• Body: This section will provide a brief evaluation of the profitability, liquidity, asset efficiency and gearing of the company. Reflect on the group discussions to assist in your analysis. Due to the length of the response, students will be required to summarise and respond on the overall evaluation of the profitability, liquidity, asset efficiency and gearing of the company and not the individual ratio outcomes.
• Conclusion:Drawtogetherforthereaderthemainfindingsandwhatthesefindingsmeaninrelationtotheanalysisdiscussedinthebodyoftheresponse.Therecommendationstatedinthenextsectionwilllogicallyflowfromtheseconclusions.Theconclusionsshouldbefirmlyandbrieflystated.Donotintroducenewinformation.

all calculations on the excel. and three annual reports just for help you get the information, even you use it or not. Requirements are write down it like a paragraph. please cover all the informationconcise and focused. any missing information can ask me.

annual report 2012 Experience / excitement / energy / enticeMENT / evolUTION / elation / enjoyment / exhilaration / elegance / / Treasury Casino and Hotel Brisbane / contents Echo Entertainment Group launched The Star in the 2012 financial year, heralding a new era in entertainment in Sydney and driving visitation and tourism growth. Investment in tourism infrastructure commenced in Queensland, with exciting opportunities presented for additional investment in Brisbane and the Gold Coast. Highlights 2 Award-winning Properties 5 Chairman's Message 6 Letter from the Chief Executive Officer 8 Echo Entertainment Group at a Glance 11 Our Venues 14 // The Star 15 Our Queensland Venues 17 // Overview 17 // Jupiters Hotel & Casino Gold Coast 19 // Treasury Casino and Hotel Brisbane 21 // Jupiters Townsville Hotel and Casino 23 Responsible Gambling 24 Talent 26 // Health and Safety ANNUAL GENERAL MEETING The Annual General Meeting of Echo Entertainment Group Limited will be held at the Jupiters Theatre, Jupiters Hotel & Casino, Broadbeach Island, Gold Coast, Queensland, on Thursday 25 October 2012 at 10:00am (Queensland time). 29 Helping Our Environment Echo Entertainment Group Limited ACN 149 629 023 28 // Echo Culinary Institute 30 Community 32 Board of Directors 34 Casino Managing Directors 36 Corporate Governance Statement 37 Financial Report Shareholder Information Company Directory 49 120 inside back cover / highlights VIP main gaming floor non-gaming EGM 56.6% 4,000 capacity entertainment centre 6.8% 4.6% 2.3% 20 restaurants, bars and cafes 16 room spa the star features casino revenue increase 19 brisbane 32% 5 Sydney 1 2 jupiters townsville hotel and casino echo culinary school apprentice distribution by state (25 total nationally) the star jupiters hotel & casino gold coast 1 treasury casino and hotel brisBane 68% awards won per property 217 52 110 870 52 tonne reduction in landfill waste by jupiters townsville gro up limited annu al $870 million redevelopment of The Star\u0003 tertain ment 110 charities have received over $90,000 from the open your hearts program / echo en $217.9 million Reported earnings before interest and tax report 2012 3 4 / \u0007 ward-winning A Properties / the star launch The Star Jupiters Hotel & Casino Gold Coast Australian National Construction Review - Construction Excellence Award 2011 - The Star Queensland Hotels Association Awards For Excellence 2011 - Responsible Service - Gaming International Hotel Awards 2012 - Best New Construction and Design, Australia and Asia Pacific region - The Darling Conde Nast Traveller - Top 60 Best New Hotels in the World - The Darling The Weekend Australian Magazine - inaugural Hot 50 Restaurant Awards - Momofuku Seiobo Jupiters Townsville Hotel and Casino Queensland Hotels Association Awards for Excellence 2011 / Best Superior Accommodation 4-4.5 Star - Jupiters Townsville Hotel / Best Casual Dining, Accommodation Division - Aqua Restaurant Wine Spectator Restaurant Wine List Awards 2012 The Australian Good Food Travel Guide 2012 Chef Hat - Essence Restaurant / Best of Award of Excellence - Black by Ezard After winning the North Queensland Meetings and Business Tourism and Deluxe Accommodation Awards in 2007, 2008 and 2009, in 2010 Jupiters Townsville was inducted into the North Queensland Tourism Awards Hall of Fame in both categories. / Best of Award of Excellence - Balla Gourmet Traveller Wine List of the Year Awards 2012 / One Glass - Sokyo; Momofuku Seiobo / Three Glasses - Black by Ezard; Balla report 2012 / Two Glasses - Bistro 80 limited annu al / Best Restaurant, Accommodation Division - Essence Restaurant gro up Best in Sydney Awards, Alternative Media Group - Best Nightclub - Marquee tertain ment MBA Excellence in Construction Awards (for interior fitout) - Cherry Restaurant and Catering Queensland Savour Awards for Excellence 2011, Regional Winner - Best Asian Restaurant - Marco Polo Restaurant / echo en Conde Nast Traveller - Best New Restaurants of 2012: Hot Tables - Balla Treasury Casino and Hotel Brisbane 5 /\u0007 chairman's message The 2012 financial year, Echo Entertainment Group Limited's first standalone year since its listing in June 2011, was highlighted by the successful launch of Sydney's leading entertainment venue The Star. This expansion delivered the multiple award-winning new boutique hotel The Darling, Australia's 'hottest' restaurant Momofuku Seiobo, new VIP premium gaming venues and internationally renowned nightlife venue Marquee The Star. Significant growth in the international VIP business was also achieved. / john o'neill AO 6 These highlights were tempered by the significant challenges experienced in the third quarter, in particular from the sustained negative media exposure and management changes following the departure of The Star's Managing Director and the subsequent section 143 Casino Control Act (NSW) Inquiry. In addition, market conditions proved tough and the business incurred a range of unforeseen one-off charges that further depressed earnings. The significant items totalled $74.1 million and were announced to the market in the Renounceable Entitlement Offer Presentation dated 14 June 2012. The reported statutory net profit after tax (NPAT) including significant items was $42.2 million. As Echo Entertainment was part of the Tabcorp Holdings Limited group until its demerger, the NPAT is not comparable to previous years, given that interest and tax charges in the 2011 financial year were not reflective of future levels. Reported earnings before interest and tax (EBIT) was $217.9 million (excluding significant items), down 38.9% on the prior period. On a normalised basis, Echo Entertainment delivered EBIT for the full year of $271.3 million (excluding significant items), down 11.2% on the previous year. The benefits of solid volume growth across the international VIP business and the core business at The Star were offset by a number of items. These include higher initial operating expenses associated with the opening phase of The Star, higher depreciation and amortisation as a result of the capital expenditure undertaken at The Star and a VIP business win rate below theoretical and historical levels during the second half. Echo Entertainment is positioned to continue with its strategy and direction centred around the four pillars - delivering memorable experiences to our customers, based on superior service levels and great entertainment; attracting and rewarding customers with a leading direct marketing and loyalty program; growing the international premium business regionally and delivering on the investment program which will see its casino properties develop into international entertainment destinations. This year Echo Entertainment farewelled John Story who had chaired the company through the demerger from Tabcorp to its inception. We thank John for his tireless efforts to deliver the demerger and steer the company through the volatile times that we have experienced. Echo also welcomed Ms Anne Brennan and Mr John Redmond to the Board of Directors as Non-Executive Directors, following their receipt of all relevant regulatory