THE TIPPERARY RACE COMPANY PLC

REPORTS AND FINANCIAL STATEMENTS

FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

Registered Number 4091 THE TIPPERARY RACE COMPANY PLC REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

Contents Page

Directors and Other Information 2

Directors' Report 3 - 5

Report of the Comptroller & Auditor General 6

Statement of Income and Expenditure and Retained Revenue Reserves 9

Statement of Financial Position 10

Notes to the Financial Statements 11 - 24

1 THE TIPPERARY RACE COMPANY PLC DIRECTORS AND OTHER INFORMATION

Directors Mr. N. Hartery Mr. R. Horan Mr. B. Kavanagh Mr. J. Osborne

Secretary Mr. R. Horan Ms. S. Eade (Deputy Company Secretary)

Registered Office Ballymany The Curragh Co. Kildare

Auditors Comptroller & Auditor General 3A Mayor Street Upper Dublin 1

Solicitors William Fry Grand Canal Square Dublin 2

Bankers Bank of Ireland 2 College Green Dublin 2

KBC Bank Ireland plc 2 College Green Dublin 2

2 THE TIPPERARY RACE COMPANY PLC DIRECTORS' REPORT

The directors present their annual report and the audited financial statements for the financial year ended 31 December 2019.

Principal activities and business review

The principal activities of the company continue to be the holding of race meetings and related activities. The company is a subsidiary of HRI Racecourses Limited and its ultimate parent is Horse Racing Ireland.

Results for the financial year 2019 2018 € €

Profit on ordinary activities before taxation 100,925 82,363

Tax on profit on ordinary activities (19,720) (18,704)

Profit for the financial year 81,205 63,659

In the opinion of the directors, the state of affairs of the company is satisfactory.

Directors and interests

The directors who held office at 31 December 2019 are listed on page 2.

The directors and secretary at 31 December 2019 had no interests in the share capital of the company or its fellow subsidiaries.

The directors received no fees or expenses in the period (2018: Nil). Please see Horse Racing Ireland for further details.

Statement on relevant audit information

The directors believe that they have taken all steps necessary to make themselves aware of any relevant audit information and have established that the statutory auditors are aware of that information. In so far as they are aware, there is no relevant audit information of which the auditors are unaware.

Accounting records

The measures taken by the directors to ensure compliance with the requirements of Section 281 to 285, Companies Act 2014, regarding proper accounting records are the implementation of necessary policies and procedures for recording transactions, the employment of competent accounting personnel with appropriate expertise and the provision of adequate resources to the financial function. The accounting records of the company are maintained at the company's office at Ballymany, The Curragh, Co. Kildare.

3 THE TIPPERARY RACE COMPANY PLC DIRECTORS' REPORT (CONTINUED)

Events since the financial year end

There has been one significant event affecting the company since the financial year end.

1. The impact of COVID-19 has had a very significant effect on The Tipperary Race Company PLC with a loss of revenue. On the 25th March 2020, all Irish horse racing was cancelled in line with Government guidelines. On 8th June 2020, racing resumed behind closed doors with strict protocols in place. Work is ongoing and the financial impact is still under review.

Principal risks and uncertainties

There are certain risks and uncertainties which may have an effect on the company's performance. This includes:

- where the racecourse is unable to hold a race meeting due to the weather conditions it will endeavour to reschedule the race meeting to a later date. - The impact of COVID-19 and the continued disruption to the racing calendar including racing behind closed doors impacting the company's ability to generate revenue.

The company has considered the risks and is in a position to respond quickly to changes in economic conditions to ensure its business objectives are achieved.

Auditors

In accordance with Section 383 (2) of the Companies Act 2014 and section 13 (2) of the Horse and Greyhound Racing Act 2001 the Comptroller and Auditor General will continue as auditor of the company.

