TABCORP 2019 MACQUARIE CONFERENCE 30 APRIL 2019 EXCITEMENT WITH INTEGRITY AGENDA Item Slide Group Overview & Industry Context 3 Lotteries & Keno 11 Wagering & Media 16 Gaming Services 21 Conclusion 25 2 GROUP OVERVIEW & INDUSTRY CONTEXT TABCORP IS AUSTRALIA’S LEADING DIVERSIFIED GAMBLING ENTERTAINMENT GROUP VISION: THE TRUSTED GAMBLING ENTERTAINMENT COMPANY KEY FINANCIAL METRICS (CY18) o Tabcorp completed its combination with Tatts Group in ~$5.2B ~$1.0B Gaming Services 6% December 2017, creating a world-class gambling 14% entertainment group o We operate a diversified set of market-leading businesses, Wagering & Media 45% under a series of long-dated government-issued licences and authorisations 43% o We offer a unique combination of products and systems, and provide an excellent digital customer experience, integrated into an unrivalled network of 9,000 retail points of presence Lotteries & Keno 49% o We are a valuable long term partner to governments, the 43% racing industry and our retail network o At our core is a commitment to responsible gambling Revenue EBITDA 4 THE AUSTRALIAN MARKET IS LARGE AND GROWING AUSTRALIAN GAMBLING EXPENDITURE BY PRODUCT SEGMENT $23.6B $23.7B $22.7B 0.3 0.4 $21.2B $20.7B 0.3 2.2 2.0 $19.4B 0.3 CAGR FY12-17 0.3 2.0 0.3 2.0 2.2 3.9 4.4 TOTAL 4.1% 1.8 3.6 3.4 KENO 4.6% 3.2 3.0 LOTTERIES 2.5% 5.2 5.2 4.8 4.4 WAGERING 7.7% 3.7 4.1 CASINO 5.3% EGMs 2.7% 12.1 12.1 Keno Lotteries Wagering 10.6 10.8 11.1 11.6 Casino EGM’s FY12 FY13 FY14 FY15 FY16 FY17 5 Source: Australian Gambling Statistics 34rd Ed. 2018 WE PLAY AN INTEGRAL ROLE IN OUR INDUSTRY CREATING VALUE THROUGH COLLABORATION: INDUSTRY & GOVERNMENT (CY18) 1 EXAMPLE ~$2B Federal Taxes ~$1B o Sports and charity raffle backed by Tabcorp’s Charitable Games unit State ~$0.8B Wagering o Partnership with Sport Australia, the Australian Sports Foundation and / Lotteries the 50-50 Foundation Taxes o 100% not-for-profit raffle raising funds for charities and grassroots sport across Australia (ex WA and NT) o An efficient platform which helps not-for-profit organisations raise funds at no cost Commissions to Racing & sports State & Federal local business industry payments Govt taxes o A way of Tabcorp using its skills and resources to support charities and grassroots sport Note: 1 All figures include 100% of VICTAB JV 6 AT OUR CORE IS A COMMITMENT TO RESPONSIBLE GAMBLING Responsible Gambling (RG) involves the conduct of gambling in a manner whereby the potential for harm associated with gambling is minimised FY19 initiatives o Introduction of Take A Break for TAB o New RG micro-site to improve customer experience and knowledge of our harm minimisation tools as well as how to seek help, if necessary o National Consumer Protection Framework implementation in progress o Retail network supervision enhancements Ongoing and planned operational improvements o Tracking enhancements (AI) including real-time filters and further automated customer intervention o Further improvements to self-service harm minimisation tools (e.g. additional TAB Take A Break options) and simplified online customer experience 7 OUR BUSINESS IS DIVERSIFIED ACROSS GEOGRAPHIES AND PRODUCTS AND SECURED BY LONG - DATED LICENCES 1 NSW 2097 NSW 2050 VIC 2024 VIC 2022 QLD 2098 QLD 2047 SA 2100 KENO SA 2052 WAGERING TAS 2062 ACT 2064 ACT 2064 NT 2035 NSW 2050 NSW 2032 VIC 2028 4 QLD 2027 3 QLD 2072 4 NT 2021 SA 2052 2 GAMING SERVICES LOTTERIES TAS 2020 ACT 2050 NT 2032 TABCORP LICENCE / AUTHORISATION PORTFOLIO Notes: 1 Ordered by population 2 Tasmania lotteries operate under renewable five-year permits linked to Victorian (2020) and Queensland (2023) licences 8 3 Monitoring Licences only 4 Indefinite rolling renewal capability REGULATORY CHANGES SUPPORT A MORE SUSTAINABLE INDUSTRY SYNTHETIC POINT OF ADVERTISING RESTRICTIONS CONSUMER PROTECTIONS LOTTERIES BAN CONSUMPTION TAXES o Synthetic lotteries are products o Wagering point of consumption o From March 2018, new o Amendments to Australia's where customers bet on the taxes are levied based on restrictions prohibited gambling gambling legislation have been outcome of a lottery rather than the location of the customer and advertising during live television, introduced or proposed to buying a ticket and directly commenced: radio and online sports broadcasts improve consumer protection participating in the draw between 5:00am and 8:30pm. o These include prohibitions on ✓ 1 July 2017 in SA Live broadcasts of racing events o Synthetic lottery and Keno wagering operators offering online and the advertising of lotteries products prohibited since 9 ✓ 1 October 2018 in in-play betting, credit and certain are exempt January 2019 Queensland forms of inducements ✓ 1 January 2019 in NSW, o The prohibition of wagering Victoria, ACT and WA advertising on roads, public transport and associated infrastructure in Victoria has also been implemented o Enhanced restrictions on inducements in NSW 9 EACH BUSINESS IS WELL POSITIONED FOR LONG - TERM PROFIT GROWTH LOTTERIES AND KENO WAGERING AND MEDIA GAMING SERVICES o Focused on unlocking further upside from o Tabcorp’s unique combination of assets