Racing Australia_Annual Report 2021_A4_v16_FA_Single Pages

www.racingaustralia.horse ANNUAL REPORT 2021 Financial Year Ended 30 June 2021

RACING AUSTRALIA ANNUAL REPORT 2021 1 CONTENTS Board of Directors 2 About Racing Australia 4 Our Shareholders 5 Chairman’s Report 6 Chief Executive Officer’s Report 8 Racing and Breeding Operations Report 12 Integrity Report 14 Equine Welfare and Traceability Report 16 Service Standard Performance Report 18 Racing Australia Events 22 At a Glance 28 Key Statistics 29 Financial Report 30 Directors’ Report 31 – 34 Auditor’s Independence Declaration 35 Statement of Profit or Loss and Other Comprehensive Income 36 Statement of Financial Position 37 Statement of Changes in Equity 38 Statement of Cash Flows 39 Notes to the Financial Statements 40 – 51 Directors’ Declaration 52 Independent Auditor’s Report 53 VISION • To be Australia’s favourite sport • To conduct the world’s best races • To be the world’s leading Thoroughbred Racing Industry CORE FUNCTIONS • National Rules • National Integrity • National and International Advocacy • National Coordination • National Research and Analysis • Identify and Maximise Best Practice • National Efficiency/Back Office • Recognise and reward excellence in the industry • Communicate our role • Seek to identify emerging issues including Animal Welfare and provide leadership via a common policy approach including minimum standards CORE OBJECTIVE • Leverage existing assets further and identify new commercial opportunities Left: Mugatoo (IRE) ridden by Hugh Bowman wins the All-Star Mile at The Valley, 13-Mar-2021. (Photo courtesy of Racing Photos) Cover images: Main: Verry Elleegant and James McDonald after the mares four-length win in the Kia Tancred Stakes at Rosehill Gardens Racecourse, 28-Mar-2020. (Photo courtesy of www.bradleyphotos.com.au). Not A Single Doubt (75 Stakes Winners and 152 Stakes Wins) retired from Stud Duties in 2020. (Photo courtesy of Arrowfield Stud). Racing Australia's Equine Genetics Research Centre.

2 RACING AUSTRALIA ANNUAL REPORT 2021 BOARD OF DIRECTORS AS AT 30 JUNE 2021 JOHN MESSARA AM Independent Director Chairman Appointed: 31/05/2021 Appointed Chairman: 31/05/2021 Current positions • Chairman and Founder, Arrowfield Group Limited Previous positions • Chairman, Racing Australia • Chairman, Racing NSW • Vice-Chairman, Asian Racing Federation • Member, Australian Pattern Committee • Chairman, Australian Racing Board • Chairman, Aushorse Marketing • President, Thoroughbred Breeders Australia Ltd • Chairman, Stargames Ltd • Member, Sydney Stock Exchange Awarded Member of the Order of Australia in 2008 for service to the Thoroughbred horseracing industry, particularly through the introduction of best practice initiatives in the areas of reproduction and stud management. RUSSELL BALDING AO Racing NSW Nominated Director Appointed: 01/01/2017 Current positions • Chairman, Racing NSW • Deputy Chairman of Destination NSW • Director, The Trust Company (Sydney Airport Ltd) Previous positions • Deputy Chairman, Racing Australia • Chairman of Cabcharge Australia Limited • Director, ComfortDelGro Cabcharge Pty Ltd • Director, CityFleet Networks Ltd (UK) • Chairman of the Visitor Economy Taskforce • Chief Executive Officer of the Sydney Airport Corporation • Managing Director of the Australian Broadcasting Corporation (ABC) • Director of Funding and Support Services and CFO of the Australian Broadcasting Corporation (ABC) • Director of Finance at the NSW Roads and Traffic Authority Awarded Officer of the Order of Australia in 2007 for service to the Australian broadcasting industry, particularly through initiatives in the areas of service delivery, advanced technology and financial management, and to the accounting profession through CPA Australia. Alternate Director – Peter V’landys AM GREG NICHOLS Racing Victoria Nominated Director Appointed: 31/12/2016 Current positions • Director, Racing Victoria • Director & Principal, Vision Racing & Sport • Director, International Federation of Horseracing Authorities • Vice Chairman, Asian Racing Federation • Member, International Race Planning Committee • Member, Asian Pattern Committee • Member, Australian Pattern Committee Previous positions • Chairman, Racing Australia • Managing Director, Sporting Affairs, Betfair Group Limited • Chairman & Non-Executive Director, Timeform • Non-Executive Director, Betfair Australasia • Chief Executive & Executive Director, British Horseracing Board • General Manager – Industry Racing, Racing Victoria • Chief Executive, South Australian Thoroughbred Racing Authority Alternate Director – Brian Kruger

