Annual General Meeting

Transcription

1 ANNUAL REPORT 2018

2 02 Annual General Meeting NOTICE OF MEETING Notice is hereby given that the Annual General Meeting of Racing NSW Country Ltd will be held in the Boardroom of Racing NSW, Level 7, 51 Druitt Street, Sydney on 27th November 2018 commencing at 10.00am. BUSINESS 1. Apologies. 2. Adopt the Minutes of the Annual General Meeting of Racing NSW Country held on 21 November Receive and consider the Chairman s Report on behalf of the Board. 4. Receive and consider the Financial Statements for the year ending 30 June Elect Auditors to hold office until the next Annual General Meeting. Brian Charman Executive Officer Racing NSW Country Limited Front Cover Victorem winning the Final of the Country Championships RACING NSW COUNTRY / 2018 ANNUAL REPORT

3 03 CONTENTS 02 Notice of Annual General Meeting 03 Staff and Corporate Details 04 Performance Highlights 06 Board Members 08 Chairman s Report 10 Executive s Report 12 Premiership and Feature Race Winners 18 CRDF Report 21 Financial Statements 30 Directors Report 32 Declaration by Auditors 35 Appendix 1 Club Performance Comparisons 37 Appendix 2 Country Racecourse Development Fund Summary of Payments Staff & Corporate Brian Charman... Executive Officer Sharon Beltrame... Finance & Administration Officer ADMINISTRATIVE SERVICES ARE PROVIDED BY RACING NSW AND IN PARTICULAR BY: Scott Kennedy... RNSW General Manager Industry & Analytical Shane Meaney... RNSW Racing Manager Andrew Small... RNSW Projects Manager Dave Hodgson... RNSW Racecourse Manager Bianca Parker... RNSW Executive Assistant AUDITORS BDO Chartered Accountants BANKERS Commonwealth Bank of Australia

4 04 Performance Highlights RACING NSW COUNTRY CONDUCTED 530 RACE MEETINGS AT 114 RACETRACKS Race Clubs Racecourses Total Race Meetings TAB Race Meetings Community Race Meetings...83 Picnic Race Meetings...28 Races...3,688 Starters...36,041 AVERAGE FIELD SIZE FOR TAB MEETINGS HIGHEST IN THE STATE AT 10.4 AVERAGE TAB PRIZEMONEY PER RACE $21,790 TOTAL RETURNS TO OWNERS $80,649,453 TAB TURNOVER TOTE $229,489,492 TAB TURNOVER FIXED ODDS $201,919,355 RACING NSW COUNTRY / 2018 ANNUAL REPORT

5 05 AVERAGE FIELD SIZES - NSW AVERAGE FIELD SIZES - COUNTRY METRO PROV COUNTRY TAB COMMUNITY TOTAL NSW MEETINGS TOTAL COUNTRY MEETINGS METRO PROV COUNTRY TAB COMMUNITY AVERAGE PRIZEMONEY PER TAB RACE TOTAL RETURNS TO OWNERS $25,000 $20,000 $15,000 $10,000 $5,000 $0 $14,185 $16,402 $16,602 $21,847 $21,790 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $ $59,031, $57,689, $57,006,430 $74,737,373 $80,649,

6 06 Board Members KEY RESPONSIBILITIES OF RACING NSW COUNTRY PLANNING AND DEVELOPMENT To enhance the operations of country thoroughbred racing in NSW MAXIMISE PARTICIPATION To maximise returns to ensure participation in country racing is enjoyable and affordable. ADHERENCE TO KEY RACING AGREEMENTS Ensure that country race clubs and RNSWC adhere to the Racing Distribution Agreement, Inter-Code Deed and Intra-Code Agreement. SCHEME OF DISTRIBUTION Ensure that the long term financial interests of race clubs and returns to country racing participants are maximised. RACE CLUB CO-ORDINATION AND SUPPORT Co-ordinate financial, racing, marketing and racecourse development to support race clubs so as to ensure a high quality of racing product. ADMINISTRATION Ensure that country racing is administered in an efficient, cost effective and business- like manner. RACECOURSE DEVELOPMENT Ensure the protection, maintenance and development of country racecourse infrastructure. Articles of Association As per the Articles of Association, Section 3.2.1, the Board of Racing NSW Country consists of one member from each country racing association area elected by the Council Members within that country racing association area. GUARANTEE OF SERVICE Guarantee effective, timely and appropriate service to participants, customers and service providers. INDUSTRY LIAISON Ensure effective liaison between RNSWC and all industry groups. INDUSTRY INTEGRITY Maintain the high level of integrity of NSW country racing. RACING NSW COUNTRY / 2018 ANNUAL REPORT

7 07 Mr Bob Pavitt Chairman Consultant Race Club Nominee NRRA Attended 6 meetings Mr Michael Inglis Deputy Chairman Barrister Race Club Nominee SDRA Attended 6 meetings Mr Greg Delaforce Businessman Race Club Nominee MNCRA Attended 6 meetings Mr Michael Martin Businessman Race Club Nominee SERA Attended 5 meetings Mr Michael Kennedy Grazier Race Club Nominee WRA Attended 5 meetings Mr Rod Watt Solicitor Race Club Nominee H&NWRA Attended 6 meetings Mr Max Walker Businessman Race Club Nominee CDRA Attended 3 meetings

8 08 Chairman s Report The 2017/18 year has provided outstanding results for Country Racing and will again be remembered as a significant period for the thoroughbred racing industry in this state. NSW Country Racing provided 530 race meetings across the state generating significant wagering turnovers and increases in key industry performance indicators including returns to the owners and industry participants. The Country Championships continue to be a feature of the country racing program. The 2018 Country Championship heats held in the major regional centres provided excellent racing, above average wagering and were well patronised. Congratulations must go to the winning owners of the Jenny Graham trained Victorem ridden by Ben Looker for taking out the Country Championship Final of 2018 at Royal Randwick. The concept in its fourth year continues to grow in stature and gain momentum. The 2018 racing season produced prizemoney increases to five Country Feature race programs. The initiative provided the Port Macquarie Cup, Goulburn Cup, Wellington Boot, Tamworth Cup and Wagga Town Plate with feature race prizemoney of $150,000. These meetings, all well established in Country racing, were further developed and recognised within their local areas with terrific results. The combination of these meetings, and many Country Cup programs, with ongoing Showcase prizemoney has provided country participants and Clubs with tremendous opportunity. Looking forward, the Racing NSW Strategic Plan has been drafted in preparation for release. In July 2018 Racing NSW Chairman, Mr. Russell Balding AO, announced Racing NSW has consulted widely on the Strategic Plan and given careful consideration to the matters raised from industry participants. The integral objectives of the plan included defraying costs of owners, enable trainers to improve cashflow and business viability and provide stimulus for improving field sizes. A step in meeting these objectives was an annual increase to prizemoney of more than $24 million across all industry sectors to take effect from September The NSW Country Racing sector will benefit in an increase to Country TAB prizemoney of 10% to minimum prizemoney of $22,000 whilst TAB Highway Racing for Country Participants will increase by 25% to minimum prizemoney of $75,000. This accumulates to significant NSW Country Racing sector prizemoney increases since 2012 including 120% increase in Country TAB meetings prizemoney and increases in excess of 66% in Sky 2 meetings and 71% in Non-TAB meetings prizemoney. Further to this, The Kosciuszko initiative is an exciting new concept introduced by Racing NSW for Country Participants. The world s richest country race to be held on Everest Day at Royal Randwick programmed at $1.3 million will further stimulate racing in Country NSW. The Board of Racing NSW Country would like to take this opportunity to congratulate the Racing NSW Board, the Racing NSW Chairman, Mr. Russell Balding AO, and the Chief Executive, Peter V landys AM, for the positive contributions that have greatly benefited the Country sector and its participants. The implementation of initiatives by Racing NSW across RACING NSW COUNTRY / 2018 ANNUAL REPORT

