2013 Financial Year Results Tatts Group Limited

ABN 19 108 686 040

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Wagering Record Wagering revenue - $655.7 million up 5.2% (FY12: $623.3 million)

Tote Tasmania acquisition performing to acquisition model – win rates at Group levels

Fixed price betting sales exceeded $1 billion up 16.0%

21.5% growth in Wagering online sales – now 20.2% of all Wagering sales (FY12: 16.9%)

Lotteries Record Lotteries revenues - $2.01 billion up 13.6% (FY12: $1.77 billion)

EBITDA of $294.6 million achieved in FY13 up 31.6%.

Acquired exclusive management rights to SA Lotteries - EBITDA of $24.8 million in ≈ 6 months

35.2% growth in Lotteries online sales – now 8.2% of all Lottery sales (FY12: 6.6%) (excluding SA Lotteries management fee)

Record jackpot sequence of 39 jackpots at or above $15 million (vs. FY12: 22 & H1 FY13: 21)

Powerball game changes successfully implemented

FY13 – GROUP MILESTONES

Lotteries EBITDA Contribution

EBITDA CAGR 22.8%

Wagering EBITDA Contribution

EBITDA CAGR 5.9%

FY13 FY12

FY11 FY10

FY09 FY08

105.4 118.8

144.8

196.4

223.8

294.6

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Pokies Tatts Pokies ceased - 15 August 2012

Profit on sale of gaming machines - $23.6 million

Health Benefit Levy determination still outstanding

Compensation claim lodged following Victorian Gaming Operator Licence expiry. To be heard in February 2014

Gaming Solutions

Maxgaming, Bytecraft and Talarius – under control of one COO

Maxgaming introduction of MaxConnect – Installed on over 8,900 machines

Bytecraft revenue growth of 11.7%

Talarius revenue growth of 12.8%

FY13 – GROUP MILESTONES

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FY13 – RESULTS OVERVIEW

Results - Statutory vs. Continuing Operations Basis • Tatts Pokies operations ceased in FY13 (15 Aug 2012)

• 6 weeks contribution from Tatts Pokies distorts comparison with prior period

• Results provided both on a:

“statutory” basis (including Tatts Pokies); and “continuing operations” basis (excluding Tatts Pokies)

Continuing Operations Results

Strong rotation from sales growth to NPAT:

Revenue up 11.0% EBITDA up 17.9% EBIT up 25.1% NPAT up 40.8%

EBIT margin 13.8% up from 12.2% in FY12

STATUTORY RESULTS FY13 (including Tatts Pokies)

Change on PCP

Revenue $3,115.9 m 20.1%

EBITDA $544.1m 16.3%

EBIT $441.9 m 19.6%

NPAT (Statutory) $247.3 m 22.5%

CONTINUING OPERATIONS RESULTS FY 13 (Excluding Tatts Pokies)

Change on PCP

Revenue $2,948.8 m 11.0%

EBITDA $490.2 m 17.9%

EBIT $406.1 m 25.1%

NPAT (Continuing) $227.4 m 40.8%

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Dividends

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7.5¢ full franked final dividend per share (FY12: 12¢)

record date 4 September 2013

payment date 7 October 2013

Dividend reinvestment plan operative with a 1.5% discount

Full year dividend payout ratio from continuing operations of 95.1% (87.4% from statutory NPAT)

Track record of strong payout ratios – current intention to maintain that record

FY13 – RESULTS OVERVIEW

- As a % of continuing NPAT - As a % of Statutory NPAT

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95.1%

97.5%

102.3%

95.1% 96.0%

98.2%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

105.0%

FY13 FY12 FY11 FY10 FY09 FY08

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FY13 – RESULTS OVERVIEW

FY13 $’million

FY12 $’million

Change on PCP

Total revenue (continuing operations)