RACING AUSTRALIA ANNUAL REPORT 2021 3 STEVEN WILSON AM Racing Queensland Nominated Director Appointed: 01/04/2016 Current positions • Chairman, Racing Queensland • Director, Centre for Independent Studies • Chairman, Committee for Brisbane Advisory Council • Director, Queensland Rugby Union Foundation Previous positions • Chairman, Wilson Group Ltd, Pinnacle Investment Management, Hyperion Investment Management, Southbank Corporation, St John’s Cathedral Completion Fund, and Queensland Rugby Union • Director, Telstra Corporation, Tourism Queensland and Great Barrier Reef Foundation • Councillor, Queensland University of Technology He was awarded an Order of Australia for services to the finance industry and community and the BDA Gold Medal award for his role in transforming South Bank. Alternate Director – Brendan Parnell ROB RORRISON Racing SA Nominated Director Appointed: 30/04/2021 Current positions • Executive Chairman, Climate Capital Pty Ltd • Senior Advisor, Taylor Collison Limited • Non-Executive Director, Baiyin International Investments Limited • Chairman, Racing SA Limited Previous positions • Chairman Resources Asia, Macquarie Capital Limited • Executive Director, Macquarie Capital Limited • Non-Executive Director, Banro Corporation Limited • Chairman, Twenty Seven Co. Limited Background in Corporate Finance and held a number of Australian and international private and public company Board positions. Alternate Director – Nick Redin JEFF OVENS Racing and Wagering Western Australia Nominated Director Appointed: 1/08/2018 Current positions • Chairman, Racing and Wagering Western Australia • Managing Partner, Hackersley Estate Winery • Fellow of the Australian Institute of Company Directors Previous positions • Director, Bethesda Hospital, Claremont WA • Commissioner and CEO, West Australian Football Commission • Advisory Board, Cottesloe Surf Life Saving Club • Director, Underwater World, Sentosa Island Singapore • Director, Cable Beach Club Joint Venture Broome WA Alternate Director – Ian Edwards ROBYN WHISHAW Tasracing, Canberra Racing Club and Thoroughbred Racing NT Nominated Director Appointed: 21/06/2021 Current positions • Non-Executive Director (Thoroughbred), Tasracing • Director, Armidale Pty Ltd • Member, Tasmanian Turf Club • Life Member, Thoroughbred Breeders Tasmania • Member, Tasmanian Racehorse Owners Association Previous positions • Chair, Tasmanian Thoroughbred Advisory Network • Director, Scotch Oakburn College • Member, Tasmanian Racing Industry Working Group

4 RACING AUSTRALIA ANNUAL REPORT 2021 ABOUT RACING AUSTRALIA RACING AUSTRALIA LIMITED – THE COMPANY Racing Australia (RA) is the national body comprising Australia’s eight State and Territory Principal Racing Authorities (PRAs) which regulate the Thoroughbred racing and breeding industry. Racing NSW racingnsw.com.au Racing Victoria racingvictoria.com.au Racing Queensland racingqueensland.com.au Racing & Wagering Western Australia rwwa.com.au Racing SA racingsa.com.au Tasracing tasracing.com.au Canberra Racing Club thoroughbredpark.com.au Thoroughbred Racing NT trnt.org.au Our industry is one of the iconic industries of the nation with a long and proud history of achievement. As an industry, our economic contribution is around $9.5 billion with 51 per cent (or $4.8 billion) of economic activity generated in regional Australia. We provide jobs for approximately 75,000 Australians and nearly 160,000 participate in the Thoroughbred racing industry as a participant, employee or volunteer – 63 per cent of whom reside in regional areas. This includes 21,425 volunteers who assist and support racing clubs and participants. No industry or sport covers the breadth of our nation like Thoroughbred Racing. In September 2014, Racing Information Services Australia Pty Ltd (RISA) purchased the assets of the Australian Stud Book (ASB). Subsequently on 13 April 2015, RISA along with its assets merged with the Australian Racing Board (ARB) to form one entity named Racing Australia Pty Ltd. On 18 September 2015, Racing Australia Pty Ltd ultimately converted from a proprietary company to a public company named Racing Australia Limited. The primary objective for which Racing Australia was established is for the encouragement and promotion of horse races, by, amongst other things: a) e stablishing and conducting a national consolidated Racing Materials and information services business to service the Australian horse racing industry and other users of horse Racing Materials, including: 1. developing a consolidated national uniform and standard system for the collection, processing, storage, dissemination and protection of Racing Materials; 2. establishing and maintaining participation in such a consolidated national uniform and standard Racing Materials system by the Principal Racing Authorities and all others integral to the successful conduct of such system; and 3. developing procedures to maximise the integrity, and minimise duplication on and data cleansing costs, with respect to all Racing Materials collected, processed and disseminated in the conduct of such a system; b) a dopting, administering and altering the Australian Rules of Racing and the Rules of the Australian Stud Book; c) e nsuring the integrity of Thoroughbred breeding in Australia including by maintaining the officially published records of Thoroughbred bloodlines in Australia in the form of the Australian Stud Book complemented by the Australian Rules of Racing; d) m aintaining information regarding the ownership and identity of Thoroughbred racehorses for racing in Australia and for export including by acting as the Registrar of Racehorses complemented by the Australian Rules of Racing; e) to conduct an efficient low-cost operation; f ) t he allocation of surplus funds by way of grants, subventions, subsidies or other financial assistance to the Principal Racing Authorities in accordance with the principles of allocation set out in the Constitution for the purposes of encouraging and promoting horse racing in each of the states and territories of Australia under the control of the various Principal Racing Authorities.

RACING AUSTRALIA ANNUAL REPORT 2021 5 Racing Australia offices 35% 35% 1% 1% 1% 4.5% 4.5% 18% Sydney Scone (Equine Genetics Research Centre) Melbourne OUR SHAREHOLDERS Shareholder Breakdown % RACING AUSTRALIA OPERATIONS • R acing Australia regulates the Australian Thoroughbred Breeding and Racing Industry by the administration and amending of the Australian Rules of Racing and the Rules of the Australian Stud Book in adherence to world's best practice standards of integrity and animal welfare. • R acing Australia provides services to the Thoroughbred Industry and the broader Australia Horse Community via the Equine Genetics Research Centre that has three main pillars: genetic testing, integrity services, and research and development. • R acing Australia is a Software and Service company building and hosting in a private cloud the Single National System for the Australian Thoroughbred Racing Industry. Every core transaction of the industry on a national basis is now powered by the Single National System. • R acing Australia is a Bureau Services company delivering over the top of the Single National System a diverse range of services which fully manage the processing and management of industry functions. • R acing Australia is a content management and licencing company via the compilation of content, provision of systems to manage the content and the Copyright Licencing and Supply of Racing and Breeding Materials content.