9 09 all sectors of racing, and in particular Racing NSW Country, provides stimulus for the industry on a broad scale. The team of administrators within Racing NSW, including Scott Kennedy, Bianca Parker, Shane Meaney, Dave Hodgson and Andrew Small are acknowledged and thanked for providing country participants with ongoing support and opportunity. I would like to acknowledge the many hard working country race club committee members, volunteers and officials who have conducted many successful race meetings and positively contributed to the administration of race clubs and the racing industry throughout NSW Country in the past year. These efforts play a significant role in supporting the strong financial positions of most clubs. The financial results delivered by clubs and their viability is commended. The Country Clubs are working closely with Racing NSW, Mr. Dave Hodgson, in maintaining a high level of standards across all training and racing facilities in a concentrated effort to support participation. The Country Racecourse Development Fund continues to prepare and implement policies conducive to strategic capital development and safety improvements enhancing the viability of thoroughbred racing generally and assisting maintaining NSW as the premier racing State. The contribution of independent committee members, Gordon Lindley and Alan Davidson towards the management of the Fund is appreciated. During the year the Country Racing Development Fund disbursed approximately $1.4 million in payments for works in progress with approvals towards new capital developments of approximately $2.2 million. Projects that are continued to be rolled out across the state include the upgrading of female jockeys amenities, upgrading of surveillance towers where required, further acquisitions under the ongoing mobile starting barriers renewal program, plus other strategic equipment and the continuation of the PVC rail roll-out program. I would like to thank Brian Charman, Racing NSW Country Executive, and Sharon Beltrame for their efforts on behalf of country racing and the ongoing assistance and support of the many Country Race Clubs in NSW. Finally, I would like to thank my colleagues on the Board of Racing NSW Country. These gentlemen are a dedicated group with a passion for country racing and their efforts in delivering valuable and decisive administration is much appreciated. Mr. Bob Pavitt Chairman

10 10 Executive Officer s Report NSW Country held a total of 530 race meetings across the State during 2018, a significant increase on previous year s racing. The number of Country TAB meetings totalled 419, an increase in excess of 10%, or 41 meetings, as compared to 378 TAB meetings during the 2017 racing season. A combination of additional programmed Country TAB race meetings in conjunction with a reduced number of lost meetings due to wet weather have been the contributing factors to the increase in the meetings conducted across Country NSW. The state during the year has been severely impacted by conditions of prolonged drought. We should mention a large number of Racing NSW Country Race clubs have provided support and assistance not only to the Thoroughbred Racing Participants during this period but to charitable organisations and farming families directly impacted by the drought across the Country. Racing NSW Country congratulates the efforts of the clubs during this period, in not only their contributions, but in preparing racing surfaces in trying conditions. The increase in race meetings has provided positive outcomes for the industry including payments in returns to owners during the season of $80 million with average TAB prizemoney closing in on $22,000 per race. The returns to owners is an increase of just on $6 million, as compared to the $74 million during the 2017 year. Further, coupled with adjustments to prizemoney, an increase of approximately $23 million, as compared to the $57 million in returns to owners in In addition, it is pleasing to see the continued financial improvement of Racing NSW Country Clubs with the number of meetings held across the state providing opportunities for clubs to raise additional revenue and strengthen their viability positions. The focus for clubs remains on maximising these race day opportunities and on-course race day revenue lines whilst managing operating costs. The challenge as clubs prepare for the 2019 and the 2020 racing seasons will be to focus on building race day attendance and race day participation. The Racing NSW Managers Conference held this year provided Club Executives with inspirational activations in place across many Country venues demonstrating systems and processes adopted by clubs as tools in optimising these opportunities and incorporating growth in race day participation. It is obvious that Racing NSW Country Clubs have developed some significant long-lasting community relationships in regional NSW. It has been rewarding working with the many passionate Country Executives in the preparation of core financial data including the establishment of challenging, however realistic, budgets aligned with the club s future operational and strategic plans. The more recent prizemoney increase combined with the inaugural Country Kosciuszko initiative, the Country Championships and Country Showcase meetings provides significant incentive for Country participants and a financial platform for continued industry success. Notwithstanding this, the Racing NSW Country Board continues to recognise the challenges faced by the industry in maintaining racing and training facilities at the highest of standards for all participants. The Racing NSW Country Scheme of Distribution provides Country Clubs with an annual Track Maintenance Scheme payment of $3,750,000 as contributions towards club s maintenance programs. In addition, the Country Racecourse Development Fund (CRDF) continues to play an integral part in fostering the increased growth of regional racing in NSW through the provision of improved infrastructure and facilities. Clubs are encouraged RACING NSW COUNTRY / 2018 ANNUAL REPORT

11 11 to source, where relevant, funding via the CRDF particularly on projects of a small/ medium scope. The number of race meetings throughout the year, combined with the continued increase in TAB fixed odds wagering has resulted in total TAB wagering for 2018 on NSW Country meetings in excess of $431 million. The NSW Country turnover levels have continued to increase year on year in recent times, with 2018 producing an increase in wagering of 14%, or $55 million, as compared to the $376 million in 2017 and the $365 million in These are tremendous results for Country NSW racing. Overall the Intra Code revenue to metropolitan, provincial and country racing increased to $155.9 million during 2018 as compared to the $152 million in The Racing NSW Country market share remained strong at 36.6% and provided Country Racing with wagering revenue of $44.1million as compared to $42.8 million in The financial statements for Racing NSW Country produced a deficit for the year ended 30 June 2018 of $1,636,609. This result is attributable to the increase in race meetings conducted and the payments made to clubs in conjunction with an increase to the costs in conducting the race meetings. Other key industry indicators are as follows: TAB meetings conducted Full TAB ( ) Saturday TAB ( ) Sky ( ) Community Meetings conducted 83 Picnic Meetings conducted 28 Average TAB prizemoney is $21,790 per race (2017 $21,847 and 2016 $16,602) Total returns to owners have increased to $80.6 million from $74.7 million in 2017 Average field sizes across the country sector have remained steady at 10.0 (10.4 TAB and 7.1 at Community race meetings) The number of Country Races has increased to 3688 from 3431 in 2017 whilst the Country Starters has increased to 36,041 from 34,548 in 2017 As in previous years Racing NSW Country has received strong support from the Racing NSW Board, Chief Executive, Peter V landys AM and Staff of Racing NSW, for which we are appreciative. The support of Scott Kennedy, Shane Meaney, Andrew Small, Dave Hodgson and Bianca Parker has contributed significantly to the betterment of country racing in NSW. I would like to thank the Racing NSW Country Board for the opportunity afforded to me in the role and the support provided in my transition to the position with country racing in Sydney. I would like to acknowledge all country-based club administrators and officials across NSW along with Racing NSW Country Sharon Beltrame for the contributions and support of NSW Racing Industry. Brian Charman Executive Officer

12 12 The NSW Country Racing Award Recipients of 2018 SIMON NIVISON SPECIAL ACHIEVEMENT AWARD...Noel Leckie COUNTRY HORSE OF THE YEAR...The Monstar COUNTRY TAB RACE CLUB OF THE YEAR...Muswellbrook Race Club COMMUNITY RACE CLUB OF THE YEAR...Narrandera Race Club OUTSTANDING ACHIEVEMENT AWARD...Shoalhaven City Turf Club OUTSTANDING ACHIEVEMENT AWARD...Coonamble Jockey Club COUNTRY TRAINER OF THE YEAR...Brett Cavanough COUNTRY JOCKEY OF THE YEAR...Ben Looker COUNTRY APPRENTICE JOCKEY OF THE YEAR...Cejay Graham COUNTRY APPROVED RIDER OF THE YEAR...Ricky Blewitt RACING NSW COUNTRY / 2018 ANNUAL REPORT

13 13 Premierships COUNTRY PREMIERSHIP TOP 10 REGIONAL PREMIERSHIP WINNERS TRAINER WINS ASSOCIATION TRAINER WINS 1 KRIS LEES 87 2 BRETT CAVANOUGH 54 3 PAUL PERRY 45 4 BJORN BAKER 42 5 MATTHEW DUNN 40 6 GAYNA WILLIAMS 33 7 MATTHEW DALE 32 8 CAMERON CROCKETT 31 9= BARBARA JOSEPH & PAUL JONES 30 9= NEIL GODBOLT 30 CDRA BJORN BAKER 28 H&NWDRA KRIS LEES 42 MNCRA KRIS LEES 42 NRRA MATTHEW DUNN 40 SDRA TREVOR SUTHERLAND 22 SERA DANNY WILLIAMS 23 WRA RODNEY ROBB 14 JOCKEY WINS ASSOCIATION JOCKEY WINS 1 GREG RYAN BEN LOOKER 91 3 AARON BULLOCK 83 4 MATHEW CAHILL 67 5 GRANT BUCKLEY 62 6 MATTHEW MCGUREN 56 7= BELINDA HODDER 54 7= JOSH OLIVER 54 7= ROBERT THOMPSON MATTHEW PAGET 53.5 CDRA GREG RYAN 58 H&NWDRA GREG RYAN 51 MNCRA BEN LOOKER 33 NRRA MATTHEW MCGUREN 37 SDRA NICK HEYWOOD 29 SERA JEFF PENZA 27 WRA GREG RYAN 26 APPRENTICE WINS ASSOCIATION APPRENTICE WINS 1 CEJAY GRAHAM 39 2 LOUISE DAY 36 3 CHRIS WILLIAMS 35 4 PATRICK SCORSE 34 5= CLAYTON GALLAGHER 30 5= MIKAYLA WEIR 30 7 CHELSEA MACFARLANE 29 8 JOSH RICHARDS 27 9 REBEKA PREST LEAH KILNER 25 CDRA CHRIS WILLIAMS 16 H&NWDRA LOUISE DAY & MIKAYLA WEIR 13 MNCRA LOUISE DAY 23 NRRA LEAH KILNER 21 SDRA J RICHARDS & R PREST 26 SERA PATRICK SCORSE 24 WRA CHRIS WILLIAMS & CLAYTON GALLAGHER 7