Directors' compliance statement

The directors, in accordance with Section 225(2)(a) of the Companies Act 2014 (the "Act"), acknowledge that they are responsible for securing the Company's compliance with its "relevant obligations". "Relevant obligations", in the context of the Company, are the Company's obligations under: a) the Act, where a breach of the obligations would be a category 1 or category 2 offence; b) the Act, where a breach of the obligation would be a serious Market Abuse or Prospectus offence; and c) tax law. Pursuant to Section 225(2)(b) of the Act while the Directors are satisfied that there are appropriate arrangements and structures in place that, in their opinion, secure material compliance with the Company's relevant obligations, pursuant to Section 225(2)(b) of the Act, the directors confirm that the Company has drawn up a compliance policy statement as required by Section 225(3)(a) of the Act.

4 THE TIPPERARY RACE COMPANY PLC DIRECTORS' REPORT (CONTINUED)

Directors' responsibilities statement (continued)

Irish company law requires the directors to prepare financial statements for each financial year. Under the law, the directors have elected to prepare the financial statements in accordance with the Companies Act 2014 and generally accepted accounting practice including FRS 102 "The Financial Reporting Standard applicable in the UK and " issued by the Financial Reporting Council. Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the assets, liabilities and financial position of the company as at the financial year end date and of the profit or loss of the company for the financial year and otherwise comply with the Companies Act 2014.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business; and - state whether the financial statements have been prepared in accordance with applicable accounting standards, identify those standards, and note the effect and the reasons for any material departure from those standards.

The directors are responsible for ensuring that the company keeps adequate accounting records which correctly explain and record the transactions of the company, enable at any time the assets, liabilities, financial position and profit or loss of the company to be determined with reasonable accuracy, enable them to ensure that the financial statements and directors' report comply with the Companies Act 2014 and enable the financial statements to be audited. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Code of Practice for the Governance of State Bodies (2016)

The Code of Practice for the Governance of State Bodies (2016) requires additional disclosures in relation to certain categories of expenditure. These requirements have been addressed in the Governance Statements and Statement of internal control within the Group Financial Statements of Horse Racing Ireland.

The company was compliant with the Code of Practice of State Bodies in 2018.

Signed on behalf of the Board

Brian Kavanagh Raymond Horan 26/06/2020 Director Director Date

5

THE TIPPERARY RACE COMPANY PLC STATEMENT OF INCOME AND EXPENDITURE AND RETAINED REVENUE RESERVES FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

Notes 2019 2018 € €

Income from racing activities 2 1,081,384 1,023,077 Turnover 1,081,384 1,023,077

Operating expenses 4 (904,668) (879,403) Administrative expenses 4 (118,030) (105,016) Other operating income 5 50,753 43,801 Operating profit 109,439 82,459

Interest receivable 6 4 247 Interest payable 7 (8,518) (343) Profit on ordinary activities before taxation 8 100,925 82,363

Tax on profit on ordinary activities 11 (19,720) (18,704)

Profit for the financial year 81,205 63,659

Retained profits at the beginning of the financial year 683,570 619,911

Retained profits at the end of the financial year 764,775 683,570

Notes 1 to 26 form part of these financial statements.

The company had no recognised gains or losses in the financial year or the preceding financial year other than those dealt with in the Statement of Income and Expenditure and Retained Revenue Reserves. The result on ordinary activities arises solely from continuing activities.

The financial statements were approved by the Board of Directors on 26/06/2020 and signed on its behalf by:

Brian Kavanagh Raymond Horan 26/06/2020 Director Director Date

9 THE TIPPERARY RACE COMPANY PLC STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019

Notes 2019 2018 € € Fixed assets

Tangible assets 12 1,777,225 1,822,946

Current assets

Debtors 13 265,180 365,215 Cash at bank and in hand 277,948 20,714 543,128 385,929

Creditors: (Amounts falling due within one year) 14 (293,262) (279,336)

Net current assets 249,866 106,593

Total assets less current liabilities 2,027,091 1,929,539

Provision for liabilities 17 (1,188) (1,470)

Deferred capital grant 18 (661,408) (644,779)

Net assets 1,364,495 1,283,290

Capital and reserves

Called up share capital presented as equity 19 554,686 554,686 Other reserves 45,034 45,034 Retained profits 764,775 683,570

Shareholders' funds 1,364,495 1,283,290

Notes 1 to 26 form part of these financial statements.

