Other expenses (229.1)
(229.1) (113.1)
(113.1)
Other expenses
Total
Total equity
equity 2,824.5
2,824.5 2,702.6
2,702.6 Earnings
Earnings before
before interest
interest and
and tax
tax (EBIT)
(EBIT) 220.3
220.3 241.3
241.3
Contingent
Net finance costs
Net finance costs -- --
Contingent liabilities
liabilities
There
There were
were no
no contingent
contingent liabilities
liabilities for
for the
the parent
parent entity
entity at
at 30
30 June 2017 (2016:
June 2017 (2016: nil). Profit
nil). Profit before
before income
income tax
tax (PBT)
(PBT) 220.3
220.3 241.3
241.3
Capital Income tax
tax expense (67.9) (68.8)
Capital expenditure
expenditure Income expense (67.9) (68.8)
The
The parent
parent entity
entity does
does not
not have
have any
any capital
capital expenditure
expenditure commitments
commitments for
for the
the acquisition
acquisition of
of property,
property, plant
plant and
and Net
Net profit
profit after
after tax
tax (NPAT)
(NPAT) 152.4
152.4 172.5
172.5
equipment contracted
equipment contracted but
but not
not provided
provided for at 30
for at 30 June 2017 (2016:
June 2017 (2016: nil).
nil).
Total
Total comprehensive income
comprehensive income for
for the
the period
period 152.4
152.4 172.5
172.5
Guarantees
Guarantees
The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited has
has guaranteed
guaranteed thethe liabilities
liabilities of
of The
The Star
Star Entertainment
Entertainment Finance
Finance Limited
Limited and
and
The Star Entertainment International No.3 Pty Ltd. As at 30 June 2017, the carrying amount included in
The Star Entertainment International No.3 Pty Ltd. As at 30 June 2017, the carrying amount included in current
current Summary
Summary of of movements
movements in in consolidated
consolidated retained
retained earnings
earnings
liabilities at 30 June
at 30 June 2017
2017 was
was nil
nil (2016:
(2016: nil),
nil), and
and the
the maximum
maximum amount
amount of of these
these guarantees
guarantees was
was $117.7
$117.7 million
million (2016: Accumulated 141.6 45.1
liabilities (2016: Accumulated profit/(loss) at the beginning of the
profit/(loss) at the beginning of the financial
financial year
year 141.6 45.1
$117.3 million)
$117.3 million) (refer
(refer to
to note
note E1).
E1). The
The Company
Company has has also
also undertaken
undertaken to to support
support its
its controlled
controlled entities
entities when
when necessary
necessary Profit 152.4 172.5
to Profit for
for the
the year
year 152.4 172.5
to enable
enable them
them to
to pay
pay their
their debts
debts as
as and
and when
when they
they fall
fall due.
due. Dividends (164.0) (76.0)
Dividends paid
paid (164.0) (76.0)
Accounting
Accounting policy
policy for
for investments
investments in in controlled
controlled entities
entities
All investments
investments are Accumulated
Accumulated profit
profit at
at the
the end
end of
of the
the financial
financial year 130.0 141.6
All are initially
initially recognised
recognised at
at cost,
cost, being
being the
the fair
fair value
value of
of the
the consideration
consideration given.
given. Subsequently
Subsequently year 130.0 141.6
investments
investments are
are carried
carried at
at cost
cost less
less any
any impairment
impairment losses.
losses. (ii)
(ii) Consolidated
Consolidated balance
balance sheet
sheet
Set
Set out below is a
out below is a consolidated
consolidated balance sheet as
balance sheet as at
at 30
30 June 2017 of
June 2017 of the
the closed
closed group
group consisting
consisting of
of The
The Star
Star
Entertainment Sydney
Entertainment Sydney Holdings
Holdings Limited,
Limited, The
The Star
Star Pty
Pty Limited,
Limited, The
The Star
Star Entertainment
Entertainment Pty
Pty Ltd,
Ltd, The
The Star
Star Entertainment
Entertainment
Sydney
Sydney Properties
Properties Pty
Pty Limited,
Limited, The
The Star
Star Entertainment
Entertainment Sydney
Sydney Apartments
Apartments Pty
Pty Limited,
Limited, and
and Star
Star City
City Investments
Investments Pty
Pty
Limited.
Limited.

54
54 55
55

The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities
100 101
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes
Notes to
to the
the financial
financial statements
statements Notes
Notes to
to the
the financial
financial statements
statements
NOTES
For
For the TOended
the year
year THE 30
ended FINANCIAL
30 June
June 2017
2017 STATEMENTS NOTES
For
For the TOended
the year
year THE 30
ended FINANCIAL
30 June
June 2017
2017 STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017
Consolidated
Consolidated balance
balance sheet
sheet D5
D5 Investment
Investment in
in associate
associate and
and joint
joint venture
venture entities
entities
2017
2017 2016
2016 Set
Set out
out below
below are
are the
the investments
investments ofof the Group as
the Group as at
at 30
30 June 2017 which,
June 2017 which, in
in the
the opinion
opinion of
of the
the Directors,
Directors, are
are material
material
$m $m to the
to Group. The
the Group. The entities
entities listed
listed below
below have
have share
share capital
capital consisting
consisting solely
solely of
of ordinary
ordinary shares,
shares, which
which are
are held
held by
by the
the
$m $m Group.
Group. The country of incorporation is also their principal place of business, and the proportion of ownership interest is
The country of incorporation is also their principal place of business, and the proportion of ownership interest is
ASSETS the
the same
same asas the
the proportion
proportion ofof voting
voting rights
rights held.
held.
ASSETS
Cash 28.7 49.7 Carrying
Cash assets
assets 28.7 49.7 2017
Carrying
amount
Trade and
and other
other receivables
receivables 145.0 115.3 2017 Country of % of Nature of Measurement amount
Trade 145.0 115.3 Country of % of Nature of Measurement
Name of entity incorporation ownership ownership method $m
Inventories 8.0 5.8 Name of entity incorporation ownership ownership method $m
Inventories 8.0 5.8 Destination Brisbane Consortium Integrated Resort
Other 21.9 18.7 Destination Brisbane Consortium Integrated Resort
Other 21.9 18.7 Holdings Pty Ltd (i) Australia 50 Associate Equity method 152.6
Holdings Pty Ltd (i) Australia 50 Associate Equity method 152.6
Total
Total current
current assets
assets 203.6
203.6 189.5
189.5 Festival Car Park Pty Ltd (ii) Australia 50 Joint venture Equity method 13.5
Festival Car Park Pty Ltd (ii) Australia 50 Joint venture Equity method 13.5
Destination Gold Coast Investments Pty Ltd (iii) Australia 50 Joint venture Equity method 46.3
Property, 1,315.0 Destination Gold Coast Investments Pty Ltd (iii) Australia 50 Joint venture Equity method 46.3
Property, plant
plant and
and equipment
equipment 1,315.0 1,240.4
1,240.4
Intangible assets 287.7 292.0 Total equity accounted investments 212.4
Intangible assets 287.7 292.0 Total equity accounted investments 212.4
Other
Other assets
assets 11.8
11.8 12.7
12.7 (i)
(i) Destination
Destination Brisbane
Brisbane Consortium
Consortium Integrated
Integrated Resort
Resort Holdings
Holdings PtyPty Ltd
Ltd
Total
Total non
non current
current assets
assets 1,614.5
1,614.5 1,545.1
1,545.1 The
The Group has partnered with Hong Kong-based organisations Chow Tai
Group has partnered with Hong Kong-based organisations Chow Tai Fook
Fook Enterprises
Enterprises Limited
Limited (CTF)
(CTF) and
and Far
Far East
East
TOTAL
TOTAL ASSETS
ASSETS 1,818.1
1,818.1 1,734.6
1,734.6
Consortium
Consortium International
International Limited
Limited (FEC)
(FEC) toto form
form Destination
Destination Brisbane Consortium (DBC)
Brisbane Consortium (DBC) for
for the
the Queenʼs
Queenʼs Wharf
Wharf
Brisbane
Brisbane Project.
Project. The
The parties
parties have
have formed
formed two
two vehicles
vehicles (the
(the Integrated
Integrated Resort
Resort Joint
Joint Venture
Venture and
and the
the Residential
Residential Joint
Joint
LIABILITIES Venture), which together are responsible for completing the Queenʼs Wharf Brisbane project.
Venture), which together are responsible for completing the Queenʼs Wharf Brisbane project.
LIABILITIES
Trade
Trade and
and other
other payables 437.7 348.3 Consistent
payables 437.7 348.3 Consistent with
with the
the ownership
ownership structure,
structure, the
the Group
Group will
will contribute 50% of
contribute 50% of the
the capital
capital to
to the
the development
development of of the
the
Provisions 38.3 35.6 Integrated
Provisions 38.3 35.6 Integrated Resort and act as the casino operator under a long dated casino management agreement. CTF and FEC
Resort and act as the casino operator under a long dated casino management agreement. CTF and FEC
Other liabilities
liabilities 12.2 11.9 will
will each contribute 25%
each contribute 25% of
of the
the capital
capital to
to the
the development
development of of the
the integrated
integrated resort.
resort. CTF
CTF and
and FEC
FEC will
will each
each contribute
contribute
Other 12.2 11.9 50%
Total current liabilities
Total current liabilities 488.2
488.2 395.8
395.8 50% of of the
the capital
capital to
to undertake
undertake the
the residential
residential and
and related
related component
component of of the
the broader
broader Queenʼs
Queenʼs Wharf
Wharf Brisbane
Brisbane
development.
development. The
The Group
Group is
is not
not a
a party
party to
to the
the residential
residential joint
joint venture.
venture.
Deferred tax
tax liabilities
liabilities 54.5 51.7 30
30 June
June 2017
2017
Deferred 54.5 51.7
Provisions 5.5 5.6 Commitments
Commitments and and contingent
contingent liabilities
liabilities
Provisions 5.5 5.6 DBC
Total DBC will invest approximately $2
will invest approximately $2 billion
billion to
to fund
fund the
the construction
construction of
of the
the integrated
integrated resort,
resort, which
which is
is expected
expected to
to open
open in
in
Total non
non current
current liabilities
liabilities 60.0
60.0 57.3
57.3 2022 (subject to various approvals).
2022 (subject to various approvals).
TOTAL
TOTAL LIABILITIES 548.2 453.1 Summarised
LIABILITIES 548.2 453.1 Summarised financial
financial information
information
NET ASSETS 1,269.9 1,281.5 The
The financial statements of
financial statements of the
the associate
associate is
is prepared
prepared for
for the
the same
same reporting
reporting period
period as
as the
the Group
Group and
and follow
follow the
the same
same
NET ASSETS 1,269.9 1,281.5 accounting policies of the Group.
accounting policies of the Group.
EQUITY
EQUITY 2017 2016
2017 2016
Issued
Issued Capital
Capital 1,139.9
1,139.9 1,139.9
1,139.9 $m $m
$m $m
Retained
Retained Earnings
Earnings 130.0
130.0 141.6
141.6 Balance
Balance sheet
sheet
TOTAL EQUITY
TOTAL EQUITY 1,269.9
1,269.9 1,281.5
1,281.5 Total
Total current
current assets
assets 53.2
53.2 5.4
5.4
Total non current assets
Total non current assets 327.2
327.2 21.4
21.4
D4
D4 Key
Key Management
Management Personnel
Personnel disclosures
disclosures Total current liabilities (14.8) (7.3)
Total current liabilities (14.8) (7.3)
2017
2017 2016
2016 (75.0)
Total non
Total non current
current liabilities
liabilities (75.0) --
$000
$000 $000
$000
Net
Net assets
assets 290.6
290.6 19.5
19.5
Compensation
Compensation of of Key
Key Management
Management Personnel
Personnel
Short term
Short term 5,757
5,757 8,564
8,564 Reconciliation
Reconciliation toto investment
investment carrying
carrying amount:
amount:
Long
Long term
term 344
344 347
347 Carrying
Carrying amount at the beginning of
amount at the beginning of the
the year
year 16.2
16.2 --
Share
Share based
based payments
payments 2,304
2,304 2,419
2,419 Share
Share of
of equity
equity contributions
contributions for
for the
the Group
Group 136.7
136.7 10.0
10.0
Total
Total compensation
compensation 8,405
8,405 11,330
11,330 Share of loss for the period
Share of loss for the period (1.1)
(1.1) (0.1)
(0.1)
The Capitalised costs
Capitalised costs 0.8
0.8 6.3
6.3
The above
above reflects
reflects the
the compensation
compensation forfor individuals
individuals who
who are
are Key
Key Management
Management Personnel
Personnel of
of the
the Group.
Group. The
The note
note
should
should be
be read
read in
in conjunction
conjunction with
with the
the Remuneration
Remuneration Report. Carrying
Report. Carrying amount
amount at
at the
the end
end of
of the
the year
year 152.6
152.6 16.2
16.2

56
56 57
57

The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities
102 103
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes

Notes to
to the
the financial
financial statements
statements
Notes to the financial statements
NOTES TOended
For the year THE 30
FINANCIAL
June 2017 STATEMENTS NOTES TOended
For the year THE 30
FINANCIAL
June 2017
For the year ended 30 June 2017
STATEMENTS
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017
2017 2016 (iii) Destination Gold Coast Investments Pty Ltd
2017 2016 (iii) Destination Gold Coast Investments Pty Ltd
$m $m On 20 October 2016, a 50% interest was acquired in Destination Gold Coast Investments Pty Ltd (DGCI). DGCI is a
$m $m On 20 October 2016, a 50% interest was acquired in Destination Gold Coast Investments Pty Ltd (DGCI). DGCI is a
Income statement joint venture with CTF and FEC involved in the operation of the Sheraton Grand Mirage Resort, Gold Coast. The
joint venture with CTF and FEC involved in the operation of the Sheraton Grand Mirage Resort, Gold Coast. The
Income statement Group's interest is accounted for using the equity method.
Loss before tax (2.1) (0.3) Group's interest is accounted for using the equity method.
Loss before tax (2.1) (0.3) The Securityholdersʼ Deed for Destination Gold Coast Investments Pty Ltd requires unanimous consent for each Board
Income tax benefit - 0.1 The Securityholdersʼ Deed for Destination Gold Coast Investments Pty Ltd requires unanimous consent for each Board
Income tax benefit - 0.1 resolution. Due to the unanimous requirement for decisions, each party has joint control of the entity. The entity is
resolution. Due to the unanimous requirement for decisions, each party has joint control of the entity. The entity is
Loss for the year (continuing operations) (2.1) (0.2) designed to exist on its own and the Deed does not grant the rights to assets and liabilities directly to the Group. The
designed to exist on its own and the Deed does not grant the rights to assets and liabilities directly to the Group. The
Loss for the year (continuing operations) (2.1) (0.2) investment has therefore been classified as a joint venture.
investment has therefore been classified as a joint venture.
Total comprehensive loss for the year (continuing operations) (2.1) (0.2) DGCI has provisionally accounted for a business combination in which DGCI is in the process of ascertaining the fair
Total comprehensive loss for the year (continuing operations) (2.1) (0.2) DGCI has provisionally accounted for a business combination in which DGCI is in the process of ascertaining the fair
(1.1) (0.1) values of the identifiable assets, liabilities and contingent liabilities acquired. In doing so, the Group has relied on the
Group's share of loss for the year values of the identifiable assets, liabilities and contingent liabilities acquired. In doing so, the Group has relied on the
Group's share of loss for the year (1.1) (0.1) best estimate of the identifiable assets, liabilities and contingent liabilities of DGCI, until the quantification and
best estimate of the identifiable assets, liabilities and contingent liabilities of DGCI, until the quantification and
Dividends received from the associate entity - - treatment of items under review is complete.
Dividends received from the associate entity - - treatment of items under review is complete.
Commitments and contingent liabilities
(ii) Festival Car Park Pty Ltd Commitments and contingent liabilities
(ii) Festival CarhasPark Pty Ltd The joint venture had capital commitments of $0.2 million (2016: nil) as at 30 June 2017. There were no other
The Group a 50% interest in Festival Car Park Pty Ltd, a joint venture that operates the Festival Car Park on The joint venture had capital commitments of $0.2 million (2016: nil) as at 30 June 2017. There were no other
The Group has a 50% interest contingent liabilities.
Charlotte Street in Brisbane. ThisinisFestival Car Park
a joint venture withPty
CTFLtd,
anda FEC.
joint venture that operates the Festival Car Park on contingent liabilities.
Charlotte Street in Brisbane. This is a joint venture with CTF and FEC. Summarised financial information
Commitments and contingent liabilities Summarised financial information
Commitments and The financial statements of the joint venture is prepared for the same reporting period as the Group and follow the
The joint venture hadcontingent liabilities of $0.1 million (2016: $0.3 million) as at 30 June 2017. There were no other
capital commitments The financial statements of the joint venture is prepared for the same reporting period as the Group and follow the
The joint venture had capital commitments of $0.1 million (2016: $0.3 million) as at 30 June 2017. There were no other same accounting policies of the Group.
contingent liabilities. same accounting policies of the Group.
contingent liabilities. 2017 2016
Summarised financial information 2017 2016
Summarised financial information $m $m
The financial statements of the joint venture are prepared on financial information that is unaudited and prepared for $m $m
The financial
reporting statements
purposes. of the
The joint joint venture
venture are prepared
has a financial year endondate
financial
of 31information
March. that is unaudited and prepared for Balance sheet
Balance sheet
reporting purposes. The joint venture has a financial year end date of 31 March. 2017 2016 Cash and cash equivalents 6.7 -
Cash and cash equivalents 6.7 -
2017 2016 Total current assets excluding cash and cash equivalents 0.9 -
$m $m Total current assets excluding cash and cash equivalents 0.9 -
$m $m Total non current assets 167.1 -
Balance sheet Total non current assets 167.1 -
Balance Total current liabilities (11.9) -
Cash andsheet
cash equivalents 1.7 0.4 Total current liabilities (11.9) -
Cash and cash equivalents 1.7 0.4 Total non current liabilities - financial liabilities (72.2) -
Total current assets excluding cash and cash equivalents 0.1 0.9 Total non current liabilities - financial liabilities (72.2) -
Total current assets excluding cash and cash equivalents 0.1 0.9 Other non current liabilities (14.3) -
Total non current assets 48.3 47.6 Other non current liabilities (14.3) -
Total non current assets 48.3 47.6 Net assets 76.3 -
Total current liabilities (0.6) (0.2) Net assets 76.3 -
Total current liabilities (0.6) (0.2)
Total non current liabilities - financial liabilities (22.5) (22.5)
Total non current liabilities - financial liabilities (22.5) (22.5) Reconciliation to investment carrying amount:
Net assets 27.0 26.2 Reconciliation to investment carrying amount:
Net assets 27.0 26.2 Share of profit for the period - -
Share of profit for the period - -
Share of equity contributions for the Group 46.3 -
Share of equity contributions for the Group 46.3 -
Reconciliation to investment carrying amount:
Reconciliation Carrying amount 46.3 -
Carrying amounttoatinvestment carrying
the beginning amount:
of the year 13.1 - Carrying amount 46.3 -
Carrying amount at the beginning of the year 13.1 -
Share of profit for the period 0.4 0.1
Share of profit for the period 0.4 0.1 Income statement
Share of equity contributions for the Group - 13.0 Income statement
Share of equity contributions for the Group - 13.0 Revenue 16.2 -
Revenue 16.2 -
Carrying amount at the end of the year 13.5 13.1 Interest expense (0.9) -
Carrying amount at the end of the year 13.5 13.1 Interest expense (0.9) -
Depreciation expense (1.2) -
Depreciation expense (1.2) -
Income statement Operating expenses (13.9) -
Income Operating expenses (13.9) -
Revenuestatement 3.1 0.7 0.3 -
Revenue 3.1 0.7 Profit before tax 0.3 -
Interest expense (0.7) (0.2) Profit before tax
Income tax expense (0.3) -
Interest expense (0.7) (0.2) Income tax expense (0.3) -
Other expenses (1.4) (0.2)
Other expenses (1.4) (0.2) Profit for the year (continuing operations) - -
1.0 0.3 Profit for the year (continuing operations) - -
Profit before tax
Profit before tax 1.0 0.3 Total comprehensive income for the year (continuing operations) - -
Income tax expense (0.3) (0.1) Total comprehensive income for the year (continuing operations) - -
Income tax expense (0.3) (0.1) Group's share of profit for the year - -
Profit for the year (continuing operations) 0.7 0.2 Group's share of profit for the year - -
Profit for the year (continuing operations) 0.7 0.2
Total comprehensive income for the year (continuing operations) 0.7 0.2
Total comprehensive income for the year (continuing operations) 0.7 0.2
Group's share of profit for the year 0.4 0.1
Group's share of profit for the year 0.4 0.1

58 59
58 59
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
104 105
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes

Notes to
to the
the financial
financial statements
statements
Notes
NOTES to
TOthe
For the year
financial
THE
ended 30
statements
FINANCIAL
June 2017 STATEMENTS NOTES
For TOended
THE 30
FINANCIAL STATEMENTS
For the
the year
year ended 30 June
June 2017
2017
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017
E Risk Management Credit
E Risk Management Credit riskrisk includes
includes liabilities
liabilities under
under financial
financial guarantees.
guarantees. For For financial
financial guarantee
guarantee contract
contract liabilities,
liabilities, the
the fair
fair value
value atat
E1 Financial risk management objectives and policies initial
initial recognition
recognition is is determined
determined using using a a probability
probability weighted
weighted discounted
discounted cash cash flow
flow approach.
approach. The The fair
fair value
value of of financial
financial
E1 Financial risk
The Group's management
principal financial objectives
instruments, and
otherpolicies
than derivatives, comprise cash, short term deposits, bank bills, guarantee
guarantee contractcontract liabilities
liabilities has has beenbeen assessed
assessed as as nil (2016: nil),
nil (2016: nil), asas the
the possibility
possibility of of anan outflow
outflow occurring
occurring is is
The Group's
Australian principal financial
denominated instruments,
bank loans, and foreign other than derivatives,
currency denominatedcomprisenotes. cash, short term deposits, bank bills, considered
considered remote. remote. Details
Details of of the
the financial
financial guarantee
guarantee contracts
contracts in the balance
in the sheet are
balance sheet are outlined
outlined below.
below.
Australian denominated bank loans, and foreign currency denominated notes.
The main purpose of these financial instruments is to raise debt capital for the Group's operations. The Group has Fixed
Fixed andand floating
floating charges
charges
The main
various otherpurpose
financial of these
assetsfinancial instruments
and liabilities such asis tradeto raise debt capital
receivables and for
trade Group's operations.
thepayables, which arise The directly fromhas
Group its The
The controlled entities
controlled entities denoted
denoted (b) (b) in in note
note D1D1 have
have provided
provided Liquor
Liquor and and Gaming
Gaming NSW NSW with with aa fixed
fixed andand floating
floating charge
charge
various otherDerivative
operations. financial assets and liabilities
transactions are also such as trade
entered intoreceivables
by the Group, and trade
beingpayables,
interest ratewhich arise directly
swaps, from its
cross currency over
over allall of
of the
the assets
assets and and undertakings
undertakings of of each
each company
company to to secure
secure payment
payment of of all
all monies
monies and and thethe performance
performance of of all
all
operations.
swaps Derivative
and forward transactions
currency contracts,arethe also entered
purpose into to
being the Group,
bymanage being
interest rateinterest rate swaps,
and currency cross currency
risks arising from the obligations
obligations which which they
they havehave to to Liquor
Liquor and and Gaming
Gaming NSW. NSW.
swaps and
Group's forward and
operations currency
sourcescontracts,
of finance.the purpose being to manage interest rate and currency risks arising from the
Group's operations and sources of finance. Guarantees
Guarantees and and indemnities
indemnities
The Group's risk management policy is carried out by the Corporate Treasury function under the Group Treasury The
The controlled
controlled entities denoted (b)
entities denoted (b) inin note
note D1D1 have
have entered
entered intointo a a guarantee
guarantee and and indemnity
indemnity agreement
agreement in in favour
favour ofof
The
PolicyGroup's
approved risk by management policy is carried
the Board. Corporate Treasury outreports
by the regularly
Corporateto Treasury
the Boardfunctionon the under
Group's therisk
Group Treasury
management Liquor
Liquor and and Gaming
Gaming NSW NSW whereby
whereby all all parties
parties toto the
the agreement
agreement are are jointly
jointly and
and severally
severally liable
liable for
for the
the performance
performance of of
Policy approved
activities by theIt Board.
and policies. is, andCorporate
has been Treasury
throughout reports regularly
the period under to the Board
review, theon Group's policy risk
the Group's that management
no trading in the
the obligations
obligations and and liabilities
liabilities ofof each
each company
company participating
participating in in the
the agreement
agreement with with respect
respect to to agreements
agreements entered entered into
into
activities instruments
financial and policies. It is,
shall beand has been throughout the period under review, the Group's policy that no trading in
undertaken. and
and guarantees
guarantees given. given.
financial instruments shall be undertaken.
The main risks arising from the Group's financial instruments are interest rate risk, foreign currency risk, credit risk and The Star
The Star Entertainment
Entertainment Finance Finance Limited
Limited and and The
The Star
Star Entertainment
Entertainment International
International No. No. 3 3 Pty
Pty Ltd
Ltd are
are called
called upon
upon toto give
give
The main
liquidity risks arising from the Group's financial instruments are interest rate risk, foreign currency risk, credit risk and
risk. in
in the
the ordinary
ordinary course
course of of business,
business, guarantees
guarantees and and indemnities
indemnities in in respect
respect of of the
the performance
performance of of their
their contractual
contractual and and
liquidity risk. financial
financial obligations.
obligations. The The maximum
maximum amount amount of of these
these guarantees
guarantees and and indemnities
indemnities is is $117.7
$117.7 million (2016: $117.3
million (2016: $117.3
Details of significant accounting policies and methods adopted, including criteria for recognition, the basis of
Details of significant accounting policies million).
million).
measurement and the basis on which incomeand andmethods
expensesadopted, including
are recognised, criteria offor
in respect recognition,
each the basis
class of financial asset,of
measurement
financial liabilityandand the basisinstrument,
equity on which income and expenses
are disclosed in note G. are recognised, in respect of each class of financial asset, Liquidity
Liquidity riskrisk
financial liability and equity instrument, are disclosed in note G. Liquidity
Liquidity riskrisk arises
arises from
from thethe financial
financial liabilities
liabilities of
of the
the Group
Group and and thethe Group's
Group's subsequent
subsequent abilityability to
to meet
meet itsits obligations
obligations
Interest rate risk
Interest ratehas
riska policy of controlling exposure to interest rate fluctuations by the use of fixed and variable rate debt to
to repay
repay itsits financial
financial liabilities
liabilities asas and
and whenwhen they
they fall
fall due.
due.
The Group
The Group
and by the has
use aofpolicyinterest of rate
controlling
swaps exposure
or caps. The to interest
Grouprate has fluctuations
entered intobyinterestthe use of fixed
rate swap and variable rate
agreements debt
to hedge The
The Group's
Group's objective
objective is is to
to maintain
maintain a a balance
balance between
between continuity
continuity of of funding
funding andand flexibility
flexibility through
through the the useuse ofof bank
bank
and by the debt
underlying use of interest rate
obligations andswaps or caps.rate
allow floating Theborrowings
Group has to entered into interest
be swapped to fixedrate swap
rate agreements
borrowings. to hedge
Under these loans and
loans and notes.notes.
underlying debtthe
arrangements, obligations
Group will and
pay allow
fixedfloating
interestrate ratesborrowings
and receive to betheswapped
bank billtoswap fixedrate
ratecalculated
borrowings. on Under these
the notional
arrangements,
principal amount the
of Group will pay fixed interest rates and receive the bank bill swap rate calculated on the notional
the contracts. The
The Group
Group manages
manages liquidity
liquidity risk
risk by by maintaining
maintaining a a forecast
forecast of of expected
expected cash cash flow
flow which
which is is monitored
monitored and and reviewed
reviewed on on
principal amount of the contracts. a
a regular
regular basis.
basis. ToTo help
help reduce
reduce liquidity risk, the
liquidity risk, the Group
Group targets
targets a a minimum
minimum level level of
of cash
cash and
and cash
cash equivalents
equivalents to to be
be
At 30 June 2017 after taking into account the effect of interest rate swaps, approximately 60.3% (2016: 68.3%) of the maintained,
maintained, and and has
has revolving
revolving facilities
facilities in in place
place with
with sufficient
sufficient undrawn
undrawn funds funds available.
available.
At 30 June
Group's 2017 after
borrowings aretaking into rate
at a fixed account the effect of interest rate swaps, approximately 60.3% (2016: 68.3%) of the
of interest.
Group's borrowings are at a fixed rate of interest. The
The Group's
Group's policypolicy is
is that
that not
not more
more thanthan 33%33% of of debt
debt facilities
facilities should
should mature
mature in in any
any financial
financial year
year within
within thethe next
next four
four
Foreign currency risk years.
years. At At 30
30 June
June 2017,
2017, the the Group's
Group's debt debt facilities
facilities that
that will
will mature
mature in in less
less than
than oneone year
year isis $130.0
$130.0 million
million (2016:
(2016: nil),
nil),
Foreign
As currency
a result of issuingrisk private notes denominated in US Dollars (USD), the Group's balance sheet can be affected by representing
representing 12.4% 12.4% of of total
total debt.
debt. The The next
next debt
debt maturity
maturity is is the
the Syndicated
Syndicated Facility
Facility Agreement
Agreement facility
facility of
of $250.0
$250.0 million
million
As a result ofin issuing
movements the USD/AUDprivate notes
exchangedenominated
rate. In order in US to Dollars
manage this the
(USD), Group'sthe
exposure, balance
Groupsheethas can
enteredbe affected
into crossby on
on 2020 July
July 2018.
2018. This
This represents
represents 23.9% 23.9% of of total
total debt
debt and and is within the
is within the Group's
Group's policy.
policy.
movements
currency swaps in the to USD/AUD
fix the exchangeexchange raterate.
on the In order
notestountil manage this The
maturity. Group the
exposure, Group
agrees has entered
to exchange into cross
a fixed USD
currency for
amount swaps to fix the
an agreed exchange
Australian rate (AUD)
Dollar on the amountnotes until withmaturity. The Group agrees
swap counterparties, to exchange this
and re-exchange a fixed
againUSD at Refer to notes B7 and E2 for maturity of financial
Refer to notes B7 and E2 for maturity of financial liabilities. liabilities.
amount for
maturity. an swaps
These agreedare Australian
designated Dollar (AUD)theamount
to hedge principal with
andswap
interestcounterparties,
obligations under and there-exchange
private notes.this again at The
The contractual
contractual cash
cash flows
flows including
including principal
principal and
and estimated
estimated interest
interest receipts
receipts or
or payments
payments of
of financial
financial assets
assets or
or
maturity. These swaps are designated to hedge the principal and interest obligations under the private notes. liabilities
The Group has operating leases for two aircrafts invoiced in USD. The Group has entered into foreign exchange liabilities are
are as
as follows:
follows:
The Group
forward has operating
contracts to hedgeleases againstforthe twoUSD aircrafts
currencyinvoiced
risk, in
by USD. The Group
exchanging has entered
the future USD lease into payments
foreign exchange
to AUD (i) Non-derivative
forward (i) Non-derivative financial
financial instruments
instruments
amounts.contracts to hedge against the USD currency risk, by exchanging the future USD lease payments to AUD 2017 2016
amounts. 2017 2016
Credit risk < 1 year 1 - 5 years
years >55 years
years < 1 year 1 - 5 years
years >55 years
years
< 1 year 1 - 5 > < 1 year 1 - 5 >
Credit risk
risk on financial assets which have been recognised on the balance sheet, is the carrying amount less any
Credit risk for on nonfinancial assets $m
$m $m
$m $m
$m $m
$m $m
$m $m
$m
allowance recovery. Thewhich
Group have been recognised
minimises credit risk via on the balancetosheet,
adherence a strictis credit
the carrying amount less
risk management any
policy.
allowance isfornot
Collateral nonheldrecovery. The Group minimises credit risk via adherence to a strict credit risk management policy.
as security. Financial
Collateral is not held as security. Financial assets
assets
Credit risk in trade receivables is managed in the following ways: Cash
Cash assets
assets 107.7
107.7 -- -- 103.4
103.4 -- --
Credit
Therisk in tradeofreceivables
provision cheque cashing is managed
facilitiesin the following
for casino ways: patrons is subject to detailed policies and procedures
gaming 6.0
− Short
Short term
term deposits
deposits 6.0 -- -- 55.7
55.7 -- --
− The provision
designed of cheque
to minimise anycashing
potentialfacilities for casino
loss, including thegaming
use of apatrons
central is subject
credit agencyto detailed policies information
which collates and procedures from Net
Net trade
trade and
and other
other receivables
receivables 192.7
192.7 -- -- 130.4
130.4 -- --
designed to minimise any
the major casinos around the world; and potential loss, including the use of a central credit agency which collates information from
the major casinos around the world; and
− The provision of non gaming credit is covered by a risk assessment process for customers using the Credit 306.4
306.4 -- -- 289.5
289.5 -- --
− The provision
Reference of non gaming
Association credit
of Australia, bankis covered
opinions by andatrade
risk references.
assessment process for customers using the Credit
Financial
Financial liabilities
liabilities
Reference Association of Australia, bank opinions and trade references.
Receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is Trade creditors
Trade creditors and
and accrued
accrued expenses
expenses 322.4
322.4 -- -- 259.9
259.9 -- --
Receivable
carefully managedbalances andare monitored on an ongoing basis with the result that the Group's exposure to bad debts is
controlled. 12.9 453.8
carefully managed and controlled.
Bank loans - unsecured
Bank loans - unsecured 12.9 453.8 -- 6.1
6.1 209.6
209.6 --
With respect to credit risk arising from other financial assets of the Group, which comprise cash and cash equivalents Private
Private placement
placement -- USUS dollar
dollar 163.0
163.0 546.9
546.9 -- 34.3
34.3 257.5
257.5 509.5
509.5
With respect
(including to credit
short risk arising
term deposits andfrombankother financial
bills), assets ofexposure
the maximum the Group, of which comprise
the Group cash risk
to credit and from
cash default
equivalents
of a
(including
counterparty short term to
is equal deposits and bank
the carrying amount bills), the maximum
of these instruments. exposure of the Group to credit risk from default of a 498.3
498.3 1,000.7
1,000.7 -- 300.3
300.3 467.1
467.1 509.5
509.5
counterparty is equal to the carrying amount of these instruments.
In relation to financial liabilities, credit risk arises from the potential failure of counterparties to meet their obligations Net
Net (outflow)/inflow
(outflow)/inflow (191.9)
(191.9) (1,000.7)
(1,000.7) -- (10.8)
(10.8) (467.1)
(467.1) (509.5)
(509.5)
In relation
under the to financial
contract or liabilities,
arrangement.creditTherisk Group's
arises from the potential
maximum credit failure of counterparties
risk exposure in respect to of
meet their obligations
interest rate swap
under the cross
contracts, contract or arrangement.
currency swap contracts Theand Group's
forwardmaximum credit riskis exposure
currency contracts detailed ininnote respect
E2. of interest rate swap
contracts, cross currency swap contracts and forward currency contracts is detailed in note E2.
60 61
61
60
The Star Entertainment Group Limited and its controlled entities The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities
The Star Entertainment Group Limited and its controlled entities
106 107
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes to the financial statements

NOTES
For TOended
THE 30
FINANCIAL STATEMENTS Notes
NOTES to
TOthe financial
THE statements
FINANCIAL STATEMENTS
For the
the year
year ended 30 June
June 2017
2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
The movements in profit are due to higher/lower interest costs from variable rate debt and investments. The movement
(ii)
(ii) Derivative
Derivative financial
financial instruments
instruments The
in movements
other in profit income
comprehensive are dueistodue higher/lower interest costs from
to an increase/decrease variable
in the rate of
fair value debt and investments.
financial instrumentsThe movement
designated as
2017
2017 2016
2016 in other
cash flowcomprehensive
hedges. income is due to an increase/decrease in the fair value of financial instruments designated as
< 1 year 1 - 5 years
years >55 years
years < 1 year 1 - 5 years
years >55 years
years cash flow hedges.
< 1 year 1 - 5 > < 1 year 1 - 5 > The numbers derived in the sensitivity analysis are indicative only.
$m
$m $m
$m $m
$m $m
$m $m
$m $m
$m The numbers derived in the sensitivity analysis are indicative only.
Significant assumptions used in the interest rate sensitivity analysis include:
Financial Significant
reasonablyassumptions
possible used in the interest
movements raterates
in interest sensitivity
were analysis
determined include:
based on the Group's current credit rating and
Financial assets
assets −
Interest 9.0 24.0 3.2 8.7 30.9 6.5 reasonably
− mix of debt,possible movements
relationships in interest
with financial rates were
institutions and thedetermined based
level of debt onisthe
that Group'stocurrent
expected credit rating
be renewed, as welland
as
Interest rate
rate swaps
swaps -- receive
receive AUD
AUD floating
floating 9.0 24.0 3.2 8.7 30.9 6.5
mix of debt,
a review relationships
of the with historical
last two years' financial movements
institutions and andthe level offorecaster's
economic debt that is expectations;
expected to be renewed, as well as
Cross currency
Cross currency swaps
swaps -- receive
receive USD
USD fixed
fixed 163.0
163.0 546.9
546.9 -- 34.3
34.3 257.5
257.5 509.5
509.5
Forward − a review
price of the last
sensitivity of two years' historical
derivatives is basedmovements
on a reasonablyand economic
possibleforecaster's
movement expectations;
of spot rates at the balance sheet
Forward currency contract - receive USD
currency contract - receive USD − price sensitivity of derivatives is based on a reasonably possible movement of spot rates at the balance sheet
9.2 1.2 dates; and
fixed
fixed 9.2 1.2 -- 9.5
9.5 10.8
10.8 --
− dates;
the netand exposure at the balance sheet date is representative of what the Group was, and is expecting to be,
181.2
181.2 572.1
572.1 3.2
3.2 52.5
52.5 299.2
299.2 516.0
516.0 the net exposure
− exposed to in the nextat the balance
twelve months. sheet date is representative of what the Group was, and is expecting to be,
exposed to in the next twelve months.
Financial
Financial liabilities
liabilities Foreign Exchange
Interest 29.1 72.3 4.7 26.8 95.6 20.2 Foreign
The Exchange
following sensitivity analysis is based on foreign currency risk exposures in existence at the balance sheet date. At
Interest rate
rate swaps
swaps -- pay
pay AUD
AUD fixed
fixed 29.1 72.3 4.7 26.8 95.6 20.2
The following
30 June, sensitivity
had the analysis
AUD moved, asisillustrated
based oninforeign
the tablecurrency
below,riskwithexposures in existence
all other variables the balance
heldatconstant, postsheet date.and
tax profit At
Cross
Cross currency
currency swaps
swaps -- pay
pay AUD
AUD floating
floating 163.0
163.0 546.9
546.9 -- 22.0
22.0 172.4
172.4 352.6
352.6 30 June,
other had the AUDincome
comprehensive moved,would
as illustrated
have been in the table as
affected below, with all other variables held constant, post tax profit and
follows:
Forward
Forward currency contract - pay AUD
currency contract - pay AUD other comprehensive income would have been affected as follows:
fixed
fixed 7.8
7.8 0.9
0.9 -- 7.7
7.7 8.7
8.7 -- Judgements of reasonably possible movements:
Judgements of reasonably possible movements: Other Other
199.9
199.9 620.1
620.1 4.7
4.7 56.5
56.5 276.7
276.7 372.8
372.8 comprehensive Other comprehensiveOther
Net profit after tax comprehensive
income Net profit after tax comprehensive
income
Net
Net (outflow)/inflow
(outflow)/inflow (18.7)
(18.7) (48.0)
(48.0) (1.5)
(1.5) (4.0)
(4.0) 22.5
22.5 143.2
143.2 Net profit after tax
higher/(lower) income Net profit
higher/(lower) after tax
higher/(lower) income
higher/(lower)
For
For floating
floating rate
rate instruments,
instruments, the
the amount
amount disclosed
disclosed is
is determined
determined by
by reference
reference to
to the
the interest
interest rate
rate at
at the
the last
last repricing
repricing higher/(lower) higher/(lower) higher/(lower) higher/(lower)
date. 2017 2017 2016 2016
date. For
For foreign
foreign currency
currency receipts
receipts and
and payments,
payments, the
the amount
amount disclosed
disclosed is
is determined
determined by
by reference
reference to
to the
the AUD/USD
AUD/USD 2017 2017 2016 2016
rate at balance
rate at balance sheet
sheet date.
date. $m $m $m $m
$m $m $m $m
(iii) AUD/USD + 10 cents - (53.8) - (10.9)
(iii) Financial
Financial instruments
instruments -- sensitivity
sensitivity analysis
analysis AUD/USD + 10 cents - (53.8) - (10.9)
Interest
Interest rates
rates -- AUD
AUD and
and USD
USD AUD/USD - 10 cents - 69.8 - 14.3
The AUD/USD - 10 cents - 69.8 - 14.3
The following
following sensitivity
sensitivity analysis
analysis is
is based
based on
on interest
interest rate
rate risk
risk exposures
exposures inin existence
existence at
at year
year end.
end.
There is no movement in net profit after tax as the Group has fully hedged its foreign currency exposure to the USPP.
At 30 June, if interest rates had moved, as illustrated in the table below, with all other variables held
At 30 June, if interest rates had moved, as illustrated in the table below, with all other variables held constant,
constant, post
post tax
tax There is no movement
The movement in otherincomprehensive
net profit after income
tax as the Group
is due hasincrease/decrease
to an fully hedged its foreignin thecurrency
fair valueexposure to the
of financial USPP.
instruments
profit and other comprehensive income would have been affected
profit and other comprehensive income would have been affected as follows: as follows: The movement
designated in other
as cash flowcomprehensive
hedges. Management income isbelieves
due to an theincrease/decrease
balance sheet date in the
risk fair value of are
exposures financial instruments
representative of
Other
Other designated as cash
the risk exposure flow hedges.
inherent Management
in the financial believesThe
instruments. balance sheet
the numbers deriveddate risksensitivity
in the exposuresanalysis
are representative
are indicativeof
comprehensive
comprehensive the risk exposure inherent in the financial instruments. The numbers derived in the sensitivity analysis are indicative
only.
Net profit
Net profit after
after tax
tax income
income only.
Significant assumptions used in the foreign currency exposure sensitivity analysis include:
higher/(lower)
higher/(lower) higher/(lower)
higher/(lower) Significant assumptions
− reasonably possible used in the foreign
movements currency
in foreign exposure
exchange ratessensitivity analysis include:
were determined based on a review of the last two
2017
2017 $m
$m $m
$m − reasonably possible movements in foreign exchange
years' historical movements and economic forecaster's expectations; rates were determined based on a review of the last two
years' historical movements and economic forecaster's expectations;
− the reasonably possible movement of 10 cents was calculated by taking the USD spot rate as at balance sheet
AUD
AUD − the
date,reasonably
moving this possible movement
spot rate by 10 centsof 10and centsthenwas calculated by
re-converting thetaking
USD the
into USD
AUDspotwith rate as at spot-rate'.
the 'new balance sheet
This
+
+ 0.5%
0.5% (50
(50 basis
basis points)
points) (1.6)
(1.6) 7.3
7.3 date, moving reflects
methodology this spot therate by 10 cents
translation and thenundertaken
methodology re-converting theGroup;
by the USD into AUD with the 'new spot-rate'. This
-- 0.5%
0.5% (50
(50 basis
basis points)
points) 1.6
1.6 (7.5)
(7.5) methodology reflects the translation methodology undertaken by the movement
Group;
− price sensitivity of derivatives is based on a reasonably possible of spot rates at the balance sheet
USD price sensitivity
− dates; and of derivatives is based on a reasonably possible movement of spot rates at the balance sheet
USD
+
+ 0.5%
0.5% (50
(50 basis
basis points)
points) -- (7.0)
(7.0) − dates;
the netand exposure at the balance sheet date is representative of what the Group was, and is expecting to be,
− the net exposure
exposed to in the nextat the balance sheet date is representative of what the Group was, and is expecting to be,
12 months.
-- 0.25%
0.25% (25
(25 basis
basis points)
points) -- (3.5)
(3.5) exposed to in the next 12 months.
2016
2016
E2 Additional financial instruments disclosure
E2
(i) Additional
Fair values financial instruments disclosure
AUD
AUD (i) Fair
The values
fair value of the Group's financial assets and financial liabilities approximates their carrying value as at the
+ 0.5%
+ 0.5% (50
(50 basis
basis points)
points) (0.5)
(0.5) 6.9
6.9 The fair sheet
balance value date.
of the Group's financial assets and financial liabilities approximates their carrying value as at the
-- 0.5%
0.5% (50
(50 basis
basis points)
points) 0.5 (7.1) balance sheet date.
0.5 (7.1) Swaps
Swaps
Fair value is calculated using discounted future cash flow techniques, where estimated cash flows and estimated
USD
USD Fair value is calculated
discount rates are based using discounted
on market future
data at the cash sheet
balance flow techniques,
date. where estimated cash flows and estimated
+ 0.5%
+ 0.5% (50
(50 basis
basis points)
points) -- (10.1)
(10.1) discount rates are based on market data at the balance sheet date.
Forward currency contracts
-- 0.25%
0.25% (25
(25 basis
basis points)
points) -- 5.2
5.2 Forward
Fair valuecurrency contracts
is calculated using forward exchange market rates at the balance sheet date.
Fair value is calculated using forward exchange market rates at the balance sheet date.

