RACING & WAGERING PERFORMANCE OVERVIEW

RACING & WAGERING PERFORMANCE OVERVIEW FIRST HALF OF 17/18 RACING SEASON (AUGUST 17 - JANUARY 18) Published March 18

INTRODUCTION 17/18 RACING SEASON H1 OVERVIEW IT IS NOW 1 MONTHS SINCE WE COMMITTED TO ENHANCED TRANSPARENCY AND GREATER ENGAGEMENT WITH OUR STAKEHOLDERS AND CUSTOMERS THROUGH THE BI-ANNUAL RELEASE OF KEY RACING AND WAGERING METRICS. The half-yearly results have been warmly embraced, serving as a public benchmark for current and future industry performance, whilst identifying important trends, highlights and challenges. It is with pleasure that we present Victoria s racing and wagering performance overview for the first half of the current racing season, being the period from August 17 to January 18. The summary of our story is that the industry has continued to enjoy positive growth in engagement, participation and wagering, however there are challenges emerging into the future. The Spring Racing Carnival is our flagship event and it was pleasing to report growth in excess of 5% in both attendance and turnover throughout our 17 edition. An 18.% growth in television ratings on Channel 7/7Two for spring s 13 feature racedays and significant increases in engagement with Racing.com certainly complemented this. Total attendance has grown to 931,57 in the first half of the season, which is a terrific result given the major infrastructure works that continue at Flemington. With significant changes and consolidation in the wagering landscape, the turnover rate slowed throughout summer to sit 3.3% up at the end of January with a record $3.75 billion wagered to date. The number of individual horses competing in the first half rose by 1.4% with connections sharing in some of the $16.3 million in prizemoney increases delivered for the season. Victoria maintained field sizes well above the national average in the first half and importantly, from a wagering viewpoint, we were able to reduce the number of races with less than eight starters. Our vision is Racing for All and thus it s pleasing to report of the continued growth in female participation with a dramatic % increase year-on-year in the number of rides secured by our female jockeys. From the commencement of the season 1% of prizemoney has been allocated to assist funding each of equine and jockey welfare. We have received requests since on what initiatives we are undertaking in these vitally important areas and thus we ve taken the opportunity in this half-yearly report to provide some context on our current investments. We are forecasting to spend $5.5 million across equine and jockey welfare in 17-18, whilst enhancing our commitment to other participants with initiatives like STABLELINE the nation s first free 4/7 support service for stable employees, trainers and their immediate families. In the interests of transparency, we ve also taken the opportunity to provide you with some of the key performance indicators that we are targeting by June to foster continued growth and success within the industry. As flagged, whilst the numbers for the first half of the 17-18 season are very positive, there are some challenges that we face in the second half and beyond. Most significantly, the wagering landscape is continuing to rapidly evolve through consolidation and regulatory change and the inevitable introduction of a Point of Consumption Tax is one that provides considerable risk to the future funding of the industry unless implemented appropriately by the State Government. In releasing these positive results for the first half of the season, I want to take this opportunity in closing to again thank all our customers for their continued support of Victorian racing, our participants for their dedication and commitment, and our Clubs for their tireless efforts in showcasing our sport. Giles Thompson Chief Executive 1 RV.RACING.COM RV.RACING.COM

