annual report 2014 vision Flemington is a world leader in thoroughbred racing, event management and entertainment values The day-to-day activities of VRC employees are underpinned by the following values: Integrity Acting with integrity in all that we do. Innovation Encouraging and embracing innovation to achieve continuous improvement. Excellence Setting the highest standards in service and value for our Members, customers and business partners. Collaboration Valuing and respecting the commitment and contribution of all of our people and expecting collaboration across our teams. Safety and Sustainability Providing a safe and environmentally friendly workplace and venue for people, customers and industry participants. 1 celebrating 150 years 9 prizemoney 16 awards 2 board of directors 12 2014 melbourne festival 17 VRC people of racing 18 acknowledgements 4 our results 12 membership 19 partnerships 5 chairman and 12 racing rewards chief executive’s report 20 VRC in the community 13 VRC 150th anniversary 5 the year in review 13 masterplan 22 executive general managers 8 racing 16 technology 23 risk and corporate governance 9 2013 melbourne cup 16 digital 25 fi nancial statements carnival economic impact celebrating 150 years The Victoria Racing Club evolved from the merging of two earlier rival clubs, The Victoria Turf Club (1852) and the Victoria Jockey Club (1857) – both of which had previously run their own separate racemeetings at Flemington Racecourse. The Victoria Racing Club was officially formed on 9 March 1864 vision at the famous Scott’s Hotel, Collins Street, Melbourne. This year, we celebrate 150 years of colour and excitement, Flemington is a world leader in thoroughbred racing, of sights and sounds, of fabulous fashion, of moments event management and entertainment and memories. values The day-to-day activities of VRC employees are underpinned by the following values: Integrity Acting with integrity in all that we do. Innovation Encouraging and embracing innovation to achieve continuous improvement. Excellence Setting the highest standards in service and value for our Members, customers and business partners. Collaboration Valuing and respecting the commitment and contribution of all of our people and expecting collaboration across our teams. Safety and Sustainability Providing a safe and environmentally friendly workplace and venue for people, customers and industry participants. 1 celebrating 150 years 9 prizemoney 16 awards 2 board of directors 12 2014 melbourne festival 17 VRC people of racing 18 acknowledgements 4 our results 12 membership 19 partnerships 5 chairman and 12 racing rewards chief executive’s report 20 VRC in the community 13 VRC 150th anniversary 5 the year in review 13 masterplan 22 executive general managers 8 racing 16 technology 23 risk and corporate governance 9 2013 melbourne cup 16 digital 25 fi nancial statements carnival economic impact AnnuAl RepoRt 2014 — 1 board of directors Michael Burn Date joined Committee/Board Current racing interests Chairman, member November 2003 Racehorse owner of the Audit and Risk Business interests Interests outside of racing Management Committee Executive Director Macquarie Family, golf and snow skiing and member of the Capital, Member of Council Masterplan sub-committee and Chair of Finance Committee Bachelor of Commerce Loreto Mandeville Hall University of Melbourne Amanda Elliott Date joined Committee/Board Current racing interests Vice Chairman and July 2002 Racehorse owner member of the Masterplan Business interests and breeder sub-committee Director Pastoral and Investment Interests outside of racing Bachelor of Arts (Hons) Companies, City of Melbourne Advisory Family and friends, tennis, University of Melbourne Board for Melbourne Spring Fashion golf, theatre, film, restaurants, Week, Member of the Australian Stud travel, agriculture, gardens Book Committee and interior design John O’Rourke Date joined Committee/Board Current racing interests Honorary Treasurer, member December 2011 Racehorse owner, Member of the Audit and Risk Business interests VRC, Melbourne Racing Management Committee and Director Plenary Group Pty Ltd, Club and Moonee Valley member of the Masterplan Plenary Health Holdings Racing Club sub-committee (Comprehensive Cancer Centre) Interests outside of racing Bachelor of Commerce Pty Limited, Plenary Conventions Golf, Richmond Football Club University of Melbourne, Pty Limited, Flagship Property Graduate Diploma Holdings Pty Ltd in Finance RMIT Tim Poole Date joined Committee/Board Current racing interests Honorary Treasurer July 2006 Racehorse owner (resigned March 2014) Business interests Interests outside of racing Bachelor of Commerce Non-executive Chairman Lifestyle Family, golf and running University of