TABCORP HALF YEAR RESULTS PRESENTATION

4 February 2016

To: Australian Securities Exchange Market Announcements

20 Bridge Street Sydney NSW 2000

TABCORP HALF YEAR RESULTS PRESENTATION

Attached is the presentation regarding Tabcorp’s half year results ended 31 December 2015 to be presented by David Attenborough, Managing Director and Chief Executive Officer.

This presentation will be webcast on Tabcorp’s website at www.tabcorp.com.au from

10.00am (Melbourne time) today.

The information contained in this announcement should be read in conjunction with today’s announcement of Tabcorp’s half year results and Tabcorp’s most recent annual financial report.

Tabcorp Holdings Limited

ABN 66 063 780 709

2015/16

1H16 overview

 Statutory results

 NPAT $81.9m, down 33.1%

 EPS 9.9 cents per share, down 38.1%

 Results impacted by significant items after tax of $15.6m in 1H16, compared to a one-off tax

benefit of $31.5m in the pcp

 Results before significant items

 EBITDA $266.0m, up 1.8%

 NPAT $97.5m, up 7.3%

 EPS 11.7 cents per share, down 1.7%, following capital raising in 2H15

 Interim dividend 12.0 cents per share, fully franked, up 20.0%

 ACTTAB integration successfully completed

 Victorian thoroughbred media rights secured for a further 5 years

 Keno transformation on track, driving increased customer participation

 Gaming Services expanded to 9,550 machines under contract, up from 8,820 at June 2015

 As of 31 December 2015, Tabcorp has adopted an enhanced AML/CTF program

Group Results

 Significant items (after tax) comprises costs relating to the AUSTRAC civil proceedings ($7.2m) and

preparations for launch of the Sun Bets business ($8.4m)

Notes: Earnings before significant items presented to provide the most meaningful presentation of Tabcorp’s results

$m

1H16

1H15

Change

Revenues

1,135.6

1,115.2

1.8%

Variable contribution

507.3

495.9

2.3%

Operating expenses

(241.3)

(234.6)

2.9%

EBITDA before significant items

266.0

261.3

1.8%

D&A

(89.5)

(84.2)

6.3%

EBIT before significant items

176.5

177.1

(0.3%)

Interest

(34.7)

(40.2)

(13.7%)

Tax expense

(44.3)

(46.0)

(3.7%)

NPAT before significant items

97.5

90.9

7.3%

Significant items (after tax)

(15.6)

31.5

(149.5%)

Business results

Note: Business results do not aggregate to Group total due to unallocated expenses of $2.4m (1H15: $0.9m), largely related to merger discussions with Tatts

Wagering Change Gaming Change Change Change

$m & Media on pcp Services on pcp on pcp on pcp

Wagering & Media: KPIs

Notes: - Other turnover includes Oncourse, Premium Customers and PGI - Victorian revenue includes JV partner interest

 Business continues to invest in product and

technology, and remains well positioned as

market leader

 Active TAB account customers now

exceed 420,000, up 5%

 TAB Racing revenues continue to reflect

customer preferences shifting to Fixed

Odds, with yields maintained

 TAB Sports performance (excluding the

impacts of Soccer World Cup in the pcp):

 Turnover up 10.7%

 Revenue flat due to strong yield

performance in the pcp

 Media revenues reflect:

 Savings passed on to venues in

respect of Victorian thoroughbred

racing vision

 Offset by growth from international

vision and co-mingling

$m _{1H16 1H15 Change %}

Revenue by product

TAB Racing

- Totalisator _{638.5 663.3 (3.7%)}

- Fixed Odds _{256.8 214.7 19.6%}

Total TAB Racing _{895.3 878.0 2.0%}

TAB Sports _{98.6 107.3 (8.1%)} Trackside _{50.8 52.3 (2.9%)} Luxbet _{25.0 26.5 (5.7%)} Media _{85.8 86.3 (0.6%)} Turnover by distribution Retail _{3,388.4 3,438.2 (1.4%)} Digital _{1,926.0 1,763.1 9.2%} Call Centre _{265.7 286.2 (7.2%)} Other _{585.5 563.8 3.8%} Luxbet _{402.2 385.1 4.4%}

