Tabcorp Holdings Limited · ASX:TAH

Tabcorp — FY2010 Earnings Presentation

31 slides from Tabcorp's earnings presentation, Aug 5, 2010

1. Slide 1: Tabcorp Full Year Results Presentation ASX cover letter

   Tabcorp Holdings Limited ACN 063 780 709 5 Bowen Crescent Melbourne Australia 3004 GPO Box 1943 Melbourne Australia 3001 Telephone 61 3 9868 2100 Facsimile 61 3 9868 2300 For personal use only Website www.tabcorp.com.au 5 August 2010 To: Australian Securities Exchange Companies Announcements Platfor

2. Slide 2: Tabcorp Holdings Limited Full Year Results Presentation

   For personal use only 2009/10 Tabcorp Holdings Limited Full Year Results Presentation 5 August 2010 1

3. Slide 3: FY10 financial results

   FY10 financial results For personal use only ¾ Normalised NPAT $477m, down 3.8% ƒ Revenues up 1.5% ƒ Expenses up 2.9% ƒ EPS 78.4 cents, down 11.6% following capital raising ¾ Actual NPAT $470m, down 10% ƒ VIP win rate below theoretical, previous year above theoretical ¾ Queensland gaming taxes and h

4. Slide 4: Group results

   Group results For personal use only Actual Change Normalised 1 Change FY10 on pcp FY10 on pcp Revenues 4,219.7 0.2% 4,232.0 1.5% Variable contribution 2,101.0 (2.2%) 2,112.0 0.0% Operating expenses (1,104.4) 2.9% (1,104.4) 2.9% EBITDA 998.0 (7.0%) 1,009.0 (2.6%) D&A (203.6) 14.9% (203.6) 14.9% EBIT

5. Slide 5: Key drivers of FY10 result

   Key drivers of FY10 result For personal use only Key messages: • Revenues mixed by Business and State • Expenses well controlled 22 (15) • Impact from regulatory change and one offs 28 (11) (18) (7) 1 (22) 496 22 477 (19) Casinos VC Wagering VC Gaming VC Impact: ($11m) Impact: $17m Impact: ($6m) FY0

6. Slide 6: Drivers of 2010 revenue performance

   Drivers of 2010 revenue performance For personal use only Market 2010 impacted by stimulus wind back and consumer spending conditions ƒ Victorian gaming market down 4.5%, Queensland down 4.1%, NSW up 1.9% ƒ Recent improvement in activity levels ƒ Parimutuel wagering under pressure from changing mark

7. Slide 7: Market share stable or growing

   Market share stable or growing Casino electronic gaming market share1 For personal use only Star City Gold Coast Brisbane 35.3% 36.2% 33.6% 25.8% 26.1% 7.1% 25.5% 6.3% 6.1% FY08 FY09 FY10 FY08 FY09 FY10 FY08 FY09 FY10 Wagering market share2 Gaming market share3 Parimutuel Fixed Odds Vic Gaming 61.4%

8. Slide 8: Divisional results

   Divisional results For personal use only Casinos Change Wagering Change Gaming Change Normalised 1 on pcp on pcp on pcp Revenues 1,371.9 1.0% 1,671.1 4.9% 1,194.4 (2.5%) Variable contribution 1,077.4 (1.4%) 647.2 3.9% 389.6 (2.1%) Operating expenses (716.7) 3.5% (316.4) 2.7% (74.4) (2.1%) EBITDA 359

9. Slide 9: Casinos: KPIs

   Casinos: KPIs For personal use only NSW Qld Total ¾ Star City Change Change Change Normalised FY10 FY10 FY10 on pcp on pcp on pcp ƒ Good momentum from gaming concessions, technology and EGMs 203.4 13.1% 275.2 (3.5%) 478.6 2.9% marketing Main Gaming Floor 293.4 3.3% 132.3 1.5% 425.7 2.7% ƒ Disruption

10. Slide 10: Project Star: Harbourside and hotel structure

    Project Star: Harbourside and hotel structure For personal use only 9

11. Slide 11: Project Star: Baccarat/Noodle Bar and MGF stages

    Project Star: Baccarat/Noodle Bar and MGF stages For personal use only 10

12. Slide 12: Casinos: further Star City expansion

    Casinos: further Star City expansion For personal use only Future Star Investment $860m + $100m, IRR 14.5% Components VIP Rebate Business Metrics ƒ Hotel suites upgrade ƒ Completion: FY12 – FY13 ƒ Private gaming Creation of world class VIP destination ƒ Capex: ~ $160m ƒ Entertainment Private Gaming