The financial statements were approved by the Board of Directors on 26/06/2020 and signed on its behalf by:

Brian Kavanagh Raymond Horan 26/06/2020 Director Director Date

10 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

1. Accounting policies

The following accounting policies are applied consistently in dealing with items which are considered material in relation to the company's financial statements.

General Information and Basis of Accounting

Statement of compliance The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value in accordance with the Companies Act 2014 and generally accepted accounting practice including Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council.

The unit of currency in which the financial statements are presented is euro.

The Tipperary Race Company PLC meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. The Tipperary Race Company PLC is consolidated in the financial statements of its ultimate parent, Horse Racing Ireland, which may be obtained at Horse Racing Ireland, Ballymany, The Curragh, Co. Kildare. Exemptions have been taken in these separate company financial statements in relation to financial instruments, presentation of a cash flow statement and remuneration of key management personnel.

Income

Turnover which is recognised on an accruals basis represents income received during the period from the provision of racing and related facilities.

Interest income is recognised when it is probable that the economic benefits associated with the transaction will flow to the company and the amount of the interest income can be measured reliably. This is calculated using the effective interest rate method.

Deferred capital grants

Grants are recognised using the accruals model when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. Grants towards capital expenditure are credited to deferred income and are released to the Statement of Income and Expenditure and Retained Revenue Reserves over the expected useful life of the related assets, by equal annual instalments. Grants towards revenue expenditure are released to the Statement of Income and Expenditure and Retained Revenue Reserves as the related expenditure is incurred.

11 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

1. Accounting policies (continued)

Deferred income

Deferred membership and hospitality suites Monies received for membership and hospitality suites are being amortised as follows:

Memberships Over period of concession Hospitality suites Over period of concession Admissions Over period of concession

Other deferred income amounts are amortised over the period of concession.

Tangible fixed assets

All tangible fixed assets are initially recorded at historic cost and subsequently stated at cost less any accumulated depreciation and impairment losses.

Retirement benefit

Defined contribution scheme Payments to the defined contribution scheme are charged to the Statement of Income and Expenditure and Retained Revenue Reserves in the financial year to which they relate.

Depreciation

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset systematically over its estimated useful life, on the straight line basis, at the following annual rates:

Freehold land Nil Racecourse buildings 2% - 10% straight line Stand, kiosk and snack bar 2% straight line Fixtures & fittings 5% - 33.33% straight line Plant & equipment 5% - 33.33% straight line Computers 20% - 33.33% straight line Motor vehicles/tractors 10% - 33.33% straight line Track enhancement 5% - 12.5% straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

12 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

1. Accounting policies (continued)

The carrying values of tangible fixed assets are reviewed for impairment in accounting periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Ordinary share capital

The ordinary share capital of the company is presented as equity.

Taxation and deferred tax

The yearly charge for taxation is based on the profit for the financial year and is calculated with reference to the tax rates applying at the Statement of Financial Position date.

Deferred tax is calculated on the differences between the company's taxable profits and the results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements. Full provision for deferred tax assets and liabilities is made at tax rates that are expected to apply on reversal of the timing difference. Deferred tax relating to property, plant and equipment measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to sale of the asset.

A net deferred asset is regarded as recoverable and recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Financial instruments

Cash and cash equivalents Cash consists of cash on hand and demand deposits. Cash equivalents consist of short term highly liquid investments that are readily convertible to known amounts of cash that are subject to an insignificant risk of change in value.

Other financial assets Other financial assets including trade and other debtors are initially measured at transaction price and subsequently where necessary, less of any provision for impairment.

Other financial liabilities Other financial liabilities comprise of trade and other payables are measured at transaction price. Amounts owed to parent are shown at original cost.

13 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

1. Accounting policies (continued)

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements.

Going concern The directors have prepared budgets and cash flows for the next financial year which demonstrate that there is no material uncertainty regarding the company's ability to meet its liabilities as they fall due, and to continue as a going concern. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the company was unable to continue as a going concern.

The directors have reflected on the impact of COVID-19 in 2020 and based on current projections are satisfied that The Tipperary Race Company PLC remains a going concern.

