New AnnualReportA/W26/11/0310:18amPage1 This mission givesexpression tothevaluesandsense ofpurposetheorganisation. cultural andsocialenvironment ofthecountry. the strategiespursuedto achievethemissionwillbereflected intheeconomic, The claimtobeaworld centre ofexcellence isarealistic oneandthebenefitsof is thekeyelementofPlan. todevelopstrategiesachievethemission The continuityoffundingnecessary tothe racegoingpublic. industries andthequalityofproductbeing offered emphasis onIreland’s horseracingand breeding positioninboththeinternational In identifyingitsmissionforthenextfiveyears, HorseRacingIreland (HRI)hasplaced To Mission Statement

develop andpromoteIreland asaworldcentre ofexcellenceforhorseracingand breeding. “... Andthey’re off!”

HORSE RACING Annual Report 2002 New AnnualReportA/W26/11/0310:18amPage2 2 IRELAND Annual Report 2002 Brian Kavanagh Chief ExecutiveOfficer Representative Body Racing Regulatory Roy Craigie Racehorse Breeders Representative Cantillon Dermot in theHorseRacingIndustry Representative ofPersonsEmployed Ministerial Appointee– Eddie Browne MinisterialAppointee Chairman, Denis Brosnan Joe Osborne James Kelly Brian Kavanagh T Jim Gorman T Joe Foley John Clarke Cantillon Dermot John Kidd Marketing Limited Irish Subsidiary Boards Main Board Members ofBoards&Committees-2002 Board Members&CEOofHRI om Hogan om Gaffney Pierce Molony Pierce Chairman Dermot Cantillon Dermot Northern Ireland Northern in Horse RacingIndustry Representative ofPersonsinthe Ministerial Appointee– John Kidd Racehorse Trainers Representative Representative Body Racing Regulatory W Racecourses Representative Desmond Jerry Matt O’Dwyer John Kidd Brian Kavanagh Raymond Horan W Navan GolfClubplc Paddy Waldron Paul Tansey Eamon McElroy Brian Kavanagh Michael Dowling Alan Byrne Cantillon Dermot T ote IrelandLimited illiam Flood illiam Flood Chairman Chairman Jerry Desmond Jerry Representative Authorised Bookmakers Seamus Mulvaney Representative Body Racing Regulatory Molony Pierce Racehorse OwnersRepresentative Peter McCarthy Racing Industry Employed Directly InTheHorse Representative OfPersons Ministerial Appointee– Dan Kirwan Dan Kirwan University EquineInstitute, International Peter McCarthy Jessica Harrington Gowran ParkRacecourse John Kidd Racecourse Fairyhouse Michael Lane Davin Margaret Cilcoone Limited HRI AppointeestoOtherBoards Michael Osborne Dan Kirwan (not pictured) Representative Body Racing Regulatory Retired 18December2002 Va Representative Body Racing Regulatory V Ray Rooney Representative Body Racing Regulatory Michael Osborne Dan Kirwan Davin Margaret RACE Bob Lanigan Desmond Jerry Michael Osborne Peter McCarthy Brian Kavanagh Irish EquineFoundation ice-Chairman lerie Cooper V Ray Rooney ice-Chairman New AnnualReportA/W26/11/0310:18amPage3 Chairman Denis Brosnan Brian Kavanagh Michael Osborne Ray Rooney Denis Brosnan in theStrategicPlan. advancements oftheobjectivesassetout accounting mattersonthe r Assists andadvisestheBoard in Finance Committee Brian Kavanagh Raymond Horan Roy Craigie Eddie Browne r amended bysubsequentactswith Act,1994andas Horseracing Industry and compliancewiththeIrish operations ofauthorisedBookmakers in mattersrelating tothecontrolof outthefunctionsofBoardCarries Bookmakers Committee Roy Craigie Eddie Browne Molony Pierce matters. control andinternal governance Assists andadvisestheBoard on Audit Committee HRI BoardCommitteesasat31stDecember2002 elation toallfinancialand egard toBookmakersandBetting. Chairman Chairman Chairman John Kidd Roy Craigie Pierce Molony Pierce Peter McCarthy Desmond Jerry And Greyhound RacingAct,2001. accordance withSection 10oftheHorse Negotiation ofmediarightsmattersin Media RightsCommittee Tim O’Regan Eimear Mulhern Edmund Loder John Kidd Iceton Derek W Cantillon Dermot Peter McCarthy Foal LevyScheme. to theoperationofThoroughbred Advises theBoard onmatterspertinent Foal LevyCommittee Michael Osborne Seamus Mulvaney John Moloney Peter McCarthy Jessica Harrington Desmond Jerry Roy Craigie fixing oftheannuallistracefixtures. of reference decided bytheBoard the r Act,1994.It Horseracing Industry established undersection19oftheIrish The RaceFixtures Committeewas Fixtures Committee ecommends inaccordance with theterms illiam Flood Chairman Chairman Chairman W illiam Flood Ray Rooney Denis Brosnan Racing Act. provisions oftheHorseandGreyhound policy, statesectorguidelinesandthe ensuring compliancewithGovernment re Assists theBoard inmattersrelating to HR Committee Remuneration and LifePresident Honorary Denis McCarthy Frank Ward O’Donoghue Breege Philip Myerscough James Meagher Dave McGrath Liam Madden Brian Kavanagh Jessica Harrington Jimmy Farrelly Eddie Browne Racecourse. management anddevelopmentof Assists andadvisestheBoard onthe Leopardstown Committee muneration ofseniorexecutivesand Jessica Harrington Chairman Chairman Eddie Browne Michael Osborne Seamus Mulvaney Peter McCarthy Jessica Harrington Desmond Jerry Cantillon Dermot Roy Craigie race fixtures. Act, 1994theraceprogrammesforall 20 oftheIrishHorseracingIndustry inaccordanceDetermines withsection Programmes Committee LifePresident Honorary Joe O’Sullivan LifePresident Honorary Michael McEvoy Jimmy Owens Noel Meade John McCabe Liam Madden Dan Kirwan Gina Galvin W Eddie Campbell Finbar Cahill Donal Matthews Roy Craigie . management anddevelopmentof Assists andadvisestheBoard onthe Navan Committee illiam Flood Seamus Mulvaney Chairman Chairman V ice-Chairman Peter McCarthy 3 Annual Report 2002 New AnnualReportA/W26/11/0310:18amPage4 4 HORSE RACING IRELAND Annual Report 2002 transferred to Horse Racing Ireland on1stMay toHorseRacingIreland transferred administration activitiesofthe Turf Clubwere andmanyoftheracing toKildare relocate Ireland ofHorseRacing 2002 sawtheheadquarters and thesizeofhorsepopulation. tostablestaff issuesrelating prioritiesasare are industry. Facilitiesatracecoursesandprizemoney will beofsignificanteconomicbenefittothe plan wewillcontinuetoimplementpolicieswhich published inearly2003andoverthelifeofthis StrategicPlanfor2003-2007, Horse RacingIreland on thefinalisationofstrategiestobeincludedin 2002 sawthecompletionofaconsultativeprocess Strategic Plan Cheltenham, ourhighestnumberineightyears. and ofcoursethefiveIrishtrainedwinnersat andRockofGibraltarforAidanO’Brien Chaparral Puzzle, theexploitsathighestlevelofHigh withMedia Weld’sDermot Cupvictory Melbourne 1races.Theracinghighlightswere 12 Group racesintheUK,including won 22Group/Graded their owners,trainersandjockeysIrishbreds yearfor awonderful Irish trainedhorsesprovided The SuccessofIrishHorsesAbroad their investmentinthesport. asownersincreased of horsesintrainingalsorose trackandthenumber significantlyoff increased Totaland salesallcontinuedtobestrong. betting of betting,attendance,prizemoney, sponsorship cancelled. Despitethis,thekeyracingindicators 38 ofthe284scheduledmeetingshavingtobe challengedbyweatherwith year inwhichwewere changeswithintheorganisation. Itwasalsoa staff andmanyexecutive racing withanewBoard In manywaysitwasayearofconsolidationforIrish RacingActinJune2001. Horse andGreyhound followingtheenactmentof Racing Ireland 2002 wasthefirstfullyearofoperationforHorse Chairman’s Statement Chairman Denis Brosnan a worldclassindustry. maintainsandenhances itsstatusas breeding thatIrishracingand by continuingtoensure anditssubsidiaries. Racing Ireland operating orinastageofcompletionHorse allnow are Conduct forBusinessDirectors Conduct forEmployeesandCodeofBusiness Auditfunction,theCodeof up oftheInternal thesetting FinancialControl, Systems ofInternal under theabovecodesuchasStatementon ofStateBodies2001.Keyrequirements Governance and hasembracedtheCodeofPracticefor ofCorporateGovernance the higheststandards iscommittedtomaintaining Horse RacingIreland Corporate Governance Chairman Denis Brosnan We racingindustries. the horseracingandgreyhound supported TD, MinisterforFinance,hastirelessly and Tourism whotogetherwithCharlieMcCreevy, Sport John O’Donoghue,TD,MinisterforArts, thanksto Finally Iwouldliketopayparticular dedication andprofessionalism. andsubsidiariesfortheir Horse RacingIreland at and hisexecutiveteamtogetherwiththestaff during2002,andtoBrianKavanagh Racing Ireland andCommitteesofthesubsidiariesHorse Boards onthevarious colleagues andthosewhoserved thankallofmyBoard I wouldliketosincerely Acknowledgement the future ofIrishracing. the future administrationfor andefficient streamlined create withintheperiodofplanwhichshould as oneuntilthefinalbuildingiscompletenear sectionsoftheorganisation operate the different willenable headquarters 2002. Thistemporary

are determined to reciprocate yourconfidence toreciprocate determined are New AnnualReportA/W26/11/0310:18amPage5 5 HORSE RACING IRELAND Annual Report 2002 New Annual Report A/W 26/11/03 10:19 am Page 6

Chief Executive’s Report

Brian Kavanagh Chief Executive Officer

Despite the cancellation of many race-meetings due 2002 was the first year of the Euro and evidence to the exceptionally wet weather, with a knock-on from the racetracks indicates that betting affect on attendances, there were many significant denominations remained the same despite the