approvals. Ms Brennan is an experienced non-executive director and audit committee member with extensive chartered accounting experience. Mr Redmond offers a wealth of international casino management experience including an executive management career spanning more than 20 years in the United States of America. report 2012 September 2012 limited annu al John O'Neill AO Chairman gro up On behalf of the Board, I thank management and all staff for their efforts, contributions and energy during the year. I also thank all of our shareholders for your ongoing support of Echo Entertainment's vision. tertain ment The company's ongoing investment in New South Wales and Queensland is a show of its great confidence in Australia's tourism industry and its potential for continued, significant growth in the coming years. Echo Entertainment will continue to work with government and other stakeholders to develop Australia's tourism infrastructure. / echo en In June, Echo Entertainment launched a capital raising in the form of a fully underwritten 1 for 5 accelerated renounceable entitlement offer (Entitlement Offer) of new ordinary shares at an offer price of $3.30 per share. The Entitlement Offer was successfully completed with strong demand from the company's institutional shareholders and with the retail tranche being well supported. In conjunction with the Entitlement Offer, the company also successfully concluded its discussions with its banks and US Private Placement note holders to modify the terms of its respective debt facilities. The net proceeds of approximately $443 million from the Entitlement Offer were used to repay debt and improve the company's capital structure in light of the stronger than expected performance of the international VIP business. Significant capacity and product improvements have been delivered at The Star. The addition of the new 4,000 person capacity Events Centre at The Star early in the 2013 calendar year will mark the completion of a transformational investment in Australia's largest city. Echo Entertainment is well poised to continue to maximise the benefit of its valuable, long-term (and until 2019, exclusive) New South Wales casino licence. Similarly, Echo Entertainment continues to work with the new Queensland Government to optimise the potential development opportunities in that market. While trading conditions generally remain challenging in Queensland, Echo Entertainment supports the Queensland Government's strategy to achieve investment in key tourism-driving assets and sees the potential to also create world class destinations in Queensland to complement the investment at The Star. 7 /\u0007 letter from the CHIEF EXECUTIVE OFFICER Overview The 2012 financial year marked Echo Entertainment Group Limited's first full year of operations after demerging from Tabcorp Holdings Limited in June 2011. The year was one of transition as we completed and launched the bulk of the $870m redevelopment of our largest asset, The Star, progressively from September 2011. The expansion, which began in FY09, is now nearing completion. The last outstanding addition to the casino is the Events Centre which is scheduled to be operational from January 2013. We are looking forward to FY13 with optimism as we complete the transformation of The Star to a world class entertainment destination and focus on driving improved operational momentum in all of our properties. / larry mullin 8 Casino operating performance Our properties experienced challenging conditions in FY12. Earnings were impacted by a soft consumer environment across both New South Wales and Queensland and periods of disruption and openings as we completed a large portion of The Star redevelopment. In addition, trading at The Star in 3Q12 was negatively impacted by the sustained negative media exposure and management changes following the departure of the Managing Director and the section 143 Casino Control Act 1992 (NSW) inquiry, which concluded in April 2012. Following the conclusion of the inquiry, revenue across The Star has built momentum. Across our four properties, electronic gaming machine revenues grew 2.3% and main gaming floor revenues grew 6.8%, while private gaming room revenue was down 1.54%. VIP revenue was again strong, with revenue up 56.6% to $359 million on a normalised basis (down 1.8% to $275.1 million on an actual basis). Non-gaming revenue grew 4.6% in FY12 with solid growth at The Star offset by softness in our Queensland properties. Non-gaming revenue improved over the course of the year at The Star as the new venues gained traction with limited cannibalisation of existing venues evident. Queensland was negatively impacted by disruptions in the Gold Coast theatre and some food and beverage venues, as refurbishments took place. Operating expenses (excluding one-off pre-opening expenses) were up 10.2%, driven by the significant expansion in the operations at The Star during the year. With the disruptions and substantial part of new openings now behind us, the full focus is on driving revenue and operational efficiency across all of our properties. We expect The Star to see consistent solid growth as the new product and entertainment destination evolves. Our Queensland property revenue growth will likely be driven more by underlying macro-economic factors in the near term. The $870 million investment made in Sydney has not only provided a significant capacity increase to the casino and non-gaming and entertainment offering, but has also elevated our property to truly compete on the world stage. While a large part of our business is currently derived from within an hour's travel of the properties, Echo Entertainment is increasingly becoming an international business. Our international VIP business has been boosted by the significant new facilities opened at The Star in FY12 and planned to open in Queensland once the Project Icon development is completed. Our casinos already attract a large amount of patronage from overseas, particularly from the Asian region, and we expect this to grow significantly in the years to come. We made a number of strides forward on our service levels across The Star and particularly catered to the international VIP segment, successfully, during FY12. This positions us well to continue to attract the most discerning customers with a unique customer experience. The international VIP market is becoming more competitive as integrated resorts throughout Asia continue to receive support from their Governments. We must ensure our facilities and service levels can compete on a world stage. We look forward to working with governments and other stakeholders to build on Australia's strengths as an attractive tourism destination. September 2012 report 2012 Larry Mullin Chief Executive Officer & Executive Director limited annu al I sincerely thank the Board, management and staff for their contribution in FY12 which has proven to be a lot more challenging than anticipated at the outset. gro up FY12 was another productive year in terms of capital expenditure works across our properties. We invested $212 million on the expansion of The Star during FY12 and as at 30 June 2012 we estimate that the project was around 90% complete. Project Star remains on-time and on budget with the substantial part of the redevelopment completed and opened during FY12. The Events Centre, which is a multi-use entertainment facility capable of catering for concerts of up to 4,000 people, banquet for 1,500 guests, conventions and trade shows, is scheduled to commence operations in the new year. The completion of the Events Centre will mark the completion of Project Star and the transformation of our largest property into a world class integrated entertainment destination. Echo Entertainment's properties have made a solid start to the 2013 financial year. tertain ment Capital expenditure programs Outlook / echo en A number of significant items also impacted the group results in FY12 which total $74.1 million pre-tax. These costs relate to pre-opening expenses associated with the opening of The Star ($37.8 million), a charge associated with the implementation of a cost optimisation program initiated across the group ($6 million) and a write-down associated with the liquidation of Silkstar, a marketing agent for the VIP business ($30.3 million). We are also progressing our planning for the redevelopment of our Queensland casinos. Our secure long-term licences in Queensland provide significant upside potential and we continue to work with the new government in Queensland to determine the scale and nature of the investment we make in those assets. 