TABCORP HOLDINGS LIMITED — AGM Information 2015

Oct 28, 2015

2015 Annual General Meeting

Chairman's address

Tabcorp is a leading Australian gambling entertainment company

An ASX Top 100 company

• Diversified across Wagering and Media, Gaming Services and Keno
• Holding long-term licences in Australia's most attractive markets
• A portfolio of iconic Australian brands, with market-leading positions
• Operating a unique multi-product, multi-channel model
• Recognised as a global industry leader in responsible gambling

2015 financial year performance

A successful year for Tabcorp

• Statutory Net Profit After Tax (NPAT) \$334.5 million, up 157.5%
• NPAT from continuing operations before significant items \$171.3 million, up 14.7%
• Full year dividends of 20 cents per share, fully franked
• Special dividend of 30 cents per share, fully franked
• Increase in target dividend payout ratio for FY16 to 90% of NPAT before amortisation of the Victorian Wagering & Betting Licence

Returns to racing and the community

Tabcorp's operations create significant value for our stakeholders

• Returns to the racing industry \$773 million, up 5.2%
• Gambling taxes \$460 million, up 4.6%

Strategic Achievements in FY15

Tabcorp made progress in advancing its strategic agenda

• ACTTAB successfully integrated into Tabcorp's operations
• NSW and Victorian thoroughbred media rights arrangements finalised
• TGS' NSW presence expanded
• Keno transformed, with new brand and commencement of jackpot pooling

Wagering industry regulation

A well-regulated wagering industry is in everyone's interests

• The Federal Government has announced a review into illegal offshore wagering
• Wagering laws and regulations need to be modernised and upheld
• The current regulatory framework is inadequate
• Industry needs a level playing field in the digital era

Wagering industry regulation

Tabcorp's areas of focus for a modernised Australian wagering industry

• Wagering operators should be licensed in Australia to take bets from Australian residents
• The NT-licensed corporate bookmakers should pay a fair amount of wagering tax
• The approach to regulation and enforcement needs to be addressed
• The offering of live betting on sport through digital channels
• The proliferation of gambling advertising
• The offering of credit by corporate bookmakers

Legal proceedings

• AUSTRAC Statement of Claim
• Defence filed in accordance with the court timetable
• Committed to achieving the highest standards of regulatory compliance
• Well advanced on a program of works that seeks to deliver compliance systems and processes that are best-in-class
• Case expected to be heard in September 2016
• Claim against the State of Victoria
• High Court appeal to be heard on 10-12 November 2015

Conclusion

Tabcorp entered FY16 a stronger company

• Tabcorp is well placed to deliver profitable growth and attractive shareholder returns into the future
• We are focused on investing in the customer experience
• Giving customers the best products, services and channels
• Further integration of our retail, digital and media assets

Managing Director and CEO's address

2015 in review

FY15 was a successful year for Tabcorp

• Statutory Net Profit After Tax (NPAT) \$334.5 million, up 157.5%
• NPAT from continuing operations before significant items \$171.3 million, up 14.7%
• Revenue \$2,155.5 million up 5.7%
• Increased returns to shareholders

Wagering and Media

A strong Wagering & Media performance underpinned FY15

• FY15 EBITDA \$375.8 million, up 7.2%
• FY15 product and channel highlights
• Total TAB racing revenue up 5.1%
• TAB Sports revenue up 16.2%
• Media revenue up 6.2%
• Digital turnover up 17.8%
• Positive indicators of customer engagement
• Total TAB active customer base up 12%
• More than 300,000 TAB Rewards members

Gaming Services

Tabcorp Gaming Solutions is evolving into a growing and important business

• FY15 EBITDA \$67.6 million, up 0.9%
• Expanded in Victoria and NSW
• 84% of Victorian base contracted through to 2022 (up from 75% in FY14)

Keno

The transformation of the brand and customer experience is giving Keno new energy

• FY15 EBITDA \$66.4 million, down 8.0%
• Investments made in the Keno brand, product and digital capability
• Recent re-launch of the brand is gaining traction

Capital position

Tabcorp continues to have a well diversified debt-structure

• Refinanced \$400m facility, extending maturity profile of debt facilities
• Gross Debt to EBITDA 2.1x at 30 June 2015
• Strength of balance sheet supports increase in FY16 target dividend payout ratio

Tabcorp in the community

We seek to connect with the community

• Tabcare program continued in 2015
• Partnering with Conservation Volunteers, FareShare, OzHarvest and The Pyjama Foundation
• A new three-year partnership with National Jockeys Trust

We are focused on making Tabcorp a great place to work

We are building a culture that values diversity and inclusion

• Achieved 2015 target of at least 33% females in senior management roles
• Re-set target to 40% by 2018
• Ensured a strong health and safety culture
• Improved employee engagement levels

1Q16 Revenue

Revenue	1Q16 (\$m)	1Q15 (\$m)	Change on pcp
Wagering & Media	461.3	458.0	0.7%
Gaming Services	26.4	25.1	5.2%
Keno	55.8	54.3	2.8%
Group	543.5	537.4	1.1%

Note: Refer to separate ASX release issued 29 October 2015.

FY16 Priorities

Tabcorp has a clear set of priorities in FY16

• Wagering & Media: Further integration of retail, digital and media assets; product innovation
• Gaming Services: Improving existing venue performance and further expansion
• Keno: Progress brand and product transformation, jackpot pooling in Queensland and implementation of digital strategy
• Well-positioned to continue to drive performance, maintain expense discipline and deliver 14% ROIC by FY17