6 RACING AUSTRALIA ANNUAL REPORT 2021 As Racing Australia’s first Independent Chairman I would like to thank the Directors for the opportunity and responsibility to continue the work and advances achieved by the outgoing Racing Australia Chairman, Greg Nichols, who remains on the Board as a Director representing Racing Victoria. Greg has made an excellent contribution as Chairman, particularly over the last 16 months, dealing with the many challenges our industry has faced due to the direct and indirect impacts of Covid-19. Australia has a dynamic and energetic Thoroughbred Racing and Breeding framework delivering returns to owners that are unprecedented. Returns to owners and participants has increased by approximately 82% in the last 10 years and that trajectory looks set to continue with the Total Returns available for racing season reaching over $870m. In the past year the economic resilience of the Australian Thoroughbred Industry was to the fore when Covid-19 restricted our movements and disrupted our daily lives. However, racing and breeding continued, maintaining employment and investment. Yearling sale results demonstrated that very same commitment by participants with the gross increasing year on year by over 30%. The value of the continuity of service provided by the Racing Australia Team during such a period of uncertainty should not be underestimated; racing continued, breeding continued and expansion in our regulatory framework continued to ensure the health and wellbeing of athletes, both equine and human. CHAIRMAN’S REPORT The Racing Australia Board has implemented initiatives in 2020/21 that will change the fabric of Racing and Breeding for the betterment of our sport. WORKFORCE DEVELOPMENT FORUM In a first for the Industry, Racing Australia with the Principal Racing Authorities, Godolphin and Thoroughbred Industry Careers hosted a Workforce Development Forum which provided a creative environment to share ideas to expand our workforce via the theme Obtain.Train.Retain. Left to right on Panel: Ciaron Maher, Toby Liston, Chris Waller, Katie Page, Lizzie Jelfs.

RACING AUSTRALIA ANNUAL REPORT 2021 7 Racing Australia continues to support a world’s best approach to Equine Welfare. In May, 2021 Racing Australia implemented a series of rules and associated technological developments within the Single National System, the Australian Stud Book and myhorseracing.horse that empower Industry participants to share information around the location and status of Thoroughbreds in their care, whether unnamed, named, breeding or into retirement. The purpose of this was to continue to pursue the goal of whole of life traceability, which is the very foundation of Biosecurity and Welfare outcomes. Racing Australia plays a determinative role in international racing affairs, most specifically in advocating and contributing to governance reform of the International Federation of Horseracing Authorities (IFHA), culminating in affirmation of all recommendations at the 2021 Annual IFHA General Assembly. The impending appointment of Winfried EnglebrechtBresges as Chairman of the IFHA is further confirmation that the strength of international Thoroughbred racing is pivoting towards the Asian/Australasian region. Due to Asia’s ascendency the potential upside for the Australian racing and breeding industries is significant. The opportunity for Australian racing and breeding to capitalise on this emerging change is one that should play a role in our future. I would also like to express our profound gratitude to Louis Romanet following his retirement as IFHA Chairman. Louis has devoted a lifetime to the promotion and betterment of Thoroughbred racing, and we extend our sincere appreciation for his commitment to evolve the Sport of Racing beyond its historical heritage. Additionally, Racing Australia is an integral and prominent member of the Asian Racing Federation (ARF), the leading regional racing authority. On a frustrating note, the 39th Asian Racing Conference, due to be hosted by Racing Victoria in February 2022, was deferred to February 2023 as the ARF Executive Council determined that the ongoing impact of the Covid-19 pandemic would most likely compromise the EQUINE GENETICS RESEARCH CENTRE Racing Australia supports the developments being explored by the Equine Genetics Research Centre and the global role the team plays in championing an understanding of medical technology and the importance of staying in front of any issues that could foreseeably compromise the integrity of our sport. success of the conference if we persevered with the original date. Racing Australia’s performance in the 2020/21 financial year would not have been possible without the contribution of our executive and staff. I would also like to express my thanks to every representative from the PRAs on the Racing Australia Board. The Racing Australia Board farewells and thanks past Chair Frances Nelson QC who represented South Australia and retired in April 2021 and we welcome her replacement, Rob Rorrison . Ian Mackay who represented Canberra Racing Club, Tasracing and Thoroughbred Racing NT retired in June 2021. The Racing Australia Board thanks Ian for his contribution and welcomes Robyn Wishaw, from Tasmania, who replaces him. The Racing Australia Board continues to map out the future vision for our sport and I believe that maintaining unity across the Thoroughbred Industry will be the key to Australia’s future efficacy and success in an ever competitive and changing world. John Messara AM Independent Director & Chairman Australia has a dynamic and energetic Thoroughbred Racing and Breeding framework delivering returns to owners that are unprecedented.

8 RACING AUSTRALIA ANNUAL REPORT 2021 Throughout the year Racing Australia continued to work collaboratively with the industry to advance the Australian Thoroughbred Racing and Breeding Industry nationally. For a second year the lives of Racing & Breeding participants nationally including the Racing Australia team across our offices in Sydney, Melbourne and Scone were impacted personally and professionally by the Covid-19 pandemic. With ongoing restrictions, lockdowns and COVIDSafe protocols requiring members of the Racing Australia team to work from home for extended periods of time, Racing Australia remained committed to the task at hand: • To keep racing going • T o maintain employment within our sport of up to 75,000 full time positions • To ensure Equine Welfare retains prominence During this time Racing Australia and its team of dedicated staff ensured undisrupted service to the Australian Thoroughbred Racing and Breeding Industry which was underpinned by the commitment and enthusiasm of its staff to continue to innovate, participate and implement new products and technologies. Despite the negative impacts of Covid-19 on some of Racing Australia’s services and associated revenue streams, the company continued to improve its financial position year on year. The revenue streams most impacted by Covid-19 were Race Club services, race meeting related revenues and Stud Book breeding, Import and Export revenues. Racing Australia’s undisrupted service to the Australian Thoroughbred Racing and Breeding Industry is underpinned by the commitment and enthusiasm of its staff to continue to innovate, participate and implement new products and technologies. International border closures and state-based quarantine requirements saw a reduction in imports and exports throughout the pandemic. With international borders reopening a revenue recovery for those impacted revenue streams has begun to materialise. The consolidated result inclusive of depreciation and amortisation was a deficit of $264,168. This result included two extraordinary items in 2020/21 being the payment of a Non-Repayable Grant of $3,000,000 paid proportionally to the Principal Racing Authorities in each state and territory and the impairment expense provision of $562,500 resulting from a timing difference in the supply of inventories. This provision will be reversed in 2021-2022. Excluding extraordinary items and depreciation and amortisation charges the consolidated result was a surplus of $5,681,743 versus the comparable result for 2019-2020 of a $5,259,568 surplus, an increase of $422,175. Excluding extraordinary items and depreciation and amortisation charges the consolidated result was a surplus of $5,681,743 versus the comparable result for 2019-2020 of a $5,259,568 surplus, an increase of $422,175. CHIEF EXECUTIVE OFFICER’S REPORT