9 10 / The Darling hotel / \u0007echo entertainment group AT A gLANCE The Star Sydney's new, one-of-a-kind entertainment venue, The Star, was officially relaunched on 15 September 2011, with many international entertainment stars participating in the spectacular opening celebrations. The $870 million transformation of Star City includes the re-orientation of the building to embrace Sydney Harbour and the city skyline. Now almost complete, The Star boasts more than 20 restaurants, bars and cafes, a new luxury boutique hotel and 16-room spa, high-end retail collection and upscaled gaming areas. Once complete, the complex will also include a 4,000 capacity Events Centre. The restaurants include Momofuku Seiobo by David Chang, chef and owner of New York's two-Michelin star Momofuku. Momofuku Seiobo took out the top honour at The Weekend Australian Magazine's inaugural Hot 50 Restaurant Awards. Stephano Manfredi's Milanese offering, Balla, was also named among Conde Nast Traveller's Hot 50 restaurants for 2012. The redevelopment represents one of the biggest tourism and entertainment investments in Australia today. The Star is a total entertainment complex which aspires to position Sydney as the premiere tourist destination in Australia and the Asia Pacific. Located in Pyrmont in Sydney, New South Wales, the casino was originally established in 1995. Jupiters Hotel & Casino Gold Coast ted annu al report 2012 Established in 1985, the property is at the beginning stages of a multi-year, multi-million dollar refurbishment program to create a world-class, integrated casino resort that will provide much-needed tourism infrastructure to the Gold Coast and drive tourism growth. nment g ro up limi Offering a vibrant mix of fun and relaxation, recreational facilities include the 2,000 seat state-of-the-art theatre, swimming pools, spas, a gymnasium, massage services, hair and beauty salons, and tennis courts. enterta i Located in the heart of Australia's premiere tourist destination, the Gold Coast, Jupiters Hotel & Casino Gold Coast combines the luxury of an international resort with award-winning restaurants, lively bars, a new theatre following a $20 million investment and the non-stop action of the city's only casino. / echo / excitement / entertainment 11 Treasury Casino and Hotel Brisbane / experience Housed in two of Australia's grandest heritage buildings, the Treasury Brisbane is an entertainment experience unlike any other. Just a 25 minute drive from Brisbane's domestic and international airports, Treasury Brisbane is located in the city's commercial and retail heart. Featuring three levels of gaming as well as six restaurants and seven bars, Treasury offers visitors an entertainment experience unrivalled in Brisbane. In addition, the awardwinning hotel features lavishly appointed rooms, each one of them unique, as well as the renowned the lab bar + restaurant, featuring a fresh menu of modern Australian cuisine. Treasury Brisbane was established in 1995 and is currently undergoing an extensive refurbishment of restaurant and caf outlets to create new dining experiences for customers. / enjoyment Jupiters Townsville Hotel and Casino Jupiters Townsville Hotel and Casino is distinctively located on the Townsville breakwater, set amongst tropical gardens and overlooking magnificent Magnetic Island, the Coral Sea and Townsville City. The property is within walking distance of the Magnetic Island ferry terminal, the central business district (CBD) and the restaurant precincts of Palmer and Flinders Streets. Jupiters Townsville comprises 194 hotel rooms, three restaurants, five bars, tropical pool, spa and health centre and 11 separate conference and event venues. Jupiters Townsville is also conveniently located adjacent to the Townsville Entertainment and Convention Centre, for large conferences. Established in 1986, Jupiters Townsville is the centre of Townsville's night life, and combines the full range of entertainment, dining and gaming options in one location. 12 Gold Coast Convention and Exhibition Centre Echo Entertainment Group manages the $167 million Gold Coast Convention and Exhibition Centre which officially opened on 29 June 2004, providing the Gold Coast with its first convention centre. Conveniently located in the heart of the Gold Coast, it features a main arena, exhibition halls and meeting rooms catering for 10 to 6,000 people. It is linked to the Jupiters Gold Coast complex by a covered walk-way. The Gold Coast Convention and Exhibition Centre is Australia's largest regional convention centre, capable of handling corporate and association conferences and meetings, national and international conventions, banquets, exhibitions, concerts, sporting and special events. Exclusive in size and purpose-designed, the Gold Coast Convention and Exhibition Centre is the only convention centre in Australia to offer total wireless technology. / energy Townsville Entertainment and Convention Centre tertain ment The Townsville Entertainment and Convention Centre is located on Townsville's waterfront overlooking Magnetic Island, and adjoins one of Australia's largest marinas. It is adjacent to Jupiters Townsville and just minutes away from the CBD. / echo en The Townsville Entertainment and Convention Centre, managed by Echo Entertainment Group, provides a versatile, modern facility in northern Queensland, catering for concerts, conventions, exhibitions and indoor sporting events. gro up limited annu al report 2012 / elation 13 / OUR VENUES 14 / The Darling (foyer) the star T he $870 million expansion of The Star casino is rapidly progressing towards completion. The only part of the project to be commissioned is the Events Centre, which is expected to be completed in January 2013. Already changing the face of Sydney's nightlife scene is The Star's new international nightclub, Marquee - The Star, which opened in March 2012. Marquee is located on the entire top tier of the harbourside faade and is the first venture outside the United States for internationally acclaimed nightclub operators, the Tao Group. gro up limited annu al The final piece of The Star jigsaw - a 4,000 capacity Events Centre - has been designed to host A-list performers from around the world as well as domestic and international conferences, exhibitions and functions. tertain ment Revenue at The Star was up 2.7% (16.8% on a normalised basis). EBITDA of $188.3 million was 36.4% below the previous year based on actual earnings and before significant items (down 2.9% on a normalised basis). Trading in the third quarter was adversely impacted by a combination of the departure of the Managing Director and the subsequent negative media exposure and significant item write-downs. Revenue growth accelerated from May as some of these factors fell away. The company remains optimistic on the outlook for The Star. The opening of The Darling, Sydney's first five star hotel since the 2000 Olympics, added a luxury day spa and nearly 60 penthouses and suites, bringing the total rooms and suites at The Star to over 650 across three towers. / echo en The 2012 financial year was a challenging period for The Star. Earnings were impacted by a soft consumer environment across New South Wales and periods of disruption and openings, as large portions of redevelopment were completed. The gaming experience at The Star has been taken to a new level with the complete refurbishment of the Main Gaming Floor and the opening of Sovereign Lakes - an exclusive VIP gaming venue on the top floor of Astral Hotel