62
62 63
63
The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities
108 109
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes

Notes to
to the
the financial
financial statements
statements
Notes
NOTES to
TOthe
For the year
financial
THE
ended 30
statements
FINANCIAL
June 2017 STATEMENTS NOTES
For TOended
THE 30
FINANCIAL STATEMENTS
For the
the year
year ended 30 June
June 2017
2017
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017
USPP
USPP The
The principal
principal amounts
amounts and
and periods
periods of
of expiry
expiry of
of the
the cross
cross currency
currency swap
swap contracts
contracts are
are as
as follows:
follows:
Fair value is calculated using discounted future cash flow techniques, where estimated cash flows and estimated
Fair value
discount is calculated
rates are based using discounted
on market data at future cash flow
the balance sheettechniques, where estimated
date, in combination cash flows
with restatement to and estimated
current foreign
discount
exchangerates
rates.are based on market data at the balance sheet date, in combination with restatement to current foreign 2017 2016
exchange rates. 2017 2016
(ii) Interest rate risk AUD $m
AUD $m USD $m
USD $m AUD
AUD $m
$m USD
USD $m
$m
(ii) Interest
The Group rate
hadrisk
the following classes of financial assets and financial liabilities exposed to floating interest rate risk: Less
Less than
than one
one year
year 94.0
94.0 100.0
100.0 -- --
The Group had the following classes of financial assets and financial liabilities exposed to floating2017 interest rate risk:2016
2017 2016 One
One to five years
to five years 336.0
336.0 360.0
360.0 94.0
94.0 100.0
100.0
$m $m
$m $m More
More than
than five
five years
years -- -- 336.0
336.0 360.0
360.0
Financial assets Notional
Financial assets Notional principal
principal 430.0
430.0 460.0
460.0 430.0
430.0 460.0
460.0
Cash assets 29.8 30.2
Cash assets
Short term deposits 29.8
6.0 30.2
55.7
Short term deposits 6.0 55.7 Fixed
Fixed interest
interest rate
rate range
range p.a.
p.a. 5.1%
5.1% -- 5.7%
5.7% 5.1% -- 5.7%
5.1% 5.7%
Total financial assets 35.8 85.9 Variable 4.6% -- 4.9%
4.9% 4.9% -- 5.2%
5.2%
Total financial assets 35.8 85.9 Variable interest rate range p.a.
interest rate range p.a. 4.6% 4.9%
Financial liabilities The terms
terms and
and conditions
conditions in
in relation
relation to
to interest
interest rate
rate and
and maturity
maturity of
of the
the cross
cross currency
currency swaps
swaps are
are similar
similar to
to the
the terms
terms
Financial
Bank loansliabilities
- unsecured a 449.5 200.0 The
and conditions of the underlying hedged USPP borrowings as set out in
and conditions of the underlying hedged USPP borrowings as set out in note B7.note B7.
USPP cross- currency
Bank loans unsecured a
swaps 449.5
430.0 200.0
430.0
USPP cross currency swaps 430.0 430.0 (v)
(v) Financial instruments
Financial instruments -- forward
forward currency
currency contracts
contracts
Derivatives b (430.0) (430.0) Forward
Derivatives b (430.0) (430.0) Forward currency
currency contracts
contracts meet
meet the
the requirements
requirements to to qualify
qualify for
for cash
cash flow
flow hedge
hedge accounting
accounting and
and are
are stated
stated at
at fair
fair
Total financial liabilities 449.5 200.0 value.
value.
Total financial liabilities 449.5 200.0 These
These contracts
contracts are
are being
being used
used to
to hedge
hedge the
the exposure
exposure to
to variability
variability in
in the
the movement
movement USDUSD exchange
exchange rate
rate arising
arising from
from
a Interest on financial instruments classified as floating rate is repriced at intervals of less than one year. The floating rates the
the Group's operations and are assessed as highly effective hedges as they are matched against
Group's operations and are assessed as highly effective hedges as they are matched against known
known andand
a Interest
representonthefinancial instruments
most recently classified
determined as floatingtorate
rate applicable is repriced atatthe
the instrument intervals
balanceofsheet
less date.
than one year. The floating rates committed
committed payments.
payments. Any
Any gain
gain or
or loss
loss on
on the
the hedged
hedged risk
risk is
is taken
taken directly
directly to
to equity.
equity.
b represent the most recently
Notional principal amounts. determined rate applicable to the instrument at the balance sheet date.
The
The notional
notional amounts
amounts and
and periods
periods of
of expiry
expiry of
of the
the foreign
foreign currency
currency contracts
contracts are
are as
as follows:
follows:
b Notional principal amounts.
(iii) Financial instruments - interest rate swaps 2017
2017 2016
2016
(iii) Financial instruments
Interest rate swaps meet- interest rate swaps
the requirements to qualify for cash flow hedge accounting and are stated at fair value. $m
$m $m
$m
Interest rate swaps meet the requirements to qualify for cash flow hedge accounting and are stated at fair value.
These swaps are being used to hedge the exposure to variability in cash flows attributable to movements in the Buy
These swaps are rate
being used to hedge debt
the exposure to variability in cash flows attributable Buy USD
USD // sell
sell AUD
AUD
reference interest of the designated or instrument and are assessed as highly effectiveto
in movements in the
offsetting changes Less 7.8 7.7
reference
in the cashinterest rate of the designated
flows attributable debt or instrument
to such movements. and are assessed
Hedge effectiveness as highly
is measured by effective
comparingin offsetting
the change changes
in the Less than one year
than one year 7.8 7.7
in
fairthe cashofflows
value the attributable
hedged item to such
and themovements.
hedging Hedge effectiveness
instrument is measured
respectively by comparing
each quarter. the change
Any difference in the
represents One to
One to five
five years
years 0.9
0.9 8.7
8.7
fair value of the
ineffectiveness andhedged item inand
is recorded the the hedging
income instrument respectively each quarter. Any difference represents
statement. More than
More than five
five years
years -- --
ineffectiveness and is recorded in the income statement.
The notional principal amounts and periods of expiry of the interest rate swap contracts are as follows: Notional principal
Notional principal 8.7 16.4
8.7 16.4
The
Lessnotional
than one principal
year amounts and periods of expiry of the interest rate swap contracts are as follows: 94.0 -
Less than one
One to five years year 94.0
336.0 94.0-
One 336.0 94.0 Average
Average exchange
exchange rate
rate (AUD/USD)
(AUD/USD) 0.92
0.92 0.92
0.92
Moretothan
fivefive
yearsyears 100.0 336.0
More than five years 100.0 336.0 (vi)
Notional Principal (vi) Financial
Financial instruments
instruments -- fair
fair value
value hierarchy
hierarchy
530.0 430.0 There
Notional Principal 530.0 430.0 There are various methods available in
are various methods available in estimating
estimating the
the fair
fair value
value of
of a
a financial
financial instrument.
instrument.
The methods comprise:
The methods comprise:
Fixed interest rate range p.a. 2.4% - 7.3% 6.0% - 7.3%
Fixed interest raterate
range p.a.p.a. 2.4% - 7.3% 6.0% - 7.3% Level
Level 1
1 the fair
the fair value
value is
is calculated
calculated using
using quoted
quoted prices
prices in
in active
active markets.
markets.
Variable interest range 1.7% 2.0%
Variable interest rate range p.a. 1.7% 2.0% Level 2
Level 2 the
the fair value is estimated using inputs other than quoted prices
fair value is estimated using inputs other than quoted prices included
included in
in Level
Level 1
1 that
that are
are observable
observable for
for
Net settlement receipts and payments are recognised as an adjustment to interest expense on an accruals basis over the asset or liability, either directly (as prices) or indirectly (derived from prices).
the asset or liability, either directly (as prices) or indirectly (derived from prices).
Net settlement
the term receiptssuch
of the swaps, and that
payments are recognised
the overall as an on
interest expense adjustment to interest
borrowings reflects expense on an
the average costaccruals
of fundsbasis over
achieved Level
Level 3
3 the
the fair
fair value
value is
is estimated
estimated using
using inputs
inputs for
for the
the asset
asset or
or liability
liability that
that are
are not
not based
based on
on observable
observable market
market
the term of the
by entering intoswaps,
the swap such that the overall interest expense on borrowings reflects the average cost of funds achieved
agreements. data.
data.
by entering into the swap agreements.
(iv) Financial instruments - cross currency swaps All
(iv) Financial instruments - cross are
currency swaps All of
of the
the Group's
Group's derivative
derivative financial
financial instruments
instruments are
are valued
valued using
using the
the Level
Level 2
2 valuation
valuation techniques,
techniques, being
being observable
observable
Cross currency swap contracts classified as cash flow hedges and are stated at fair value. inputs. There have been no transfers between levels during the year.
Cross currency swap contracts are classified as cash flow hedges and are stated at fair value. inputs. There have been no transfers between levels during the year.
These cross currency swaps, in conjunction with interest rate swaps are being used to hedge the exposure to the cash
These
flow cross currency
variability swaps,
in the value in conjunction
of the with interest
USD debt under the USPPrateand
swaps
are are being used
assessed to hedge
as highly the exposure
effective to the
in offsetting cash
changes
flow variability in
in movements in the
the value
forwardof the
USD USD debt under
exchange rate.the USPPeffectiveness
Hedge and are assessed as highly
is measured by effective
comparing in offsetting
the change changes
in the
in movements
fair value of the in the forward
hedged itemUSDandexchange rate. Hedge
the hedging effectiveness
instrument is measured
respectively by comparing
each quarter. the change
Any difference in the
represents
fair value of the
ineffectiveness andhedged item inand
is recorded the the hedging
income instrument respectively each quarter. Any difference represents
statement.
ineffectiveness and is recorded in the income statement.

64 65
65
64
The Star Entertainment Group Limited and its controlled entities The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities
The Star Entertainment Group Limited and its controlled entities
110 111
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes
Notes to
to the
the financial
financial statements
statements Notes
Notes to
to the
the financial
financial statements
statements
NOTES
For
For the TOended
the year
year THE 30
ended FINANCIAL
30 June
June 2017
2017 STATEMENTS NOTES
For
For the TOended
the year
year THE 30
ended FINANCIAL
30 June
June 2017
2017 STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017

F
F Other
Other disclosures
disclosures (ii)
(ii) Deferred
Deferred tax
tax balances
balances
F1 Other The
The balance
balance comprises
comprises temporary
temporary differences
differences attributable
attributable to:
F1 Other comprehensive income
comprehensive income to:
2017
2017 2016
2016 Recognised
Recognised
$m $m in
in the
the Recognised
Recognised
$m $m Balance Balance
Balance income
income directly
directly in
in Balance
Net (loss)/gain
Net (loss)/gain on
on cash
cash flow
flow hedges
hedges (38.3)
(38.3) 31.9
31.9 1
1 July
July 2016
2016 statement
statement equity 30 June 2017
equity 30 June 2017
Transfer
Transfer of hedging reserve to the
of hedging reserve to the income
income statement
a
statement a 19.2
19.2 (18.2)
(18.2) 2017
2017 $m
$m $m
$m $m
$m $m
$m
Tax
Tax on
on above
above items
items recognised
recognised in
in other
other comprehensive
comprehensive income
income 5.7
5.7 (4.1)
(4.1) Employee
Employee provisions
provisions 18.2
18.2 0.1
0.1 -- 18.3
18.3
(13.4)
(13.4) 9.6
9.6 Other provisions and accruals
Other provisions and accruals 14.6
14.6 (3.9)
(3.9) -- 10.7
10.7
Provision for trade impaired debtors
Provision for trade impaired debtors 3.9
3.9 0.3
0.3 -- 4.2
4.2
a The
The transfer
transfer related
related to
to the
the foreign
foreign exchange
exchange spot
spot retranslation
retranslation of
of the
the foreign
foreign debt
debt is
is offset
offset by
by the
the retranslation
retranslation on
on the
the cross Unrealised financial
financial liabilities
liabilities 78.8 (6.2) (5.6) 67.0
a cross Unrealised 78.8 (6.2) (5.6) 67.0
currency swaps
currency swaps inin the
the net
net foreign
foreign exchange
exchange gain
gain line
line in
in the
the income
income statement.
statement. Other
Other 6.6
6.6 (0.2)
(0.2) -- 6.4
6.4
F2
F2 Income
Income tax
tax Deferred
Deferred tax
tax assets
assets set
set off
off 122.1
122.1 (9.9)
(9.9) (5.6)
(5.6) 106.6
106.6
(i)
(i) Income
Income tax
tax expense
expense
2017
2017 2016
2016
Intangible
Intangible assets
assets (72.4)
(72.4) (1.3)
(1.3) -- (73.7)
(73.7)
$m
$m $m
$m
Property,
Property, plant
plant and
and equipment
equipment (133.8)
(133.8) (1.9)
(1.9) -- (135.7)
(135.7)
The
The major
major components
components of
of income
income tax
tax expenses
expenses are:
are: Unrealised financial assets (76.8) 5.8 11.3 (59.7)
Unrealised financial assets (76.8) 5.8 11.3 (59.7)
Other
Other (21.0)
(21.0) (4.7)
(4.7) -- (25.7)
(25.7)
Current
Current tax
tax (expense)
(expense) (106.2)
(106.2) (80.3)
(80.3)
Adjustments inin respect
respect of
of current
current income
income tax
tax of
of previous
previous years
years 2.6 (1.5) (304.0)
(304.0) (2.1)
(2.1) 11.3
11.3 (294.8)
(294.8)
Adjustments 2.6 (1.5)
Deferred income tax expense
Deferred income tax expense (12.0)
(12.0) (3.0)
(3.0)
Income tax
tax expense
expense reported
reported in
in the
the income
income statement
statement (115.6) (84.8) Net
Income (115.6) (84.8) Net deferred
deferred tax
tax (liabilities)/assets
(liabilities)/assets (181.9)
(181.9) (12.0)
(12.0) 5.7
5.7 (188.2)
(188.2)

Recognised
Recognised
Aggregate
Aggregate of of current
current and
and deferred
deferred tax
tax relating
relating to
to items
items charged
charged in
in the
the Recognised
Recognised
or
or credited
credited to
to equity:
equity: Balance Balance
Balance income
income directly
directly in
in Balance
Current
Current tax
tax (expense)/benefit
(expense)/benefit reported
reported in
in equity
equity -- -- 1 July 2015
1 July 2015 statement
statement equity 30 June 2016
equity 30 June 2016
Deferred tax
Deferred tax benefit/(expense)
benefit/(expense) reported
reported in
in equity
equity 5.7
5.7 (4.1)
(4.1) 2016 $m $m $m $m
2016 $m $m $m $m
Income tax
Income tax benefit/(expense)
benefit/(expense) reported
reported in
in equity
equity 5.7 (4.1) Employee
Employee provisions
provisions 17.0
17.0 1.2
1.2 -- 18.2
18.2
5.7 (4.1)
Other provisions
Other provisions and
and accruals
accruals 14.7
14.7 (0.1)
(0.1) -- 14.6
14.6
Provision for
Provision for trade
trade impaired
impaired debtors
debtors 2.9
2.9 1.0
1.0 -- 3.9
3.9
Income
Income tax tax expense
expense Unrealised financial liabilities
Unrealised financial liabilities 72.3
72.3 5.0
5.0 1.5
1.5 78.8
78.8
A
A reconciliation between
reconciliation between income
income taxtax expense
expense andand the
the product
product of
of
accounting Other 9.6 (3.0) -- 6.6
accounting profit before income tax multiplied by the income tax
profit before income tax multiplied by the income tax rate
rate Other 9.6 (3.0) 6.6
is as
is as follows:
follows:
Deferred
Deferred tax
tax assets
assets set
set off
off 116.5
116.5 4.1
4.1 1.5
1.5 122.1
122.1
Accounting
Accounting profit
profit before
before income
income taxtax expense
expense 380.0
380.0 279.2
279.2
At
At the Group's statutory income tax rate
the Group's statutory income tax rate of
of 30%
30% (114.0)
(114.0) (83.8)
(83.8)
Intangible
Intangible assets
assets (72.7)
(72.7) 0.3
0.3 -- (72.4)
(72.4)
-- (Recognition)/derecognition of temporary differences
(Recognition)/derecognition of temporary differences (1.7)
(1.7) (0.2)
(0.2)
Property, plant
Property, plant and
and equipment
equipment (135.1)
(135.1) 1.3
1.3 -- (133.8)
(133.8)
-- Research
Research & & Development
Development tax tax offset
offset 2.5
2.5 0.7
0.7
Unrealised financial assets
Unrealised financial assets (65.8)
(65.8) (5.4)
(5.4) (5.6)
(5.6) (76.8)
(76.8)
-- Other
Other items
items (2.4)
(2.4) (1.5)
(1.5)
Other
Other (17.7)
(17.7) (3.3)
(3.3) -- (21.0)
(21.0)
Aggregate income
Aggregate income tax
tax expense
expense (115.6) (84.8)
(115.6) (84.8)
(291.3)
(291.3) (7.1)
(7.1) (5.6)
(5.6) (304.0)
(304.0)
Effective
Effective income
income tax
tax rate
rate 30.4
30.4 %
% 30.4 %
30.4 %

Net
Net deferred
deferred tax
tax liabilities
liabilities (174.8)
(174.8) (3.0)
(3.0) (4.1)
(4.1) (181.9)
(181.9)

66
66 67
67

The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities
112 113
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes

Notes to
to the
the financial
financial statements
statements
Notes to
TOthe financial statements For
NOTES THE FINANCIAL STATEMENTS
For the year ended 30 June 2017 For the
NOTESthe year
TOended
year THE 30
ended June
June 2017
FINANCIAL
30 2017 STATEMENTS
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017