RACING AUSTRALIA ANNUAL REPORT 2021 9 Addeybb (IRE) ridden by Tom Marquand in the Queen Elizabeth at Royal Randwick Racecourse, 17-Apr-2021. (Photo courtesy of www.bradleyphotos.com.au) Homesman (USA) ridden by Jye McNeil wins the Australian Cup at Flemington Racecourse, 06-Mar-2021. (Photo courtesy of Racing Photos) New South Wales Victoria

10 RACING AUSTRALIA ANNUAL REPORT 2021 CHIEF EXECUTIVE OFFICER’S REPORT Highlights for the 2020/21 financial year • C ash reserves increased by $2,430,446 to $8,342,045 when compared to 2019-2020. Of these cash reserves, $2,597,00 is held in trust for the Jockey Insurance Program on behalf of the Principal Racing Authorities to administer the insurance premium aggregate deductible, $420,000 is held in trust for the Racing Australia Research fund being $20 collected for each Thoroughbred registration and $41,000 is held in trust for the Statutory Levy being $10 collected from the lodgement of each mare return and $10 for every mare covered by stallions. The statutory levy is paid to Agrifutures for research into Thoroughbred breeding and racing. • T he payment of a Non-Repayable Grant of $3,000,000 paid to Racing Australia’s shareholders, the Principal Racing Authorities in each state and territory. • T he continued growth in outsourced service delivery to Principal Racing Authorities for licencing and Deputy Registrar functions. • C ontinued investment in the Single National System as the national data base for Principal Racing Authorities to operate their racing operations and the integration of the Australian Stud Book. • I nvestment in a New Zealand Thoroughbred Racing version of the Single National System for New Zealand Thoroughbred Racing leveraging synergies in business processes and systems creating a stronger partnership between the Australian and New Zealand peak racing authorities. Operational and technical developments implemented or developed during the year • I ntroduction of secure Owner identity verification via Passport, Drivers Licence or other documents using a highly secure and robust verification tool with 87.49% of Owner Verifications completed on the first attempt. • I ntegration and upgrade of Online Trainer tools in myhorseracing.horse portal replacing old standalone Stable Assist, linking Owner and Trainer related transactions in the industry portal. • O ngoing development and enhancements of Ownership related tools in the myhorseracing.horse portal enhancing the capacity of Trainers to complete transactions on behalf of Owners. • D evelopment of Breed Race Trace information campaign to support the implementation of new traceability rules. • E nhancement of systems and operations to support the implementation of the Traceability rules. • D evelopment and implementation of new enhanced welfare module within the Single National System that enables monitoring and reporting by Principal Racing Authorities of Thoroughbreds within their jurisdiction from birth to retirement from Racing and Breeding. • A recording tool that allows for non-industry participants to provide carer and location updates for horses that have left the industry. • O wners race day ticketing entitlements via RaceTix were enhanced with a new club management system simplifying the process of ticketing allocation, management and distribution for Owners and Race Clubs. • H orse ID App continued to be developed with a focus on expanding the Thoroughbred geographic location tracking. The strength of Racing Australia’s financial position and diversity of services continues to grow as outlined in this Annual Report. This growth would not be possible without the dedicated and committed Racing Australia staff who despite the challenges of the global Covid-19 pandemic have continued to be exceptional in exceptional times. I take this opportunity to thank the Racing Australia team. Thank you also to the Racing Australia Directors and Chairman throughout the year, firstly Greg Nichols and more recently John Messara following his appointment as an independent Director and Chairman. Myles Foreman Chief Executive Officer

RACING AUSTRALIA ANNUAL REPORT 2021 11 Clockwise from top left: Schooling ridden by Colin Hadden wins the Newman Cup at Newman Racecourse, 21-Aug-2021. (Photo courtesy of Western Racepix) Incentivise ridden by Anthony Allen showed blistering speed during the Queensland Winter Carnival 2020/21. (Photo: Michael McInally/ Racing Qld) Explosive Jack (NZ) ridden by John Allen wins the SA Derby at Morphettville Parks, 08-May-2021. (Photo courtesy of Racing SA) Newhart ridden by Craig Newitt wins the Mills Thomas Lyons Stakes, 07-Feb-2021. (Photo courtesy of Tasracing) Kalashnikov ridden by James McDonald wins The Black Opal Stakes at Thoroughbred Park, 07-Mar-2021. (Photo courtesy of www.bradleyphotos.com.au) Highly Decorated celebrates a Darwin Cup win ridden by Jessie Philpot, 02-Aug-2021. (Photo courtesy of Greg Irvine on behalf of TRNT) Northern Territory Tasmania South Australia Queensland Australian Capital Territory Western Australia

