New Zealand Thoroughbred Racing Annual General Meeting Presentation - PowerPoint PPT Presentation

New Zealand Thoroughbred Racing Annual General Meeting Presentation by the Presentation by the Chairman and Chief Executive ���������������

��������������������������� FY13 FY13 Description Variance Budget Actual Number of race meetings (actual/scheduled) 366 358 (8) Number of races (conducted/scheduled) 3,040 3,007 (33) NZRB funding (net of RIU costs) 71,371,152 73,412,267 2,041,115 NZTR nominations and acceptance 3,482,050 2,870,338 (611,712) NZTR race day services & other racing income 915,000 981,449 66,449 NZTR operating income 3,244,287 2,946,515 (297,772) Stakes funding (47,511,517) (47,169,600) 341,917 Club & meeting funding Club & meeting funding (19,686,217) (19,686,217) (19,276,703) (19,276,703) 409,514 409,514 NZRB servicing charges (3,820,053) (3,758,987) 61,066 NZTR operational expenses (5,802,258) (5,779,368) 22,890 Special projects (410,000) (166,508) 243,492 Industry marketing initiatives (400,000) (301,367) 98,633 NZTR Surplus (before infrastructure) 1,382,444 3,758,036 2,375,392 Racecourse infrastructure provision (1,000,000) (2,000,000) (1,000,000) NZTR Surplus (after Infrastructure) 382,444 1,758,036 1,375,592 FY13 NZTR operational expenses (excluding marketing) was under FY12 levels NZTR AGM 2013 Page 2

��������������� ������������������������ Description FY12 FY13 FY13 Result Actual Forecast Actual � 1. NZRB distributions to NZTR $69.6m $71.4m $73.4m 2. Prize money funded by NZTR * $44.4m $47.5m $47.2m ± � 3. Average minimum base prize money $14,503 $15,629 $15,687 4. Average field size 10.6 10.7 10.4 × 5. Females as % of individual winners 5. Females as % of individual winners 45.8% 45.8% 47.2% 47.2% 47.0% 47.0% ± ± � 6. NZTR operating expenses (excl. marketing) $5.45m $5.80m $5.78m 7. Ownership participation 12,462 12,504 12,106 × 8. Race meeting attendance * 480K 510K 487K ± 9. Races conducted * 3,061 3,040 3,007 × 10.NZRB thoroughbred international royalties * $9.3m $10.6m $9.5m ± * 10 of 39 KPI’s were impacted by the abandonment of a record 101 races in FY13 NZTR AGM 2013 Page 3

��������������������������� � Full details of can be found in the NZTR Performance Report 2013 at www.nzracing.co.nz NZTR AGM 2013 Page 4

�!"#�$����������������%������������������������� NZTR Profit and Loss Net Current Assets $3,499,519 (inc infrastructure provision) $5.36m $2,069,892 $3.59m $101,785 $2.20m FY08 FY09 FY10 FY11 FY12 FY13 (F) $2.95m -$570,231 $0.23m -$3,151,743 FY08 FY08 FY09 FY09 FY10 FY10 FY11 FY11 FY12 FY12 FY13 (F) FY13 (F) -$3,947,244 -$3,947,244 ($0.34m) ($0.34m) Net Assets NZRB Distribution $6.99m (including normalised for RIU) $5.27m $5.84m $79.9m $76.8m $73.5m $3.49m $69.9m $68.0m $67.2m $1.42m $1.32m FY08 FY09 FY10 FY11 FY12 FY13 (F) FY08 FY09 FY10 FY11 FY12 FY13 (F) NZTR AGM 2013 Page 5

������!#��&�'����'������������ Races Covered by NZRB NZRB International Royalties and Domestic EBIT 69,163 $163.2m 59,173 $158.5m $148.7m $148.5m $146.4m 52,910 $142.5m 28,976 $138.4m 45,426 $127.0m $124.1m $18.9m 23,959 $19.5m $115.4m 21,698 $13.3m 35,559 $19.3m $10.4m 17,574 15,695 12,171 13,443 12,704 11,750 9,796 $123.6m $118.9m 24,492 $113.7m 21,771 $105.0m $104.8m 18,508 16,102 13,592 FY09 FY10 FY11 FY12 FY13 Total Thoroughbred races covered by NZRB FY09 FY10 FY11 FY12 FY13 Forecast Total Harness races covered by NZRB Total Harness races covered by NZRB NZRB Domestic EBIT NZRB Domestic EBIT International Royalties International Royalties NZRB Expenses NZRB Expenses Total Greyhound races covered by NZRB Domestic Thoroughbred as % Races/Sales NZRB Domestic Sales by Code 34.4% 33.8% 31.7% 30.6% 29.0% 54.9% 53.5% 53.6% 53.8% 53.8% 53.3% 32.8% 32.2% 31.0% 30.3% 29.2% 29.3% 8.7% 6.8% 5.8% 5.2% 4.3% 17.0% 17.4% 15.9% 14.2% 14.1% 13.7% FY09 FY10 FY11 FY12 FY13 Domestic Thorougbred as Percentage NZRB Sales FY08 FY09 FY10 FY11 FY12 FY13 Domestic Thorougbred as Percentage Races Covered Domestic Thoroughbred Domestic Harness Domestic Greyhound NZTR AGM 2013 Page 6