with stunning views of the harbour and city skyline. Luxury villas atop The Darling are also furnished with their own private gaming rooms, while completing the VIP experience, private executive jets and limousine service transport guests direct to The Star. report 2012 15 16 / \u0007 UR QUEENSLAND O VENUES Overview The three Queensland properties were impacted by a very soft consumer environment throughout the year. Jupiters Gold Cost was additionally impacted by the disruption resulting from the redevelopment of the Jupiters Theatre. Revenue for the Queensland properties increased 2.2% (2.6% on a normalised basis). EBITDA fell by 9.6% to $144.3 million (down 7.1% on a normalised basis). T In December 2010, the Queensland Government announced Echo Entertainment Group's proposed $625 million investment into the Queensland casino properties. The majority of the gaming changes sought in connection with the proposed investment were approved during the course of the year. / echo en tertain ment In May 2012, the Queensland Government announced a number of sites in the central business district (CBD), including a precinct in William Street and the former District and Supreme Court site in George Street, would be made available for redevelopment. Echo shares the Government's commitment to revitalising the Brisbane CBD, particularly through the inclusion of additional tourism infrastructure. The announcement has presented a number of possibilities for investment, and Echo is continuing discussions with Government about the role that Echo can play in achieving this vision for Brisbane. gro up limited annu al report 2012 17 18 Jupiters Hotel & Casino Gold Coast J upiters Hotel & Casino Gold Coast delivered the first stage of its proposed investment, with the launch of the refurbished Jupiters Theatre in April 2012 by the recently elected Queensland Premier, Campbell Newman MP. The $20 million refurbishment transformed the theatre into a state-of-the art venue, doubling its capacity to 2,000 / jabbawockeez seats or 2,300 general admission. The refurbishment also revolutionalised the theatre viewing experience through modern technology and architecture including a second balcony level with 300 seats, VIP hospitality rooms for pre and post event functions, and new bars on each level, together The new Jupiters Theatre is the country's biggest multifunctional theatre with a mechanical thrust stage allowing for standing room for up to 600 people and the ability to / echo en with a purpose-built integrated movie projection booth. configure the size of the stage to suit different concert styles. The theatre has proven to be a venue of choice for performers, attracting high-calibre international touring artists, stage shows and performers to the Gold Coast. Since its re-opening, the theatre has hosted performances by a variety of entertainment icons including Seal, Michael gro up Bolton, Tony Bennett, Kelly Rowland, Burt Bacharach and more. In addition, the Jabbawockeez, a world-famous dance crew which had sold out performances in Las Vegas before coming to Australia, proved highly successful, playing over 100 shows to more than 40,000 people, with the season being extended. limited annu al The $20 million refurbishment transformed the theatre into a state-of-the art venue, doubling its capacity to 2,000 seats or 2,300 general admission. tertain ment / queensland premier, campbell newman mp - jupiters theatre launch Acts such as Flo Rida, Salt-N-Pepa and Vanilla Ice also Party series. report 2012 entertained guests at the highly successful Summer Pool 19 20 / Treasury Casino and Hotel Brisbane Treasury Casino and Hotel Brisbane I n the 12 months following its completion, the Treasury Casino and Hotel Brisbane's Sovereign Room has successfully hosted valued VIP customers, providing a new level of luxury and customer service. The refurbishment transformed valuable real estate within the property, from office space to a private gaming area boasting river views and private dining areas, lounge and vastly improved gaming experiences. The creation of a private gaming room on level three of the casino has also improved the gaming experience for VIP customers. The new room offers private, individual gaming experiences for small groups or individuals. limited annu al In addition, Treasury Brisbane continued its commitment to the preservation of the heritage buildings in which the business operates. A five-year stone-work preservation program commenced during the year, and once finalised, will see the building's sandstone restored and salvaged from damage caused by weather and pollution. gro up report 2012 The property continued to support the Queensland National Trust's Brisbane Open House initiative, which opens heritage buildings throughout the city to the public. The Treasury Heritage Hotel was extremely popular, filling all available tours. tertain ment A series of outdoor events were held in a marquee set in the stunning Queen's Park during April. These events included an invitation-only performance by singer Guy Sebastian for 700 guests, the launch of Treasury Brisbane's fashion event, Identity, and a charity event, Rossi's Charity Oscar's night. In total, more than 2,000 guests attended the marquee events during the week. / echo en During the past 12 months, customers were also treated to a range of exciting events, including the Treasury Casino Oaks Day at Eagle Farm Racecourse, where more than 400 guests were entertained in the Moroccanthemed luxury marquee. Another highlight was the Italian Alfresco Feast featuring renowned Chef Stefano Manfredi, held during Brisbane Italian Week in May. 21 22 / Jupiters Townsville Hotel and Casino Jupiters Townsville Hotel and Casino J upiters Townsville Hotel and Casino presented strong growth through the 2012 financial year, resulting in a 5% increase in operating revenue. A major focus on the reduction of total expenses achieved 2% year-on-year growth, resulting in more than 60% growth in EBITDA. Encouraging strength in the corporate and wedding markets drove strong banquets growth of 18%, while market share increased largely due to a consistent focus on customer service. A highlight included the region's largest pool party, held at the property and featuring headline act, Flo Rida. Hosting significant events at Jupiters Townsville and supporting important regional tourism and economic groups has cemented the property's reputation as North Queensland's leading entertainment destination and as a key driver of tourism and visitation in the region. A major focus on the reduction of total expenses achieved 2% year-on-year growth, resulting in more than 60% growth in EBITDA. / echo entertainment group limited annual report 2012 In September 2011, Jupiters Townsville hosted the inaugural Townsville Food and Wine Festival. This important event focused on the region and its local suppliers to promote North Queensland products and services to a broader tourism market. Jupiters Townsville continued to contribute to tourism and economic development by participating in the Townsville Tourism Expos and contributing to Townsville Enterprise Limited (TEL), North Queensland's voice of industry, business and tourism. TEL membership assisted Jupiters Townsville to secure significant conferencing and tourism opportunities over the past 12 months. Due to the success of the inaugural event, another Townsville Food and Wine Festival was hosted by Jupiters Townsville in June 2012, and Jupiters Townsville expects to continue hosting these events in June each year. 23 / \u0007 ESPONSIBLE R GAMBLING 24 E cho Entertainment Group delivers enjoyable, recreational gambling experiences to its patrons each year. Echo's commitment to the Responsible Gambling Codes of Practice in both New South Wales and Queensland are an integral part of day-to-day business operations at Echo casino properties. These aim to maximise our patrons' enjoyment of the facilities while minimising potential consequences for themselves and potentially, their family, friends and the wider community. Over the past 12 