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Half-Year Results FY14 1 Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward Lotteries Wagering Half-Year Results FY14 Gaming Tatts Group Limited ABN 19 108 686 040

Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

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Page 1: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

1

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Lotteries Wagering

Half-Year Results FY14

Gaming

Tatts Group Limited ABN 19 108 686 040

Page 2: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

2

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Lotteries

Wagering

Gaming

Record EBIT of $144.9m - up 6.3% (H1 FY13: $136.4m) - contribution from successful SA Lotteries integration

Online sales - 9.2% of total sales excluding SA Lotteries (H1 FY13: 7.9%)

22 jackpots at or above $15m - up from 21 jackpots in H1 FY13 (average 1st division jackpot pool $28.6m vs. $31.7m in H1 FY13)

Monday Lotto launched in Queensland

Autoplay functionality developed

Wagering EBIT of $78.0m down 3.0% (H1 FY13: $80.4m) - reflecting highly competitive landscape and step-up in investment in team to respond to market

Online sales now represent 22.0% of all sales (H1 FY13: 19.1%)

Fixed price betting growth 11.6% with sales exceeding $620m - circa. 34% of all bets placed

Fixed price betting now available 24/7

Extended fixed price offerings

Organisational restructure starting to show positive results

Maxgaming EBIT up 4.9% - off the back of improved revenues (up 1.8%)

Talarius delivered a $3.3m EBIT turnaround - EBIT $1.9m vs. $1.4m loss in H1 FY13 - first positive EBIT contribution to Group

Bytecraft in rebuild phase - focus on core competencies

Successful entry into NSW gaming machine repair market - major hotel group contracted

EBIT CONTRIBUTION* ($’m)

150

125

100

75

50

25

0 FY09 FY10 FY11 FY12 FY13 FY14

71.

3

69.

6

68.8

71.5

80.4

78.0

EBIT CONTRIBUTION* ($’m)

50

40

30

20

10

0FY09 FY10 FY11 FY12 FY13 FY14

22.7

20.1

23.4

22.3

21.4

EBIT CONTRIBUTION* ($’m)

300

250

200

150

100

50

0FY09 FY10 FY11 FY12 FY13 FY14

144.

9

92.0

53.

4

98.7

136.

4

25.7

FY 1

08.5

FY 1

30.2

46.

5

FY 1

75.0

FY

202

.6

FY

269

.5

FY

130.

5

FY

128.

0

FY

123.

6

FY

136.

3

FY

155.

6

FY 4

1.7

FY 4

3.4

FY 4

6.3

FY 4

8.7

FY 4

4.1

* Underlying results

Reported Segments H1 FY14

• Maxgaming $25.0m - H1 FY13: $23.8m

• Talarius $1.9m - H1 FY13: ($1.4m)

• Bytecraft ($1.2m) - H1 FY13: ($1.0m)

Page 3: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

3

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

H1 FY14 ($’m)

H1 FY13 ($’m)

Change (%)

Total revenue and other income 1,491.3 1,545.7 q3.5%

Government share (669.8) (738.0) q9.2%

Venue share/commission (216.9) (214.2) p1.3%

Product and program fees (99.5) (102.4) q2.7%

Other expenses (240.1) (242.7) q1.1%

Total expenses (1,226.3) (1,297.3) q5.5%

EBITDA 265.0 248.4 p6.7%

Depreciation and amortisation (41.3) (41.7) q1.1%

EBIT 223.7 206.7 p8.2%

Interest income 1.2 2.1 q42.6%

Finance costs (49.0) (51.1) q4.1%

PBT 175.9 157.7 p11.5%

Income tax (53.9) (49.0) p10.1%

NPAT (from continuing operations) 122.0 108.7 p12.2%

Profit from discontinued operations - 19.6 q100%

NPAT (statutory basis) 122.0 128.3 q5.0%

H1 FY14 ($’m)

H1 FY13 ($’m)

Change (%)

Revenue 999.5 1,055.1 q5.3%

EBITDA 157.4 147.9 p6.4%

EBIT 144.9 136.4 p6.3%

H1 FY14 ($’m)

H1 FY13 ($’m)

Change (%)

