thanks in advanceAssessment Details and Submission Guidelines Trimester T1 2020 Unit Code HI5020...

Question

thanks in advanceAssessment Details and Submission Guidelines 	Trimester 	T1 2020 	Unit Code 	HI5020 	Unit Title 	Corporate Accounting 	Assessment Type 	Individual Assignment 	Assessment Title 	Accounting for Income Tax 	Purpose of the assessment (with ULO Mapping) 	This assignment aims at developing a clear understanding of students on corporate accounting for income tax issues. Students will develop an understanding on different concepts used in accounting for income tax. They will also develop an understanding on how different concepts of accounting for income tax are used by companies in the practical setting. (ULO 1, 2, 4, 5, 6). 	Weight 	40 % of the total assessments (Written assignment 30 % + Presentation 10 percent) 	Total Marks 	Written assignment 30 marks + Presentation 10 marks 	Word limit 	3000 words ±500 words 	Due Date 	Assignment submission: Final Submission of individual Assignment: 11:59 pm Friday, Week 9 Late submission incurs penalties of five (5) % of the assessment value per calendar day unless an extension and/or special consideration has been granted by the lecturer prior to the assessment deadline. 	Submission Guidelines 	· All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page. · The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. · Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style. HI5020 Corporate Accounting Group Assignment T1 2020 Assignment Specifications Purpose: This assignment aims at developing a clear understanding of students on corporate accounting for income tax issues. Students will develop an understanding on different concepts used in accounting for income taxes. They will also develop an understanding on how different concepts of accounting for income tax are used by companies in the practical setting. Assessment task: Collect the latest annual report of an ASX listed company for the last 2 financial years. Please read the financial statements (balance sheet, income statement, cash flow statement) and notes attached to financial statements on income tax issues very carefully. Please remember some aspects of your firm’s treatment of its tax – can be a very complicated area, particularly for some firms. Based on your understanding of the topic “accounting for income tax” and based on your reading of the collected annual reports, do the following tasks. i Briefly explain the concepts of accounting profit, taxable profit, temporary difference, taxable temporary difference, deductible temporary difference, deferred tax assets and deferred tax liability. ii Briefly explain the recognition criteria of deferred tax assets and deferred tax liability. iii	What is your firm’s tax expense in its latest financial statements? iv Is this figure the same as the company tax rate times your firm’s accounting income? Explain why this is, or is not, the case for your firm highlighting the reasons for differences. v Identify the deferred tax assets/liabilities that is reported in the balance sheet articulating the possible reasons why they have been recorded. vi Is there any current tax assets or income tax payable recorded by your company? Why is the income tax payable not the same as income tax expense? vii Is the income tax expense shown in the income statement same as the income tax paid shown in the cash flow statement? If not, why is the difference? viii Briefly explain the concepts of temporary difference and permanent difference. Identify any permanent differences that your company may have. ix What do you find interesting, confusing, surprising or difficult to understand about the treatment of tax in your firm’s financial statements? What new insights, if any, have you gained about how companies account for income tax as a result of examining your firm’s tax expense in its accounts? Assignment Structure should be as the following: Abstract - One paragraph List of Content Introduction Body of the assignment with detailed answer on each of the required tasks Summary/Conclusion List of references ….. Page 2 of 6 HI5020 Corporate Accounting T1 2020 Instruction for video presentation: Based on your written assignment you will have to make a summary video presentation ranging for 10 minutes. Your presentation should explain the assignment tasks and your key findings. You will have to upload the presentation in You Tube and submit the You Tube link in the black board so that the marker can watch and mark your presentation. Your assignment will be marked based on the following criteria: 	 	Presentation	Style	(3 marks) 	Content (4 marks) 	Clarity of the presentation ((3 marks) 	Excellent 	3-2.5 	4-3 	3-2.5 	Very good 	2.5-1.75 	3-2.5 	2.5-1.75 	Good 	1.75-1.5 	2.5-2.00 	1.75-1.5 	Satisfactory 	1.5-1.00 	2.00-1.00 	1.5-1.00 	Unsatisfactory 	1.00-0 	1.00-0 	1.00-0 Marking criteria 	Marking criteria 	Weighting 	Abstract 	1% 	List of content & overall presentation of the assignment 	1% 	Introduction 	1% 	Briefly explain the concepts of accounting profit, taxable profit, temporary difference, taxable temporary difference, deductible temporary difference, deferred tax assets and deferred tax liability. Provide suitable example for each concept. 	7% 	Briefly explain the recognition criteria of deferred tax assets and deferred tax liability. 	2% 	What is your firm’s tax expense in its latest financial statements? 	1% 	Is this figure the same as the company tax rate times your firm’s accounting income? Explain why this is, or is not, the case for your firm highlighting the reasons for differences. 	3% 	Identify the deferred tax assets/liabilities that is reported in the balance sheet articulating the possible reasons why they have been recorded. 	3% 	Is there any current tax assets or income tax payable recorded by your company? Why is the income tax payable not the same as income tax expense? 	3% 	Is the income tax expense shown in the income statement same as the income tax paid shown in the cash flow statement? If not why is the difference? 	3% 	Briefly explain the concepts of temporary difference and permanent difference. Identify any permanent differences that your company may have. 	2% 	What do you find interesting, confusing, surprising or difficult to understand about the treatment of tax in your firm’s financial statements? What new insights, if any, have you gained about how companies account for income tax as a result of examining your firm’s tax expense in its accounts? 	2% 	Conclusion 	1% 	Total in Written Assignment 	30% 	Video presentation 	10% 	Total 	40 % Marking Rubric 	 	Excellent 	Very Good 	Good 	Satisfactory 	Unsatisfactory 	Briefly explain the concepts of accounting profit, taxable profit, temporary difference, taxable temporary difference, deductible temporary difference, deferred tax assets and deferred tax liability. /7 	All seven concepts have been discussed clearly and comprehensively . Suitable examples have been given 	All seven concepts have been discussed. Suitable examples have been given. 	Has discussed all seven concepts with examples. Minor errors remain. 	Attempted to discuss all seven concepts. Also attempted to provide examples. Major errors remain. 	Did not show an understanding of the concepts, did not provide appropriate examples. 	Briefly explain the recognition criteria of deferred tax assets and deferred tax liability. /2 	The recognition criteria of deferred tax assets and deferred tax liability have been correctly and comprehensively discussed 	The recognition criteria of deferred tax assets and deferred tax liability have been discussed. There is scope for improvement. 	The recognition criteria of deferred tax assets and deferred tax liabilities have been discussed with minor errors and ambiguity. 	The recognition criteria of deferred tax assets and deferred tax liabilities have been discussed with major errors and ambiguity. 	An attempt has been made to discuss the recognition criteria of deferred tax assets and deferred tax liability but the answer is mostly irrelevant, or an attempt has not been made to discuss the recognition criteria of deferred tax assets. 	What is your firm’s tax expense in its latest financial statements? /1 	The income tax expense has been correctly identified 	------ 	------ 	The income tax expense has been incorrectly identified 	The income tax expense has not been identified. 	Is this figure the same as the company tax rate times your firm’s accounting income? Explain why this is, or is not, the case for your firm highlighting the reasons for differences. /3 	Demonstrated an excellent understanding of the issue. The reasons for the differences have been identified and explained 	Demonstrated a good understanding of the issue. The reasons for the differences have been identified and explained 	Demonstrated a poor understanding of the issue. The reasons for the differences have been identified and explained with minor errors 	Demonstrated a poor understanding of the issue. The reasons for the differences have been identified and explained with major errors 	Demonstrated very poor or no understanding of the issue. The reasons for the differences have not been identified and explained 	Identify the deferred tax assets/liabilities that is reported in the balance sheet articulating the possible reasons why they have been recorded. /3 	Has correctly identified the deferred tax assets and deferred tax liabilities reported by the company. The reasons for their origin have been identified and explained. 	Has correctly identified the deferred tax assets and deferred tax liabilities reported by the company. The reasons for their origin have been identified and explained with minor errors. 	Has identified the deferred tax assets and deferred tax liabilities reported by the company with minor errors. The reasons for their origin have been identified and explained with major errors. 	Has identified the deferred tax assets and deferred tax liabilities reported by the company with major errors. The reasons for their origin have been identified and explained with major errors. 	Has not identified the deferred tax assets and deferred tax liabilities reported by the company. The reasons for their origin have not been identified and explained. 	Is there any current tax assets or income tax payable recorded by your company? Why is the income tax payable not the same as income tax expense? /3 	Has clearly identified if the company has reported any current tax asset or income tax payable. Has demonstrated an excellent understanding of the reasons for the differences between income tax payable and income tax expense. 	Has clearly identified if the company has reported any current tax asset or income tax payable. Has demonstrated a good understanding of the reasons for the differences between income tax payable and income tax expense. Minor errors. 	Has identified if the company has reported any current tax asset or income tax payable. Has demonstrated a reasonable understanding of the reasons for the differences between income tax payable and income tax expense. Major errors. 	Has identified if the company has reported any current tax asset or income tax payable. Has demonstrated a poor understanding of the reasons for the differences between income tax payable and income tax expense. Major errors. 	Has not been able to identify if the company has reported any current tax asset or income tax payable. Unable to demonstrate an acceptable level of understanding of reasons for the differences between income tax payable and income tax expense. Major errors. 	Is the income tax expense shown in the income statement same as the income tax paid shown in the cash flow statement? If not, why is the difference? /3 	Has clearly identified if there is any difference

Pulkit · Accepted Answer

CONTENTS
Company Profile and Key Dates 1
Message from the Chairman and CEO 2
Directors' Report 3
Operating and Financial Review 9
Remuneration Report 30
Auditor's Independence Declaration 56
Nevada Regulatory Disclosure 57
Five Year Summary 59
Financial Statements 61
Independent Auditor's Report 111
Shareholder Information 118
Corporate Directory 121
2019 ANNUAL REPORT 
This 2019 Aristocrat Leisure Limited Annual Report for the 
financial year ended 30 September 2019 complies with 
reporting requirements and contains statutory financial 
statements.
This document is not a concise report prepared under 
section 314(2) of the Corporations Act. The Aristocrat  
Group has not prepared a concise report for the 2019 
financial year.
2020 ANNUAL GENERAL MEETING
The 2020 Annual General Meeting will be held at 11.00am 
on Thursday, 20 February 2020 at the Aristocrat Head 
Office, Building A, Pinnacle Office Park, 85 Epping Road, 
North Ryde, NSW, 2113.
Details of the business of the meeting will be contained 
in the notice of Annual General Meeting, to be sent to 
shareholders separately.
2019 CORPORATE GOVERNANCE 
STATEMENT 
The 2019 Corporate Governance Statement can be found 
on the Group’s website: www.aristocrat.com.
1 ARISTOCRAT LEISURE LIMITED Annual Report 2019
COMPANY PROFILE
Aristocrat Leisure Limited (ASX: ALL) is a leading gaming 
provider and games publisher, with more than 6,400 
employees located in offices around the world. Aristocrat 
offers a diverse range of products and services including 
electronic gaming machines, casino management systems 
and digital social games. The Company’s land-based 
products are approved for use in more than 300 licensed 
jurisdictions and are available in over 80 countries.
For further information visit the Group’s website at  
www.aristocrat.com.
KEY DATES*
2019
Record date for Final 2019 Dividend 29 November 2019 
Payment date for Final 2019 Dividend 17 December 2019 
2020
2020 Annual General Meeting 20 February 2020
Interim Results Announcement 
(6 months ending 31 March 2020) 21 May 2020
Full Year Results Announcement 
(12 months ending 30 September 2020) 18 November 2020
*Dates subject to change.
2 ARISTOCRAT LEISURE LIMITED Annual Report 2019
We’re pleased to report that Aristocrat delivered strong 
performance over the 2019 fiscal year, further extending the 
business’ trajectory of consistent and high-quality growth with 
a record profit of $894.4m1. Group revenue increased almost 
23% and 15% in reported terms and in constant currency 
respectively, to a fresh all-time high of $4.4 billion.
