Tabcorp Holdings Limited Level 21, Tower 2 727 Collins

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Tabcorp Holdings Limited Level 21, Tower 2 727 Collins 18 August 2021 Australian Securities Exchange Companies Announcements Platform 20 Bridge Street Sydney NSW 2000 RESULTS FOR ANNOUNCEMENT TO THE MARKET FOR THE FULL YEAR ENDED 30 JUNE 2021 In accordance with the ASX Listing Rule 4.3A, the following information in respect of Tabcorp Holdings Limited’s (Tabcorp) results for the full year ended 30 June 2021 is transmitted for lodgment: 1. Appendix 4E; and 2. Annual Report. This announcement was authorised for release by the Tabcorp Board. For more information: Media: Nicholas Tzaferis, GM Corporate Communications, +61 3 9868 2529 Investors/Analysts: Chris Richardson, GM Investor Relations & Treasury, +61 3 9868 2800 Level 21, Tower 2 GPO Box 1943 Tabcorp tabcorp.com.au 727 Collins Street Melbourne VIC Australia Holdings Limited ABN 66 063 780 709 Melbourne VIC 3008 3001 APPENDIX 4E Results for announcement to the market Preliminary final report for the year ended 30 June 2021 Tabcorp Holdings Limited (ABN 66 063 780 709) % change increase/ Results $m (decrease) Revenue from ordinary activities 5,686 9% Profit from ordinary activities after tax before goodwill impairment 391 78% Profit from ordinary activities after tax attributable to members 269 NM (i) ` Net profit for the period attributable to members 269 NM (i) Percentage change is not meaningful. Amount per Franked amount Dividend Record date Payment date share per share Final dividend 26 August 2021 17 September 2021 7.0 ¢ 7.0 ¢ Interim dividend 23 February 2021 17 March 2021 7.5 ¢ 7.5 ¢ Total dividend per share (interim plus final) 14.5 ¢ 14.5 ¢ No foreign conduit income is attributable to the final dividend. Dividend reinvestment plan Tabcorp's Dividend Reinvestment Plan (DRP) will operate in respect of the final dividend, with the last date for receipt of election notices being 27 August 2021. No discount is applicable to shares allocated to participants and no brokerage, commission or other transaction costs will be payable by participants on shares acquired under the DRP. Shares will be allocated on 17 September 2021 and will rank equally in all respects with existing shares. The price at which shares are allocated is the daily volume weighted average market price of Tabcorp shares sold in the ordinary course of trading on the Australian Securities Exchange over a period of 10 business days beginning on the second business day after the dividend record date. 30 June 2021 30 June 2020 Net tangible asset backing (ii) $ $ Net tangible asset backing per ordinary share (1.53) (2.09) Net tangible asset backing per ordinary share including licences (0.61) (1.04) (ii) Net tangible assets includes liabilities in relation to leasing and the corresponding right-of-use assets. Supplementary information The previous corresponding period is the year ended 30 June 2020. For additional Appendix 4E disclosures, refer to the Annual Report 2021 and the Media Release lodged with the ASX on 18 August 2021. This Appendix 4E should be read in conjunction with the Directors' Report and the audited Financial Report for the year ended 30 June 2021. Appendix 4E Page 1 Excitement with Integrity ANNUAL REPORT 2021 Contents Operating and financial review 01 About Tabcorp 01 Our vision and purpose 02 Creating stakeholder value 03 Tabcorp operates three Chairman’s and MD’s message 04 Strategic review conclusion and proposed demerger 06 FY21 overview 08 market leading businesses FY21 financial performance 09 Lotteries and Keno 12 Wagering and Media 16 Lotteries Wagering Gaming Gaming Services 20 and Keno and Media Services Corporate responsibility 24 Governance 30 Board of Directors 30 Executive Leadership Team 32 Corporate governance 34 Risk management and material business risks 36 Directors’ Report 42 Remuneration Report 51 Financial Report 77 Independent auditor’s report 125 At the back 130 Five year review 130 Shareholder information 131 Company directory 133 Indicative key dates 133 ® ® ® ® ® Tabcorp Holdings Limited ABN 66 063 780 709 FINANCIAL REVIEW FINANCIAL & OPERATING ABOUT TABCORP Tabcorp operates three RESPONSIBILITY CORPORATE market leading businesses We are an Australian based company with a rich heritage in lotteries and wagering. We manage iconic Australian brands which ignite passion and excitement in millions of customers. $5.7 billion We also have international operations, with the European based Premier Gateway Revenues GOVERNANCE International wagering pooling hub and the US based Sky Racing World vision distribution hub and licensed tote provider. We offer a unique portfolio of market leading products through our omni-channel REPORT network: in retail, online, phone, and apps. $6.7 billion DIRECTORS’ Net assets Our goal is to build a sustainable future for