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Annual Report 2015

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Annual Report 2015 annual report 2015 1 victoria racing club 2 board of directors 4 our results 5 chairman and chief executive’s report 5 the year in review 8 racing highlights 12 2014 melbourne cup carnival economic impact 12 2015 flemington festival of racing 12 membership breakdown 13 racing rewards 13 masterplan 13 digital and technology 13 media rights 16 carnival advertising campaign 16 awards 16 vale Bart Cummings AM 16 acknowledgements 17 partnerships 18 VRC in the community 20 executive management 21 risk and corporate governance 23 financial statements victoria racing club vision Flemington is a world leader in thoroughbred racing, event management and entertainment values The day-to-day activities of VRC employees are underpinned by the following values: Integrity Acting with integrity in all that we do. Innovation Encouraging and embracing innovation to achieve continuous improvement. Excellence Setting the highest standards in service and value for our Members, customers and business partners. Collaboration Valuing and respecting the commitment and contribution of all of our people and expecting collaboration across our teams. Safety and Sustainability Providing a safe and environmentally friendly workplace and venue for people, customers and industry participants. ANNUAL REPORT 2015 — 1 board of directors Michael Burn Date joined Committee/Board Racing interests and memberships Chairman, Remuneration Committee November 2003 Racehorse owner (Chair), member of the Audit Occupation and business interests Interests outside of racing and Risk Management Committee Executive Director Macquarie Family, golf and snow skiing and Masterplan Committee Capital, Director of various Bachelor of Commerce, Macquarie Group Subsidiaries, University of Melbourne Member of Council Loreto Mandeville Hall Amanda Elliott Date joined Committee/Board Racing interests and memberships Vice Chairman, Chairman July 2002 Part-owner of seven racehorses, Design Committee for Club Occupation and business interests in Australia and UK Stand, Disciplinary Committee Director Chatswood Park Interests outside of racing (Chair), member of the Pty Ltd (pastoral and family Family and friends, tennis, Masterplan Committee and investment company) most sports, interior design Remuneration Committee and architecture, fashion, Bachelor of Arts (Hons), film and gardens University of Melbourne John O’Rourke Date joined Committee/Board Racing interests and memberships Honorary Treasurer, December 2011 Racehorse owner, member Audit and Risk Management Occupation and business interests Melbourne Racing Club and Committee (Chair), Masterplan Director Plenary Group Pty Ltd, Moonee Valley Racing Club Committee (Chair) and member Plenary Research Holdings Pty Ltd, Interests outside of racing of the Remuneration Committee Plenary Health Holdings Golf, Richmond Football Club Bachelor of Commerce, University (Comprehensive Cancer Centre) of Melbourne; Graduate Diploma Pty Ltd, Plenary Conventions Pty Ltd, in Finance, RMIT Flagship Property Holdings Pty Ltd Peter Fekete Date joined Committee/Board Racing interests and memberships Member of the Audit and July 2000 Racehorse owner, member Risk Management Committee, Occupation and business interests Melbourne Racing Club and Masterplan Committee and Director of a number of non-listed Moonee Valley Racing Club Chairman Thoroughbred Racing investment companies. Member Interests outside of racing Productions (VIC) Pty Ltd, Director of the Finance Investment and Skiing and football ThoroughVisioN Pty Ltd Risk Committee for the National Bachelor of Business (Accounting), Stroke Foundation Swinburne University; Fellow of the Institute of Chartered Accountants Australia (FCA) Paul Leeds Date joined Committee/Board Racing interests and memberships Director Radio 3UZ Pty Ltd and April 2002 Racehorse owner and breeder, 3UZ Pty Ltd Occupation and business interests member Melbourne Racing Club Associate Fellow of Australian Vice President National Stroke Interests outside of racing Institute of Management Foundation, Director Collingwood Family, art, food, wine, travel, Football Club, Chairman Twenty3 collectables and football Sport+Entertainment, Chairman Australian Made Media, Advisory Board Menzies Art Brands 2 — VICTORIA RACING CLUB Katherine Bourke Date joined Committee/Board Racing interests and memberships Member of the July 2004 Racehorse owner and breeder, Disciplinary Committee Occupation and business interests member Melbourne Racing Club Bachelor of Laws, Master Judge of County Court of Victoria and Moonee Valley Racing Club of Laws and Bachelor of Arts, Interests outside of racing University of Melbourne Hawthorn Football Club, food, wine and travel Elisa Sturzaker Robinson Date