14 14 FEATURE TAB RACES VENUE PRIZEMONEY CLASS Albury $180,000 Albury Cup Albury $50,000 Albury City Hcp Armidale $40,000 Armidale Cup Ballina $65,000 Ballina Cup Bathurst $50,000 Bathurst Cup Bowraville $25,000 Bowraville Cup Broken Hill $35,000 Outback Cup Casino $27,000 Casino Cup Cessnock $35,000 Jungle Juice Cup Coffs Harbour $80,000 Coffs Gold Cup Coonabarabran $45,000 Coonabarabran Cup Coonamble $45,000 Coonamble Cup Cootamundra $25,000 Cootamundra Cup Corowa $35,000 Corowa Cup Cowra $30,000 Cowra Cup Dubbo $60,000 Dubbo Cup Forbes $30,000 Forbes Cup Gilgandra $35,000 Gilgandra Cup Goulburn $150,000 Goulburn Cup Grafton $160,000 Grafton Cup Grafton $160,000 Ramornie Hcp Gundagai $70,000 Snake Gully Cup Gunnedah $40,000 Gunnedah Cup Inverell $35,000 Inverell Cup Kempsey $30,000 Kempsey Cup Lismore $60,000 Lismore Cup Moree $40,000 Moree Cup Moruya $40,000 Moruya Cup Mudgee $50,000 Mudgee Cup Murwillumbah $38,000 Murwillumbah Cup Muswell brook $100,000 Muswellbrook Cup Narromine $45,000 Narromine Cup Orange $65,000 Orange Cup Parkes $30,000 Parkes Cup Port Macquarie $150,000 Port Macquarie Cup Queanbeyan $35,000 Queanbeyan Cup Quirindi $50,000 Quirindi Cup Sapphire Coast $50,000 Bega Cup Scone $200,000 Scone Cup Scone $200,000 Dark Jewel Classic Scone $400,000 Inglis Guineas Shoalhaven $45,000 Nowra Cup Tamworth $150,000 Tamworth Cup Taree $80,000 Taree Cup Tuncurry Forster $30,000 Tuncurry Cup Wauchope $32,000 Wauchope Cup Wagga $160,000 Wagga Gold Cup Wagga $150,000 Wagga Town Plate Walcha $35,000 Walcha Cup Warren $30,000 Cotton Cup Wellington $150,000 Wellington Boot Mudgee $150,000 CDRA Heat Scone $150,000 H&NWDRA Heat Port Macquaire $150,000 MNCRA Heat Grafton $150,000 NRRA Heat Wagga $150,000 SDRA Heat Goulburn $150,000 SERA Heat Dubbo $150,000 WRA Heat Muswellbrook $50,000 Wildcard Randwick $500,000 FINAL RACING NSW COUNTRY / 2018 ANNUAL REPORT

15 DIST. WINNER JOCKEY TRAINER M WILLI WILLI Nikita Beriman Craig Widdison 1175M CASH CRISIS Nikita Beriman Craig Widdison 1900M KASHARN Matthew Paget Dwayne Schmidt 1600M CASHING UP Tegan Harrison Barry Lockwood 1800M HIROKIN Mitchell Bell Jarrod Austin 1370M SPLINTER Peter Graham Hunter Kilner 1600M KAZOOM (NZ) Murray Henderson Ron Campbell 1400M LANDMARKS Robert Agnew Scott Cumming 1350M HAMMOON BOY Chris O Brien Sue Grills 1600M DARCI S AFFAIR Robert Thompson Paul Murray 1600M RED KNOT Serg Lisnyy Rodney Northam 1600M NOT RUN TO WET WEATHER 1600M GUN TRACE Michael Travers Doug Vickers 1600M NAGGING Michael Heagney Mark Gee 1700M ILLYRIAN Michael Heagney John Rolfe 1600M BRAZEN Clayton Gallagher Brett Cavanough 1600M GENTLEMAN MAX Allan Chau Trevor Sutherland 1600M ARTISTIC BEAUTY Greg Ryan Cameron Crockett 1600M DARK EYES Blake Shinn Gai Waterhouse & Adrian Bott 2350M SUPPLY AND DEMAND Josh Parr Gai Waterhouse & Adrian Bott 1200M CALANDA Jim Byrne Peter & Paul Snowden 1400M MERCURIAL LAD Kayla Nisbet Barbara Joseph & Paul Jones 1600M UNBIASED Ben Looker Cody Morgan 1400M LOUD ENOUGH Miki Nakao George Woodward 1450M LIPPY AND PEARLS Serg Lisnyy Ross Dawson 2100M SKYTREK Michael Cahill Barry Lockwood 1400M BELFLYER Ben Looker John Shelton 1650M LET IT ROLL Richard Bensley Nick Olive 1600M TAHSIN (NZ) Jeff Penza John P Thompson 1530M ANNE BONNY Belinda Hodder Owen Glue 1500M CAERLESS CHOICE Christian Reith Paul Messara 1600M A MAGIC ZARIZ Chelsea Ings Cecil Hodgson 2100M LETTER TO JULIETTE Mathew Cahill Garry White 1600M CLASS CLOWN Nick Heywood Chris Heywood 2000M LOVING HOME (GB) Tye Angland Chris Waller 2000M CHARLIE ROYALE Michael Travers Matthew J Stephens 1600M EVANGELIST (GB) Miki Nakao Lea Selby 1600M MAKEADANE Brodie Loy John P Thompson 1600M SEDANZER Tim Clark Gai Waterhouse & Adrian Bott 1400M SIREN S FURY Tegan Harrison Jason Coyle 1400M MOSS TRIP Brenton Avdulla Peter & Paul Snowden 1600M CURATA PRINCESS Jeff Penza Robert & Luke Price 1400M PLUCKY GIRL James Orman Toby Edmonds 2000M PIRATE BEN Travis Wolfgram Damien Lane 2100M WHO IS GAME Grant Buckley Michael Byers 1500M BRAZEN Peter Graham Brett Cavanough 2000M LIFE LESS ORDINARY (IRE) Tye Angland Chris Waller 1200M COOLRING Kathy O Hara Joe Cleary 1440M TRY N RUN A MUCK Jake Pracey-Holmes Troy O Neile 1600M RED KNOT Serg Lisnyy Rodney Northam 1100M MISS INVINCIBLE Greg Ryan Bjorn Baker 1400M COSMOLOGIST Eleanor Webster-Hawes Dean Mirfin 1400M SUNCRAZE Corey Brown Melanie O Gorman 1200M VICTOREM Ben Looker Jenny Graham 1400M SNITZ Robbie Fradd Matthew Dunn 1400M O SO HAZY Brooke Sweeney Scott Spackman 1400M KOPI LUWAK Mitchell Bell Danny Williams 1400M GOOD HOST Jake Pracey-Holmes Justin W Stanley 1280M DON T GIVE A DAMN Kerrin McEvoy Danny Williams 1400M VICTOREM Ben Looker Jenny Graham

16 16 FEATURE COMMUNITY RACES VENUE CLASS DIST. Adaminaby Adaminaby Cup 1400M Balranald Balranald Cup 1400M Barraba Barraba Cup 1400M Berrigan Berrigan Cup 1600M Bingara Bingara Cup 1300M Binnaway Binnaway Cup 1300M Bombala Bombala Cup 1200M Braidwood Braidwood Cup 1350M Brewarrina Brewarrina Cup 1200M Bundarra Bundarra Cup 1400M Carinda Carinda Cup 1400M Carrathool Carrathool Cup 1400M Cobar Cobar Cup 1700M Collarenebri Collarenebri Cup 1400M Cooma Cooma Cup 1600M Deepwater Deepwater Cup 1400M Deniliquin Deniliquin Cup 1400M Enngonia Enngonia Cup 1400M Glen Innes Glen Innes Cup 1400M Grenfell Grenfell Cup 2000M Griffith Griffith Cup 1350M Gulargambone Gulargambone Cup 1200M Gulgong Gulgong Cup 1200M Hay Hay Cup 1800M Hillston Hillston Cup 1700M Holbrook Holbrook Cup 1400M Jerilderie Jerilderie Cup 1400M Lightning Ridge Lightning Ridge Cup 1200M Louth Louth Cup 2000M Mendooran Mendooran Cup 1500M Merriwa Merriwa Cup 1350M Moulamein Moulamein Cup 1600M Mungindi Mungindi Cup 1400M Narrabri Narrabri Cup 1200M Narrandera Narrandera Cup 1400M Nyngan Nyngan Cup 1400M Pooncarie Pooncarie Cup 1550M Silver City Silver City Cup 1600M Tabulam Tabulam Cup 1400M Tocumwal Tocumwal Cup 1300M Tumbarumba Tumbarumba Cup 1400M Tumut Tumut Cup 1400M Walgett Walgett Cup 1400M Wallabadah Wallabadah Cup 1500M Warialda Warialda Cup 1400M Wentworth Wentworth Cup 1840M Young Young Cup 1600M RACING NSW COUNTRY / 2018 ANNUAL REPORT