Useful lives of tangible fixed assets The annual depreciation charge depends primarily on the estimated lives of each type of asset. The directors regularly review these useful lives and change them if necessary to reflect current conditions. In determining these useful lives management consider technological change, patterns of consumption, physical condition and expected economic utilisation of the assets. Changes in the useful lives can have a significant impact on the depreciation charge for the financial year. The net book value of tangible fixed assets subject to depreciation was €1,777,225 (2018: €1,822,946).

2. Income

2019 2018 € €

Income from racing activities 1,081,384 1,023,077

14 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

3. Staff numbers and costs The average number of persons employed by the company during the financial year, analysed by category, was as follows: Number of employees 2019 2018 Full time staff 2 3 Part time and casual staff 6 5 8 8

The aggregate payroll costs of these persons were as follows: 2019 2018 € € Wages and salaries 269,269 264,052 Social welfare costs 26,148 26,225 Other retirement benefit costs 20,412 17,501 315,829 307,778

Included within the figure for wages & salaries are amounts relating to overtime of €4,893 (2018: €2,619) and allowances of nil (2018: nil). Amounts included in payroll costs above capitalised during the period were nil (2018: nil). Other retirement benefit costs include employer's contribution to scheme costs and the cost of death in service benefit. No breakdown of total employee remuneration over €60,000 in increments of €10,000, was included in The Tipperary Race Company PLC as required under circular 13/2014 by the Department of Public Expenditure and Reform (DPER). The Tipperary Race Company PLC is consolidated in the financial statements of its parent, Horse Racing Ireland, where the employee benefit breakdown disclosure note under DPER circular 13/2014 is included. 4. Operating and Administration expenses 2019 2018 € € Operating expenses Labour 315,829 307,778 Maintenance and course upkeep 171,704 221,419 Depreciation 128,353 120,364 Other operating expenses 288,782 229,842 904,668 879,403 Administration expenses Rates and insurance 39,871 41,653 Other administration expenses 78,159 63,363 118,030 105,016

Included within the figure for Other Operating Expenses are losses in relation to cash in transit services of €12,330 (2018: Nil). 15 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

5. Other operating income 2019 2018 € €

Capital grant amortisation 35,139 33,801 Revenue grants received from Horse Racing Ireland 10,000 10,000 Profit on disposal of asset 5,614 - 50,753 43,801

6. Interest receivable 2019 2018 € €

Bank interest receivable 4 247

7. Interest payable 2019 2018 € €

On other loans 8,518 343

8. Statutory and other information 2019 2018 € € Operating profit is stated after charging: Depreciation 128,353 120,364 Auditors' remuneration 3,000 3,000 Profit on disposal of asset 5,614 - Operating lease rentals 5,375 5,375

and after crediting: Capital grant amortisation 35,139 33,801

9. Directors Remuneration

There was no directors' remuneration or directors' expenses in the financial year or the preceding financial year.

16 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

10. Retirement benefit information 2019 2018 € € Defined contribution retirement benefit scheme Contribution to defined contribution retirement benefit scheme 12,738 12,675

The company operates a defined contribution scheme for certain employees. The assets of the scheme are vested in independent trustees for the sole benefit of these employees. There are no amounts due to or from the scheme as at the financial year end. The company offers a PRSA to all other employees.

11. Taxation

(A) Analysis of charge in the financial year 2019 2018 € € Current tax: Corporation tax 20,002 18,876

Deferred tax: Origination and reversal of timing differences (Note 17) (282) (172)

Tax on profit on ordinary activities 19,720 18,704

(B) Reconciliation between tax expense included in profit and loss and profit on ordinary activities before tax multiplied by applicable tax rate:

The tax assessed for the period is different to the standard rate of corporation tax in Ireland (12.5 per cent). The differences are explained below: 2019 2018 € €

Profit on ordinary activities before taxation 100,925 82,363

Profit on ordinary activities before taxation multiplied by standard 12,616 10,295 rate of corporation tax in Ireland of 12.5% (2018 - 12.5%)

Effect of: Non deductible expenses 2,002 2,750 Non allowable income (5,094) (4,225) Depreciation in excess of capital allowances 10,477 10,134 Income taxable at higher rate 1 (78)

