Business SummaryCrown Resorts Limited (CWN) is an Australian company engaged in gamingand entertainment business. CWN has businesses and investments in theintegrated resort and entertainment sectors in Australia and Macau andwholly-owns and operates a high-end casino in the United Kingdom.

Crown Melbourne The Crown Melbourne Entertainment complex is one ofthe regions leading integrated resorts, featuring luxury accommodation,quality dining & shopping experiences tighter with World- Class gaming &entertainment facilities. It is one of the largest casino and is a significantdriver of tourism within Australia (Victoria).

Crown Perth Crown Perth is Western Australias premier integrated resortwith world-class convention and gaming facilities, three hotels, thenewly-opened Crown Towers (with 500 rooms), the award-winning CrownMetropol (with 397 rooms) and the award-winning Crown Promenade (with291 rooms), spa, resort pools, restaurants and bars, nightclub and 2,300-seattheatre.

Crown Aspinalls Crown Aspinalls is a high-end London casino. It is one ofonly five licensed high-end casinos in Londons prime West Endentertainment district.

Other Investments CWN also has other three investments. (i) Aspers Group,a 50% interest, has operates four regional casinos in Newcastle, Stratford,Milton Keynes and Northampton. (ii) Wagering And Online gaming operationsinclude CrownBet, 62% owned, licensed online wagering business, BetfairAustralasia 100% owned, licensed online exchange betting exchange & DGNGames. (iii) Nobu Crown resorts has 20% interest Nobu operates 13 ownedrestaurants in the US, London and Tokyo, 17 international licencedrestaurants and manages three hotels in Las Vegas, Manila and Miami

Latest ResearchTrading update highlights subdued pre-COVID-19 trading

Trading update confirms subdued pre-COVID-19 trading environment —Crown

has guided to normalised FY20e EBITDA of ~$500 million; implying 2H20eEBITDA

of ~$119 million up to 23 March. This is equivalent to a monthly run-rate of~$44 million, 33% below FY19 at ~$66 million of EBITDA per month,despite this period including Lunar New Year. Importantly, the closureperiod is now treated as a significant item by Crown (we estimate ~$25million per month in fixed costs).

For more information see research 5 May 2020.

GICS - Consumer Serv

Crown Resorts Limited

ASX Code: CWN Price: $10.44 12 Mth Target Price: $8.20 Rating: Buy

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Snapshot

DateMarket Cap.Shares on issue12 Month High12 Month Low

20 June 2020$7,070m677.2m$13.25$5.84

RatingRating12 Mth Target Price

Capital GainGross Yield

Implied Total Return

Buy$8.20-19.3%3.5%-15.8%

Investment FundamentalsFYE 30 Jun 2019A 2020F 2021F 2022F

Profit $m 369.0 162.0 61.0 346.0Profit (norm)* $m 369.0 162.0 61.0 346.0

EPS* ¢ 54.0 24.0 9.0 51.0EPS Growth % -3.6 -55.6 -62.5 466.7P/E* x 18.8 42.3 112.9 19.9P/E Relative % 0.0 0.0 0.0 0.0

DPS ¢ 60.0 30.0 30.0 60.0Yield % 5.9 3.0 3.0 5.9Franking % 43.0 25.0 50.0 60.0* Adjusted for goodwill and unusual itemsSource: Based on Citi estimates

Share Price Chart

Total Return on $10,000 Investment

Profit & Loss ($M)2015A 2016A 2017A 2018A 2019A

Sales Revenue 3,434 3,557 3,253 3,425 2,867Total Revenue ex. Int. 3,465 4,203 5,170 3,635 2,903EBITDA 900 943 862 802 863Depreciation & Amort. -263 -283 -297 -286 -274Goodwill Amortisation -- -- -- -- --EBIT 637 661 565 516 589Net Interest -112 -199 -134 -46 -10Profit Before Tax 525 461 431 470 579Income Tax -85 -73 -127 -144 -176Outside Equity Int. 7 5 41 -14 -1Profit after Tax 446 394 345 311 402Significant Items after Tax -61 555 1,521 248 --Reported Profit after Tax 385 949 1,866 559 402Preferred Dividends -- -- -- -- --