17 17 WINNER JOCKEY TRAINER NOT RUN DUE TO WET WEATHER REINE DE TOUT (NZ) Stacey Metcalfe Nathan Hobson PRESENT SENSE Daniel Northey Craig Martin DYRHAM PARK Simon Miller Dave Heywood MEDAL AFRIQUE Geoff Snowden Luke Morgan STILL UNDAUNTED Billy Cray Brett Cavanough BLACK DRAGON Alena Skerritt Aaron Clarke ULTIMA CHANCE Chelsea MacFarlane Keith Dryden & Scott Collins STILL UNDAUNTED Billy Cray Brett Cavanough KYRGIOS Luke Cumberland Melissa Dennett NAOKO Simone Vella Connie Greig COD ROCK Jason Baldock Kerry Weir VICTORIAN CROWN Tiffany Jeffries Russell Green OUR BOY DANNY Shane S Arnold Nathan Sinclair GIRLS OWN Patrick Scorse Barbara Joseph & Paul Jones CAVITATION Geoff Snowden Bill Perrett SHY FRANK Mikaela Lawrence George Osborne MISS MELLENCAMP Clayton Gallagher Rodney Robb DEVLANN Craig Franklin Dean S Smith MEGAWATT (NZ) Simon Miller Luke Pepper GREAT PANACHE Brooke Sweeney Phil Sweeney BASIC STRATEGY Paul Payne Dar Lunn MORE THAN ART Billy Cray Brett Thompson MALLEABLE Josh Richards Scott Spackman COOEE MARCH Michael Heagney Russell Hogan TABLEAUX Tiffany Jeffries Russell Green NOT RUN DUE TO WET WEATHER MORE OF THE ZAIM Bridget Rooney Sheree Mcewan STREAK ON Jake Pracey-Holmes Sue Grills VISION RETRACT Anthony Cavallo Joseph Hodgson COLLINS STREET Josh Oliver Mark Hatch ALPHA AURIGA Chris Nicoll Nathan Hobson HULA GIRL Shane S Arnold Paddy Cunningham ATTALEA Jake Pracey-Holmes Brett Thompson RUARY MAC Rebeka Prest Christopher Davis OSKASTAR Ronald Simpson Garry Lunn STREETWISE SAVOIRE Stephen M Brown Patrick Payne ALPHA AURIGA Chris Nicoll Nathan Hobson TRACONI Cyril Small Stephen Bennett PIECEOFEIGHT Michael Heagney Stephen Aldridge DIDNT EVEN KISS ME Wendy Peel Scott Spackman DIDNT EVEN KISS ME Wendy Peel Scott Spackman VICTORIAN CROWN Tiffany Jeffries Russell Green STILL UNDAUNTED Billy Cray Brett Cavanough STAR OF LEGS Jodi Worley Sue Grills SEULAMONT Dean McWhinney Joe Kelly MOSSY GIRL Jason Devrimol Joe Cleary

18 18 CRDF Report PROFILE OF THE CRDF BOARD THE BOARD MEMBERSHIP AT PRESENT COMPRISES: The Chairman of Racing NSW Country ( RNSWC ), that being Mr Bob Pavitt; An eminent person appointed to the Racing NSW ( RNSW ) Integrity Assurance Committee, that being Alan Davidson AM MBE; and, One other independent person appointed by RNSWC, that being Mr Gordon Lindley. OBJECTIVES THE CRDF HAS A NUMBER OF STRATEGIC PURPOSES AND GOALS INCLUDING: The preparation and implementation of effective policies conducive to strategic capital development and safety improvements. To foster the increased growth of regional racing in NSW through the provision of improved infrastructure and facilities. The progressive undertaking of strategic improvements such that amenities are upgraded to the point of achieving industry best practice. Provision of effective leadership and professional management to ensure efficient project delivery. To enhance the viability of thoroughbred racing generally and assist in maintaining NSW as the premier racing State. SUMMARY OF FINANCIAL YEAR HIGHLIGHTS OF COUNTRY RACECOURSE DEVELOPMENT FUND ( CRDF ) ACTIVITY FOR THE PERIOD INCLUDED: Disbursement of approximately $1.4 million in payments for works in progress (excl. GST). Approximately $2.2 million approved towards new capital development initiatives (excl. GST). Continuation of statewide upgrading of female jockeys amenities. Upgrading of surveillance towers where required. Further acquisitions under the ongoing mobile starting barriers renewal program, plus other strategic equipment. Continuation of the PVC rail roll-out program. Disbursements during were again within the CRDF s annual target ceiling of $2m + GST, resulting in aggregate expenditure for the past six years remaining within budget when total cumulative spending is examined. The CRDF continues to carefully scrutinise all proposed capital works and carefully manages its commitments in achieving this outcome. RACING NSW COUNTRY / 2018 ANNUAL REPORT

19 19 The CRDF s objectives were again greatly assisted during through RNSW s procurement of various projects financed from the Race Fields Legislation ( RFL ) capital works fund, including: City of Dubbo Turf Club drainage works to the course proper. Goulburn & District Racing Club new automated irrigation system to the course proper. Sapphire Coast Turf Club new stabling. As in previous years, CRDF operations complemented those of the RFL fund where necessary. The CRDF has invested significant funds in irrigation projects in , in recognition of the need to ensure that tracks are presented in best possible condition notwithstanding the drought conditions experienced during the reporting period and the resultant pressure on water resources. Additionally, the CRDF has continued with progressive roll-out of PVC inside running rail in order to build-upon those clubs where PVC rail was previously installed by RNSW during This program will ensure that additional country clubs are upgraded to the point of achieving industry best practice in providing PVC rail with breakaway posts, an important safety initiative. MAJOR PROJECTS COMPLETED Albury Racing Club installation of a new automated irrigation system to the course proper. Clarence River Jockey Club re-surfacing of the covered betting ring and adjoining paved areas. Moruya Jockey Club installation of a new automated irrigation system to the course proper. Female Jockeys Amenities further new facilities were constructed during , bringing to forty (40) the number of country race clubs where new and/or upgraded female jockeys amenities have been completed to date. It is worthy of note that numerous upgrades during were delivered to Community & Picnic clubs and in this context, the CRDF is committed to ensuring that all clubs, irrespective of size or status, provide appropriate amenities for riders. Capital improvements can be initiated in response to club applications for financial assistance, or representations from user groups/stakeholders such as the Australian Jockeys Association/RNSW Stewards. Three (3) further acquisitions of new mobile starting barriers were completed under the ongoing equipment upgrading program City of Dubbo Turf Club, Sapphire Coast Turf Club and Wine Country Race Club. These venues were carefully selected following a review of existing inventories including the need for renewal of equipment at recipient clubs that take delivery of the displaced barriers. As a consequence of these acquisitions, ongoing analysis of the current status of starting barriers reveals the following statistics: average age of barriers at all 17 Category A clubs is now approximately 6.5 years; of these 17 clubs, 9 are in possession of barriers <6 years old.