months, Echo has continued to deliver the highest levels of customer care, assisting our patrons to make informed decisions about their participation in gambling. Absolute Assist (Voluntary Pre-commitment) In March 2012, Treasury Casino and Hotel Brisbane and Jupiters Hotel & Casino Gold Coast became the first of Echo's Queensland casinos to implement Absolute Assist, a responsible gambling initiative providing patrons the option of setting a limit on their electronic gaming machine spend. This tool is an addition to a range of existing responsible gambling measures already in place to assist patrons to make informed decisions about their gambling behaviour. At all three of Echo's Queensland casinos, patrons now have the choice to pre-set a limit on their daily gaming spend. Absolute Assist is part of the Absolute Rewards loyalty program and is accessible using an Absolute Rewards card when playing. The implementation of the pre-commitment technology was announced by the-then Queensland Attorney General, Paul Lucas MP, in February 2012. Echo continues to support the Queensland Government's position on voluntary pre-commitment, while recognising concerns for the effectiveness of mandatory pre-commitment. Responsible Gambling Initiatives In addition to every staff member receiving comprehensive responsible gambling training, dedicated Patron Liaison Managers at each casino property work with a team of trained, professional senior staff to provide assistance to patrons who may identify as having problems associated with their own, or a significant other's, gambling behaviour. Echo continued its support of Responsible Gambling Awareness Week in 2012 to help raise awareness of responsible gambling amongst all team members. Originally piloted at The Star in 2004, the program is now an annual event at all Echo casinos. In 2012, the key message Respond with Respect and Refer was delivered, encouraging team members to refer patrons to appropriate support services. Awards Echo (while it was part of Tabcorp Holdings Limited prior to its demerger) was recognised as the global leader in the gambling industry and a world leader in responsible gambling, according to the respected Dow Jones Sustainability Index for 2011. It was also recognised as a world leader in responsible gambling, achieving a 100% score for the promotion of responsible gambling. Jupiters Hotel & Casino Gold Coast received the Queensland Hotel Association's Award for Excellence, Responsible Serving - Gaming for the second time in 2011. Treasury Casino and Hotel Brisbane has also received the same award in 2007 and 2010. / echo en Over the past 12 months, Echo has continued to deliver the highest levels of customer care, assisting its patrons to make informed decisions about their participation in gambling. tertain ment gro up limited annu al report 2012 25 / TALENT 26 Echo Entertainment Group aims to attract, engage and retain high quality team members with the appropriate balance of skills, experience and diversity. / exceptional A s a diverse business delivering memorable entertainment experiences for customers, Echo Entertainment Group aims to attract, engage and retain high quality team members with the appropriate balance of skills, experience and diversity. Echo team members are guided by a Code of Conduct that encourages respect, courtesy and dignity in every interaction with colleagues and patrons. Significant emphasis is placed on providing a working environment that creates opportunities for team members to develop and achieve their potential. Building unique and diverse teams enables Echo to develop a broad pool of people for current and future roles, enabling us to meet our guests' needs by delivering high quality service and exceptional experiences. Echo recognises and rewards outstanding achievements by team members, key service milestones, excellence in customer service and business performance. Building Capability Critical to the success of Echo is building and maintaining our people's capability in all roles and work areas and at all levels. The People Capability Framework (PCF) is the cornerstone of Echo's workforce development strategy, enabling team members to deliver exceptional and memorable entertainment experiences to guests and assisting the organisation to achieve its business outcomes. limited annu al As an adjunct to this integrated suite of formal programs, team member capability is further developed through job rotation, secondments, special projects and mentoring. gro up Supervisor and Management Essentials programs drive the development of management behaviours and capability. To date, these business-aligned programs have seen a total of 535 team members successfully complete the requirements. Echo's investment in these programs is complemented by Federal and State Government funding support in the form of financial incentives for trainees/apprentices and support training. Echo has successfully negotiated funding agreements in New South Wales and Queensland. tertain ment Frontline skills are developed through initiatives including property-based Table Games Dealer Schools and the Echo Culinary Institute, which commenced in 2012. / echo en This framed approach involves delivery of tailored programs designed to build specific skills as well as broader management and leadership capabilities. Echo is committed to providing new and existing team members with access to programs that are aligned to nationally recognised qualifications under the Australian Qualifications Framework (AQF). The AQF is the national policy framework for regulating qualifications in Australian education and training. It incorporates the qualifications from each education and training sector into a single comprehensive national qualification framework. report 2012 27 / Award Winning People Megan Philippa Marketing Executive Winner - 2011 North Queensland Tourism Awards - Young Achievers Award Dedicated to North Queensland's tourism industry for more than six years, Megan received the Young Achiever Award for her work in driving visitation and revenue growth at Jupiters Townsville Hotel and Casino through her creative and targeted marketing strategies. Her work in increasing the profile of the business as well as promoting Townsville as a destination was described as exemplary and she was recognised as a future industry leader. / Megan Philippa (pictured right) Jeff Webster Sales Executive Winner - 2011 North Queensland Tourism Awards - The Richard Power Award for Outstanding Contribution by an Individual With more than 20 years in the tourism and hospitality industry, Jeff has put his energies into bringing major business to Townsville. As a Sales Executive at Jupiters Townsville, Jeff was instrumental in securing the Queensland Mining Conference for the property and assisting in growing the event which now attracts over 700 delegates. He is an active member of the Townsville Enterprise Limited convention bureau, which aims to ensure the region's tourism industry continues to grow and develop. Health and Safety Health and safety has continued to be a focus as our business has transformed with the redevelopment of The Star and through the restructuring of our people capability throughout the business. The overall group Lost Time Injury Frequency Rate (LTIFR) increased slightly to 8.2 as a consequence of these challenging conditions, however the underlying prevention strategies at each property are showing positive signs for a sustained reduction in the next financial year. 28 The Board Risk and Compliance Committee has responsibility for monitoring health and safety performance and ensuring keen focus on health and safety risks and opportunities within the business. The resilience of the Group's Health and Safety Management Systems has provided a solid basis for continuous improvement and audit results relating to Echo's Self Insurance licences in New South Wales and Queensland. / expertise Echo aims to provide apprentices with onsite learning experiences which would not otherwise be available, and can tailor training to suit