(iii) Tax consolidation F3

F3 Effective
EarningsJune per 2011,
shareThe Star Entertainment Group Limited (the Head Company) and its 100% owned subsidiaries F3 Earnings
Earnings per
per share
share
2017 2016 2017
2017 2016
2016
formed an income tax consolidation group. Members of the tax consolidation group entered into a tax sharing
$m Head Company
arrangement that provides for the allocation of income tax liabilities between the entities should the $m $m
$m $m
$m
default on its tax payment obligations. At balance date, the possibility of default is remote. Net 264.4 194.4
Net profit after tax attributable to ordinary shareholders 264.4 194.4 Net profit
profit after
after tax
tax attributable
attributable to
to ordinary
ordinary shareholders
shareholders 264.4 194.4
Tax effect accounting by members of the tax consolidation group Basic 32.0 23.6
Basic earnings per share (cents per share) 32.0 23.6 Basic earnings per share (cents per share)
earnings per share (cents per share) 32.0 23.6
Members of the tax consolidation group have entered into a tax funding agreement effective June 2011. Under the
Diluted 31.9 23.6
Dilutedofearnings
terms per share
the tax funding (cents perthe
agreement, share) 31.9
Head Company and each of the members in the tax consolidation group 23.6
have Diluted earnings
earnings per
per share
share (cents
(cents per
per share)
share) 31.9 23.6
agreed to make a tax equivalent payment to or from the Head Company, based on the current tax liability or current tax
asset of the member. Deferred taxes are recorded by members of the tax consolidation group in accordance with the
2017 2016 2017
2017 2016
2016
principles of AASB 112 'Income Taxes'. Calculations under the tax funding agreement are undertaken for statutory
reporting purposes. Number Number Number
Number Number
Number
The allocation
Weighted of taxes
average under
number the tax used
of shares funding
as agreement is recognised as either an increase or decrease in the
the denominator Weighted
Weighted average
average number
number of
of shares
shares used
used as
as the
the denominator
denominator
subsidiaries' intercompany accounts with the Head Company. The Group has chosen to adopt the Group Allocation Weighted average number of ordinary shares issued 825,672,730 825,672,730
Weighted
method asaverage
outlinednumber of ordinary1052
in Interpretation shares
'Tax Consolidation Accounting' as the basis 825,672,730
issued to determine each825,672,730
members' Weighted average number of ordinary shares issued 825,672,730 825,672,730
current and deferred taxes. The Group Allocation method
Adjustment for calculation of diluted earnings per share: as adopted by the Group will not give rise to any contribution Adjustment
Adjustment for
for calculation
calculation of
of diluted
diluted earnings
earnings per
per share:
share:
or distribution of the subsidiaries' equity accounts as there will not be any differences between the current tax amount 2,037,596
Adjustment for Performance Rights 2,037,596 - Adjustment for Performance Rights
Adjustment for Performance Rights 2,037,596 --
that is allocated under the tax funding agreement and the amount that is allocated under the Group Allocation method.
Weighted average number of ordinary shares and potential ordinary shares Weighted
Weighted average
average number
number of
of ordinary
ordinary shares
shares and
and potential
potential ordinary
ordinary shares
shares
(iv) Income
as usedtax as payable
the denominator in calculating diluted earnings per share 827,710,326 825,672,730 as
as used as the denominator in calculating diluted earnings per share
used as the denominator in calculating diluted earnings per share 827,710,326
827,710,326 825,672,730
825,672,730
The balance of income tax payable is the net of current tax and tax instalments/refunds during the year. A current tax
liability arises where current tax exceeds tax instalments paid and a current tax receivable arises where tax instalments
F4 paid
Other assets
exceed current tax. F4
F4 Other
Other assets
assets
2017 2016 2017
2017 2016
2016
The income tax (payable) balance is attributable to:
$m $m $m
$m $m
$m
Tax
Current Current
Current
(Payable) (Increase) in instalment (Payable)
1 July 2016 tax payable paid Over Other 30 June34.0
56.7 2017 Prepayments 56.7
56.7 34.0
34.0
Prepayments Prepayments
Other 4.2 4.5
2017 assets
Other $m $m $m $m 4.2$m $m
4.5 Other assets
assets 4.2 4.5
Tax consolidated group - year ended 60.9 38.5
30 June 2017 - (106.2) 77.4 - 60.9 - 38.5
(28.8) 60.9 38.5
Tax consolidated
Non current group - year ended Non
Non current
current
30 June 2016
Rental paid in advance (20.8) - 18.2 2.6
9.9
-
10.0
- Rental
Rental paid
paid in
in advance
advance 9.9
9.9 10.0
10.0
Prior years
Other assets
- - - -
2.0
-
5.2
- Other assets
Other assets 2.0
2.0 5.2
5.2
Total Australia (20.8) (106.2) 95.6 2.6 - (28.8) 11.9 15.2
11.9 15.2 11.9 15.2
Overseas subsidiaries - - - - - -
Other assets above are shown net of impairment of nil (2016: nil). Other
Other assets
assets above
above are
are shown
shown net
net of
of impairment
impairment of
of nil
nil (2016:
(2016: nil).
nil).
Total (20.8) (106.2) 95.6 2.6 - (28.8)

F5 Trade and other payables F5

F5 Trade
Trade and
and other
other payables
payables
Trade creditors and accrued expenses
(Payable)/ Tax 322.4 259.9 Trade
Trade creditors and
creditors and accrued
accrued expenses
expenses 322.4
322.4 259.9
259.9
receivable (Increase) in instalment (Payable)
2.1 2.0 Interest payable 2.1
2.1 2.0
2.0
Interest payable 1 July 2015 tax payable paid/(refund) (Under)/over Other 30 June 2016 Interest payable
2016 $m $m $m $m $m $m 324.5 261.9
324.5 261.9 324.5 261.9
Tax consolidated group - year ended
Trade Trade
Trade and
and other
other payables
payables of
of $324.5
$324.5 million
million were
were up
up 23.9%,
23.9%, predominately
predominately relating
relating to
to higher
higher gaming
gaming related
30 Juneand
2016other payables of $324.5 million were - up 23.9%,
(80.2)predominately
59.4 relating to- higher -gaming related
(20.8) related
payables, representing players' payables,
payables, representing
representing players'
players' funds
funds deposited
deposited and
and chips
chips in
in circulation
circulation at
at 30
30 June
June 2017.
Tax consolidated group - year endedfunds deposited and chips in circulation at 30 June 2017. 2017.
30 June 2015 (41.8) - 44.0 (2.2) - -
Prior years a 2.0 - (2.7) 1.0 (0.3) -

Total Australia (39.8) (80.2) 100.7 (1.2) (0.3) (20.8)

Overseas subsidiaries - (0.1) 0.1 - - -

Total (39.8) (80.3) 100.8 (1.2) (0.3) (20.8)

a Changes in tax payable relating to amendments to the income tax returns following the application of tax consolidation tax cost
setting process.

69 69
69
68
The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities
114 115
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes

Notes to
to the
the financial
financial statements
statements
Notes
NOTES to
TOthe
For the year
financial
THE
ended 30
statements
FINANCIAL
June 2017 STATEMENTS NOTES
For TOended
THE 30
FINANCIAL STATEMENTS
For the
the year
year ended 30 June
June 2017
2017
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017
F6 Provisions
F6 Provisions F7
F7 Other
Other liabilities
liabilities (current)
(current)
2017 2016
2017 2016 2017
2017 2016
2016
$m $m
$m $m $m
$m $m
$m
Current
Current benefits Customer
Customer loyalty
loyalty deferred
deferred revenue
a
revenue a 18.2
18.2 18.5
18.5
Employee 52.8 49.5
Employee benefits 52.8 49.5 Other
Other deferred
deferred revenue
revenue 2.9
2.9 2.4
2.4
Workers' compensation 7.6 7.8
Workers'
Other compensation 7.6
6.1 7.8
1.0 21.1 20.9
21.1 20.9
Other 6.1 1.0
66.5 58.3
66.5 58.3 a
a The
The Group
Group operates
operates customer
customer loyalty
loyalty programs
programs enabling
enabling customers
customers to
to accumulate
accumulate award
award credits
credits for
for gaming
gaming and
and on-property
on-property
Non-current spend.
spend. A A portion
portion of
of the
the spend,
spend, equal
equal to
to the
the fair
fair value
value of
of the
the award
award credits
credits earned,
earned, is
is treated
treated as
as deferred
deferred revenue,
revenue, and
and recognised
recognised
Non-current
Employee benefits 8.2 11.2 in the income statement when the award is redeemed or
in the income statement when the award is redeemed or expires. expires.
Employee benefits
Other 8.2
1.7 11.2
3.4 F8
F8 Share
Share capital
capital and
and reserves
reserves
Other 1.7 3.4
9.9 14.6 (i)
(i) Share
Share capital
capital
9.9 14.6 Ordinary
Ordinary shares
shares -- issued
issued and
and fully
fully paid
a
paid a 2,580.5
2,580.5 2,580.5
2,580.5
Reconciliation
Reconciliation
Reconciliations of each class of provision, except for employee benefits and other, at the end of each financial year are
Reconciliations
set out below: of each class of provision, except for employee benefits and other, at the end of each financial year are a
a There
There is
is only
only one
one class
class of
of shares
shares (ordinary
(ordinary shares)
shares) on
on issue.
issue. These
These ordinary
ordinary shares
shares entitle
entitle the
the holder
holder to
to participate
participate in
in dividends
dividends
set out below: and
and proceeds
proceeds on on winding
winding upup of
of the
the Company,
Company, inin proportion
proportion to
to the
the number
number and
and amounts
amounts paid
paid onon the
the shares
shares held.
held. On
On aa show
show of
of
Workers' compensation reconciliation hands
Workers' compensation reconciliation Workers' hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each
every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each
share
share is
is entitled
entitled to
to one
one vote.
vote. The
The Company
Company does
does not
not have
have authorised
authorised capital
capital nor
nor par
par value
value inin respect
respect of
of its
its issued
issued shares.
shares.
Workers'
compensation Other (non-
compensation
(current) Other (non-
current)
(current) current) 2017
2017 2016
2016
2017 $m $m
2017 $m $m Number
Number of
of Number
Number of
of
Carrying amount at beginning of the year 7.8 3.4
shares
shares shares
shares
Carrying
Provisionsamount
made at beginning
during of the year
the year 7.8
1.3 3.4-
Provisions made during the year 1.3 - Movements
Provisions utilised during the year (1.5) (1.7) Movements inin ordinary
ordinary share
share capital
capital
Provisions utilised during the year (1.5) (1.7) Balance
Balance at beginning and end
at beginning and end of
of year
year 825,672,730
825,672,730 825,672,730
825,672,730
Carrying amount at end of the year 7.6 1.7
Carrying amount at end of the year 7.6 1.7 (ii)
(ii) Reserves
Reserves (net
(net of
of tax)
tax)
2016 2017
2017 2016
2016
2016
Carrying amount at beginning of the year 9.2 3.8 $m
$m $m
$m
Carrying
Provisionsamount
made at beginning
during of the year
the year 9.2
0.5 3.8- Hedging reserve
reserve aa (13.8)
(13.8) (0.4)
(0.4)
Hedging
Provisions
Provisions made
utilisedduring
duringthetheyear 0.5 - Share 6.6 5.8
Share based
based payments
payments reserve
b
year (1.9) (0.4) reserve b 6.6 5.8
Provisions utilised during the year (1.9) (0.4)
Carrying amount at end of the year 7.8 3.4 (7.2)
(7.2) 5.4
5.4
Carrying amount at end of the year 7.8 3.4
Nature and timing of provisions Nature
Nature and
and purpose
purpose of
of reserves
reserves
Nature and timing of provisions a The
The hedging
hedging reserve
reserve records
records fair
fair value
value changes
changes on
on the
the portion
portion of
of the
the gain
gain or
or loss
loss on
on a
a hedging
hedging instrument
instrument in
in a
a cash
cash flow
flow hedge
Workers' compensation a hedge
that
that is
is determined
determined to
to be
be an
an effective
effective hedge.
Workers'
The Group compensation
self insures for workers' compensation in both New South Wales and Queensland. A valuation of the hedge.
The Groupclaims
estimated self insures
liability for workers'
workers' compensation
compensation isinundertaken
both New annually
South Wales
by anand Queensland.
independent A valuation
actuary. of the
The valuations b
b The
The share
share based
based payments
payments reserve
reserve is
is used
used to
to recognise
recognise the
the value
value of
of equity
equity settled
settled share
share based
based payment
payment transactions
transactions provided
provided
estimated claims liability for workers' compensation is undertaken annually by state
an independent actuary. The valuations to
to employees, including Key Management Personnel as part of their remuneration. Refer to note F10 for further details
employees, including Key Management Personnel as part of their remuneration. Refer to note F10 for further details on
on these
are prepared in accordance with the relevant legislative requirements of each and 'Professional Standard 300' of these
plans.
are Institute
the preparedofinActuaries.
accordance Thewith the relevant
estimate legislative
of claims liabilityrequirements of each
includes a margin state
over andestimates
case 'Professional Standard
to allow for the300' of
future plans.
the Institute ofofActuaries.
development known claims,The estimate
the cost ofof claims
incurredliability
but notincludes a margin
reported claims over
and case
claimsestimates
handling to allow for which
expenses, the future
are (iii)
developmentusing
determined of known
a rangeclaims, the cost of The
of assumptions. incurred
timingbut
of not
whenreported claims
these costs willand
be claims
incurredhandling expenses, which are
is uncertain. (iii) Capital
Capital management
management
The Group's objectives
The Group's objectives when
when managing
managing capital
capital are
are to
to ensure
ensure the Group continues
the Group continues as as a
a going
going concern
concern while
while providing
providing
determined using a range of assumptions. The timing of when these costs will be incurred is uncertain. optimal
optimal returns to shareholders and benefits for other stakeholders, and to maintain an optimal capital structure
returns to shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to
to
reduce
reduce the
the cost
cost of
of capital.
capital.
In
In order
order to
to maintain
maintain oror adjust
adjust the
the capital structure, the
capital structure, Group may
the Group may adjust
adjust the
the amount
amount ofof dividends
dividends toto be
be paid
paid to
to
shareholders,
shareholders, return capital to shareholders or issue new shares. Gearing is managed primarily through the ratio of
return capital to shareholders or issue new shares. Gearing is managed primarily through the ratio of net
net
debt
debt to
to earnings
earnings before
before interest,
interest, tax,
tax, depreciation,
depreciation, amortisation,
amortisation, impairment,
impairment, significant
significant items
items and
and share
share of
of the
the net
net loss
loss
of associate and joint venture entities.
of associate and joint venture entities.
Net
Net debt
debt comprises
comprises interest
interest bearing
bearing liabilities,
liabilities, with
with US
US dollar
dollar borrowings
borrowings translated
translated at the 30
at the 30 June
June 2017
2017 USD/AUD
USD/AUD spot
spot
rate of 1.3003 (2016: 1.3421), after adjusting for cash and cash equivalents and derivative financial instruments.
rate of 1.3003 (2016: 1.3421), after adjusting for cash and cash equivalents and derivative financial instruments.

70 71
71
70
The Star Entertainment Group Limited and its controlled entities The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities
The Star Entertainment Group Limited and its controlled entities
116 117
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes
Notes to
to the
the financial
financial statements
statements Notes to the financial statements
NOTES
For TOended
THE 30
FINANCIAL STATEMENTS Notes
NOTES to
TOthe financial
THE statements
FINANCIAL STATEMENTS
For the
the year
year ended 30 June
June 2017
2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
The
F10 Employee share plans
The Groupʼs
Groupʼs capital
capital management
management alsoalso aims
aims to
to ensure
ensure that
that it
it meets
meets financial
financial covenants
covenants attached
attached to
to the
the interest
interest bearing
bearing F10 Employee shareand
During the current plans
prior periods, the Company issued Performance Rights under the Long Term Performance Plan
loans
loans and
and borrowings
borrowings that
that define
define capital
capital structure
structure requirements.
requirements. There
There have
have been
been nono breaches
breaches ofof the
the financial
financial During
to the employees.
eligible current and The
priorshare
periods, the Company
based issued Performance
payment expense Rights
is $3.8 million under
(2016: the
$5.6 Long Term
million) Performance
in respect Plan
of the equity
covenants
covenants of
of any
any interest
interest bearing
bearing loans
loans and
and borrowings
borrowings inin the
the current
current period.
period. Other
Other than
than these
these banking covenants, the
banking covenants, the to eligible employees.
instruments The share based
granted is recognised payment
in the income expense is $3.8 million (2016: $5.6 million) in respect of the equity
statement.
Group is not
Group is not subject
subject to
to externally
externally imposed
imposed capital
capital requirements.
requirements.
instruments granted is recognised in the income statement.
2017 2016 The number of Performance Rights granted to employees and forfeited or lapsed during the year are set out below.
2017 2016
The number of Performance Rights granted to employees and forfeited or lapsed during the year are set out below.
$m
$m $m
$m
Gross Debt
Debt 1,045.0 813.5 Forfeited Lapsed
Gross 1,045.0 813.5 2017 Balance at start Granted during during the
Forfeited during the Vested during Balance at end
Lapsed
Net Debt
Debt aa 787.5 473.8 2017
Grant Date of start
Balance at year Grantedthe year
during duringyear
the during thea Vestedthe
year year Balanceof
during at year
end
Net 787.5 473.8
EBITDA 586.2 488.8 Grant Date of year the year year year a the year of year
EBITDA 586.2 488.8 19 September 2012 540,583 - - 540,583 - -
Gearing ratio
Gearing ratio (times)
(times) 1.3 x
1.3 x 1.0 xx
1.0 19 September 2012 540,583
461,198
-
-
-
-
540,583
-
-
- 461,198
-
1 October 2013
1 October 2013 461,198 - - - - 461,198
a Net 26 September 2014 895,208 - - - - 895,208
a Net debt
debt is
is stated
stated after
after adjusting
adjusting for
for cash
cash and
and cash
cash equivalents
equivalents less
less the
the net
net position
position of
of derivative
derivative financial
financial instruments.
instruments. 895,208 - - - - 895,208
26 September 2014 662,328 - - - - 662,328
21 September 2015
F9 662,328 - - - - 662,328
F9 Reconciliation
Reconciliation of
of net
net profit
profit after
after tax
tax to
to net
net cash
cash inflow
inflow from
from operations
operations 21 September 2015
5 October 2016 - 1,158,988 17,013 - - 1,141,975
2017
2017 2016
2016 5 October 2016 - 1,158,988 17,013 - - 1,141,975
2,559,317 1,158,988 17,013 540,583 - 3,160,709
Note
Note $m
$m $m
$m 2,559,317 1,158,988 17,013 540,583 - 3,160,709
Net profit
Net profit after
after tax
tax 264.4
264.4 194.4
194.4
Forfeited
-- Depreciation
Depreciation and and amortisation
amortisation A4
A4 164.5
164.5 163.8
163.8 2016 Balance at start of Granted during during the Lapsed during Vested during Balance at end
Forfeited
-- Employee
Employee share
share based
based payments
payments expense
expense F10 3.8 5.6 2016
Grant Date year
Balance at start of the
Granted year
during duringyear theduring
the Lapsed year the
Vested year Balanceof
during atyear
end
F10 3.8 5.6
-- Unrealised
Unrealised foreign
foreign exchange
exchange gain
gain A3 (1.1) (0.8) Grant Date
19 September 2012 year
540,583 the year
- year- the year- the year- of year
540,583
A3 (1.1) (0.8)
18.7 19October
September
20132012 540,583 -- -- -- -- 540,583
-- Bad
Bad and
and doubtful
doubtful debts
debts expense
expense A3
A3 18.7 23.1
23.1 1 461,198 461,198
1 October
26 20132014
September 461,198
895,208 -- -- -- -- 461,198
895,208
-- Finance
Finance costs
costs A5
A5 42.7
42.7 47.1
47.1
26 September
21 September 2015
2014 895,208- 696,893- 34,565- -- -- 895,208
662,328
-- Share
Share ofof net
net loss
loss of
of associate
associate and
and joint
joint venture
venture entities
entities D5
D5 0.7
0.7 -- 21 September 2015 - 696,893 34,565 - - 662,328
Working capital
capital changes
changes 1,896,989 696,893 34,565 - - 2,559,317
Working 1,896,989 696,893 34,565 - - 2,559,317
-- (Increase)
(Increase) in
in trade
trade and
and other
other receivables
receivables and
and other
other assets
assets (99.4)
(99.4) (48.8)
(48.8) The grant on 19 September 2012 included market-based hurdles. Grants from 1 October 2013 includes a market
-- (Increase)
(Increase) in
in inventories
inventories (2.9) (1.7) The
based grant on (relative
hurdle 19 September
TSR) and2012anincluded market-based
EPS component. hurdles. Grants
The Performance fromhave
Rights 1 October 2013 includes
been independently a market
valued. For
(2.9) (1.7)
based
the hurdleTSR
relative (relative TSR) and
component, an EPSwas
valuation component.
based onThe Performance
assumptions Rights have
underlying the been independently
Black-Scholes valued. For
methodology to
-- Increase
Increase in
in trade
trade and
and other
other payables,
payables, accruals
accruals and
and provisions
provisions 62.0
62.0 11.1
11.1 the relative
produce TSR component,
a Monte-Carlo valuation
simulation model.was based
For the EPSon assumptions
component, underlyingcash
a discounted the flow
Black-Scholes methodology
technique was to
utilised. The
-- Increase/(decrease)
Increase/(decrease) in
in tax
tax provisions
provisions 19.9
19.9 (15.9)
(15.9) produce
total a Monte-Carlo
value simulation
does not contain model. For
any specific the EPS
discount for component, a discounted
forfeiture if the employee cash
leavesflow
thetechnique was utilised.
Group during The
the vesting
total value
period. Thisdoes not contain
adjustment, any specific
if required, discount
is based on thefor forfeiture
number if the instruments
of equity employee leaves
expectedthe to
Group during
vest at the of
the end vesting
each
Net
Net cash
cash inflow
inflow from
from operating
operating activities
activities 473.3
473.3 377.9
377.9 period. This adjustment, if required, is based on the number of equity instruments expected to vest at the end of each
reporting period.
reporting period.
Operating
Operating cash
cash flow
flow before
before interest
interest and
and tax
tax was
was $567.9
$567.9 million,
million, up
up 19.0%
19.0% on
on the
the pcp,
pcp, with
with 97%
97% EBITDA
EBITDA to
to cash
cash a Performance rights granted on 19 September 2012 were tested on 19 September 2016 and did not vest. The TSR percentile rank
conversion ratio.
conversion ratio. for the Company
Performance was
rights 46.77%
granted on and TSR was 54.54%;
19 September as a
2012 were resulton
tested these Performance
19 September Rights
2016 and lapsed
did not and
vest.no shares
The TSR were issued
percentile to
rank
a
participants.
for the Company was 46.77% and TSR was 54.54%; as a result these Performance Rights lapsed and no shares were issued to
participants.
The key assumptions underlying the Performance Rights valuations are set out below:
The key assumptions underlying the Performance Rights valuations are set out below:
Average Fair
Share price Expected ValueFair
Average per
at date
Share of
price volatility
Expected in Expected Risk free Performance
Value per
grant
at date of share price
volatility in dividend yield interest
Expected rate Performance
Risk free Right
Effective grant date Test and vesting date grant$ share price% dividend yield
% interest rate
% Right
$
Effective
19 grant2012
September date Test
19 and vesting
September date
2016 3.86$ 25.00 % % %
2.18 % %
2.70 % 2.20$
19 September
1 October 20132012 19 September
1 October 20172016 3.86
2.68 25.00
27.00 % % 2.18
1.75 %
% 2.70
3.03 %
% 2.20
2.01
1
26October 20132014
September 1
26October 20172018
September 2.68
3.31 27.00
27.00 %
% 1.75
2.90 %
% 3.03
2.88 %
% 2.01
2.45
26
21 September
September 2014
2015 26
21 September
September 2018
2019 3.31
4.82 27.00
28.00 %
% 2.90
2.70 %
% 2.88
1.98 %
% 2.45
3.53
21 September
5 October 20162015 21 September
5 October 20202019 4.82
5.89 28.00
25.03 %
% 2.70
2.74 %
% 1.98
1.68 %
% 3.53
4.27
5 October 2016 5 October 2020 5.89 25.03 % 2.74 % 1.68 % 4.27