Revenue 337.9 344.9 q2.0%

EBITDA 86.2 90.0 q4.1%

EBIT 78.0 80.4 q3.0%

H1 FY14 ($’m)

H1 FY13 ($’m)

Change (%)

Revenue

- Maxgaming 58.1 57.1 p1.8%

- Talarius 52.8 39.5 p33.6%

- Bytecraft 53.7 60.3 q10.9%

EBITDA

- Maxgaming 31.7 31.4 p1.1%

- Talarius 6.9 3.3 p105.6%

- Bytecraft (0.1) 0.0 -

EBIT

- Maxgaming 25.0 23.8 p4.9%

- Talarius 1.9 (1.4) p237.8%

- Bytecraft (1.2) (1.0) q15.1%

LotteriesW

ageringG

aming

Page 4: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

4

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

DIVIDEND PAYOUT RATIO 105%

100%

95%

90%

85%

80%

75%FY09 FY10 FY11 FY12 FY13 H1 FY14

• 8.0 cents per share fully franked interim dividend (H1 FY13: 8.0 cents per share)

• Record date 4 March 2014

• Payment date 4 April 2014

• Dividend reinvestment plan operative with a 1.5% discount

• Half-year dividend payout ratio of 93% (H1 FY13: 86%)

• Track record of strong payout ratios

96.0

%

95.1

%

102.

3%

97.4

%

95.1

%*

93.0

%

21.0c 21.0c 21.5c 23.0c 15.5c 8.0c

GREATEST PROPORTION OF SHAREHOLDERS ARE QUEENSLAND BASED

* As a percentage of continuing net profit after tax

QLD

VIC

NSW

WA

SA

Other Aus states

Offshore

0 20% 40% 60% 80%

53%

25%

13%

3%

2%

3%1%

Page 5: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

5

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Lotteries YEARS REMAINING

NT

TAS

SA

VIC

NSW

QLD0 20 40 60 80

2072

Exclusive lottery operator in SA, NSW and QLD

Circa. 80% of Lotteries EBIT ($115m) from licences that run at least 35 years

GROUP HALF-YEAR EBIT CONTRIBUTION % (continuing operations)

Exclusive wagering licences in SA, TAS and QLD*

Circa. 95% of wagering EBIT ($75m) from licences that run at least 35 years

*QLD licence exclusivity runs to 30 Jun 2014, SA exclusivity runs to 6 Dec 2016 and TAS exclusivity runs to 26 Mar 2027

Exclusive monitoring operator in NSW and NT

Circa. 80% monitoring segment share in QLD

Talarius - Indefinite licence in the UK

2050

2018

2052

2015

2032

Licence / Authorisation

LONG TERM DIVERSIFIED LICENCES

Wagering YEARS REMAINING

NT

TAS

SA

QLD0 20 40 60 80 100

2098

2100

2015

Option to renew by TattsLicence / Authorisation

21112062

Gaming YEARS REMAINING

QLD Monitoring

NSW Monitoring

NT Monitoring0 10 20 30

2016

2016 - 2019

Rolling renewal capabilityLicence / Authorisation

2017

Wagering 31%

Lotteries 58%

Gaming Maxgaming

10%Bytecraft

0%Talarius

1%

Page 6: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

6

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Lotteries - Divisional HighlightsH1 FY14

($’m)H1 FY13

($’m)Change

(%)

Revenue 999.5 1,055.1 q5.3%

EBITDA 157.4 147.9 p6.4%

EBIT 144.9 136.4 p6.3%

• Challenged by jackpot performance in H1 FY13

• Jackpot numbers up - 22 jackpots (Oz Lotto/Powerball) at or above $15m (H1 FY13: 21) - however jackpot values down (average 1st division: $28.6m vs. $31.7m in H1 FY13)

• EBIT Margin up to 14.5% (H1 FY13: 12.9%) - assisted by SA Lotteries

• Maintained strong participation rates - approximately 56% of the Australian adult population playing a lotto game in the past 3 months

• 2.3m player card members at 31 Dec 2013 (H1 FY13: 2.1m)

• 1.0m players registered on tatts.com (H1 FY13: 0.7m)

• 172m entries purchased in the half-year (H1 FY13: 183m)