the requirements of the organisation. report 2012 Apprentices also receive off-job training at either The Southbank Institute of Technology's South Brisbane facility (Queensland apprentices) or at the William Angliss Training Facility in Surry Hills (The Star apprentices). limited annu al Echo aims to provide apprentices with onsite learning experiences which would not otherwise be available, and can tailor training to suit the requirements of the organisation. gro up The ECI Program is conducted by two wholly-owned Echo subsidiaries: Echo Entertainment Training Company Pty Ltd which employs cookery apprentices who are then deployed at the casino properties, and is responsible for all aspects of their employment, including payroll; and Echo Entertainment Culinary Institute Pty Ltd which is a Registered Training Organisation, and is responsible for the training of the Institute's cookery apprentices in Queensland and New South Wales. As at August 2012, the Institute trains and employs 25 apprentices across the properties - 17 in Queensland and 8 in Sydney. tertain ment In April 2012, Echo launched the Echo Culinary Institute (the Institute), a unique training program providing opportunities for apprentice chefs to study and work at casino properties, gaining valuable on-the-job experience (ECI Program). The ECI Program seeks to intake approximately 70 apprentices per annum across Echo properties, enabling the program to be financially sustainable and providing the flexibility to meet business demand for skilled chefs. / echo en Echo Culinary Institute 29 / \u0007\u0007 HELPING OUR ENVIRONMENT 30 E cho Entertainment Group is committed to identifying opportunities to improve our sustainable business practices. It's a commitment that our team is passionate about. Our teams work with communities and governments to identify and implement initiatives that are positive for the environment and reduce costs. Efficiency initiatives // At The Star, water recycling trials previously conducted with Sydney Water are now being implemented, incorporating an estimated volume of 100,000 litres of recycled water per day. // The Darling hotel at The Star is on track to becoming Sydney's first hotel to gain a level 4 rating in the National Australian Building Environmental Rating System (NABERS). The Darling features a glass faade to provide natural Major efficiencies are achieved across our casino complexes in light, windows and louvers in the atrium that open to allow the areas of water and energy efficiency. They include: guests to have natural ventilation in the rooms, and public // Jupiters Hotel & Casino Gold Coast continues to be an industry leader in the use of recycled water. Jupiters Gold Coast has negotiated a Recycled Water Management Plan with the Queensland Government's Department of Environment and Resource Management, which will result spaces that mitigate the reliance on air-conditioning. // Upgrade of lighting technology to introduce energy efficient globes, LED lights and sensor lighting at The Star and Jupiters Townsville. // Installation of electrical sub-metering to measure and analyse consumption within individual areas of The Star, its facilities. enabling greater analysis of energy consumption to allow // The Star and its new five-star hotel, The Darling, have an integrated seawater cooling system which provides cooled water for the chilling system, as well as a rainwater // Introduction of new energy efficiency measures at Jupiters Gold Coast which have resulted in the property's pool being heated by a heat transfer system supplied from its boilers. // The Commingled Waste Project which was implemented at Jupiters Townsville aims to reduce the annual amount tertain ment harvesting plant that holds 475,000 litres of rainwater. the property to develop targeted energy saving projects. / echo en in the future addition of a second Reverse Osmosis Plant to of waste going to landfill by up to 52 tonnes, reducing the property's overall carbon footprint and promoting recycling throughout the casino. Cost savings attributed to the gro up project are anticipated to continue in the next financial year. // Jupiters Gold Coast's Zen restaurant has installed waterless woks, resulting in average potable water savings of 15,753 litres per day. // The Star is undertaking an Energy Saver Audit through the limited annu al Our teams work with communities and governments to identify and implement initiatives that are positive for the environment and reduce costs. New South Wales Office of Environment and Heritage. report 2012 31 / COMMUNITY Each casino property operates community programs, which are driven by a commitment to growing and developing the communities in which our businesses operate and our employees live and work. A s a major employer and provider of entertainment options and business operation using local produce and services, Echo Entertainment Group aims to be recognised as a responsible corporate citizen and effective community leader. Each casino property operates community programs, which are driven by a commitment to growing and developing the communities in which our businesses operate and our employees live and work. As many of these communities continued their recovery from the natural disasters of early 2011, Echo's focus remained on supporting local communities with financial and in-kind support. 32 Investment Programs Following the $870 million investment in tourism infrastructure at The Star, the property is recognised nationally as a major entertainment destination, driving tourism and generating local economic benefits. Echo has earmarked proposed further investment in its Queensland casino properties, with work already underway at Jupiters Hotel & Casino Gold Coast. In April 2012, Jupiters Theatre was relaunched following a $20 million refurbishment which doubled the venue's capacity and included state-of-the-art technology to ensure the venue can cater for a range of entertainment options. Since the Theatre's launch numerous national and international acts have performed at the venue, generating wide-spread media attention for the Gold Coast and driving visitors to the region. In Brisbane, the Queensland Government announced that a number of sites in the central business district (CBD), including a precinct in William Street and the former District and Supreme Court site in George Street would be made available for redevelopment. Echo shares the State Government's commitment to revitalising the Brisbane CBD, particularly the inclusion of additional tourism infrastructure. The announcement has presented a number of possibilities for investment and Echo is continuing discussions with Government about the role Echo Entertainment Group can play in achieving this vision for Brisbane. Open Your Hearts Open Your Hearts is a program that provides team members with the opportunity to be actively involved in local charities and community groups. The program, which operates at the Brisbane and Gold Coast casino properties, invites team members to request funding or in-kind support for a charity, sporting or community group they are personally involved in. The charities, organisations and causes supported by Open Your Hearts are as varied as our teams, and in the past 12 months over 110 community and charity groups have received support valued at $90,000. Sponsorship Each casino property supported a range of community initiatives and charitable organisations, unique to the regions in which they operate. They include: // Jupiters Hotel & Casino Gold Coast supported 170 organisations (mostly based in the Gold Coast) during the 2012 financial year. supporter of Surf Life Saving Queensland. In the last year, Jupiters Hotel & Casino Gold Coast celebrated 18 consecutive years as naming rights sponsor of the iconic Jupiters Summer Surf Girl program as well as nine years as a major supporter of the annual Surf Safe Appeal. relationship with the Cerebral Palsy League of Queensland (CPLQ), reaching nine years in the 2012 financial year. Picnic in the Park. // Townsville 400 // Townsville