13. Slide 13: Wagering: KPIs

    Wagering: KPIs For personal use only Change Change Change 1H10 on pcp 2H10 on pcp FY10 on pcp ¾ Strong growth in areas of investment Revenues product ƒ Fixed odds Racing Vic 353 (0.1%) 300 (0.4%) 653 (0.2%) Racing NSW 431 3.8% 378 (0.7%) 809 1.7% ƒ On-line Fixed Odds 78 23.2% 106 71.3% 184 47.1% ƒ L

14. Slide 14: Wagering: investments improve competitive position

    Wagering: investments improve competitive position For personal use only Areas of focus Turnover growth – FY10 Racing: ƒ Fixed odds expansion 2.4% 7.5% ƒ Additional Sky channels ƒ New products ƒ International export/import 2.6% ƒ Retail refurbs and self service ƒ New media – internet/mobiles ƒ NSW l

15. Slide 15: Gaming: KPIs

    Gaming: KPIs Change on For personal use only FY10 FY09 pcp Vic Gaming Vic Gaming Revenue 1,033 1,064 (2.9%) ¾ EGM market down EBIT 226 229 (1.6%) ƒ Government stimulus and interest rates Venues (period end) 263 263 0.0% ƒ Reduced venue investment EGMs (average) 13,349 13,360 (0.1%) ƒ Change in max b

16. Slide 16: Gaming: Tabcorp Gaming Solutions now a reality

    Gaming: Tabcorp Gaming Solutions now a reality For personal use only ¾ Tabcorp Gaming Solutions product offering: ƒ Supply of EGMs for duration of contract ƒ Average of 23% rotation of EGM product annually ƒ Full EGM service and maintenance support ƒ Loyalty systems and promotions facilitation ƒ Acc

17. Slide 17: Group: Capital expenditure

    Group: Capital expenditure For personal use only Capex trend (excluding Project Star) Capex trend - Project Star 243 123 196 189 183 97 36 14 FY07 FY08 FY09 FY10 1H09 2H09 1H10 2H10 Corporate/Other Wagering Gaming Casinos ¾ Major projects in FY10: ¾ Total capex increased to $960m, including Events C

18. Slide 18: Group: Key capital features

    Group: Key capital features For personal use only 700 600 500 Undrawn Bank Debt Drawn Bank Debt 400 US Private Placement Tabcorp Retail Bonds $M 300 Medium Term Notes 200 100 - FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 ¾ FY10: $350m bank facilities refinanced, $460m cancelled; undrawn facili

19. Slide 19: Summary and outlook

    Summary and outlook For personal use only ¾ Normalised NPAT $477m, down 3.8% ƒ Revenues up 1.5% ƒ Expenses up 2.9% ¾ Market share stable or up in all divisions and major markets ¾ Divisional performance mixed ƒ Casinos – Star City performing well; Qld impacted by gaming taxes and soft market ƒ Wager

20. Slide 20: Appendices

    Appendices For personal use only 1. Group results 2. Earnings per share and dividends per share 3. Casinos: Financial data 4. Casinos: Revenues by state and product 5. Wagering: Financial data 6. Wagering: Revenues by state and product 7. Gaming: Financial data 8. Gaming: Market share 9. Balance she

21. Slide 21: 1. Group results

    1. Group results For personal use only Actual Actual Change Normalised 1 Normalised 1 Change FY10 FY09 on pcp FY10 FY09 on pcp Revenues 4,219.7 4,211.3 0.2% 4,232.0 4,170.7 1.5% Government taxes & levies (1,164.6) (1,136.6) 2.5% (1,165.9) (1,132.5) 2.9% Operating commissions (500.6) (495.4) 1.0% (50

22. Slide 22: 2. Earnings per share and dividends per share

    2. Earnings per share and dividends per share For personal use only Normalised earnings per share Dividends per share 102.1 98.2 93.4 94.0 94.0 88.7 89.0 78.4 65.0 55.0 Growth on pcp: 2.4% (3.8%) (4.9%) (5.1%) (11.6%) FY06 FY07 FY08 FY09 FY10 FY06 FY07 FY08 FY09 FY10 Payout ratio: 87% 96% 101% 73% 7