 Online betting on live sport is illegal. The Federal Government must act now to address operators

who continue to circumvent the law

 Market leading digital capability with continued expansion of in-house team – up 80% over the past 6

months

Ongoing initiatives to maintain market leadership

 Future Retail program leading to increased digital

integration in retail

 16 pilot sites currently live, with further sites to be

upgraded

 OneTab app (mobile bar tab service) to be launched

2H16

 Product enhancements continue to be launched

 Partial Cash Out product launched in January 2016

 Exclusive Australian agreement with Longitude LLC to

implement software that will deliver enhanced

pari-mutuel betting options (subject to regulatory approval)

 New online wagering and gaming business to be launched

with The Sun (owned by News UK) in 4Q16

 Tabcorp is establishing a local office in the UK,

Gaming Services: KPIs



Victoria



8,850 EGMs under contract. 85%

contracted through to 2022



Loyalty members up 21% to 412,000



New venues include Powell Hotel and

Jim Dandy Hotel



New South Wales



700 EGMs under contract, including

400 to commence billing in 4Q16

 New venues include Woodburn Evans

Head RSL, Woolgoolga Diggers, Club

Jervis Bay and Callala RSL Country

Club



Additional venues under negotiation



Regulatory approval received for the ACT

$m 1H16 1H15 Change

Revenues 52.9 50.7 4.3%

EBITDA 33.8 33.8 0.0%

Keno: KPIs

 Total network turnover up 6.0%

 Revenue performance



Vic up 15.8%



NSW up 8.6%



QLD up 2.2%, impacted by

favourable jackpot activity

 Brand transformation during 1H16 has

driven increased participation and

appeal

 Business performance improved

through jackpot initiatives



Jackpot pooling commenced

between NSW and Victoria



Queensland jackpot pooling

remains a priority for 2016

(subject to regulatory approval)

 Investment in enhanced customer

experience through 7 retail concept

venues

Avg ticket size ($) 11.6 11.1 4.5%

Capital expenditure and investments

Capex trend



FY16 D&A expected to be approximately $185m

reflecting increased investments in digital, product

and business expansion



FY16 capex expected to be up to $160m, including

growth capex for TGS and Sun Bets



Wagering & Media



Digital strategy



Future Retail



Technology enhancements



Sun Bets



Gaming Services



EGMs



NSW expansion



Pre-commitment technology



Keno



Product expansion



Digital strategy



Rebranded venue fit-out

Major capex projects

1H15 2H15 1H16

Keno Gaming Services Wagering & Media

69

74

84 127 250 400 150 400 0 100 200 300 400 500

FY16 FY17 FY18 FY19 FY20 FY21 FY22

$m

Bank facilities

Tabcorp Subordinated notes US Private Placement

Key capital features



Undrawn bank facilities of $445m at 31 December 2015



Gross debt / EBITDA

_{of 1.9x}



Debt Structure

Notes: 1 Tabcorp Subordinated Notes mature in March 2037, however illustrated above at first call date in 2017

2 Gross debt includes USPP debt at the A$ principal repayable under cross currency swaps and EBITDA is before significant items

Conclusion

 Progress on the strategic agenda during the half

 ACTTAB integration successfully completed

 Victorian thoroughbred media rights secured

 New online wagering and gaming business, Sun Bets, to be launched in the UK in 4Q16

 Keno transformation on track

 Gaming Services expanded venue footprint

 Business well positioned for 2H16

 Wagering & Media – further Future Retail pilot rollout, product innovation and launch of Sun Bets

 Gaming Services – driving venue performance and continued expansion

 Keno – jackpot pooling in Queensland and implementation of digital strategy

 Continued focus on delivering returns for shareholders

 Interim dividend 12.0 cents per share, fully franked, up 20.0%

 FY16 target dividend payout ratio of 90% of NPAT before significant items and amortisation of

Victorian Wagering and Betting Licence

 High Court judgement on claim against the State of Victoria expected 2H16

Appendices

1. Wagering & Media: Financial data

2. Wagering & Media: Revenues by state and product

3. Balance sheet

1. Wagering & Media: Financial data

$m 1H16 1H15 Change

Revenues 973.0 960.7 1.3%

Taxes, levies, commissions and fees (580.5) (572.6) 1.4%

Variable contribution 392.6 388.1 1.2% Operating expenses (195.8) (195.9) (0.1%) EBITDA 196.8 192.2 2.4% D&A (65.5) (61.5) 6.5% EBIT 131.3 130.7 0.5% Ratios 1H16 1H15 Change