2002 advances in the development of Irish racing in 2002 change in currency value. This affected betting and many reasons to celebrate the achievements turnover, which was down by 3% from €215m of Irish trainers, jockeys and horses at home to €208m. On-course SP shops, however, and overseas. performed well with a 4.2% increase to €7.4m. € Annual Report There was a total of 279 fixtures held in 2002, Tote betting increased from 36m in 2001 to an increase of 11 on 2001. An unprecedented €38.8m in 2002 (7.7%). This includes revenue 38 fixtures were cancelled, although with 33 from the newly introduced betting into UK re-scheduled just 5 were completely lost. The Tote pools. In the home market alone, the Tote increase year-on-year was 4%. number of races run was 1,994, up from 1,935 in 2001. Attendances were slightly down on 2001 at 1,286,914 - a drop of 9,516. The average Prize money reached a record level of €46.3m, HORSE RACING IRELAND attendance per meeting was 4,988 against an increase of €4m, (9.4%), over 2001. National the previous year’s 5,124. Hunt Prize money, including Point-to-Points, increased by 10.7% and Flat Prize money by The average number of horses in training 8.3%. Sponsorship increased by €340k to a increased to an all time high of 5,469 while the total of €6.5m, which was 5.6% up on 2001. new owner registrations rose by 4% to 817. Sales This increase was particularly pleasing considering of at Goffs and Tattersalls Ireland the competitive marketplace and the increasingly increased by 3.2% to €112.3m. difficult economic circumstances. Interest in race The integration of the former Registry sponsorship opportunities remains strong and we Office into Horse Racing Ireland on the 1st of May look forward to further growth in this area in 2003. was carried out smoothly and efficiently, ensuring 6 New AnnualReportA/W26/11/0310:19amPage7 for over thirty years. for overthirty ofMillReef,whichhadstood surpassing therecord 1victories, seven consecutiveGroup unprecedented totaltoan hiscareer victories in2002brought 1 Irish horses.RockofGibraltar’sfiveGroup yearfor highlight ofyetanotherrecord-breaking CupinNovember wastheracing in theMelbourne places inclaiming thefirstandfourth performance Weld’s 1races.Dermot 12 Group training or GradedracesintheUK2002,including Irish trainedhorseswonatotalof22Group in whichtoownandtrainracehorses. oneofthemostattractivecountries remains Ireland will bringthetotalfundto additional PrizemoneyforPoint-to-Pointfixtures, by7.7%for2003andtogetherwiththe increase over thelastfiveyears.Prizemoneyisdueto ontheinvestmentmade seeareturn of theindustry to continuingdevelopment,ensuringthatallsectors andwelook forward racingindustry thoroughbred of thefiveyearStrategicPlanforIrish of2003hasseenthe publication The firstquarter involved. tothestaff is acredit which ofservice a seamlessandcontinueddelivery € 50m, ensuringthat Tu Cup againsthiseldersintheBreeders Chaparral ofdualDerbywinnerHigh The performance 2002, the average value of races in Ireland at 2002, theaveragevalueofraces inIreland favourably withothermajor racingnations.In inIrishracingcompares prize moneyonoffer thatthelevelof and HRIconsidersitimportant activity muchaninternational Racing isnowvery Label IrishGrandNationalatFairyhouse. followed byhistriumphinthePowersGold Grand NationalatUttoxeter, whichwasthen included TheBunnyBoiler’swinintheMidlands Othernotablevictoriesgainedin2002 & Ireland. Pearl wasthehighestratedchaserinbothUK Tr Moscow FlyertooktheIrishIndependentArkle highest numberineightyears.JessicaHarrington’s -the winners attheCheltenhamFestivalinMarch Over obstacles,Irishtrainersaccountedforfive at HollywoodPark. Stakes 1Matriarch toThrillintheGroup filly Dress as wastheend-of-seasonwinforWeld-trained in Britain,France,UnitedStates andAustralia. € 22,843 exceeded the corresponding figures figures 22,843 exceededthecorresponding ophy, MullinstrainedFlorida whiletheWillie rf

in Chicago was one of the great moments, in Chicagowasoneofthegreat

7 HORSE RACING IRELAND Annual Report 2002 New Annual Report A/W 26/11/03 10:19 am Page 8

Chief Executive’s Report

The contribution to prize money in 2002 by Horse 2002 saw the launch of a significant level of Racing Ireland was €24.843m (excluding point to co-mingling into non Irish race meetings. The total point) which represented 54.5% of the total prize number of meetings co-mingled into was 207. The fund. Sponsorship was €6.45m as opposed to amount traded was €1.278m against zero in 2001. €6.11m the previous year. The Irish European Co-mingling inwards continued to grow with an Breeders Fund continues to be the most significant increase of 21% to €172k in 2002. Both of these sponsor, and contributed €1.27m in 2002, a areas are expected to continue to grow in 2003. notable increase from €1.08m the previous year. The win and place pool continued to be strong performers representing 76% of the total bet with Thoroughbred Foal Levy Scheme the exotic products together now representing 24%. 2002 was the third year of the Foal Levy scheme Some new records were set in 2002 with Tote in and income for the period was €1.3m against Galway on 1st August 2002 achieving its highest €1.1m the previous year. Over 5,000 breeders paid ever figure of €1.549m. Ballinrobe, which the levy in respect of the 10,214 foals which were benefited from a significant new development, born in the year. In accordance with the legislation, reached a single day record Tote turnover of the proceeds of the levy were used for the benefit €151k, Fairyhouse €562k and Killarney €153k. of the infrastructure of the breeding sector and the Horse Racing Ireland Foal Levy Committee Tote continues to look forward to further co- recommended allocations for the following bodies: mingling into more UK fixtures and also extending Irish Equine Centre, Irish Thoroughbred Breeders its range of products into those meetings. We are 2002 Association, Irish Thoroughbred Marketing, in the process of piloting GPRS for hand held Breeders Prizes and Irish Farriery Authority. terminals in 2003 as well as working closely with our UK counterpart for other product Tote developments. The success of the GPRS testing

Annual Report Tote Ireland had a successful year again in is critical in the roll out of the total range of 2002. The turnover for the 12 month period Tote products into Bookmakers shops. was €38.8m, up on the 2001 calendar year by €2.7m. Leopardstown 2002 was another memorable year for racing at The turnover per the Income & Expenditure Leopardstown. Following the exciting dual between statement shows a growth higher than above and in the 2001 Ireland due to the fact that two Christmas festivals were HORSE RACING IRELAND The Food Island Champion Stakes, who could included. In 2002, a pilot scheme was run in have envisaged that the 2002 renewal would deliver Bookmakers shops to test how the Tote products another Ballydoyle/ battle with Grandera would perform. This pilot was run for 18 weeks. getting up in the last few strides to beat . The roll out was a complex one but a very successful one. Even though the target sales Back in April, in winning the were not fully , the communication , set out on the now familiar route, systems and the technology worked well. The capturing the Derrinstown Stud Derby Trial also support from the Bookmakers staff was very at Leopardstown before going on to win both strong and the way has now been set for the the English and Irish Derbies and the Breeders re-launch in the near future. Cup Turf. 8 New AnnualReportA/W26/11/0310:19amPage9 will becompletedinitsentirety. Whenthisis done, theMotorway Interchange. theCarrickmines regarding can bereached untilanagreement far sideofCarrickmines onthe andcontinuetheremainder Interchange totheLeopardstown to completetheroadway Rathdown CountyCouncilisthattheypropose However, DunLaoghaire theindicationfrom Interchange. castle wallsattheCarrickmines issueofthe duetotheconservation Motorway havebeendelaysinthecompletionof There racetrack. status asapremier itsinternational retains Leopardstown will ensure r sprint track,golfcourse,drivingrangeandaccess encompassed theupgradingofcarparks,stables, (M50).Theapplication Motorway Eastern oftheSouth a consequenceoftheencroachment r submission oftheplanningapplicationfor July2002sawthe On thedevelopmentfront, with theWorld Cupsoccer. large numberofcorporateguestsdespiteclashes successfulandcontinuedto attracta again very The eveningmeetingsduringthesummerwere stylebyBeeforSalmon. impressive the Festival,EricssonChase,waswonin of Diamond.Thefeature went toCoqHardi Novice ChasewhilethePaddyPower theDennyGoldMedal Le Coudraycaptured someexcellentracing. conditions, stillproduced byadverseweather disrupted unfortunately The ChristmasFestivalmeeting,whichwas Mullins trainedAdamantApproach. wenttotheWillie competitive PierseHurdle Thehighly ChampionHurdle. the AIGEurope Gold Cup,whileNedKellywasaneasywinnerof winneroftheHennessyCognac was animpressive On theNationalHuntscene,AlexanderBanquet oad from theMotorway.oad from Thismajordevelopment Racecourse, as edevelopment ofLeopardstown The the KilnaleckMaiden. FloridaCoastalsowon Grade 3NoviceHurdle. Nobber EBF On thesameday, wonthe ItsTime ForaWin waswonbyBannow Bay. inFebruary Hurdle Lismullen Hurdle, the Lismullen Hurdle, Scafhire ForAuctionNovice Hurdle. Scafhire whileNativeSparklewonthe for trainerMFMorris, race racedaywhenAlcaponetookthefeature The winterhighlightsincluded theMcCabeBuilders claiming the Philips Electronics claiming thePhilipsElectronics winstohiscollection, more andaddedthree turf Limestone LadcontinuedhissuccessovertheNavan over 61%ofracessponsored. with Sponsorship atNavancontinuedtogrow and theGiltspurScientific (a raceheldatNavantofacilitatePunchestown) ( par with2001bookmakerbettingat on for 2002were figures The bettingturnover overtheperiod1998-2002. 2001 and34%growth on anoverall11%growth in 2001)representing The attendancefortheyearwas46,900(42,230 wet period. inJulyduetoaparticularly in Junehadtoberun the winterandspringmonthsameetingscheduled 2002. Remarkablyhavingsuccessfullyracedduring A totalof16meetingstookplaceatNavanduring Navan ( more efficiently andwithfewercomplications. efficiently more carparks themtotherelevant enabling ustodirect totheracetrack will bringourcustomersnearer asit This willbegoodnewsforLeopardstown Solerina won the Barry &SandraKelly Solerina wontheBarry successwhen The Bowefamilyalsoenjoyedfurther € € 10.65m in2001). 9.5m in2001)andtheTote € 50,000 Grade2McCabeBuildersBoyne € 30,000 Chase. € 45,000 Grade2Morgiana € 20,000 Hurdle. 20,000 Hurdle. € € 10.41m 50,000 Grade2 € 50,000 € 9.25m 9 HORSE RACING IRELAND Annual Report 2002 New Annual Report A/W 26/11/03 10:19 am Page 10

Chief Executive’s Report

The flagship Pierse Troytown €65,000 Grade the private purchaser’s scheme grew by 73% from B Chase was won by Takagi for trainer Edward 38 in 2001 to 66 in 2002. This is a direct result O’Grady. O’Grady also won the Tote Ireland of ITM’s constant communication with various Monksfield Novice Hurdle for the third year key buyers particularly in the UK encouraging in succession, this time with Pizarro. them to buy in Ireland.