23. Slide 23: 3. Casinos: Financial data

    3. Casinos: Financial data For personal use only NSW Change QLD Change Total Change FY10 on pcp FY10 on pcp FY10 on pcp Revenues 768.2 5.4% 603.7 (4.1%) 1,371.9 1.0% Variable contribution 600.0 5.5% 477.4 (9.0%) 1,077.4 (1.4%) Operating expenses (378.8) 3.6% (337.9) 3.4% (716.7) 3.5% Other income (1

24. Slide 24: 4. Casinos: Revenue by state and product

    4. Casinos: Revenue by state and product For personal use only NSW Qld Total Change Change Change FY10 FY10 FY10 on pcp on pcp on pcp EGMs 203.4 13.1% 275.2 (3.5%) 478.6 2.9% Main Gaming Floor 293.4 3.3% 132.3 1.5% 425.7 2.7% Private Gaming Room 122.0 0.7% 63.5 (14.1%) 185.5 (4.9%) Non-gaming 88.0 (

25. Slide 25: 5. Wagering: Financial data

    5. Wagering: Financial data For personal use only FY10 FY09 Change on pcp Racing - Vic 496.4 497.7 (0.3%) Racing - NSW 808.8 795.5 1.7% Fixed Odds 163.7 112.8 45.1% Trackside 26.8 24.4 9.8% Media 117.6 112.3 4.7% Other 57.8 50.7 14.0% Revenues 1,671.1 1,593.4 4.9% Taxes, levies, commissions and fees

26. Slide 26: 6. Wagering: Revenue by state and product

    6. Wagering: Revenue by state and product For personal use only 1 NSW Change Vic Change Total Change $m FY10 on pcp FY10 on pcp FY10 on pcp Operating revenues Thoroughbred 554.0 1.3% 335.8 (0.7%) 889.8 0.5% Harness 106.7 1.9% 75.7 1.7% 182.4 1.9% Greyhound 148.1 2.9% 84.9 (0.1%) 233.0 1.8% Total rac

27. Slide 27: 7. Gaming: Financial data

    7. Gaming: Financial data FY10 FY09 Change on pcp For personal use only Victorian network - Hotel 681.3 698.3 (2.4%) - Clubs 351.7 366.0 (3.9%) Total Victorian gaming 1,033.0 1,064.3 (2.9%) Keno 128.4 129.5 (0.8%) Other revenue 33.0 31.7 4.1% Revenue 1,194.4 1,225.5 (2.5%) Taxes, levies, commissions

28. Slide 28: 8. Gaming: Market share

    8. Gaming: Market share For personal use only Tabcorp vs Tatts Group 54.0% Vic Gaming Revenue Market Share July 2005 to June 2010 53.0% 52.0% Tabcorp Market Share % 51.0% 50.0% 49.0% Tatt Tatts Group 48.0% 47.0% 46.0% Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Sep-05 Dec-05 Sep-06 Dec-06 Sep-07 Dec-0

29. Slide 29: 9. Balance Sheet

    9. Balance Sheet For personal use only As at As at Change $m 30 Jun 10 30 Jun 09 on pcp Total current assets 381.1 403.2 (5.5%) Licences 652.6 688.1 (5.2%) Other intangible assets 3,627.5 3,641.8 (0.4%) Property, plant and equipment 1,762.9 1,566.3 12.6% Other non current assets 33.6 40.0 (16.0%) To

30. Slide 30: 10. Cashflow

    10. Cashflow For personal use only Actual Change $m FY10 FY09 on pcp Net operating flows 1,028.6 1,045.8 (1.6%) Net interest payments (148.4) (164.3) (9.7%) Income tax paid (179.0) (209.0) (14.4%) Payments for PP&E (408.1) (256.5) 59.1% Net operating cash flows 293.1 416.0 (29.5%) Proceeds from sale

31. Slide 31: For personal use only

    HOTEL & CASINO. wt TREASURY Jupiters TOWNSVILLE a. tab sp®rtsbet TAB LUXBETcom

Tabcorp Holdings — FY2010 Earnings Presentation on 6ix