20 20 MAJOR PROJECTS IN PROGRESS Tuncurry-Forster Jockey Club installation of a new irrigation system for the course proper. Swab box/vet rooms phase 4 of the statewide upgrading program nearing completion. Surveillance towers improvements ongoing. Starting barriers renewal program ongoing. MAJOR PROJECTS DURING As noted above, a program of irrigation systems upgrades will continue, initially with recently-approved work at Tuncurry-Forster JC. Additionally, RNSW is currently examining significant irrigation & water resources projects at two regional racecourses, with supplementary CRDF funding to be considered as required. RFL funding will also be made available towards the construction of additional raceday/tie-up stalls and washdown bays at Dubbo Racecourse. Dubbo is currently one of the largest training centres in country NSW measured by number of trained starters produced and in recognition of same, the CRDF has approved financial assistance towards upgrading its Stabilizer Gold all-weather training surface. These enhancements will complement significant improvements completed in recent years by RNSW under the RFL program (including construction of a new slow work sand training track) and ensure that the quality of training facilities is the equal of any regional centre in NSW. In recent months, inspectors from SafeWork NSW have undertaken inspections of surveillance towers at a number of country clubs and issued improvement notices where deemed necessary. The CRDF has provided financial assistance to affected clubs to ensure that the necessary works are completed. Additionally, formal correspondence has been distributed to all NSW Race Clubs detailing the procedures and measures to be undertaken to ensure compliance with relevant regulatory/statutory standards. Again, the CRDF stands ready to assist clubs with whatever capital improvements are necessary in fulfilment of this objective. The progressive shift from colorbond rail to PVC rail will continue and the installation of such product is currently underway at three (3) clubs, which upon completion will bring the number of country TAB clubs with PVC inside running rail to thirty four (34). It is envisaged that the CRDF will continue this roll-out with further installations during In addition to these more substantial capital works, the CRDF will continue the procurement of smaller-scale but significant safety-related projects including female jockeys amenities improvements and upgrading of mobile starting barriers. Additionally, the CRDF remains committed to the provision of other support services during including the Regional Racecourse Managers Seminars for Country TAB clubs. Topsoil chemistry will assume heightened significance throughout given the drought conditions currently affecting many areas of regional NSW and the need to ensure that tracks are presented in the best possible condition in the face of water resources constraints and generally deteriorating irrigation water quality. RACING NSW COUNTRY / 2018 ANNUAL REPORT

21 FINANCIALS

22 RACING NSW COUNTRY LTD - ACN STATEMENT OF PROFIT OR LOSS & OTHER COMPRENSIVE INCOME FOR THE YEAR ENDED 30TH JUNE, 2018 Note $ $ REVENUE Revenue 1 96,787,377 93,508,832 Total Revenue 96,787,377 93,508,832 EXPENDITURE Payments to race clubs under the Scheme of Distribution 81,628,126 76,191,944 Administration 894, ,631 Race meeting and racing expenses 14,537,616 14,019,316 Marketing programs 41,293 36,095 Solar Instalation Subsidy 23, ,854 Racecourse development grants 1,298,982 1,869,459 Total Expenditure 98,423,986 93,158,299 (Loss)/Profit before Income Tax (1,636,609) 350,533 Income tax expense (Loss)/Profit attributable to members of Racing NSW Country Ltd (1,636,609) 350,533 Other comprehensive income - - Total comprehensive (loss)/income attributable to the members of Racing NSW Country Ltd (1,636,609) 350,533 The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. RACING NSW COUNTRY / 2018 ANNUAL REPORT

23 RACING NSW COUNTRY LTD - ACN STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, Note $ $ Current Assets Cash and cash equivalents 879,012 4,310,057 Trade and other receivables 4 16,916,614 16,216,145 Total Current Assets 17,795,626 20,526,202 Non-Current Assets Plant & equipment 5 1,436 7,542 Total Non-Current Assets 1,436 7,542 Total Assets 17,797,062 20,533,744 Current Liabilities Trade and other payables 6 5,584,706 6,688,455 Provisions 7 81,711 79,263 Total Current Liabilities 5,666,417 6,767,718 Non-Current Liabilities Provisions 7 35,504 34,276 Total Non-Current Liabilities 35,504 34,276 Total Liabilities 5,701,921 6,801,994 Net Assets 12,095,141 13,731,750 Equity Racecourse development reserve 8 3,523,163 2,822,145 Future development reserve 8 814, ,328 Retained earnings 9 7,757,358 10,030,277 Total Equity 12,095,141 13,731,750 The statement of financial position should be read in conjunction with the accompanying notes. RACING NSW COUNTRY LTD - ACN STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE, 2018 Retained Racecourse Future Earnings Development Development Reserve Reserve Total Equity $ $ $ $ Balance at 30 June ,487,337 2,691,604 1,202,276 13,381,217 Total comprehensive income for the year 350, ,533 Transfers from/(to) reserves 192, ,541 (322,948) - Balance at 30 June ,030,277 2,822, ,328 13,731,750 Total comprehensive income for the year (1,636,609) - - (1,636,609) Transfers (to)/from reserves (636,310) 701,018 (64,708) - Balance at 30 June ,757,358 3,523, ,620 12,095,141 The statement of changes in equity should be read in conjunction with the accompanying notes.

24 RACING NSW COUNTRY LTD - ACN STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH JUNE, $ $ CASH FLOW FROM OPERATING ACTIVITIES Receipts from Racingcorp Pty Ltd 47,567,183 46,057,898 Receipts from customers 8,131,485 7,783,537 Receipts from Racing NSW 50,041,893 47,491,836 Interest received 22,804 31,827 Payments to race clubs under the Scheme of Distribution (89,790,938) (83,811,139 Payments to race clubs for racecourse development (1,428,880) 2,056,405) Payments to suppliers and employees (17,974,592) (13,467,099) Net Cash (used in)/provided by operating activities (3,431,045) 2,030,455 CASH FLOW FROM INVESTING ACTIVITIES Payments for purchase of plant & equipment - - Net Cash provided by/(used in) investing activities - - Net (decrease)/increase in cash and cash equivalents (3,431,045) 2,030,455 Cash and cash equivalents at the beginning of the financial year 4,310,057 2,279,602 Cash and cash equivalents at the end of the financial year 879,012 4,310,057 The statement of cash flows should be read in conjunction with the accompanying notes. RACING NSW COUNTRY LTD - ACN NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2018 ABOUT THIS REPORT This financial report is for Racing NSW Country Ltd as an individual company. The company is limited by guarantee and is incorporated and domiciled in Australia. Its registered office and principle place of business is Level 7, 51 Druitt St Sydney NSW. A description of the nature of the company s operations and principal activities is included on page 1 of the directors report. The financial report was authorised for issue by the directors on the 27 September The company has the power to amend and reissue this financial report. Basis of preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Corporations Act The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. The financial statements, except for the cash flow information, have been prepared on an accrual basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar. The financial report is presented in Australian dollars which is the company s functional and presentational currency. Key judgements and estimates Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances. Judgements and estimates which are material to the financial report are found in the following notes: Note 5 - Plant & Equipment - Depreciation Note 7 - Provisions Note 8 - Reserves RACING NSW COUNTRY / 2018 ANNUAL REPORT

25 RACING NSW COUNTRY LTD - ACN NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, $ $ NOTE 1: REVENUE NSW Racing distributions pursuant to Racing Distribution Agreement 44,117,086 42,812,653 Television Broadcast Royalty 3,501,800 3,501,800 Administration Charge Funding 1,151,591 1,129,011 Interest 22,804 31,828 Distribution from Racing NSW 45,492,630 43,174,396 PGI Product Fees 2,314,770 2,419,281 Racing Revenues 186, ,863 Total Revenue 96,787,377 93,508,832 Recognition and Measurement Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and amounts collected on behalf of third parties. Revenue is recognised for the major business activities as follows: (i) Distributions pursuant to the Racing Distribution Agreement Revenue is recognised upon delivery of service to customers. (ii) Television broadcast royalty Revenue from television broadcast is recognised upon delivery of service to customers. (iii) Administration charge funding Administration charge funding is recognised as revenue on receipt of the funding. (iv) Interest Interest revenue is recognised on a time proportion basis using the effective interest method. (v) Sponsorship Sponsorship revenue is recognised over the period to which the sponsorship relates. (vi) Other Revenues Totalizator commissions from non-tab meetings, distribution from Racing NSW surpluses and other miscellaneous revenue items are recognised when received $ $ NOTE 2: EXPENSES Loss before income tax includes the following specific expenses: Employee benefits expense 995, ,869 NOTE 3: INCOME TAX The company is a not-for-profit organisation established for the promotion of thoroughbred racing in country NSW and is exempt from income tax pursuant to the provisions of Section of the Income Tax Assessment Act (1997) $ $ NOTE 4: TRADE AND OTHER RECEIVABLES Racingcorp Pty Ltd 16,045,862 15,084,251 Trade and other receivables 428, ,611 Racing NSW Loan Account 442, ,283 Total trade and other receivables 16,916,614 16,216,145 Recognition and Measurement Trade and other receivables Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts. Trade receivables are due for settlement no more than 30 days from the date of recognition.