gambling entertainment while making a positive impact for our stakeholders. Our operations return billions of dollars each year to the Australian community, REPORT REMUNERATION the racing industry and venue partners including newsagents, hotels, clubs and $4.9 billion TAB agents. Benefits to stakeholders REPORT FINANCIAL For the financial year ended 30 June 2021 (FY21), or as at 30 June 2021, as applicable. Tabcorp Annual Report 2021 01 OUR VISION AND PURPOSE Our vision is to be THE TRUSTED GAMBLING ENTERTAINMENT COMPANY Our purpose is EXCITEMENT WITH INTEGRITY We create excitement and value We work collaboratively with We do this by delivering on our for our stakeholders while acting all our stakeholders to achieve strategic pillars, modelling our responsibly and with integrity. success in a responsible, enjoyable values in our behaviours, and and sustainable manner. leveraging our strong foundations. Our Strategic Pillars Customer Led Superb Experience Brilliant Execution Collaborative Partnerships Our Values Do it as one team Do the right thing Explore what’s possible Create awesome moments Make a difference Our Foundations Outstanding people Commitment to community Leading technology and teams and integrity and innovation 02 Tabcorp Annual Report 2021 CREATING STAKEHOLDER VALUE REVIEW FINANCIAL & OPERATING Tabcorp has a rich lotteries and wagering heritage. Our iconic Australian brands have been a part of everyday Australian life for decades, and they continue to provide entertainment $1.1b RESPONSIBILITY CORPORATE enjoyed by millions of Australians. Our unique business model generates significant economic $4.9b(i) benefits that are shared with our stakeholders. of total benefits $2.4b for our stakeholders (i) generated by Tabcorp’s In FY21, almost 70% of Tabcorp’s revenue was returned businesses in FY21 $0.7b to governments, racing industry and retail partners, totalling GOVERNANCE $4.2b(i) (up 7.7%). $0.4b These contributions support essential government-funded $0.3b community services and is a significant source of funding for our industry partners. REPORT DIRECTORS’ DIRECTORS’ In FY21, we continued to support our stakeholders during the State and Federal Retail partners Government taxes (Commissions to hotels, COVID-19 pandemic. Initiatives included providing approximately (Lottery, wagering and clubs, TAB agents, Keno taxes, GST, and newsagents and lottery $95m of fee relief for venue partners when they were unable to income taxes paid retailers) and payable) trade because of lockdowns. Employee costs REPORT REMUNERATION Racing industry (Salaries, training and We also contributed $9.1m in voluntary community funding (Payments to state and development) through donations, unclaimed prize money, in-kind giving territory racing industry bodies) Shareholders (ii) (Dividends paid and other support . and payable) (i) Total includes 100% of Victorian Racing Industry joint venture interest REPORT FINANCIAL and 100% of Keno NSW interest. (ii) Refer to the Community section on page 28 for further details. Tabcorp Annual Report 2021 03 CHAIRMAN’S AND MANAGING DIRECTOR’S MESSAGE The pandemic, and associated restrictions, We also sold our holding in Jumbo saw a continued shift to customers Interactive Limited, following the extension interacting and purchasing through of our long-standing commercial distribution digital channels across many sectors. partnership with Jumbo. The sale generated Our Lotteries and Keno and Wagering and gross proceeds of $98m. Our gearing ratio Media businesses recorded healthy digital (gross debt to EBITDA) now sits at 2.4 times, growth, underpinned by some of the recent against the target range of 2.5 to 3.0 times. investments we have made in digital capability. We are sharing the benefits of this Strategic review and demerger with our venue partners through a digital commissions initiative while continuing to The strategic review initiated by the Board in offer our products through an omni-channel March 2021 evaluated all relevant structural approach that puts customer choice front and ownership options to maximise value and centre. for shareholders. Our three-year enterprise-wide optimisation As part of the process, the Board engaged David Attenborough with a number of bidders who had program, called ‘3S’ (Simpler, Smarter, Steven Gregg Managing Director and Chairman submitted unsolicited, non-binding and Chief Executive Officer Stronger) continued to advance. The program delivered $30m in EBIT savings in indicative proposals to acquire our Wagering FY21. Further savings from the 3S program and Media business. The Board, together are expected in FY22. with its advisers, carefully considered these proposals. However, at the conclusion of its The 2020/21 financial year (FY21) saw the relating to the Gaming Services business review, the Board
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