Donaco International Limited / 2017 Annual Report Donaco International Limited / 2017 Annual Report 24 25 Additional information on company performance Earnings per share, adjusted for the impact of non-recurring items, is set out in the graph below. Donaco’s total shareholder return, consisting of both share price growth and dividend payments, is superior when compared to a number of peer casino and gaming companies listed on the ASX and in Asia. Option holding The number of options over ordinary shares in the Company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below: Name Balance at the start of the year Granted Exercised Expired/ forfeited/ other Balance at the end of the year Vested Unvested Options over ordinary shares Lim K Y 2,410,339 – – (152,466) 2,257,873 1,198,175 1,059,698 B P Reichel 1,408,857 – – (152,468) 1,256,389 726,540 529,849 Goh K B 1,622,550 – – (410,258) 1,212,292 994,119 218,173 5,441,746 – – (715,192) 4,726,554 2,918,834 1,807,720 Transactions with related parties and key management personnel The following transactions occurred with related parties: Consolidated 2017 2016 $ $ Labour hire fee paid to Star Vegas Resort & Club Co., Ltd – a director-related entity 11,959,472 10,915,776 Leasing fees paid to Lee Hoe Property Co., Ltd – a director-related entity 156,012 16,159 Rental received from director’s immediate family 111,734 116,100 Purchase of fixed assets by DNA Star Vegas from Star Vegas Resort & Club Co., Ltd – a director-related entity – 1,030,727 Technical support fees paid by Lao Cai JVC to iSentric Limited – a director-related entity 187,214 – Licence agreement for occupation of office space paid to Infinite Capital Co., Ltd – a director-related entity 45,840 – Management fees received for Star Paradise Casino property from MMD Travel Co Ltd – a director-related entity 2,338,782 – Management fees paid to previous owner of DNA Star Vegas Co., Ltd – a director-related entity 19,045,688 20,492,174 Disposal of property, plant and equipment to previous owner of DNA Star Vegas Co., Ltd – a director-related entity 586,237 – The above transactions occurred at commercial rates. This concludes the remuneration report, which has been audited. Directors’ Report Directors’ Report Shares under option Unissued ordinary shares of Donaco International Limited under option at the date of this report are as follows: Grant date Expiry date Exercise price Number under option 1 July 2014 1 July 2018 $0.590 1,149,717 1 July 2015 1 July 2018 $0.890 395,208 1 July 2015 1 July 2019 $0.890 349,376 25 August 2015 1 July 2018 $0.770 1,385,700 25 August 2015 1 July 2019 $0.770 1,156,784 25 August 2015 1 July 2020 $0.770 1,008,025 $5,444,810 No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the Company or of any other body corporate. In addition to the above, on 7 July 2015, Donaco International Limited issued 70 warrants to subscribe for its ordinary shares. Each warrant has a notional value of USD100,000. The warrants have a term of 39 months and expire on 6 October 2018. The exercise price is AUD0.7579 cents and the maximum number of ordinary shares which may be issued is 12,339,408. The Company may elect to settle the difference between the share price and exercise price in cash. Shares issued on the exercise of options The were no ordinary shares of Donaco International Limited issued, during the year ended 30 June 2017 and up to the date of this report, on the exercise of options granted (2016: nil). Indemnity and insurance of auditor The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. Proceedings on behalf of the Company No person has applied to the Court under section 237 of the Corporations Act for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. 4.0 6.0 2.0 -2.0 8.0 FY14 ADJUSTED EARNINGS PER SHARE 2.2 FY15 -0.5 FY16 6.6 FY17 6.6 10.0 0 -20% -40% 20% 40% 60% 80% 100% PEER1 TOTAL SHAREHOLDER RETURN -17% 1 YEAR RETURN 4 YEAR RETURN 9% -4% 41% -11% 25% 81% 78% PEER2 PEER3 DNA 0%