26 25 RACING NSW COUNTRY LTD - ACN NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2018 Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short term receivables are not discounted if the effect of discounting is immaterial. The amount of the provision is recognised in the statement of profit or loss and other comprehensive income. Amounts receivable from Racingcorp Pty Ltd are receivable as follows: Quarterly product fee Three working days from the end of each quarter Wagering incentive fee Twenty working days from the end of each six-month period ended December and June $ $ NOTE 5: PLANT & EQUIPMENT a) Details of Carrying Amounts Plant & Equipment Plant & equipment at cost 127, ,816 less: Accumulated depreciation (126,380) (120,274) Total plant & equipment 1,436 7,542 b) Movements in carrying amounts Plant & Equipment Carrying amount at beginning of the year 7,542 13,648 Additions - - Depreciation expense (6,106) (6,106) Carrying amount at the end of the year 1,436 7,542 Recognition and Measurement Each class of plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment. At each reporting date, the directors review a number of factors affecting plant and equipment, including their carrying values, to determine which of these assets, grouped into cash-generating units, may be impaired. If impairment indicators exist, the recoverable amount of the assets, being the higher of the assets; fair value less costs to sell and value in use, are compared to the carrying values. Any excess of the assets carrying value over their recoverable amount is expensed in the statement of profit or loss and other comprehensive income as an impairment expense. Key estimate and judgement: Depreciation The depreciable amount of all plant and equipment is calculated on a straight line basis over their estimated useful lives as follows: Plant & Equipment 5 years The asset s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date. An asset s carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount. Gains and losses on disposal are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income $ $ NOTE 6: TRADE AND OTHER PAYABLES Trade payables 42, ,592 Sundry payables 286, ,873 Payable to Racing NSW 5,256,459 5,949,990 Total trade and other payables 5,584,706 6,688,455 Recognition and Measurement These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. RACING NSW COUNTRY / 2018 ANNUAL REPORT

27 RACING NSW COUNTRY LTD - ACN NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, $ $ NOTE 7: PROVISIONS Current Liabilities Employee Benefits - Long service leave 66,022 66,022 Employee Benefits - Annual leave 15,689 13,241 81,711 79,263 Non-Current Liabilities Employee Benefits - Long service leave 35,504 34,276 Total Provisions 117, ,539 Recognition and Measurement Provision is made for the company s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Other employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. Contributions are made by the company to accumulation employee superannuation funds and are charged as expenses when incurred. Key estimate and judgement: Long Service Leave The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect to all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account. Notes $ $ NOTE 8: RESERVES The following reserves have been set aside in accordance with resolution of the Racing NSW Country Board and are commitments to expend funds in the manner outlined below. Reserves Country Racecourse Development Reserve 3,523,163 2,822,144 Future Development Reserve 814, ,328 Total Reserves 4,337,783 3,701,472 (a) Movement in Reserves Racecourse Development Reserve Balance at the beginning of the year 2,822,145 2,691,604 Transfers from/(to) retained earnings 9 701, ,541 Balance of reserve at the end of the year 3,523,163 2,822,145 Future Development Reserve Balance at the beginning of the year 879,328 1,202,276 Transfers (to)/from retained earnings 9 (64,708) (322,948) Balance of reserve at the end of the year 814, ,328 Total Reserves 4,337,783 3,701,473 (b) Nature and purpose of reserves Racecourse Development Reserve The Country Racecourse Development Reserve represents reserves retained by the company on behalf of the country segment of the industry and is set aside to fund the development of facilities of country racecourses. It is the strict intention of the company to fully expend the balance of the Country Racecourse Development Reserve for the purpose for which it was established. Amounts set aside in the reserve will not be used by the company for any

28 27 RACING NSW COUNTRY LTD - ACN NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2018 purpose other than development of country racecourses. Additionally, the company intends adding to the reserve in coming financial years to provide further reserves for the development of country racecourses. Expenses are recognised when work is completed or stages of work are completed. Determination as to which projects to fund, is made on resolution of the Committee of the Country Racecourse Development Fund. Based on these resolutions, the company has planned for expenditure on major projects with estimated commitments, exclusive of GST as follows: Within One Year Later than One Year but not later than Five Years $ $ All Associations - New mobile starting barriers 300,000 1,000,000 All Associations - New swabbing facilities 150, ,000 All Associations - Female jockeys amenities upgrades 300, ,000 All Associations - Irrigation upgrading works 1,000,000 2,000,000 All Associations - PVC inside running rail 250,000 1,000,000 Muswellbrook Race Club - Facilities expansion - 500,000 All Associations - Other 1,000,000 2,000,000 3,000,000 7,600,000 During the period the movement in the Racecourse Development Reserve relates to expenditure of reserves of $1,298,982 on country racecourse developments and an annual replenishment of $2,000,000 to cover planned projects of $3,000,000 committed to within the next 12 months. The balance of the reserve as at 30 June 2018 of $3,523,163 is sufficient to meet the planned expenditure on major projects within the next year of $3,000,000. Future Development Reserve The Future Development Reserve represents reserves retained by the company on behalf of the country segment of the industry and is set aside to fund future expenditure programs of strategic significance to country racing. It is the strict intention of the company to fully expend the balance of the Future Development Reserve for the purpose for which it was established. Amounts set aside in the reserve will not be used by the company for any purpose other than the strategic development of country racing in NSW. Expenses are recognised on the completion of work. Determination as to which projects to fund, is made on resolution of the Board of Directors. Based on these resolutions, the company has plans, but has not contracted for, expenditure on major projects with estimated commitments, exclusive of GST as follows: Within One Year Later than One Year but not later than Five Years $ $ Strategic Projects Implementation 500, ,000 Key estimate and judgement: Reserves An accounting estimate is recognised with respect to reserves put aside for racecourse developments. The amount of the reserves is based on historical experience and takes into account future planned racecourse developments $ $ NOTE 9: RETAINED EARNINGS Retained Earnings Retained earnings at the beginning of the financial year 10,030,277 9,487,337 Net profit attributable to members of the company (1,636,609) 350,533 Transfers (to)/from reserves - Racecourse Development Reserve (701,018) (130,541) - Future Development Reserve 64, ,948 Retained profits at the end of the financial year 7,757,358 10,030,277 RACING NSW COUNTRY / 2018 ANNUAL REPORT

29 RACING NSW COUNTRY LTD - ACN NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, NOTE 10: MEMBERS LIABILITY The company is limited by guarantee. If the company is wound up, the Articles of Association state that each member of the company is required to contribute a maximum of $10 each toward meeting any outstanding obligations of the company. NOTE 11: KEY MANAGEMENT PERSONNEL (a) Directors:The following persons were directors of the company during the financial year: Mr Bob Pavitt (Chairman) Mr Greg Delaforce Mr Michael Martin Mr Max Walker Mr Michael Inglis Mr Michaek Kennedy Mr David Ringland Mr Rod Watt Other than the Chairman who receives an honorarium of $39,000 pa; (2017:$39,000), directors received no remuneration from the company during the year (2017: Nil). (b) Other key management personnel: The following persons also had authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly during the financial year: Name Position Employer Brian Charman Executive Officer Racing NSW Country Scott Kennedy General Manager Analytical/Industry Racing NSW Shane Meaney Racing Manager Racing NSW Andrew Small Projects Manager Racing NSW (c) Key management personnel compensation $ $ Short-term employee benefits 139, ,416 Post employment benefits 12,896 12,958 Total 152, ,374 NOTE 12: RELATED PARTY DISCLOSURES Transactions with Other Related Parties During the year ended 30 June 2018, the company engaged in the following transactions with other entities involved in the racing industry: Racingcorp Pty Ltd Received as revenue $44,117,086 (2017: $42,812,653) being the total fees due to the company under the Racing Distribution Agreement, Inter-Code Deed and Thoroughbred Racing Intra-Code Deed. At 30 June 2018 the company had a receivable of $16,045,862 (2017: $15,084,251) from Racingcorp Pty Ltd arising from the Racing Distribution Agreement and Inter- Code Deed and Thoroughbred Racing Intra-Code Deed. Racing NSW Received as revenue $1,151,591 (2017: $1,129,011) as an administration subsidy in accordance with clause 14.9 of the Intra-Code Deed. Paid as expenses $578,634 (2017: $567,289) being the employment costs of race stewards employed by Racing NSW who worked on country race meetings, other than Chairmen of Stewards for regional racing associations. Paid as expenses $259,513 (2017: $254,424) being an agreed fee for the provision of administrative services. Paid as expenses $229,561 (2017: $238,927) being for racing services provided through Racing NSW s agreement with its associate Racing Information Services Australia for the Trainers Services Centre. At 30 June 2018 an amount of $5,256,459 was payable to Racing NSW (2017: $5,949,990 payable). At 30 June 2018 an amount of $442,467 was receivable from Racing NSW (2017: $734,283 receivable). NOTE 13: ECONOMIC DEPENDENCY The company received approximately 45% of its total income from Racingcorp Pty Ltd under the Racing Distribution Agreement with TABCORP Ltd. This represents the distribution of wagering receipts governed by this agreement. Consequently, the company is economically dependent on TABCORP Ltd. NOTE 14: OTHER SIGNIFICANT ACCOUNTING POLICIES (a) Cash and cash equivalents For the purposes of the Statement of Cash Flows, cash and cash equivalents includes cash on hand and at bank, deposits held at call with financial institutions, other short term, highly liquid investments with maturities of three months or less, that are readily convertible to known amounts of cash and which are subject to insignificant r isk of changes in value and bank overdrafts. (b) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Trade receivables and trade payables in the Statement of Financial Position are shown inclusive of GST.