Cash Flow ($M)2015A 2016A 2017A 2018A 2019A

Receipts from Customers 3,467 3,567 3,352 3,677 3,070Funds from Operations 829 871 667 862 893Net Operating Cashflow 635 483 466 732 778Capex -945 -557 -405 -394 -539Acquisitions & Investments -276 -253 -6 -18 -6Sale of Invest. & Subsid. 70 1,067 3,173 275 8Net Investing Cashflow -1,046 453 2,817 201 -532Proceeds from Issues -- -- -- -- --Dividends Paid -270 -379 -1,111 -413 -409Net Financing Cashflow 548 -827 -1,955 -861 -965Net Increase Cash 137 109 1,328 72 -719Cash at Beginning 178 341 450 1,771 1,845Exchange Rate Adjust. 26 -0 -6 2 1Cash at End 341 450 1,771 1,845 1,126

Ratios and Substantial Shareholders2015A 2016A 2017A 2018A 2019A

Profitability RatiosEBITDA Margin % 26.21 26.53 26.49 23.41 30.11EBIT Margin % 18.56 18.57 17.37 15.06 20.56Net Profit Margin % 13.00 11.07 10.61 9.09 14.02Return on Equity % 9.87 7.77 6.71 6.03 7.88Return on Assets % 6.45 6.22 5.23 4.46 5.60

Debt/Safety RatiosNet Debt/Equity % 50.36 35.16 3.36 -6.78 -0.93Interest Cover x 5.67 3.31 4.22 11.21 58.36

Top 5 Substantial ShareholdersConsolidated Press Holdings Ltd 36.8%Midnight Acacia Holdings Pte Limited 10.0%Perpetual Limited and subsidiaries 9.3%

Balance Sheet ($M)2015A 2016A 2017A 2018A 2019A

Cash & Equivalent 341 450 1,771 1,845 1,126Receivables 378 333 225 172 99Inventories 15 16 17 17 17Other Current Assets 46 43 45 42 44Current Assets 780 842 2,059 2,076 1,285Prop. Plant & Equipment 3,823 4,069 3,959 3,881 4,259Intangibles 1,401 1,722 1,660 1,543 1,479Other Non-Current Assets 198 185 191 185 201Non-Current Assets 7,657 8,006 6,494 6,096 6,349Total Assets 8,437 8,849 8,553 8,172 7,634Interest Bearing Debt 2,662 2,261 1,945 1,495 1,079Other Liabilities 1,166 1,435 1,432 1,519 1,458Total Liabilities 3,828 3,696 3,377 3,014 2,537Net Assets 4,609 5,152 5,175 5,158 5,097Share Capital 447 438 -73 -88 -203Reserves 820 797 61 -60 1Retained Earnings 3,258 3,828 5,153 5,306 5,299Outside Equity Int. 84 90 34 -- --Total Shareholders Equity 4,609 5,152 5,175 5,158 5,097

Current Analyst Recommendations *

* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.

Principals & DirectorsPrincipals

Company Secretary Ms Mary Manos

Directors

Mr John Hartley Poynton(Non-Executive Director)Mr Guy Jalland(Non-Executive Director)Mr Harold Charles Mitchell(Non-Executive Director)Mr John Henry Alexander(Executive Director)Mr Andrew Demetriou(Non-Executive Director)Mr Kenneth McRae Barton(Chief Executive Officer,ManagingDirector)Mr Michael Roy Johnston(Non-Executive Director)Professor John Stephen Horvath(Non-ExecutiveDirector,Non-Executive Deputy Chairman)Ms Antonia (Toni) Korsanos(Non-Executive Director)Hon Helen Anne Coonan(Non-Executive Director,Non-ExecutiveChairman)Ms Sarah Jane Halton(Non-Executive Director)

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Crown Resorts Limited

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