The Golf Course continues to mature and Finance membership at the year end was in excess of 450, including 51 new members recruited The financial information contained in the Group during the year. Income & Expenditure Account is for the period from the commencement of HRI, i.e. December Marketing 18th 2001 up to December 31st 2002. As a result of this, the trading results for two Christmas The HRI marketing strategy involved a concerted periods are included. These 2 periods, i.e. campaign to increase attendances and betting. December 2001 and December 2002 reflect for The objective was to project an image of a vibrant both Tote and Leopardstown significant activity. customer conscious industry widening the core group of racegoers in terms of age and gender. Since this is the first set of Financial Statements In 2002, a total of 1.3 million people attended of HRI, previous year information is not attached. race meetings in Ireland which showed a slight However, all the statistical information in the decrease of less than 1% from the previous year. report is compared on a calendar year basis.

2002 These figures were clearly affected by the adverse The group surplus for the period was €8.525m weather which led to a significant increase in the incorporating HRI, Tote, Racecourses and ITM. number of cancelled meetings. Tote Surplus for the period was €1.964m against €759k in 2001 period. The increase on a calendar ITM €

Annual Report year basis was over 700k due primarily to the The Irish thoroughbred has always been a much increase in turnover and reduced costs. The sought after commodity on racetracks and breeding reduction in costs was mainly attributable to farms the world over. It is little wonder therefore reduced marketing spend since the Tote logo that in 2002 no less than 27 Irish-bred horses won was fully rolled out in the previous year. The a total of 42 Group 1 races worldwide. From pilot cost of the roll out to Bookmakers retail California to Melbourne thoroughbreds such as outlets was €327k in the period. Golden Apples and Media Puzzle continued to HORSE RACING IRELAND Group turnover is up to €69.2m but the basis reinforce Ireland’s dominance within the world of changed since it is inclusive of the contribution thoroughbred racing. This success provided ITM to Prize money by the owners and sponsors since with the perfect vehicle to continue to promote 1st May 2002 at the date the functions of the Ireland as a source of quality thoroughbreds. Registry Office transferred to HRI. Tote turnover The number of overseas purchasers who availed on a 12 month comparison period was €38.812m of the flight reimbursement scheme rose by 7% against €36.079m, i.e. an increase of 7.5%. Registry from 914 in 2001 to 979 in 2002 representing Office income for the period is also contained in countries as diverse as Italy, Turkey, Germany, USA, the turnover and was €1.588m for the period. UK, Spain and France. Meanwhile those availing of 10 New AnnualReportA/W26/11/0310:19amPage11 contribution toPrizemoneyat additional pensioncontributionof was Capital DevelopmentGrantFundAmortisation work tobedone. healthandsafety toallownecessary particularly were were Administration costsofHorseRacingIreland to completetheirnewdevelopment. to RACEwhichalsoincludedsomeCapitalgrants their CapitalDevelopment,aswell r € of Bodiesin2002 Grants paidtootherIndustry commence in2003. new schemeannouncedintheStrategicPlan,will The been paidtoracecoursesforre-development. € RacingActwas the HorseandGreyhound RacingFundsetupunder Horse andGreyhound the Under OtherIncome,theallocationfrom grants saw a significant increase to grants sawasignificantincrease on acalendaryearbasis).Racecoursedevelopment topage16forthecomparison the period(refer their own promotional activity,their ownpromotional helpstoincrease as wellcontributionstoracecourses tosupport Racecourses. Thelaunchof a newTVadvert, inITMand contributions toprogrammes through industry the horseracingandbreeding HRI continuedin2002tocommitmarketing 1stMay2002. from Office of theRegistry costs alsoincludestherunning The periodcovered oftheDefinedBenefitScheme. due toareview and Group Expenditure was Expenditure Group year ofthefund. scheme isnowclosedandintotal in1997.This ontheschemestarted amortisation elated toanadditionalleveloffundingcomplete 1.993m paid to the Irish Equine Centre which 1.993m paidtotheIrishEquineCentre 56.146m ofwhich € € € 2.596m as reflected innote10,included 2.596m asreflected € 8.576m in 2002 which reflects theaccelerated 8.576m in2002whichreflects 54.453m to2002.Thiswasthesecond 4.016m fortheperiodwhichincludedan € 1.693m refers to2001 1.693m refers € 55.982m withthe € 26.528m for € € € 44.143m has 2.083m 1.130m made € 444k paid Brian Kavanagh in thefuture. withthemfortheindustry relationship harmonious toacontinued and Tourism andlookforward Sport ofArts, in ournewsponsoringDepartment bytheofficials Julyonwards the contributionfrom of2002and Rural Developmentintheearlierpart Foodand ofAgriculture, made bytheDepartment gratefully acknowledgethecontributionwhichwas their contributionduringtheyear. Iwishto for Executives ofvariousBodiesintheindustry I wouldalsoliketothanktheMembersand subsidiaries fortheirongoingguidanceonpolicy. and CommitteeMembersofthenewbody Members Board My thankstotheChairman, level ofsuccess. bringing Irishracingtoitscurrent well andthankthemfortheircontributionin whodidnottransfer, Iwish them For thosestaff theorganisation aswemoveforward. strengthen to and skills.Thecombinationofbothpromises whohavejoinedbringnewideas and newstaff with themawealthofknowledgeandexpertise, totheneworganisation bring whotransferred Staff i.e. Tote, HRIRacecoursesandITM. I alsothankthesubsidiariesfortheircontribution satisfying firstyearoftheneworganisation. timeforwhatwasachallenging but and part bothfulltime management colleagues,allstaff In conclusion,Iwouldliketothankmy Acknowledgement Chief ExecutiveOfficer undertaken byHorseRacingIreland. undertaken as wellgeneralmarketingandpromotions contributions to ITM from the industry of theindustry contributions toITMfrom through industry. supported Suchinitiativeswere and encourageownerstocontinueinvestinginthe internationally tothefore Irish Thoroughbred ofIrishracingaswelltokeepthe the profile € 632k 11 HORSE RACING IRELAND Annual Report 2002 New Annual Report A/W 26/11/03 10:19 am Page 12

Industry Statistics

FIXTURES ANALYSIS

Yearly Monthly Daily

Fixtures Fixtures Fixtures Races 2002 2001 2000 2002 2001 2000

1998 258 1,819 January 17 14 17 Sunday 68 53 60

1999 264 1,866 February 9 11 12 Monday 17 20 21

2000 270 1,919 March 21 015Tuesday 18 17 19

2001 268 1,935 April 21 20 18 Wednesday 36 38 33

2002 279 1,994 May 26 36 33 Thursday 40 38 34

June 25 34 29 Friday 28 34 33

July 31 33 30 Saturday 55 55 56

August 35 34 36 Bank Holiday 17 13 14

September 31 25 25 Total 279 268 270

October 24 25 24

November 15 19 16

December 24 17 15

Total 279 268 270

Total includes 21 meetings held in Northern Ireland (2001 - 15). 2002

HORSES IN TRAINING BREEDING AND SALES Annual Report Average Average Average 2002 2001 2000 Breeding 2002 2001 2000

Two year olds 516 447 449 Thoroughbred Stallions 356 349 347

Three year olds 590 552 563 Thoroughbred Mares 16,467 15,503 14,655

Four year olds 709 635 568 Thoroughbred Foals 10,214 9,452 8,793 HORSE RACING IRELAND Five year olds 1,038 1,003 941 Sales Six year olds and up 2,616 2,471 2,255 2002 2001 2000