12 RACING AUSTRALIA ANNUAL REPORT 2021 Racing Australia provides extensive services to the Thoroughbred Industry across Racing and Breeding and continued to do so efficiently and effectively during 2020/21. The range of services that Racing Australia provides to the Thoroughbred Industry is expansive and operates 365 days a year. During the financial year 2020/21 the Signal National System (SNS) had continued enhancements to support industry participants to adhere to their obligations. The SNS provides trainers a uniform online platform to transact within racing no matter their location and during 2020/21 development finished within the SNS that allows trainers to transfer ownership interest on behalf of their clients. myhorseracing.horse (MHR) provides owners with the ability to manage the requirements of all horses within their care whether they are breeding, racing and for those who continue to care for their athletes once they have retired from racing and breeding. The breeding sector is serviced online by the Australian Stud Book and in 2021 the offering expanded to provide a facility to register breeding horses which recognised ownership. As well as providing services to industry participants the Racing Australia team provide bureau services for several of the Principal Racing Authorities (PRAs) including Deputy Registrar and management of breeder incentive schemes. With Covid-19 protocols required at Race Tracks, race day management had to change and Connect provided an invaluable service with efficient and on time communications via SMS and email. And while crowds may not have been in attendance the publication of digital race books continued to be popular with Race Clubs and Patrons. In the front of house supporting the Thoroughbred Industry is the Racing Australia Service Centre Service Team and the Australian Stud Book Owners and Breeders service team who provide in person service over the phone or via email. I would like to acknowledge all the team at Racing Australia who continued to ensure the core operations required for racing in Australia are managed effectively transitioning to working from home whilst maintaining Service Centre standards. Kellie Cook General Manager Racing and Breeding Services RACING AND BREEDING OPERATIONS REPORT Racing Australia provides extensive services to the Thoroughbred Industry across Racing and Breeding and continued to do so efficiently and effectively during 2020/21. With Covid-19 protocols required at Race Tracks, race day management had to change and Connect provided an invaluable service with efficient and on time communications via SMS and email.

RACING AUSTRALIA ANNUAL REPORT 2021 13 Photo courtesy of Eureka Stud (Sharon Lee Chapman Photography) Not A Single Doubt (Photo courtesy of Arrowfield Stud)

14 RACING AUSTRALIA ANNUAL REPORT 2021 Racing Australia is responsible for providing a regulatory framework which governs the industry’s effective operation. Key to this is our maintenance of a strong set of national rules, robust policies and procedures and delivery of reliable genetic testing – all of which seek to ensure that racing functions at the highest level of integrity, participants can operate in a safe and healthy workplace and positive equine welfare outcomes are achieved. INTEGRITY During the 2020/21 racing season, the Australian Rules of Racing were updated in February and May 2021, with 15 new or amended rules to strengthen integrity and safety measures. Some highlights include: • a new rule prohibiting blood doping • broadening of prohibited substances rules applicable to the presentation of horses at all official trials • stricter rules prohibiting jockeys from betting on races locally and internationally • a new rule restricting jockeys from receiving tactical riding instructions from anyone but the horse’s trainer or owners • new rules prohibiting the possession and administration of injectable cobalt salts • improved safety light requirements for jockeys riding in limited light Racing Australia has also continued to play an important role in the development of international racing policy and regulation, including through its involvement with the Asian Racing Federation (ARF) and International Federation of Horseracing Authorities (IFHA). We maintain a strong set of national rules, robust policies and procedures and delivery of reliable genetic testing – all of which seek to ensure that racing functions at the highest level of integrity. INTEGRITY REPORT TRACEABILITY In May 2021, the most significant welfare reforms since 2016 came into effect via a suite of new traceability rules, giving racing authorities a greater ability to track horses to help support improved equine welfare outcomes. Racing Australia successfully initiated, developed and drafted (in consultation with PRAs and industry stakeholders) the rules, which greatly improve transparency of horse status, movements and ownership throughout the entire horse life cycle. DISPUTE RESOLUTION At various times since Racing Australia’s introduction of the Trainer and Owner Reforms (TOR) in 2017, we have modified the scheme to ensure it continues to fulfil its intended function of providing a framework that regulates trainer/owner and owner/owner relationships. On 1 August 2021 a new TOR rule came into force to restrict owners with training debts from entering into the ownership of other horses while such debts are outstanding. It has already proved highly effective in enabling trainers to recoup debts they otherwise would have struggled to recover. Further, with the addition of a dedicated Disputes Coordinator in early 2021, we are now able to play a more active role in helping trainers and owners resolve fee disputes and assisting owners with ownership issues. Matt Orr General Manager Legal & Regulation

RACING AUSTRALIA ANNUAL REPORT 2021 15 EQUINE GENETICS RESEARCH CENTRE (EGRC) The EGRC maintained its performance in the 2020/21 financial year despite the ongoing impacts of Covid-19. Turnaround times were well under one week for parentage verification samples. The numbers of tests performed in 2020/21 are shown right. Services to nearly 30 non-Thoroughbred breed associations included DNA profiling, parentage verification and testing for DNA mutations that cause genetic diseases or are related to specific coat colours and patterns. The EGRC has expanded the variety of genetic tests offered to non-Thoroughbred breeders – two new tests for genetic disease and nine new coat colour tests have been developed. The EGRC now tests for 14 genetic diseases and 15 colour patterns. Standard DNA analysis in horses is usually performed on hair cells found at the pulled ends of mane or tail hairs. However, the EGRC also offers DNA testing of nonstandard samples including equine blood, semen and muscle. Forensic services include analysis of samples such as blood clots and plasma for integrity purposes. The EGRC has maintained its reputation as a world leader in the field of equine gene doping detection with Dr Natasha Hamilton (EGRC Director) appointed the Chair of the newly formed International Horse Sports Confederation Gene Doping Expert Committee. This Committee has been formed to allow exchange of information on gene doping related matters between the IFHA (which promotes Thoroughbred racing internationally) and the Fédération Equestre Internationale (the international governing body of equestrian sports). Dr Hamilton continues to Chair the IFHA Gene Doping Control Sub-Committee and presented at the International Horse Genome Workshop (Virtual) Conference in August 2021. The EGRC continues to develop new types of tests to support horse owners into 2021/22 and is looking forward to the lifting of Covid-19 restrictions which have limited outreach opportunities in the past year. Dr. Natasha Hamilton Equine Genetics Research Centre Director NUMBER OF TESTS PROCESSED IN 2020/21 Australian Thoroughbreds Parentage verified 11,984 Imported and local Thoroughbreds DNA profiled for identity purposes 1,410 Non-Thoroughbred Parentage verification or DNA profiled 4,761 Non-Thoroughbred genetic testing Number of horses 1,466 Non-Thoroughbred genetic testing Number of tests 4,212 Total DNA tests performed 22,367 Average turnaround time for DNA profiling tests 4.4 days Average turnaround time for genetic tests 4.8 days The EGRC has maintained its reputation as a world leader in the field of equine gene doping detection.