Corporation tax 20,002 18,876

17 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

12. Tangible fixed assets Plant, Office Machinery, Equipment, Land & & Motor Fixtures Total Buildings Vehicles & Fittings € € € € Cost

At 1 January 2019 2,519,517 346,268 401,044 3,266,829

Additions 21,017 52,817 8,798 82,632 Disposals - (15,000) - (15,000)

At 31 December 2019 2,540,534 384,085 409,842 3,334,461

Depreciation

At 1 January 2019 852,084 279,107 312,692 1,443,883

Charge for financial year 87,010 23,234 18,109 128,353 Disposals - (15,000) - (15,000)

At 31 December 2019 939,094 287,341 330,801 1,557,236

Net book value

At 31 December 2019 1,601,440 96,744 79,041 1,777,225

At 31 December 2018 1,667,433 67,161 88,352 1,822,946

18 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

12. Tangible fixed assets (continued)

Plant, Office Machinery, Equipment, Land & & Motor Fixtures Total In respect of prior financial year: Buildings Vehicles & Fittings € € € € Cost

At 1 January 2017 2,150,847 325,906 374,205 2,850,958

Additions 368,670 20,362 26,839 415,871

At 31 December 2017 2,519,517 346,268 401,044 3,266,829

Depreciation

At 1 January 2017 770,455 258,435 294,629 1,323,519

Charge for financial year 81,629 20,672 18,063 120,364

At 31 December 2017 852,084 279,107 312,692 1,443,883

Net book value

At 31 December 2017 1,667,433 67,161 88,352 1,822,946

At 31 December 2016 1,380,392 67,471 79,576 1,527,439

19 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

13. Debtors: (Amounts falling due within one year) 2019 2018 € € Amounts falling due within one year: Trade debtors 51,035 147,592 Amounts owed from parent and group companies 142,616 93,245 Accrued income and prepayments 37,645 73,615 VAT recoverable 27,267 21,003 Corporation tax recoverable 428 29,760 Other Debtor 6,189 - 265,180 365,215

14. Creditors: (Amounts falling due within one year) 2019 2018 € €

Trade creditors 8,580 61,730 Amounts owed to parent and group companies 191,496 152,110 Taxation and social welfare 3,294 2,273 Accruals 72,055 62,828 Deferred income (Note 16) 17,837 395 293,262 279,336 All amounts included above are unsecured.

Taxation and social welfare is split out as follows: Professional services withholding tax 3,294 2,273 3,294 2,273

15. Details of borrowings Within 1 Between 1 Between 2 After 5 year & 2 years & 5 years years Total € € € € € Repayable by instalments Amounts owed to group companies 160,000 - - - 160,000 160,000 - - - 160,000

In respect of prior financial year: 105,000 - - - 105,000

Interest is charged at a 3 month Euribor rate plus margin. The loan agreements states that the loans are repayable on demand and therefore the full amount due is classified as amounts falling due within one year. These amounts are unsecured. The amount repayable in relation to Amounts owed to group companies represents initial drawdowns on a loan of €300,000 from Navan Races Limited.

20 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

16. Deferred income 2019 2018 € €

Amounts falling due within one year: Miscellaneous deferred income 1,945 395 Media deferred income 15,892 - 17,837 395

17. Provision for liabilities 2019 2018 € € Deferred taxation At 1 January 1,470 1,642 Charged/(Released) to Statement of Income and Expenditure and Retained Revenue Reserves (282) (172) At 31 December 1,188 1,470

Components of deferred taxation Retirement benefit obligation (84) (14) Accelerated capital allowances 1,272 1,484

The deferred tax liability arises where fixed assets are depreciated over a longer period than that over which capital allowances are recognised. The retirement benefit deferred tax asset relates to the company's defined contribution scheme and can arise when the contributions have been accrued in the financial statements but not yet paid over to the scheme.

18. Deferred capital grants 2019 2018 € €

At beginning of the financial year 644,779 642,580 Received during the financial year 51,768 36,000 Released to Statement of Income and Expenditure and Retained Revenue Reserves (35,139) (33,801) At end of financial year 661,408 644,779

Deferred capital grants are disclosed separately from other liabilities as it is believed that this treatment is more appropriate to the circumstances of a State body.

