Performance Summary

PERFORMANCE SUMMARY
Strength,
performance,
value,
benefits.

Tabcorp’s results for the financial year ended 30 June 2016 comprise its three core business units: Wagering and Media, Gaming Services, and Keno. For FY16, total ordinary dividends were up 20%, totalling 24 cents per share fully franked. Annual revenue also increased by 1.5%,to $2,188.7 million. All three business units grew revenues and reported positive earnings before interest, tax, depreciation and amortisation. Additionally, a number of recent initiatives have further strengthened and diversified our operations. The table below corresponds to Tabcorp’s 2016 Annual Report and summarises the results for the financial year ended 30 June 2016.

Five Year Performance Table

Financial performance UNIT FY16 FY15 FY14 FY13 FY12
Total revenue $m 2,188.7 2,155.5 2,039.8 2,133.4 3,038.5
EBITDA(i) $m 479.6 508.1 459.4 472.3 725.2
Profit before interest and tax $m 301.0 334.6 295.0 313.1 591.7
Profit after income tax attributable to members of parent entity(ii) $m 169.7 334.5 129.9 126.6 340.0
Dividend(iii) $m 199.6 389.2 121.3 140.3 173.0
Financial position and cash flow            
Total assets $m 3,302.8 3,384.0 3,105.1 3,144.6 3,249.0
Total liabilities $m 1,614.7 1,693.9 1,623.7 1,731.4 1,843.2
Shareholders' funds/total equity $m 1,688.1 1,690.1 1,481.4 1,413.2 1,405.8
Net cash flows from operating activities $m 401.1 399.7 387.4 264.9 525.5
Capital expenditure - payments $m 183.1 131.6 198.4 204.2 631.0
Cash at end of year $m 126.0 160.0 126.8 109.7 151.4
Shareholder value            
Earnings per share cents 20.4 42.4 17.2 17.2 47.6
Dividends per share(iii) cents 24.0 50.0 16.0 19.0 24.0
Operating cash flow per share(iv) cents 26.2 34.0 25.0 8.2 (14.8)
Net assets per share $ 2.03 2.14 1.96 1.92 1.97
Return on shareholders' funds % 10.0 21.3 8.9 9.0 25.9
Total shareholder return(v) % 5.5 50.3 15.6 11.9 0.1
Share price close $ 4.57 4.55 3.36 3.05 2.93
Market capitalisation $m 3,799.8 3,773.8 2,563.5 2,271.9 2,139.2
Segment revenue(vi)            
Wagering and Media $m 1,873.0 1,856.9 1,737.8 1,711.5 1,776.5
Keno $m 208.5 199.0 203.9 205.4 183.1
Gaming Services $m 107.2 99.6 98.1 86.3 4.7
Gaming(vii) $m - - - 130.2 1,074.2
Employee            
Safety(viii) LTIFR 0.9 1.0 1.5 2.7 1.4
Engagement(ix) number 3.94 3.89 3.81 3.65 3.47
Females in senior management roles % 37 33 35 29 31
Stakeholder benefits            
Returns to racing industry $m 786.9 773.2 735.0 728.2 652.7
Taxes on gambling paid $m 428.6 459.6 439.3 521.7 1,121.9
Income tax expense/(benefit)(ii) $m 61.4 (75.7) 66.7 83.0 157.0

(i)FY13 includes impairments of $65.8 million.

(ii)FY15 includes $163.2 million as a result of receiving income tax benefits relating to the Victorian wagering and gaming licence payment and the NSW Trackside payment ($160.4 million) and associated interest income.

(iii)Dividends attributable to the year, but which may be payable after the end of the period. FY15 includes a special dividend of 30.0 cents per share.

(iv)Net operating cash flow per the cash flow statement does not include payments for property plant and equipment and intangibles, whereas these items are included in the calculation for the operating cash flow per share ratio. FY12 includes payment for the Victorian Wagering and Betting Licence of $418.7 million.

(v)Total shareholder return (TSR) is calculated from 1 July to 30 June. The share price used for calculating TSR is the volume weighted average share price used in the Tabcorp Dividend Reinvestment Plan (DRP). Where no DRP was in operation, the closing share price on the dividend payment date is used.

(vi)Revenue includes both external and internal revenue.

(vii)Gaming includes the Victorian Tabaret business which ceased operations on 15 August 2012.

(viii)The lost time injury frequency rate (LTIFR) is the number of lost time injuries per million hours worked.

(ix)Employee engagement is measured by Gallup on a 1 to 5 scale.

Additional information for investors and shareholders