16 RACING AUSTRALIA ANNUAL REPORT 2021 In reviewing the past year, it is with great pride we acknowledge the work and dedication achieved by the Equine Welfare Teams within each of the Principal Racing Authorities. They have provided a truly collaborative and supportive team of people who regularly come together and share experiences to continually strive to improve the welfare framework for Australian Thoroughbreds for the duration for their lifecycle. The question that is most common with Thoroughbred Welfare is how many horses retire from racing and what is the outcome of those horses. In 2021 a piece of independent research was produced by the Asia-Pacific Centre for Animal Health, Faculty of Veterinary and Agricultural Sciences titled Drivers of Exit and Outcomes for Thoroughbred Racehorses that are participating in the 2017 – 2018 Australian Racing Season. As part of the new traceability rules Racing Australia and the Principal Racing Authorities are continually provided with expansive information on Thoroughbreds Equine Welfare and Traceability continue to be at the forefront of Industry development and Racing Australia is key in providing the tools for the industry to be accountable. as they journey through their lifecycle. Through our data partnership with Equestrian Victoria over 5,000 Thoroughbreds were verified as currently participating in Equestrian Sports. In May 2021, Racing Australia provided a series of tools that allows anyone who has ownership of a Thoroughbred, whether active in racing, retired or breeding, to record updates on a horse’s location, career change, subsequent retirement from second career or notification on end-of-life. For an active Thoroughbred horse updates are required every 6 months (for horses not yet retired) and every 12 months (for horses registered with the breeding community). In the 2020/21 Racing Season, Racing Australia processed 11,008 retirement status updates and end-of-life notifications for horses aged 0-36 split into active season notifications and historical updates. Racing Australia also regularly reviews the status of the potential racing herd. Karen Day General Manager Equine Welfare and Traceability Racing Australia and our State and Territory Principal Racing Authorities share a common aspiration of elevating the quality of equine welfare in Australia to ensure Australia is regarded as being the standard bearer within global Thoroughbred racing and breeding. EQUINE WELFARE AND TRACEABILITY REPORT

RACING AUSTRALIA ANNUAL REPORT 2021 17 ACTIVE RACING SEASON NOTIFICATIONS Entered breeding 28% Retired to domestic homes including PRA programs 66% Reported end-of-life 6% HISTORICAL UPDATES Entered breeding 16% Reported end-of-life 16% Provided a retirement update, status notification, change of career or change of location 68% RACING PROFILE JULY 31ST 2021 AGES 2–12 In racing 43% Retired from racing 37% End-of-life notification received 12% Exported 6% Awaiting parentage verification 2% Racing Australia is providing new tools to support participants care for the Thoroughbreds we all love. Click below to understand your obligations under the new traceability rules and help us ensure the welfare of all our Thoroughbreds. Breed. Race. Trace. Breeding Horses (broodmares and stallions) Unnamed Horses (not registered to race) Named Horses (registered to race) Retired Horses From May 2021 notifications can be lodged online or via paper forms available on the Racing Australia and Stud Book websites. The Racing Australia Service Centre can provide support by email traceability@racingaustralia.horse www. racingaustral ia.horse TRACEABILITY Racing Australia and Equestrian Victoria entered into a data share agreement that will allow for more accurate tracing of Thoroughbred horses moving between the industries and culminate in greater care being provided for them upon transfer out of the Racing Industry. Looking forward Racing Australia is developing an App that allows for infield identification and real time updates in regards to the location of horses. DRIVERS OF EXIT AND OUTCOMES FOR THOROUGHBRED RACEHORSES THAT PARTICIPATED IN THE 2017–2018 AUSTRALIAN RACING SEASON Reported as deceased 5% Still participating in racing 43% Permanently left racing 45% Exported, returned to owner, transferred or trainer unknown 7%

18 RACING AUSTRALIA ANNUAL REPORT 2021 SERVICE STANDARD PERFORMANCE REPORT Monthly Calculation Target Standard Actual Standard Variation Traffic Light Total Annual Monthly Average Registration Applications completed within 5 business days of receipt 90% 91.54% +1.54% 10,347 862 DNA kits dispatched within 3 business days, including imports 100% 100% Nil 14,551 1,213 DNA ID Forms processed/ID card dispatched within 2 business days of receipt, including imports 100% 100% Nil 14,175 1,181 New Breeder, Brand and Veterinarian applications processed within 2 business days 100% 100% Nil 1,062 89 Monthly Calculation Total Annual Monthly Average Registration Applications received and completed 11,292 941 Registration Applications received in the month where not all information was provided and could not be completed (further follow-up required) 1,542 129 Received Monthly Average Received Processed Monthly Average Processed Horse Registrations 12,508 1,042 12,205 1,017 Change of Name 113 9 113 9 Meeting Service Standard Within negative 1% of Service Standard Below Service Standard Racing Australia has established across the operations of the organisation Service Standard Performance monitoring and reporting. The service standards are integrated into the training of Racing Australia staff and into the technical infrastructure design. The monthly results are used as one of the tools to monitor and improve the overall service delivered by Racing Australia to the industry. The reports are published monthly on the Racing Australia website. Total Registration Applications received and completed in 2020/21 11,292 Total Horse Registrations processed in 2020/21 12,205

