Tabcorp Holdings Limited

2010/11Full Year Results Presentation

16 August 2011

2

A significant and successful year

Tabcorp has completed a year of significant transformation

Demerger of Echo Entertainment Group

New Victorian Wagering and Betting Licence announced (commences August 2012)

New Victorian Keno Licence awarded (commences April 2012)

Fixed Odds betting in retail in NSW (launched January 2011)

Trackside product in NSW (launched January 2011)

International pooling in NSW (launched July 2011)

Tabcorp’s continuing businesses on track

Revenue and earnings growth across all businesses

Operating expenses well controlled

3

FY11 financial results

Reported NPAT $534.8m, up 13.9%

Tabcorp EBIT $562.5m, up 5.2%

Casinos EBIT $347.2m, up 33.6%

Demerger impact:

Gain on demerger of Echo (net) $351m

Goodwill impairment ($358m)

Net loss after tax ($7m)

Normalised NPAT $486.3m, up 1.9%

Normalised EPS 73.4 cents, down 6.4% following capital raising

Full year dividend of 43 cents per share

60.7% of normalised NPAT

4

Tabcorp FY11 financial results – continuing businesses

Tabcorp performance

Revenues $2,941.9m up 2.9%

Operating expenses $393.1m up 2.0%

EBIT $562.5m up 5.2%

Business performance (EBIT)

Wagering $220.2m up 4.5%

Media & International $52.8m up 2.7%

Gaming $241.4m up 7.1%

Keno $48.8m up 4.7%

Balance Sheet strong with Gross Debt/EBITDA at 1.4x

5

Business results

1.Revenues and expenses do not aggregate to Group total due to intercompany eliminations.

Wagering Change Media Change Gaming Change Keno Change Group1 Change

$m on pcp & Int'l on pcp on pcp on pcp on pcp

Revenues 1,569.1 1.0% 179.3 9.3% 1,077.4 3.9% 169.6 7.9% 2,941.9 2.9%

Variable contribution 551.0 2.5% 168.2 8.0% 316.3 5.0% 94.8 7.2% 1,079.9 4.4%

Operating expenses (263.5) 0.0% (108.4) 9.1% (36.7) (6.3%) (34.2) 4.9% (393.1) 2.0%

EBITDA 287.5 4.8% 59.8 6.0% 279.6 6.7% 60.6 8.6% 686.8 5.8%

D&A (67.3) 5.8% (7.0) 40.0% (38.2) 4.1% (11.8) 28.3% (124.3) 8.5%

EBIT 220.2 4.5% 52.8 2.7% 241.4 7.1% 48.8 4.7% 562.5 5.2%

EBIT/Revenue (%) 14.0% 0.4% 29.5% (1.8%) 22.4% 0.7% 28.8% (0.8%) 19.1% 0.4%

Capex 58.9 (12.1%) 10.0 (40.1%) 20.3 (26.2%) 14.5 1.6% 118.6 (14.4%)

6

Wagering: KPIs

1. Includes Luxbet2. Includes $8m paid to Victorian Racing IndustryNote: Victoria includes Joint Venture partner’s 25% interest

Strong growth in Fixed odds offsetting decline in totalisator revenues

Soccer World Cup revenues (Fixed odds)

FY11 $7.5m (1H11)

FY10 $15m (2H10)

Retail NSW turnaround driven by roll out of:

Fixed odds from January 2011

Trackside from January 2011, with over 1,100 installations to date and sales at $3.3m per week.

Expansion in self service terminals, with more than 3,400 terminals operating across the entire network

Wet weather drove abnormally high number of abandoned meetings

Race fields fees

FY11 $35m (FY10 $35m)

FY12 estimate $38m, increasing to $55m from August 2012

$m 1H11 Change 2H11 Change FY11 Change

Revenues product

Totalisator Vic 344 (2.6%) 290 (3.4%) 634 (3.0%)

Totalisator NSW 414 (3.9%) 354 (6.3%) 768 (5.0%)

Fixed odds 115 48.3% 127 19.6% 242 31.7%

Trackside 21 15.4% 29 64.9% 50 39.2%

Turnover by distribution

Retail Vic 1,585 1.4% 1,435 2.3% 3,020 1.8%

Retail NSW 1,898 (2.8%) 1,776 1.7% 3,674 (0.7%)

Internet 1 1,212 29.7% 1,152 8.9% 2,364 18.6%

Phone 466 (6.0%) 420 (8.8%) 886 (7.3%)

Oncourse 534 2.4% 441 (8.9%) 975 (3.0%)