This performance was driven by continued strong operational 
momentum across both land based and digital businesses. 
Aristocrat’s key Americas, ANZ and digital operations all 
grew, off the back of increased and targeted investment 
in competitive product portfolios, particularly in terms of 
design and development (D&D) and digital marketing (user 
acquisition).
Aristocrat’s strong cash flows, capacity to fund investment in 
further growth and continued reducing gearing levels were 
also evident in the fiscal 2019 result. This allowed the Board to 
deliver another significant lift in earnings per share, reflected 
in a 22% increase in total dividends for the year to 56.0 cents 
per share, consistent with our commitment to grow dividends 
over time.
Over the course of the year, the Board also continued to 
implement an orderly renewal process with the nomination of 
Mr Philippe Etienne as a Non-Executive Director (Elect) on 1 
October 2019. Philippe was formally appointed to the Board 
in November 2019, and shareholders are asked to approve his 
appointment at the AGM in February 2020. 
Philippe is a seasoned international business leader with 
extensive experience as a company director. Philippe’s 
strategic and technology skills and international perspectives 
are particularly valuable, and we are delighted to welcome an 
individual of his calibre to the Board. 
In addition, and after more than a decade of service, Mr Steve 
Morro has confirmed his intention to retire as a Director of 
Aristocrat at the conclusion of the forthcoming AGM. Steve 
has made an outstanding contribution to both the Board 
and the business, including through its turnaround years and 
subsequent growth. Steve has brought deep US market and 
global gaming industry expertise to the Board’s deliberations, 
which we value greatly. We are particularly pleased therefore 
that Steve has agreed to continue his long association with 
Aristocrat post his retirement, as a consultant to management. 
As a consequence of Steve’s retirement, Mr Pat Ramsay 
will assume the role of lead US director, and the Board is 
prioritising its US based director recruitment.
During the year, the Board continued its program of regular 
face-to-face engagement with Aristocrat’s global employee 
base, and also met with a broad range of customers in various 
jurisdictions. This program helps ensure that Directors receive 
direct feedback and are able to maintain effective oversight 
over the business’ culture and customer centricity.
Aristocrat has also continued to expand our sustainability 
disclosures, consistent with our values, our focus on the long 
term and commitment to transparency. Building on progress 
made in 2018, further disclosures were published on the 
Group website (www.aristocrat.com) at the end of November 
2019. In addition to updating and expanding existing content 
on topics such as responsible gameplay and employee 
relations, the business also reported for the first time on topics 
such as energy and environment (including climate-related 
issues), community and society and ethical sourcing. 
In 2020, the business is expecting to be able to include  
more information on energy, and diversity and inclusion, in 
line with our progress and shareholders’ interest in these 
important issues.
In summary, fiscal year 2019 was another highly successful 
and rewarding year at Aristocrat. We wish to particularly 
acknowledge and thank the Board and senior management 
for its support, energy and commitment. We are also grateful 
to the team of more than 6,400 Aristocrat people around the 
world, whose hard work and passion for our customers is 
reflected in the strong results we delivered over the year. 
Finally, we wish to thank you – our shareholders – for your 
ongoing interest and support.
Yours sincerely
MESSAGE FROM THE 
CHAIRMAN AND CEO
Neil Chatfield 
Chairman
Trevor Croker 
Chief Executive Officer & 
Managing Director
1. Net Profit After Tax and before Amortisation of Acquired Intangibles.
3 ARISTOCRAT LEISURE LIMITED Annual Report 2019
DIRECTORS’ REPORT
For the 12 months ended 30 September 2019
The Directors present their report together with the  
Financial Statements of the Company and its subsidiaries 
(the Group) for the 12 months ended 30 September 2019 
(the financial year). The information in this report is current as 
at 20 November 2019 unless otherwise specified.
This Directors’ Report has been prepared in accordance 
with the requirements of Division 1 of Part 2M.3 of the 
Corporations Act 2001 (Cth) (the Act).
Review and results of operations
A review of the operations of the Group for the financial year 
is set out in the Operating and Financial Review which forms 
part of this Directors’ Report.
Financial results
The reported result of the Group attributable to shareholders 
for the 12 months ended 30 September 2019 was a profit of 
$698.8 million after tax (2018: profit of $542.6 million after 
tax).
Further details regarding the financial results of the Group 
are set out in the Operating and Financial Review and 
Financial Statements.
Dividends
Since the end of the financial year, the Directors have 
recommended the payment of a final dividend of 34.0 cents 
(2018: 27.0 cents) per fully-paid ordinary share. Details of the 
dividends paid and declared during the financial year are set 
out in Note 1-6 to the Financial Statements.
Remuneration Report
Details of the remuneration policies in respect of the 
Group’s Key Management Personnel are detailed in the 
Remuneration Report which forms part of this Directors’ 
Report.
Sustainability
Further detail on sustainability can be found on 
the Company’s website and forms part of this 
Directors’ Report.  
website www.aristocrat.com
4 ARISTOCRAT LEISURE LIMITED Annual Report 2019
DIRECTORS’ REPORT
Directors’ particulars, experience and special responsibilities 
Current Directors
The Directors of the Company throughout the financial year and up to the date of this report are:
CURRENT DIRECTORS
Director Experience and other directorships Special responsibilities
NG Chatfield
M.Bus, FCPA, FAICD
Nominated December 2017. Appointed February 2018.
 — Chairman of Costa Group Holdings Limited 
 — Non-Executive Director of Transurban Group
 — Former Chairman of Seek Ltd (retired effective  
31 December 2018)
 — Former Chairman of Virgin Australia Holdings Ltd
 — Former Non-Executive Director of Recall Holdings Ltd and 
Iron Mountain, Inc.
 — Former Executive Director and Chief Financial Officer of Toll 
Holdings Ltd
Non-Executive Chairman 
(from 22 February 2019)
Member, Strategic Risk 
Committee  
(to 30 September 2019)
Member, Regulatory and 
Compliance Committee
Member, Human Resources 
and Remuneration Committee 
(from 22 February 2019)
Member, Audit Committee 
(from 22 February 2019)
TJ Croker
Advanced Management 
Program (Wharton 
School, University of 
Pennsylvania)
Appointed 1 March 2017.
 — Director of the Australasian Gaming Council
 — Director and Chairman of the American Gaming Association 
(Chairman effective January 2020)
 — Former Executive Vice President, Global Product & Insights, 
Aristocrat Leisure Limited
 — Former Managing Director, ANZ – Aristocrat Leisure Limited
 — Sales Director – Fosters Australia Ltd
Managing Director and  
Chief Executive Officer
Member, Strategic Risk 
Committee  
(to 30 September 2019)
KM Conlon
BEc, MBA
Nominated January 2014. Appointed February 2014.
 — Non-Executive Director of REA Group Limited and Lynas 
Corporation Limited
 — Member of Chief Executive Women and a Non-Executive 
Director of the Benevolent Society
 — Member of the Australian Institute of Company Directors 
(AICD) Corporate Governance Committee and a former 
National Board Member of the AICD
 — Former Non-Executive Director of CSR Limited
 — Former Partner and Director, Boston Consulting Group 
(BCG)
Chair, Human Resources and 
Remuneration Committee
Member, Strategic Risk 
Committee  
(to 30 September 2019)
Member, Audit Committee 
(from 1 October 2019)
SW Morro
BA, Business 
Administration
Nominated December 2009. Appointed December 2010.
 — Former Chief Operating Officer and President, 
 IGT Gaming Division
Lead US Director
Member, Regulatory and 
Compliance Committee
Member, Human Resources 
and Remuneration Committee
5 ARISTOCRAT LEISURE LIMITED Annual Report 2019
DIRECTORS’ REPORT
CURRENT DIRECTORS
Director Experience and other directorships Special responsibilities
PJ Ramsey
BA, Economics, MBA
Nominated September 2016. Appointed October 2016.
 — Consultant, EPR Properties (a publicly traded REIT)
 — Board of Trustees for the Meadows School (Las Vegas, USA)
 — Executive Committee member for the TPC Shriners Hospital 
for Children Open
 — Former Independent Director of VizExplorer
 — Former Chief Digital Officer of Aristocrat Leisure Limited  
and former CEO of Multimedia Games
 — Various senior roles at Caesars Entertainment  
(formerly Harrah’s)
Chair, Regulatory and 
Compliance Committee
Member, Strategic Risk 
Committee  
(to 30 September 2019)
Member, Audit Committee 
(from 1 October 2019)
S Summers Couder
Dip Electrical 
Engineering, Masters in 
Electrical Engineering 
and Computer Sciences
Cycle de 
Perfectionnement Option 
(Equivalent MBA)
Nominated August 2016. Appointed September 2016.
 — Independent Director of Semtech Corporation
 — Former Independent Non-Executive Director of Alcatel-
Lucent SA and Headwaters Inc.
 — Former Chief Executive Officer of Trident Microsystems Inc.
Chair, Strategic Risk Committee 
(to 30 September 2019)
Member, Audit Committee
Member, Human Resources 
and Remuneration Committee 
(from 1 October 2019)
AM Tansey
BBA, MBA, Juris Doctor
Nominated March 2016. Appointed July 2016.
 — Non-Executive Director of Healius Limited (formerly Primary 
Health Care Ltd), Lendlease Investment Management 
Limited, and the Australian National Maritime Foundation
 — Member of Chief Executive Women and Fellow of the 
Australian Institute of Company Directors
 — Former Non-Executive Director of Adelaide Brighton Ltd
Chair, Audit Committee
Member, Strategic Risk 
Committee  
(to 30 September 2019)
Member, Regulatory and 
Compliance Committee  
(from 1 October 2019)
DIRECTORS APPOINTED AFTER THE FINANCIAL YEAR
Director Experience and other directorships Special responsibilities
PG Etienne
GradDip Marketing, BSc, 
MBA  
Advanced Management 
Program
Nominated October 2019. Appointed November 2019.
 — Chairman, ANZ Terminals
 — Non-Executive Director of Lynas Corporation Limited and 
Cleanaway Waste Management Limited
 — Former Managing Director & CEO of Innovia Security Pty Ltd
 — Former Non-Executive Director of Sedgman Limited
 — Various senior executive positions, Orica Limited
Member, Human Resources 
and Remuneration Committee 
Member, Regulatory and 
Compliance Committee
6 ARISTOCRAT LEISURE LIMITED Annual Report 2019
DIRECTORS’ REPORT
FORMER DIRECTORS
Director Experience and other directorships Special responsibilities
ID Blackburne
BSc (Hons), MBA, PhD
Appointed September 2010. Retired 21 February 2019
 — Former Chairman of Recall Holdings Limited, CSR 
Limited and Australian Nuclear Science and Technology 
Organisation
 — Former Non-Executive Director of Suncorp-Metway Limited 
and Symbion Health Limited
 — Former Independent Director of Teekay Corporation  
(listed on the NYSE)
 — Former Managing Director of Caltex Australia Limited
Non-Executive Chairman 
(to 21 February 2019)
Member of each Board 
Committee 
(to 21 February 2019)
 
Directors’ attendance at Board and committee meetings during the financial year
The attendance of members of the Board at Board meetings and attendance of members of committees at committee 
meetings of which they are voting members is set out below.
(Meetings attended/held)
Director Board Audit Committee
Human Resources 
and Remuneration 
Committee
Regulatory and 
Compliance 
Committee
Strategic Risk 
Committee
Current Directors
NG Chatfield1 13/13 2/2 3/3 4/4 3/3
TJ Croker 13/13 - - - 3/3
KM Conlon1 13/13 - 5/5 - 3/3
SW Morro1 12/13 - 5/5 4/4 -
PJ Ramsey1 12/13 - - 4/4 3/3
S Summers Couder1 12/13 4/4 - - 3/3
AM Tansey1 13/13 4/4 - - 3/3
Former Directors
ID Blackburne1, 2 6/6 2/2 2/2 1/1 1/1
1. During FY2019, the Board reviewed each Non-Executive Director’s 
independence and confirms that each Non-Executive Director is 
independent.