Total 5,469 5,108 4,776 Catalogued 10,802 9,794 8,865 Offered 8,909 8,189 7,408

Sold 6,404 6,241 5,870

Aggregate €’000 112,333 108,834 119,034

Average € 17,541 17,439 20,278 12 New AnnualReportA/W26/11/0310:19amPage13 oigigOt13100 ,0,0 ------92,159 203,608 143,314 15 199,986 50 - 23 172,065 4,884,519 632,419 1,946,938 40 536,646 - 148,120 253,054 67,917 203,196 1,301,000 636,152 8,432,576 25,966,960 15 1,301,000 13,781,639 439,225 T 353,810 6,069,274 2,418,832 5,084,505 3,717,736 Comingling Out 34,236,226 21,434,045 11,631,947 182,686 68 18,239,217 Point toPoints 4,590,157 159,107 2,075,087 Bank Holiday 27,099,579 7,976,256 556,558 Saturday Friday 1,935,889 46,200,870 Thursday 10,253,938 10,699,023 59,531,538 W 1,286,914 1,296,430 T 1,354,073 Monday 258 253 1,309,411 Sunday 252 1,218,953 7,491 245 7,114 239 5,973 2,323 2,171 2002 On-CourseBettingAnalysis 4,755 1,971 3,766 159,768 1,342 169,651 1,930 162,147 38,811 131,377 36,080 Off-Course Betting(ExclusiveofDuty) 208,392 111,418 35,535 215,016 32,037 2002 205,625 30,092 2001 169,511 2000 147,206 1999 1998 Betting On-Course1998-2002 BETTING Ye edy1,4,1 ,4,3 20686126832211 93,864 17 392,271 122,688 12,086,826 3,346,631 15,948,416 uesday tl2832443,1,5 5,6,0 ,2,9 ,9,9 5 1,286,914 258 7,491,296 2,322,796 159,767,509 38,810,853 208,392,454 otal dedy2,6,8 ,3,1 903882082109073 160,177 30 1,089,097 240,862 19,003,818 4,732,311 25,066,088 ednesday rTtlTtlsrBomkr okaesSo itrsAttendances Fixtures Shop Bookmakers Bookmakers Totaliser Total ar 1,569 € 2002 ’000 € m T tlTtlsrBomkr okaesSo itrsAttendances Fixtures Shop Bookmakers Bookmakers Totaliser otal ,5 ,7 2 662 927 1,177 1,359 € 0120 991998 1999 2000 2001 €€€€€€ € ’000 m € m oeAa etn Annual Betting Home Away € ’000 oeAa etn Annual Betting Home Away € m € ’000 € m € ’000 13 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage14 14 HORSE RACING IRELAND Annual Report 2002 ok19 12 3 6 Clonmel Bellewstown BETTING BYRACECOURSE Industry Statistics oigigot- T 97 279 Comingling out 9 Point to Sub Total 12 Downpatrick Down Royal W 12 T 4 T T 5 Thurles 16 Sligo 16 12 Roscommon 9 Punchestown Navan 15 Naas - Listowel 21 7 Limerick Leopardstown 6 Laytown 11 Killarney 13 Kilbeggan 18 - Gowran Park Galway 19 Fairyhouse Dundalk Curragh tl376 otal aoe9 7 ramore ralee peay9 ipperary xod9 exford 2002 itrsTt etn BookmakerBetting2002 Tote Betting Fixtures 2001 315 268 11 11 14 14 23 12 12 21 18 17 11 47 10 7 8 8 7 6 9 6 9 4 1 7 6 6 3 7 - 38,810,855 37,509,855 7,308,630 2,618,163 4,503,311 1,397,721 1,301,000 3,771,441 1,157,684 1,025,122 2,144,309 1,313,375 5,414,022 636,556 896,562 517,884 325,907 604,262 469,556 629,456 696,661 419,297 403,676 235,871 361,912 658,477 2002 - - 4,884,519 - - - 199,986 5,084,505 - 36,079,502 36,079,502 7,677,497 2,834,741 4,007,730 1,160,744 1,133,985 1,231,445 2,172,363 6,478,327 755,155 939,115 312,268 - - - - 556,101 405,789 608,479 456,458 671,863 662,361 489,961 350,227 405,482 730,553 606,723 751,060 631,636 49,439 2001 - - - 5,6,0 ,2,9 7,491,300 169,581,605 159,767,509 2,322,796 7,491,300 164,497,100 154,882,990 2,122,810 16,562,060 90,768 830,649 17,483,477 11,993,628 29,711 680,859 12,704,198 15,305,288 19,735 798,485 16,123,508 14,222,338 38,078 996,715 15,257,131 18,496,071 149,877 1,365,734 20,011,682 ,5,4 573 - 3,691,238 3,655,445 35,793 6,741,450 28,982 289,762 7,060,194 4,090,288 - 6,481,319 577,307 5,775,239 128,773 2,326,020 - 1,622,734 3,850,001 240,287 - 1,588,972 33,762 2,270,762 55,258 2,813,098 117,102 - 2,930,200 - 3,553,575 - 2,813,098 117,102 - 3,653,514 3,447,255 106,320 3,562,853 90,661 65,308 3,874,077 61,182 4,000,567 - 1,417,776 5,407,471 55,293 129,177 5,591,941 - 2,336,363 1,362,070 55,706 2,274,421 61,942 8,691,293 86,227 477,762 9,255,282 6,584,372 4,590 303,794 9,416,496 470,725 6,892,756 8,738,583 207,188 5,799,167 505,023 5,046,740 247,404 2,797,674 - 2,619,503 178,171 oeAa PSo Total SPShop Away Home ------New AnnualReportA/W26/11/0310:19amPage15 6,5,2 ,7,9 7,114,241 178,936,461 169,650,927 2,171,293 7,114,241 175,798,199 166,842,981 1,840,977 23,352,129 50,577 1,832,791 25,235,497 948,229 18,455,491 94,780 19,498,500 875,957 17,403,320 60,264 18,339,541 773,822 15,852,922 54,091 16,680,835 ,0,4 330,316- 2,807,946 3,138,262 2,543,337 - - 4,146,971 2,441,190 102,147 - 4,022,304 4,070,727 76,244 4,722,058 - 3,953,107 69,197 4,607,322 114,736 - 2,694,240 155,695 4,382,498 39,375 4,577,568 - 5,273,263 2,617,689 76,551 5,191,897 81,366 3,957,412 4,203 207,927 9,517,893 463,555 4,169,542 8,937,368 116,970 358,570 8,077,564 61,293 8,497,427 9,353,564 367,295 8,833,895 152,374 193,874 2,649,382 89,343 2,932,599 - 3,536,342 - 3,359,600 3,440,919 95,423 3,319,716 39,884 332,471 6,915,976 88,256 7,336,703 2,760,592 - 2,659,799 100,793 4,391,898 - 604,055 6,741,281 79,654 7,424,990 - 2,024,986 4,276,451 115,447 - 2,513,491 1,994,284 30,702 2,476,976 36,515 3,6 072 244,458 - 233,666 10,792 oeAa PSo Total SPShop Away Home ------Bookmaker Betting2001 Ttl BettingBookmakers/Tote 208,392,460 202,006,955 24,792,107 15,322,361 20,626,819 19,028,572 10,412,966 11,560,805 25,425,704 4,327,794 7,956,756 7,879,040 4,608,172 1,948,641 2,930,282 1,301,000 5,084,505 3,399,756 4,183,031 4,350,175 4,419,864 5,995,617 1,653,647 2,698,275 7,917,878 7,112,542 3,456,151 2002 - - - - 215,015,963 211,877,701 27,175,997 21,174,282 20,688,565 10,651,878 11,525,927 31,713,824 4,114,755 8,275,818 3,072,860 8,585,734 4,947,999 2,430,775 3,121,970 3,138,262 2,999,795 4,818,834 4,684,665 5,212,019 4,927,795 3,099,722 6,003,816 4,776,265 9,728,872 3,683,659 4,167,978 293,897 2001 - - - Comingling out Point to Leopardstown Gowran Park Punchestown Downpatrick Down Royal Bellewstown Racecourse Roscommon Fairyhouse Ballinrobe Kilbeggan Sub Total T Killarney Limerick Laytown Dundalk T Clonmel Listowel Curragh W ipperary Thurles Galway ramore exford Navan T T Cork Sligo Naas ralee otal 15 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage16 16 HORSE RACING IRELAND Annual Report 2002 023321033. - 227 67 1 3.3 112 3.7 117 66.7 3.1 2,257 70.2 96 2,200 4.1 - 109 - 64.5 - 4.9 2,015 - 72.3 126 1,926 - 1,01330.0 72.8 81626.1 - 1,850 - - 3,382 - 1,01532.4 - 3,133 62723.6 3,126 56622.3 2,662 441 13.9 2002 77.4 361 2,452 2,542 12.0 17 0.5 78.5 2,335 2001 460 2588.2 13.8 14 0.5 77.3 2,583 2679.0 2000 479 15.3 19 0.6 77.4 2,416 2778.3 1999 3,168 230 9.6 22 0.7 83.8 2,977 2,004 2046.6 1998 16 0.7 3,339 1405.9 Flat 38.2 22.8 3,121 2002 2,390 8,988 5,170 2001 2000 14.4 13.9 1999 1998 3,382 3,167 30.6 National Hunt 11,14947.4 30.0 31.1 14,158 12,700 63.3 33.1 23,519 9,630 Sponsors 1998-2002 34.5 14.2 14,374 8,643 14.4 7,258 6,549 20.9 T 6,110 22,711 22.2 Flat 6,464 23.4 55.2 National Hunt 5,784 55.6 4,932 25,523 48.0 23,509 2002 Prizemoney 44.7 14,785 42.1 46,230 11,661 42,319 8,858 The abovetotalincludesaHRIcontributionof 30,879 26,088 2002 21,048 2001 2000 1999 1998 Contributions PRIZE MONEY Industry Statistics tl4,3 5535. 6591. 1,5 30.6 14,158 14.2 6,549 25,52355.2 46,230 otal € € € T T T ’000 ’000 ’000 tlEFIH omrilNITracks Commercial INHS Owners EBF Sponsors otal HRI Owners otal Sponsors HRI otal € 00% ’000 € € 00% ’000 00% ’000 € 679,500 toPointprizemoney(2001- € 00% ’000 € € 00% ’000 00% ’000 € 00% ’000 € 111,592). € € 00% ’000 00% ’000 € 00% ’000 New AnnualReportA/W26/11/0310:19amPage17 lt792,8 31,5 14 15 10,659 17 16 11 17,600 10 33 3,333 14 10,306 31 3,961 51 25,882 36 8,441 33 22 36,860 789 178 7,069 30 1,205 21,954 7,839 *After Balloting 890 199 657 18,671 349 National Hunt Flat 5 613 T Bumper Hurdle Chase Other Flat Classic Race Type 2002 RunnersAnalysisbyRaceType T Point to Bumper Hurdle Chase Other Flat Classic 2YO Analysis byRaceType T National Hunt Flat € PRIZE MONEYOVERVIEW2002 Y 7 ,1 721713 2,167 37 6,319 171 2YO tl1946,4 12,5 14 28,259 31 62,742 1,994 otal 46,230 otal 46,230 otal 00PiemnyRaces Prizemoney ’000 fRcsEtrd nre tres Starters Starters Entries Entered* of Races 11,336 15,015 22,711 23,519 ,9 2723 82914 28,259 31 62,742 1,994 2,137 8,559 2,800 5,704 02%20 00%20 012000 2001 2002 % 2000 % 2001 % 2002 679 o ossAeaeAverage Average Horses No. 912,1 871,5 50.7 15,658 49.3 15,220 48.7 20,612 51.3 21,707 49.1 50.9 0387,657 9,592 10,388 14,312 30,879 42,319 23930,878 42,319 ,1 5,984 2,063 7,914 3,565 2,286 5,109 ,9 1,879 2,198 1 138 112 1,994 1,205 1,994 657 349 613 171 789 199 5 ,3 1,919 1,935 1,201 1,153 ,3 1,919 1,935 1 633 347 614 565 327 615 148 162 718 782 1 221 212 55 17 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage18 18 HORSE RACING IRELAND Annual Report 2002 CUMULATIVE ATTENDANCESTO31DECEMBER2002 T 27,018 10,982 W T T 16,120 T 46,900 86,895 30,600 Thurles Sligo 95,876 Roscommon 72,000 Punchestown - Navan Naas 158,417 24,288 Listowel 40,085 Limerick Leopardstown 200,471 37,947 Laytown - Killarney 70,033 Kilbeggan 61,028 140,017 Gowran Park Galway 19,402 Fairyhouse Dundalk 13,823 17,488 Curragh Cork Clonmel Bellewstown Ballinrobe Racecourse Industry Statistics tl1,286,914 otal aoe33,393 33,517 ramore ralee peay26,309 ipperary xod24,305 exford 2002 T tlAtnacsN.O itrsAverage Attendances No.OfFixtures otal Attendances 1,296,430 209,432 130,463 189,284 44,906 39,770 81,646 13,920 63,182 23,620 16,000 17,820 24,250 9 8 32,539 29,101 30,721 23,659 19,676 34,314 17,422 42,230 38,339 95,715 47,792 26,429 4,200 2001 2002 258 13 11 18 19 19 12 12 16 16 12 15 21 6 3 6 9 7 9 4 5 9 7 - - 2001 253 12 12 21 18 17 11 10 11 11 14 14 23 6 6 3 7 7 6 9 6 9 4 1 7 18,225 10,653 6,681 2,919 3,891 7,369 3,212 1,617 4,608 2,915 4,988 2,701 3,710 4,788 2,923 2,252 2,746 3,224 5,431 2,931 2,550 4,800 7,544 3,470 2002 - - 10,635 11,948 17,453 5,124 3,031 3,254 4,157 2,793 2,151 3,279 3,813 2,904 3,016 2,739 8,230 4,200 3,776 7,484 3,314 3,888 2,320 7,248 3,717 2,147 5,333 2,546 2001 New AnnualReportA/W26/11/0310:19amPage19 2002 Financial Statements 19 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage20 20 HORSE RACING IRELAND Annual Report 2002 HRI ReportandFinancialStatementsfortheperiodDecember18th,2001to31st,2002 ^Appointed 18thDecember2002 18thDecember2002 *Retired All appointed18thDecember2001 Mr MichaelOsborne Mr SeamusMulvaney Molony Mr Pierce Mr PeterMcCarthy Mr DanKirwan Mr JohnKidd Mrs JessicaHarrington Flood^ Mr William Desmond Mr Jerry Mr RoyCraigie Mrs Valerie Cooper* Cantillon Mr Dermot Mr EddieBrowne V Mr RaymondJ.Rooney Chairman Mr DenisBrosnan Members Members andOtherInformation ice-Chairman 2 TerraceEarlsfort CoxBuilding Arthur Cox&Co. Arthur Solicitors Dublin 2 Dublin Castle andAuditorGeneral Comptroller Auditors Mr RaymondHoran Secretary Kill, Co. CountyHouse Thoroughbred Registered Office Bank ofScotland Anglo IrishBank Ulster Bank AIB Bank Bank ofIreland Bankers New AnnualReportA/W26/11/0310:19amPage21 3. 