30 29 RACING NSW COUNTRY LTD - ACN Directors Declaration In accordance with a resolution of the directors of Racing NSW Country Ltd, the directors of the company declare that: 1. The financial statements and notes, as set out on pages 21-28, are in accordance with the Corporations Act 2001 and: (a) comply with the Australian Accounting Standards - Reduced Disclosure Requirements; and (b) give a true and fair view of the financial position as at 30 June 2018 and of the performance for the year ended on that date of the company. 2. In the directors opinion there are reasonable grounds to believe that Racing NSW Country Ltd will be able to pay its debts as and when they become due and payable. On behalf of the directors Bob Pavitt Chairman Michael Inglis Deputy Chairman Signed at Sydney this 27th day of September RACING NSW COUNTRY / 2018 ANNUAL REPORT

31 RACING NSW COUNTRY LTD - ACN Directors Report The directors present their report on the company for the financial year ended 30 June Directors in office at any time during the whole of the financial year and up to the date of this report are: Mr Bob Pavitt (Chairman) Consultant. Aged 70. Member of the Executive Sub-committee. President of the Northern Rivers Racing Association. Mr Michael Inglis (Deputy Chairman) Barrister. Aged 68. Member of the Executive Sub-committee. Member of the Southern Districts Racing Association Mr Michael Martin Businessman. Aged 56. President of the South East Racing Association. Mr Greg Delaforce Businessman. Aged 66. Member of the Mid North Coast Racing Association. Mr Michael Kennedy Grazier. Aged 68. Member of the Western Racing Association. Mr David Ringland Retired. Aged 66. President of the Central Districts Racing Association. Mr Rod Watt Solicitor. Aged 67. President of the Hunter & North West Racing Association. Mr Max Walker Contractor. Aged 63. Member of the Central Districts Racing Association PRINCIPAL ACTIVITIES During the financial year, the principal continuing activities of the company were: Promoting the participation in country racing of all stakeholders; Responsibility for the conduct, planning, management and development of country racing; Recommending and advising on country racing matters; and Providing common services and organisation structures. There has been no change in the principal activities during the year. PERFORMANCE MEASUREMENT The loss of the company for the financial year was $1,636,609 (2017: $350,533 profit). A review of the operations of the company during the financial year and the results of those are as follows: The Company received additional payments from Racing NSW of $45,492,630 (2017: $43,174,396), an increase of $2,318,234 or 5.3% year on year. The number of race meetings held in 2017/18 was 502, an increase of 37 meetings from the 465 meetings in 2016/17. The number of TAB meetings held in 2017/18 was 419, an increase from the 378 TAB meetings in 2016/17. Of these, Saturday meetings conducted were 79 during 2017/18, a total of 23 more Saturday meetings than in 2016/17. The number of community meetings held was 83 in 2017/18, 4 Community meetings less than in 2016/17. Revenue from Tabcorp/Racingcorp increased by $1,304,433, or 3%, to $44,117,086 in 2017/18 from $42,812,653 in 2016/17. Total payments to race clubs increased to $81,628,126 in 2017/18 as compared to $76,191,944 in 2016/17, an increase of $5,436,182 and 7.1% year on year. During the year, minimum prizemoney levels at full TAB meetings (including Saturday Matinee meetings) remained at $20,000 per race and Sky 2 prizemoney remained at $10,000 per race. Race meeting and racing expense payments increased by $518,299 or 3.7% to $14,537,616 in 2017/18.

32 31 Administrative expenditure increased by 18.5% to $894,554 in 2017/18. Grants made to race clubs from the Country Racecourse Development Reserve decreased to 1,298,982 in 2017/18 from $1,869,459 in 2016/17. An amount of $2,314,770 was received from Racing NSW in relation to PGI Product fees during 2017/18 (2017: $2,419,281). No other significant variations in activities occurred during the year. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There were no significant changes in the state of affairs of the company. MATTERS SUBSEQUENT TO THE END OF THE YEAR The directors know of no matter that has arisen since the balance date that has significantly affected or may significantly affect the operations, results or state of affairs of the company in future financial years other than those disclosed. ENVIRONMENTAL REGULATION The company s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or a State or Territory. SHORT AND LONG-TERM OBJECTIVES The budgeted income of Racing NSW Country for 2018/19 will include a distribution from Racing NSW of $46.650m (2018: $41,552,500) that will enable minimum TAB prizemoney to be maintained throughout the financial year. The budgeted income will also include a further distribution from Racing NSW in relation to PGI Product Fees of $2.325m (2018: $2,300,000). From 1 September 2018, the minimum prizemoney levels for TAB racing will increase to $22,000 per race (previously $20,000). The minimum prizemoney for Sky 2 racing has remained at $10,000 per race. The minimum prizemoney for community/non-tab racing has remained at $6,000 per race. Ensure race programming is structured such that clubs within the Country sector are afforded all opportunities to maximise revenue and TAB turnover Conduct ongoing review of operational, administrative and racing expenses. MEMBER CONTRIBUTIONS ON WINDING UP The company is limited by guarantee. If the company is wound up, the Articles of Association state that each member of the company is required to contribute a maximum of $10 each toward meeting any outstanding obligations of the company. MEETINGS OF DIRECTORS The number of meetings of the company s Board of Directors held during the year ended 30 June 2018, and the number of meetings attended by each director were: NAME HELD ATTENDED Mr Bob Pavitt (Chairman) 6 6 Mr Michael Inglis 6 6 Mr Greg Delaforce 6 6 Mr Michael Kennedy 6 5 Mr David Ringland 2 2 Mr Rod Watt 6 6 Mr Michael Martin 6 5 Mr Max Walker 4 3 HELD: represents the number of meetings held during the time the director held office or was a member of the Board. AUDITORS INDEPENDENCE DECLARATION A copy of the auditors independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 33. Signed in accordance with a resolution of the Board of Directors, pursuant to section 298(2)(a) of the Corporations Act STRATEGIES FOR ACHIEVING OBJECTIVES In terms of strategies for achieving these objectives Racing NSW Country will Maximise potential revenue streams from Broadcast and Media rights and sponsorship Maximise potential revenue from Racing NSW and Racingcorp Bob Pavitt Chairman Michael Inglis Deputy Chairman Signed at Sydney this 27th day of September RACING NSW COUNTRY / 2018 ANNUAL REPORT

33 32

34 33 RACING NSW COUNTRY / 2018 ANNUAL REPORT

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36 35 VENUE CLUB PERFORMANCE COMPARISONS SCHEME OF DISTRIBUTION SUMMARY NO. TOTAL TRACK TOTAL MEETINGS RNSWC MAINTENANCE RNSWC MEETING SCHEME DISTRIBUTION PAYMENTS PAYMENT ADAMINABY - 5,000-5,000 ALBURY 14 2,211,810 96,942 2,308,752 ARMIDALE 10 1,430,232 60,180 1,490,412 BALLINA 14 2,204, ,120 2,341,913 BALRANALD 2 67,022 2,741 69,763 BARRABA 1 32,575 3,607 36,182 BATHURST 11 1,720,444 66,560 1,787,004 BERRIGAN 3 93,247 5,338 98,585 BINGARA 1 29, ,589 BINNAWAY 1 35,850-35,850 BOMBALA 1 33,068 1,731 34,799 BOWRAVILLE 3 190, ,718 BRAIDWOOD 1 36,537 14,067 50,604 BREWARRINA 1 32,925-32,925 BROKEN HILL 1 68,397 3,823 72,220 BUNDARRA 1 34,600-34,600 CARINDA 1 35,500 1,010 36,510 CARRATHOOL 1 31,675-31,675 CASINO 5 477,378 35, ,275 CESSNOCK 10 1,551, ,838 1,652,624 COBAR 1 32,993 5,555 38,548 COFFS HARBOUR 16 2,631, ,914 2,824,076 COLLARENEBRI 1 35, ,615 COOMA 1 35,419 9,234 44,653 COONABARABRAN 3 343,192 7, ,911 COONAMBLE 4 511,274 30, ,674 COOTAMUNDRA 1 212,506 13, ,996 COROWA 6 1,029,580 22,263 1,051,843 COWRA 4 387,094 40, ,014 DEEPWATER 1 35,253-35,253 DENILIQUIN 2 64, ,996 DUBBO 14 2,405, ,711 2,632,509 ENNGONIA 1 35,500-35,500 FORBES 2 249,095 12, ,647 GILGANDRA 4 409,609 26, ,083 GLEN INNES 1 69,388 15,365 84,753 GOULBURN 20 3,345, ,749 3,521,522 GRAFTON 26 4,585, ,681 4,821,365 GRENFELL 1 33,377-33,377 GRIFFITH 1 74,538 5,555 80,093 GULARGAMBONE 1 36,190-36,190 GULGONG 1 35,555 30,153 65,708 GUNDAGAI 6 741,428 19, ,108 GUNNEDAH 8 1,179,018 32,640 1,211,658 HAY 1 34,387 1,154 35,541 HILLSTON 1 33,925-33,925 HOLBROOK 1 34,730-34,730 INVERELL 4 309,248 67, ,399 JERILDERIE 1 18,587 14,932 33,519 KEMPSEY 5 560,220 37, ,560 LEETON 3 331,566 9, ,872 LIGHTNING RIDGE 1 32,300-32,300 RACING NSW COUNTRY / 2018 ANNUAL REPORT