2. Dr ID Blackburne retired from the Board on 21 February 2019.
Company Secretary
The Company Secretary is directly accountable to the Board, 
through the Chairman, for all governance matters that relate 
to the Board’s proper functioning.
During the financial year, the Group had the following 
Company Secretary:
Richard Bell LLB, BComm (Law)
Richard Bell joined Aristocrat in April 2015 and was 
appointed as Company Secretary in May 2017. Before 
joining Aristocrat, Mr. Bell specialised in Mergers & 
Acquisitions at Australian law firm Allens Linklaters.
7 ARISTOCRAT LEISURE LIMITED Annual Report 2019
DIRECTORS’ REPORT
Principal activities
The principal activities of the Group during the financial year 
were the design, development and distribution of gaming 
content, platforms and systems, including electronic gaming 
machines, casino management systems and digital social 
games. The Company’s objective is to be the leading global 
provider of gaming solutions. 
Significant changes in the state of affairs
Except as outlined below and elsewhere in this Directors’ 
Report, there were no significant changes in the state of 
affairs of the Group during the financial year.
Events after balance date
Refer to Note 6-2 to the Financial Statements for events 
which occurred after balance date. Other than the matters 
disclosed in Note 6-2, since the end of the year and to 
the date of this Directors’ Report, no other matter or 
circumstance has arisen that has significantly affected or may 
significantly affect the Group’s operations, results of those 
operations or state of affairs in future reporting periods.
Likely developments and expected results
Likely developments in the operations of the Group in future 
financial years and the expected results of operations are 
referred to in the Operating and Financial Review which 
forms part of this Directors’ Report.
Options over share capital
No options over Company shares were granted to 
executives or Directors during the financial year. There were 
no unissued shares or interests in the Company subject to 
options at the date of this Directors’ Report and no Company 
shares or interests issued pursuant to exercised options 
during or since the end of the financial year.
Indemnities and insurance premiums
The Company’s Constitution provides that the Company will 
indemnify each officer of the Company against any liability 
incurred by that officer in or arising out of the conduct of the 
business of the Company or in or arising out of the discharge 
of that officer’s duties to the extent permitted by law.
An officer for the purpose of this provision includes any 
Director or Secretary of the Company or the Company’s 
subsidiaries, executive officers or employees of the 
Company or its subsidiaries and any person appointed 
as a trustee by, or acting as a trustee at the request of, the 
Company, and includes former Directors.
In accordance with the Company’s Constitution, the 
Company has entered into deeds of access, indemnity and 
insurance and deeds of indemnity for identity theft with each 
Director and nominated officers of the Company. No amount 
has been paid pursuant to those indemnities during the 
financial year to the date of this Directors’ Report.
The Company has paid a premium in respect of a contract 
insuring officers of the Company and its related bodies 
corporate against any liability incurred by them arising out 
of the conduct of the business of the Company or in or 
arising out of the discharge of their duties. In accordance 
with normal commercial practices, under the terms of the 
insurance contracts, the details of the nature and extent of 
the liabilities insured against and the amount of premiums 
paid are confidential.
Environmental regulation
The Group’s operations have a limited impact on the 
environment. The Group is subject to a number of 
environmental regulations in respect of its integration 
activities. The Company does not manufacture gaming 
machines, it only integrates (assembles) machines and 
systems in Australia, the USA, Macau, and the UK. The 
Company uses limited amounts of chemicals in its assembly 
process. The Directors are not aware of any breaches of any 
environmental legislation or of any significant environmental 
incidents during the financial year.
Based on current emission levels, the Company is not 
required to register and report under the National 
Greenhouse and Energy Reporting Act 2007 (Cth) (NGER 
Act). However, the Company continues to receive reports 
and monitors its position to ensure compliance with the 
NGER Act.
The Company is committed to not only complying with 
the various environmental laws to which its operations 
are subject, but also to achieving a high standard of 
environmental performance across all its operations. The 
Company is aware of, and continues to plan for, any new 
Australian regulatory requirements on climate change. It is 
the Company’s view that climate change does not pose any 
significant risks to its operations in the short to medium term. 
Throughout the Group, new programs and initiatives have 
been introduced to ensure the Company is well prepared for 
new regulatory regimes and to reduce its carbon footprint.
8 ARISTOCRAT LEISURE LIMITED Annual Report 2019
DIRECTORS’ REPORT
Proceedings on behalf of the Company
No proceedings have been brought on behalf of the 
Company under section 236 of the Act nor has any 
application been made in respect of the Company under 
section 237 of the Act.
Auditor
PricewaterhouseCoopers (PwC) continues in office in 
accordance with section 327 of the Act.
Non-audit services provided by the auditor
The Company, with the prior approval of the Chair 
of the Audit Committee, may decide to employ 
PricewaterhouseCoopers, the Company’s auditor, on 
assignments additional to its statutory audit duties where 
the auditor’s expertise and experience with the Company 
and/ or the Group are important. The Company has an 
Auditor Independence Policy which specifies those non-
audit services which cannot be performed by the Company 
auditor. The Policy also sets out the procedures which are 
required to be followed prior to the engagement of the 
Company’s auditor for any non-audit related service.
Details of the amounts paid or payable to the Company’s 
auditor, for audit and non-audit services provided during 
the financial year, are set out in Note 6-3 to the Financial 
Statements.
The Board of Directors has considered the position and, 
in accordance with the advice received from the Audit 
Committee, is satisfied that the provision of the non-audit 
services as set out in Note 6-3 to the Financial Statements is 
compatible with the general standard of independence for 
auditors imposed by the Act for the following reasons:
 — All non-audit services have been reviewed by the Audit 
Committee to ensure they do not impact the impartiality 
and objectivity of the auditor.
 — PwC is engaged on assignments additional to their 
statutory audit duties where PwC’s expertise and 
experience with the Group are important. These 
assignments are principally tax advice and due diligence 
on acquisitions. During the year, PwC was primarily 
engaged for tax services relating to assistance with one-
off changes to the Group Structure (refer to Note 6-2 to 
the Financial Statements). These services are not recurring. 
PwC is awarded assignments on a competitive basis 
in accordance with the Auditor Independence Policy, 
which in future will restrict PwC from performing tax and 
advisory services.
 — None of the services undermine the general principles 
relating to auditor independence as set out in APES 110 
Code of Ethics for Professional Accountants, including 
reviewing or auditing the auditor’s own work, acting in 
a management or a decision-making capacity for the 
Company, acting as advocate for the Company or jointly 
sharing economic risk and rewards.
A copy of the Auditor’s Independence Declaration is 
attached to this Directors’ Report.
Loans to Directors and executives
No Director or executive held any loans with the Company 
during the financial year.
Rounding of amounts to nearest thousand dollars
The Company is of a kind referred to in ASIC Corporations 
(Rounding in Financial/Directors’ Reports) Instrument 
2016/191 as issued by the Australian Securities and 
Investments Commission. Amounts in the Director’s Report 
and the Financial Statements have been rounded off to the 
nearest whole number of million dollars and one decimal 
place representing hundreds of thousands of dollars, or in 
certain cases, the nearest dollar in accordance with that class 
order.
This report is made in accordance with a resolution of the 
Directors and is signed for and on behalf of the Directors.
Mr. NG Chatfield
Chairman 
20 November 2019
9 ARISTOCRAT LEISURE LIMITED Annual Report 2019
COUNTRIES
 80 
EMPLOYEES
 6,400+
REVENUE
 $4.4 BILLION 
Revenue by Segment Revenue by Strategic Segment
LICENSED JURISDICTIONS
 332
AUS
NZ
PHI
MAC
IND
ARG
SGP
USA
MEX
CAN
RUS
UKR
ISR
EU
GBR
ANZ
AmericasInternational
Class III
Digital
10.4%
44.3%
4.6%
40.7%
Gaming
Operations
Class III
Outright Sales
& Other
Digital
27.7%
40.7%
31.6%
OPERATING AND FINANCIAL REVIEW
ARISTOCRAT AT A GLANCE
10 ARISTOCRAT LEISURE LIMITED Annual Report 2019
OPERATING AND FINANCIAL REVIEW
BUSINESS STRATEGY 
 Aristocrat has consistently delivered high quality, sustainable growth by 
protecting and expanding our core business, and capturing opportunities in new 
markets and segments, both organically and through disciplined M&A. 
BUSINESS STRATEGIES AND PROSPECTS  
FOR FUTURE FINANCIAL YEARS 
Aristocrat continues to execute its established growth 
strategy, which is built on the three pillars of great talent, 
exceptional game content and hardware, and increasing 
distribution channels. 
The business delivers high quality, sustained growth by 
focusing on these core drivers, and working hard to improve 
our competitiveness.
Over recent years, Aristocrat has delivered outstanding share 
growth in existing markets, while capturing opportunities in 
new markets and segments, both organically and through 
disciplined M&A. The business’ Digital footprint continues to 
scale, with the successful scaling of core Apps and expansion 
into new genres.
Over the medium term, Aristocrat will maintain our focus on 
delivering above category growth through:
 — further share expansion in existing markets;
 — pushing further into attractive Land-based adjacencies, 
primarily in North America; and 
 — strong organic investment to ensure sustained core 
momentum with a rigorous focus on returns. 
Key investment priorities will include product and 
technology, core digital, data and transformation skillsets. 
Aristocrat is also taking a strategic approach to building 
and leveraging connections across our global business to 
ultimately bring a broader range of value-adding products, 
services and experiences to customers and players.
Aristocrat will continue to drive growth in Digital, with a 
diversified portfolio approach across both Social Casino 
and Social Casual. Over time, we will look to extend our 
leadership positions across multiple attractive social games 
genres. 
Aristocrat’s strong balance sheet and further growth in 
recurring revenues (to above 68% for FY19) also gives the 
business broad optionality to invest to sustain our growth 
momentum and create value for shareholders. We actively 
scan for non-organic opportunities to accelerate our strategy, 
in particular bolt-on opportunities that would deliver 
strategic capabilities in either Land-based or Digital. 
Aristocrat will increasingly seek to take industry leadership 
positions on key Environment, Social and Governance 
(ESG) issues, including responsible game play, consumer 
privacy, and data governance, consistent with our focus on 
sustainable and long-term performance for shareholders.
We will also continue to evolve our operating model to 
support scalability and the execution of our strategy over 
time. 
11 ARISTOCRAT LEISURE LIMITED Annual Report 2019
EARNINGS SUMMARY
Key performance indicators for the current period and prior period are set out below.
A$ million
Constant 
currency2 
2019 2019 20183
Variance vs. 2018
Constant 
currency2 
%
Reported 
%
Normalised results1
Operating revenue 4,113.8 4,397.4 3,583.8 14.8 22.7
EBITDA 1,485.8 1,596.8 1,328.6 11.8 20.2
EBITA 1,252.1 1,346.9 1,129.3 10.9 19.3
NPAT 699.9 752.8 616.9 13.5 22.0
NPATA 831.2 894.4 729.6 13.9 22.6
Earnings per share (fully diluted) 109.7c 118.0c 96.5c 13.7 22.3
EPS before amortisation of acquired intangibles (fully diluted) 130.3c 140.2c 114.1c 14.2 22.9
Total dividend per share 56.0c 56.0c 46.0c 21.7 21.7
Reported results
Revenue 4,113.8 4,397.4  3,509.5 17.2 25.3
Profit after tax 650.1 698.8  542.6 19.8 28.8
NPATA 781.4 840.4  655.3 19.2 28.2
Balance sheet and cash flow
Net working capital/revenue 6.0% 5.6% 1.7% 4.3pts 3.9pts
Operating cash flow 1,010.1 1,085.5 933.8 8.2 16.2
Closing net debt/(cash) 2,090.3 2,224.1 2,453.0 14.8 9.3
Gearing (net debt/consolidated EBITDA4) n/a 1.4x 1.7x n/a 0.3x
1. Normalised results and operating cash flow are statutory profit (before and after tax) and operating cash flow, excluding the impact of certain significant items 
relating to the acquisitions of Plarium and Big Fish detailed on page 17.  
