Ireland -A World Centre of Excellence-

Brian Kavanagh, Chief ExecutiveHorse Racing Ireland

27 Irish Racecourses

Irish Racing Authorities

Horse Racing Ireland

Turf Club

Association of Irish Racecourses

Irish RacingKey Headline Figures 2004

305 Fixtures Prize money - €51.5m Sponsorship - €7.1m Attendances - 1,386,517 On-Course Betting €233m Off-course betting €2.26m

Irish RacingKey Headline Figures 2004

6,004 horses in training

10,992 foals born

420 stallions at stud

1,000 New Owners

Horse Racing Ireland -Mission Statement-

To develop and promote Ireland as a world centre of excellence for horse racing and breeding

% Black Type Races 2004

%

0

2

4

6

8

10

12

14

Ireland 11.5%

Germany 5.8%

France 5.7%

Great Britain 5.3 %

USA 2.5%

%

International Classifications 2004

Irish Horses rated in excess of 110

Two year olds 20.4%

Three year olds 14.8%

Four year olds 2.8%

As a % of Flat runners 1.7%

Year Runs Wins Places Prize Money

2003 206 36 76 €3.91m

2004 213 32 71 €4.16m

Overseas Runners in Ireland

Year Runs Wins Places Prize Money

2003 645 54 213 €6.24m

2004 709 61 263 €6.32m

Irish Runners Overseas

Board of Horse Racing Ireland Chairman Government Appointment Turf Club / INHS Committee 5 nominees Persons Employed in the Industry 2 nominees The Industry in Northern Ireland 1 nominee Thoroughbred Breeders 1 nominee Authorised Racecourses 1 nominee Authorised Bookmakers 1 nominee Racehorse Trainers 1 nominee Racehorse Owners 1 nominee

Government Support

“This transformation in the fortunes of Irish Horse Racing has come about through hard work, planning and a unified approach across the industry. With the establishment of Horse Racing Ireland in 2001 the Government had an effective vehicle to utilise the significant resources it was willing to commit, funded largely by the duty on off-course betting.”