$2,948.8 $2,656.9 ▲11.0%

Other income 1.6 0.3 ▲6252%

State Government share ($1,376.4) ($1,265.6) ▲ 8.8%

Venue share/commission ($414.2) ($359.0) ▲15.4%

Product and program fees ($191.5) ($193.2) ▼ 0.9%

Other expenses (cont. operations) ($478.1) ($423.4) ▲12.9%

Total expenses (cont. operations) ($2,460.2) ($2,241.3) ▲ 9.8%

EBITDA (continuing operations) $490.2 $415.6 ▲17.9%

Depreciation and amortisation ($84.1) ($91.0) ▼ 7.6%

EBIT (from continuing operations) $406.1 $324.6 ▲25.1%

Interest income $3.7 $5.2 ▼ 29.3%

Finance costs ($106.7) ($104.5) ▲ 2.2%

PBT (from continuing operations) $303.1 $225.4 ▲34.5%

Income tax ($75.7) ($63.8) ▲18.5%

NPAT (from continuing operations) $227.4 $161.5 ▲40.8%

Profit from discontinued operations* $19.9 $157.6 ▼ 87.4%

NPAT (statutory basis) $247.3 $319.1 ▼ 22.5%

Revenue (Continuing operations)

FY13 $’million

FY12 $’million

Change on PCP

Lotteries Revenue 2,008.6 1,767.5 ▲ 13.6%

Wagering Revenue 655.7 623.3 ▲ 5.2%

Maxgaming Revenue 113.2 114.7 ▼ 1.3%

Bytecraft Revenue 116.0 103.8 ▲ 11.7%

Talarius Revenue 78.0 69.2 ▲ 12.8%

EBITDA (Continuing operations)

FY13 $’million

FY12 $’million

Change on PCP

Lotteries EBITDA 294.6 223.8 ▲ 31.6%

Wagering EBITDA 173.9 144.1 ▲ 20.7%

Maxgaming EBITDA 63.1 65.8 ▼ 4.2%

Bytecraft EBITDA (1.0) 8.4 ▼112.2%

Talarius EBITDA 7.7 7.0 ▲ 10.8%

EBIT (Continuing operations)

FY13 $’million

FY12 $’million

Change on PCP

Lotteries EBIT 269.5 202.6 ▲ 33.0%

Wagering EBIT 155.6 124.1 ▲ 25.4%

Maxgaming EBIT 48.1 44.5 ▲ 8.1%

Bytecraft EBIT (3.0) 6.9 ▼144.0%

Talarius EBIT (1.0) (2.7) ▲ 63.7%

Discontinued operations

FY13 $’million

FY12 $’million

Change on PCP

Pokies Revenue 190.7 1,245.1 ▼ 84.7%

Pokies EBITDA 53.9 234.6 ▼ 77.0%

Pokies EBIT 35.8 225.1 ▼ 84.1%

* - Discontinued Operations relate to Tatts Pokies which ceased operations on 15 August 2012

SEG

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FY13 – LONG TERM DIVERSIFIED LICENCES

Significant growth in Tatts Lotteries

resulting in an ever growing segment

contribution

Tatts Gaming Solutions as a Segment

contributes xx% to EBITDA (FY12: 18%)

Exclusive wagering licences in SA, Tasmania and Queensland1

Circa. 95% of wagering EBITDA ($165.2m) from licences that run for at least a further 35 years

Exclusive monitoring licence in NSW and NT

81% monitoring segment share in Queensland

Indefinite licence in the UK

Lotteries – Years Remaining Licence/Authorisation

Wagering – Years Remaining

2015

2052

2018

2050

2072

2111 2061

2015

2100

2098

Licence/Authorisation

Option to renew by Tatts

Gaming Solutions – Years Licence/Authorisation

Rolling renewal capability

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2017

2016 - 2019

2016

2032 Exclusive lottery operator in SA,

NSW and Queensland

Circa. 75% of Lotteries EBITDA ($221.0m) from licences that run at least 35 years

Group EBITDA

$490.2m

1 – Queensland licence exclusivity runs to 30 June 2014, SA exclusivity runs to 6 December 2016 and Tasmania exclusivity runs to 26 March 2027

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Exceptional jackpot sequence - 39 jackpots (Oz Lotto /Powerball) at or above

$15 million (FY12: 22 equivalent jackpots)

Record revenue - $2.01 billion – 13.6% revenue growth driving 33% EBIT

growth

Scale efficiencies evident - EBIT margin improvement – now 13.4% (FY12:

11.5%)

High participation rates – approximately 49% of Australian adult population

have played in past 12 months

Currently 2.3 million player card members with 0.9 million registered on

Tatts.com

291.5 million entries purchased in FY13 (FY 12: 270.1 million)

$13.54 average spend per transaction (FY 12: $12.68)

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4,222 retail outlets, including 584 in South Australia (FY12: 3,693) generating 91.8% of revenues - excl. SA Lotteries management fee