RACING IN VICTORIA 17/18 RACING SEASON H1 OVERVIEW ENGAGEMENT AND PARTICIPATION REMAINS STRONG INDUSTRY SHARES IN SIGNIFICANT PRIZEMONEY INCREASES COMPETITION GETS TOUGHER, BUT MORE ENJOY THE SPOILS FIELD SIZES REMAIN A NATIONAL LEADER DESPITE CHALLENGES Attendees at meetings statewide increased to 931,57 -a.7% increase despite construction works at Flemington 6,355 individual horses competed an increase of 1.4% 395 trainers and 155 jockeys were victorious Over 6, owners have entered a runner across the past two seasons Prizemoney increases of $16.3 million introduced from 1 August 17 Record $15 million in prizemoney and bonuses on offer in 17-18 A 14.4% increase in the amount of VOBIS bonuses claimed Minimum prizemoney for all Saturday metropolitan staying races (m+) and 3YO races: 5% of the jockey population rode at a Saturday metropolitan meeting up from 48.3% More jockeys won more Saturday metropolitan races with a 15.9% increase Percentage of trainers with a Saturday metropolitan starter decreased from 33% to 31.5% More trainers celebrated success on this day though with an 18.3% increase in winning trainers The number of races with less than 8 starters decreased from 317 to 37 Total average field size remained at 9.9 starters despite a decrease in interstate participation at Victoria s eight premier meetings Average field size in metropolitan TAB races: 17/18 H1 VICTORIA 1.7 STARTERS 17/18 H1 $1, 17/18 H1 NATIONAL AVERAGE 9.6 STARTERS FEMALE PARTICIPATION TAKES ANOTHER STEP FORWARD Greater support for female riders with increases over % in rides and winners Total rides by female jockeys: 16/17 H1 $8,, 4, 6, 8, 1, Minimum prizemoney for Standard country maiden races: 17/18 H1 $, 16/17 H1 $, 1, VICTORIA REAFFIRMED AS THE HOME OF THE STAYER 4.5% of Australia s staying races (m+) were conducted in Victoria 4 Average field size in country TAB races: 17/18 H1 VICTORIA 9.7 STARTERS 17/18 H1 NATIONAL AVERAGE 9.4 STARTERS 4 6 6 8 8 1 1 1 1 17/18 H1 3,64 16/17 H1 3, 5, 1, 15,, 5, Owners rewarded with an increase to a minimum $1, for Saturday metropolitan staying races 1,, 3, 4, 18 induction brings to 46% the percentage of apprentice jockeys that are female Number of registered female stable employees has risen above 5% A nation high average field size of 1.11 starters in staying races A decrease in the percentage of staying races with less than 8 starters from 16.7% to 13.1% 3 RV.RACING.COM RV.RACING.COM 4

SPRING RACING CARNIVAL 17 OVERVIEW WAGERING PERFORMANCE 17/18 RACING SEASON H1 OVERVIEW THE SHOWPIECE OF AUSTRALIAN RACING 136 race meetings offered more than $77 million in prizemoney and bonuses Carnival headlined by 1 Group 1 races and 6 country cups Victoria welcomed 1 internationally-trained horses from England, France, Germany, Ireland and Scotland RACEGOERS AND PUNTERS CONTINUE TO SHOW THEIR SUPPORT Over 5% growth in both attendance and turnover Total attendance across Spring Racing Carnival: 17 686,45 STRONG ENGAGEMENT ACROSS BROADCAST AND DIGITAL CHANNELS Television ratings on Channel 7/7Two grew by 18.% for the 13 feature racedays Racing.com s combined live broadcast and streaming audience had a total reach of over 3, on each of the feature racedays Over. million views of online videos on Racing.com an increase of 3% 11.5 million minutes of live racing was streamed to the Racing.com digital platforms Unique visitors to springracingcarnival.com.au grew by 13% TURNOVER GROWTH CONTINUES IN THE FACE OF NEW CHALLENGES Total turnover up 3.3% with a strong start tempered by a slower finish Global trend towards fixed odds wagering continued Longshot winners early in the Spring Racing Carnival slow the growth rate Turnover from one key corporate bookmaker down more than 4% Total turnover across all approved wagering service providers: 17/18 H1 $1.14B PARIMUTUEL 16/17 H1 $1.B PARIMUTUEL 1 $3.75B NON-PARIMUTUEL $3.63B NON-PARIMUTUEL 3 4 BIG MEETINGS DELIVER BIG NUMBERS Over $1 billion wagered on Victoria s eight premier race meetings Australian record $334.5 million bet domestically on Flemington s Melbourne Cup meeting Total domestic wagering on the Melbourne Cup topped $ million for just the third time PUNTER INTEREST IN NIGHT AND TWILIGHT RACING CONTINUES TO SOAR Turnover on 18 Friday night meetings grew to over $86 million Average turnover per meeting on Friday nights: THE VALLEY 16 65,1 1,, 3, 4, 5, 6, Total turnover across Spring Racing Carnival: 7, MORE INFORMATION FLOWING TO PUNTERS Introduction of free sectional data for country meetings in October 17 17/18 H1 16/17 H1 $19.3M $1.3M 5 1 15 5 17 $.35B 16 $.3B.5 1. 1.5..5 Sectionals now available for all runners at TAB meetings - over 5 annually New Raceday system delivering more data in real time via @RVStewards twitter handle CRANBOURNE 17/18 H1 16/17 H1 $1.5M $9.3M 5 1 15 5 Positive start to Wednesday twilight trial being held from January to March Only three Thursday nights held in first half due to minor programming changes 5 RV.RACING.COM RV.RACING.COM 6