2. 1. for theperiodended31stDecember2002 Control forHorseRacingIreland Statement ontheSystemsofInternalFinancial HRI ReportandFinancialStatementsfortheperiodDecember18th,2001to31st,2002 ■ ■ ■ ■ ■ ■ financialcontrols: effective designed toprovide inplace thekeyprocedures The followingare statements. inthefinancial assurance againstmaterialerror butnotabsolute, reasonable, they provide suchthat are financialcontrols The internal financialcontrols. internal forthebody’ssystemsof isresponsible Ireland ofHorseRacing I acknowledgethattheBoard ■ then Boards. SeniorManagementand go before Budget.Thesereports variances from on management accountsandreport monthly prepare Qualified accountingstaff operation in2003. Auditorswhohavecommencedthe Internal inlate2002.Appointmentof process Audit Commencement oftheInternal approval. board management andCEObefore with processes detailedreview are and there baseeachyear zero builtfrom Budgets are early on. identified have financialimplicationsare thatanybusinessriskswhichcould ensure whichshould Regular financialreporting operating inHorseRacingIreland. principal subsidiariesadditionaltoone functionoperatesin A FinancialControl andpossible. appropriate within thefinancefunctionissplitwhere A divisionofdutiesforresponsibilities subsidiaries withclarityonresponsibilities. andits within HorseRacingIreland A clearlydefinedManagementStructure 4. Chairman Denis Brosnan Denis Brosnan disclosure. which require in materiallosses,contingenciesoruncertainties whichhaveresulted weaknesses inFinancialControl no are tome,there presented Based oninformation separate accounting functions were merged. separate accountingfunctionswere Club sinceMay2002atwhichpointtwo TheTurf additional functionalactivitiesfrom hasonlyintegratedthe Horse RacingIreland commencingin2003since Audit process oftheInternal willbedoneaspart Control ofInternal ontheeffectiveness A fullreview ■ ■ ■ ■ operating under GAAP are compliedwith. operating underGAAPare specified period.Allaccountingstandards Pension valuationscompletedwithinthe andcapital. revenue expenditure, W under2authorisedsignatories. signed off bank accounts(suchasmoneydeposits)are All financialtransactionsoutsideofthemain once amonth. doneatleast are accounts reconciled Allbank transfersatpresent. internal Banking onlinesystemisusedonlyfor (all chequesmusthave2signatures). ofcheques– onsignoff Bank procedures ritten procedures on sign off of onsignoff ritten procedures 21 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage22 22 HORSE RACING IRELAND Annual Report 2002 HRI ReportandFinancialStatementsfortheperiodDecember18th,2001to31st,2002 ■ ■ ■ to: required are statements, themembersofHorseRacingIreland thosefinancial period thenended.Inpreparing forthe ofthegroup that periodandoftheresult attheendof andthegroup Horse RacingIreland of andfairviewofthestateaffairs give atrue financial periodended31stDecember2002,which ofthe financialstatementsinrespect to prepare required are The membersofHorseRacingIreland Statement ofMembers’Responsibilities group willcontinueinbusiness; group andthe thatHorseRacingIreland presume to basisunlessitisinappropriate concern thefinancialstatementsongoing Prepare r Make judgementsandestimatesthatare apply themconsistently; Select suitableaccountingpoliciesandthen easonable andprudent; ■ and other irregularities. and otherirregularities. anddetectionoffraud steps forthepreparation andhencefortakingreasonable Racing Ireland r also Theyare generally acceptedinIreland. withaccountingstandards inaccordance prepared thatthefinancialstatementsare them toensure andtoenable the financialpositionofgroup accuracyatanytime which disclosewithreasonable r are The membersofHorseRacingIreland esponsible for safeguarding theassetsofHorse esponsible forsafeguarding booksofaccount, esponsible forkeepingproper financial statements. disclosedandexplainedinthe departures have beenfollowed,subjecttoanymaterial State whetherapplicableaccountingstandards New AnnualReportA/W26/11/0310:19amPage23 for presentationtotheHousesofOireachtas Report oftheComptrollerandAuditorGeneral management andoperation. totheir which attachtoStatebodiesinrelation tothespecialconsiderations and byreference issuedbytheAuditingPracticesBoard standards withauditing financial statementsinaccordance Auditor General,Iconductedmyauditofthe and ofmyfunctionasComptroller In theexercise Basis ofAuditOpinion of thefinancialstatements. myaudit from ofwhichIamaware information statement ismisleadingorinconsistentwithother itdoesnotdoso,orifthe material instancewhere any andreport guidance oncorporategovernance compliancewithapplicable Horse RacingIreland’s whetherthestatementonpage21reflects I review on them. tomebytheMembersandreport presented independent opiniononthefinancialstatements r of Members’Responsibilitiesonpage22.Itismy setoutintheStatement are Horse RacingIreland oftheMembers The accountingresponsibilities Auditor General Racing IrelandandtheComptroller Respective ResponsibilitiesofHorse RacingAct,2001. Greyhound 24 to44underSection13oftheHorseand I haveauditedthefinancialstatementsonpages HRI GroupAccounts esponsibility, an basedonmyaudit,toform of information inthefinancialstatements. of information evaluated theoveralladequacyofpresentation orerror. myopinionIalso irregularity Informing misstatement whethercausedbyfraudorother material from free financial statementsare assurancethatthe evidence togivereasonable mewithsufficient toprovide necessary I considered andexplanationsthat obtain alltheinformation myauditsoasto I plannedandperformed adequately disclosed. consistentlyappliedand circumstances, toHorseRacingIreland’s appropriate are statements, andofwhethertheaccountingpolicies ofthefinancial judgments madeinthepreparation assessment ofthesignificantestimatesand in thefinancialstatements.Italsoincludesan totheamountsanddisclosures of evidencerelevant An auditincludesexamination,onatestbasis, Opinion 2nd September2003 Comptroller andAuditorGeneral John Purcell then ended. andcashflowfortheperiod and expenditure income December 2002andoftheGroup’s at31st andtheGroup of HorseRacingIreland andfairviewofthestateaffairs give atrue withthem, inagreement statements, whichare andthefinancial kept byHorseRacingIreland booksofaccounthavebeen In myopinion,proper 23 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage24 24 HORSE RACING IRELAND Annual Report 2002 adNil 2%to4% 7.5%to33.33% Plant, equipmentandvehicles Buildings Land straight-line basisatthefollowingannualrates: of theassetsovertheirexpectedusefulliveson thecost soastowrite-off isprovided Depreciation exceptforlandwhichisstatedatcost. depreciation statedatcostlessaccumulated Fixed Assetsare FIXED ASSETSANDDEPRECIATION activities. ownersandsponsorsancillary from racemeetings,Prizemoneycontributions from r toteturnover, subsidiaries,represents with group Tu TURNOVER period ends. all ofitssubsidiariesmadeuptocoterminous and financial statementsofHorseRacingIreland The consolidatedfinancialstatementscomprisethe BASIS OFCONSOLIDATION Horse RacingIreland. withthatof coterminous the subsidiariesare and itssubsidiaries.Theaccountingdatesof financial statementsofHorseRacingIreland Thefinancialstatementscomprisethe Euro. denominatedisthe the financialstatementsare inwhich become applicable.Theunitofcurrency accounting bodieshavebeenadoptedasthey bytherecognised recommended standards accepted accountingpractice.Financialreporting withgenerally convention, andinaccordance basis,underthehistoricalcost on anaccruals The financialstatementshavebeenprepared BASIS OFACCOUNTING asfollows: are by thegroup The significantaccountingpoliciesadopted HRI ReportandFinancialStatementsfortheperiodDecember18th,2001to31st,2002 Statement OfAccountingPolicies evenue from bookmaker’sbettingandrevenue evenue from r nover, transactions whichexcludesintergroup Executive of Horse Racing Ireland. Executive ofHorseRacingIreland. bytheChief at asubsequenttimeasdirected any deficitsinothersuchracesatthesamevenue in anyGuaranteedValue racethisisusedtofund isasurplus there prize moneyforsuchraces.Where appliedinfunding for guaranteedvalueracesare andsponsorshipmoney The entrancefees,forfeits GUARANTEED VALUERACESPRIZEFUND incurred. are expensedintheperiodwhichthey are Ireland Contributions toprizemoneybyHorseRacing toHorseRacingIreland. transferred were Office 1st May2002,thefunctionsofRegistry the from effect oftheTurf Club.With Office outbytheRegistry of allprizemoneywascarried collection ofallcontributionsandthepayment the 1stofMay2002,administration OwnersandSponsors.Priorto Racing Ireland, madebyHorse Contributions toprizemoneyare CONTRIBUTION TOPRIZEMONEY diminutioninvalue. for anypermanent statedatcostlessprovision Financial assetsare FINANCIAL ASSETS establishment. onits toHorseRacingIreland transferred This was of aspectsitspensionarrangements. forformalisation tomakeprovision made inorder whichhadbeen TheRacingBoard, from transferred was apensionreserve (now HorseRacingIreland), On establishmentoftheIrishHorseracingAuthority account. to theincomeandexpenditure charged infull are actuarialreviews arising from Additionalpayments period towhichtheyrelate. accountinthe to theincomeandexpenditure charged defined contributionpensionschemesare ofemployees.Payments to the periodofservice accountonasystematicbasisover expenditure charged totheincomeand actuaries andare basedontheadviceofindependentqualified are Contributions todefinedbenefitpensionschemes PENSIONS New AnnualReportA/W26/11/0310:19amPage25 LEASED ASSETS i Grantspaid (i) GRANTS account. charged totheincomeandexpenditure Payments