35.2% growth in online sales – now 8.2% of all lottery sales (FY12: 6.6%) - excl. SA Lotteries management fee

Acquired exclusive management rights - SA Lotteries

SA Lotteries contributed EBITDA of $24.8 million ≈ 6 months of operations

Tatts’ proprietary lotteries platform rolled out in all jurisdictions, with South Australia scheduled for FY14/FY15

FY13 – LOTTERIES

Financials FY13

$’million FY12

$’million Change

on PCP %

Revenue 2,008.6 1,767.5 ▲ 13.6%

EBITDA 294.6 223.8 ▲ 31.6%

EBIT 269.5 202.6 ▲ 33.0%

Divisional Highlights

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• All Tatts owned/operated lotteries rank in the top 10 per capita draw type game lotteries in the world

• Tatts Lotteries is now ranked as the 11th largest lottery operation in the world by total sales

Source: La Fleurs Worldwide Lotteries Almanac 2013

FY13 – LOTTERIES

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Lotteries Per–Capita Revenue

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FY13 – LOTTERIES

New SA Lotteries Website – Coming soon!

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5.2% revenue growth driving 25.4% EBIT growth

EBIT margin improvement - now 23.7% (FY12: 19.9%)

109,500 unique devices with an iPhone or Android App installed (H1 FY13:

81,800)

21.5% growth in online sales (FY12: 8.8%) – now 20.2% of all wagering

sales (FY12:16.9%)

Phone based sales reduced by 11.0%

TOTE Tasmania performing to acquisition model - win rates approaching

Group levels

Total sales from betting on fixed price betting now exceeding $1 billion

Racing dominates fixed price book – 79% of fixed price sales

Fixed price revenue on racing up 28.7% and win rates lifted (up one

percentage point)

FY13 – WAGERING

Financials FY13

$’million FY12

$’million Change on PCP

Revenue 655.7 623.3 ▲ 5.2%

EBITDA 173.9 144.1 ▲20.7%

EBIT 155.6 124.1 ▲25.4%

55 self service terminals rolled-out in Queensland, Northern Territory and Tasmania in June 2013 (now more than

100 rolled-out)

Queensland sports wagering licence extended to 2037

Tatts Tipping launched for 2013 NRL and AFL seasons

Divisional Highlights

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Market Overview

FY13 – WAGERING

Betting by sales channel FY10 Betting by sales channel FY13

■ Retail ■ On-course ■ Phone Betting ■ Online Betting

■ Tote ■ Fixed

Sales by bet type FY10 Sales by bet type FY13

Betting migration over the past 4 years

Migration from phone to

online continues – now 20.2% of total sales up from 15.9% in FY10

Migration from tote betting

to fixed price betting continues – fixed price now 31.3% of total sales from 12.9% in FY10

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SPORTS RACING

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14 Source: Hitwise Ranking Report – FY2013

FY13 – WAGERING

Most Popular Websites - Wagering

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Monitor all gaming machines in NSW and the Northern Territory

Monitor 81% of all gaming machines in Queensland

More than 131,000 machines monitored in 3,832 venues

Revenue distribution:

53.6% from monitoring

21.9% from value-add services

24.5% from EGM maintenance

Customer loyalty solutions on more than 19,000 machines

Introduction of Maxgaming’s patented electronic paperless payout

system – Max E-Pay in 7 venues

All major gaming machine manufacturers now subscribe to

Maxgaming’s Maxreports / Maxmobile reporting, benchmarking and

analysis system

Approval and rollout of Cash Redemption Terminals to support Simplay

My Cash, Max E-Pay and TITO

Simplay MyCash became operational on 5,250 EGMs across Queensland

Launch of MaxConnect – Customer relationship and promotional

vouchering system (75 venues – 8,900 gaming machines)

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FY13 – GAMING SOLUTIONS

Maxgaming FY13

$’million FY12

$’million Change on PCP

Revenue 113.2 114.7 ▼1.3%

EBITDA 63.1 65.8 ▼4.2%

EBIT 48.1 44.5 ▲ 8.1%

Divisional Highlights

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16 View the Maxgaming Connect Video by clicking Play on your Video Control Menu

FY13 – GAMING SOLUTIONS F

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173 venues operated with 7,461 gaming machines (FY12: 7,389

machines)

NMR (gross gaming revenue after return to player) per day (average)