72
72 73
73
The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities
118 119
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes
Notes to
to the
the financial
financial statements
statements Notes to the financial statements
NOTES
For TOended
THE 30
FINANCIAL STATEMENTS Notes
NOTES to
TOthe financial
THE statements
FINANCIAL STATEMENTS
For the
the year
year ended 30 June
June 2017
2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
G Accounting policies and corporate information instruments (refer note B3);
F11
F11 Auditor's
Auditor's remuneration
remuneration G Accounting policiespolicies
and corporate information instruments
Significant accounting are contained within the − Provision for(refer note B3);of trade receivables (refer
impairment
2017 2016 Significant accounting policies arethey
contained within the Provision
2017 2016 financial statement notes to which relate and are not − note B2); for impairment of trade receivables (refer
$ $ financial in
detailed statement
this section.notes to which they relate and are not − note B2); items (refer note A7); and
$ $ Significant
detailed in this section.
Amounts received
Amounts received or
or due
due and
and receivable
receivable by
by Ernst
Ernst &
& Young
Young (Australia)
(Australia) for:
for: Corporate Information − Significant
− items note
Provisions (refer (referF6).
note A7); and
-- An Corporate Information Group Limited (the Company) is
The Star Entertainment − Provisions (refer note F6).
An audit or review of the Financial Report of the Company and any other
audit or review of the Financial Report of the Company and any other Uncertainty about these assumptions and estimates
entity 899,603 827,499 The Star Entertainment
a company incorporatedGroup Limited (the
and domiciled Company)
in Australia. Theis Uncertainty
could resultabout these assumptions anda estimates
entity in
in the
the consolidated
consolidated group
group 899,603 827,499 in outcomes that require material
a company
Financial incorporated
Report and domiciled
of the Company for theinyear
Australia.
endedThe 30 could result
adjustment in carrying
to the outcomes that ofrequire
amount the asseta ormaterial
liability
-- Other
Other services
services in
in relation
relation to
to the
the Company
Company and and any
any other
other entity
entity in
in the
the Financial
June 2017 Report of the the
comprises Company
Company for the
andyear ended 30
its controlled adjustment to the carrying amount of the asset or liability
in future periods.
consolidated group:
consolidated group: June 2017
entities comprisesreferred
(collectively the Companyto as the and Group).
its controlled
The in future periods.
-- -- entities (collectively
Company's registeredreferred
office is as the3, Group).
to Level 159 William The Changes in accounting policies and disclosures
-- Assurance
Assurance related
related Changes
Company's
Street, Brisbane registered
QLD 4000. office is Level 3, 159 William The Groupinhas accounting
adopted the policies andnew
following disclosures
and amended
-- Other
Other non-audit
non-audit services
services including
including taxation
taxation services
services 272,439
272,439 301,661
301,661 The Group has
accounting adoptedwhich
standards, the following
became new and amended
applicable from 1
Street, Brisbane QLD 4000.
The Company is of the kind specified in Australian accounting
July 2016: standards, which became applicable from 1
1,172,042
1,172,042 1,129,160
1,129,160 The Company
Securities andis of the kind specified
Investments Commission in Australian
(ASIC) July 2016:
Reference Title
Amounts Securities 2016/191.
Instrument and Investments
In accordance Commission (ASIC)
with that Instrument,
Amounts received
received oror due
due and
and receivable
receivable by
by related
related practices
practices of
of Ernst
Ernst &
& Reference
AASB 2014-4 Title
Clarification of Acceptable Methods of
Young (Australia) for: Instrumentin2016/191.
amounts In accordance
the Financial Report withand thattheInstrument,
Directors'
Young (Australia) for: AASB 2014-4 Clarification of Acceptable
Depreciation and Methods of
Amortisation
-- Assurance -- -- amounts
Report have in the been Financial
roundedReport to theand the Directors'
nearest hundred
Assurance related
related services
services Report
thousandhave been unless
dollars, roundedspecifically
to the nearest stated hundred
to be
Depreciation to AASB
(Amendments and 116 Amortisation
and AASB
(Amendments to AASB 116 and AASB
138)
The thousand
otherwise. All dollars,
amounts unless
are inspecifically stated ($).
Australian dollars to The
be
The auditor
auditor of
of the
the Company
Company and
and its
its controlled
controlled entities
entities is
is Ernst
Ernst && Young.
Young. From
From time
time to
to time,
time, Ernst
Ernst &
& Young
Young provides
provides otherwise.isAlla foramounts are in Australian dollars ($). The
AASB 2015-1 138)
Amendments to Australian Accounting
other Company profit organisation.
other services to the
services to the Group,
Group, which
which are
are subject
subject to
to strict
strict corporate
corporate governance
governance procedures
procedures encompassing
encompassing thethe selection
selection Company is a for profit organisation.
AASB 2015-1 Amendments
Standards to Australian
– Annual Accounting
Improvements to
of
of service
service providers
providers and
and the
the setting
setting of
of their
their remuneration.
remuneration. TheThe Chair
Chair of
of the
the Audit
Audit Committee
Committee (or
(or authorised
authorised delegate)
delegate) The Financial Report was authorised for issue by the Standards – Annual
Australian Improvements
Accounting to
Standards
must approve any other services provided by Ernst & Young to the
must approve any other services provided by Ernst & Young to the Group. Group. The Financial
Directors on 23Report
August was2017.authorised for issue by the Australian Accounting
2012-2014 Cycle Standards
Directors on 23 August 2017. AASB 2015-2 2012-2014
Amendments Cycle
to Australian Accounting
Basis of preparation AASB 2015-2 Amendments- to Australian
Standards Disclosure Accounting
Initiative
Basis of preparation
The Financial Report is a general purpose Financial Standards -to AASB
Amendments Disclosure
101 Initiative
The
Report Financial
which has Report
been is a general
prepared purpose Financial
in accordance with the AASB 2014-3 Amendments
Amendments to
to AASB 101 Accounting
Australian
Report which Act
Corporations has2001,
been Australian
prepared inAccounting
accordance with the
Standards AASB 2014-3 Amendments
Standards to- Australian Accounting
Accounting for
Corporations
and other mandatoryAct 2001, Australian
Financial Accounting
Reporting Standards
requirements in Standards
Acquisitions -
of Accounting
Interest for
in Joint
and other mandatory Financial Reporting requirements in
Australia. Acquisitions(AASB
Operations of 1Interest
& AASB in
11) Joint
Australia.
The financial statements comply with International
Operations (AASB 1 & AASB 11)
The adoption of these standards did not have any
The financial
Financial Reporting statements
Standards comply
(IFRS)with International
as issued by the The adoption
material of the
effect on these standards
financial positiondid not have any
or performance of
Financial
InternationalReporting
AccountingStandards
Standards (IFRS) as issued by the
Board. material
the effect
Group, on the disclosures
additional financial position or performance
have been made whereof
International
The financialAccounting
statementsStandards
have beenBoard. prepared under the the Group, additional disclosures have been made where
required.
The
historical cost conventionhave
financial statements beenasprepared
except disclosed under in the required.
Standards and amendments issued but not yet
historical cost
accounting convention
policies below and except as disclosed
elsewhere in the
in this report. Standards and amendments issued but not yet
effective
accounting
The policiespolicies
used inbelow and elsewhere
preparing the financial in statements
this report. effective
The Group has not applied Australian Accounting
The consistent
are policies used with in preparing
those of the the financial
previous yearstatements
except as The Groupandhas notthat
applied Australian Accounting
Standards IFRS were issued or amended but
are consistent
indicated under with those of in
'Changes theaccounting
previous year exceptand
policies as Standards and IFRS thatsignificant
were issued or amended arebut
not yet effective. Those pronouncements
indicated under 'Changes in accounting policies and
disclosures'. not yet effective. Those significant pronouncements are
disclosed in the table below:
disclosures'. disclosed in the table below:
Significant accounting judgements, estimates and Application
Significant Reference Title date
assumptionsaccounting judgements, estimates and Reference Title
Application
date
assumptions AASB 9 * Financial Instruments 1 January 2018
Preparation of the financial statements in conformity with
AASB 15
9 * * Revenue
Financial Instruments 1
1 January
January 2018
Preparation Accounting
Australian of the financial statements
Standards andin conformity
IFRS requires with AASB from Contracts with Customers 2018
Australian Accounting AASB 16
15 ** Revenue from Contracts with Customers 1
1 January
January 2018
management to makeStandardsjudgements, and estimates
IFRS requires and AASB Leases 2019
management that to affect
makethejudgements, estimates and AASB 16 * Leases 1 January 2019
assumptions reported amounts of assets *AASB 9 will replace AASB 139 and introduces a single,
assumptions
and liabilities that
and affect the reported
the disclosure amounts ofliabilities
of contingent assets *AASB 9 will replace
forward-looking expected AASB loss139impairment
and introduces model a and single, a
and
at theliabilities
date of and the disclosure
the financial of contingent
statements and the liabilities
reported forward-looking
substantially expected
reformed approachlossto hedge
impairment model and a
accounting.
at the date
amounts of of the financial
revenues statements
and expenses and the
during the reporting
reported substantially reformedforapproach
AASB 9 is effective to hedgebeginning
annual periods accounting. on or after 1
amounts
period. of revenues and expenses during the reporting AASB 9 2018.
January is effective for annual
The impact of theperiods
adoptionbeginning on or after
is not expected to be 1
period. January 2018.
material. The newTheStandard
impact ofwillthenotadoption
result inisanot expected
significant to be
change
In the process of applying the Group's accounting material.
to The new Standard
the classification will not
of financial result
assets and in aliabilities.
significant change
Based on
In the process
policies, management of applying has the madeGroup's the accounting
following to the
the classification
Group's currentofderivative
financial assets andthe
portfolio, liabilities.
Group Based
does not on
policies, management
judgements, which have the hasmost made the effect
significant followingon the Group's
expect currentimpact
a significant derivative portfolio,
on hedge the Group
accounting. Underdoes
AASB9, not
judgements,
the amounts which have the
recognised mostconsolidated
in the significant effect on
financial expect aeffectiveness
hedge significant impact on hedge
testing accounting.
will only Under AASB9,
be performed on a
the amounts recognised in the consolidated financial
statements: hedge effectiveness
prospective basis. testing will only be performed on a
statements:
− Asset useful lives and residual values (refer notes A4 prospective basis. AASB 111, AASB 118 and related IFRIC
*AASB 15 replaces
Asset
− and useful lives and residual values (refer notes A4
B5); *AASB
Interpretations. AASBAASB
15 replaces 111, AASB
15 provides a new118 fiveand steprelated
approach IFRIC
for
and B5); Interpretations.
revenue AASB in
recognition 15 determining
provides a new when fiveand stephow
approach
revenue for
− Impairment of assets (refer note B6); revenueberecognition
should recognised.inThe determining when
core principle of theandnew how revenue
standard is
− Impairment
− Valuation of of assets (refer note
derivatives andB6); other financial should
that be recognised.
revenue is recognisedThe in
core principlethat
a manner of the new the
depicts standard
transfer is
− Valuation of derivatives and other financial thatpromised
of revenue goods
is recognised in a manner
or services that depicts
to customers the transfer
in an amount that
74
74
of promised goods or services to customers in an amount that 75
75
The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities
120 121
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Notes to the financial statements