• $12.54 average spend per transaction (H1 FY13: $12.86) - Online showing out-performance in average spend at $14.77 per transaction (H1 FY13: $15.00)

• 4,252 retail outlets - up from 4,238 in the pcp

• Online sales now 9.2% of all lottery sales (H1 FY13: 7.9%)

• SA Lotteries performing well - delivered revenue of $46.7m

• Strong SEO and SEM positioning on Google

• Tatts Group ranked as the 11th largest lottery operator world-wide

15.0%

12.5%

10.0%

7.5%

5.0%

2.5%

0FY09 FY10 FY11 FY12 FY13 H1 14

14.5

%

10.9

%

10.1

%

10.6

%

11.5

%

13.4

%

* Acquisition of NSW Lotteries

• Acquisition of SA Lotteries

25

20

15

10

5

0H1 13 H2 13 H1 14

21

Robust Jackpot Run (Oz Lotto & Powerball)

1822

Num

ber

of

jack

pot

s at

or

abov

e $1

5m

EBIT Margin (%)

*

.

$32m

$26m$29m

Ave. value of 1st division jackpots at or above $15m

Page 7: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

7

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Lotteries - Key Actions and Initiatives

• SA Lotteries website launched on 12 December 2013

• AutoPlay developed in half-year and now launched for online customers

• Retail expansion successfully trialled - Coles Express in Victoria

• Roll-out of multi-jurisdictional Scratch-Its to commence

• On track for Tatts proprietary lotteries platform roll-out from April 2014 in South Australia - completing the network Australia-wide (excl. WA)

• Monday Lotto successfully launched in Queensland

Page 8: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

8

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Page 9: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

9

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Wagering - Divisional Highlights H1 FY14 ($’m)

H1 FY13 ($’m)

Change (%)

Revenue 337.9 344.9 q2.0%

EBITDA 86.2 90.0 q4.1%

EBIT 78.0 80.4 q3.0%

• Revenue result delivered in a competitive trading environment

• EBIT margin declined to 23.1% (H1 FY13: 23.3%) - reflecting investment lift to respond to market landscape

• Strong online sales - now 22.0% of all wagering sales (H1 FY13: 19.1%)

• Self-service terminals (SST) roll-out continuing - approximately 150 SST in the field

• Fixed price racing sales up 13.0% with strong win rate maintained

• Fixed price sales now represent 33.6% of total wagering sales (H1 FY13: 29.9%)

• Racing continues to dominate the fixed price book - circa. 81%

• Fixed price sport sales up 3.6% with double digit win rate

• Average fixed price bet now exceeding $26 per bet (H1 FY13: c. $25 per bet)

• 186,500 unique devices now operating with Tatts App installed

• Google SEM positioning improved in the half-year

• Migration from phone to online continues - online sales growth outpacing phone sales decline 3 to 1

25%

20%

15%

10%

5%

0FY09 FY10 FY11 FY12 FY13 H1 14

23.1

%

20.8

%

22.0

%

21.5

%

19.9

%

23.7

%

* Acquisition of Tote Tasmania

35%

30%

25%

20%

15%

10%

5%

0 H1 09 H1 10 H1 11 H1 12 H1 13 H1 14

Migration to Fixed Price

EBIT Margin (%)

33.5

%

29.7

%

25.3

%

21.6

%

9.8%

6.1%

Fixe

d o

dd

s %

of

tota

l

sale

s

*

Page 10: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

10

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Wagering - Key Actions and Initiatives

• Significant increase in bookmaking team resourcing

• Launch of 24/7 online fixed price betting offer

• Extended fixed price product offer - greyhound and harness racing

• Continued roll-out of self service terminals

• Established a dedicated wagering marketing team

• New wagering website in development

• New CRM system in deployment stage

• New bet types introduced - Double Trio & Total Trio

• New promotional activity introduced - TattsBet Tipping/Pool Party/Feature Race Packs

Get a 15% Bonuswhen you place a TattsBet Feature

Race Pack on the Derby Day!

Give the FeatureRace Pack a go at:

*Bonus o� er on the Derby Day limited to the first 5000 Feature Race Pack bets sold.