The operating revenue and results for the 12 months to 30 September 2018 reflect the ongoing revenue recognition principles for the acquired businesses 
since the date of acquisition, and corresponds to the revenue and results that would have been recognised under Accounting Standards had the businesses 
not been acquired to explain the underlying performance of the entity and the drivers of its profit.
2. Results for 12 months to 30 September 2019 are adjusted for translational exchange rates using rates applying in 2018 as referenced in the table on page 21.
3. Comparative period has been restated per note 6-8 in the financial statements.
4. Consolidated EBITDA as defined by the Credit Agreement. 
The information presented in this Review of Operations has not been audited in accordance with the Australian Auditing Standards.
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
12 ARISTOCRAT LEISURE LIMITED Annual Report 2019
OPERATIONAL HIGHLIGHTS
Key operational highlights for the period are set out below:
Increased share while maintaining yield in the Land-based 
North America Gaming Operations business:
 — Class III Premium installed base grew 14.3% to 22,998 
units, with continued penetration of leading hardware 
configurations and high-performing game titles.
 — Class II installed base grew 3.9% to 25,220 units, driven 
by the continued success of the Class II video product 
Ovation™.
 — Total average fee per day increased 1.3% to US$50.46, 
with continued strong product performance in the period.
Grew share in Land-based Outright Sales:
 — North America – grew ship share through entry into 
adjacent markets: Video Lottery Terminals (VLT), 
Washington Central Determinant System (CDS) and 
Bartop Poker, with 29.6% growth in unit sales. 
 — ANZ – maintained market-leading ship share.
 — International Class III – continued focus on floor 
optimisation strategies.
Profitable growth in the Digital business:
 — RAID: Shadow Legends™ was launched globally in March 
and continues to deliver strong performance metrics.
 — Daily Active Users (DAU) moderated to 7.5 million, driven 
by new game launches in the Social Casual segment, that 
were offset by a decline in the Social Casino segment, 
as we focus our efforts on monetising the existing player 
base, consistent with industry trends. 
 — Average Bookings Per Daily Active User (ABPDAU) grew 
modestly to US$0.41 representing our focus on continued 
growth in Social Casino monetisation, offset by the growth 
of our Social Casual segment which monetises at a lower 
rate.
Investment in talent and technology:
 — Aristocrat has maintained its strong investment in talent 
and technology to drive growth across the Land-based 
and Digital businesses, with continued penetration into 
adjacent markets.
 — The business has continued to lift investment in D&D in 
absolute terms.
Strong financial metrics:
 — Strong EBITDA margin at 36.3% decreased slightly against 
the prior period, with margin expansion across the Land-
based business partly offsetting the expected moderation 
driven by the full period impact of the lower margin 
Digital acquisitions.
 — Gearing (Net Debt/EBITDA) decreased to 1.4x leverage, 
from 1.7x pro-forma at 30 September 2018.
 — Cash generating fundamentals remain strong, 
demonstrated by US$200 million paydown of TLB and 7.0 
cents per share (cps) growth in the final dividend to 34.0 
cps ($217.1 million).
 — Capital expenditure increased 18% to $317 million 
supporting further growth in the Americas Gaming 
Operations installed base.
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
13 ARISTOCRAT LEISURE LIMITED Annual Report 2019
PERFORMANCE SUMMARY
Normalised profit after tax and before amortisation of 
acquired intangibles (NPATA) of $894.4 million for the 
period represented a 23% increase (14% in constant 
currency) compared to $729.6 million in the prior 
corresponding period. Revenue increased by 23% (15% 
in constant currency) driven by growth in Americas and 
Digital. Normalised fully diluted earnings per share before 
amortisation of acquired intangibles of 140.2c represents 
a 23% (14% in constant currency) increase on the prior 
corresponding period. 
Net gearing decreased to 1.4x from 1.7x pro-forma 
leverage in the prior corresponding period reflecting strong 
performance across the business, as well as continued 
strength of the cashflow generating fundamentals of the 
business.
 — Strong growth in the Americas business drove a $95.8 
million improvement in post-tax profit, driven by a 14.3% 
expansion in the Class III Premium Gaming Operations 
footprint, a 3.9% expansion in the Class II Gaming 
Operations footprint and growth in the overall average 
fee per day (FPD) to over US$50, complemented with 
strong Outright Sales performance in the period as a 
result of entering adjacent markets (VLT, Washington CDS 
and Bartop Poker).
 — The ANZ business delivered $4.3 million in incremental 
post-tax profit, driven by performance of the Helix+™ 
and Helix XT™ cabinets, the release of the new Helix X™ 
cabinet and continued penetration of the Dragon Link™ 
and Dragon Cash™ game families.
 — Digital delivered post-tax earnings growth of $37.0 
million due to the full period impact of the acquisitions 
and sustained performance across the game portfolio.
 — International Class III post-tax profit declined $9.8 million 
due to fewer significant new openings and expansions in 
the current period.
 — Corporate costs and interest increased by $7.8 million 
due to the full period impact of the acquisitions.
 — The Group’s strategic investment in talent and 
technology, represented by higher absolute D&D spend 
at 11.4% of revenue, continues to deliver market-leading 
products across an expanded range of markets and 
segments in line with the Group’s growth strategy.
 — The decrease in the Group’s effective tax rate (ETR) 
from 28.9% to 27.5%, resulted in a $21.4 million benefit 
and reflects the impact of US tax reform and change in 
geographic business mix from the acquisitions. 
 — Foreign exchange positively impacted the business 
performance by $65.7 million.
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
NPATA movement FY18 to FY19 (A$ million)
Movements in the graph above are on a constant currency basis and are tax effected at the prior year tax rate.
729.6
894.4
95.8 4.3 37.0 21.4
65.7(9.8) (7.8) (41.8)
NPATA
FY 2018
Americas ANZ Digital International
Class III
Corporate
Costs / Interest
Group D&D
expense
Income tax
rate movement
Foreign
exchange
NPATA
FY 2019
14 ARISTOCRAT LEISURE LIMITED Annual Report 2019
GROUP PROFIT OR LOSS
Results in the current period and prior corresponding period are in reported currency and normalised for significant items 
and adjustments as outlined on page 17. Segment profit is stated before amortisation of acquired intangibles.
A$ million 2019 20181
Variance  
%
Segment revenue
 Australia and New Zealand  456.2  454.5  0.4 
 Americas  1,948.0  1,579.9  23.3 
 International Class III  204.5  210.5  (2.9)
 Digital  1,788.7  1,338.9  33.6 
 Total segment revenue  4,397.4  3,583.8  22.7 
Segment profit
 Australia and New Zealand  213.6  207.1  3.1 
 Americas  1,073.2  859.2  24.9 
 International Class III  94.3  103.4  (8.8)
 Digital  528.9  438.2  20.7 
 Total segment profit  1,910.0  1,607.9  18.8 
Unallocated expenses
 Group D&D expense  (500.4)  (413.6)  (21.0)
 Foreign exchange  0.3  (3.4)  n/a 
 Corporate  (63.0)  (61.6)  (2.3)
 Total unallocated expenses  (563.1)  (478.6)  (17.7)
 EBIT before amortisation of acquired intangibles (EBITA)  1,346.9  1,129.3  19.3 
 Amortisation of acquired intangibles  (184.4)  (156.3)  (18.0)
 EBIT  1,162.5  973.0  19.5 
 Interest  (124.0)  (105.4)  (17.6)
 Profit before tax  1,038.5  867.6  19.7 
 Income tax  (285.7)  (250.7)  (14.0)
 Profit after tax (NPAT)  752.8  616.9  22.0 
 Amortisation of acquired intangibles after tax  141.6  112.7  25.6 
 Profit after tax and before amortisation of acquired intangibles (NPATA)  894.4  729.6  22.6 
1. Comparative period has been restated per note 6-8 in the financial statements.
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
15 ARISTOCRAT LEISURE LIMITED Annual Report 2019
REVENUE
Segment revenue increased $814 million or 23% in reported 
currency (15% in constant currency), principally driven by 
growth in Digital, Gaming Operations and North American 
Outright Sales.
In Gaming Operations, revenue increased 14%, with the 
Premium Class III and Class II footprints growing 14.3% 
and 3.9% respectively, while overall average fee per day 
increased 1.3%. Performance was fuelled by continued 
penetration of the high-performing products Lightning 
Link™, Dragon Link™, 5 Dragons Grand™, Buffalo Grand™, 
Ovation™ and success of the newly launched Buffalo 
Diamond™.
Digital revenue grew 24% to US$1,252 million, driven by 
the full period impact of the acquisitions, scaling of new and 
recently released games and continued strong performance 
in Jackpot Magic Slots™ and Cooking Craze™.
In North America Outright Sales, revenue increased 22%, 
with ship share growth in an increasingly competitive 
environment, including successful entry into the adjacent VLT 
Atlantic Canada, VLT Manitoba, Washington CDS and Bartop 
Poker markets. Continued strength in average sales price 
(ASP) reflected Aristocrat’s continued portfolio depth, led by 
the performance of the Helix XT™, Helix Tower™ and Arc™ 
cabinets.
Australia & New Zealand revenue remained in line with 
the prior comparative period at $456 million in reported 
currency, while maintaining market-leading ship share. 
In International Class III, revenue decreased 3% to $205 
million in reported currency, due to fewer significant new 
openings and expansions in the current period.
Revenue by Strategic Segment
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
2019
2018¹
Gaming
Operations
Class III Outright 
Sales & OtherDigital
$4.40bn
$3.58bn
27.7%
31.6%
40.7%
27.7%
34.9%
37.4%
1. Comparative period has been restated per note 6-8 in the financial 
statements.
All amounts are in reported currency unless otherwise stated.
16 ARISTOCRAT LEISURE LIMITED Annual Report 2019
EARNINGS
Segment profit increased $302 million in reported currency, 
up 19% compared to the prior corresponding period. 
Margin expansion was achieved in ANZ and Americas, both 
driven by product mix. 
The full period impact of the Plarium and Big Fish 
acquisitions, which introduced the lower margin Social 
Casual business to our Digital portfolio, resulted in the 
overall Digital margin moderating in line with expectations 
from 33% to 30%.
Segment Profit Margin % of Revenue
1. Comparative periods have been restated per note 6-8 in the financial 
statements.
The Group continued to invest significantly in talent 
and technology to deliver competitive product across a 
broad range of Land-based and Digital segments. The 
Group’s investment in D&D as a percentage of revenue 
was maintained at 11.4%, with continued investment in 
adjacencies. Total reported spend increased $87 million 
or 21% (14% in constant currency), which includes the full 
period impact of the Digital acquisitions. 
Corporate costs increased by $1.4 million compared to the 
prior corresponding period and as a percentage of revenue 
decreased to 1.4%.
Net interest expense increased $18.6 million to $124 million, 
reflecting the full period impact of increased debt levels to 
support the prior period acquisitions.
The effective tax rate (ETR) for the reporting period was 
27.5% compared to 28.9% in the prior corresponding 
period. This was largely attributable to the changes driven by 
US tax reform that came into effect from 1 January 2018 and 
the full period impact of a change in business mix resulting 
from the acquisitions.
Other Key Margins % of Revenue and ETR
1. Comparative periods have been restated per note 6-8 in the financial 
statements.