����� ������������������������ Comparison of Totalisator Turnover on New � Totalisator turnover on New Zealand Zealand races FY13 thoroughbred races was higher in $364.7m $339.8m Australia than in New Zealand for the second successive year $217.8m $182.0m � This trend is likely to continue in $144.5m perpetuity $102.7m � Thoroughbred royalties have been impacted by: impacted by: Thoroughbred Harness Greyhound NZRB Totalisator Sales on New Zealand Races NZRB Totalisator Sales on New Zealand Races Australian Totalisator & FOB Sales on New Zealand Races Australian Totalisator & FOB Sales on New Zealand Races • Unfavourable exchange rate issues • 119 less thoroughbred races Royalties Paid by Australian Wagering Operators on NZ Thorougbred Racing covered by Tabcorp $9.5m • Reduced Sky 1 coverage Monday $9.3m $8.8m $8.4m through Friday post 2pm races $7.4m � FY13 average export turnover by race was up 6.1% in $AU � Promotion of New Zealand thoroughbred racing in Australia remains poor FY09 FY10 FY11 FY12 FY13 NZTR AGM 2013 Page 7

"(����'(���%��������)������#�������$(�����'��'� Owners Participation Individual Starters and Races 12504 12510 12462 12349 12106 5,826 5,794 19 22 5,682 21 5,610 21 22 5,481 254 265 251 255 243 1494 1466 1462 1505 1394 3327 3218 3549 3021 3461 3,088 3,068 3,048 3,061 3,007 7427 7509 7426 7192 7107 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Number of individual starters Number of races <0.25 <=0.25<1 <=1<3 <=3<10 <=10 Average Field Size Licensed Trainers and Jockeys 12.00 11.1 10.9 10.7 10.6 1,237 10.4 1,224 1,203 1,166 1,151 10.00 8.00 5.9 5.8 5.7 5.8 5.7 6.00 227 221 219 213 205 4.00 2.00 FY09 FY10 FY11 FY12 FY13 0.00 FY09 FY10 FY11 FY12 FY13 Jockeys, Apprentices, Amateurs Licensed Trainers NZTR AGM 2013 Page 8

FY14: Looking further down the track NZTR AGM 2013 Page 9

�!"#����*�(��%��������)������������+��)������, Owners - Future Level of Participation Trainers - Future Level of Participation 50.0% 44.0% 37.0% 29.0% 27.0% 13.0% Decrease level of Increase level of Maintain level of involvement involvement involvement It has decreased It has increased It is about the same Breeders-Future Level of NZTR Performance Compared to 3 Participation Years Ago 50.0% 39.0% 38.0% 37.0% 24.0% 12.0% It has decreased It has increased It is about the same Improved Unchanged Declined NZTR AGM 2013 Page 10

�������� ����������������*�(��%��� Owners Trainers Breeders � � � Increasing Prize money Involvement of future costs/decreasing return generations in racing � Increasing costs on investment � Profitability down, costs � Programming of races � Poor overall racing rising experience/facilities � Retaining clients � Prize money � Declining interest from � Finding new owners � Service fees new shareholders new shareholders � Quality of training tracks � Loss of interest in racing � Affordability and facilities � Economic climate � Fees – nominations, � Lack of track work riders acceptances, riders � No breeding incentives � Quality of tracks � Fostering interest and participation in racing � Professionalism of track riders � Weakness of domestic racing NZTR AGM 2013 Page 11

�!"#-��������'���$(�����'� � Research carried out by Interbrand highlighted the following critical challenge: New Zealanders do not see thoroughbred racing as ‘fashionable’ or o ‘relevant’ to them New Zealand Thoroughbred Racing needs to redefine itself as more o exciting, relevant and engaging to generate growth in on-course attendance, ownership and wagering � For 150 years the New Zealand racing industry has: Looked ‘inside-out’ to develop strategies of improvement, catering o to a shrinking participation base (prizemoney, races per day to best suit club operations, etc), now 6% of New Zealanders Need to look ‘outside-in’ to grow participation and engage a o proportion of the 94% NZTR AGM 2013 Page 12