joined Committee/Board Racing interests and memberships Member of the May 2011 Racehorse owner and breeder Masterplan Committee Occupation and business interests Interests outside of racing Bachelor of Laws and Bachelor General Manager – Industry Geelong Football Club, Kooyong of Commerce, Monash University; Management at nbn (National Lawn Tennis Club, property admitted to the Supreme Court Broadband Network), speaking development, travel, food and wine, of Victoria; completing Masters engagements on diversity art, design, fashion, sports, including of Business Administration, and women in leadership, skiing, running and spending Melbourne Business School business and sport time with my husband and sons Michael Ramsden Date joined Committee/Board Racing interests and memberships Member of the Audit and Risk December 2012 Part owner of approximately Management Committee Occupation and business interests 45 horses, including The Offer, Bachelor of Economics, Monash Managing Director Terrain Capital Chautauqua and Alaskan Rose, University, Bachelor of Laws, Ltd, Chairman Australian Mines Ltd, member Melbourne Racing Club, Monash University; Chairman Cremorne Capital Ltd, Moonee Valley Racing Club and France Galop Fellow of the Financial Services Chairman African Mahogany Institute of Australasia (Aust) Pty Ltd Interests outside of racing Golf, surfing, football, wine and food Neil Wilson Date joined Committee/Board Racing interests and memberships Bachelor of Business (Accounting) December 2012 Racehorse owner and breeder (MIS); Certified Practicing Occupation and business interests Interests outside of racing Accountant (CPA) Chief Executive Officer and Managing Family, running and travel Director Oakton Limited Simon Love Date joined Committee/Board Racing interests and memberships Chief Executive May 2015 Racehorse owner and breeder Bachelor of Business (Banking and Occupation and business interests Interests outside of racing Finance), Victoria University; Chief Executive Victoria Racing Club Travel, wine, hockey, golf Master of Business Administration, Swinburne University ANNUAL REPORT 2015 — 3 our results 2014/15 snapshot racing 14 11 19 31 group one races group two races group three races listed races 2014 melbourne cup carnival m 37 536 13 3.24 races were run horses participated, internationally home viewers tuned into with an average of trained runners the Channel 7 coverage 14.48 average during the Melbourne of the Emirates Melbourne runners per race Cup Carnival Cup in Australia total attendances total melbourne cup at VRC racedays carnival crowd 2014/15 result 2014 result 509,197 325,519 prizemoney net profit $ 2014/15 result 2014/15 result $37.9m m $10.7 including $7 million in VRC top-ups 2014 melbourne cup carnival economic impact support for the community $ 2014/15 result 2014/15 result m m $374.2 $1 in gross economic benefit to Victoria contributed to or raised by charitable causes through (Source: IER economic impact report) VRC fundraising partnerships and donations 4 — VICTORIA RACING CLUB chairman and chief executive’s report Michael Burn, Chairman and Simon Love, Chief Executive the year in review The Club also made further significant progress in relation to the ongoing upgrade of our IT platforms. We are confident 2014/15 proved to be another significant year for the that the substantial investment made across several Club and for the Victorian thoroughbred racing industry. years to upgrade our IT capability will deliver significant Pleasingly, both the Club and the industry continued benefits to the Club and our Members. to make sound progress in relation to important strategic goals. 2014/15 saw the sale of the Club’s interests in the Australian Stud Book (‘ASB’) and Australian Genetics Testing (‘AGT’). On the racing front, the year was once again highlighted These investments had been held by the Club over many by a successful Melbourne Cup Carnival. Protectionist’s decades and the Club is proud of the achievements of the ASB dominant win in the Emirates Melbourne Cup was one and AGT under joint VRC/Australian Turf Club stewardship. of many highlights throughout a Carnival that drew However, the sale of the ASB and AGT interests should allow strong overall crowds, extensive interstate and international for the next phase of growth of those businesses, as they are visitor numbers and exceptional local, interstate and to be operated alongside other data rich businesses owned international racing talent. on behalf of the Australian racing industry by Racing Australia. International participation also continued to grow through The Club achieved a net profit of $10.7 million in 2014/15. the Flemington Festival of Racing in March as Flemington This was an increase of $7.3 million on the $3.4 million welcomed back UK trained globetrotter Red
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