Turf Club. State Community Benefit funds The Star makes a significant tax contribution to the NSW Government and local economy each year. In the 2012 financial year, The Star contributed over $147 million in taxes to the State of New South Wales, including more than $13.7 million to the Casino Community Benefit Levy. On average, local taxes paid by The Star (including the Casino Community Benefit Levy) have increased more than 11% compared to the prior year. In Queensland, more than $80 million has been contributed by the Queensland properties in the financial year to the Queensland Government and local economy, up 1.8% on the prior year. gro up Treasury Brisbane is the main sponsor of the CPLQ's annual // Townsville Crocodiles tertain ment // Treasury Casino and Hotel Brisbane continued a long-term Jupiters Townsville Hotel and Casino provided significant support to sporting teams and venues in the region including: / echo en // Jupiters Hotel & Casino Gold Coast remains a committed In 2011, Treasury Brisbane again participated in the National Trust of Queensland's Brisbane Open House event, which saw significant heritage buildings opened to the public for guided tours. It is estimated that, overall, over 15,000 people participated in the Open House event. // As an iconic building in the heart of the city's CBD, Treasury and events by lighting the building in supporting colours. This included lighting the building red for Multiple Sclerosis Awareness, yellow for Surf Lifesaving Queensland, Purple limited annu al Brisbane supported many charities, community groups for Epilepsy Awareness Day and pink for Breast Cancer Awareness. report 2012 33 / BOARD OF \u0007 DIRECTORS / John O'Neill AO / Larry Mullin / Matt Bekier Chairman and Non Executive Director Managing Director and Chief Executive Officer Chief Financial Officer and Executive Director Bachelor of Business Administration Master of Economics and Commerce; PhD in Finance Diploma of Law; Fellow of Australian Institute of Bankers; Foundation Fellow of Australian Institute of Company Directors John O'Neill is Managing Director and Chief Executive Officer of Australian Rugby Union Limited. He is a former Chief Executive Officer of Football Federation Australia and was Managing Director and Chief Executive Officer of the State Bank of New South Wales and Chairman of the Australian Wool Exchange Limited. He 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. 34 Larry Mullin was previously Chief Executive - Casinos of Tabcorp Holdings Limited from February 2009 until the implementation of the demerger of Echo Entertainment Group and its controlled entities in June 2011. Prior to joining Tabcorp, Mr Mullin was the President and Chief Operating Officer of Borgata Hotel Casino and Spa in Atlantic City. Mr Mullin has a 20-year career in casino operations, during which he held a variety of senior casino management positions and helped shape casino entertainment in the United States. Matt Bekier was previously Chief Financial Officer of Tabcorp Holdings Limited since commencing with Tabcorp in late 2005 and until the demerger of Echo Entertainment Group and its controlled entities was implemented in June 2011. Prior to his role at Tabcorp, Mr Bekier held various roles with McKinsey & Company. / Brett Paton Non Executive Director Bachelor of Economics; Member of the Institute of Chartered Accountants in Australia Brett Paton is Vice Chairman Institutional Clients Group for Australia and New Zealand at Citigroup Inc and is a member of the Citigroup Australian Management Committee. He is also a member of the ASX Capital Markets Advisory Panel. / John Redmond Non Executive Director Non Executive Director Bachelor of Commerce; Fellow of the Australian Institute of Chartered Accountants; Fellow of the Australian Institute of Company Directors John Redmond has a wealth of international casino management experience, including an executive management career spanning more than 20 years in the United States. Anne Brennan has extensive chartered accounting experience, including at Partner level, across three major accounting firms. More recently Ms Brennan has held financial executive positions including Chief Financial Officer at CSR Limited and Finance Director at the Coates Group. gro up limited annu al Mr Redmond was a director of MGM Mirage for more than seven years and is currently a Non Executive Director of Tropicana Las Vegas Hotel & Casino as well as Vail Resorts Inc and Allegiant Travel. tertain ment Ms Brennan is an experienced board and audit committee member and is currently a Non-Executive Director of Argo Investments Limited, Charter Hall Group Limited, Myer Holdings Limited, Nufarm Limited and Nufarm Finance (NZ) Limited. Mr Redmond previously held executive positions with Caesars World Inc. including as Senior Vice President and Chief Financial Officer of Caesars Palace and Sheraton Desert Inn. He was subsequently Co-CEO of MGM Grand Inc. and then Co-CEO of MGM Mirage, following MGM Grand's acquisition of Mirage Resorts Inc. Mr Redmond later held the position of President and CEO of MGM Grand Resorts with a portfolio including Mandalay Bay, Luxor, New York, Excalibur, MGM Grand, Borgata and MGM Grand Detroit casinos. / echo en Mr Paton was Managing Director and Vice Chairman of Global Investment Banking at UBS and was a member of its Australian Executive Committee, Chairman of the Equity Markets Committee and Chairman of the Capital Commitment Committee, its underwriting committee. / Anne Brennan report 2012 35 / \u0007 ASINO MANAGING C DIRECTORS / Frederic Luvisutto Managing Director: The Star Frederic Luvisutto was appointed to the role of Managing Director of The Star in February 2012, having previously worked as Managing Director of Jupiters Hotel & Casino Gold Coast. Frederic joined Echo Entertainment Group in May 2011 with more than 10 years' experience in the United States where he was a senior executive in casino hotel operations and project development. Prior to joining Echo Entertainment Group, Frederic held the position of Vice President Hotel Operations at the Monte Carlo Resort & Casino in Las Vegas and before that, Vice President of the Signature at MGM Grand in Las Vegas. Frederic's extensive management experience has been instrumental as The Star continues to develop as a premiere entertainment destination. / Geoff Hogg Managing Director: Treasury Casino and Hotel Brisbane Managing Director: Jupiters Townsville Hotel and Casino Geoff Hogg has been Managing Director of Treasury Casino and Hotel Brisbane since May 2008. In August 2012, Geoff was also appointed to oversee the Townsville property. Prior to commencing with Echo Entertainment Group, Geoff worked with the SKYCITY Entertainment Group for more than 13 years in a number of senior management roles across their New Zealand properties. Geoff is the Treasurer of the Australasian Casinos Association and holds extensive experience in casino operations management, personnel development and change management. Geoff is also the current Chair of the Queensland Responsible Gambling Advisory Committee. / Craig Peachey Acting Managing Director: Jupiters Hotel & Casino Gold Coast Craig Peachey was appointed Managing Director (Acting) Jupiters Gold Coast in February 2012 in addition to his role of General Manager Finance & Entertainment which he has held since 2008. Craig joined the Jupiters Gold Coast team in 2006 and has played an instrumental role in both the expansion of the business and entertainment offering at the property. Most recently he managed the first step in the property's redevelopment with the launch of Jupiters Theatre following a $20 million investment. Prior to his appointment at Jupiters Craig spent more than 10 years in senior finance operations positions for Walt Disney in roles across the UK, Australia and Asia Pacific. 