Notes
NOTES to
TOthe
For the year
financial
THE
ended 30
statements
FINANCIAL
June 2017 STATEMENTS Notes
NOTES to
TOthe
For the year
financial
THE
ended
statements
FINANCIAL
30 June 2017 STATEMENTS
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
reflects the consideration to which the Group expects to be translation are credited or charged to the income part of the cost of acquisition of the asset or as part are included in the asset's carrying amount or recognised
reflects the
entitled. Under consideration
the approach, to which
revenue theisGroup expects
recognised once to the
be translation
statement with are the credited
exception or charged
of differences to the on income
foreign part
of theofexpense
the costitem of acquisition
as applicable; of the asset or as part are
as aincluded
separate in the asset's
asset, as carrying
appropriate,amount onlyor recognised
when it is
entitled. Under
performance the approach,
obligations revenue
of a contract areissatisfied.
recognised once the statement
currency borrowingswith the exception that areof indifferences
an effective on foreign
hedge as a separate
probable that future asset,economic
as appropriate,benefits only when itwith
associated is
of the expense
− casino revenues, itemdue astoapplicable;
the GST being offset against
performance
The standardobligations of a contract are satisfied.retrospectively currency borrowings
permits entities to apply guidance relationship. These arethat taken aredirectly
in antoeffective
equity until hedgethe casino revenues,
− government taxes;dueandto the GST being offset against
probable
the item willthatflow future to theeconomic
Group and benefits
the costassociated with
of the item
The standard
with comparative permits entities to
balances apply guidance
restated retrospectively
or to recognise the relationship. These areattaken
liability is extinguished, whichdirectly
time they to equity until the
are recognised the
can item
be will flow to the
measured Group and
reliably. All the
other costrepairs
of the item
and
with comparative
cumulative effect of balances
initially applyingrestated or to recognise
the standard as an opening the liability is extinguished, − government
receivables and taxes; and
payables, which are stated with the
in the income statement.at which time they are recognised − receivables
can be measured
maintenance costs arereliably.charged All to theother
income repairs and
statement
cumulative effect
adjustment to retainedof initially applying
earnings on 1 the
Julystandard
2018. as an opening in the income statement. amount of GST included. which are stated with the
and payables,
maintenance
during costs year
the financial are charged
in whichto theare
they income statement
incurred.
adjustment
AASB 15 includes to retained earnings
extensive on 1 July requirements
disclosure 2018. intended Net finance costs amount of GST included. during the financial year in which they are incurred.
AASB
to enable15 users
includes extensive
of financial disclosureto requirements
statements understand judgmentsintended Net
Financefinance incomecostsis recognised as the interest accrues, The net amount of GST recoverable from, or payable to, Costs relating to development projects are recognised as
Financethe income is recognised as the interest accrues, Thetaxation
the net amount of GST
authority recoverable
is included as partfrom, or payable to,
of receivables or Costs relating
to enable
related to users
revenue of recognition.
financial statements to understand judgments using effective interest method. Finance costs an asset whento development projects are recognised as
it is:
using the effective the taxation
payables authority
in the balanceis included
sheet. as part of receivables or
related
The to revenue
Group continues recognition.
to assess the impact of adopting the new consist of interest andinterest method. costs
other borrowing Financeincurred costs in an asset
− probablewhen thatit is:
any future economic benefit associated
consist of interest and other borrowing costs incurred in payables in the balance sheet.
The Group
standard oncontinues
its consolidatedto assess the impact
financial of adopting the new
statements. connection with the borrowing of funds. Finance costs Cash flows are included in the statement of cash flows − probable
with the item thatwill anyflow future economic
to the entity; and benefit associated
standard
*Under AASB on its16, consolidated
the distinction financial statements.
between finance and operating connection
directly with thewith
associated borrowing
qualifying of assets
funds. are Finance costs
capitalised, Cash
on flows basis
a gross are included
and the in GSTthe component
statement of of cash flows with the item will
− it can be measured reliably. flow to the entity; and
*Under isAASB
leases 16, the
eliminated fordistinction
lessees (with between finance and
the exception operating
of short-term directly
all otherassociated
finance costs with qualifying
are expensed assetsinare thecapitalised,
period, in on a gross
arising frombasis and the
investing andGST component
financing of cash
activities, whichflowsis − it can be measured reliably.
leases
and lowisvalue
eliminated
leases). forBoth
lessees (withleases
finance the exception of short-term
and operating leases all other
which theyfinance
occur. costs are expensed in the period, in arising from from,
recoverable investing and financing
or payable activities,
to, the taxation which is
authority If it becomes apparent that the development will not
and low value
will result in the leases). Both finance
recognition leases (“ROU”)
a right-of-use and operating
asset leases
and a which they occur. recoverable If it becomes
occur, the amount apparent
is expensed that the to thedevelopment
income statement.will not
Taxation classified as from, or payable
operating to, the taxation authority is
cash flows.
will result in the
corresponding recognition
lease liability ona right-of-use
the balance (“ROU”)
sheet. The asset and is
liability a classified as operating cash flows. occur, the amount is expensed to the income statement.
corresponding
initially measured lease at liability
the presenton the balance
value sheet.
of future Thepayments
lease liability is Taxation
Income tax Cash and cash equivalents Intangible assets
Income tax tax comprises current and deferred income tax. Cash and Intangible
Goodwill assets
initially
for measured
the lease term at andthethepresent
ROU asset value of futurethe
reflects lease payments
lease liability and cash
cash equivalents
equivalents are carried in the balance
for the
and lease
initial termcosts,
direct and the lessROU any asset
lease reflects
incentivesthe and
lease liability
amounts Income tax tax iscomprises
recognised current
in theand income deferred income
statement tax.
except Cash and cash equivalents arecash
carried in the balance Goodwill represents the excess of the consideration
sheet at face value. Cash and equivalents include
and initialfordirect
required costs, less any lease incentives and amounts
dismantling. Income
to the extenttax isthat recognised
it relatesintothe income
items statement
recognised except
directly in sheet at face value. Cash and cash Goodwill represents
transferred over the the fair excess
value ofofthe theidentifiable
considerationnet
cash balances and call deposits with equivalents include
an original maturity
required
AASB 16formust dismantling.
be implemented retrospectively, however the to the extent
equity, in which thatcase it relates to items recognised
it is recognised in equity. directly in cash balances and orcall less.
deposits withoverdrafts
an originalthatmaturity transferred
assets acquired over the and fair value assumed.
liabilities of the identifiable
Goodwill net is
of three months Bank are
AASB 16
Group hasmust the optionbe implemented
as to whether retrospectively, however the
restate comparatives or equity, in which case it is recognised in equity. of three months or less. Bankanoverdrafts thatof are assets acquired
assessed for impairmentand liabilities on anassumed.
annual basis Goodwill
and is
Current tax is the expected tax payable on the taxable repayable on demand and form integral part the
Groupthe
have has the option
cumulative as toof whether
impact application restate comparatives
recognised in opening or repayable on management
demand and are form an integral part of the assessed
carried at forcostimpairment
less accumulated on an annual impairmentbasis losses.
and is
have the cumulative impact of application recognised in opening Current
income for taxthe is period,
the expected and any taxadjustment
payable on the payable
to tax taxable Group's cash included as a component
retained earnings on 1 July 2019 ("modified retrospective
Group's cash carried
Impairment at cost
lossesless accumulated
on goodwill are notimpairment
reversed. losses.
retained earnings on 1 July 2019 ("modified retrospective
approach"). income
in respect forofthe period,years.
previous and any adjustment to tax payable of cash for themanagement
purpose of the are included of
statement ascash
a component
flows.
of cash for the purpose of the statement of cash flows. Impairment losses on goodwill are not reversed.
approach").
The standard is expected to have a material impact on the in respect of previous years. Trade and other receivables Goodwill is allocated to cash generating units for the
The standard is expected to have
sheeta and material impact on the Deferred tax is provided using the balance sheet method, Goodwill ofis impairment
purpose allocated to cash The
testing. generating
allocation units for the
is made to
Group's consolidated balance income statement.
Deferred tax Trade and other receivables
Trade receivables are recognised and carried at original
Group's
The ROUconsolidated
asset and lease balance sheet
liability and income
is expected statement.
to be material for providing for is
temporary using the balance
provided differences between sheet
the method,
carrying purpose
those cash of impairment
generating units testing. The allocation
or groups is made to
of cash generating
providing of for assets
temporary Trade receivables
settlement amountareless recognised
a provisionand carried at original
for impairment,
The Group's
the ROU asset currentand lease liability
portfolio,is expected
including to be material
long-term for
leases amounts anddifferences
liabilities for between
financial thereporting
carrying those that
units cash aregenerating
expected units to orbenefit
groupsfrom of cash thegenerating
business
amounts of assets and liabilities for taxation
financial purposes.
reporting settlement
where amountBad
applicable. less a provision
debts are writtenforoffimpairment,
when they
the the
for Group's
Sydney current lease portfolio,
and Brisbane including
properties. long-termto leases
The transition AASB purposes and the amounts used for units that are
combination expected
in which to benefit
the goodwill arose.from the business
purposes andtemporary
the amounts used forare taxation purposes. where
are known applicable. Bad debts are
to be uncollectible. written off
Subsequent when they
recoveries of
for
16 the
will Sydney
result inand Brisbaneinproperties.
a change presentation Theintransition to AASB
the consolidated The following differences not provided for: combination in which the goodwill arose.
16 will result
income statement.in a change in presentation
Rental expenses in the
currently consolidated
disclosed under The following temporary differences are not provided for: are known
amounts to be uncollectible.
previously written off are Subsequent
credited to recoveries
the income of Other intangible assets
income statement.
property costs willRental expenses by
be replaced currently disclosed
an interest under
expense − goodwill; and amounts previously
statement. written off are
Other receivables arecredited
carried to atthe income
amortised Other intangible assets assets are not amortised and are
− goodwill; and Indefinite life intangible
property costs
attributable to thewill lease be liability
replaced and by an interestcharge
a depreciation expense for − the initial recognition of an asset or liability in a statement. Other receivables are carried at amortised
cost less impairment. Indefinite life
assessed intangibleforassets
annually are not amortised
impairment. Expenditureand areon
attributable
the ROU asset. to the lease liability and a depreciation charge for − the initial recognition
transaction which is notofa an asset combination
business or liability inand a cost less impairment. assessed
gaming licences annually acquired,for impairment.
casino concessions Expenditure on
acquired,
the ROU
The Group asset.
will continue to assess the impact of the standard
Inventories
transaction
that affect neither which accounting
is not a business nor taxablecombination
profit at and the Inventories gaming licences
computer software acquired,
and other casino concessions
intangibles acquired,
are capitalised
The the
with Group nextwillsteps continue
including to assess
a detailed thereview
impact of of
all the standard
agreements. Inventories include consumable stores, food and
that affect
of the neither accounting nor taxable profit at the Inventories computer
and amortised softwareusing and other intangibles
the straight linearemethod
capitalisedas
with the next steps including a detailed review of all agreements. time transaction. beverage andinclude are carriedconsumable
at the lower stores,
of costfood
and andnet
Basis of consolidation time of the transaction. beverage and areInventories
carried at are the costed
lower ofoncost and net and amortised
described in note using B5. the straight line method as
The amount of deferred tax provided is based on the realisable value. a weighted
Basis of consolidation
Controlled entities realisable value. NetInventories arevalue
costed described in note B5.
The amount
expected of deferred
manner tax provided
of realisation is based on
or settlement of the average basis. realisable is on
thea estimated
weighted Software
Controlled
The Group entities
controls an entity when the Group is exposed, averagepricebasis. Net realisable value is the estimated
expectedamount
carrying manner of realisation
of assets or settlement of the
and liabilities. selling in the ordinary course of business. Softwareassociated with developing or maintaining
Costs
The Group
or has controls
rights, an entity
to variable when
returns fromtheitsGroup is exposed,
involvement with selling price in the ordinary course of business.
carrying amount of assets and liabilities. Costs associated
computer software with programs developing or maintaining
are recognised as
or
thehas rights,
entity andto variable
has the returns
ability from its involvement
to affect those returnswith A deferred tax asset is recognised only to the extent that Property, plant and equipment
Property, plant and computer assoftware
expenses incurred. programsHowever, costs are that recognised
are directlyas
the entity
through and has
its power overthetheability
entity. to affect those returns A is
it deferred
probable taxthat asset is recognised
future taxable profits only to thebeextent
will that
available Refer to notes A4 equipment
and B4 for further details of the
Refer to notes expenses
associatedas with incurred.
identifiable However,
and uniquecostssoftware
that areproducts
directly
through its entities
Controlled power over the entity.
are consolidated from the date control it is probable
against which the thatasset
futurecan taxable profits will be available
be utilised. accounting policy,A4 and B4useful
including for further details ofplant
lives of property, the
accounting policy, including useful lives of property, plant associated with
controlled by the identifiable
Group and andunique
whichsoftware products
have probable
Controlled
is entities
transferred toaretheconsolidated
Group and fromare the date
no control
longer against which the asset can be utilised. and equipment.
Deferred tax assets and deferred tax liabilities are offset and equipment. controlled by the exceeding
economic benefits Group and which beyond
the costs have one probable
year
is transferred
consolidated fromtothethe dateGroup and are no longer
control ceases. Freehold land is included at cost and is not depreciated. economic
are benefits
recognised exceedingassets.
as intangible the costs beyond
Direct costsone year
include
consolidated Deferred
only tax assets
if a legally and deferred
enforceable tax liabilities
right exists to set off arecurrent
offset
Intercompanyfrom the date control
transactions, ceases.
balances and unrealised only if a legally
tax assets against enforceable
current tax right exists and
liabilities to set theoffdeferred
current Freehold
All other land
itemsis included
of property, at cost andand
plant is not depreciated.
equipment are are recognised
staff costs of the as intangible assets. Direct team
software development costs and
include
an
Intercompany
gains on transactions between Group and
transactions, balances unrealised
companies are against current tax liabilities andtaxable
the deferred All other
stated items of cost
at historical property,
net of plant and equipment
depreciation, amortisationare staff costs of portion
appropriate the software of the development
relevant team and an
overheads.
tax assets and liabilities relate to the same entity stated at historicaland cost net of depreciation, amortisation
gains on transactions between Group companies are
eliminated. tax assets andtaxation
liabilities relate to the same taxable entity and impairment, depreciated over periods deemed appropriate meeting
Expenditure portion the of definition
the relevant of anoverheads.
asset is
and the same authority. and impairment, and depreciated
eliminated. and the same taxation authority. appropriate to reduce carrying over values periods deemed
to estimated Expenditure
recognised asmeeting a capitalthe definition and
improvement of anadded asset is
to the
Foreign currency Deferred income tax assets and liabilities are measured appropriate
residual valuesto reduce
over their carrying
useful values to estimated
lives. Historical cost recognised
Foreign currency financial statements are presented in Deferred
at the taxincome rates that tax assets
are expectedand liabilities
to apply aretomeasured
the year original costasofa the capitalasset. improvement
These costs andare added to the
amortised
The consolidated residual
includes values
expenditureover thattheir isuseful
directly lives. Historicalto cost
attributable the original cost
The consolidated financial at thethe taxassetratesisthat are expected to apply to thebasedyear over using theofstraight
the asset. These costs
line method, are amortised
as described in note
Australian dollars ($) which statements
is the Group's arefunctional
presentedand in when realised or the liability is settled, includes expenditure
acquisition of these items. that is directly attributable to the over using the straight line method, as described in note
Australian dollars ($) which is the Group's functional and when
on taxthe asset
rates (and is realised
tax laws) or that
the liability
have been is settled,
enacted based or B5.
presentation currency. acquisition of these items. B5.
presentation currency. on tax rates (and
substantively enacted tax atlaws) that havedate.
the reporting been enacted or Gains and losses on disposals are determined by Casino licences and concessions
Transactions and balances substantively enacted at the reporting date. Gains and the losses on disposals are determined by Casinotolicences
comparing proceeds with the carrying amount and Refer note B5and concessions
for details and accounting policy.
Transactions and balances in foreign currencies are
denominated Goods and Services Tax (GST) comparing
are recognised the inproceeds
the income withstatement.
the carrying amount and Refer to note B5 for details and accounting policy.
Transactionsat denominated
translated the rate of inexchange foreign currencies
ruling on are the Goods
Revenues, and Services
expenses, Tax assets
(GST) and liabilities are are recognised in the income statement.
translated at the rate of exchange ruling on the
transaction date. Revenues, net
recognised expenses,
of the amount assetsof GSTand except: liabilities are When the carrying amount of an asset is greater than its
transaction date. recognised net of the amount of GST except: When
estimatedthe carrying amountamount,
recoverable of an asset it is greater
written thandownits
Monetary items denominated in foreign currencies are − when the GST incurred on a purchase of goods and
− when the GST incurred on a purchase estimated recoverable
immediately to its recoverable amount,amount. it is written down
Monetary items
translated denominated
at the rate of exchange in foreign
ruling atcurrencies
the end of arethe services is not recoverable from of thegoods and
taxation immediately to its recoverable amount.
translated at the rate
reporting period. of exchange
Gains and losses rulingarising
at the endfromof the services is not recoverable
authority, in which case the GST is recognised as from the taxation Costs arising subsequent to the acquisition of an asset
reporting period. Gains and losses arising from the authority, in which case the GST is recognised as Costs arising subsequent to the acquisition of an asset
76 77
76 77
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities The Star Entertainment Group Limited and its controlled entities
122 123
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes
Notes to
to the
the financial
financial statements
statements Notes to the financial statements
NOTES
For TOended
THE 30
FINANCIAL STATEMENTS Notes
NOTES to
TOthe financial
THE statements
FINANCIAL STATEMENTS
For the
the year
year ended 30 June
June 2017
2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017
the holder. A reversal of the expense is only recognised a hedge of the exposure to variability in cash flows that
Impairment
Impairment of of assets Interest
Interest bearing
bearing liabilities
liabilities are
are classified
classified as
as current thetheholder.
assets current in eventA the reversal of the expense
instruments lapse due is only recognised
to cessation of a hedge
are of the exposure
attributable to a particular to variability in cash flows
risk associated withthata
Assets
Assets that
that have
have anan indefinite
indefinite useful
useful life
life are
are not
not subject liabilities unless the
liabilities unless Group has
the Group has anan unconditional
unconditional right
right to in the event within the instruments
subject to employment the vesting lapse period.due to cessation of are attributable
recognised assetto or aliability,
particular risk associated
or a highly probable forecast with a
to
to depreciation or amortisation and are tested annually
depreciation or amortisation and are tested defer
defer settlement
settlement of
of the
the liability
liability for
for at
at least
least 12
12 months employment within the vesting period. recognised asset or liability, orof
a highly probable
annually months transaction, the effective part any gain or lossforecast
on the
for
for impairment.
impairment. Assets
Assets thatthat are
are subject
subject toto depreciation
depreciation or or after the balance
after the sheet date.
balance sheet date. The fair value of the Performance Rights is determined transaction,financial
the effective part ofisany gain or loss on the
Theanfairexternal
value of the Performance Rights is determined derivative instrument recognised directly in
amortisation
amortisation are reviewed for impairment whenever
are reviewed for impairment by valuer and takes into account the terms derivative financial
whenever Leases by equity. When the instrument is recognised
forecast transaction directly in
subsequently
events
events or or changes
changes in in circumstances
circumstances indicate
indicate that
that the
Leases andan external upon
conditions valuerwhich and takes into account
the Performance the terms
Rights were equity. in When the forecast
the Leases results the recognition of transaction
a non financial subsequently
asset or
carrying Leases ofof assets
assets where
where the Group assumes
the Group assumes substantially
substantially and conditions upon which the Performance Rights were
carrying amount
amount maymay notnot be
be recoverable.
recoverable. An An impairment
impairment all
granted. results inthe
liability, the associated
recognition cumulativeof a non financialgain or asset loss or is
loss all the benefits and risks of ownership are
the benefits and risks of ownership are classified
classified as
as granted.
loss is
is recognised
recognised for for the
the amount
amount by by which
which thethe asset's
asset's finance liability, the
removed fromassociated
equity and cumulativeincluded in the gaininitial
or loss cost or is
carrying finance leases.
leases. Under the Company's short term performance plan
carrying amount
amount exceeds
exceeds its its recoverable
recoverable amount.
amount. The The Under
(STPP),the Company's
eligible employees shortreceiveterm two performance
thirds of theirplan removed
other from equity
carrying amount andof included
the noninfinancial
the initialasset cost or
recoverable
recoverable amount
amount is is the
the higher
higher of of an
an asset's
asset's fair
fair value Leases
value Leases of
of assets
assets under
under which
which substantially
substantially all
all the
the risks
risks (STPP),STPP
annual eligible employees
entitlement in receive
cash and twoone thirds
thirdofintheir
the other carrying amount of the non financial asset or
liability.
less costs
costs ofof disposal
disposal and and value
value in in use.
use. For
For the
the purpose
purpose and
less and benefits of ownership are effectively retained by
benefits of ownership are effectively retained by the
the annual
form of STPP
restricted entitlement
shares which in cash areandsubjectone to third in the
a holding liability.
of
of assessing
assessing impairment,
impairment, assetsassets are are grouped
grouped at at the lessor If a hedge of a forecast transaction subsequently results
the lessor are
are classified
classified as
as operating
operating leases.
leases. Payments
Payments form
lock forof restricted
a period shares of twelve which are subject
months. These tosharesa holdingare If athehedge of a forecast transaction
lowest level for which there are separately identifiable in recognition of a financial assetsubsequently results
or financial liability,
lowest level for which there are separately identifiable made
made under
under operating
operating leases
leases are
are charged
charged to the income
to the income lock for ainperiod
forfeited the event of twelve that months.
the employee These shares are
voluntarily in the recognition of a financial
cash
cash flows
flows (cash
(cash generating
generating units).
units). Refer
Refer to note B6
to note B6 for
for statement on
on a a straight
straight line
line basis
basis over
over the
the period
period ofof the
the forfeited then the associated gains asset or financial
and losses thatliability,
were
statement terminatesin from the eventthe Company that the during employee the 12 voluntarily
month then the associated gains are and reclassified
losses that
further
further details of key assumptions included in the
details of key assumptions included in the lease. terminates recognised directly in equity intowere the
lease. holding lock fromperiod. the Company during the 12 month
recognised directlyin intheequity
impairment
impairment calculation.
calculation. holding lock period. income statement same are periodreclassified
or periodsinto the
during
Employee
Employee benefits
benefits income
which the statement
asset acquired in the same period
or liability or periods
assumed affects during
the
The cost is recognised in employment costs, together
Provisions Post-employment
Provisions Post-employment benefits
benefits The cost
with is recognisedincrease
a corresponding in employment in equitycosts, (sharetogether
based which the
income asset acquired
statement (i.e. when or liability
interestassumed
income or affects
expense the
A
A provision
provision is is recognised
recognised inin the
the balance
balance sheet
sheet when
when the The
the The Group's
Group's commitment
commitment to to defined
defined contribution
contribution plans
plans isis with a corresponding
payment reserve) over the increase
serviceinperiod.
equity No (share
expensebased is income
is statement
recognised). For(i.e.
cash when flowinterest
hedges, income or expense
the effective part
Group
Group has a present legal or constructive obligation as
has a present legal or constructive obligation as a limited
a limited to making the contributions in accordance with
to making the contributions in accordance with payment reserve)
recognised for awards over the thatservice
do not period. No expense
ultimately vest. is A is
of recognised).
any gain or loss For on cash theflow hedges,
derivative the effective
financial instrument part
result
result of
of a
a past
past event,
event, and
and itit is
is probable
probable that
that an
an outflow the
outflow the minimum
minimum statutory
statutory requirements.
requirements. There
There isis no
no legal
legal or
or recognised for awardsforthat
liability is recognised the do fair not
value ultimately
of cash vest. settled A of any
is removedgain or from lossequity
on theand derivative
recognised financialin theinstrument
income
of
of economic
economic benefits
benefits will
will be
be required
required to to settle
settle the constructive
the constructive obligation to pay further contributions if
obligation to pay further contributions if the
the liability is recognised
transactions. The fair value for theis fair value ofinitially
measured cash settled
and at is removedin from
statement the same equity and or
period recognised
periods during in thewhich income the
obligation
obligation and
and thethe amount
amount cancan bebe reliably
reliably estimated.
estimated. If fund
If fund does
does not
not hold
hold sufficient
sufficient assets
assets to
to pay
pay all
all employees
employees transactions.
each reportingThe date fairupvalue
to and is measured
including the initially and at
settlement statement
hedged forecastin the same period or periods
transaction affectsduring the which income the
the
the effect
effect is is material,
material, provisions
provisions areare determined
determined by relating
by relating to
to current
current and
and past
past employee
employee services.
services. each reporting
date, with changes date up in to and fair including the settlement
value recognised in hedged forecast
statement. The ineffective transaction part ofaffects
any gain theor income
loss is
discounting
discounting the the expected
expected future
future cash
cash flows
flows atat a
a pre-tax
pre-tax date, with costs. changes in fair value recognised in statement. The ineffective part of any gain or loss is
Superannuation employment recognised immediately in the income statement.
rate
rate that reflects current market assessments of the
that reflects current market assessments of the time
time Superannuation guarantee
guarantee charges
charges are
are recognised
recognised as as employment costs. recognised immediately in the income statement.
value
value of
of money
money and, and, where
where appropriate,
appropriate, the
the risks
risks specific
specific expenses in the income statement as the contributions
expenses in the income statement as the contributions Derivative financial instruments When a hedging instrument expires or is sold,
become
become payable.
payable. A A liability
liability is
is recognised when the
recognised when Derivative When a or hedging instrument expires or is hedge
sold,
to
to the
the liability.
liability. the The Group financialuses derivative instruments
financial instruments to hedge terminated exercised, or the designation of the
Group
Group is required to make future payments as a
is required to make future payments as a result
result of
of Theexposure
Group uses derivative financialand instruments to hedge terminated
relationshipor is exercised,
revokedor the but designation
the hedged of theforecast
hedge
its to foreign exchange interest rate risks
Investment
Investment in in associate
associate and and joint
joint venture
venture entities employees'
entities employees' services
services provided.
provided. its exposure
arising from to operational,
foreign exchange financingand interest rate risks
and investment relationship is is
transaction still revoked
expected to butoccur,the the hedged
cumulative forecast
gain
Associates
Associates are all entities over which the
are all entities over which the Group
Group has transaction is still expected
has Long arising from
activities. operational,with
In accordance financing
its Treasury and Policy,
investment the or loss at that point remainstoinoccur, equitythe and cumulative
is recognised gain
significant
significant influence
influence but but not
not control
control oror joint
joint control.
control. Joint Long service
service leave
leave or
Joint The activities.
Group does In accordance
not hold or withissueits Treasury
derivativePolicy, the
financial in loss at that point
accordance with remains
the above in equitywhenand theis transaction
recognised
control
control isis the
the contractually
contractually agreedagreed sharing
sharing of of the
the joint
joint The Group's net
Group's net obligation
obligation in
in respect
respect ofof long
long term
term service
service Group doesfornot hold purposes.
or issue However, derivativederivatives
financial in accordance with the above when the transaction
benefits, instruments trading occurs. If the hedged transaction is no longer expected
arrangement, which which exists
exists only
only when
when decisions
decisions about about the
the benefits, other than pension plans, is the amount
other than pension plans, is the amount of of occurs. If the then hedged
arrangement, future instruments
that do not qualifyfor trading purposes.
for hedge However,
accounting are derivatives
accounted to take place, the transaction is no longer
cumulative unrealised gainexpected
or loss
relevant
relevant activities
activities require
require unanimous
unanimous consent consent of of the future benefit
benefit that
that employees
employees have
have earned
earned in in return
return for
for to take place,
the their that
for asdotrading
not qualify for hedge accounting are accounted
instruments. recognised in thenequitythe is cumulative
recognised unrealised
immediately gain or in loss
the
parties
parties sharing
sharing control.
control. A A joint
joint venture
venture is is a a type
type of of their service
service in in the
the current
current and
and prior
prior periods.
periods. The The for as trading instruments. recognised in equity is recognised immediately in the
obligation income statement.
arrangement
arrangement whereby
whereby the the parties
parties that
that have
have jointjoint control
control obligation is is calculated
calculated using
using thethe expected
expected future
future Derivative financial instruments are recognised initially at income statement.
increases
increases inin wage
wage andand salary
salary rates
rates including
including related
related on- Derivative financial instruments are recognised Issued capital
of
of the
the arrangement
arrangement have have rights
rights toto the
the net
net assets
assets of of the
the on- fair value at the date the derivative contract isinitially
entered at
costs
costs and
and expected
expected settlement
settlement dates,
dates, and
and is is discounted fair Issued capital
joint
joint venture.
venture. TheThe Group's
Group's investments
investments in in associate
associate and and discounted into value
and are at subsequently
the date the remeasured derivative contract is entered
to fair value at the Issued and paid up capital is recognised at the fair value
joint using
using rates
rates attached
attached to to bonds
bonds with
with sufficiently
sufficiently long into and are reporting
subsequently remeasured to fair value at the Issued
of and paid up capital
the consideration received. is recognised
Issued capital at thecomprises
fair value
joint venture
venture entities
entities areare accounted
accounted for for using
using the the equity
equity long end of each period. The resulting gain or loss is
method
method of accounting, after initially being recognised at
of accounting, after initially being recognised at maturities at the balance sheet date, which have
maturities at the balance sheet date, which have maturity
maturity end of each reporting
recognised immediately period. in The theresulting
incomegainstatement.
or loss is of the consideration
ordinary shares. Any received. Issued capital
transaction costscomprises
directly
dates
dates approximating
approximating to to the
the terms
terms of of the
the Group's recognised immediately income statement. ordinary shares. to the Any issuetransaction
of ordinarycosts directly
cost.
cost. Under
Under the the equity
equity method
method of of accounting,
accounting, the the Group's However, where derivativesinqualify the for cash flow hedge attributable shares are
obligations. However, where derivatives qualify attributable to thein equity, issue net of ofordinary
tax, as a shares
reductionare
investments
investments are are initially
initially recognised
recognised at at cost
cost and and are
are obligations. accounting, the effective portion of for
thecash
gainflow hedge
or loss is recognised directly of
subsequently accounting,
deferred in the effectivewhileportion of the gain portion or loss is recognised
the directly in
share proceeds equity, net of tax, as a reduction of
received.
subsequently adjusted
adjusted to to recognise
recognise the the Group's
Group's share share of of Annual
Annual leave
leave
equity the ineffective
the deferred inin the equity while the ineffective portion is the share proceeds received.
the post-acquisition
post-acquisition profits
profits or or losses
losses of of the
the investee
investee in in Liabilities
Liabilities for
for annual
annual leave
leave are
are calculated
calculated at
at discounted
discounted
recognised income statement.
Operating segment
the income
income statement,
statement, and and the the Group's
Group's share share of of amounts recognised in the income statement.
the amounts based on remuneration rates the Group expects
based on remuneration rates the Group expects The fair value of interest rate swap, cross currency swap Operating
An operating segment
segment is a component of an entity that
movements
movements in in other
other comprehensive
comprehensive income income of of the
the to pay,
pay, including
including related
related on-costs
on-costs when
when the
the liability
liability is
is An operating segmentactivities is a component of anit entity that
to The
and fair value ofcurrency
forward interest rate swap, cross
contracts currency swap
is determined by engages in business from which may earn
investee in other comprehensive income. Dividends expected
investee in other comprehensive income. Dividends expected to to be
be settled.
settled. Annual
Annual leave
leave is
is another
another long
long term
term and forward
reference to market currency valuescontracts
for similarisinstruments.
determinedRefer by engages in
revenues and business activities (including
incur expenses from whichrevenues it may earn and
received
received areare recognised
recognised as as a a reduction
reduction in in the
the carrying benefit
carrying benefit and
and isis measured
measured using
using the
the projected
projected credit
credit unit
unit reference
to note E2to formarket
detailsvalues for similar
of fair value instruments. Refer
determination. revenues and incur
expenses relating expenses (including
to transactions with otherrevenues
components and
amount
amount of the investment. The carrying amount of
of the investment. The carrying amount of equity-
equity- method. expenses relating
method. to note E2 for details of fair value determination. of the same entity),towhose transactions
operating withresults
other arecomponents
regularly
accounted
accounted investments
investments is is tested
tested for for impairment
impairment in in Derivative assets and liabilities are offset and the net of the same
Share reviewed byentity), whoseexecutive
the entity's operating decision
results are regularly
makers to
accordance
accordance with with the
the Group's
Group's policy.
policy. Share based
based payment
payment transactions
transactions Derivative
amount assets in
reported and theliabilities
consolidated are offsetbalance and sheet
the net if, reviewedresources
by the entity's executive decision makers to
The allocate and assess its performance.
The Company operates
Company operates the the Long
Long Term
Term Performance
Performance amount
and only reported
if: in the consolidated balance sheet if, allocate resources and assess its performance.
Interest
Interest bearing
bearing liabilities Plan
liabilities Plan (LTPP),
(LTPP), which
which is is available
available toto employees
employees at at the
the most
most and only if:
− there is a currently enforceable legal right to offset The Group aggregates two or more operating segments
Interest bearing
bearing liabilities
liabilities are
are recognised
recognised initially
initially at
at fair senior
Interest fair senior executive levels. Under the LTPP, employees may
executive levels. Under the LTPP, employees may − there is a currently
the recognised amount; enforceable
and legal right to offset The
whenGroupthey haveaggregates two or more
similar economic operating segments
characteristics, and the
value
value and
and include
include transaction
transaction costs.
costs. Subsequent
Subsequent to to initial become
initial become entitled
entitled toto Performance
Performance RightsRights which
which may
may the recognised amount; and
− there is an intention to settle on a net basis, or to
when
segments they are
have similar
similar in economic
each of the characteristics,
following respects: and the
recognition,
recognition, interest
interest bearing
bearing liabilities
liabilities are
are recognised
recognised at potentially
at potentially convert
convert toto ordinary
ordinary shares
shares inin the
the Company.
Company. there is an segments
nature are
of the similar
productsin each andofservices;
the following respects:
amortised
amortised costcost using
using the
the effective
effective interest
interest rate
rate method. The − realise theintention
assets to and settle settle
on a net thebasis, or to
liabilities −
method. The fair value of Performance Rights is measured
fair value of Performance Rights is measured atat realise the assets and settle the liabilities − typenatureorof class
the productsof customer and services;for the products and
Any
Any difference
difference between
between proceeds
proceeds and and the
the redemption grant simultaneously. −
redemption grant date
date and
and isis recognised
recognised as as anan employee
employee expense
expense − type or class of customer for the products and
services;
value
value is
is recognised
recognised in the income
in the income statement
statement overover the
the (with
(with a a corresponding
corresponding increase
increase in in the
the share
share based
based
simultaneously.
Hedging
period
period of the borrowing using the effective interest rate
of the borrowing using the effective interest rate payment reserve)
reserve) over
over four
four years
years from
from thethe grant
grant date
date − services;
methods used to distribute the products or provide
payment Hedging
Cash flow hedge − methods used to distribute the products or provide
method. irrespective the services; and
method. irrespective of
of whether
whether thethe Performance
Performance RightsRights vest
vest to
to Cash flow
Where hedge financial instrument is designated as
a derivative the services; and
78 Where a derivative financial instrument is designated as 79
78
79
The
The Star
Star Entertainment
Entertainment Group
Group Limited
Limited and
and its
its controlled
controlled entities
entities The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities
124 125
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