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
2017¹ 2018¹ 2019
44
.1
53
.7
52
.4
41
.5
45
.6
54
.4
49
.1
32
.7
46
.8
55
.1
46
.1
29
.6
20%
30%
40%
50%
60%
Australia and
New Zealand
Americas International
Class III
Digital
Group D&D
expense/
revenue
Segment
Profit/
revenue
EBITDA/
revenue
NPATA/
revenue
Effective
Tax Rate
11
.2
49
.9
41
.7
22
.6
32
.0
11
.5
44
.9
37
.1
20
.4
28
.9
11
.4
43
.4
36
.3
20
.3
27
.5
0%
10%
20%
30%
40%
50%
60%
2017¹ 2018¹ 2019
17 ARISTOCRAT LEISURE LIMITED Annual Report 2019
Reconciliation of statutory revenue to operating revenue
A$ million 2019 20181
Statutory revenue as reported in the financial statements  4,397.4  3,509.5 
Add back fair value adjustments relating to the acquisitions  -  74.3 
Operating revenue  4,397.4  3,583.8 
1. Comparative period has been restated per note 6-8 in the financial statements.
Reconciliation of statutory profit to NPATA
A$ million 2019 2018
Statutory profit as reported in the financial statements  698.8  542.6 
Amortisation of acquired intangibles (tax effected)  141.6  112.7 
Reported profit after tax before amortisation of acquired intangibles  
(Reported NPATA)  840.4  655.3 
Add back net loss from significant items and adjustments after tax  54.0  74.3 
Normalised Profit After Tax before amortisation of acquired intangibles 
(Normalised NPATA)  894.4  729.6 
Significant items 
30 Sep 2019
A$ million Before tax After tax
Contingent retention arrangements relating to the acquisitions (42.1) (35.0)
Acquisition related transaction, integration and restructuring costs (22.9) (19.0)
Net loss from significant items (65.0) (54.0)
Significant Items:
Contingent retention arrangements related to the 
acquisitions of Plarium and Big Fish: The Group’s reported 
result after tax for the period includes an expense of $35 
million relating to the contingent retention arrangements for 
the acquisitions of Plarium and Big Fish. 
Acquisition related transaction, integration and restructuring 
costs: The Group’s reported result after tax for the period 
includes an expense of $19 million relating to an onerous 
lease provision for the Big Fish Seattle premises, which was 
committed to by previous ownership.
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
18 ARISTOCRAT LEISURE LIMITED Annual Report 2019
BALANCE SHEET
The balance sheet can be summarised as follows:
A$ million 30 Sep 2019 31 Mar 2019 30 Sep 2018
Variance 
%
Cash and cash equivalents  568.6  504.0  428.1  32.8 
Property, plant and equipment  431.2  415.3  389.3  10.8 
Intangible assets  4,008.3  3,882.8  3,898.8  2.8 
Other assets  1,328.9  1,201.4  1,130.6  17.5 
Total assets  6,337.0  6,003.5  5,846.8  8.4 
Non-current borrowings  2,792.7  2,933.8  2,881.1  (3.1)
Payables, provisions and other liabilities  1,400.7  1,182.7  1,233.2  13.6 
Total equity  2,143.6  1,887.0  1,732.5  23.7 
Total liabilities and equity  6,337.0  6,003.5  5,846.8  8.4 
Net working capital  248.0  228.5  62.0  300.0 
Net working capital / revenue  5.6  5.6  1.7 3.9pts
Net debt / (cash)  2,224.1  2,429.8  2,453.0  9.3 
Significant balance sheet movements from 30 September 
2018 are:
Cash and cash equivalents: The increase in cash reflects the 
strong cash flow generation capability of the business which 
provides opportunities to fund growth.
Net working capital: The increase was driven by revenue 
growth, particularly in the Land-based business where there 
was compression at the period end due to the timing of new 
product releases.
Property, plant and equipment: The increase reflects the 
strong growth in the Americas Gaming Operations installed 
base, up 9% on prior comparative period, and leasehold 
improvements associated with new premises.
Non-current borrowings: The reduction is largely due to 
the repayment of US$200 million of the Term Loan B facility 
during the reporting period, partly offset by the impact of 
foreign exchange on the US dollar denominated loan facility.
Total equity: The change in total equity reflects the result 
for the period and changes in reserves due to currency 
movements, net of dividends paid during the period.
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
19 ARISTOCRAT LEISURE LIMITED Annual Report 2019
STATEMENT OF CASH FLOWS
The movement in net debt (debt less cash), after eliminating foreign exchange movements is set out below:
Operating cash flow
A$ million 2019 2018
Change  
%
EBITDA 1,596.8 1,328.6 20.2
Change in net working capital (186.0) 69.1 n/a
Subtotal 1,410.8 1,397.7 0.9
Interest and tax (349.7) (313.0) (11.7)
Acquisition related and significant items (cash and non-cash) (63.5) (107.3) 40.8
Other cash and non-cash movements 87.9 (43.6) n/a
Operating cash flow 1,085.5 933.8 16.2
Operating cash flow less capex 768.9 664.8 15.7
Consolidated cash flow
A$ million 2019 2018
Change  
%
Operating cash flow 1,085.5 933.8 16.2
Capex (316.6) (269.0) (17.7)
Acquisitions and divestments (20.8) (1,938.6) 98.9
Investing cash flow (337.4) (2,207.6) 84.7
Proceeds from borrowings - 1,660.0 n/a
Repayment of borrowings (293.1) (225.8) (29.8)
Dividends and share payments (337.2) (299.0) (12.8)
Financing cash flow (630.3) 1,135.2 n/a
Net increase/(decrease) in cash 117.8 (138.6) n/a
Operating cash flow increased 16.2% to $1,085.5 million 
compared to the prior corresponding period, reflecting 
continued strong performance and cash flow capabilities 
across the businesses with a higher proportion of recurring 
revenues, driven by growth in Americas Gaming Operations 
and the full period impact of the Digital acquisitions.
Interest and tax increased 11.7% due to the full period 
impact of the acquisitions.
Acquisition related and significant items in the current period 
include largely provisions relating to contingent retention 
arrangements for Plarium and Big Fish and an onerous 
contract provision relating to the Big Fish Seattle premises. 
Capital expenditure relates primarily to investment in 
hardware to support continued strong growth in the 
Americas Gaming Operations installed base and leasehold 
improvements relating to new premises. 
Cash flow in the statutory format is set out in the financial 
statements.
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
20 ARISTOCRAT LEISURE LIMITED Annual Report 2019
FUNDING AND LIQUIDITY
The Group had committed loan facilities of $3.0 billion as at 
30 September 2019, comprising a US$1.9 billion Term Loan 
B (TLB) facility and a $150 million revolving facility. 
During the period, Aristocrat successfully renegotiated its 
$100 million revolving facility which was due to mature in 
October 2019. The facility limit was increased to $150 million 
and the maturity date extended to July 2024. This facility 
remains undrawn and provides the Group with competitively 
priced financing as well as increased flexibility and overall 
liquidity. The Group repaid US$200 million of the Term 
Loan B facility during the second half of the year, reflecting 
Aristocrat’s strong cash balance and liquidity position 
providing the business with flexibility to repay debt.
The Group’s facilities are summarised as follows:
Facility
 Drawn as at 
30 Sep 2019 Limit
Maturity 
date
Term Loan B 
facility US$1,900.0m US$1,900.0m Oct 2024
Revolving 
facility A$0.0m A$150.0m Jul 2024
Overdraft 
facilities A$0.0m A$8.0m
Annual 
Review
The Group’s interest and debt coverage ratios are as follows 
(x):
* EBITDA refers to Consolidated EBITDA for the Group as defined in 
Aristocrat’s Syndicated Facility Agreement (also referred to as Bank EBITDA). 
** Interest expense shown above includes ongoing finance fees relating to 
bank debt facility arrangements, such as line fees.
The Group’s leverage (net debt / EBITDA) reduced over 
the reporting period, from 1.7x pro-forma at 30 September 
2018 to 1.4x at 30 September 2019 reflecting both earnings 
growth and free cash flow generation. 
CREDIT RATINGS
The Group maintains credit ratings from both Moody’s 
Investor Services and Standard & Poor’s to support its Term 
Loan B facility arrangements. 
As at 30 September 2019, Aristocrat holds credit ratings of 
BB+ from Standard & Poor’s and Ba1 from Moody’s. 
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
30 Sep 2018 31 Mar 2019 30 Sep 2019
EBITDA*/interest
expense** (x)
Gross debt/
EBITDA* (x)
Net debt (cash)/
EBITDA* (x)
11.4
2.0 1.7
11.7
2.0 1.6
12.7
1.7 1.4
0x
5x
10x
15x
21 ARISTOCRAT LEISURE LIMITED Annual Report 2019
DIVIDENDS
The Directors have authorised a final fully franked dividend 
of 34.0 cents per share (A$217.1 million), in respect to the 
12-month period ended 30 September 2019. Total dividends 
in respect of the 2019 year amount to 56.0 cents per share 
($357.1 million) and represents an increase of 21.7% (or 10.0 
cents), reflective of growth in performance, strength of cash 
flows and improvement in gearing levels.
The dividend is expected to be declared and paid on 17 
December 2019 to shareholders on the register at 5.00pm 
on 29 November 2019. The dividend will be fully franked.
FOREIGN EXCHANGE
Given the extent of the Group’s global operations and 
the percentage of its earnings derived from overseas, its 
reported results are impacted by movements in foreign 
exchange rates. 
In the 12 months to 30 September 2019, the Australian 
dollar was, on average, weaker against the US dollar when 
compared to the prior corresponding period. 
The impact of translating foreign currency (translational 
impact) increased revenue by $283.6 million, while 
increasing normalised profit after tax and before amortisation 
of acquired intangibles by $63.2 million on a weighted 
average basis when compared with rates prevailing in the 
respective months in the prior corresponding period. In 
addition, as at 30 September 2019, the cumulative effect 
of the retranslation of the net assets of foreign controlled 
entities (recognised through the foreign currency translation 
reserve) was a credit balance of $139.2 million (compared to 
a credit balance of $51.9 million as at 30 September 2018).
Based on the Group’s mix of profitability, the major exposure 
to translational foreign exchange results from the Group’s 
US dollar profits. A US dollar 1 cent change in the US$:A$ 
exchange rate results in an estimated annualised $12 million 
translational impact on the Group’s annual profit after tax and 
before amortisation of acquired intangibles. This impact will 
vary as the magnitude and mix of overseas profits change.
Foreign exchange rates compared with prior corresponding 
periods for key currencies are as follows: 
A$: 30 Sep 2019 31 Mar 2019 30 Sep 2018
2019 
Average¹
2018 
Average¹
USD  0.6751  0.7099  0.7224  0.7018  0.7573 
NZD  1.0780  1.0427  1.0902  1.0573  1.0892 
EUR  0.6193  0.6327  0.6223  0.6245  0.6362 
GBP  0.5492  0.5454  0.5541  0.5519  0.5621 
ZAR  10.2293  10.2321  10.2183  10.0755  9.9573 
ARS  38.8778  30.7823  29.8258  30.5052  18.3765 
1. Average of monthly exchange rates only. No weighting applied.
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
GROUP PERFORMANCE
22 ARISTOCRAT LEISURE LIMITED Annual Report 2019
Segment profit represents earnings before interest and tax, 
and before significant items associated with the acquisitions 
of Plarium and Big Fish, charges for D&D expenditure, 
amortisation of acquired intangibles and corporate costs. 
The total amount of these items is disclosed in the Group’s 
Statement of Profit or Loss. Constant currency amounts refer 
to 2019 results restated using exchange rates applying in 
2018.
AMERICAS
Summary Profit or Loss 
US$ million 2019 20181 Variance %
Revenue 1,363.1 1,193.8 14.2
Profit 750.6 649.9 15.5
Margin 55.1% 54.4% 0.7 pts
1. Comparative period has been restated per note 6-8 in the financial 
statements.
In local currency, Americas profits increased by 15.5% to 
US$750.6 million driven by strong growth in the Class III 
Premium and Class II Gaming Operations footprint and 
Class III Outright Sales portfolio; led by continued depth and 
strength in the product portfolio and continued penetration 
into adjacent markets, including VLT Atlantic Canada, VLT 
Manitoba, Washington CDS and Bartop Poker.