Gamble Responsibly. 13 19 39 TattsBet.com

SmartPhone

Spring Carnival

Spend $20 and get $23 worth of bets! Just choose four horses, or leave the ticket blank and the computer will do

the selecting for you. It’s that simple!

Page 11: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

11

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Wagering - Segment Overview

TattsBet racing wagering segment share has remained relatively stable over the past 5 years

Opportunity to increase Sports Betting segment share through planned initiatives

Migration from phone to online continues - online now 22.0% of total sales

Migration from tote betting to fixed price betting continues - fixed price now 33.6% of total sales

Retail

On-course

Phone Betting

Online Betting

TattsBet Betting by Sales Channel H1 FY14

Tote

Fixed

TattsBet Sales by Bet Type H1 FY14

68%

22%

7%

3%

66%

34%

Total Wagering (Racing & Sports) Segment Share - 2013*

Total Racing Segment Share - 2013*

94%

All other operators

Total Sports Segment Share - 2013*

84%

All other operators

* Source: Australian Racing Fact Book 2012/13

16% 6%

15%TattsBet

85%All other

operators

16%

TattsBet

84%All other

operators

94%All other

operators

6%TattsBet

FY10 71%

16%

10%

3%

FY10

87%

13%

FY14

FY14

Page 12: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

12

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Gaming - Divisional HighlightsH1 FY14

($’m)H1 FY13

($’m)Change

(%)

Revenue 58.1 57.1 p1.8%

EBITDA 31.7 31.4 p1.1%

EBIT 25.0 23.8 p4.9%

Maxgaming

Maxgam

ing

• Revenue lift of 1.8% - first revenue lift since FY10 - driven by new products (Maxgaming connect and e-Cash)

• Further revenue uplift is expected from the roll-out of ticket-in-ticket-out (TITO) in H2 FY14

• Circa. 132,000 machines monitored in 3,811 venues (H1 FY13: circa. 132,000 in 3,874 venues)

• EBIT margin improvement to 42.9% (H1 FY13: 41.7%)

• Queensland monitoring segment share constant - circa. 80%

• Revenue distribution: - c. 53% from monitoring (H1 FY13: c. 53%) - c. 25% from value-add services (H1 FY13: c. 25%) - c. 22% from EGM maintenance (H1 FY13: c. 22%)

5%

4%

3%

2%

1%

0

-1%

-2%

-3%

-4%

-5%FY09 FY10 FY11 FY12 FY13 H1 14

1.8%

4.2%

3.9%

3.4%

1.7%

Maxgaming Revenue Growth (%)

1.3%

Page 13: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

13

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Gaming - Divisional Highlights

• Impressive lift of 33.6% (17.2% constant currency) in revenue driven by: - investment in motorway sites - right-sizing of the gaming machine estate (172 venues vs H1 FY13: 176)

• First positive EBIT contribution to Group

• Improving economy in the UK should, over time, see increasing consumer spend on entertainment products

• 7,587 gaming machines under operation (H1 FY13: 7,585)

• Average net machine revenue (NMR - gross gaming revenue after return to player) per day - £19.87 (H1 FY13: £19.11)

H1 FY14 ($’m)

H1 FY13 ($’m)

Change (%)

Revenue 52.8 39.5 p33.6%

EBITDA 6.9 3.3 p106%

EBIT 1.9 (1.4) p238%

H1 FY14 ($’m)

H1 FY13 ($’m)

Change (%)

Revenue 53.7 60.3 q10.9%

EBITDA (0.1) 0 -%

EBIT (1.2) (1.0) q15.1%

TalariusTalarius

Bytecraft

Bytecraft• In rebuild phase - new management team focus on core competencies and

returning the business to positive EBIT contribution

• Positive EBITDA of $1.2m before restructure costs of $0.8m and one-off costs of $0.5m

Page 14: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

14

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Page 15: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

15

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

At 31 Dec 2013

($’m)

At 30 Jun 2013($’m)