creates o Unique opportunity to be services partner of developing a contemporary retail footprint an increasingly differentiated customer choice for gaming venues with a technology experience and service proposition platform that connects suppliers, regulators and o Digital growing strongly and supports increased venues engagement with new and existing customers o Focus on driving integration and brand migration from UBET to TAB and delivering o Combination of MAX, TGS and eBET has o Proven track record in game portfolio superb experience and products across all management and innovation created opportunity to consolidate and refresh states branding o Keno to benefit from scale and expertise from o Media remains an important differentiator with a integration with Lotteries o Good progress on managing extension of key focus on expanding, innovating and contracts in the near term o Ban on synthetic lottery and Keno betting from modernising the experience January 2019 enhances regulatory certainty o Role as government-licensed monitor partially o Introduction of POCT, ban on online in-play mitigates inherent category regulatory risk betting on sport and offer of credit by operators, and changes to advertising laws create a more sustainable industry 10 LOTTERIES AND KENO LOTTERIES AND KENO - SCALE, BROAD APPEAL, WIDELY ACCEPTED $ 2 . 5 B REVENUE (CY18) $ 447M EBITDA (CY18) LOTTERIES TURNOVER BY PRODUCT - C Y 1 8 ( $ B ) 3.0 1 1 LOTTERIES 3,700+ OUTLETS KENO 3,600+ OUTLETS Other Set for Life 2 2 LOTTERIES 472M TICKETS KENO 106M TICKETS 2.0 Instants Oz Lotto 2.98M ACTIVE REGISTERED 38K ACTIVE REGISTERED 1 1 CUSTOMERS CUSTOMERS 1.0 Sat, Mon/Wed Powerball Notes: 12 1 As at 31 December 2018. Active customers are measured on a rolling 12 month basis 0.0 2 12 months ended 31 December 2018 Base Games Jackpot Games WE HAVE A CLEAR SET OF PRIORITIES TO CONTINUE TO DRIVE PROFITABLE GROWTH SUPERB BRILLIANT COLLABORATIVE CUSTOMER LED EXPERIENCES EXECUTION PARTNERSHIPS Relaunched Powerball Enhanced digital app and Development of new retailer remuneration model social media engagement EXAMPLES 13 CUSTOMER - LED GAME INNOVATION o Powerball game changes are delivering: o New customer acquisition – from bigger jackpots, more JACKPOT PERFORMANCE (POWERBALL & OZ LOTTO) often 70 41.0 o More winners overall (up c.55-75%) – from additional $37.8m prize division 60 36.0 o Increased brand awareness, purchase intention and $28.8m $28.4m 31.0 50 belief in winning Model expectation is $24.2m 26.0 6 now 38 (was 31) 40 o Number of actual large jackpots to date has already reached 21.0 11 full year model (theoretical) outcomes 30 2 4 16.0 o Powerball game change should lift number of large 11.0 20 39 ($15m+) jackpots from 16 to 23 p.a. based on model 29 28 28 6.0 outcomes 10 1.0 - actual 10 months to 30 April 2019: 23 0 -4.0 FY16 FY17 FY18 FY19 YTD o Oz Lotto expected to deliver 15 large jackpots p.a. based Number of jackpots $15M - $49M Number of jackpots $50M or more on model outcomes Average value of jackpot offer at $15M or more - actual 10 months to 30 April 2019: 16 14 ACCELERATED DIGITAL GROWTH AND ENHANCED C U S T O M E R ENGAGEMENT DIGITAL SHARE OF TURNOVER o Digital up 64% in 1H19 – now represents 21.5% of Lotteries turnover o Investing in superb digital experiences o Significant investment in digital platforms (thelott.com, app) and fully integrated marketing campaigns o Building stronger integration between retail and digital experience o Collaborating with our retail partners o New retailer remuneration model1 seeks to align retailers with the ongoing digital opportunity Notes: 15 1 Subject to regulatory approvals will be implemented from 1 July 2019 in all Tabcorp operated markets other than SA WAGERING AND MEDIA WE ARE THE MARKET LEADER IN AUSTRALIAN WAGERING ~57% revenue >720K ~1.1B bets taken annually % market share active accounts Market leading yield >4,400 venues % management 71% unprompted ~$1B returns Multi-platform, market- brand awareness to industry partners leading racing vision 17 OUR STATEGY AIMS FOR LONG TERM PROFITABLE GROWTH IN REVENUE MARKET SHARE WHERE WE ARE WHERE WE ARE A WHERE WE WERE B TODAY C GOING o Unrivalled retail platform o Integrated retail/digital business (50:50 mix) o TAB: The home for punters o Heritage in racing o More customer-led product innovation and o Leading innovation o Significant presence in Vic & NSW unique experiences o Trust, superior experience, great value o Strong partner to government and o Competing strongly to retain and grow o Profitably growing revenue market share industry customer base o Transitioning UBET to flagship TAB brand 18 WE ARE DELIVERING ON KEY STRATEGIC INITIATIVES o Increased and more contemporary customer offers and campaigns o PUNTER Enhanced responsible gambling initiatives – ‘Take A Break’ o Commenced in-venue CRM and location based marketing EXPERIENCE o Increased social media interactions through the Spring Racing Carnival o New Loyalty Program - TAB Rewards Phase 1 o Launched ‘The Edge’ for sports and in-development for racing PRODUCT o Launched Same-Game-Multi o Pari-mutuel product innovation (e.g.