Tabcorp Holdings Limited · ASX:TAH
Tabcorp — Merger or Acquisition (May 2006)
9 slides from Tabcorp's merger presentation, May 16, 2006
Slide 1: Tabcorp - TVN Agreement
TABCORP - TVN AGREEMENT Tuesday, 16 May 2006 &« Tabcorp the bigger better game
Slide 2: Tabcorp — TVN agreement
Tabcorp — TVN agreement * » Tabcorp/Sky and TVN have agreed binding arrangements to end split picture immediately » Racing fans and Tabcorp customers will benefit from two complementary services * Sky Wagering Channel - a consolidated racing service, available primarily in TABs, pubs and clubs, at r
Slide 3: Two improved channels to support racing and wagering
Two improved channels to support racing and wagering Ba SI DV CHANNEL . All racing other than Sydney Limited to Sydney and Victorian thoroughbreds Previously and Victorian thoroughbreds only Not all TAB races shown on Not on all Pay TV platforms Pay TV Limited free-to-air coverage focused on a few m
Slide 4: Wagering revenues 2001 - 2006
Wagering revenues 2001 - 2006 Annual Growth Rate - Racing Revenue 6% 5.3% 47% 44% 4% > £ a 8 s 3 0% : : 1 6 x 2% {2.6)% 2004 2002 2003 2004 2005 1HO6 Year NSW i VIC &« Tabcorp
Slide 5: Focus on wagering turnover and growth
Focus on wagering turnover and growth x x x * * * x Parimutuel Racing Turnover - 52 Week Rolling Trend Parimutuel Racing Turnover ~ 52 Week Rolling ~ Combined Trend - NSW 8,150 4,750 = 8100 4 - & & ~ 8,050 4 Split Picture a 5 3000 Commences 8 5 e F 7950 4 bat = 7 2 2 E 7,900 E € YTD Growth YTD Growt
Slide 6: Key elements of the agreement
Key elements of the agreement x x ¥ * Key elements of the agreement include: » The immediate end to split picture and the production of two improved channels » Sky Wagering Channel =» TVN Thoroughbred Showcase Channel > Aninterim solution under which » Sydney and Victorian thoroughbred races return
Slide 7: Key elements of the agreement (continued)
* Key elements of the agreement (continued * ¥ * * * » Under the long term solution, TVN will receive Rights fees of $22m per year (indexed to CPI), up from $17m per year before the split picture dispute. Rights fees will increase to $23.75m per year if TVN elects to cease producing the TVN Channel
Slide 8: Key elements of the agreement (continued)
Key elements of the agreement (continued x x ¥ * * * > For an initial period of three months, Sky and TVN will explore a joint venture approach to internet and new media opportunities. The agreement is not conditional on the joint venture proceeding > Tabcorp and TVN will stay all litigation immedia
Slide 9: Estimated financial impacts
Estimated financial impacts x x ¥ * * > Onarecurring basis, Tabcorp expects the agreement to be earnings positive relative to the 2006 financial year that is impacted by split picture. This takes into account the following impacts: « Improved earnings in its wagering operations - the current year im