During the year, Horse Racing Ireland (HRI) under the remit of the Department of Agriculture, Food and Marine provided The Tipperary Race Company PLC with a grant of €13,372 under HRI's Capital Development Schemes 2015 - 2019. The grant was provided based on vouched expenditure in order to fund projects which had been pre-approved by HRI by HRI for the purpose of the development of facilities at .

21 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

18. Deferred capital grants (continued)

The grant is repayable to HRI if racing ceases at Tipperary racecourse within a period of 10 years from the date of payment of the grant. The Tipperary Race Company PLC is adhering to any conditions imposed by HRI attached to the approval of the grant aid for the approved projects and are in compliance with tax clearance requirements.

19. Called up share capital presented as equity 2019 2018 € € Authorised 500,000 Ordinary shares of €1.269738 each 634,869 634,869

Allotted, called up and fully paid 436,851 Ordinary shares of €1.269738 each 554,686 554,686

Ordinary Shares The ordinary shares have no right to fixed income.

20. Capital commitments

Future capital committed but not provided for in these financial statements are as follows: 2019 2018 € €

Contracted 249,808 45,537

21. Restriction on future distributions

An amount due to Horse Racing Ireland of €635,883 was written off in previous years subject to the condition that in the event of any future distribution of profits from the company the amount so written off would have to be repaid in full prior to any such distribution.

22. Operating leases - leasee

Total future minimum lease payments under non-cancellable operating leases are as follows: 2019 2018 € € Due: Within one year: 2,688 5,375 Within two to five years: - 2,688 After five years: -- 2,688 8,063

22 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

23. Reserves

Retained profits includes all cumulative gains and losses recognised in the Statement of Income and Expenditure and Retained Revenue Reserves.

24. Contingent liability

Under an agreement between the company and Horse Racing Ireland, capital grants amounting in total at 31 December 2019 to €47,000 (2018: €299,000) have been received. If racing ceases to take place at Tipperary Racecourse, the company may be liable to make repayments to Horse Racing Ireland.

25. Holding company and related party transactions

The company is a subsidiary of HRI Racecourses Limited and its ultimate parent is Horse Racing Ireland. Both companies are incorporated in the Republic of Ireland. Copies of the financial statements of Horse Racing Ireland are available from Horse Racing Ireland, Ballymany, The Curragh, Co. Kildare.

In accordance with the exemption afforded by paragraph 33.1A from the provisions of FRS 102, 'related party transactions', there is no disclosure in these financial statements of transactions with wholly owned subsidiaries. Horse Racing Ireland, Navan Races Limited, Fairyhouse Club Limited, The Leopardstown Club Limited, Tote Ireland Limited, Irish Thoroughbred Marketing Limited, HRI Racecourses Limited and Racecourse Limited are all considered related parties because they are part of a group in which The Tipperary Race Company PLC is not a wholly owned subsidiary undertaking.

In accordance with the exemption afforded by FRS102 paragraph 1.12, there is no disclosure in these financial statements of key management personnel compensation.

Transactions in the financial year between the company and its related parties included payroll and cost recharges of €344,178 (2018: €336,849), bookmakers income of €21,406 (2018: €18,417), sponsorship collected of €68,400 (2018: €62,500) and interest charged of €8,384 (2018: €343). The company received grants totalling €61,768 (2018: €46,000) from related parties.

During the financial year, the company received short term loans of €80,000 (2018: €80,000) from related parties, and repaid intercompany amounts of €25,000 (2018: €25,000).

23 THE TIPPERARY RACE COMPANY PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019

25. Holding company and related party transactions (continued)

At the end of the financial year, the amounts due from/(to) other related parties are as follows:

Related party name 2019 2018 € € Fairyhouse Club Limited (269) - The Leopardstown Club Limited (4,707) (19,651) Navan Races Limited (160,000) (80,000) HRI Racecourses Limited 95 95 Tote Ireland Limited 1,606 631 Horse Racing Ireland 114,395 40,060

26. Approval of financial statements

The Board of Directors approved these financial statements for issue on 26/06/2020.

24