Variable contribution / Revenue 40.3% 40.4% (0.1%)

Opex / Revenue 20.1% 20.4% (0.3%)

EBIT / Revenue 13.5% 13.6% (0.1%)

Returns to the Racing Industry 1H16 1H15 Change

Victoria 178.6 187.2 (4.6%)

New South Wales 150.0 137.9 8.8%

Race Field Fees 49.7 48.4 2.7%

Media & International 35.1 37.0 (5.1%)

2. Wagering & Media: Revenues by state and product

Notes: - NSW and ACT represents 100% of revenue

- Vic includes Tabcorp’s 50% proportional share of the JV - ACT prior period includes operations from 14 October 2014

NSW Change Vic Change ACT Change Total Change

3. Balance Sheet

Notes 1 Debt includes USPP debt at the A$ principal repayable under cross currency swaps

2 EBITDA, EBIT and net interest are last 12 months (continuing operations and excluding significant items). EBIT excludes amortisation of the Victorian Wagering and Betting Licence 3 Gross debt excludes subordinated notes, then divided by two

4 EBITDA (including significant items) and net interest are last 6 months. Net interest excludes interest on subordinated notes

$m

Dec 15

Jun 15

Change

Total current assets

199.4

296.2

(32.7%)

Licences

678.8

700.9

(3.2%)

Other intangible assets

1,928.1

1,924.7

0.2%

Property, plant and equipment

312.0

325.1

(4.0%)

Other non current assets

159.1

137.1

16.0%

Total assets

3,277.4

3,384.0

(3.2%)

Total liabilities

1,579.9

1,693.9

(6.7%)

Shareholders’ funds

1,697.5

1,690.1

0.4%

Net debt (reported)

933.1

987.7

(5.5%)

Net debt (economic)

841.4

912.8

(7.8%)

Shares on issue (m)

831.5

829.4

0.3%

Ratios

Gross debt / EBITDA (x)

1.9

2.1

EBIT / Net interest (x)

4.8

4.7

Subordinated notes ratios

Gross debt / EBITDA (x)

1.6

1.8

4. Cashflow

Note: Health Benefit Levy relates to discontinued operations, refer to 1 July and 28 July 2014 ASX releases

$m

1H16

1H15

Change

Net operating flows

228.1

268.8

(15.1%)

Net interest payments

(34.1)

(40.6)

(16.0%)

Income tax paid

32.8

(29.5)

(>100%)

Payments for PP&E and intangibles

(73.2)

(76.7)

(4.6%)

Sub-total

153.6

122.0

25.9%

Ordinary dividends paid

(73.5)

(51.3)

43.3%

Health Benefit Levy

-

(32.9)

(100.0%)

ACTTAB acquisition

-

(103.3)

(100.0%)

Others

(7.3)

(4.2)

73.8%

Net cash flow

72.8

(69.7)

(>100%)

Net debt at beginning of period

987.7

967.5

2.1%

Non cash movements

18.2

37.5

(51.5%)

Disclaimer

This Presentation contains summary information about the current activities of Tabcorp Holdings Limited (Tabcorp) and its subsidiaries (Tabcorp Group). It should be read in conjunction with the Tabcorp Group’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au.

No member of the Tabcorp Group gives any warranties in relation to the statements or information contained in this Presentation. The information contained in this Presentation is of a general nature and has been prepared by Tabcorp in good faith and with due care but no representation or warranty, express or implied, is provided in relation to the accuracy or completeness of the information.

This Presentation is for information purposes only and is not a prospectus, product disclosure statement or other disclosure or offering document under Australian or any other law. This Presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither this Presentation nor anything contained in it shall form the basis of any contract or commitment.

This Presentation is not a recommendation to acquire Tabcorp shares. The information provided in this Presentation is not financial product advice and has been prepared without taking into account any recipient's investment objectives, financial circumstances or particular needs, and should not be considered to be comprehensive or to comprise all the information which recipients may require in order to make an investment decision regarding Tabcorp shares.

All dollar values are in Australian dollars (A$) unless otherwise stated.