Notes to the financial statements Directors' Declaration

Notes
NOTES to
TOthe
For the year
financial
THE
ended
statements
FINANCIAL
30 June 2017 STATEMENTS DIRECTORS’ DECLARATION
For the year ended 30 June 2017
FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017
− nature of the regulatory environment.
− nature of the regulatory environment. In the opinion of the Directors of The Star Entertainment Group Limited (the Company):
Segment results include revenue and expenses directly
Segment results
attributable include and
to a segment revenue
excludeandsignificant
expensesitems.
directly (a) the financial statements and notes of the Group are in accordance with the Corporations Act 2001, including:
attributable to a segment and exclude significant items.
Capital expenditure represents the total costs incurred
Capital
during the expenditure
period to represents
acquire segmentthe total costs including
assets, incurred (i) giving a true and fair view of the Group's consolidated financial position as at 30 June 2017 and of its
during the interest.
capitalised period to acquire segment assets, including performance for the year ended on that date; and
capitalised interest.
Dividend distributions
Dividend distributions
Dividend distributions to the Company's shareholders are (ii) complying with the Accounting Standards and the Corporations Regulations 2001;
Dividend distributions
recognised to the Company's
as a liability in the Group'sshareholders are
financial
recognised
statements inas the a period the the
liability in inwhich Group's financial
dividends are (b) the Financial Report also complies with International Financial Reporting Standards as disclosed in note G; and
statements
declared. in the period in which the dividends are
declared. (c) there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and
Basic earnings per share
payable.
Basic earningsper
Basic earnings pershare
shareis calculated by dividing the net
Basic
earningsearnings perfor
after tax share is calculated
the period by the by dividingaverage
weighted the net
earningsofafter
number tax for
ordinary the period
shares by the during
outstanding weightedtheaverage
period. This declaration has been made after receiving the declarations required to be made to the directors in accordance with
number of ordinary shares outstanding during the period. section 295A of the Corporations Act 2001.
Diluted earnings per share
Diluted earningsper
Diluted earnings per share
shareis calculated by dividing the
Diluted
net earnings
earnings per share to
attributable is calculated by dividing
ordinary equity the
holders Signed in accordance with a resolution of Directors.
net earnings
adjusted by the attributable
after tax effect to of:
ordinary equity holders
adjusted by the afterortaxother
− any dividends effect items
of: related to dilutive
− anypotential ordinary shares deductedrelated
dividends or other items to at
in arriving dilutive
profit
potential ordinary shares deducted
or loss attributable to ordinary equity holders; in arriving at profit
− anyor loss attributable
interest to ordinary
recognised in equity holders;
the period related to
any interest
− dilutive potential recognised in theand
ordinary shares; period related to
− anydilutive potential
other changes ordinary shares;
in income or and
expense that would
− anyresultother
fromchanges in incomeoforthe
the conversion expense
dilutivethat would
potential John O'Neill AO
result from
ordinary shares; the conversion of the dilutive potential Chairman
ordinary shares; Sydney
by the weighted average number of issued ordinary
by the plus
shares weighted average average
the weighted number number
of issued of ordinary 23 August 2017
shares thatpluswould
the weighted
be issuedaverage number of of
on the conversion ordinary
all the
shares
dilutive that would
potential be issued
ordinary on the
shares intoconversion of all the
ordinary shares.
dilutive potential ordinary shares into ordinary shares.

80 81
80
The Star Entertainment Group Limited and its controlled entities
The Star Entertainment Group Limited and its controlled entities
126 127
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017
Ernst & Young Tel: +61 2 9248 5555
200 George Street Fax: +61 2 9248 5959
Sydney NSW 2000 Australia ey.com/au
GPO Box 2646 Sydney NSW 2001
Ernst & Young Tel: +61 2 9248 5555
200 George Street Fax: +61 2 9248 5959
Sydney NSW 2000 Australia ey.com/au
GPO Box 2646 Sydney NSW 2001

Independent Audit or's Report t o t he Members of The St ar Goodwill impairment assessment

Ent er t ainment Group Limit ed Goodwill impairment
Why significant t o theassessment
audit How our audit addressed t he key audit mat t er
Independent Audit or's Report t o t he Members of The St ar
As atsignificant t o thethe
30 June 2017, Group’s consolidated balance Our
Howaudit procedures included the audit
following:
Ent er t ainment
Report GroupofLimit
on t he Audit t he ed
Financial Report
Why audit
sheet included $1,442m of goodwill.
our audit addressed t he key mat t er

As at 30 June 2017, the Group’s consolidated balance •Our

Assessed whether the
audit procedures methodology
included used by the
the following:
Opinion As disclosed
sheet included in $1,442m
Note B6 toofthe consolidated financial
goodwill. Directors met the requirements of Australian
stat ements, the Directors’ assessment of goodwill Accounting St andards
the- AASB 136 Impairment of
Report
We on tthe
have audited hefinancial
Auditreport
of of
t he
TheFinancial Report
Star Entertainment Group Limited (t he Company) and its subsidiaries involves crit ical accounting estimates and assumptions,
• Assessed whether
Assets.
methodology used by the
As disclosed in Note B6 to the consolidated financial Directors met the requirements of Australian
(collectively t he Group), which comprises the consolidated statement of f inancial position as at 30 June 2017, the specifically
Opinion
consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated stat ements, the Directors’ assessment ofcash
relating to f uture discount ed flows.
goodwill Accounting St andards - AASB 136 Impairment of
These
involvesestimates and assumptions,
crit ical accounting estimatessummarised in Note
and assumptions, • Tested the mat hemat ical accuracy of the cash
Assets.
statement of cash flows for the year then ended, notes to the financial statements, including a summary of B6 to the consolidated financial st atements, are flow models.
We have audited
significant the financial
accounting policies,report of The
and the Star Entertainment
directors' declarat ion. Group Limited (t he Company) and its subsidiaries specifically relating to f uture discount ed cash flows.
(collectively t he Group), which comprises the consolidated statement of f inancial position as at 30 June 2017, the impacted by the future
These estimates performance
and assumptions, of the Group,
summarised in Note • Tested the mat hemat ical accuracy of the cash
In our opinion,
consolidated the accompanying
statement financialincome,
of comprehensive report ofconsolidated
the Group isstatement
in accordance with the
of changes in Corporations Act 2001,
equity and consolidated market and regulatory environments.
B6 to the consolidated financial st atements, are •flow
Compared
models.the cash flow forecasts with the Board
including:
statement of cash flows for the year then ended, notes to the financial statements, including a summary of We considered
impacted by thet his to be
future a key audit matter
performance due to the
of the Group, approved f ive-year business plan and long term
significant accounting policies, and the directors' declarat ion. magnitude of the balance and
market and regulatory environments. the significant judgments capit al investthe
• Compared ment plans.
cash flow forecasts with the Board
a) giving a true and fair view of the consolidated f inancial position of the Group as at 30 June 2017 and of it s
and assumpt ions
We considered involved
t his to be ain theaudit
key calculat ion of
matter duetheto Fair
the approved f ive-year business plan and long term
consolidated
In our opinion, financial performance
the accompanying financial for the of
report year
theended
Groupon
is that date; and with the Corporations Act 2001,
in accordance
Value less Cost of Disposal model.
magnitude of the balance and the significant judgments •capit
Together with
al invest ourplans.
ment valuat ion specialists assessed
including:
and assumpt ions involved in the calculat ion of the Fair the assumptions supporting the cash flow
b) complying wit h Australian Accounting Standards and the Corporations Regulations 2001.
a) giving a true and fair view of the consolidated f inancial position of the Group as at 30 June 2017 and of it s Value less Cost of Disposal model. forecasts.
• Together with our valuat ion specialists assessed
consolidated financial performance for the year ended on that date; and
the assumptions supporting the cash flow
Basis for Opinion •forecasts.
Considered the accuracy of the discount rat e and
b) complying wit h Australian Accounting Standards and the Corporations Regulations 2001. the terminal growth rate used with involvement
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our •from our valuation
Considered specialists.
the accuracy of the discount rat e and
Basis
report . Wefor Opinion of the Group in accordance wit h the auditor independence requirement s of the
are independent the terminal growth rate used with involvement
Corporations Act 2001 and the ethical requirement s of the Accounting Professional and Ethical Standards Board’s •from
Tested
our the sensitivit
valuation y analysis performed by t he
specialists.
We conducted
APES 110 Code ourof audit
Ethicsinfor
accordance with
Professional Australian Auditing
Accountants Standards.
(the Code) Our responsibilities
that are relevant to our audit under
of thethose
financial Group focusing on the Cash-Generating Units
standards are furtherWedescribed
have alsoinfulfilled
the Auditor’s Responsibilities for the Audit of the Financial Report section of our
report in Australia. our other et hical responsibilities in accordance with the Code. •where a reasonably
Tested possible
the sensitivit change
y analysis in
performed by t he
report . We are independent of the Group in accordance wit h the auditor independence requirement s of the assumpt ions could cause the carrying amount
Group focusing on the Cash-Generating Units to
We believe that
Corporations Actthe audit
2001 evidence
and we have
the ethical obtaineds is
requirement of sufficient and appropriate
the Accounting Professionalto and
provide a basis
Ethical for ourBoard’s
Standards opinion. exceed
where aits recoverable
reasonably amount.
possible change in
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
Key Audit
report in Mat
Australia. We thave
ersalso fulfilled our other et hical responsibilities in accordance with the Code. assumpt ions could cause the carrying amount to
•exceed
Evaluat edrecoverable
whether theamount.
judgments and estimates
its
We believe
Key that
audit mat theare
t ers audit evidence
those wethat,
mat ters haveinobtained is sufficient
our professional and appropriate
judgment to provide
, were of most a basisinfor
significance our
our opinion.
audit of disclosures in the consolidated financial
t he financial report of the current year. These matters were addressed in the context of our audit of t he financial statements
• Evaluat ed met the requirement
whether s ofand
the judgments Australian
estimates
Key Audit
report as a whole, Mat
and tiners
forming our opinion thereon, but we do not provide a separat e opinion on these mat t ers. Accounting st andards.
disclosures in the consolidated financial
For each mat ter below,
Key audit mat t ers are thoseour description of how
mat ters that, our
in our audit addressed
professional t he ,matt
judgment wereerofismost
provided in that cont
significance ext.audit of
in our statements met the requirement s of Australian
t he have
financial report Accounting st andards.
We fulfilled theofresponsibilities
the current year. These matters
described were addressed
in the Auditor’s in the context
Responsibilities f or t he of our of
Audit audit
t he of t he financial
Financial Report
report
sectionasofaour
whole, and
report in forming
, including in our opinion
relation thereon,
to these mattbut
ers.we do not provide
Accordingly, our aaudit
separat e opinion
included on these
the perf ormancemat of
t ers.
For each matdesigned
procedures ter below, to our description
respond of how our audit
to our assessment of theaddressed t he mattmisstatement
risks of material er is providedofinthethatfinancial
cont ext.report.
The results
We have of ourthe
fulfilled audit procedures, described
responsibilities including the procedures
in the Auditor’sperformed to address
Responsibilities f or t hethe mat ters
Audit below,
of t he provide
Financial the
Report
basis forofour
section ouraudit opinion
report on the
, including in accompanying financial
relation to these report
matt ers. .
Accordingly, our audit included the perf ormance of
procedures designed to respond to our assessment of the risks of material misstatement of the financial report.
The results of our audit procedures, including the procedures performed to address the mat ters below, provide the
basis for our audit opinion on the accompanying financial report .

A member firm of Ernst & Young Global Limited A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation Liability limited by a scheme approved under Professional Standards Legislation

A member firm of Ernst & Young Global Limited

128 82 Liability limited by a scheme approved under Professional Standards Legislation
83129
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED 30 JUNE 2017 FOR THE YEAR ENDED 30 JUNE 2017

Recoverabilit y of t rade receivables

Inf ormat ion Ot her t han t he Financial Report and Audit or’s Report
The directors are responsible for the ot her information. The other informat ion comprises the information included
Inf ormat
in t he ion
Group’s Ot her
2017 t han
Annual Reportt heother
Financial Reportreport
than the financial and andAudit
our or’s Report
auditor’s report thereon. We obtained
Recoverabilit y oft ot rade
Why signif icant receivables
t he audit How our audit addr essed t he key audit mat t er
t he Directors’
The Report
directors are that is tofor
responsible bethe
included in the AnnualThe
ot her information. Report,
otherprior to the
informat iondate of this auditor’s
comprises report , included
the information and we
expect to obtain
in t he Group’s the remaining
2017 Annual Reportsections
otherofthan
the Annual Reportreport
the financial af ter and
the date of this auditor’s
our auditor’s report . We obtained
report thereon.
As
Whydisclosed in Not
signif icant t o teheB2, at 30 June 2017, the Group’s
audit
Our procedures included assessing the overall
How our audit addr essed t he key audit mat t er
consolidated balance sheet included $176.6m of gross reasonableness of the provision f or impairment. In tOur
he Directors’
opinion onReport that is report
the financial to be included
does notincover
the Annual Report,
the other priorion
informat to and
the we
date
doofnot
thisand
auditor’s
will notreport , and
express anywe
trade receivables expect
form ofto obtain the
assurance remainingthereon.
conclusion sections of the Annual Report af ter the date of this auditor’s report .
As disclosed in Notand
e B2,a atprovision
30 June for impairment
2017, of
the Group’s doing so, we: included assessing the overall
Our procedures
$14.0m.
consolidated balance sheet included $176.6m of gross reasonableness of the provision f or impairment. In Our opinion onwit
In connection the financial
h our audit report does not report
of the financial cover ,the
ourother informat ion
responsibility is toand wethe
read do other
not and will notion
informat express
and, inany
doing
trade receivables and a provision for impairment of •doing
Reviewed the Group’s dat a around historical
so, we: form of assurance
so, consider whetherconclusion
the otherthereon.
information is materially inconsistent wit h the financial report or our knowledge
The Directors’ assessment of t rade receivable for collections to determine the reasonableness of obtained in thewit
audit
$14.0m.
impairment involves judgment, specifically relat ing to current provisioning. In connection h ouroraudit
otherwise
of theappears
financialtoreport
be materially misstated. is to read the other informat ion and, in doing
, our responsibility
• Reviewed the Group’s dat a around historical so,based
consider whether thehave
otherperformed
information
t he individual If, on the work we onisthe
materially inconsistent
other informat wit h the
ion obtained financial
prior to thereport
date oforthis
ourauditor’s
knowledge
The Directors’circumstances
assessment of of eachreceivable
t rade debtor. for collections to determine the reasonableness of obtained
report , weinconclude
the auditthat
or otherwise
there is aappears
materialto be materiallyofmisstated.
misstatement t his other informat ion, we are required to report that
impairment involves judgment, specifically relat ing to •current
Testedprovisioning.
the aging of the outstanding receivables
As by selecting a sample and agreeing det ails to fact. We have
If, based on thenothing
work weto have
reportperformed
in this regard.
on the other informat ion obtained prior to the date of this auditor’s
t heaindividual
consequence, recoverability
circumstances of trade
of each debtor.receivables is
a key audit matt er due to the inherent subjectivit y that is support
• Testeding
thedocument ation. report , we conclude that there is a material misstatement of t his other informat ion, we are required to report that
involved in makingrecoverability
judgment s ofin trade
relation to credit
aging of the outstanding receivables Responsibilit
fact. We have nothingies of t he
to report Dir
in this ect ors for t he Financial Repor t
regard.
As a consequence, receivables is by selecting a sample and agreeing det ails to
exposures to det
a key audit matt er ermine the
due to the recoverability
inherent subjectivitofy that
trade
is •support
Select ed
ingadocument
sample ofation.
the larger t rade receivable The directors of the Company are responsible for the preparat ion of the financial report that gives a true and fair
receivables.
involved in making judgment s in relation to credit balances where a provision for impairment of trade Responsibilit
view in accordance with iesAustralian
of t heAccounting
Dir ect ors for and
Standards t hetheFinancial Repor
Corporations Act 2001 tand for such internal
exposures to det ermine the recoverability of trade receivables
• Select ed awas recognised
sample and understood
of the larger the
t rade receivable control as the directors determine is necessary to enable t he preparation of the financial
The directors of the Company are responsible for the preparat ion of the financial report that report that
gives givesand
a true a t rue
fair
receivables. rat ionale where
balances behindathe provisioning
provision by considering
for impairment of trade and
viewfair view and is with
in accordance f ree Australian
from material misstatement,
Accounting whetand
Standards her the
dueCorporations
to fraud or error.
Act 2001 and for such internal
the hist oricalwas
payment patt erns, whether anythe post control as thet he
directors determine is necessary to enable t he preparation of the
receivables recognised and understood In preparing financial report , the directors are responsible for assessing the financial reporttothat
Group’s ability gives aast rue
continue a
year-end
rat ionale payments
behind thehad been received up to t he and fair view and is f ree from material misstatement,
provisioning by considering going concern, disclosing, as applicable, matters relat whet
ing toher dueconcern
going to fraudand
or error.
using the going concern basis of
dat
theehist
of orical
our audit reportpatt
payment anderns,
examining
whethertheany
Group’s
post accounting
available In preparingunless t he directors
t he financial reporteither intend toare
, the directors liquidate the Group
responsible or to cease
for assessing theoperat ions,
Group’s or have
ability no realistic
to continue as a
year-end information
payments had onbeen
individual debtors.
received up to t he alternative but to
going concern, do so. as applicable, matters relat ing to going concern and using the going concern basis of
disclosing,
dat e of our audit report and examining the Group’s accounting unless t he directors either intend to liquidate the Group or to cease operat ions, or have no realistic
•available
Tested ainformation
sample of aged balancesdebtors.
on individual where no Audit or's
alternative Responsibilit
but to do so. ies for t he Audit of t he Financial Repor t
provision was recognised to assess that there were
no indicators of impairment. This included, Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free f rom
• Tested
amongst
a sample
others,
of aged balances
assessing if
where no
payments
Audit
material or's Responsibilit
misstatement, whether dueies fororterror,
to fraud he Audit of an
and to issue t he Financial
auditor’s report thatRepor
includestour opinion.
provision was recognised to assess thathad been
there were
received sinceofthe year-end, reviewing historical Reasonable
Our objectivesassurance is a high
are to obtain level of assurance,
reasonable but is not
assurance about a guarantee
whether that an
the financial auditas
report conducted
a whole isinfree
accordance
f rom
no indicators impairment. This included, with the Australian Auditing Standards
payment pat ternsassessing
amongst others, and examining the Group’s
if payments had been material misstatement, whether due to will
fraudalways detect
or error, anda to
material misstatement
issue an when
auditor’s report it exists.
that Misstatements
includes our opinion.
available information on eachreviewing
debtor. historical can arise f rom
Reasonable fraud oriserror
assurance and
a high areof
level considered
assurance,material if, individually
but is not a guaranteeorthat
in the aggregate,
an audit they in
conducted could reasonably
accordance
received since the year-end, be expected to influence the Standards
economic decisions
with the Australian Auditing will alwaysofdetect
users ataken on the
material basis of thiswhen
misstatement financial report.
it exists. Misstatements
payment pat terns and examining the Group’s
•available
Reviewed the historical provision position canpart
As ariseoff rom fraudinor
an audit error and with
accordance are considered material
the Australian if, individually
Auditing Standards,orwe
in exercise
the aggregate, they could
professional reasonably
judgment and
information on each debtor.
recorded by the Group against actual outcomes for be expected
maintain to influence
professional the economic
scepticism decisions
throughout of users
the audit. Wetaken
also: on the basis of this financial report.
debt recovery
• Reviewed theand/ or write
historical off and position
provision assessed the As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and
accuracy of
recorded by the
the Group’s provisioning.
Group against actual outcomes for Identif
maintain y and assess
professional t he risks
scepticism of material
throughout misstatement
the of the financial report , whether due to f raud or error,
audit. We also:
design and perform audit procedures responsive to those risks, and obtain audit evidence t hat is sufficient
debt recovery and/ or write off and assessed the
and appropriate
Identif to provide
y and assess t he risksa of
basis for our
material opinion. Theofrisk
misstatement theoffinancial
not detecting
reporta, whether
material due
misstatement
to f raud or error,
accuracy of the Group’s provisioning.
resulting
design and from f raud audit
perform is higher than forresponsive
procedures one resulting from error,
to those as fraud
risks, and may
obtain involve
audit collusion,
evidence t hat isforgery,
sufficient
intentional omissions,
and appropriate misrepresentat
to provide a basis for ions, or the override
our opinion. The riskofofinternal control.
not detecting a material misstatement
resulting from f raud is higher than for one resulting from error, as fraud may involve collusion, forgery,
Obtain an understanding
intentional of internal control
omissions, misrepresentat ions, orrelevant to theof
the override audit in order
internal to design audit procedures that are
control.
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
tObtain
he Group’s internal control.
an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
Evaluate theinternal
t he Group’s appropriateness
control. of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
Conclude
and relatedondisclosures
the appropriateness
made by the of the directors’ use of the going concern basis of accounting and, based
directors.
on the audit evidence obtained, whet her a material uncertainty exist s related to events or conditions that
may cast significant
Conclude doubt on t he of
on the appropriateness Group’s ability touse
the directors’ cont
ofinue
the as a going
going concern.
concern basis Ifofwe conclude and,
accounting that based
a
material uncertainty
on the audit evidenceexists, we are
obtained, whetrequired to draw uncertainty
her a material attention inexist
our sauditor’s report
related to events to the related that
or conditions
disclosures in the financial
may cast significant report
doubt on or, if such
t he Group’s disclosures
ability are inadequate,
to cont inue to modifyIf our
as a going concern. opinion. Our
we conclude that a
conclusions are basedexists,
material uncertainty on thewe
audit evidenceto
are required obtained up to the
draw attention indate of our auditor’s
our auditor’s report report. However, fut ure
to the related
event s or conditions
disclosures may cause
in the financial reportt he
or,Group
if suchtodisclosures
cease to continue as a going
are inadequate, toconcern.
modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, fut ure
event s or conditions may cause t he Group to cease to continue as a going concern.