North America Gaming Operations units and 
Average US$ fee/day
The Class III Premium Gaming Operations installed base 
grew 14% fuelled by continued penetration of the market-
leading game Dragon Link™ on the Arc Single™ cabinet 
together with the successful debut of the high-performing 
game Buffalo Diamond™ on the Flame55™ cabinet. 
Aristocrat successfully launched the new Edge X™ cabinet 
with Mad Max Fury Road™, Farmville™ and its pop icon 
title Madonna™, and Dollar Storm™ on the new MarsX™ 
cabinet, the first multi-site jackpot product in the Lightning 
Link™ and Dragon Link™ series. 
The Class III Premium Gaming Operations installed base 
will continue to be supported by a strong product portfolio 
across a diverse range of product segments. Aristocrat will 
release a range of new titles in FY20, including Zorro: Wild 
Ride™ and Billions™ on the Flame55™ cabinet, Star Trek: 
Next Generation™ on the Edge X™ cabinet, and Cash 
Express: Luxury Line™, which is a continuation of the award-
winning Cash Express™.
Average fee per day across Class II and Class III Premium 
Gaming Operations increased 1.3%, driven by game 
performance across the portfolio, while maximising floor 
share and placements. 
In Class II Gaming Operations, placements increased by 
3.9% supported by incremental Ovation™ units while 
sustaining the existing mechanical footprint. 
The Class II Gaming Operations installed base will continue 
to be supported by the release of Helix XT™ and MarsX™ 
cabinets, which include 4K graphics displayed on a curved 
42” screen and more than 40 back-catalogue games 
including Welcome to Fantastic Jackpots™, Cash Current™, 
Wild Up ReSpins™, and Cash Up™. 
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
REGIONAL SEGMENT REVIEW
Class III 
premium units
Gaming operations
US$/dayClass II units
+9%
U
S$ per day
1
U
ni
ts
16,161
20,114 22,998
22,437
24,264
25,220
38,598 
44,378 
48,218 
$47.78
$49.79 $50.46
0.0
20.0
40.0
60.0
80.0
100.0
0
10,000
20,000
30,000
40,000
50,000
2017¹  2018¹  2019
1. Comparative periods have been restated per note 6-8 in the financial 
statements.
23 ARISTOCRAT LEISURE LIMITED Annual Report 2019
North America Outright Sales units and Average US$  
Price / unit
Outright Sales revenue increased by 22% compared to the 
prior corresponding period driven by the continued strength 
of the overall portfolio led by Helix XT™, Helix Tower™ and 
Arc™ cabinets. The MarsX™ dual screen cabinet launched 
in July with a suite of five dedicated titles, spearheaded by 
Buffalo Gold Revolution™. The depth of the MarsX™ launch 
library has led to strong early performance.
In addition, Aristocrat continued its expansion into adjacent 
markets, including VLT, Washington CDS and the Multigame 
and Poker segment. 
ASP remains strong, however slightly lower than prior 
periods, driven by expansion into the new adjacent markets. 
Video ASP remains in line with prior period driven by strong 
performance of Helix XT™ and Helix Tower™.
Latin America Outright Sales units, Average US$ Price / unit 
and Recurring Revenue installed base
Latin America revenue decreased 1.3% compared to the 
prior corresponding period driven by challenging conditions 
in the Mexico and Argentina markets. Steady growth in the 
Gaming Operations segment continues, supported by the 
penetration of Lightning Link™.
Platforms Average US$ price/platform unitConversions
U
S$ per unit
U
ni
ts 12
,5
75
13
,3
18
17
,2
62
2,
50
6
3,
14
7
2,
46
4
$18,892 $18,682
$18,097
4,000
8,000
12,000
16,000
20,000
24,000
0
2,000
6,000
10,000
14,000
18,000
2017  2018 2019
+30% PlatformGrowth
Platforms Average US$ price/platform unit
Recurring revenue
installed base
U
S$ per unit
U
ni
ts
2,
41
5
2,
03
6
1,
51
2
3,
64
4 4,
64
4
5,
03
6
$14,008
$15,081
$14,870
6,000
8,000
10,000
12,000
14,000
16,000
18,000
0
1,000
2,000
3,000
4,000
5,000
6,000
2017 2018 2019
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
REGIONAL SEGMENT REVIEW
24 ARISTOCRAT LEISURE LIMITED Annual Report 2019
AUSTRALIA AND NEW ZEALAND
Summary Profit or Loss
A$ million
Constant currency 
2019 2018
Variance 
%
Revenue 455.2 454.5 0.2 
Profit 213.2 207.1 2.9 
Margin 46.8% 45.6% 1.2 pts
ANZ revenue increased by 0.2% to $455 million in constant 
currency compared to the prior corresponding period, while 
overall profit increased by 2.9% to $213.2 million. 
ANZ margin expanded by 120 bps to 46.8% driven by 
favourable commercial mix towards recurring revenue.
ANZ Outright Sales units and Average A$ Price / unit
The average cabinet selling price increased slightly from the 
prior corresponding period driven by positive cabinet mix to 
Helix+™ and Helix XT™.
The ANZ business also sustained strong ship share across 
the market, driven by the launch of our premium Helix X™ 
cabinet with the latest Lightning Link™ and Dragon Link™ 
game releases.
INTERNATIONAL CLASS III
Summary Profit or Loss
A$ million
Constant currency 
2019 2018
Variance 
%
Revenue 195.2 210.5 (7.3)
Profit 89.6 103.4 (13.3)
Margin 45.9% 49.1% (3.2) pts
Class III 
Platforms 5,664 6,018 (5.9)
International Class III revenue and profit decreased 7.3% 
and 13.3% respectively to $195 million and $89.6 million 
compared to the prior corresponding period, with fewer 
significant new openings and expansions in APAC, partially 
offset by continued growth in EMEA. 
The EMEA business launched Helix XT™ and the first 
Lightning Link™ Lounge concept during the year. EMEA 
continue to take market share in Class II Bingo following the 
successful launch in South Africa late in the prior reporting 
period.
Platforms Average A$ price/platform unitConversions
A$ per unit
U
ni
ts
14
,3
77
 
14
,0
79
 
13
,4
25
 
4,
21
4
6,
29
4
4,
22
5
$20,348 $20,487
$21,252
10,000
14,000
18,000
22,000
26,000
0
4,000
8,000
12,000
16,000
2017 2018 2019
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
REGIONAL SEGMENT REVIEW
25 ARISTOCRAT LEISURE LIMITED Annual Report 2019
DIGITAL
Summary Profit or Loss
US$ million 2019 2018
Variance 
%
Bookings 1,227.8 1,013.9 21.1 
Revenue 1,252.2 1,009.2 24.1 
Profit 370.2 330.8 11.9 
Margin 29.6% 32.8% (3.2) pts
Digital revenue increased by 24% compared to the prior 
corresponding period, reflective of the full period impact 
of the Big Fish and Plarium acquisitions. The acquisitions 
delivered an additional US$239.5 million of revenue 
compared to the prior corresponding period. 
On a pro-forma basis, revenue grew 8% compared to the 
prior corresponding period, driven by successful new game 
launches in the Social Casual segment, which includes our 
latest evergreen franchise, RAID: Shadow Legends™. 
Our Social Casino portfolio, as a whole, remained stable, 
with pro-forma revenue growing at 2% compared to the 
prior corresponding period. This is reflective of a maturing 
market, compounded by a steady decline in players across 
the industry. 
Digital profits increased 11.9% to US$370.2 million 
with segment margin moderating to 29.6% in line with 
expectations, due to:
 — the full period impact of the lower margin Social 
Casual segment introduced through the prior period 
acquisitions; 
 — targeted investment in the development of new features 
and live operations in Social Casino; and 
 — significant marketing investment behind the successful 
launch of RAID: Shadow Legends™, launched globally in 
March 2019.
Bookings1 by Type 
1. Bookings are an operational metric reflecting the amount of virtual 
currency, virtual goods and premium games the consumer has purchased. 
Reported revenue comprises bookings adjusted for deferred revenue.
Social Casino
The Social Casino segment contributed US$638.0 million in 
bookings, an increase of 12% on the prior period, driven by 
the full period impact of the Big Fish acquisition.
The focus for the Social Casino segment will remain on 
leveraging the strong slot content capabilities across 
Aristocrat and enhancing offerings in our existing franchises 
through a strong pipeline of new features, including 
collectables, social features, missions, and live operations.
Social Casual
The Social Casual segment contributed US$589.8 million 
in bookings in the period, an increase of 33% compared to 
the prior corresponding period, driven by successful new 
game launches, including our latest evergreen franchise, 
RAID: Shadow Legends™, and contributions from other 
new games such as Lost Island: Blast Adventure™ and Toy 
Story Drop!™. Our older titles performed well and above 
expectations for games that have been in the market for over 
five years. We remain focused on these titles by delivering 
continued live operations and content aimed at maintaining 
the existing player base. 
Aristocrat remains focused on utilising our talent and 
capabilities across game design, data, marketing and market 
intelligence across the entire Digital portfolio, to deliver a 
growth pipeline of new games focused on our target players.
Social Casino Social Casual
Bo
ok
in
gs
 U
S$
m
+21%
Bookings Growth
292.8
568.8
638.0
445.1
589.8
1,013.9
1,227.8
0
200
400
600
800
1,000
1,200
1,400
2017 2018 2019
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
REGIONAL SEGMENT REVIEW
26 ARISTOCRAT LEISURE LIMITED Annual Report 2019
Daily Active Users (DAU) and Average US$  
bookings per DAU (ABPDAU) 
Daily Active Users (DAU) moderated to 7.5 million, driven by 
new game launches in the Social Casual segment that were 
offset by a decline in the Social Casino segment, as we focus 
our efforts on monetising the existing player base, consistent 
with industry trends. 
ABPDAU grew US1c compared to the prior corresponding 
period, representing our focus on continued growth in 
Social Casino monetisation, offset by the growth of our 
Social Casual segment which monetises at a lower rate, but 
attracting large player bases. 
Reconciliation of Revenue to Bookings (US$ millions)
US$ million 2019 2018  2017
Revenue  1,252.2  1,009.2  292.8 
Deferred revenue (24.4)  4.7  - 
Bookings  1,227.8  1,013.9  292.8 
Digital pro-forma disclosures 
US$ million 2019 2018
Variance 
%
Bookings  
(US$ million) 1,227.8 1,161.8 5.7
DAU period end 
(million) 7.5 8.1 (7.4)
On a pro-forma basis, bookings grew 5.7% to US$1,227.8 
million driven by new game launches in the Social Casual 
segment, which includes our latest evergreen franchise, 
RAID: Shadow Legends™, modest growth from our Social 
Casino franchises, partly offset by a declining Premium PC 
business and legacy titles within the portfolio. 
DAU 
Period end 
(million)
ABPDAU
Full year
(US$)
2017 2018 2019
1.7
8.1
7.5
0.53
0.40 0.41
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
REGIONAL SEGMENT REVIEW
27 ARISTOCRAT LEISURE LIMITED Annual Report 2019
The identification and management of risks that could impact Aristocrat’s strategic and financial objectives is essential to good 
corporate governance, and the protection of long-term shareholder value. 
The Group’s Risk Management Framework defines how Aristocrat assesses, treats, monitors and reports risks, both current and 
emerging, and includes a Risk Appetite Statement indicating the level of risk the Group is willing to accept in the execution of 
its strategy. 
While Aristocrat has a strong track record of managing multiple and complex risks, some inherent risks remain, including a 
number not directly within the Group’s control. Key risks currently identified as relevant to Aristocrat are set out below.
Risk and Description Example Mitigations
Economic and Gaming Industry Conditions
A decline in economic/gaming industry conditions could:
 — adversely affect the ability of our Land-based customers to 
finance their operations;
 — impact the disposable incomes of players and therefore 
spending on entertainment activities.