madeunderoperatingleasesare continued Statement OfAccountingPolicies HRI ReportandFinancialStatementsfortheperiodDecember18th,2001to31st,2002 group position. group thecorrect toreflect adjustedinorder are However, forconsolidationthesebalances depreciated. fixedassetsare as therelated onthesamebasis torevenue credited and are companies the balancesheetsofsubsidiary in credit asadeferred treated These grantsare 15 years. and theindustry, estimatedbetween1and expected benefittoHorseRacingIreland overtheperiodof sheet andamortised included asintangibleassetsinthebalance under thecapitaldevelopmentfundare Capital developmentgrantspaidtoracecourses account intheperiodtowhichtheyrelate. charged totheincomeandexpenditure are to meethealth&safetyrequirements, Racecourse developmentgrants,primarily i)Grantsreceived (ii) which thegrantsrelate. estimated usefullivesoftheassetsto accountbasedonthe and expenditure totheincome the balancesheetandreleased r and capitalgrantsreceived Government basis. onacashreceipts to revenue credited grants are revenue Government eceivable are treated as deferred incomein asdeferred treated eceivable are 25 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage26 26 HORSE RACING IRELAND Annual Report 2002 amn fpiemnycletdfo wesadSosr (16,917) Operating costs OwnersandSponsors Payment ofprizemoneycollectedfrom OwnersandSponsors Prize moneycontributionsfrom noefo okaes etn 1,153 Integrity services Foal Levy income Office Registry Racecourse income bookmakers’betting Income from eea aktn n rmtos1,550 1,800 2,083 968 632 General marketingandpromotions Marketingexpenditure Irish Thoroughbred administrationcosts Horse RacingIreland Foal Levydistribution bodies Grants paidtoindustry andexpenses Capital DevelopmentFundinterest Capital DevelopmentFundamortisation Racecourse developmentgrants income(net) Interest Marketing contributionstoIrishThoroughbred Industry HRI ReportandFinancialStatementsfortheperiodDecember18th,2001to31st,2002 Denis Brosnan, losses are accountedforintheGroupIncomeandExpenditure Account. ofthesefinancialstatements.Allgainsand part The statementofAccountingPoliciesandNotes1to30form SURPLUS ATENDOFPERIOD Transfers toreserves SURPLUS ATBEGINNINGOFPERIOD SURPLUS FORTHEPERIOD Rationalisation costs Contributions toprizemoney OTHER EXPENDITURE ondisposaloffixedassets Profit RacingFund theHorse&Greyhound Allocation from OTHER INCOME OPERATING SURPLUS DIRECT COSTS W TOTAL TURNOVER T TURNOVER for theperiod18thDecember2001to31st2002 Group IncomeandExpenditureAccount ote Ireland turnover ote Ireland innings paidonbets Chairman Chairman Raymond J.Rooney, Notes 23 12 11 12 10 14 6 5 4 8 6 9 8 7 V ice-Chairman Period Ended 31.12.2002 (64,707) (15,352) (32,438) 69,226 (1,041) 41,504 55,982 26,528 64,507 56,146 16,917 7,484 8,525 4,519 € 1,588 8,064 1,254 4,016 1,279 2,596 8,576 5,332 1,279 1,627 ’000 304 New AnnualReportA/W26/11/0310:19amPage27 noeadepniueacut7,484 account Income andexpenditure Intangible assets ioiyitrs 51,235 25 Denis Brosnan, losses are accountedforinthe GroupIncomeandExpenditure Account. ofthesefinancialstatements.Allgainsand part The statementofAccountingPoliciesandNotes1to30form Minority interest Other reserves Establishment reserve FINANCED BY: CapitalGrant Deferred NET ASSETS CREDITORS: TOTAL ASSETSLESSCURRENTLIABILITIES NET CURRENTASSETS Bank overdraft CREDITORS: Cash atbank Debtors CURRENT ASSETS Financial assets T FIXED ASSETS as at31stDecember2002 Group BalanceSheet HRI ReportandFinancialStatementsfortheperiodDecember18th,2001to31st,2002 angible assets Amounts falling due after more thanoneyear Amounts fallingdueaftermore Amounts fallingduewithinoneyear Chairman Chairman Raymond J.Rooney, Notes 18 17 16 15 14 13 23 22 21 19 V ice-Chairman 31.12.2002 66,625 66,625 89,816 29,784 65,390 38,760 17,109 23,191 26,045 56,024 53,290 54,692 60,032 26,240 € 2,037 2,734 5,010 ’000 330 195 27 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage28 28 HORSE RACING IRELAND Annual Report 2002 Intangible assets noeadepniueacut5,466 account Income andexpenditure HRI ReportandFinancialStatementsfortheperiodDecember18th,2001to31st,2002 Denis Brosnan, Denis Brosnan, losses are accountedforinthe GroupIncomeandExpenditure Account. ofthesefinancialstatements.Allgainsand part The statementofAccountingPoliciesandNotes1to30form Other reserves Establishment reserve FINANCED BY: NET ASSETS CREDITORS: TOTAL ASSETSLESSCURRENTLIABILITIES NET CURRENTASSETS Bank overdraft Amounts fallingduewithinoneyear CREDITORS: Cash atbank Debtors CURRENT ASSETS Financial assets T FIXED ASSETS as at31stDecember2002 Horse RacingIrelandBalanceSheet angible assets Amounts falling due after more thanoneyear Amounts fallingdueaftermore Chairman Chairman Raymond J.Rooney, Notes 18 17 16 15 14 13 23 22 19 V ice-Chairman 31.12.2002 35,292 35,292 53,526 10,290 43,236 47,121 18,614 24,622 20,234 18,234 36,921 47,406 37,116 € 9,592 ’000 285 195 - New AnnualReportA/W26/11/0310:19amPage29 diin oitnil ses(2,322) losses are accountedforinthe GroupIncomeandExpenditure Account. ofthesefinancialstatements.Allgainsand part The statementofAccountingPoliciesandNotes1to30form 364 (17,066) INCREASE INCASH NET CASHINFLOWFROMFINANCING Bank loanrepayment FINANCING NET CASHINFLOWBEFOREFINANCING AND FINANCIALINVESTMENT NET CASHOUTFLOWFROMCAPITALEXPENDITURE Shares Preference Loans toracecourses Additions tointangibleassets tangible fixedassets Payments toacquire saleoftangible fixedassets Receipts from CAPITAL EXPENDITUREANDFINANCIALINVESTMENT INVESTMENTS ANDSERVICINGOFFINANCE NET CASHINFLOWFROMRETURNSON paid Interest received Interest RETURN ONINVESTMENTSANDSERVICINGOFFINANCE operations Net cashinflowfrom for theperiodended31stDecember2002 Group CashflowStatement HRI ReportandFinancialStatementsfortheperiodDecember18th,2001to31st,2002 26 (iii) 26(ii) 26(i) Notes Period Ended 31.12.2002 (20,230) (18,815) (20,230) 40,179 60,409 78,565 (1,258) € 1,917 ’000 659 226 (17) 29 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage30 30 HORSE RACING IRELAND Annual Report 2002 for theperiod18thDecember2001to31st2002 Notes totheFinancialStatements .EMPLOYEEREMUNERATION 3. EMPLOYEENUMBERS 2. ESTABLISHMENTOFHORSERACINGIRELAND 1. mlyrssca efr ot 533 costs Employer’s socialwelfare mlyrspnincss492 523 Employer’s pensioncosts W costoftheemployeesdetailedatNote2wasasfollows: payroll The aggregate time –part Racegoing staff staff Permanent at31stDecember2002isassetoutbelow: The numberofpersonsemployedbythegroup onitsestablishment. Racing Ireland toHorse tobalancesofthe Irish HorseracingAuthoritytransferred 18th December2001,theserelate withinthenotestobalancesat references are there comparatives inthesefinancialstatements.Where Since thisisthefirstfullyearoftradingfornewbody, noprioryear are there HorseRacingIreland, toHorseRacingIreland. transferred assetsandliabilities,were Bodyinindividualclientaccounts, includingallsupporting Regulatory on1stMay2002,beingthedatesetbyMinister.Ireland Onthatday, fundsheldbytheRacing toHorseRacing transferred were Office Under Section8(2)oftheAct,functionsRegistry onthatdate. toHorseRacingIreland transferred Horseracing Authoritywere existence onthe18thDecember2001.UnderSection22ofAct,assetsandliabilitiesIrish RacingAct2001,andcameinto wasestablishedundertheHorse andGreyhound Horse RacingIreland ages andsalaries Period Ended Period Ended 31.12.2002 31.12.2002 Number 7,621 € 6,596 ’000 638 115 New AnnualReportA/W26/11/0310:19amPage31 .DIRECTCOSTS 4. .FOALLEVY 6. ALLOCATIONFROMHORSEANDGREYHOUNDRACINGFUND 5. R aeore ru ,8 7,882 at variablerates. This levycommencedin2000andwascollectedbyWeatherby’s onbehalfofHorseRacing Ireland, 332 andTourism, inastudbook. Sports foalsregistered charge alevyonallthoroughbred for Arts, 16,917 may,(Betting Charges andLevies)Act 1999,HorseRacingIreland withtheconsentofMinister 7,882 Racing Under theIrishHorseracingAuthorityAct1994,asamendedbyHorseandGreyhound 332 16,917 - the2001allocation, From - underSection12ofthisAct. racingindustry greyhound tothehorseand forthepurposeofgivingsupport Act 2001.Afundwasestablishedbythegovernment Racing wasestablishedon18thDecember2001,undertheHorse&Greyhound Horse RacingIreland HRI RacecoursesGroup T OwnersandSponsors from Payment ofprizemoneycollected Betting collectioncosts loae oidsr n unn ot fshm (1,279) 1,279 costsofscheme andrunning Allocated toindustry in2002(9,936foalspaid) Received in2002forfoalsborn the allocation received from the Horse and Greyhound Racingfundfor2002of theHorseandGreyhound from the allocationreceived its establishmentdateon18thDecember2001totheendofthatcalendaryear. to Thebalancerelates t rln 24871839,576 7,138 32,438 ote Ireland € 1,693,439 was allocated to Horse Racing Ireland tofunditsactivitiesfrom 1,693,439 wasallocatedtoHorseRacingIreland Wi nnspi nbt prtn ot Total Operatingcosts nnings paidonbets eidEddPro ne PeriodEnded PeriodEnded Period Ended 31.12.2002 31.12.2002 31.12.2002 31.12.2002 2483,6 64,707 32,269 32,438 € ’000 € ’000 € 54,452,611. € € ’000 ’000 - 31 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage32 32 HORSE RACING IRELAND Annual Report 2002 0 GRANTSTOINDUSTRYBODIES 10. INTEGRITYSERVICES 9. CONTRIBUTIONSTOPRIZEMONEY 8. PROFITONDISPOSALOFLAND 7. continued Notes totheFinancialStatements te nutybde icuigBu rs,Odro at,ec)159 ofMalta,etc.) Order bodies(includingBlueCross, Other industry RACE Irish EquineCentre - 304 splitasfollows: bodiesare Grants paidtoindustry suchservices. Bodytomeetthecostsofproviding funding totheRacingRegulatory provides HorseRacingIreland on-courseintegrityservices. the RulesofRacingandforproviding Tu Body(whichcomprisesthe RacingAct2001,theRegulatory Under theHorseandGreyhound 18th December2001to31st2002. tothefullperiodfrom relates HorseRacingIreland The contributiontoprizemoneyfrom oftheperiod1stMayto31thDecember2002. inrespect accountare in theIncomeandExpenditure paymentofprizemoneydisclosed OwnersandSponsorstherelated The contributionsfrom RaceCompanyplc Leopardstown Horse RacingIreland Group ClubLimited. inthefixedassetsofLeopardstown re-invested were Racecourse. Thefundsreceived tothesaleofahouseownedbyLeopardstown onthedisposaloffixedassetsrelates The profit rf