A member firm of Ernst & Young Global Limited A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation Liability limited by a scheme approved under Professional Standards Legislation

A member firm of Ernst & Young Global Limited A member firm of Ernst & Young Global Limited
130
Liability limited by a scheme approved under Professional Standards Legislation
84 Liability limited by a scheme approved under Professional Standards Legislation 85131
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

INDEPENDENT AUDITOR’S REPORT SHAREHOLDER INFORMATION

FOR THE YEAR ENDED 30 JUNE 2017 AS AT 25 AUGUST 2017

ORDINARY SHARE CAPITAL

The Star Entertainment Group Limited has 825,672,730 fully paid ordinary shares on issue.

SHAREHOLDING RESTRICTIONS
Evaluate the overall presentation, structure and content of the f inancial report , including the disclosures, The Star Entertainment Group’s Constitution, as well as certain agreements entered into with the New South Wales Independent
and whether the financial report represents the underlying transactions and event s in a manner that Liquor and Gaming Authority and the Queensland Office of Liquor and Gaming Regulation, contain certain restrictions prohibiting
achieves fair presentation. an individual from having a voting power of more than 10% in The Star Entertainment Group without the written consent of the
Evaluate the overall presentation, structure and content of the f inancial report , including the disclosures,
New South Wales Independent Liquor and Gaming Authority and of the Queensland Minister. The Star Entertainment Group may
and whether the financial report represents the underlying transactions and event s in a manner that
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business refuse to register any transfer of shares which would contravene these shareholding restrictions or require divestiture of the shares
achieves fair presentation.
activities within the Group to express an opinion on t he financial report . We are responsible for the that cause an individual to exceed the shareholding restrictions.
direct ion, supervision and performance of the Group audit. We remain solely responsible for our audit
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business In July 2012, written consent was granted by the New South Wales Independent Liquor and Gaming Authority and the relevant
opinion.
activities within the Group to express an opinion on t he financial report . We are responsible for the
Queensland Minister for Perpetual Investment Management Limited to increase its shareholding in The Star Entertainment
direct ion, supervision and performance of the Group audit. We remain solely responsible for our audit
We communicate wit h the directors regarding, among other matters, the planned scope and timing of the audit and Group from 10% up to a maximum of 15% of issued shares.
opinion.
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
In May 2013, written consent was granted by the New South Wales Independent Liquor and Gaming Authority and the relevant
We
We communicate witdirectors
also provide the h the directors
with aregarding,
st atementamong
that weother
havematters,
compliedthe planned
with scope
relevant andrequirements
ethical timing of the audit and
regarding Queensland Minister for Crown Resorts Limited to increase its potential voting power in The Star Entertainment Group from
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
independence, and t o communicate with them all relationships and other matters that may reasonably be t hought 10% up to an effective maximum of 23% (which may be adjusted in certain circumstances).
to
Webear
also on our independence,
provide and where
the directors with applicable,
a st atement related
that we havesafeguards.
complied with relevant ethical requirements regarding In December 2015, written consent was granted by the New South Wales Independent Liquor and Gaming Authority and the
independence, and t o communicate with them all relationships and other matters that may reasonably be t hought relevant Queensland Minister for Genting Hong Kong Limited and its associates to increase their aggregate potential voting power
From the matters communicated to the directors, we determine those matters t hat were of most significance in the
to bear on our independence, and where applicable, related safeguards. in The Star Entertainment Group from 10% up to an effective maximum of 23% (which may be adjusted in certain circumstances).
audit of the financial report of the current year and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulat ion precludes public disclosure about the matter or when, in extremely
From the matters communicated to the directors, we determine those matters t hat were of most significance in the
rare circumstances, we determine that a matter should not be communicated in our report because the adverse
audit of the financial report of the current year and are therefore the key audit matters. We describe these matters
VOTING RIGHTS
consequences of doing so would reasonably be expected to outweigh the public interest benef its of such
in our auditor’s report unless law or regulat ion precludes public disclosure about the matter or when, in extremely All ordinary shares issued by The Star Entertainment Group Limited carry one vote per share. Performance options and
communication.
rare circumstances, we determine that a matter should not be communicated in our report because the adverse performance rights do not carry any voting rights.
consequences of doing so would reasonably be expected to outweigh the public interest benef its of such
communication. Gambling legislation in New South Wales and Queensland and The Star Entertainment Group’s Constitution contain
Report on t he Audit of t he Remunerat ion Report provisions regulating the exercise of voting rights by persons with prohibited shareholding interests, as well as the
regulation of shareholding interests.
Opinion ont the
Report on heAudit
Remunerat
of t heion Repor t ion Report
Remunerat The relevant Minister has the power to request information to determine whether a person has a prohibited shareholding interest.
We have audited the Remunerat ion Report included in pages 15 to 32 of the directors' report for the year ended If a person fails to furnish these details within the time specified or, in the opinion of the Minister, the information is false
Opinion on t he Remunerat ion Repor t
30 June 2017. or misleading, then the Minister can declare the voting rights of those shares suspended.
We have audited the Remunerat ion Report included in pages 15 to 32 of the directors' report for the year ended Failure to comply with gambling legislation in New South Wales and Queensland or The Star Entertainment Group’s Constitution,
In our opinion, the Remunerat ion Report of The Star Entert ainment Group Limited for the year ended 30 June
30 June 2017. including the shareholder restrictions mentioned above, may result in suspension of voting rights.
2017, complies with section 300A of the Corporations Act 2001.
In our opinion, the Remunerat ion Report of The Star Entert ainment Group Limited for the year ended 30 June
Responsibilit iessection 300A of the Corporations Act 2001. SUBSTANTIAL SHAREHOLDERS
2017, complies with
The following is a summary of the substantial shareholders as at 25 August 2017 pursuant to notices lodged with ASX in accordance
The directors of the
Responsibilit iesCompany are responsible for t he preparat ion and present ation of the Remuneration Report in with section 671B of the Corporations Act 2001:
accordance with section 300A of the Corporations Act 2001. Our responsibilit y is to express an opinion on the
NUMBER OF % OF ISSUED
Remuneration
The directors ofReport, based on
the Company our
are audit conducted
responsible for t hein accordance
preparat with
ion and Australian
present ation Auditing St andards. Report in
of the Remuneration NAME DATE OF INTEREST ORDINARY SHARES (i) CAPITAL (ii)
accordance with section 300A of the Corporations Act 2001. Our responsibilit y is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing St andards. FIL Limited, FIL Investment Management 31 May 2017 49,777,604 6.03%
(Australia) Limited and FIL Pension Management

Commonwealth Bank of Australia 16 June 2017 53,280,893 6.45%

and its related bodies corporate
Ernst & Young
Yarra Funds Management Limited, 6 July 2017 41,568,222 5.0345%
Ernst & Young Yarra Capital Management Holdings Pty Ltd,
Yarra Management Nominees Pty Ltd, AA Australia
Finco Pty Ltd, TA SP Australia Topco Pty Ltd and
TA Universal Investment Holdings Ltd
John Robinson
Partner Ellerston Capital 13 July 2017 41,896,846 5.07%
Sydney
John Robinson
23 August 2017 Perpetual Limited and its related bodies corporate 14 July 2017 121,592,298 14.73%
Partner
Sydney (including Perpetual Investment Management Limited)
23 August 2017 (i) As disclosed in the last notice lodged with the ASX by the substantial shareholder.
(ii) The percentage set out in the notice lodged with the ASX is based on the total issued share capital of The Star Entertainment Group Limited at the date of interest.

A member firm of Ernst & Young Global Limited

Liability limited by a scheme approved under Professional Standards Legislation

132 A member firm of Ernst & Young Global Limited 86 133

Liability limited by a scheme approved under Professional Standards Legislation
THE STAR ENTERTAINMENT GROUP ANNUAL REPORT 2017

SHAREHOLDER INFORMATION SHAREHOLDER INFORMATION

AS AT 25 AUGUST 2017 AS AT 25 AUGUST 2017

LESS THAN MARKETABLE PARCELS DISTRIBUTION OF SECURITIES HELD

There were 6,736 shareholders holding less than a marketable parcel of 95 ordinary shares (valued at $500 or less, based on a market ORDINARY SHARES PERFORMANCE RIGHTS 1
price of $5.28) at the close of trading on 25 August 2017 and they hold a total of 428,124 ordinary shares.
RANGE OF HOLDING NO. OF HOLDERS NO. OF SECURITIES NO. OF HOLDERS NO. OF SECURITIES

SECURITIES PURCHASED ON-MARKET 1 to 1,000 48,945 16,908,427 0 0

The following securities were purchased on-market during the financial year for the purposes of The Star Entertainment Group’s
Short Term Performance Plan (STPP) and General Employee Share Plan (GESP). 1,001 to 5,000 19,762 41,651,579 0 0

5,001 to 10,000 2,433 16,910,470 0 0

NUMBER OF SHARES PURCHASED AVERAGE PRICE PAID PER SHARE
10,001 to 100,000 1,078 21,625,678 9 353,899
Ordinary Shares (for STPP) 613,992 $5.75
100,001 and over 63 728,576,576 8 2,865,363
Ordinary Shares (for GESP) 30,177 $5.7295
Total 72,281 825,672,730 17 3,219,262
TWENTY LARGEST REGISTERED SHAREHOLDERS – ORDINARY SHARES* 1. Performance Rights were issued pursuant to The Star Entertainment Group’s Long Term Performance Plan. Refer to the Remuneration Report for more information about
The Star Entertainment Group’s Long Term Performance Plan.
NUMBER OF SHARES % OF ISSUED
RANK NAME HELD CAPITAL
VOLUNTARY ESCROW SHAREHOLDER ENQUIRIES
1. HSBC CUSTODY NOMINEES 256,525,111 31.07%
There are no securities under voluntary escrow. Investors seeking information about their shares in The Star
2. J P MORGAN NOMINEES AUSTRALIA LIMITED 167,107,559 20.24% Entertainment Group should contact The Star Entertainment
SHARE BUY-BACKS Group’s share registry. Investors should have their Shareholder
3. CITICORP NOMINEES PTY LIMITED 75,064,095 9.09% Reference Number (SRN) or Holder Identification Number
There is no current or planned buy-back of The Star
(HIN) available to assist the share registry in responding to
Entertainment Group’s shares.
4. NATIONAL NOMINEES LIMITED 71,525,994 8.66% their enquiries.

5. BNP PARIBAS NOMINEES PTY LTD <AGENCY LENDING DRP A/C> 34,936,431 4.23% ANNUAL REPORT
SHARE REGISTRY
This Annual Report is available on-line from The Star
6. CITICORP NOMINEES PTY LIMITED <COLONIAL FIRST STATE INV A/C> 30,218,655 3.66% Entertainment Group’s website: LINK MARKET SERVICES LIMITED
www.starentertainmentgroup.com.au. Address: Level 12, 680 George Street
7. BNP PARIBAS NOMS PTY LTD <DRP> 28,468,874 3.45% Sydney NSW 2000
Annual Reports will only be sent to those shareholders who have
8. UBS NOMINEES PTY LTD 25,228,696 3.06% requested to receive a copy. Postal
Shareholders who no longer wish to receive a hard copy of the address: The Star Entertainment Group Limited
9. AMP LIFE LIMITED 4,556,733 0.55% Annual Report or wish to receive the Annual Report electronically C/- Link Market Services Limited
are encouraged to contact the share registry. This will assist Locked Bag A14
10. RBC INVESTOR SERVICES AUSTRALIA NOMINEES PTY LTD <BKMINI A/C> 4,036,871 0.49% Sydney South NSW 1235
with reducing the costs of production of the hard copy of the
Annual Report. Australia
11. WOODROSS NOMINEES PTY LTD 3,972,776 0.48%
Telephone: +61 1300 880 923 (toll free within Australia)
12. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED <NT-COMNWLTH SUPER CORP A/C> 3,233,380 0.39% WEBSITE Facsimile: +61 2 9287 0303
The Star Entertainment Group’s website E-mail: starentertainment@linkmarketservices.com.au
13. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA 2,693,299 0.33% Website: www.linkmarketservices.com.au
www.starentertainmentgroup.com.au offers investors a wide
14. SBN NOMINEES PTY LIMITED <10004 ACCOUNT> 2,265,400 0.27% range of information regarding its activities and performance,
including Annual Reports, interim and full year financial results, GENERAL ENQUIRIES
15. SEYMOUR GROUP PTY LTD 1,750,000 0.21% webcasts of results and Annual General Meeting presentations, Investor information is available on The Star Entertainment
major news releases and other company statements. Group’s website www.starentertainmentgroup.com.au,
16. BNP PARIBAS NOMS (NZ) LTD <DRP> 1,393,030 0.17% including major announcements, Annual Reports, and
SHAREHOLDER RELATIONS general company information.
17. CS THIRD NOMINEES PTY LIMITED <HSBC CUST NOM AU LTD 13 A/C> 1,282,637 0.16%
Investors seeking more information about the Company are
18. RBC INVESTOR SERVICES AUSTRALIA NOMINEES PTY LTD <VFA A/C> 1,271,059 0.15% invited to contact The Star Entertainment Group’s Shareholder 2017 CORPORATE GOVERNANCE STATEMENT
Relations Team: The 2017 Corporate Governance Statement can be
19. MUTUAL TRUST PTY LTD 1,206,724 0.15% found on The Star Entertainment Group’s website
Address: GPO Box 13348
George Street Post Shop www.starentertainmentgroup.com.au/corporate-governance.
20. PACIFIC CUSTODIANS PTY LIMITED <SGR PLANS CONTROL A/C> 1,187,005 0.14%
Brisbane QLD 4003
Total of top 20 registered shareholders 717,924,329 86.95% 2017 ANNUAL GENERAL MEETING
Telephone: +61 7 3228 0000
*on a grouped basis Facsimile: +61 7 3228 0099 The Annual General Meeting of The Star Entertainment
Email: investor@star.com.au Group Limited will be held on Thursday, 26 October 2017 in
the Sydney Lyric Theatre at The Star Sydney, 80 Pyrmont Street,
Pyrmont, New South Wales, commencing at 11:00am
(Sydney time).

134 135
THE STAR ENTERTAINMENT GROUP
COMPANY DIRECTORY
REGISTERED OFFICE
The Star Entertainment Group Limited
Level 3, 159 William Street
Brisbane Qld 4000
Telephone: + 61 7 3228 0000
Facsimile: + 61 7 3228 0099
Email: investor@star.com.au
WEBSITE
www.starentertainmentgroup.com.au
NEW SOUTH WALES OFFICE
Ground Floor, 60 Union Street
Pyrmont NSW 2009
Telephone: + 61 2 9657 7600
QUEENSLAND OFFICE
Level 3
159 William Street
Brisbane QLD 4000
Telephone: + 61 7 3228 0000
STOCK EXCHANGE LISTING
The Star Entertainment Group’s
securities are quoted on the Australian
Securities Exchange (ASX) under the
share code “SGR”.
THE STAR SYDNEY
80 Pyrmont Street
Pyrmont NSW 2009
Reservations: 1800 700 700
Telephone: + 61 2 9777 9000
www.thestarsydney.com.au
THE STAR GOLD COAST
Broadbeach Island
Gold Coast QLD 4218
Reservations: 1800 074 344
Telephone: + 61 7 5592 8100
www.thestargoldcoast.com.au
TREASURY CASINO
AND HOTEL BRISBANE
George Street
Brisbane QLD 4000
Reservations: 1800 506 889
Telephone: + 61 7 3306 8888
www.treasurybrisbane.com.au
136
QUEEN’S WHARF BRISBANE KEY DATES FOR FY2017/18*
GENERAL ENQUIRIES FY2017 FULL YEAR RESULTS
Telephone: 1800 104 535 ANNOUNCEMENT
Email: 23 August 2017
qwbenquiries@destinationbrisbane.com.au
www.queenswharfbrisbane.com.au FINAL DIVIDEND RECORD DATE
29 August 2017
AUDITOR FINAL DIVIDEND PAYMENT DATE
Ernst & Young 26 September 2017
2017 ANNUAL GENERAL MEETING
ABOUT THIS ANNUAL REPORT 26 October 2017
CURRENCY
FY2018 HALF YEAR RESULTS
References to currency in this Annual
ANNOUNCEMENT
Report are in Australian Dollars unless
16 February 2018
otherwise stated.
2018 FINANCIAL YEAR END
COPYRIGHT
30 June 2018
Information in this report has been
prepared by The Star Entertainment FY2018 FULL YEAR RESULTS
Group Limited, unless otherwise indicated. ANNOUNCEMENT
Information may be reproduced provided 24 August 2018
it is reproduced accurately and not in a
misleading context. Where the material 2018 ANNUAL GENERAL MEETING
is being published or issued to others, 1 November 2018
the sources and copyright status should *Dates are subject to change
be acknowledged.
INVESTMENT WARNING
This Annual Report may include
forward looking statements and
references which, by their very nature,
involve inherent risks and uncertainties.
These risks and uncertainties may be
matters beyond The Star Entertainment
Group’s control and could cause actual
results to vary (including materially)
from those predicted.
Forward looking statements are not
guarantees of future performance. Past
performance of shares is not indicative
of future performance and should not
be relied upon as such. The value of
investments and any income from them
is not guaranteed and can fall as well
as rise. The Star Entertainment Group
recommends that investors make their
own assessments and seek independent
professional advice before making
investment decisions.
PRIVACY
The Star Entertainment Group respects
the privacy of its stakeholders. The Star
Entertainment Group’s Privacy Policy
Statement is available on The Star
Entertainment Group’s website at
www.starentertainmentgroup.com.au.
ANNUAL REPORT 2017