This could decrease demand for our products and services 
impacting Group revenues.
 — Monitoring of economic and gaming industry conditions
 — Periodic re-evaluation of corporate strategy
 — Diversification of product and service offerings, with solid 
growth in recurring revenues
 — Expansion of addressable markets
 — Broadening of our geographic footprint
Geopolitical Environment
Our operations and those of our delivery partners exposed 
to unstable geopolitical environments could impact 
employee engagement, health and safety and our ability to 
innovate and create content should geopolitical conditions 
deteriorate.
 — Robust assessment of geopolitical conditions prior to new 
market entry
 — Monitoring of international issues, economic and political 
indicators
 — Monitoring and evaluation of legislation
 — Maintenance of strong relationships with key stakeholders 
in affected markets
 — Implementation and enhancement of our business 
continuity, resilience and redundancy measures
 — Diversification of studios/locations
Disruption
Failure to adequately respond to disruption through 
innovation and robust market strategies, in the Land-based 
and Digital businesses, could impact our market share, and 
financial and strategic objectives.
 — Continuous monitoring and re-evaluation of company 
strategy to account for changing trends, consumer 
behaviours, technology changes and competitor initiatives
 — Expansion and diversification of products, services and 
markets. Targeting of adjacent markets
 — Capital allocation to reflect the importance of disruption 
and the need to advance product development in an agile 
manner
 — Strategic M&A
OPERATING AND FINANCIAL REVIEW
PRINCIPAL RISKS
28 ARISTOCRAT LEISURE LIMITED Annual Report 2019
Risk and Description Example Mitigations
Competition and Product Innovation
The consolidation and entry of new market participants in the 
Land-based and Digital markets, requires us to continuously 
innovate, and create new content to retain and grow market 
share. 
If we fail to innovate and produce market viable products 
and services, there is an increased risk of growth stagnation, 
reduction in market share, and decreases in Group revenue.
 — Continued investment in skills and talent, and retention 
strategies
 — Diversification of markets and expansion of addressable 
markets
 — Strong Design and Development investment and rigorous 
focus on returns
 — Use of strategic partnerships
 — Strategic M&A
Government Gaming Regulation (Land and Digital)
Land-based
A change in government or regulatory policies may impact 
our operations or our customers’ operations. Further, 
changes in laws or regulations or their interpretation or 
enforcement could impact our ability to operate or deliver 
our strategies. 
Difficulties or delays in obtaining or maintaining required 
licences or approvals could negatively impact our business. 
This could affect our financial performance.
Social Gaming
Social games are generally not subject to product regulation. 
However, the industry is relatively new and stakeholder 
expectations are evolving. New regulations have the capacity 
to impact our operations. 
Land-based
 — Maintenance of a comprehensive regulatory compliance 
function and governance framework to monitor 
the political and regulatory environment across our 
jurisdictions, and to evaluate compliance to regulatory 
requirements
 — Robust reputation, government relations, industry 
association and regulatory strategies
Social Gaming
 — Monitoring of developments, proposals and rules enacted 
by government, industry and digital platform providers
 — Active shaping of industry dialogue and constructive 
participation in broader debates regarding social 
games to inform, educate and appropriately respond to 
stakeholder expectations 
Cyber/Data Governance
Uncontrolled access to systems and sensitive data could 
result in business disruption, financial loss, fines, prosecution 
and reputational damage with our customers, employees 
and shareholders.
 — Publication and implementation of a global information 
security policy
 — Implementation of robust and compulsory information 
security training program
 — Continued review and investment in cyber security 
measures and capabilities to improve organisational 
maturity
 — Review and enhancement of our data management 
practices, procedures and expertise
 — Maintenance of a business resilience program
Talent
Inability to recruit and retain key talent impacts our ability to 
deliver on our strategy and business objectives.
 — Refreshed talent management and competency 
framework
 — Continuous focus on company culture and improvement 
of Employee Value Proposition
 — Review of incentive and rewards programs
OPERATING AND FINANCIAL REVIEW
PRINCIPAL RISKS
29 ARISTOCRAT LEISURE LIMITED Annual Report 2019
Risk and Description Example Mitigations
Distribution Platforms
If digital platform partners enforce unfavourable terms of 
use, including increased fees, or shutdown our applications, 
this could result in higher operating costs, lower margins and 
restrict access to customers/players.
 — Continued development of in-house platforms
 — Monitoring of latest developments, proposals and rules 
enacted by platform partners
 — Ongoing and proactive dialogue with platform partners
Intellectual Property
Theft of, or inability to protect our intellectual property (IP) 
could result in a loss of competitive advantage due to loss 
of exclusivity, suppressed innovation, and/or reputation and 
brand damage. This could impact our revenues.
 — Formalised processes for registering trademarks, 
copyrights and patents, including the establishment of 
quotas
 — Investment in capability to support IP management
 — Engagement of internal/external legal support 
 — Contracts with third parties using Aristocrat IP preclude 
improper use of IP
 — Continued ‘zero tolerance’ approach to IP breaches, and 
rigorous enforcement culture
Tax
Changes in tax law (including goods and services taxes and 
stamp duties), or the way they are interpreted, may impact 
the tax liabilities of the Group and the assets in which we hold 
an interest.
 — Monitoring of changes in tax legislation using in-house 
and external tax specialists and legal advisors
 — Maintenance of a robust Tax Governance Framework 
setting out our approach to tax risk management and 
governance
 — Preparation of an annual Voluntary Tax Transparency Code 
Report for public consumption
Treasury
Unfavourable movements in foreign exchange or interest 
rates could increase our operating costs.
 — Implementation of a robust foreign exchange policy
 — Implementation of a comprehensive capital management 
strategy, including interest rate hedging strategy
Unplanned Operational Incident
Operational incident within the business impacts employee 
health and wellbeing, or the ability to deliver upon our 
contractual requirements, resulting in lost revenue and 
reputational impacts.
 — Business Resilience Framework including Business 
Continuity and Disaster Recovery Plans
 — Implementation of Crisis Management Program and tool
OPERATING AND FINANCIAL REVIEW
PRINCIPAL RISKS
30 ARISTOCRAT LEISURE LIMITED Annual Report 2019
REMUNERATION REPORT
This Remuneration Report for Aristocrat Leisure Limited 
and its controlled entities (Group) for the 12 months ended 
30 September 2019 (Reporting Period or FY2019) has 
been prepared in accordance with section 300A of the 
Corporations Act 2001 (Cth) (the Act), forms part of the 
Directors’ Report and has been audited as required by 
section 308(3C) of the Act.
Terms used in this Remuneration Report are defined in the 
Glossary on page 54.
AT A GLANCE – ALIGNMENT BETWEEN 
PERFORMANCE AND OUTCOMES
Stretch NPATA and EPSA targets set by the Board
 — Challenging NPATA target (70% weighting) of $833.6m 
(on a constant currency basis1) set by the Board in 
connection with FY2019 STI grant, which was a 34% 
increase on the FY2018 STI target.
 — Stretch EPSA target was set by the Board in connection 
with the FY2017 LTI grants that vested this year: 
Award year Threshold target Maximum target
FY17 10% 15%
FY16 7.5% 12.5%
 — Both NPATA and EPSA targets were set in the context of 
broadly flat key markets and segments, with these markets 
and segments remaining broadly flat over the course of 
the relevant STI and LTI performance periods.
 — Both organic and inorganic growth was taken into account 
by the Board in setting EPSA growth targets. 
• The 7.5%/12.5% min/max EPSA targets in respect of 
FY2016 grants were set on the basis that both organic 
and inorganic growth would be required in order for 
those targets to be achievable. 
• The Board then applied further stretch to the  
EPSA targets under the FY2017 LTI grant (10%/15% 
min/max). 
STI outcomes and performance in FY2019
Senior Executives received on average 102% of their 
STI target award (compared to the maximum target STI 
opportunity of 200%), supported by NPATA increasing by 
22.6% to $894.4 million (in reported currency) from the prior 
corresponding period.
 — Strong NPATA of $894.4 million ($834.2 million on a 
constant currency basis1), which was 100% of target, 
was driven through management delivering strong 
growth through the continued gain of market share 
across broadly flat existing markets, while capturing 
opportunities in new adjacent markets and segments.
 — Strong FCF Conversion of 102%, which was 108% of 
target, reflecting cash flow discipline and allowing 
Aristocrat to fund growth initiatives.
LTI outcomes and performance in FY2019
100% of PSRs awarded to Executive KMP under the 2017 LTI 
Grant vested following testing against the Relative TSR and 
Relevant EPSA performance measures.
 — 100% of the Relative TSR component (30% of total grant) 
vested as Aristocrat’s TSR performance was 109.26%, with 
Aristocrat 10th in its Peer Comparator Group and ranked 
at the 90th percentile.
 — 100% of the Relevant EPSA component (30% of total 
grant) vested based on a strong three-year EPSA CAGR of 
31.0%.
 — Strong Relevant EPSA growth of 31.0%, was driven 
through management delivering strong growth through 
the continued gain of market share across broadly flat 
existing markets, while capturing opportunities in new 
adjacent markets and segments.
1. Constant currency basis as set out in the approved budget.
31 ARISTOCRAT LEISURE LIMITED Annual Report 2019
REMUNERATION REPORT
OTHER KEY ITEMS TO HIGHLIGHT IN 2019
The Board has approved certain changes to the 
remuneration framework and also adopted enhanced 
disclosure practices in connection with a number of 
remuneration related matters. These included:
 — Taking into account feedback from investors and other 
external stakeholders and having considered a number 
of other LTI performance measures, including various 
return metrics, the Board approved a transition from a 
Relevant EPSA to a Relevant EPS hurdle (30% weighting) 
in connection with future LTI grants.
 — In addition to required statutory disclosures, introducing 
retrospective disclosure in this Remuneration Report 
of the actual quantitative STI targets (NPATA and FCF 
Conversion) set by the Board, together with disclosure of 
actual performance against those targets. 
 — Also expanding our disclosures on methodologies 
relating to target setting, including how hurdles are 
determined to ensure challenging stretch targets are set 
and what factors the Human Resources & Remuneration 
Committee and Board take into account in setting 
stretch targets.
 — Strengthening the clawback provisions that apply to 
unvested and vested incentives and including additional 
governance features into the process of testing incentive 
grants to continue to ensure a link between remuneration 
and risk.
 — Implementing a minimum shareholding policy for Non-
Executive Directors to acquire (within a five-year period) a 
minimum shareholding equivalent in value to their annual 
base fee.
The Board believes that these changes further enhance 
Aristocrat’s remuneration framework and the additional 
disclosure practices mean that Aristocrat continues to 
provide clear and transparent disclosure.
32 ARISTOCRAT LEISURE LIMITED Annual Report 2019
REMUNERATION REPORT
REMUNERATION REPORT OVERVIEW
List of KMPs – FY2019
Table 1 below outlines the KMP and their movements during FY2019
KMP Position Location Term as KMP
Non-Executive Directors
NG Chatfield Chair1; Director Australia Full financial year
KM Conlon Director Australia Full financial year
SW Morro Lead US Director2 United States Full financial year
PJ Ramsey Director United States Full financial year
AM Tansey Director Australia Full financial year
S Summers Couder Director United States Full financial year
ID Blackburne Chair1; Director Australia Retired on 21 February 2019
Executive KMP
T Croker CEO and Managing Director United States Full financial year
J Cameron-Doe CFO United States Full financial year
M Bowen CEO Global Land Based and Chief Transformation Officer3 Australia Full financial year
M Wilson Managing Director, Americas United States Ceased to be employed on 16 September 2019
J Sevigny President, Video Gaming Technologies United States Ceased to be employed on 5 March 2019
J Goldstein Chief Digital Officer United States Ceased to be employed on 4 October 2018
1. Mr Chatfield’s appointment as Chair took effect immediately following the retirement of Dr ID Blackburne on 21 February 2019 at the end of the 2019 Annual 
General Meeting.