Club and the Irish National Steeplechase Committee) has responsibility formakingandenforcing Club andtheIrishNationalSteeplechaseCommittee)hasresponsibility Period Ended Period Ended 31.12.2002 31.12.2002 2,596 € € 1,993 ’000 ’000 304 444 - New AnnualReportA/W26/11/0310:19amPage33 2 SURPLUSFORTHEPERIOD 12. 1 RATIONALISATIONCOSTS 11. period ended31December2002isasfollows: forthe packageoftheChiefExecutive ofHorseRacingIreland The remuneration neetrcial nlast aeore 426 1,491 132 8,576 1,258 Capital onHorseRacingIreland’s payableisbankinterest Includedininterest a) a) onloanstoracecourses receivable Interest ondepositswithbanks receivable Interest and aftercrediting: Members’fees Board Horse RacingIreland banks payableonloansfrom Interest Auditors’ remuneration ofintangibleassets Amortisation Depreciation Surplus fortheperiodhasbeenarrivedataftercharging: on1stMay2002. toHorseRacingIreland Office theRegistry on thetransferoffunctionsfrom ofTheTurf Club inplaceforstaff programme redundancy wasalsoavoluntary December 2001.There on18th Horseracing AuthorityanditssubsidiariesontheestablishmentofHorseRacingIreland membersoftheIrish takenupbystaff programme redundancy avoluntary These costsrepresent unn ot fdprmns–pyadnnpy2,483 1,130 17 23 40 costs Building running costs Additional pensioncontributionsandotherrelated –payandnon-pay Running costsofdepartments Administrationcostscomprisethefollowing: Horse RacingIreland Total Pension contributionsandothertaxablebenefits Employers’ PRSIontheabove remuneration related Performance Basic salary Development Fundloanof € 967,900. Period Ended Period Ended 31.12.2002 31.12.2002 4,016 € € € 2,275 ’000 ’000 ’000 217 403 137 71 33 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage34 34 HORSE RACING IRELAND Annual Report 2002 3 TANGIBLEASSETS 13. continued Notes totheFinancialStatements ipsl 6)(61) 9,033 201 (61) 1,054 195 (61) 914 169 640 - 8,838 15,790 (61) 532 25,676 32 414 399 9,947 - 382 1,065 15,391 727 At 18thDecember2001 At 31stDecember2002 24,611 Net BookValue (61) At 31stDecember2002 9,220 40,009 Disposals Charge forperiod At 18thDecember2001 (61) Aggregate Depreciation 2,336 8,205 13,307 At 31stDecember2002 (108) Disposals 11,032 - 1,598 Additions 8,627 31,804 17,066 At 18thDecember2001 Cost (61) 7,090 67,999 738 968 4,680 HORSE RACINGIRELAND 51,041 (47) 16,202 3,942 16,098 At 18thDecember2001 At 31stDecember2002 15,295 51,797 Net BookValue At 31stDecember2002 35,746 Disposals Charge forperiod At 18thDecember2001 Aggregate Depreciation At 31stDecember2002 Disposals Additions At 18thDecember2001 Cost GROUP adadEupetPeriodEnded Equipment Land and adadEupetPeriodEnded Equipment Land and ulig n eils31.12.2002 andVehicles Buildings ulig n eils31.12.2002 andVehicles Buildings 4174524,622 425 24,197 54,692 7,575 47,117 € € ’000 ’000 € € ln,Total Plant, ln,Total Plant, ’000 ’000 € € ’000 ’000 New AnnualReportA/W26/11/0310:19amPage35 4 INTANGIBLEASSETS 14. 5 FINANCIALASSETS 15. amortised overafiveyearperiod.Thecharge for2002was amortised tofundcapitaldevelopmentsofTote inorder Ireland tobe buildingsatthosetracks.Thesegrantsare tograntspaidbyTote relates The balanceremaining toracecoursesnotownedbyHorseRacing Ireland aac t1t eebr20 35,198 2,322 41,821 1tracksin2002.Thisamounted toanacceleratedcharge duringtheperiodof category ofthebalanceon acceleratedthewriteoff isbeinglaunchedin2003,HorseRacingIreland programme a 15yearloan.Inlightofthefactthatthisschemeisnowclosedandnewcapitaldevelopment contributionisbeingfundedbywayof The IrishHorseracingAuthority’s(nowHorseRacingIreland’s) funding withthebalancebeingbyracecourses. uptoamaximumof50% asubstantialupgradingofracecoursefacilitiestotakeplace.Itprovided establishedacapitaldevelopmentfundto The IrishHorseracingAuthority(nowHorseRacingIreland) Net BookValue Balance at31stDecember2002 Charge fortheperiod Balance at18thDecember2001 Amortisation ofGrantsPaid Paid to31stDecember2002 Payments duringtheperiod Paid to18thDecember2001 Capital DevelopmentFundGrantsPaid GROUP Details of the principal subsidiaries of Horse Racing Ireland and their activities are setoutinnote30. andtheiractivitiesare Details oftheprincipalsubsidiaries ofHorseRacingIreland Loans toracecourses Investment insubsidiaries Loans tosubsidiaries Horse RacingIreland Loans toracecourses Group € 38,659. € Period Ended Period Ended 6,623,618. 31.12.2002 31.12.2002 18,614 43,813 44,143 13,552 € € 8,615 5,010 5,010 ’000 ’000 330 52 35 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage36 36 HORSE RACING IRELAND Annual Report 2002 continued Notes totheFinancialStatements 7 CASHATBANK 17. DEBTORS 16. rs hruhrdMreig672 47,121 31st December2002. at Office aswellstakeswonbutnotdrawndownbyclientsoftheRegistry Motorway CountyCouncilfordevelopmentofthe toDunLaoghaire-Rathdown sale oflandatLeopardstown 139 the primarilytothefundsondepositarisingfrom relates The cashbalanceinHorseRacingIreland Horse RacingIreland 1,191 Marketing Irish Thoroughbred T HRI Racecourses Horse RacingIreland Group income andaccrued Prepayments T Horse RacingIreland income andaccrued Prepayments T Group ote Ireland rade debtors rade debtors (Amounts fallingduewithinoneyear) Period Ended Period Ended 31.12.2002 31.12.2002 47,121 53,290 2,734 € € 4,112 1,385 1,543 ’000 ’000 285 146 New AnnualReportA/W26/11/0310:19amPage37 8 CREDITORS: 18. upue nGaate au ae 465 1,054 747 18,024 12,975 747 Surpluses onGuaranteedValue Races Balance Transferred on1stMay2002 671 The movementintheGuaranteedValue periodwasasfollows: RacesFundfortherelevant 12,975 T Guaranteed valueracesprizefund Advances byandprizemoneyduetoracingclients T Bank loan(Note20) companies Amounts owedtogroup Accruals Horse RacingIreland T Guaranteed Value Racesprizefund Advances byandprizemoneyduetoracingclients T Bank loan(Note20) paymentonassetacquisition Deferred Accruals Group Other taxes PRSI (772) PAYE Horse RacingIreland Other taxes PRSI PAYE Group ANALYSIS OFTAXATIONCREDITORS Balance at31stDecember2002 Account Released toIncomeandExpenditure axation creditors axation creditors rade creditors rade creditors (Amounts fallingduewithinoneyear) Period Ended Period Ended 31.12.2002 31.12.2002 36,921 26,045 € € € 1,143 3,484 2,727 2,863 5,732 ’000 ’000 ’000 231 330 747 317 114 163 231 330 71 46 87 80 37 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage38 38 HORSE RACING IRELAND Annual Report 2002 0 BANKLOANS 20. CREDITORS: 19. continued Notes totheFinancialStatements Horse Racing Ireland ofasimilarvalue. Horse RacingIreland eaal fe er 14,426 1,143 3,808 14,630 2,863 8,149 isanegativecovenantfor There Repayable after5years Repayable within2to5years Repayable within1year Horse RacingIreland 412 Repayable after5years Repayable within2to5years Repayable within1year Group Bank loan(Note20) Horse RacingIreland paymentofassetacquisition Deferred Bank loan(Note20) Group (Amounts falling due after more thanoneyear) (Amounts fallingdueaftermore € 4.8m infavourofourbankerspledgedagainsttheassets Period Ended Period Ended 31.12.2002 31.12.2002 19,377 25,642 18,234 23,191 22,779 € € ’000 ’000 New AnnualReportA/W26/11/0310:19amPage39 1 DEFERREDCAPITALGRANT 21. 