Retail

Self service turnover Vic 42.7% 7.3% 45.6% 6.7% 44.3% 7.2%

Self service turnover NSW 16.6% 9.7% 23.1% 11.8% 19.2% 10.2%

Racing Industry contributions

Victoria (inc Gaming) 174 0.2% 148 (0.4%) 322 (0.1%)

New South Wales 125 (0.4%) 111 0.3% 236 (0.1%)

Race fields 2 17 21.8% 18 (16.6%) 35 (0.1%)

7

Channel initiatives

Retail is growing despite challenging market conditions

Growth supported by improved customer experienceNew and upgraded venues in NSW

Trackside expansion

Bet Live installations

Self-service terminal deployment

Interactive form and betting information

Online and Mobile is growing strongly 265,000 app downloads (across iPhone, iPad, Android)

290,000 active account customers

Online priorities in FY12New on-line wagering platform

Internet Protocol TV applications

Streaming on iPad

Customer Loyalty – No 1 Club in NSW62,000 members

8

Victorian Wagering and Betting Licence

Tabcorp to be awarded the Victorian Wagering and Betting Licence

Key terms:

Licence fee of $410m payable shortly

Sole retail licence

50/50 Joint Venture with Victorian Racing Industry, previously 75/25

Licence term of 12 years, commencing August 2012

Minimum Performance Obligation offer:

• FY13 $337m, FY14 $342m

• $1b in aggregate for FY13 through FY15

EBITDA estimate of $120m in FY14

Discussions are underway with the Victorian Racing Industry to

finalise arrangements for the new Joint Venture

The payment will be funded from:

Existing debt facilities

DRP underwriting agreement for 50% of next two dividends

9

Media & International

Revenue growth from additional channels and International

Expenses growth driven by new channels

Recently concluded Media Rights Agreements:

Racing Queensland

Harness Racing NSW

Greyhound Racing Victoria

WA Thoroughbreds

Showcase thoroughbred channel Sky Racing World in 14m UK homes (At the Races)

SIS deal for Sky into up to 10,000 UK betting shops

Sky Channel pictures exported to 26 countries

Premier Gateway International launched in July (Isle of Man)

Digital vision upgrade to venues well advanced

Sky available in 2.35m Australian homes

$m FY11 FY10 Change

Revenues 179 164 9.3%

Operating expenses (108) (99) 9.1%

EBITDA 60 56 6.0%

EBIT 53 51 2.7%

No. of Retail venues 5,015 4,990 0.5%Racing Industry contributions from International business 9 7 20.8%

10

Gaming: KPIs

Vic EGMsMarket share up, to 53.9%

Managing transition for end of licence in August 2012

Tabcorp Gaming SolutionsSign-ups approximately 7,500 EGM’s

Expected EBITDA in excess of $45m per annum from August 2012

Start up expenses in FY12 approx $5m

$m FY11 FY10 ChangeRevenues 1,077 1,037 3.9%

Operating expenses (37) (39) (6.3%)

EBITDA 280 262 6.7%

EBIT 241 225 7.1%

Venues (period end) 263 263 0.0%

EGMs (average) 13,303 13,349 (0.3%)

Jackpots EGMs (average) 77.4% 76.3% 1.1%

NMR/EGM/Day ($) 294.2 282.7 4.1%

Market Share (2H average) 53.9% 52.9% 1.0%

11

Keno: KPIs

Strong underlying performance in core business with revenue in NSW and QLD both up 8.2%

Expense growth driven by distribution expansion and technology upgrades

Depreciation increase reflects investment in network infrastructure and self service terminals

Completed NSW roll out of 600 self service terminals (Keno Touch)

NSW hotel expansion continues with 687 live venues at 30 June 2011, up 102 on prior year

Six Spot 10 jackpots in QLD in FY11 vs five Spot 10 jackpots in FY10

$m FY11 FY10 Change

Revenues 170 157 7.9%

Operating expenses (34) (33) 4.9%

EBITDA 61 56 8.6%

EBIT 49 47 4.7%

Venues (Qld, NSW) 2,739 2,633 4.0%

Ticket Count (m) (Qld, NSW) 96.5 90.1 7.1%

Avg ticket size ($) (Qld, NSW) 9.6 9.4 2.1%

12

Keno Victoria

Tabcorp awarded Keno Victoria Licence

Key terms:

Licence fee of $60m paid in April 2011

Licence term of 10 years commencing 15 April 2012

Expanded distribution into clubs and hotels

Licence includes simulated racing games

Tax rate (including GST) maintained at 24.24% of revenue

KPIs:

Up to 1,000 venues to be rolled out by FY13

Expected EBITDA approximately $20m per annum in FY15

FY12 expectations:

Modest turnover given commencement date of 15 April 2012

Start up expenses of less than $10m associated with launch

Capital investment of $30m for system and network infrastructure

13

Capital expenditure and investments

Major projects Capex trend

FY12 D&A expense ~ $130 - $140m

Major capex projects in FY11New internet platform

NSW Trackside

Self service in Wagering and Keno

Venue refurbishment

Sky / Digital decoder roll out

Major investmentsVic Wagering Licence (FY12)

Vic Keno Licence (FY11)

Trackside (FY12, FY13)

TGS loans (FY11)

$m

410

60

150

47

108 121 119

139

FY08 FY09 FY10 FY11Wagering Media & Int'l Gaming Keno Corporate

Major investments

14

-

100

200

300

400

500

600

700

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

$M

Undrawn Bank DebtDrawn Bank DebtTabcorp Retail BondsMedium Term Notes

Key capital features

$800m of new bank loan facilities in place on demerger

Undrawn bank facilities $570m at 16 August

$450m Medium Term Notes due October 2011

Binding commitment letter signed to provide $450m bridge loan facility

Gross Debt/EBITDA 1.4x

DRP underwriting agreement for 50% of next two dividends

Target dividend payout: FY12 50% of NPAT, FY13 80% of NPAT

FY12 expected interest rate range of 8.25% to 8.5% on borrowings

15

Summary

Demerger implemented

Tabcorp’s continuing businesses on track

EBIT $562.5m, up 5.2%

Revenue and earnings growth across all businesses

Operating expenses well controlled

Investment plans in place

Wagering - NSW roll out of Fixed Odds and Trackside

- Victorian Wagering and Betting Licence announced

Gaming - Tabcorp Gaming Solutions sign ups continue

Keno - Victorian Keno Licence awarded

Steady trading activity continued into FY12

16

Appendices

1. Group results

2. Demerger impacts

3. Tabcorp trends – continuing businesses

4. Tabcorp five year history – continuing businesses

5. Wagering: Financial data

6. Wagering: Revenues by state and product

7. Gaming: Financial data

8. Gaming: Market share

9. Keno: Financial data

10. Balance sheet

11. Cashflow

12. Comparative financial results for FY12 reporting

13. Reconciliation of reported results

17

1. Group results

(1) Normalised for theoretical win rate in the VIP Rebate Business of 1.35% of turnover.

Actual Change Normalised 1 Change

$m FY11 on pcp FY11 on pcp

Revenues 4,469.5 5.9% 4,381.8 3.5%

Government taxes & levies (1,204.6) 3.4% (1,195.9) 2.6%

Operating commissions (524.9) 4.9% (524.9) 4.9%

Racing industry fees (454.5) 0.2% (454.5) 0.2%

Variable contribution 2,285.5 8.8% 2,206.5 4.5%

Operating expenses (1,152.8) 4.5% (1,152.8) 4.5%

EBITDA 1,132.7 13.5% 1,053.7 4.4%

D&A (222.9) 9.5% (222.9) 9.5%

EBIT 909.8 14.5% 830.8 3.1%

Interest (139.2) (9.8%) (139.2) (9.8%)

Tax expense (229.0) 34.1% (205.3) 18.0%

NPAT before demerger costs 541.6 15.3% 486.3 1.9%

Demerger impact (6.8) 100.0%

NPAT 534.8 13.9%

18

2. Demerger impacts

(iii) Impairment of Wagering goodwill

Increase in market based WACC to 14.8% pre tax (previously 13.8% pre tax)

Allocation of goodwill and cash flows to Media & International (now a separate operating segment)

(i) Gain on demerger of Echo

Gain on demerger of Echo

Transaction costs (net of tax)

Net gain

$m

492

(141)

351

Market value $2,889m less net book value $2,397m

Cash expenses $88m, non cash $100m, less tax benefit $47m

Increase in cash costs due to financing costs and share based payments

P&L $88m, equity $30m, balance sheet $25m

Non cash costs increase attributable to change in net value of derivatives

P&L $100m, reserves $(40)m, issued capital $(4)m

P&L $47m, equity $6m

Scheme Booklet

Revised Estimate Spent Provided

Advisory, restructure, IT, financing 75 99 72 27Echo establishment costs 40 44 23 21Cash costs 115 143 95 48

Derivatives - 26Other 37 30Non cash costs 37 56

Income tax benefit (38) (53)