2. One Non-Executive Director acts as the Lead US Director. The Lead US Director assists the Board with review and oversight of Aristocrat’s North American 
business, which accounts for approximately 77% of the Group’s land-based business.
3. Mr Bowen was promoted to the role of CEO Global Land Based and Chief Transformation Officer during the Reporting Period. Prior to this, Mr Bowen was 
Managing Director, ANZ & International.
Non-Executive Director appointment after Reporting Period but before date of Remuneration Report
Mr P Etienne was nominated as a Non-Executive Director after the Reporting Period on 1 October 2019, subject to receipt of 
all relevant regulatory pre-approvals. These regulatory approvals were subsequently received and Mr Etienne’s appointment 
as a Non-Executive Director of the Company was confirmed on 7 November 2019, subject to shareholder approval at the 
Annual General Meeting in February 2020. 
33 ARISTOCRAT LEISURE LIMITED Annual Report 2019
REMUNERATION REPORT
REMUNERATION PHILOSOPHY AND STRATEGY
The following principles guide Aristocrat’s remuneration strategy and ‘pay for performance’ philosophy. The Board is 
confident the current remuneration framework supports and drives its business strategy and Group out-performance.
Aristocrat is one of a small group of ASX listed companies that derives the majority of its revenues from overseas markets and 
is genuinely global in its structure and operations. Although Aristocrat is listed on the Australian Securities Exchange, it has 
over 6,400 employees based globally across 80 countries and is licensed in more than 320 jurisdictions.
Aristocrat’s senior leadership is predominantly US based, and the business must increasingly attract and retain leaders in 
US and other markets with technology and global management skillsets. US market practice (in particular) places a greater 
emphasis on at-risk opportunity, and significant equity grants are commonly used for talent attraction and retention (than in 
Australia). 
The significant expansion of Aristocrat’s digital business, which now contributes 40.7% of Group revenue, reinforces the need 
for Aristocrat’s remuneration structures to evolve and take into account global pay philosophies, particularly those in the 
technology industry.
The Board therefore continues to review the structure of Aristocrat’s incentive schemes to ensure they are globally competitive 
and effective in retaining, attracting and motivating the leadership and talent it needs to drive business strategy and financial 
performance in the interests of shareholders, while continuing to reflect our ‘pay for performance’ philosophy.
The world map above displays the global location of Aristocrat’s employees, with the size of each circle illustrating the number of employees based in that country.
Alignment to shareholder interests and 
sustainable shareholder returns
Performance based – link rewards to  
business results and strategy
Encourage behaviours consistent with values 
and deliver good customer outcomes
Robust governance with focus on risk 
management
Reflect the markets we recruit from  
and need to be competitive in
AUS
NZ
GBR IND
ARG
USA
MEX
CAN
MAC
UKR
ISR
RUS
SGP
PHL
EU
34 ARISTOCRAT LEISURE LIMITED Annual Report 2019
REMUNERATION REPORT
SENIOR EXECUTIVE REMUNERATION 
FRAMEWORK
Executive remuneration mix
Total remuneration includes both a fixed component and an 
at-risk or performance-related component (governing both 
short-term and long-term incentives). The Board views the at-
risk component as an essential driver of a high performance 
culture and one that contributes to achievement of superior 
shareholder returns.
The following illustration shows the remuneration mix for 
the Executive KMP in FY2019. It has been modelled on 
the average of the Executive KMP’s target opportunity (but 
excluding any contractual severance entitlements).
The Board aims to achieve a balance between fixed and 
performance-related components of remuneration. The 
actual remuneration mix for the Executive KMP will vary 
depending on the level of performance achieved at a Group, 
business unit and individual level.
Market insights
Aristocrat engages external consultants1 to provide insights 
into comparative executive remuneration practices and pay 
mix practices between Australian and global labour markets 
in which Aristocrat competes for talent2. These insights 
highlight the following:
 — The remuneration mix in the North American market is 
generally much more leveraged to variable pay through 
use of the LTI than the Australian market. As an example, 
the total variable component in the CEO remuneration 
mix for the US is observed to be 75%, compared to 64% in 
Australia. Specifically with reference to LTI, the Australian 
CEO’s total remuneration comprises 34% LTI, whereas in 
the US, it can be as high as 59%.
 — Australian executive remuneration policies are far more 
conservative than those in the US – not just in terms of the 
level of LTI grants awarded to executives but also in terms 
of the pay-for-performance mechanics of incentive plans.
 — In both markets, the most prevalent approach is for 
companies to employ a 3-year LTI performance period.
 — It is common practice for US technology companies to 
offer a LTI plan to their executives which is split 50/50 
between performance-based awards and time-based 
awards only.
 — The US technology sector shows a higher prevalence of 
time-based stock awards in comparison to performance-
based stock awards. To illustrate, over 80% of companies 
in the US technology sector employ time vested restricted 
stock as part of incentive arrangements.
 — Analysis of typical vesting scales in the US versus Australia 
reveals that Australian LTI plans tend to have higher 
performance thresholds in their plans compared to 
the US, which means that executives are ‘in-the-money’ 
at lower levels of performance in the US compared to 
Australia.
CEO
Other Executive KMP
Deferred
equity
64%
At-risk
76%
Cash
36%Fixed
24%
Deferred
equity
47%
At-risk
59.6%
Cash
53%
Fixed
40.4%
Fixed
24.0%
Cash STI
12.0%
Deferred STI
12.0%
LTI
52.0%
Fixed
40.4%
Cash STI
12.6%
Deferred STI
12.6%
LTI
34.4%
1. Source: Aon.
2. Analysis conducted by Aon on comparator group of organisations based 
on comparable size and operations to Aristocrat, including ASX listed 
companies with significant US operations. 
35 ARISTOCRAT LEISURE LIMITED Annual Report 2019
REMUNERATION REPORT
Table 2 Senior Executive Remuneration structure and framework
Value determined by
 — Individual skills, performance, 
experience and contribution to 
Aristocrat with reference to similar 
roles in global competitors and 
companies within a range of 
Aristocrat’s market capitalisation
 — Global geographic location
 — Onerous probity requirements by 
regulators also considered
Achievement of both annual 
financial and non-financial 
performance at a:
 — Group level
 — Business unit level
 — Individual level
 — Relative TSR – 30% weighting
 — Relevant EPSA – 30% weighting
 — Individual performance based 
vesting condition – 40% 
weighting
Delivered as
Cash and superannuation  
(or equivalents)
50% cash 
25% deferred for 12 months  
as an award of PSRs
25% deferred for 24 months  
as an award of PSRs
Award of PSRs vesting after  
36 months
Why it is paid?
Provides competitive ongoing 
remuneration in recognition of  
day-to-day accountabilities 
 — Supports annual delivery of 
key strategic targets and to 
recognise and reward individual 
performance
 — Deferral into equity supports 
sustained performance and more 
closely aligns the interests of 
executives and shareholders
 — Focuses on multi-year metrics 
that support sustained 
shareholder value creation
 — Delivered in equity to align 
the interests of executives and 
shareholders
SENIOR EXECUTIVE REMUNERATION STRUCTURE
Fixed 
Between 24% - 50% of total target 
remuneration
Fixed remuneration 
Base salary, superannuation and 
other benefits
Short-term incentive (STI) 
Reward for strong individual and 
Group performance during the 
Performance Period
Long-term incentive (LTI) 
Reward for longer-term  
Group performance
At-risk 
Between 50% - 76% of total target remuneration
36 ARISTOCRAT LEISURE LIMITED Annual Report 2019
REMUNERATION REPORT
HOW VARIABLE REMUNERATION IS 
STRUCTURED
Short Term Incentive (STI) – how does it work?
Description
Senior Executives have the opportunity to earn an annual 
incentive award which is delivered in cash and deferred 
equity awards (in the form of PSRs). The STI Plan recognises 
and rewards short-term performance.
The STI Plan is considered to be at-risk remuneration and is 
not a guaranteed part of Senior Executive remuneration.
STI opportunity
A target opportunity is set for each Senior Executive, which 
is earned if Group and individual performance is on target. 
For certain Senior Executives, in a region or business unit, 
a target opportunity is set which is earned if regional 
performance and individual performance is on target. The 
Board determines the total STI pool to be distributed. 
Senior Executives (other than the CEO) have a target STI of 
between 43% and 70% of fixed remuneration. The CEO has 
a target STI of 100% of fixed remuneration. The maximum 
STI payout is capped at 200% of a participant’s target STI 
opportunity.
Financial performance conditions
No payment is made unless the STI gateway of the Business 
Score Threshold (being 85% of the Business Score Goals)  
is met.
For employees whose role is multi-regional or global in 
nature – including all Executive KMP – their ‘Business Score 
Goal’ is the result that is based on the actual financial 
performance of Aristocrat in a financial year, calculated by 
reference to NPATA and FCF Conversion as follows:
 — NPATA – 70% weighting
 — FCF Conversion – 30% weighting
The Business Score is converted into the Business Score 
Multiplier according to the following chart:
Setting stretch financial performance conditions
The Board utilises the annual budget as the primary input 
to determine appropriate stretch financial targets. When 
approving the budget, the Board reviews the core principles 
and assumptions underpinning the budget. In addition, the 
Board also considers expected market growth at the time 
of setting targets with the expectation that management 
will outperform expected market growth (if any) and, in 
the context of broadly flat markets and segments, that 
management will deliver growth through the gain of  
market share.
Subsequent to the budget having been finalised, the Board 
determines the STI financial targets. In order to ensure 
sufficient stretch is incorporated, consideration is given to 
the quantifiable risks and opportunities that can influence 
the Group’s financial performance. The Board considers 
significant items in the context of target setting.
Non-financial performance conditions
A ratings scale is used to assess individual performance. No 
payment is made for a Senior Executive who has not met or 
exceeded a minimum individual performance rating.
Senior Executives are assessed on delivery against 
individual KPOs. Individual targets as set out in KPOs 
include consideration as to role-related accountabilities 
and responsibilities in the context of business strategy and 
objectives, as set out in Table 6. 
0%  
50%
 
100%
 
150%
 
250%
200%
85% 100% 105% 110% 120%
Bu
sin
es
s S
co
re
 M
ul
tip
lie
r
Business Score
37 ARISTOCRAT LEISURE LIMITED Annual Report 2019
REMUNERATION REPORT
Individuals have a clear line of sight to KPOs and are able 
to directly affect outcomes through their own actions. 
Individuals are also assessed on behaviour metrics which 
contribute to that individual’s overall performance rating. 
How STI outcome is then determined
The Individual Performance Multiplier is then used to 
determine the quantum of STI payment the Senior Executive 
will receive.
Reasons for these performance conditions 
The Board considers these performance measures to be 
appropriate as they are aligned with Aristocrat’s objectives 
of delivering sustainable growth and sustainable superior 
returns to shareholders. In the case of FCF Conversion, this 
measure was chosen as it ensures cash flow discipline, which 
in turn allows Aristocrat to fund growth initiatives. In addition, 
Senior Executives have a clear line of sight to the targets and 
are able to affect results through their actions.
Performance measures and conditions are reviewed annually 
and are subject to change as considered appropriate. The 
Board has discretion to review and amend the Business 
Score Goals during the performance period (up or down) 
where significant unforeseen events have occurred which are 
outside the control of management.
Who assesses performance?
The Board assesses performance of the CEO and Managing 
Director against the performance conditions with the benefit 
of advice from the HR and Remuneration Committee.
The CEO and Managing Director assesses the other 
Executive KMP’s performance against the performance 
conditions and makes recommendations to the HR and 
Remuneration Committee which advises the Board in relation 
to the CEO and Managing Director’s recommendations and 
the review process.
In addition to developing and approving the KPOs of the 
CEO and Managing Director, the Board has oversight and 
visibility over KPOs of direct reports of the CEO at both the 
time of setting and assessing performance against KPOs.
Special mitigating circumstances may be accepted,

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