WELFARE 17/18 OVERVIEW STRATEGIC FRAMEWORK OUR VISION Racing for All - More people, more often, engaging and enjoying our sport AN INDUSTRY UNITED IN ITS COMMITMENT TO WELFARE All participants now sharing in the commitment to support our horses and each other $5.5 million will be spent by Racing Victoria on equine and jockey welfare in 17-18 1% of prizemoney allocated to assist funding each of equine and jockey welfare from 1 August 17 NURTURING THE CENTREPIECE OF OUR SPORT An amount equal to 1.6% of prizemoney ($3.15 million) to be spent directly on equine welfare CONTINUING TO SUPPORT OUR JOCKEYS An amount equal to 1.1% of prizemoney ($.1 million) to be spent directly on jockey welfare Over $1.3 million in accident insurance and eligible superannuation payments on behalf of jockeys More than $5, for support services including the 4/7 Jockey Assistance Program, dedicated medical officer and full-time jockey welfare officer A doubling of funding this season to over $1, for concussion research and testing Donations to the National Jockeys Trust of over $13, in 17-18 OUR PURPOSE To lead and champion great horse racing in Victoria THE CUSTOMER Why we re here OUR VALUES How the business behaves THE RIGHT TO EXIST Non-nego ables THE BEST RACING Delivering our Sport THE ENABLERS What we need WAGERING UNITY PROGRAMMING EQUINE WELFARE EXCELLENCE INFRASTRUCTURE VIEWERS HONESTY THE HORSE PUNTERS ENGAGEMENT R A CE G O E R S WELLBEING OWNERS CONTENT & MEDIA INTEGRITY CLUBS PARTICIPANTS TALENT & DIVERSITY OUR FOUR PRIORITY AREAS OF FOCUS ARE: 1. Customer growth and deeper engagement. Delivering the best racing 3. Strengthening equine welfare and integrity 4. Maximising our key enablers $1.45 million on world-leading research into horse injuries and health headlined by the University of Melbourne s world-first limb injury prevention study $1. million on welfare-related veterinary services to support horses during racing via injury prevention, raceday assistance and the continued expansion of initiatives such as scoping $5, to support and promote thoroughbreds after racing including the Off the Track program EXPANDING OUR COMMITMENT TO OTHER PARTICIPANTS Victoria was the first state to employ a full-time trainer wellbeing officer and the only one to provide seed and continued funding to the Australian Trainers Trust The launch of STABLELINE the nation s first free 4/7 support service for stable employees and their families The delivery of free health checks for participants via initiatives like the Wellbeing Lounge at Inglis Premier Sale KEY PERFORMANCE TARGETS - FY18 We have identified the following key performance targets for achievement by 3 June 18 (FY18), as we work towards our long-term targets of 3 June (FY): FY17 (A) FY18 (T) FY18 (YTD) FY Punters To grow total wagering turnover ($b) 6. 6.45 4.45 1 6.5 Racegoers To grow overall attendance (m) 1.4 1.4.98 1.5 Owners To increase registered owner data 67,5 7, 61,7 8, Viewers To increase our direct customer base in all digital channels 18, 5, 34, 35, Equine Welfare To reduce the rate of horse fatalities.5% (3) Towards % (14) Towards % Integrity Participants Programming To reduce the number of equine prohibited substance positives To reduce the number of injuries occuring from raceday incidents To increase average starter numbers for TAB flat races.4% (5) Towards % (8) Towards % 15 13 5 <1 9.9 1 9.9 1. 1 Turnover from 1 July 17 up to and including 18 February 18 Owner data is rolled over at the end of the racing season (31 July 17) meaning it increases throughout the year. Based on horses that have competed in the past seasons. (A) = Achieved (YTD) = Year To Date as at 31 January 18 unless specified (T) = Target 7 RV.RACING.COM RV.RACING.COM 8