£19.29 (FY12: £18.63)

Gaming machines at new Motorway Service Areas performing well

Property refurbishments continue to improve results

Record revenue of $116.0 million achieved in FY13 (up 11.7%)

71.2% of revenue generated from external sales (FY12: 61.4%)

New contract costs have been cycled through FY13 which have

impacted profitability

FY13 – GAMING SOLUTIONS

Talarius FY13

$’million FY12

$’million Change on PCP

Revenue 78.0 69.2 ▲12.8%

EBITDA 7.7 7.0 ▲10.8%

EBIT (1.0) (2.7) ▲ 63.7%

Bytecraft FY13

$’million FY12

$’million Change on PCP

Revenue 116.0 103.8 ▲11.7%

EBITDA (1.0) 8.4 ▼112.2%

EBIT (3.0) 6.9 ▼144.0%

Divisional Highlights

Divisional Highlights

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At 30 June 2013

$’million

At 30 June 2012

$’million

Variance %

ASSETS

Current assets 613.4 528.2 ▲ 16.1%

Intangible assets 4,553.3 4,098.1 ▲ 11.1%

Property, plant and equipment 186.2 186.9 ▼ 0.4%

Other non-current assets 92.2 130.8 ▼ 29.5%

Total assets 5,445.1 4,944.0 ▲ 10.1%

LIABILITIES

Current liabilities 1,059.9 1,091.0 ▼ 2.9%

Non-current liabilities 1,624.7 1,189.4 ▲ 36.6%

Total liabilities 2,684.6 2,280.4 ▲ 17.7%

TOTAL EQUITY 2,760.4 2,663.6 ▲ 3.6%

FY13 – BALANCE SHEET

Net debt (excluding prize reserves) $1,454.3 million (FY12: $1,167.0 million)

Reflecting the SA Lotteries acquisition funding - $427 million

Increase in intangibles - acquisition of right to manage SA Lotteries

Joint venture properties sold for $20.2 million in June 2013

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Net Debt to EBITDA

TOTE TASMANIA

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FY13 – KEY FINANCIAL RATIOS

Debt/EBITDA 2.68x (Dec 2012: 2.45x) - following acquisition of right to manage SA Lotteries

Capex for FY13 - $60.1 million (FY12: $66.6 million)

FY14 capex expected to be in the region of $75 million with terminal roll-outs in Wagering and SA Lotteries

Total depreciation and amortisation from continuing operations of $84.1 million (FY12: $91.0 million) - $64.1 million depreciation and $20.0 million amortisation

Interest expense for FY13 - $106.7 million (FY12: $104.5 million) - additional debt for SA Lotteries offset by lower interest costs

Acquisitions: NSW

LOTTERIES

SA LOTTERIES

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FY13 – DEBT FACILITY MATURITY PROFILE

Refinance of $480 million syndicated facility successfully negotiated in February 2013

Debt maturity profile extended – 3.46 years (was 2.78 years)

FY14 maturity considerations are underway

DRP continues including 1.5% discount

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Debt Maturity Profile - 30 June 2013 Weighted average Term improved from 2.78 years to 3.46 years

Syndicated Facility Tatts Bond Debt USPP Debt

Refinanced $480 million Syndicated Facility

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Focus upon:

Organisational structure – deconstruct divisional silos

Bench strength – resource up in critical business areas and

optimise existing resources

Brand & Retail position – major repositioning works in progress

Product innovation & improvement – multi-jurisdictional

opportunities across wagering and lotteries

Online demand generation – significant and to date under

exploited opportunity for Group

Industry partnerships – partnership approach to produce

mutually beneficial outcomes

State of the art online platforms – new Tatts.com site and App

FY13 – ORGANISATIONAL RENEWAL – CHALLENGE, RETHINK & REFRESH

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FY14 Focus upon:

Expanding Wagering offering;

Brand development & retail enhancements;

Lifting our online and traditional marketing activities;

Team & skills expansion in identified growth areas (+ optimise existing resources);

Online platform improvements.

Positive start to FY14 with:

2 jackpots above $15 million in July 2013;

SA Lotteries contribution – continuing “lift” through H1 FY14;

Win rates in Wagering maintained.

Balanced against full year challenge of cycling over:

exceptional FY13 jackpot run;

the “lift” from the first year’s contribution from Tote Tasmania.

FY13 – LOOKING FORWARD F

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