3 MOVEMENTONRESERVES 23. ESTABLISHMENTRESERVE 22. mrie uigtepro (328) Group 2,365 on18December2001. Authority toHorseRacingIreland Horseracing Authorityon1December1994,andthetransferofnetassetsIrish totheIrish theRacingBoard onthetransfer ofnetassetsfrom arose The establishmentreserve allocatedbywayofgrant The government Balance at31stDecember2002 duringtheperiod Amortised Balance at18thDecember2001 Group t1t eebr20 1276949219,193 942 6,984 37,719 development. Rathdown CountyCouncil for Motorway RacecoursetoDunLaoghaire- ofthesalelandsatLeopardstown ontheproceeds earned 11,267 totheinterest relates DevelopmentinHorseRacing Ireland forFuture The transfertotheReserve 942 Closing balanceat31stDecember2002 T 6,984 T at 18thDecember2001 Opening balance 29,793 Horse RacingIreland Closing balanceat31stDecember2002 T T 18th December2001 Opening balanceat in linewiththematchingdepreciation. overa10year period totheIncomeandExpenditure System. Thisamountisbeingtransferred ase oIcm n xedtr - - 1,041 - - - - - 1,041 - - - 1,041 ransfer toIncomeandExpenditure IncomeandExpenditure ransfer from - - 1,041 ransfer toIncomeandExpenditure IncomeandExpenditure ransfer from eev o uueRvlainPninTotal Other Pension Revaluation forFuture Reserve eeomn eev biain Reserves Obligations Reserve Development € 3.2m in 1999 towards theacquisitionofanewTote3.2m in1999towards 2386949220,234 942 6,984 38,760 12,308 942 6,984 30,834 € ’000 € ’000 € ’000 Period Ended 31.12.2002 2,037 € € ’000 ’000 39 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:19amPage40 40 HORSE RACING IRELAND Annual Report 2002 4 PENSIONCOMMITMENTS 24. continued Notes totheFinancialStatements neeto ceelaiiis620 (728) 1,078 3,654 870 5,664 7.00% 11,266 5.00% 8.00% onschemeassets Expected return onschemeliabilities Interest Analysis oftheamountwhichwouldbecreditedtoother financeincomeisasfollows: cost Past service cost service Current Analysis oftheamountwhichwouldbechargedtooperatingprofitisasfollows: Net pensionliability Net deficitinpensionscheme valueofpensionschemeliabilities Present Other Bonds Equities were: The marketvalueofassetsintheschemeandexpectedratereturn Pension increases increases Salary Inflation rate Discount rate V Contributionsmadefortheperiodended31stDecember2002were d) and52inactiveparticipants 14activeparticipants were Thisisnowaclosedschemeandthere c) out on1stApril2001andat31stDecember2002,this Afullactuarialvaluationwascarried b) On1stDecember1994,theIrishHorseracingAuthoritytookoveroperationofRacing a) Defined BenefitScheme(RacingBoardScheme) The main financial assumptions used to calculate the retirement liabilities were asfollows: liabilitieswere The mainfinancialassumptionsusedtocalculatetheretirement aluation Method at 31stDecember2002. out1stApril2001isavailabletomembersofthisscheme. actuarial valuationcarried valuation wasupdatedforthepurposesofFRS17byaqualifiedindependentActuary. The to HorseRacingIreland. Thiswassubsequentlytransferred staff. DefinedBenefitPensionSchemeforpermanent Board’s contributions will be made in accordance with advice from Horse Racing Ireland’s actuaries. HorseRacingIreland’s withadvicefrom contributions willbemadeinaccordance xetdRtr MarketValue at Expected Return € 1,106,636. Future 31 December2002 Projected Unit 10,396 € € € 2.25% 4.00% 2.25% 5.50% ’000 ’000 ’000 117 870 77 New AnnualReportA/W26/11/0310:20amPage41 4 PENSIONCOMMITMENTS 24. f) This scheme also covers the employees of Integrity Services who are directly fundedbyHRI. directly whoare ThisschemealsocoverstheemployeesofIntegrityServices f) )Contributionsmadefortheperiodended 31stDecember2002forthe23employeesincluded e) outonthisscheme30thApril2001. Afullactuarial valuationwascarried d) inthisschemewhichisnowaclosedscheme. 23employeesofHorseRacing Ireland are There c) (508) to “TheAdheringBodycovenantswiththePrincipalEmployer(TheTurf Club)andthetrustees b) theTurf ClubtoHorseRacingIreland, On1stMay2002,atthepointoftransferemployeesfrom a) 2,104 Defined BenefitScheme(TheTurfClubofIrelandPensionScheme) 2005. scheme assets/liabilitiesinthefinancialstatementsforperiodsendingonorafter1January only. includedforinformation The abovecalculationsare ofpension recognition FRS17requires Deficit atendofyear Actuarial gain/(loss) (3,402) Other financeincome costs Past service Contributions cost service Current Deficit atthebeginningofyear Analysis ofthemovementindeficitduringyearisasfollows: Actuarial losswhichwouldberecognisedintheSTRGL Changes inassumptions Experience gainsandlosses onscheme assets lessexpectedreturn Actual return total recognisedgainsandlosses(STRGL)isasfollows: Analysis oftheamountwhichwouldberecognisedinstatement of thescheme. alsoincludedintheliabilities Racecourseare Employees oftheTurf ClubandtheCurragh in this scheme were in thisschemewere oftheschemesetoutbydeclarationandrules”. be boundbytheprovisions thatpoint. PensionScheme(thePrincipalEmployer)from intheTurf ClubofIreland participate Tr oftheTurf ClubandCoyleHamilton Stewards betweenHorseRacingIreland, a deedofAdherence ustees Limited was put in place allowing Horse Racing Ireland tobeanAdheringBody ustees LimitedwasputinplaceallowingHorseRacingIreland € 134,356. continued (1,385) (2,490) € € 1,100 1,268 (870) (163) ’000 ’000 (77) (87) 41 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:20amPage42 42 HORSE RACING IRELAND Annual Report 2002 5 MINORITYINTEREST 25. PENSIONCOMMITMENTS 24. continued Notes totheFinancialStatements r rfrneSae n eae hr rmu 226 issuedandfullypaidatthe31December2002.Thebalance of 461shares were There 678 at6centeach. Shares capitalof1,000Preference Navan GolfClubplchasanominalshare 1,745 Closing balance 5,654 Premium andRelatedShare Shares Preference Opening balance 11,960 6.50% 2,910 4.50% 7.50% Thepensioncostsfortheperiodended31stDecember2002 was b) operatesaDefinedContribution SchemeforallemployeesnotintheDefined HorseRacingIreland a) Net PensionLiability Employees fundedIntegrityServices & HRIdirectly employees toHRIdirect Net deficitinpensionschemerelation valueofpensionsschemeliabilities Present Other Bonds Equities : were The marketvalueofassetsintheschemeandexpectedratereturn Pension increases increases Salary Inflation Rate Discount Rate V asfollows: scheme were liabilitiesunderFRS17forthefull The mainfinancialassumptionsusedtocalculatetheretirement in Tipperary Race Companyplc. in Tipperary Defined ContributionScheme epresents the share premium on these issued shares of ontheseissuedshares premium theshare epresents aluation Method Benefit Scheme. costs attheendofperiod. continued € 1,198,021 and xetdRtr MarketValue Expected Return € 203,914. There were noprepaid were 203,914. There € 37,000 minority interest 37,000 minorityinterest At 31stDec2002 € 1,235,021 Period Ended Project Unit 31.12.2002 1,235 8,077 € € 2.50% 3.50% 2.00% 5.50% 1,009 2,910 ’000 ’000 New AnnualReportA/W26/11/0310:20amPage43 6 (i)RECONCILIATIONOFSURPLUSFORTHEYEARTONETCASHINFLOW/OUTFLOW 26. 6 (iii)ANALYSISOFCHANGESINNETDEBT 26. (ii)RECONCILIATIONOFMOVEMENTINNETDEBT 26. FROM OPERATIONS e eta 81.1(32,956) 20,230 40,179 12,709 47,771 (304) (328) Net Debtat18.12.01 8,525 Change inNetDebt 8,576 Repayment ofBankloans inCashthePeriod Increase NET CASHINFLOWFROMOPERATIONS racecourseandTote ofdeferred Amortisation grants increditors (Decrease)/Increase indebtors Decrease/(Increase) ofCapitalDevelopmentFundgrants Amortisation onsaleoftangibleassets Profit charges Depreciation payable Interest receivable Interest Surplus/(Deficit) fortheyear aha ak 2964,7 53,095 (22,779) (2,863) - - - 40,179 5,890 14,340 12,916 (28,669) (17,203) Debt dueafter1year Debt duewithin1year Cash atbank Net Fundsat31.12.02 t1.20 ahFosOhrCagsAt31.12.2002 OtherChanges CashFlows At 18.12.01 3,5)6,0 27,453 - 60,409 (32,956) € ’000 € ’000 € ’000 Period Ended Period Ended 31.12.2002 31.12.2002 27,453 78,565 60,409 (1,917) € € € 2,275 1,258 ’000 ’000 ’000 43 HORSE RACING IRELAND Annual Report 2002 New AnnualReportA/W26/11/0310:20amPage44 44 HORSE RACING IRELAND Annual Report 2002 0 PRINCIPALSUBSIDIARIES 30. 29. CONTINGENTLIABILITIES TAXATION 28. CAPITALANDOTHERCOMMITMENTS 27. continued Notes totheFinancialStatements R aeore iie 0 RacecourseHoldingCompany 100 Horse oftheIrishThoroughbred Promotion 100 HRI RacecoursesLimited MarketingLimited Irish Thoroughbred aa ofCu l 0 Operationofagolfcourse 100 Lettingofland Holdingofracemeetingsandancillary Lettingofaracecourse 100 CountyHouse,Kill,Co.Kildare. atThoroughbred offices 99 78 withtheirregistered incorporated intheRepublicofIreland companiesare All thesubsidiary Navan GolfClubplc activities Holdingofracemeetingsandancillary RaceCompanyplc The Tipperary 100 Cork RacecourseLimited Navan RacesLimited ClubLimited The Leopardstown %Held Indirect Subsidiaries T Direct Subsidiaries r ifany, Thefinancialeffect, fully defendedbyHorseRacingIreland. thecasescannot arisingfrom being anditssubsidiaries.Theseare pendinginvolvingHorseRacingIreland A numberoflegalcasesare companies. inothergroup arose corporationtax.Notaxableprofits exemptfrom Limited are MarketingLimitedandTote IrishThoroughbred The activitiesofHorseRacingIreland, Ireland Contracted asfollows: statements are forinthesefinancial butnotprovided committedbythegroup capitalandotherexpenditure Future easonably be ascertained. easonably beascertained. t rln iie 0 OperationofTotalisator atracemeetings and 100 Limited ote Ireland operation of a credit bettingservice operation ofacredit activities Period Ended 31.12.2002 € 3,813 ’000 -