KEY PERFORMANCE INDICATORS FOR VICTORIAN THOROUGHBRED RACING FIRST HALF 17/18 (AUG 17 TO JAN 18 - TAB MEETINGS ONLY) Standard Meetings G&L Meetings Premier Meetings Total Meetings Racing Statistics Number of Meetings Conducted 1 5-1.8% 8 6 7.7% 8 8.% 57 59 -.8% Number of Races Conducted 1,776 1,81 -.5% 41 1 9.% 76 76.%,93,118-1.% Number of Horse Starts 17,384 17,699-1.8%,58,38 8.6% 94 951-4.9%,816,978 -.8% Number of Individual Horses 5,73 5,611 1.6% 1,5 1,4 7.% 637 671-5.1% 6,355 6,7 1.4% Number of Races < 8 Starters 71 89-6.% 31 3 34.8% 5 5.% 37 317-3.% Average Starters per Race 9.8 9.7.7% 1.5 1.5 -.4% 11.9 1.5-4.9% 9.9 9.9.4% Standard Meetings G&L Meetings Premier Meetings Total Meetings Prizemoney Statistics Prizemoney Paid ($M) $46.69 $44.5 5.5% $9.1 $3.8 1.8% $35.53 $33.36 6.5% $111. $11.44 9.7% Super VOBIS + VOBIS Gold Bonuses Claimed ($M) $3.39 $3.9 9.9% $.8 $.6 37.3% $.1 $.8 15.9% $4.31 $3.77 14.4% Total ($M) $5.8 $47.33 5.8% $9.83 $4.41.% $35.63 $33.45 6.5% $115.53 $15. 9.8% Standard Meetings G&L Meetings Premier Meetings Total Meetings Wagering Statistics Parimutuel Turnover ($M) $541.6 $58.4-7.% $53.89 $6.55-3.3% $343.33 $37.8-7.9% $1,138.49 $1,17.41-6.5% Non Parimutuel Turnover ($M) $1,34.17 $1,34.83 5.6% $636.4 $55. 15.7% $67.1 $68. 6.7% $,61.7 $,413.7 8.% Total Turnover ($M) $1,845.44 $1,816.87 1.6% $89.3 $81.76 9.5% $1,13.45 $1,1.4 1.% $3,749.1 $3,63.68 3.3% Average Turnover per Meeting ($M) $8.35 $8.7 3.4% $31.8 $31.6 1.7% $16.68 $15.13 1.% $14.59 $14. 4.1% Participation Statistics Average individual starts per horse 3.7 3.35 -.1% Country Attendances (includes Non-TAB/Picnic) 35,663 341,3 3.4% Metropolitan Attendances 578,594 583,49 -.8% Total Attendances (includes Non-TAB/Picnic) 931,57 94,459.7% Owners - Eligible Victorian Gold Card Holders* 6,96 6,51 1.5% Female Owners - Eligible Victorian Gold Card Holders* 15,31 14,944.5% Training stables with a race starter 889 89 -.3% Training stables with a race winner 395 431-8.4% Jockeys with a race ride 3 36 -.5% Jockeys with a race winner 155 157-1.3% % of trainers with a metropolitan Saturday starter 31.5% 33.% -4.4% % of trainers with a metropolitan Saturday winner 8.9% 7.5% 18.3% % of jockeys with a metropolitan Saturday starter 5.% 48.3% 3.5% % of jockeys with a metropolitan Saturday winner 6.5%.9% 15.9% *Horse nominated in past two years

RACING & WAGERING PERFORMANCE OVERVIEW FIRST HALF OF 17/18 RACING SEASON (AUGUST 17 - JANUARY 18)