36 / \u0003\u0007corporate governance statement / \u0007of Echo Entertainment Group Limited (Echo Entertainment) The table below summarises the relevant sections of this Corporate Governance Statement which address each of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations. ASX Corporate Governance Council's Principles & Recommendations Relevant section(s) Comply Principle 1 - Lay solid foundations for management and oversight 1.1 Establish and disclose the functions reserved to the Board and those delegated to Section 4 Yes senior executives. 1.2 Disclose the process for evaluating the performance of senior executives. Section 22 Yes 1.3 Provide the information indicated in the guide to reporting on Principle 1. Sections 4 & 22 Yes Principle 2 - Structure the Board to add value 2.1 A majority of the board should be independent directors. Sections 3 & 5 Yes 2.2 The chair should be an independent director. Sections 3 & 5 Yes 2.3 The roles of chair and chief executive should not be exercised by the same individual. Section 3 Yes 2.4 The board should establish a nomination committee which should be structured so that it Sections 8 & 12 Yes consists of a majority of independent directors, is chaired by an independent director and has at least three members. 2.5 Disclose the process for evaluating the performance of the board, its committees and Section 22 Yes Sections 3, 5, 8, 12, Yes individual directors. 2.6 Provide the information indicated in the guide to reporting on Principle 2. 21 & 22 Principle 3 - Promote ethical and responsible decision-making 3.1 Establish a code of conduct and disclose the code or a summary of the code as to: Section 16 Yes Section 28 Yes Section 28 Yes Section 28 Yes Sections 16 & 28 Yes Sections 8 & 9 Yes Sections 8 & 9 Yes 4.3 The Audit Committee should have a formal charter. Sections 8 & 9 Yes 4.4 Provide the information indicated in the guide to reporting on Principle 4. Sections 4 & 9 Yes Section 20 Yes Section 20 Yes Section 29 Yes Section 29 Yes // the practices necessary to maintain confidence in the company's integrity; // the practices necessary to take into account their legal obligations and reasonable expectations of stakeholders; and // the responsibility and accountability of individuals for reporting and investigating reports of unethical practices. 3.2 Establish and disclose a policy concerning diversity which includes requirements for the board to establish measurable objectives for achieving gender diversity. 3.3 Disclose the measurable objectives for achieving gender diversity set by the board in accordance with the Diversity Policy and progress towards achieving them. 3.4 Disclose the proportion of women employees in the whole organisation, women in senior executive positions and women on the board. 3.5 Provide the information indicated in the guide to reporting on Principle 3. 4.1 The Board should establish an Audit Committee. 4.2 The Audit Committee should be structured so that it consists only of non-executive / echo en Principle 4 - Safeguard integrity in financial reporting directors, the majority of which are independent directors, is chaired by an independent director who is not chair of the board and has at least 3 members. Establish and disclose written policies and procedures designed to ensure compliance with ASX Listing Rule disclosure requirements and ensure accountability at a senior gro up 5.1 tertain ment Principle 5 - Make timely and balanced disclosure executive level for that compliance. 5.2 Provide the information indicated in the guide to reporting on Principle 5. 6.1 Design and disclose a communications policy for promoting effective communication with shareholders and encouraging their participation at general meetings. 6.2 Provide the information indicated in the guide to reporting on Principle 6. limited annu al Principle 6 - Respect the rights of shareholders report 2012 37 / \u0003\u0007corporate governance statement / \u0007of Echo Entertainment Group Limited (Echo Entertainment) ASX Corporate Governance Council's Principles & Recommendations Relevant section(s) Comply Principle 7 - Recognise and manage risk 7.1 Establish policies for the oversight and management of material business risks and Section 14 Yes Sections 13 & 14 Yes Section 15 Yes Sections 14 & 15 Yes disclose a summary of those policies. 7.2 Require management to design and implement the risk management and internal control system to manage the company's material business risks and disclose whether management has reported to the board as to the effectiveness of the company's management of its material business risks. 7.3 Disclose whether the board has received assurance from the Managing Director & Chief Executive Officer and the Chief Financial Officer and Executive Director that the declaration provided in accordance with s295A of the Corporations Act is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to financial reporting risks. 7.4 Provide the information indicated in the guide to reporting on Principle 7. Principle 8 - Remunerate fairly and responsibly 8.1 The board should establish a remuneration committee. Sections 8 & 11 Yes 8.2 The remuneration committee should be structured so that it consists of a majority Sections 8 & 11 Yes Section 11 Yes Sections 8, 11 & 19 Yes of independent directors, is chaired by an independent chair and has at least three members. 8.3 Clearly distinguish the structure of non-executive directors' remuneration from that of executive directors and senior executives. 8.4 Provide the information indicated in the guide to reporting on Principle 8. 1. Echo Entertainment's approach to corporate governance Echo Entertainment's Board of Directors and management strongly support the principles of good corporate governance. This is particularly important given the highly regulated industry in which Echo Entertainment and its subsidiaries and other controlled entities (the Echo Group) operate, and for the long term sustainability of the Echo Group's businesses. Processes have been established to ensure that the Echo Group's corporate governance practices are reviewed regularly and will continue to be developed and refined to meet the needs of the Echo Group. In developing the appropriate corporate governance practices, the Echo Group takes into account all applicable legislation and recognised standards, which include, but are not limited to: // Corporations Act 2001 (Cth) (Corporations Act); // Australian Securities Exchange (ASX) Listing Rules; // State legislation governing the licences issued to the Echo Group to conduct its casino operations and related activities; and // Australian Standard AS 8000 - Good Governance Principles. This corporate governance statement outlines the Echo Group's main corporate governance practices and policies in place at the date of this report. \u0007\t\u0007 his statement and other related information is available from the Corporate Governance section of Echo Entertainment's website at T http://www.echoentertainment.com.au/About/CorporateGovernance/Pages/default.aspx 2. ASX Corporate Governance Principles and Recommendations The Echo Group adopts the \"Corporate Governance Principles and Recommendations with 2010 Amendments, 2nd edition\" which was published by the ASX Corporate Governance Council (ASX CGC) in June 2010. The Echo Group complies with all of the ASX CGC Recommendations unless otherwise stated and has also established processes to maintain ongoing compliance with the Principles and Recommendations. 38 3. Composition of the Board At the date of this report, the Board consisted of six directors, comprising: // four independent Non Executive Directors, including the Chairman; // the Managing Director and Chief Executive Officer; and // the Chief Financial Officer and Executive Director. \u0007\t\u0007 The names of the Directors, the period of office held by each director, and details of their qualifications, skills, experience and expertise are set out in the Directors' Report and also on the Echo Entertainment website at http://www.echoentertainment.com.au/About/ BoardOfDirectors/Pages/default.aspx 3. Composition of the Board (continued) Echo Entertainment's Constitution requires that the number of Directors (not including alternate Directors) shall not exceed twelve, nor be less than th