37 36 PRIZEMONEY VENUE NO. TOTAL TRACK TOTAL PRIZEMONEY MEETINGS RNSWC MAINTENANCE RNSWC MEETING SCHEME DISTRIBUTION PAYMENTS PAYMENT - 2,156,575 1,305,725 1,995,150 82,400 39,575 1,624, ,850 32,100 36,550 44, ,775 47,700 36, ,200 37,100 38,000 45, ,650 1,340,450 37,300 2,410,875 42,500 56, , , , , ,750 40,325 72,875 2,509,925 45, , ,150 63,525 3,228,225 4,363,700 37,250 73,325 35,600 38, ,650 1,138,425 57,650 41,425 42, ,450 21, , ,575 34,625 LISMORE 10 1,377,169 51,200 1,428,369 1,252,775 LOUTH 1 35,706-35,706 59,325 MANNING VALLEY 23 3,941, ,392 4,107,415 3,571,475 MENDOORAN 1 35,241-35,241 36,550 MERRIWA 1 29,550-29,550 46,550 MOREE 6 834,580 25, , ,300 MORUYA 12 1,910,403 95,257 2,005,660 1,861,525 MOULAMEIN 1 34,439-34,439 40,925 MUDGEE 8 1,174,188 53,354 1,227,542 1,279,750 MUNGINDI 1 31,561-31,561 35,450 MURWILLUMBAH 11 1,482, ,590 1,587,428 1,315,100 MUSWELLBROOK 18 3,359, ,980 3,559,814 3,015,800 NARRABRI 1 32,462 1,226 33,688 40,850 NARRANDERA 3 341, , ,375 NARROMINE 5 844,426 33, , ,500 NYNGAN 1 32,902 24,599 57,501 37,300 ORANGE 9 1,493,764 37,120 1,530,884 1,470,600 PARKES 4 404,022 26, , ,175 POONCARIE 1 35,037-35,037 51,375 PORT MACQUARIE 18 2,976, ,862 3,122,381 3,010,925 QUEANBEYAN 11 1,555, ,978 1,667,858 1,377,900 QUIRINDI 7 907,685 28, , ,050 SAPPHIRE COAST 11 1,588,082 26,560 1,614,642 1,481,025 SCONE 18 4,007, ,847 4,193,366 4,800,200 SHOALHAVEN 13 2,072,151 44,701 2,116,852 1,837,825 SILVER CITY 1 31,453-31,453 44,775 TABULAM 1 28,317-28,317 28,525 TAMWORTH 20 3,341, ,184 3,598,524 3,342,375 TOCUMWAL 1 36,178-36,178 54,325 TRANGIE 1 34, ,591 34,875 TUMBARUMBA 1 34,714 1,948 36,662 43,875 TUMUT 4 133,736 12, , ,700 TUNCURRY-FORSTER 4 635,757 21, , ,200 WAGGA 25 4,344, ,580 4,579,778 4,362,825 WALCHA 2 209,951 11, , ,150 WALGETT 1 33,497 1,154 34,651 35,475 WALLABADAH 1 28,155-28,155 29,800 WARIALDA 1 32,350 1,803 34,153 33,850 WARREN 4 521,458 1, , ,000 WAUCHOPE 4 445,511 33, , ,950 WELLINGTON 9 1,312,235 25,077 1,337,312 1,388,500 WENTWORTH 1 28, ,833 41,965 YOUNG 1 41,554-41,554 46,000 Grand Total ,008,308 3,731,167 75,739,475 69,706,140

38 37 Club COUNTRY RACECOURSE DEVELOPMENT FUND SUMMARY OF PAYMENTS FOR (SORTED BY PROJECT) Project Description Albury RC New course proper irrigation system New sand training track irrigation system Clarence River JC Re-surface betting ring and adjoining areas Consultants/Misc. SAI Global (Australian Standards) SESL (2017 Track Managers Seminars) OCS (2017 Clubs WHS Seminars) Holding Redlich (legal fees) SESL (2018 Soil Chemistry Corowa, Kempsey & Glen Innes) PVC Running Rail Project SESL (2018 Track Managers Seminars) Cootamundra TC New equipment storage shed New administration & jockeys amenities Corowa RC New PVC inside running rail Dubbo TC Upgrade Stabilizer Gold track irrigation system New 16 stalls mobile starting barriers Gilgandra JC New 2.1m kangaroo fence Goulburn & District RC Professional fees (Raceday/Function Centre) Grenfell JC New female jockeys amenities Hay JC 18 new raceday/tie-up stalls Leeton JC New surveillance tower at Ch 800m Marthaguy Picnic RC New female jockeys amenities Moree RC New PVC inside running rail Moruya JC New course proper irrigation system RNSWC 2017 Awards Prize Mungindi JC New female jockeys amenities Muswellbrook RC Re-surface parade ring & enclosures Narrandera RC Course proper cut-off drain Quirindi JC New head-on surveillance tower Sapphire Coast TC Upgrade swab box/vet room New 16 stalls mobile starting barriers Tuncurry-Forster JC New plant & equipment Warren & District JC New PVC inside running rail Wine Country RC New 14 stalls mobile starting barriers SUMMARY OF FINANCIAL TRANSACTIONS FOR Opening Balance as at 1 July ,822,145 LESS - Project payments 1,421,010 PLUS - Transfer from accumulated surplus 2,000,000 - Prior Year Adjustment 122,015 - Rounding 13 Closing Balance as at 30 June ,523,163 RACING NSW COUNTRY / 2018 ANNUAL REPORT

39 38 Amount Opening balance Payments Total Closing balance $350,997 $35,050 $7,597 $323,545 $27,452 $86,714 $86,714 $87,542 $87,542 -$828 $107,707 $107,707 $106,891 $106,891 $816 $1,143 $1,143 $1,143 $1,143 $0 $15,000 $11,880 $7,080 $10,200 $4,800 $17,750 $0 $17,748 $17,748 $2 $10,000 $0 $4,035 $4,035 $5,965 $750 $0 $750 $750 $0 $5,050 $0 $5,050 $5,050 $0 $16,000 $0 $2,600 $2,600 $13,400 $17,419 $17,419 $17,419 $17,419 $0 $5,000 $0 $5,338 $5,338 -$338 $74,310 $0 $69,310 $69,310 $5,000 $82,208 $40,620 $40,620 $82,208 $0 $108,941 $108,941 $108,941 $108,941 $0 $75,368 $75,368 $75,368 $75,368 $0 $97,029 $50,046 $1,747 $48,730 $48,299 $10,000 $0 $6,623 $6,623 $3,377 $10,000 $10,000 $10,000 $10,000 $0 $8,800 $0 $7,253 $7,253 $1,547 $12,500 $0 $12,500 $12,500 $0 $76,035 $0 $71,035 $71,035 $5,000 $340,763 $0 $337,118 $337,118 $3,645 $5,000 $0 $5,000 $5,000 $0 $10,000 $10,000 $10,000 $10,000 $0 $63,818 $0 $63,817 $63,817 $1 $10,880 $0 $10,880 $10,880 $0 $17,491 $17,491 $18,696 $18,696 -$1,205 $6,576 $6,576 $6,576 $6,576 $0 $111,718 $0 $111,718 $111,718 $0 $16,818 $16,818 $16,818 $16,818 $0 $79,085 $0 $74,085 $74,085 $5,000 $99,711 $0 $99,711 $99,711 $0 $1,950,581 $595,773 $1,421,010 $1,828,648 $121,933 NOTE: As amounts are rounded to the nearest dollar, sum of all projects may not equate to total

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