RACING AUSTRALIA ANNUAL REPORT 2021 19 CALLS ANSWERED SERVICE Phase of Service Service Standard Service Standard Actual Annual Variation Number of Calls Monthly Average Traffic Light Call Answer 60% of calls to be answered in less than 60 seconds 60% 61.98% +1.98% 100,614 8,385 Call Answer 30% of calls to be answered between 60 and 120 seconds 25% 26.29% +1.29% 42,595 3,550 Call Answer 10% of calls answered over two minutes 10% 8.80% +1.20% 14,419 1,201 Call Answer 5 % of calls abandoned before being answered 5% 2.95% +2.05% 4,771 397 Total Call Time 2 minutes 40 seconds 2.40 Mins 1.87 Mins 0.53 Mins 162,399 13,533 Phase of Service Service Standard Average Monthly Calculation Target Standard Actual Annual Variance Traffic Light Nominations RA Nominations to be Released within no more than 10 min official close 98% 98.42% +0.42% Riders RA Riders to be Released within no more than 18 min official close 98% 99.71% +1.71% Acceptances PRA Acceptances to be Released within no more than 15 min official close 98% 99.03% +1.03% Scratchings RA Final Scratchings to be released within no more than 15 min official close where no Emergencies 98% 99.34% +1.34% 20 min official close where Emergencies 98% 99.34% +1.34% TOTAL SMS & EMAIL COMMUNICATIONS Total SMSs Monthly Average Total Emails Monthly Average SMS – Sent by RA 1,776,973 148,081 Email – Sent by RA 2,899,890 241,657 TOTAL TRANSACTIONS IN 2020/21 Online 75.95% Phone 24.05% Total calls answered in 2020/21 162,399 Total Emails sent in 2020/21 2,899,980

20 RACING AUSTRALIA ANNUAL REPORT 2021 Average Uptime Availability (or Mean Availability) System Monthly Calculation Target Uptime Actual Uptime Variation Traffic Light Single National System 355 minutes unplanned downtime for year 525,600 minutes year to date 99.90% 99.93% +0.03% Stable Assist 335 minutes unplanned downtime for year 525,600 minutes year to date 99.90% 99.93% +0.03% REINS ASB System (Merge with SNS being reviewed) 95 minutes unplanned downtime for year 525,600 minutes year to date 99.90% 99.98% +0.08% Racing Australia Website 275 minutes unplanned downtime for year 525,600 minutes year to date 100% 99.96% -0.04% Racing Australia Private Label Websites 197 minutes unplanned downtime for year 525,600 minutes year to date 100% 99.95% -0.05% Stud Book Website 104 minutes unplanned downtime for year 525,600 minutes year to date 100% 99.98% -0.02% SMS & Email 0 minutes unplanned downtime for year 525,600 minutes year to date 99.93% 100.00% +0.07% Office Local Area Network 0 minutes unplanned downtime for year 525,600 minutes year to date 99.90% 100.00% +0.10% Server Internal Network 125 minutes unplanned downtime for year 525,600 minutes year to date 99.90% 99.98% +0.08% Telco and Data Network 235 minutes unplanned downtime for year 525,600 minutes year to date 99.90% 99.96% +0.06% PABX 0 minutes unplanned downtime for year 25,600 minutes year to date 99.90% 100.00% +0.10% SERVICE STANDARD PERFORMANCE REPORT Meeting Service Standard Within negative 1% of Service Standard Below Service Standard

RACING AUSTRALIA ANNUAL REPORT 2021 21 Total Annual Monthly Average Thoroughbred Parentage Testing Samples 12,228 1,019 Thoroughbred DNA Self Comparison Samples 1,426 119 Other Breeds DNA Profiling Samples 4,946 412 Other Breeds Diagnostic Samples 4,323 360 Category Average Target Turnaround Time Average Actual Turnaround Time Traffic Light Thoroughbreds Parentage verification 14 days 4.44 days DNA self-comparison 14 days 3.70 days DNA profiled only 14 days 3.58 days Total Thoroughbred Parentage Testing Samples in 2020/21 12,228 Mr Quickie ridden by Jamie Kah wins the Lexus Toorak Handicap at Caulfield Racecourse, 10-Oct-2020. (Photo courtesy of Racing Photos).

22 RACING AUSTRALIA ANNUAL REPORT 2021 RACING AUSTRALIA EVENTS THE AUSTRALIAN RACING HALL OF FAME Supported by: Racing Australia, Racing SA Hosted by: Racing SA Location: Adelaide Convention Centre, 14th May 2021 All eyes of the racing world where on Adelaide as it hosted the Racing Hall of Fame Induction Ceremony for 2021. THE AUSTRALIAN RACING HALL OF FAME INDUCTEES Associates John Messara AM Robert Lindsay “Bob” Charley AO Champion Racehorses Tie The Knot Beau Vite Red Anchor Sailor’s Guide Jockeys Richard Laurence “Darby” McCarthy OAM William Henry “Midget” McLachlan Trainers Les Bridge Guy Walter Spirit of Racing Award Graham Salisbury and Subzero John Messara was welcomed into the Australian Racing Hall of Fame by 2004 inductee, Champion trainer John Hawkes. (Photo: Atkins Photography)

Induction into the Australian Racing Hall of Fame is the industry’s highest accolade. Only the greats of Australian Thoroughbred racing earn their place. 1 Sailor’s Guide (Photo: News Ltd/Newspix) 2 W illiam Henry “Midget” McLachlan (Photo: Australian Racing Museum Collection) 3 Guy Walter (Photo: Bradley Photographers) 4 T ie the Knot (Photo: Mike McQuillan’s Classic Photographs / Ern McQuillan) 5 L es Bridge (Photo: Vince Caligiuri/The Age) 6 J ohn Messara AM (Photo: Brett Costello/ Newspix) 7 R obert Lindsay “Bob” Charley AO (Photo: Bluebloods) 8 B eau Vite (Photo: The Sydney Morning Herald) 9 R ed Anchor (Photo: The Age) 10 R ichard Laurence “Darby” McCarthy OAM (Photo: Mike McQuillan’s Classic Photographs/Ern McQuillan) 1 10 9 8 5 6 7 4 2 3 RACING AUSTRALIA ANNUAL REPORT 2021 23