Melbourne, Communities Limited, Westbourne Associate of the Institute Credit Management Limited, of Chartered Accountants Continuity Capital Partners Pty Ltd, LEK Consulting Advisory Board, Investment Committee of AustralianSuper Pty Ltd. Non-executive Director of Newcrest Mining Limited, AustralianSuper Pty Ltd. Peter Fekete Date joined Committee/Board Current racing interests Member of the Audit and Risk July 2000 Racehorse owner Management Committee and Business interests Interests outside of racing member of the Masterplan Chairman Thoroughbred Racing Skiing and football sub-committee Productions (VIC) Pty Ltd, Director Bachelor of Business ThoroughVisioN Pty Ltd, and (Accounting) a number of non-listed investment Swinburne University companies. Member of the Finance Fellow of the Institute and Investment Committee for of Chartered Accountants the National Stroke Foundation Australia (FCA) Paul Leeds Date joined Committee/Board Current racing interests Associate Fellow April 2002 Racehorse owner of Australian Institute Business interests and breeder of Management Vice President National Stroke Interests outside of racing Foundation, Board Director Family, art, food, wine, travel, Collingwood Football Club, Board collectables and football Director Radio 3UZ Pty Ltd and 3UZ Pty Ltd, Chairman Twenty3 Sport+Entertainment, Chairman Australian Made Media, Advisory Board Menzies Art Brands 2 — Victoria racing club Katherine Bourke Date joined Committee/Board Interests outside of racing Bachelor of Laws, Master July 2004 Hawthorn Football Club, of Laws and Bachelor of Arts Current racing interests food, wine and travel University of Melbourne, Racehorse owner and breeder Member of the Victorian Bar 1989–2007, Chairman of the Bookmakers and Bookmakers’ Clerks Registration Committee 2000–2007, Judge of County Court of Victoria 2007 Elisa Sturzaker Robinson Date joined Committee/Board Current racing interests Member of the Masterplan May 2011 Racehorse owner sub-committee Business interests Interests outside of racing Bachelor of Laws and General Manager – Industry Geelong Football Club, Bachelor of Commerce Management at NBN Co, speaking Kooyong Lawn Tennis Club, Monash University, admitted engagements on diversity and women property development, to the Supreme Court in leadership, business and sport travel, food, art, fashion, of Victoria, Postgraduate sports, including skiing Management Studies and running Melbourne Business School Michael Ramsden Date joined Committee/Board Current racing interests Member of the Audit and December 2012 Part owner of approximately Risk Management Committee Business interests 45 horses, including The Offer, Bachelor of Economics Managing Director Terrain Capital Ltd, Chautauqua, He’s Your Man Monash University, Chairman Australian Mines Ltd, and Merion Bachelor of Laws Monash Chairman Lowell Capital Ltd, Chairman Interests outside of racing University, Fellow of the African Mahogany (Aust) Pty Ltd Golf, surfing, football, wine Financial Services Institute and food of Australasia Neil Wilson Date joined Committee/Board Current racing interests Bachelor of Business December 2012 Racehorse owner (Accounting) (MIS), Business interests and breeder Certified Practicing Chief Executive Officer and Interests outside of racing Accountant (CPA) Managing Director Oakton Limited Family, running and travel Julian Sullivan Date joined Committee/Board Current racing interests Acting Chief Executive March 2014 Racehorse owner April 2014 – present Business interests and breeder Bachelor of Business, Board Director Connery Pty Ltd, Interests outside of racing Graduate Diploma Board director The Bloodstock Business Collingwood Football Club, Business Management, food, wine and travel Monash University David Courtney Date joined Committee/Board Current racing interests Chief Executive December 2012 Member VRC December 2012 – April 2014 Business interests Interests outside of racing Bachelor of Business RMIT, Former Chief Executive of the Family, beach, snow skiing MBA Monash University, Victoria Racing Club and sailing Fellow of the Institute of Chartered Accountants annual report 2014 — 3 our results 2013/14 snapshot racing net profit $ 2013/14 result 14 11 group one group two races races $ 3 . 4 m charitable giving $ 2013/14 result 17 32 group three listed races races contributed$ 1 to charitable m causes through VRC fundraising partnerships and donations 2013 melbourne cup carnival 2013 melbourne cup carnival economic impact $ 2013/14 result 483 37 horses participated, races were run with an average of 13.1 runners $ 3 6 4 . 5 m per race in gross economic benefit to Victoria Source: IER economic impact report The Emirates In Australia internationally trained runners Melbourne Cup in the emirates melbourne cup