Bertie Ahern (Irish Prime Minister) 13th June 2005

Horse Racing IrelandBusiness Structure

Irish Thoroughbred Marketing Ltd

Tote Ireland LtdHRI Racecourses Ltd

HRI Strategic Plan 2002 – 2007Performance Indicators

Annual racecourse attendances to increase by 200,000

Prize money to increase to €60m per annum

Sponsorship to increase by a minimum of 5% per annum

Investment of €100m in racecourse facilities

Funding of Northern Ireland racing to be harmonised

On-Course betting to increase by 50% to €300m

Tote dividend to racing to increase from €2m per annum to €6m

Foal Population by Country 2003

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Foals

Foals 32,235 17,953 10,574 8,670 5,156 4,272

USA Australia Ireland Japan GB France

Foals Born 2001 - 2004

8,500

9,000

9,500

10,000

10,500

11,000

11,500

Foals 9,452 10,214 10,574 10,992

2001 2002 2003 2004

On-Course Betting 2004

75%

5%

20%

Bookmakers

SP Shop

Tote

On-Course Betting 2001 - 2004

Bookmakers SP Shop Tote

Total Change

2001 €172m €7m €36m €215m 5%

2002 €162m €7m €39m €208m -3%

2003 €183m €10m €44m €237m 14%

2004 €175m €11m €47m €233m -2%

Off-Course Betting 2001 - 2004

2001 €1,359m 15%

2002 €1,569m 15.5%

2003 €1,921m 22.4%

2004 €2,262m 17.8%

Horses In Training 2001 – 2004

4,500

5,000

5,500

6,000

6,500

HIT 5,108 5,470 5,673 6,004

2001 2002 2003 2004

New Owners Registered 2001 – 2004

600

700

800

900

1000

1100

Owners 786 817 848 1000

2001 2002 2003 2004

  All Flat All NH MixedTotal Fixtures

2001 41 92 135 268

2002 49 115 115 279

2003 63 127 113 303

2004 61 136 108 305

Annual Fixtures by Racetype

Total Races 2001 - 2004

1800

1900

2000

2100

2200

2300

No. of Races 1935 1994 2166 2196

2001 2002 2003 2004

Number of Flat/NH Races 2001 - 2004

650

850

1050

1250

1450

Flat Races 782 789 848 844

NH Races 1153 1205 1318 1352

2001 2002 2003 2004

Prize Money Contributions 2001 - 2004

   HRI Sponsors Owners Total

2001 23.4m 6.1m 12.7m 42.2m

2002 24.8m 6.5m 14.2m 45.5m

2003 27.6m 7.1m 14.9m 49.6m

2004 29.9m 7.6m 13.9m 51.4m

Source of Prize Money 2004

1%

10%

27%

59%

3%

Owners Comerical NI Funding EBF HRI

Major Developments / Challenges in 2004

Renewal of Horse and

Greyhound Racing Fund

Launch of Racecourse Capital

Development Fund

Report by Indecon Economic

Consultants

Satellite TV Channel -

Attheraces

Expanding horse population

Betting Exchanges

Horse and Greyhound Racing FundRenewed September 20042% duty on turnover. Statutory basisLimit on Fund increased to €550mFunding secured until 200880% Horse Racing: 20% Greyhound

RacingGovernment initiated review in JuneExamine merits of Gross Profits Tax basis

Racecourse Capital Development Fund Launched November 2004

€200m Total Investment

Grant aid at 55% for

approved projects

Curragh / Leopardstown to

get grant of up to €35m each

All weather track at Dundalk

grant of up to €10m

Extra income streams for

racecourses

Racecourse Development – Curragh Home of the Classics Aga Khan donation Last Major Development -

1960’s €80m Project New Stand Planning Permission for

Phase 1 sought Relocate Roadway Will Incorporate Hotel

Racecourse Development - Leopardstown

Motorway Development Loss of Sprint Track €80m Project New Stands / Weighroom Development of Golf

Facilities Phase 1 Commenced New Access Roads / Car

park

Racecourse Development - Dundalk

Greyhound stadium opened 2004

€30m investment overall Polytrack surface likely 25 Fixtures: 10 spring

10 autumn 5 Sundays

Legal structure being finalised

Target opening Spring 2007

Indecon Report

Commissioned by ITBA / EBF / HRI

Similar issues to Kentucky – KEEP

Assess economic impact of Industry

Used for Political Lobbying / PR

Independent Assessment

Indecon Key FindingsEmployment in industry 16,500 personsGross contribution of breeding sector - €330m

per annumTax paid annually - €37.5mValue of stallion tax exemption - £3m per

annumThird largest thoroughbred producer in the

worldBloodstock = 4.4% of total agricultural output

Public Affairs Advertising

Satellite TV Channel

Launched June 11th 2004Deal concludes 2008Minimum 250 daysInteractive BettingSome initial impact on attendances

Expanding Horse Population 25% increase in the number

of foals born between 2000 and 2004

25% increase in the number of horses in training 2000 – 2004

10,860 horses eliminated in 2004

Quality control measures introduced in 2005

Development of All-Weather track at Dundalk

Betting Exchanges

Operating on Irish Racing since 2003

No agreement on financial return

Integrity memorandum of understanding

Some decline in on-course turnover

Joint approach with UK authorities

Who goes racing?

39%

61%

Male

Female

Gender of Race Goers

41 44

14

0

5

10

15

20

25

30

35

40

45

%

Under35

35-64 65+

Age profile of Racegoers

Irish Racing - Changing Market Profile 2003 -2005

Sample: All who went racing in the ‘past year’

Improved male / female balance Significant shift to middle class Decline in working class / farmers share No significant age shift

Gender 2003 2005 Social Class 2003 2005

Male 63% 59% ABC1 36%56%

Female 37% 41% CZPE 45% 34%F 19%

10%

Irish Racing - Changing Market Profile 2003 -2005

Sample: All who went racing in the ‘past year’

Significant shift in demand from East to West / N West of country

Urban / Rural share 50:50

Region 2003 2005 Area 2003 2005Dublin 18% 17% Urban 54% 50%Rest of Leinster 32% 23% Rural 46% 50% Munster 39% 34%Connaught Ulster 11% 26%

Irish Racing - Changing Market Profile 2003 -2005

Sample: All who went racing in the ‘past year’

Attendance Number of people racing has grown by over 11%

Frequency of attendance has declined from 3.86 to

2.99

Those attending ‘one raceday’ grew by 24%

Those attending ten or more racedays declined by

42%

Ireland -A World Centre of Excellence-

Brian Kavanagh, Chief ExecutiveHorse Racing Ireland