24 RACING AUSTRALIA ANNUAL REPORT 2021 RACING AUSTRALIA EVENTS AUSTRALIAN STUD AND STABLE STAFF AWARDS Supported by: Godolphin, Racing Australia and Thoroughbred Breeders Australia Hosted by: Gold Coast Turf Club Location: Gold Coast Turf Club, 26th May 2021 They represent the thousands of mostly unseen, often unsung and thoroughly essential members of Australia’s racing and breeding industry. The Stud and Stable Staff Awards celebrates those who dedicate their lives to the Thoroughbred and provides a chance for the winners and runners-up to share in $100,000 worth of prizes in recognition of all that they do. WINNERS OF AUSTRALIAN STUD AND STABLE STAFF AWARDS Administration and Ancillary Cassandra Simmonds Magic Millions, QLD Runner Up Jess Hood Arrowfield, NSW Dedication to Breeding Steve Brien Twin Hills Stud, NSW Runner Up Carla Aliphon Cityview Farm, VIC Horsemanship Mandy Radecker Michael Lakey Racing, QLD Runner Up Adam Shankley Arrowfield, NSW Leadership David Hanratty Yarradale Stud, WA Runner Up Samantha Parkes Godolphin, NSW Dedication to Racing Gary Fennessy Lindsay Park Racing, VIC Runner Up John Brady Waterhouse Bott, NSW Thoroughbred Care and Welfare Jade Willis JW Equestrian, VIC Runner Up Jordan Priest Eureka Stud, QLD Newcomer Jack Cripps McEvoy Mitchell, VIC Runner Up Fiona Bayly Ciaron Maher Racing, VIC Overall Award for Thoroughbred Excellence Gary Fennessy Lindsay Park Racing, VIC

Recognising and rewarding the hard work and dedication of stud and stable staff across Australia. 1 C assandra Simmonds, Magic Millions, QLD 2 S teve Brien, Twin Hills Stud, NSW 3 M andy Radecker, Michael Lakey Racing, QLD 4 J ade Willis, JW Equestrian, VIC 5 J ack Cripps, McEvoy Mitchell, VIC 6 Gary Fennessy, Lindsay Park Racing, VIC 7 David Hanratty, Yarradale Stud, WA 1 7 5 6 4 2 3 RACING AUSTRALIA ANNUAL REPORT 2021 25

26 RACING AUSTRALIA ANNUAL REPORT 2021 RACING AUSTRALIA EVENTS AUSTRALIAN WORKFORCE DEVELOPMENT FORUM Supported by: Godolphin, Marsh, QBE, Racing Australia, TABCORP and Thoroughbred Industry Careers Hosted by: Racing Australia Location: The Australian Turf Club, Royal Randwick, April 23rd and 24th 2021 Obtain.Train.Retain Racing Australia, in conjunction with the Principal Racing Authorities, Godolphin and Thoroughbred Industry Careers, under the banner of Together for Racing International, hosted the inaugural Australian Workforce Development Forum. This was an opportunity for the Thoroughbred Industry to come together, discuss and workshop issues surrounding obtaining, training and retaining the most important part of the industry, aside from the Thoroughbred, our people. The theme over the two days was collaboration and participation with people having the opportunity to engage with the panel which featured some of the most powerful and independent thinkers within the Thoroughbred Industry. WATCH THE VIDEO A short video is available at https://www.togetherforracinginternational.com/ australian-thoroughbred-workforce-developmentforum/ A series of objectives guided the conversation and collaboration over the two days 1. T o develop recommendations to obtain and attract people to join the Thoroughbred Industry workforce and to minimise barriers to entry. 2. T o develop recommendations on the approach to marketing and promotion of the industry to drive awareness and challenge perception issues. 3. T o develop recommendations which improve the retention and upskilling of staff over the next 5 years. 4. T o develop a list of potential educational and training recommendations that are attractive, affordable, and accessible to build the skills necessary to sustain our industry into the future. 5. P articipants will identify a practical process for developing and coordinating a national 3- year education strategy reflecting Forum outcomes. And from these objectives a series of questions where to be considered 1. I dentify initiatives that could be implemented to increase grassroots engagement. 2. G enerate methods to reduce barriers to entry to the Thoroughbred Industry. 3. S elect a target market. Brainstorm 3 key marketing messages to target this audience. How will these messages be delivered? 4. I dentify 5 high level approaches to improve workplace retention. 5. I dentify a sector of the industry where your group feel skills are lacking and outline steps that can be taken to create education options that are attractive, affordable, and accessible.

The Forum hosted some 100 racing and breeding stakeholders from across Australia. RACING AUSTRALIA ANNUAL REPORT 2021 27

28 RACING AUSTRALIA ANNUAL REPORT 2021 AT A GLANCE Total Races • Flat Races • Jumping Races 19,026 Total Trainers 4,019 Total Bookmakers 408 Total Active Horses • Flat Horses • Jumping Horses 34,604 Total Starters • Flat Starters • Jumping Starters 179,270 Total Returns • Prizemoney (incl. Trophies) • Incentive Scheme Payouts • Other Returns to Owners • Fees Paid by Owners $879,589,056 Total Standing Stallions 500 Total Registrations 11,898 Total Live Foals (2019) 12,640 Total Jockeys • Jockeys • Apprentice Jockeys • Amateur Jockeys 1,044

RkJQdWJsaXNoZXIy ODA1NTI=