(ii) Demerger costs

These estimates reflect Tabcorp’s share of demerger costs

All amounts have been recognised in the financial statements at 30 June 2011

19

3. Tabcorp trends – continuing businesses

Revenue$m

EBITDA$m

584

605

639649

687

FY07 FY08 FY09 FY10 FY11

2,942

2,860

2,813

2,628

2,575

FY07 FY08 FY09 FY10 FY11

20

4. Tabcorp financial trends – continuing businesses

1. Amortisation of Victorian Wagering and Gaming Licence of $26.5m per annum commenced from FY08.

$m FY07 FY08 FY09 FY10 FY11

Revenues 2,575.3 2,627.7 2,813.0 2,860.0 2,941.9

Growth (%) 2.0% 7.0% 1.7% 2.9%

Variable contribution 951.8 971.4 1,018.8 1,034.6 1,079.9

Operating expenses 367.9 366.1 380.0 385.4 393.1

EBITDA 583.9 605.3 638.8 649.2 686.8

D&A 74.6 104.1 107.9 114.6 124.3

EBIT 509.3 501.2 530.9 534.6 562.5

Growth (%) (1.6%) 5.9% 0.7% 5.2%

21

5. Wagering: Financial data

Note: Victorian revenue and expenses are net of 25% allocation to JV partnerNSW represents 100% of revenue and expenses with an incentive fee equivalent to 25% of profits included in ‘Taxes, levies, commissions and fees’

$m FY11 FY10 Change

Racing - Vic 481.5 496.4 (3.1%)

Racing - NSW 768.2 808.8 (5.3%)

Fixed odds 218.8 163.7 33.7%

Trackside 39.5 26.8 47.4%

Other 61.1 57.8 5.7%

Revenues 1,569.1 1,553.5 1.0%

Taxes, levies, commissions and fees (1,018.1) (1,015.7) 0.2%

Operating expenses (263.5) (263.5) 0.0%

EBITDA 287.5 274.3 4.8%

D&A (67.3) (63.6) 5.8%

EBIT 220.2 210.7 4.5%

EBIT/Revenue 14.0% 13.6% 0.4%

22

6. Wagering: Revenue by state and product

Note: Victorian revenue is net of 25% allocation to JV partner, NSW represents 100% of revenue

NSW Change Vic Change Total Change $m FY11 on pcp FY11 on pcp FY11 on pcp

Operating revenues

Thoroughbred 509.1 (8.1%) 317.9 (5.4%) 826.9 (7.1%)Harness 100.1 (6.1%) 70.2 (7.2%) 170.3 (6.6%)Greyhound 159.0 7.4% 93.4 10.0% 252.5 8.4%Total racing 768.2 (5.3%) 481.5 (3.1%) 1,249.7 (4.4%)

Fixed Odds 218.8 33.7%Trackside 39.5 47.4%Other 61.1 5.7%

Revenues 768.2 (5.3%) 481.5 (3.1%) 1,569.1 1.0%

23

7. Gaming: Financial data

$m FY11 FY10 Change

Victorian network - Hotel 704.3 681.3 3.4%

- Clubs 367.2 351.7 4.4%

Total Victorian gaming 1,071.5 1,033.0 3.7%

Other revenue 5.9 4.1 43.9%

Revenues 1,077.4 1,037.1 3.9%

Taxes, levies, commissions and fees (761.1) (736.0) 3.4%

Operating expenses (36.7) (39.0) (6.3%)

EBITDA 279.6 262.1 6.7%

D&A (38.2) (36.7) 4.1%

EBIT 241.4 225.4 7.1%

EBIT/Revenue 22.4% 21.7% 0.7%

24

45.0%

46.0%

47.0%

48.0%

49.0%

50.0%

51.0%

52.0%

53.0%

54.0%

55.0%Ju

n-06

Sep-

06

Dec

-06

Mar

-07

Jun-

07

Sep-

07

Dec

-07

Mar

-08

Jun-

08

Sep-

08

Dec

-08

Mar

-09

Jun-

09

Sep-

09

Dec

-09

Mar

-10

Jun-

10

Sep-

10

Dec

-10

Mar

-11

Jun-

11

8. Gaming: Market share

Share per half:

Tabcorp v Tatts GroupVic Gaming Revenue Market Share

Jun 2006 to Jun 2011

Tatts Group

Tabcorp

53.9%52.0%51.0% 51.5%50.9% 52.3% 52.6% 52.9%53.2% 53.9%

25

9. Keno: Financial data

$m FY11 FY10 Change

Keno 141.5 130.1 8.8%

Other revenue 28.1 27.1 3.7%

Revenue 169.6 157.2 7.9%

Taxes, levies, commissions and fees (74.8) (68.8) 8.7%

Operating expenses (34.2) (32.6) 4.9%

EBITDA 60.6 55.8 8.6%

D&A (11.8) (9.2) 28.3%

EBIT 48.8 46.6 4.7%

EBIT/Revenue 28.8% 29.6% (0.8%)

26

10. Balance Sheet

1) For the purposes of this ratio EBITDA of $687m relating to Tabcorp’s continuing business is used.