Change%

ASSETS Current assets 665.8 613.4 p8.5%

Intangible assets 4,554.6 4,553.3 p0.0%

Property, plant & equipment 207.9 186.2 p11.7%

Other non-current assets 86.9 92.2 q5.6%

Total assets 5,515.2 5,445.1 p1.3%

LIABILITIES Current liabilities 1,126.7 1,059.9 p6.3%

Non-current liabilities 1,570.2 1,624.7 q3.4%

Total liabilities 2,696.9 2,684.6 p0.5%

TOTAL EQUITY 2,818.3 2,760.4 p2.1%

• Net debt (excluding prize reserves) $1,334.9m (H1 FY13: $1,538.7m)

• Increase in property through the acquisition of new HQ site

• Underlying half-year capex of $36.0m with a further $12.7m capex for our new HQ

• FY14 underlying capex expected to be in the region of $75m

• Total depreciation and amortisation of $41.3m (H1 FY13: $41.7m)

• $30.3m depreciation and $11.0m amortisation of licences and rights to operate

• $350m of debt in current liabilities has now been refinanced

Page 16: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

16

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Debt Facility Maturity Profile - Negotiated February 2014

• Debt/EBITDA 2.6x (30 Jun 2013: 2.7x)

• Interest expense reduced to $47.8m (H1 FY13: $49.0m) despite increased borrowings of $427m in December 2012 on the acquisition of the SA Lotteries management rights

• Refinance of $350m facility due in March 2014 has been renegotiated to a new five-year term

• Extended term to FY18 on $300m facility due in FY15 on improved margins

• Debt maturity profile further extended to 4.3 years (30 Jun 2013: 3.5 years)

• DRP continues including a 1.5% discount

650

600

500

400

300

200

100

0FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

Bank Loans Tatts Bond Debt USPP Debt

$’ m

illio

n

Ren

egot

iate

d fa

cilit

y

Ren

egot

iate

d fa

cilit

y

Page 17: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

17

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Renewal Program - initiatives delivered include

• 24/7 fixed odds betting on racing

• addition of fixed odds betting on greyhounds and trotting racing complementing the Group’s successful fixed odds offering on thoroughbreds

• significant increase in our team of bookmakers

• establishment of a dedicated “in-house” wagering marketing team

• launch of a number of new bet types and promotions

• implementation of sophisticated Customer Relationship Management (CRM) system across wagering and lotteries

• roll out of self-service betting terminals enabling the Group to extend its retail network into a wider range of venues

• engaging with racing clubs across all our operating jurisdictions and establishing on-course presence for TattsBet brand

• new SA Lotteries website

• new product offering for lotteries (multi-jurisdictional scratch-its and Monday Lotto)

Page 18: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

18

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Renewal Program - initiatives in progress include

• further expansion of Tatts’ team in Queensland

• launch of a new retail brand and image for Tatts’ wagering operation

• major wagering marketing campaign to commence

• expansion of Brisbane technology hub

• continual expansion of our specialist online team (front-end developers, system architects, user experience experts, online marketers, social media tacticians)

• expansion of our two Brisbane located data centres

• construction of purpose built HQ

• new generation wagering retail outlets rolling out in Queensland

• self service terminals providing cash, ticket-in ticket-out and debit card handling capabilities

• launch of new ‘state of the art’ wagering website

• introduction of a rewards program

• enhanced ‘in-play’ betting offer

Page 19: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

19

Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

Looking forward

• Outlook positive

• Strong start to second half

• January revenues up 7% - driven in part by the Christmas/New-year Saturday Lotto Megadraw on 4 January 2014

• Strong “drop-through” to NPAT

• Wagering sales (second half to date) up 3.3% with pari-mutuel win rate improving, racing and sport fixed price win rate showing slight softness but remaining comfortably at double digit levels

• The key business initiatives now in focus are:

• launching a new retail brand and image for Tatts’ wagering operations

• commencement of wagering marketing (both traditional and online)

• roll-out of new generation of wagering retail outlets in Queensland, South Australia, the Northern Territory and Tasmania

• the launch of a new wagering website (currently in development)

• the launch of a new lotteries website

Page 20: Half-Year Results FY14 Half-Year Results FY14€¦ · • 1.0m players registered on tatts.com (H1 FY13: 0.7m) • 172m entries purchased in the half-year (H1 FY13: 183m) • $12.54

Half-Year Results FY14

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Highlights | Results | Licences | Lotteries | Wagering | Gaming | Balance Sheet | Looking forward

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