Investor Presentaiton

Contract Term The Government proposes setting the same term for the funding arrangements, licence, retail exclusivity and operation of an off-course totalisator Licence Term in Other Jurisdictions 15 yrs 20 yrs. NSW 12 yrs VIC 12 yrs 15 yrs 15 yrs SA QLD ACT 30 yrs 15 yrs 20 yrs NT 20 yrs 15 yrs TAS 50 yrs 50 yrs 50 yrs 99 yrs 99 yrs 99 yrs Comments • As part of the initial phase of consultation, racing industry representatives expressed support for a term of 25 years, or longer if this can result in higher sales proceeds A term of 25 to 30 years appears to be sufficient to align the interests of the operator to invest in and operate the TAB for the long-term growth and prosperity of the three racing codes in Western Australia A significantly shorter term may dis-incentivise an operator from investing in the business, which may then limit returns generated for the racing industry A significantly longer term may not necessarily result in materially higher sales proceeds due to the time value of money (i.e. the diminishing value of future returns due to discounting) and the uncertainty of the operating environment beyond 30 years ■Exclusivity ■Licence term Exclusivity extension Consultation Forums | Future of the Western Australian TAB 12 12

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