1

As at As at Change$m 30 Jun 11 30 Jun 10 on pcpTotal current assets 251.1 381.1 (34.1%)Licences 430.0 652.6 (34.1%)Other intangible assets 1,805.7 3,627.5 (50.2%)Property, plant and equipment 280.5 1,762.9 (84.1%)Other non current assets 71.2 33.6 111.9%Total assets 2,838.5 6,457.7 (56.0%)Total liabilities 1,627.6 3,003.0 (45.8%)Shareholders’ funds 1,210.9 3,454.7 (64.9%)Net debt 817.9 1,729.9 (52.7%)Shares on issue (m) 688.0 612.6 12.3%

Ratios FY11Gross debt / EBITDA1 (x) 1.4Interest cover 6.5Net debt / Equity (%) 67.6

27

11. Cashflow

1) Gross debt comprises interest bearing liabilities, with US dollar borrowings stated at the AUD amount repayable under cross currency swaps.

Actual Change$m FY11 FY10 on pcpNet operating flows 1,006.9 1,028.6 (2.1%)Net interest payments (151.1) (148.4) 1.8%Income tax paid (197.7) (179.0) 10.4%Payments for PP&E and licences (595.6) (408.1) 45.9%Net operating cash flows 62.5 293.1 (78.7%)

Proceeds from issue of shares 427.7 - 100%Payment of transaction costs for share issue (12.7) - (100%)Payment of transaction costs for capital reduction (21.1) - (100%)Payment of transaction costs for demerger (64.7) - (100%)Dividends paid (269.7) (303.4) (11.1%)Loans advanced to customers (47.6) (4.7) >100%Proceeds from sale of assets 2.1 2.7 (22.2%)Others (8.2) (2.2) >100%

Net debt at beginning of period 1,729.9 1,749.5 (1.1%)Debt reduction on demerger (net) 965.5 - 100%Non cash movements (121.8) 34.1 >100%Net debt at end of period (reported) 817.9 1,729.9 (52.7%)

Operating cash flow per share (cents) 9.1 47.6 (80.9%)

28

12. Comparative financial results for FY12 reporting

6 months ended 31 December 2010 6 months ended 30 June 2011

$m Wagering Media & Int'l Gaming Keno Total Wagering Media & Int'l Gaming Keno Total

Revenues 825.9 89.5 556.2 83.8 1,528.1 743.2 89.8 521.2 85.8 1,413.8

Taxes, levies, commissions and fees (537.7) (5.4) (393.3) (37.5) (972.2) (480.4) (5.7) (367.8) (37.3) (889.8)

Operating expenses (130.6) (54.1) (19.5) (17.2) (195.7) (132.9) (54.3) (17.2) (17.0) (197.4)

EBITDA 157.6 30.0 143.4 29.1 360.2 129.9 29.8 136.2 31.5 326.6

D&A (32.5) (3.3) (18.7) (5.5) (60.1) (34.8) (3.7) (19.5) (6.3) (64.2)

EBIT 125.1 26.7 124.7 23.6 300.1 95.1 26.1 116.7 25.2 262.4

Interest (71.0) (63.4)

Tax (63.0) (63.5)

NPAT Continuing 166.1 135.5

Goodwill Impairment 0.0 (358.0)

Discontinued NPAT 99.3 491.9

Group Reported NPAT 265.4 269.4

29

13. Reconciliation of reported results

$m Reported Discontinued Operations

Intersegment Revenue

Group Results (per Appendix 1)

Revenues 2,947.5 1,527.2 (5.2) 4,469.5

Expenses (2,385.0) (1,180.0) 5.2 (3,559.7)

Profit before tax, interest & impairment 562.5 347.2 - 909.8

Interest (134.4) (4.7) (139.2)

Tax expense (126.5) (102.5) (229.0)

Impairment (358.0) 358.0 0.0

Profit from continuing operations (56.4) 598.0 - 541.6

Discontinued operations 591.2 (598.0) (6.8)

NPAT 534.8 - - 534.8

30